President Cyril Ramaphosa on Friday stressed the importance of restoring the fortunes of local government to attract investment that creates jobs and boosts provincial economies.

He acknowledged that local government was in crisis, noting that the number of municipalities across the country being placed under administration was growing, including seven in the Free State.

Ramaphosa and the national Cabinet met with Free State Premier MaQueen Joyce Letsoha-Mathae and the provincial executive council, in Bloemfontein, in the eighth such national engagement since 2024.

Ramaphosa will be meeting with the leadership of all nine provinces in due course.

He revealed that as of 2025, 35 of the country’s 257 municipalities were classified as distressed, and about 63% were classified as being “at risk”.

“Underfunding, lack of capacity, high debt and struggling revenue generation models are just some of the challenges. At the same time, many municipalities are practically paralysed by poor governance, financial mismanagement and corruption,” he pointed out.

Weaknesses or failings at local government not only affect service delivery but also the trust between government and citizens.

In his State of the Nation Address in February, Ramaphosa outlined steps to strengthen local government, including reviewing the funding model for municipalities and establishing ring-fenced utilities for water and electricity services.

He said government would undertake extensive consultations around the updated White Paper on Local Government this year.

Meanwhile, Letsoha-Mathae emphasised that her province was committed to fixing local government, noting that several municipalities had been placed under administration.

She stressed the need for stricter consequence management for unethical officials, improvement of ageing infrastructure such as sewerage systems, and bolstered human settlements as people migrated between areas.

A primary focus for the province is the eradication of the bucket toilet system and reviewing stalled capital projects, such as the Dark and Silver City Housing Development in Bloemfontein.

She pointed out that Ramaphosa’s previous engagements with the province reaffirmed the urgency of confronting social challenges facing the province.

“We remain resolute in intensifying our efforts, particularly in the fight against gender-based violence and in building safer, more cohesive communities,” she said.

Ramaphosa highlighted that the Free State was uniquely positioned to be at the heart of the country’s economic growth story.

“It is strategically located, making it a natural logistics and distribution hub linking major economic centres. The province has extensive agricultural capacity, contributes significantly to our nation’s food security, and has a growing agroprocessing sector,” he said.

He explained that mining was well-established, with increasing opportunities in manufacturing and beneficiation.

“… the province is also leveraging its natural resources to generate renewable energy and for battery storage. The Free State’s urban centres that are already administrative hubs are well-positioned to attract investment in the professional services and education sectors,” he explained.

He noted that these endowments and advantages must be leveraged to drive inclusive growth and create jobs.