President Cyril Ramaphosa at the launch of the Revised White Paper on Local Government.
Municipalities across South Africa could face major changes to their ability to provide essential services, with proposed government reforms potentially ending their automatic right to supply water and electricity. Under the new system, municipalities would have to qualify for licences to continue providing these services.
Speaking at the launch of the Revised White Paper on Local Government on 22 October 2026, President Cyril Ramaphosa outlined plans to strengthen municipal accountability and improve service delivery.
Under the proposed system, municipalities would no longer automatically qualify to provide water and electricity services. Instead, providers would need to meet licensing requirements demonstrating their ability to deliver reliable services.
A key proposal would also require municipalities to ring-fence revenue generated from water and electricity sales, ensuring that funds are prioritised for infrastructure maintenance rather than being redirected to unrelated expenses.
The reforms come amid growing concerns over deteriorating municipal infrastructure, unreliable services and mounting debt. Ramaphosa revealed that municipalities collectively owe Eskom more than R120 billion.
What does this mean for local municipalities?
The changes could affect municipalities across Mpumalanga, including Msukaligwa, Lekwa and Govan Mbeki.
Municipalities unable to meet the required standards could face alternative service delivery arrangements, although no specific changes have been announced for these municipalities.
The reforms will be introduced in phases and may require legislative amendments before taking effect.
For residents, the proposed changes are intended to improve the reliability of water and electricity services while strengthening accountability for municipal revenue.