JOHANNESBURG, Gauteng — Confronting a staggering R400 billion municipal debt crisis and systemic administrative hurdles, the ruling party has initiated a sweeping African National Congress (ANC) local government review to overhaul civic financing and service delivery ahead of the next electoral cycles.
The strategic internal audit, launched during a series of media briefings at Luthuli House, is designed to evaluate the organization’s 2021 election promises while laying the groundwork for the November 4 municipal polls and the broader 2026 local government elections. According to ANC National Executive Committee (NEC) member Dickson Masemola, the comprehensive assessment acknowledges a “balanced” reality of historical successes juxtaposed against severe modern financial constraints.
At the heart of the financial crisis is a massive shortfall in revenue collection. Masemola revealed that everyday citizens currently owe South African municipalities approximately R400 billion in unpaid consumer bills. Additionally, government departments and private businesses are in arrears to the tune of R30 billion to R40 billion. He argued that if these outstanding debts were settled immediately, the financial viability of local institutions would be vastly restored. However, he conceded that broader national economic underperformance and rising unemployment have severely crippled the public’s ability to pay for basic services, directly starving municipal revenue streams.
Beyond the immediate debt crisis, the ANC local government review has identified an outdated legislative framework as a primary driver of municipal collapse. Masemola pointed specifically to the 1998 White Paper on local government, which established a 90/10 revenue-sharing split. Under this decades-old policy, municipalities are expected to fund 90% of their own operational costs while receiving a mere 10% from nationally collected revenue.
Describing this 1998 assumption as an “inherent systemic constraint” that is no longer viable, Masemola confirmed that the party has taken a decisive policy position to review and rewrite the municipal funding formula. The goal is to secure better-resourced local governments capable of executing the developmental objectives outlined in the National Development Plan (NDP) and local Integrated Development Plans (IDPs).
While addressing the financial mechanics, the NEC member also tackled the party’s mixed record on service delivery and governance. He defended the ANC’s 30-year track record, noting undeniable progress in expanding access to electricity, sanitation, and housing for millions of previously disadvantaged South Africans. Yet, he did not shy away from the criticisms highlighted in successive Auditor-General reports, which have repeatedly exposed deteriorating financial management and accountability deficits in ANC-run municipalities.
To combat these administrative failures, the review mandates a strict professionalization of local government systems. Masemola emphasized a shift toward merit-based recruitment, ensuring that administrative personnel are highly skilled, experienced, and properly capacitated to manage complex civic machinery, moving away from past deployment controversies.
Addressing the party’s electoral decline over the last decade, Masemola offered context regarding key metropolitan losses, such as the City of Johannesburg in 2016. He maintained that the municipality’s loss was not due to a failure in service delivery by the mayor at the time, but rather the result of compounding national political developments that negatively influenced local voter sentiment.
As the party pushes to reset the local government system, Masemola urged South Africans to examine the organization’s comprehensive white paper policy review. He announced that the ANC will officially launch its new manifesto on the 23rd, presenting it as a bold, strategic response to the country’s municipal challenges and asking the electorate for their endorsement at the ballot box.
