Godongwana launches Metro reform programme to unlock R108-billion in infrastructure investment

Finance Minister Enoch Godongwana says metro municipalities need to improve performance if they are to support the country’s economic growth and attract investment.

On Monday, the National Treasury introduced a reform and incentive programme to the country’s eight metro mayors, allowing them to compete for additional funding to improve infrastructure and expand network services in their municipalities.

Godongwana said that for too long, municipalities have managed trading services - such as water, electricity, and waste - as separate entities or departments, which has eroded accountability for poor performance.

The Metro Services Trading Reform Programme will require metro municipalities to adopt performance improvement action plans and deliver on eight accountability commitments in order to unlock a special grant.

Speaking to the metro mayors, Godongwana said the new reform programme is critical to addressing 40 years of under-investment in infrastructure and network services.

He added that the inability to expand bulk infrastructure is also stalling propertydevelopment.

“Our expectation is that through this incentive, your respective metros will invest additional money in targeted infrastructure through borrowing and internally generated funds.”

The Treasury is proposing a six-year, R54-billion performance-linked incentive grant aimed at unlocking R108-billion in infrastructure investment.

“If we don’t keep an eye on metros, we are not keeping an eye on South Africa. Because that’s where everything happens,” he said.

The Treasury has set a June 2026 deadline for metros to commit to the eight targets. Municipalities with a disclaimed or adverse audit opinion will be excluded from the programme.