Cut the waste or cut the cash: Godongwana’s metro shock

Godongwana

Cape Town – Finance Minister Enoch Godongwana has launched a bold new reform aimed at reshaping how South Africa’s metros function — by offering extra funding to those that hit performance targets and calling for wasteful spending to be slashed.

Speaking at a workshop with metro mayors on Monday, Godongwana said: “We can’t raise taxes any further, so the only option we have is to cut expenditure, starting with waste.”

He warned that duplication across state entities drains the fiscus, pointing to the Department of Sport, Arts and Culture which oversees 27 separate institutions: “What are they doing? All of them funded by the fiscus. We have to close some of them.”

The minister unveiled the Metro Trading Services Reform Programme, which will see metros adopt performance plans in exchange for an incentive grant. Treasury has set aside R54 billion over six years, which it says could unlock R108 billion in infrastructure investment if managed properly.

According to Godongwana, the programme will focus on improving water, sanitation, electricity and waste services by consolidating them under accountable, professional management. “The metro trading services is one area where mayors can immediately learn together and collaborate,” he said.

He also cautioned that delays in expanding bulk infrastructure were holding back growth in cities like Johannesburg, Tshwane and Cape Town. “When you don’t expand bulk infrastructure, you block property development, you block rate revenue, and you block service delivery,” he told mayors.

The reforms come as metros face worsening audit outcomes and growing debt. Godongwana argued that linking grants to performance will push municipalities to improve governance and cut corruption.

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