ANC Unveils R54 Billion Plan To Fix South Africa’s Struggling Municipalities

South Africa’s ongoing service delivery struggles have once again taken centre stage, with the ANC putting serious money on the table in a bid to turn things around.

Speaking at Luthuli House, Fikile Mbalula unveiled an ambitious R54 billion plan aimed at fixing failing municipal infrastructure over the next three years. At the heart of it all is a promise to restore something many South Africans have lost faith in: reliable water and electricity.

Water Projects And Infrastructure Take Priority

The plan is heavily focused on repairing and expanding critical infrastructure, especially in metros where taps have run dry and power outages have become part of daily life.

Mbalula confirmed that 13 major water projects are already in motion. Among them are Phase 2 of the Lesotho Highlands Water Project and the uMkhomazi Water Project, both long-awaited developments expected to boost water supply.

The goal is simple but urgent: move from policy talk to actual delivery. As Mbalula put it, the focus is on ensuring funds translate into “water in the taps.”

A New Approach To Fix Broken Systems

Beyond funding, the ANC is experimenting with new ways to get things done.

One example is the Emfuleni Water and Sanitation special purpose vehicle, a model designed to cut through red tape and link spending directly to operational control. It signals a shift away from slow-moving municipal systems that have often struggled to deliver results.

This approach reflects a growing recognition that money alone will not fix municipalities without structural reform.

Debt Relief And Accountability Measures

Municipal finances have long been under pressure, particularly due to escalating debt owed to Eskom. According to Mbalula, relief worth R55.3 billion has already been rolled out to 71 municipalities.

But this support comes with strict conditions. Over 180 compliance actions and interventions under Section 139 have already been implemented to force struggling municipalities back on track.

The message is clear: financial support will only continue if governance improves.

Leadership Under The Spotlight

The ANC is also turning inward, placing its own leadership under scrutiny.

More than 3,000 councillors have undergone performance reviews, with Mbalula warning that those who fail to deliver could be replaced. A National War Room and a service delivery hotline have also been introduced to monitor issues in real time and respond faster to community complaints.

This push comes as the party prepares for upcoming elections, where local government performance is expected to be a major voter concern.

Coalition Politics And Election Readiness

Mbalula acknowledged the political reality facing the ANC at municipal level. The party currently holds outright control in only two metros, Mangaung and Buffalo City, relying on coalitions elsewhere.

To address instability, a new bill aimed at setting clearer rules for “principled coalitions” is in the works. At the same time, the ANC is finalising its mayoral candidates for metros and secondary cities, with announcements expected by June.

The party has also not shied away from removing mayors where leadership failures or internal divisions have surfaced.

Boosting Local Economies

Beyond infrastructure, the plan also looks to stimulate economic activity at a local level.

A National Local Economic Development Summit has already adopted a framework aimed at unlocking R18 billion in investment. The focus is on supporting around 6,500 small businesses, particularly in townships and rural areas where economic opportunities remain limited.

A High-Stakes Test For Local Government

For many South Africans, the success of this plan will not be measured in policy documents or political briefings, but in everyday realities: running water, functioning sewage systems, and fewer power disruptions.

With elections on the horizon, the ANC’s R54 billion commitment is more than just a policy announcement. It is a high-stakes attempt to rebuild trust in local government and prove that service delivery can still be fixed.