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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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FW DE KLERK FOUNDATION: MUNICIPAL COLLAPSE IS A FAILURE TO HONOUR THE CONSTITUTION AHEAD OF THE 2026 LOCAL GOVERNMENT ELECTIONS

The FW de Klerk Foundation warns that municipal collapse is not merely a service-delivery failure, but a failure to honour the Constitution’s promise of democratic, accountable and development-oriented local government. With municipal debt to Eskom exceeding R130 billion and governance failures deepening across several municipalities, the Foundation argues that the 2026 Local Government Elections must become a genuine reckoning for elected officials and candidates. The Foundation calls for credible municipal recovery plans, ring-fenced service revenue, merit-based appointments and independent performance data to restore constitutional accountability at local level.

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LOCAL GOVERNMENT RESET MUST BRING THE CONSTITUTION HOME

The FW de Klerk Foundation welcomes the Reviewed Draft White Paper on Local Government and argues that South Africa’s municipal crisis requires a constitutional reset rather than isolated technical fixes. The statement highlights the importance of accountable, professional and depoliticised local government that can give practical meaning to constitutional rights through reliable service delivery and responsive governance. It further cautions that reform must strengthen local democracy, municipal autonomy and public participation while restoring trust in local government institutions.

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WHY MUNICIPAL PERFORMANCE MATTERS – AND HOW BETTER RULES COULD FIX LOCAL GOVERNMENT

South Africans live with the consequences of municipal collapse every day – from water outages to uncollected refuse and crumbling infrastructure. The Foundation’s submission on COGTA’s Draft Regulations sets out how performance management can be rebuilt on constitutional values like accountability, openness and responsiveness. The Foundation proposed reforms that give communities a real voice, ensure lawful oversight, and create clear lines of responsibility so that municipalities can get back to delivering the services people depend on.

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