In May 2026, CDE convened a discussion on the draft Local Government White Paper led by Pascal Moloi, convenor of the White Paper review process and former City Manager of Johannesburg.

Moloi argued that South Africa’s local government framework, developed in 1998, no longer reflects the realities facing municipalities. Many municipalities face declining infrastructure, financial pressure, weak governance and growing service delivery challenges.

A key proposal in the draft White Paper is to move away from the current ‘one-size-fits-all’ model of local government. Instead, it proposes a more differentiated system in which powers and responsibilities are allocated according to the capacity and circumstances of individual municipalities.

According to Moloi, the draft White Paper seeks to strengthen political and administrative governance, including measures to improve stability in coalition governments and build stronger municipal institutions

During the discussion, participants highlighted how existing regulations often make it difficult for municipalities to work with businesses, even where there is a willingness to invest in local infrastructure and services. Moloi proposed that the White Paper’s proposed ‘place-based compacts’ could make this cooperation easier.

Participants pointed out that the situation in Johannesburg, created largely by political instability, weak administrative capacity and endemic corruption, demands urgent, immediate attention. The White Paper will need to be implemented with greater speed than currently envisaged.

Report by the Centre for Development and Enterprise