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STATE CAPTURE IS HOLDING BACK SOUTH AFRICA

After Nelson Mandela was elected in 1994 his government abolished racially segregated local authorities, creating ostensibly integrated municipalities. Today these range in size from Johannesburg, the commercial capital, to units like Mpofana that comprise a small town and rural areas. All are supposed to fund themselves through property taxes, business rates and charges for water, electricity and waste collection. The poorest also get a grant from the central government to fill any gap between revenue and expenditure.

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INTRODUCING THE LOCAL GOVERNMENT REPORT CARD 2026

The Local Government Report Card 2026 provides an independent assessment of 50 municipalities across all nine provinces, measuring performance against five pillars of constitutional local government. The findings reveal a sharply uneven picture, with strong institutional leadership and sound financial management consistently linked to better service delivery and public accountability. By presenting clear evidence of what works, what fails and where improvement is possible, the Report Card equips residents, councillors and policymakers to demand practical, measurable change.

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MUNICIPAL FAILURE IS NOT INEVITABLE AND THIS REPORT PROVES IT

The FW de Klerk Foundation’s Local Government Report Card 2026 argues that municipal failure is not inevitable, but the result of identifiable institutional weaknesses that can be measured and addressed. Assessing 50 municipalities against 100 objective tests, the report highlights where local government is improving, where it is failing and what distinguishes high-performing municipalities from those in decline. It offers practical, evidence-based recommendations to strengthen constitutional governance, improve service delivery and make municipal recovery measurable.

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FW DE KLERK FOUNDATION RELEASES THE LOCAL GOVERNMENT REPORT CARD 2026

The FW de Klerk Foundation’s Local Government Report Card 2026 provides an independent, non-partisan assessment of municipal performance and constitutional accountability across South Africa. Using 100 published tests across five key pillars, it evaluates 50 municipalities and highlights the institutional factors that drive success or failure in local government. The report offers evidence-based insights into the state of municipal governance and demonstrates that effective, constitutional local government is achievable.

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LESSONS FROM THE 2026 GTAC CONFERENCE

The 2026 GTAC Public Economics Conference highlighted a central truth: South Africa’s employment crisis cannot be solved by training people for jobs that do not exist. Sustainable progress requires evidence-based policy, smarter public spending and greater support for the informal, township and rural economies where millions already earn their livelihoods. Ultimately, the Constitution demands a state that protects dignity, removes barriers to opportunity and measures success by real outcomes rather than the number of programmes funded.

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THE STATE CANNOT FIX MUNICIPALITIES WHILE REFUSING TO PAY THEM

Provincial departments owed municipalities R14,9 billion by December 2025, placing further pressure on already fragile local government finances. This persistent non-payment undermines service delivery, violates the principles of cooperative government and forces municipalities to finance provincial operations through unpaid accounts. National Treasury should enforce accountability and establish a targeted mechanism to deduct verified municipal debts from provincial allocations.

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THE COST OF COLLAPSE: HOW MUNICIPAL DYSFUNCTION IS DISMANTLING THE VAAL TRIANGLE’S ECONOMY

Spending two days in this municipality exposes the stark reality of its collapse. The former heartbeat of the South African economy has been reduced to a dilapidated landscape scarred by massive, neglected potholes and failing public utilities. Residents are left to navigate a complete infrastructural mess, a reality made all the more frustrating by the nearly R700 million that was spent on municipal employee overtime between 2019 and 2025, despite consistently worsening service delivery.

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LOCAL GOVERNMENT IS FAILING SOUTH AFRICANS – HERE IS HOW WE FIX IT

For millions of South Africans, the Constitution promises open, accountable and responsive government, dignity, equality and access to basic services like water. Yet for many communities, those promise collapses at local government level. Water taps run dry, refuse is not collected, potholes are permanent and corruption goes unpunished.

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