The current White Paper defines developmental local government as a system committed to working with citizens and community groups to find sustainable ways to meet social, economic, and material needs while enhancing the quality of life. It emphasises targeting marginalised and excluded groups within communities, such as women, people with disabilities, and those living in extreme poverty. Highlighting the central role of local government, South African Local Government Association (Salga) president Bheki Stofile noted that local governments are responsible for delivering 46% of public services, including water supply, electricity, sanitation, and refuse removal, yet receive only 10% of national revenue. At the same time, municipalities have accumulated a staggering total debt of R386.5 billion and owe creditors R117.5 billion.

To say that local government is in crisis would be an understatement. The 30-year government review reveals that economic, political, spatial, and institutional disparities hinder municipalities’ ability to deliver services. An estimated 29% of municipalities are on the verge of operational collapse, pointing to systemic dysfunction rooted in governance failures and limited capacity. Research conducted by the Centre for Gender and Africa Studies at the University of the Free State in partnership with the Local Government Seta over the past three years confirms the poor state of knowledge management, the lack of evidence-based human resource development practices, persistent barriers facing women in local government, and challenges in implementing the Municipal Staff Regulations. Simply increasing fiscal allocations to local government without addressing the root causes of these failures would be like pouring money down the drain.

The case for local dialogues

Any conversation about building a capable state must begin with functional, ethical, and developmental local governance. This requires shifting from a national dialogue to local dialogues that can feed into a national dialogue. For the past 25 years, local governments have produced five-year Integrated Development Plans (IDPs) in partnership with communities, yet the outcomes have been disappointing. We have failed to transform data into actionable knowledge that can tackle challenges in a participatory manner. The marginalised and poor have become passive spectators in a system meant to empower them. They lack agency and have lost confidence in local government and the ward committee system, which was designed to be the functional backbone of participatory democracy. Meanwhile, the middle class, equipped with agency and resources, has become increasingly disengaged. What we are witnessing is a form of “wicked compliance” — a tick-box approach to democracy that echoes the late Malcolm X’s critique: “We do not have a democracy... we have hypocrisy.”

To move beyond this, the local government review must be accompanied by local dialogues, led by community members, businesses, academia, and local government, as envisioned in the National Development Plan (NDP). However, these dialogues should not be led by local government but rather by the collective. This represents a shift from traditional government (top-down) to governance (co-created), as advocated by sociologist Francois Theron. Such co-created spaces allow communities to craft pragmatic future visions and strategise from the future backward. These dialogues should encourage genuine and innovative conversations about the future, positioning local government as a co-creator and collaborator, rather than simply another participant in a talk shop.

Framework for future-focused local dialogues

A future-focused local dialogue should be addressed using the Governance 5iQ framework that asks five fundamental governance questions:

5. How do we lead and learn? (Knowledge Management)

For local governance to be effective, policies must be implemented by committed, competent, and caring individuals. Additionally, policies should be reviewed to assess whether they create opportunities for the poor and the youth. If local economic development is to succeed, then supply chain processes must be aligned with developmental objectives. A valuable case study is Daleel Jacobs, Supply Chain Manager at Stellenbosch Municipality, whose master’s thesis demonstrates innovative ways to fulfil the spirit of the law while delivering tangible outcomes.

Addressing political interference and embracing digital transformation

Research conducted across 32 municipalities in all nine provinces reveals that political interference is a significant barrier to effective implementation. Politicians are frequently accused of meddling, overstepping their boundaries, and lacking both insight and foresight. As coalitions become more common post-2026 elections, political parties must adopt transparent candidate-vetting processes. The Coalition Bill could provide much-needed stability by introducing an executive committee system where power is proportionally distributed in the absence of a majority party. Moreover, local governments must leverage digital transformation. In August 2024, the government launched the National Artificial Intelligence Policy Framework. Local governments should harness AI tools to enhance efficiency and effectiveness. Following the example of the University of Kehl in Germany, which introduced a degree in Digital Public Management five years ago, South African institutions should also prepare the next generation of public managers for a digital future.

Leading into the future

South Africa's vibrant democracy is mirrored by the volatility, uncertainty, complexity, and ambiguity that characterise local governance. Leaders are tasked with bringing clarity and certainty, eliminating contradictions, and fostering a compelling vision of the future. However, crafting a vision is not enough; we must actively work towards and embody this preferred future.

The president may deliver the SONA, but the true state of the nation depends on all of us. By prioritising local dialogues and a collaborative governance model, we can lay the foundation for sustainable local governance that truly serves the people.