Cyril Ramaphosa, the president of South Africa, has warned that about two-thirds of the country’s municipalities are facing serious financial difficulties. In his weekly newsletter, he said many local governments struggle with weak revenue collection, rising debt, and poor management of public funds.
Ramaphosa explained that money collected from services like water, electricity, and sanitation should be used to maintain and improve infrastructure. However, in many cases these funds are redirected to cover other costs, leading to worsening service delivery for communities.
To address the problem, the government plans to invest 27.7 billion rand (about $1.5 billion) over the next three years. The funding aims to help major cities reform key services such as water supply, sanitation, waste management, and electricity.
The government is also reforming the municipal infrastructure grant to reduce misuse of funds and improve spending efficiency. Ramaphosa stressed that strong local government is essential for economic growth and the wellbeing of communities, businesses, and households.
Source: TRT Afrika
