National Treasury wants metro municipalities, the engines of the economy and home to the majority of South Africans, to become more 'business-like' in raising revenues and improving service delivery. But there are questions on corruption and political will.
South Africa's eight metro municipalities have been thrown a new lifeline by the Treasury in the form of incentive-based grants, unlocking up to R54-billion in government funding provided the metros are run in a more “business-like” manner.
The Metro Trading Services Reforms, launched at the Innovation Hub in Pretoria on 18 March 2026, aim to incentivize municipalities to improve key service delivery in the areas of electricity, water and waste water and solid waste management.
“Cities are the engines of economic growth and innovation. If our cities don't work, SA cannot grow,” Dr Duncan Pieterse, director-general of the National Treasury, warned the audience, which included representatives from each municipality as well as international representatives from international monetary institutions such as the World Bank and the Asian Infrastructure Investment Bank, as well as European consulates.
Read more Joburg's infrastructure crisis deepens as city spends only 26% of capital budget March 10, 2026 The ambitious program is targeted at megacities, which serve as the country's economic hubs and are home to about 60% of the country's population. This comes in response to failing service delivery in metros due to aging infrastructure, corruption, theft and vandalism. In 2023/2024…