President Cyril Ramaphosa delivers opening speech during a conversation between the National Executive Council and the Provincial Executive Council, held at the University of the Free State.
- President Cyril Ramaphosa acknowledged a crisis in South Africa’s local government, citing poor governance, financial mismanagement and corruption as key issues.
- Thirty-five of the 257 municipalities are in need, while 63% are at risk; Steps include revising financing models and improving water and electricity services, Ramaphosa told a meeting between national and free state governors.
- Free State Prime Minister MaQueen Letsoha-Mathae highlighted unemployment and wants to boost the economy through AI, renewable energy and agro-processing.
Local government is in crisis, President Cyril Ramaphosa admitted on Friday morning as the national executive met with the Free State provincial executive council.
“When local government is effective, competent and professional, service delivery is improved. With effective financial management and strong, responsible leadership in local government, we respond to the needs of citizens and enjoy their trust,” Ramaphosa said in his opening address at the meeting.
“If there are weaknesses or shortcomings in local government, not only does service delivery suffer, but trust between government and citizens is also damaged.”
He said: “To put it very bluntly, in much, if not most, of the country, local government is in crisis.”
According to Ramaphosa, in 2025, 35 of South Africa’s 257 municipalities were classified as distressed, and about 63% were classified as at risk.
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He said the number of municipalities placed under administration, including in the Free State, was growing.
“Underfinancing, lack of capacity, high debt and struggling revenue generation models are just some of the challenges. At the same time, many municipalities are virtually paralyzed by poor governance, financial mismanagement and corruption.”
Ramaphosa said in his State of the Nation address last month that he outlined steps the government would take to strengthen municipalities, including overhauling the financing model for municipalities and setting up ring-fenced utilities for water and electricity services.
“We will also consult extensively on the updated White Paper on Local Government over the course of this year.”
Ramaphosa added:
Restoring the fortunes of local government must be central to our efforts if we are to attract investments that create jobs and stimulate the provincial economy.
According to Ramaphosa, the Free State is “uniquely positioned to be at the center of our country’s economic growth story”.
“It is strategically located, making it a natural logistics and distribution hub connecting major economic centers.
“The province has extensive agricultural capacity, contributes significantly to our country’s food security and has a growing agro-processing sector.
“Mining is well established here, with increasing opportunities for production and utilization. The province is also utilizing its natural resources to generate renewable energy and for battery storage.”
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Free State Premier MaQueen Letsoha-Mathae said her province faces deep structural challenges that require deliberate and coordinated intervention.
“Unemployment remains the most immediate and urgent crisis facing our province. More than 1 million of our people are still out of work, with young people bearing the greatest burden. The reality of youth exclusion from economic participation is not only unsustainable, it is a direct threat to social stability and long-term development,” she said.
She said the provincial government is actively repositioning its economy towards sectors that can unlock inclusive growth and sustainable employment, such as artificial intelligence and robotics, renewable energy and green hydrogen, natural gas development, agro-processing and food production, the digital economy, e-commerce and entrepreneurship.
“Our focus is on building a competitive, forward-looking provincial economy that delivers real opportunities for our people,” Letsoha-Mathae said.
“At the same time, we recognize that economic reforms must be accompanied by decisive action to address persistent social challenges, including crime, substance abuse and inequality. These challenges require an integrated, government response that is both coordinated and results-oriented.”
Jan Gerber
www.news24.com
