South Africa's progress depends not only on an effective local government, but the ability of municipalities to work with all spheres of government, African National Congress (ANC) deputy president Cyril Ramaphosa said.

"Our municipalities, much as they are sometimes seen [in a] bad light, have done a phenomenal amount, because that is where delivery really takes place."

Ramaphosa was engaging professionals and local business people at the University of KwaZulu-Natal, Westville, on Wednesday evening.

Ramaphosa said the ruling party's vision for local government extends far beyond the efficient delivery of basic services.

"It extends beyond building of houses and just connecting lights. Our vision requires a fundamental transformation of the spaces where our people live. We need to rapidly grow sustainable and inclusive communities at an economic level."

Ramaphosa said the ANC was in search of municipalities that would work with each other and government agencies to craft plans to "change the economic trajectory of where our people live".

Recognising rural areas

"We want municipalities that will craft effective plans. Plans that will talk to how they will move economic development in their own areas."

According to Ramaphosa, there has been a significant amount of migration of people into big cities. He said that over 60% of South Africans now lived in urban areas.

"This is not sustainable because our cities cannot handle all those people. A significant influx of people can place huge strain on our cities. It also affects the issue of social cohesion."

Ramaphosa said it was important that rural areas were not ignored.

"Make sure we do not ignore rural areas - particularly in provinces like KZN where the majority of areas where people live are still very rural. It is important that we recognise some rural areas have a great potential for development."