By JD GLOBAL MEDIA
The South African Cabinet has approved the Revised White Paper on Local Government, 2026, setting out a framework intended to address persistent governance, institutional, financial and service-delivery challenges affecting municipalities.
The decision formed part of the outcomes of the Cabinet meeting held on 23 September and published by the government on 29 September.
According to the Cabinet statement, the revised policy is intended to guide the transformation and renewal of the local-government system by strengthening implementation, accountability, institutional coherence and financial sustainability.
The approval comes as municipalities continue to operate under differing financial and administrative pressures, making local-government performance a significant part of South Africa's broader governance agenda.
TRANSITION MANAGEMENT BODY PROPOSED
Cabinet also endorsed the establishment of a time-bound Transition Management Body to help coordinate implementation of the reforms.
The body is expected to operate as part of a phased, whole-of-government implementation programme led jointly by the Department of Cooperative Governance, The Presidency and National Treasury.
The government has not presented the reform as a single intervention for all municipal difficulties. Instead, the revised White Paper is intended to provide a policy framework through which institutional, financial and implementation problems can be addressed in a coordinated manner.
TRANSPORT AND LOGISTICS REFORM ALSO ON CABINET AGENDA
Cabinet also considered progress on transport and logistics reforms and supported the separation of the Transnet National Ports Authority from Transnet so that the ports authority can operate as a stand-alone company directly owned by the state.
The government said the separation will be guided by principles including fair compensation for Transnet, independently assessed valuation of the ports authority, long-term financial sustainability and an equitable allocation of liabilities.
The policy also seeks to preserve strategic state ownership and control of national ports infrastructure while improving the country's capacity to attract investment into ports and related infrastructure.
Cabinet further approved an investigation into the feasibility of bringing in a minority equity partner from one of South Africa's development finance institutions.
APPOINTMENTS ACROSS GOVERNMENT
The Cabinet meeting also resulted in a series of appointments and reappointments to senior government positions and public entities.
Among the appointments were Milingoni Fhulufhelo Lloyd Nedohe as Director-General of the Government Communication and Information System, Waseem Carrim as CEO of the Road Accident Fund and Siphamandla Mthethwa as CEO of Airports Company South Africa.
Cabinet also reappointed Dr Mteto Nyati as chairperson of the Eskom board.
Appointments were also made to the boards of the Development Bank of Southern Africa, Industrial Development Corporation, Rand Water, the National Gambling Board, the Council for Geoscience and other public institutions.
The government stated that the appointments remain subject to verification of qualifications and relevant security clearances.
WHY THE LOCAL GOVERNMENT DECISION MATTERS
The revised White Paper creates a policy basis for further changes to the way municipalities are governed and supported.
Its implementation will now be important because the Cabinet decision itself establishes the policy direction, while the proposed transition mechanism and phased programme are intended to translate that direction into practical reforms.
The next stage will therefore involve the responsible departments developing and implementing the agreed programme while maintaining accountability for progress.
The Cabinet's decision also places local-government reform alongside wider changes to transport and logistics, showing that the government's current policy agenda includes institutional reforms across several areas of the state.
For municipalities, the key issue will be how the revised framework is implemented and whether the proposed measures result in measurable improvements in governance, financial sustainability and service delivery.
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