Government has introduced a performance-based reform programme aimed at improving service delivery in metropolitan municipalities, including electricity services, expected to unlock more than R100 billion in infrastructure investment.
The programme includes a R54 billion performance-based incentive grant with R27,7 billion allocated over the medium term.
“Over the past decade, we have witnessed the steady erosion of municipal capabilities in many parts of the country: infrastructure failures, unreliable services, financial stress and declining public confidence,” National Treasury Director-General Duncan Pieterse said during the launch on March 18.
According to Pieterse, the reform targets core municipal services such as electricity, water and waste with focus on improving infrastructure delivery, operational performance and financial sustainability in metros.
Funding will be linked to the implementation of performance improvement action plans, which metros are required to develop and execute.
As part of the reform, revenue generated from services such as electricity will be ringfenced and reinvested into infrastructure, operations and maintenance.
Pieterse said the programme intends to strengthen municipal financial management, improve revenue collection and support more effective infrastructure investment. The reform also introduces measures to improve accountability and ensure that funding is directed towards service delivery priorities.
