Government sets aside funds for municipal infrastructure improvements

South Africa's Minister of Planning, Monitoring and Evaluation, Maropene Ramokgopa, has announced that the government has allocated significant funds to enhance public infrastructure in municipalities. An inter-ministerial committee will support distressed local governments. This comes as part of the Mid-Term Development Plan's latest progress report.

In a recent update, Minister Maropene Ramokgopa highlighted the government's commitment to bolstering public infrastructure across South African municipalities. Speaking on the release of the Mid-Term Development Plan (MTDP) Bi-Annual Progress Report for April to September 2026, she emphasized the strategic allocations aimed at addressing longstanding challenges in local governance.

The MTDP serves as the administration's five-year blueprint, detailing key objectives for national development. Ramokgopa noted that over the Medium-Term Expenditure Framework (MTEF), R1.03 trillion has been earmarked specifically for public infrastructure projects. This funding supports a range of initiatives, including the Infrastructure Fund's approval of 26 blended finance projects totaling R101.6 billion. Additionally, the Budget Facility for Infrastructure (BFI) has greenlit 10 major projects valued at R37.1 billion, set for immediate implementation.

To tackle issues in struggling municipalities, an inter-ministerial committee has been established to provide targeted assistance. The bi-annual monitoring review, released alongside the report, assesses departmental progress, identifies obstacles, and proposes corrective measures. Ramokgopa stated, “Government has set aside R1.03 trillion for public infrastructure over the Medium-Term Expenditure Framework (MTEF). The Infrastructure Fund has approved 26 blended finance projects worth R101.6 billion. The Budget Facility for Infrastructure (BFI) approved 10 major projects worth R37.1 billion for implementation.”

This initiative reflects broader efforts to improve service delivery and economic stability at the local level, though the report underscores ongoing challenges that require sustained action.

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Finance Minister Enoch Godongwana presenting South Africa's medium-term budget in parliament, with economic charts and national flag.
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South Africa tables medium-term budget focusing on growth and fiscal stability

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Finance Minister Enoch Godongwana presented the Medium-Term Budget Policy Statement on 12 November 2025, emphasizing economic growth, structural reforms, and fiscal discipline amid global uncertainties. The statement forecasts 1.2% GDP growth for 2025 and an average of 1.8% through 2028, with debt stabilizing at 77.9% of GDP. Markets reacted positively, with the rand strengthening to 17.05 against the dollar.

Baraza la Mawaziri la Kenya limethibitisha kuanzishwa kwa Mfuko wa Miundombinu wa Taifa wenye thamani ya Ksh5 trilioni ili kuharakisha ukuaji wa uchumi. Mfuko huu, pamoja na Mfuko wa Mali ya Taifa, utatumia mbinu za ubunifu za ufadhili kama mauzo ya mali za umma na akiba ya taifa ili kufadhili miradi muhimu. Hatua hii inafuata ahadi ya Rais Ruto ya kufanya mfuko huo uwe na athari katika siku zijazo.

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Finance Minister Enoch Godongwana presented the 2026 National Budget on 25 February 2026, announcing debt stabilisation at 78.9% of GDP and the withdrawal of proposed tax increases. The budget allocates R292.8 billion for social grants with increases for recipients and commits R1.07 trillion to infrastructure over the medium term. Reforms aim to enhance economic growth and public service efficiency amid a projected 1.6% growth for 2026.

Finance Minister Enoch Godongwana is set to deliver South Africa's 2026 Budget speech on February 25, amid positive economic signals including a credit rating upgrade and rising commodity prices. These factors are expected to support efforts to cap the country's debt at 77.9% of GDP and advance fiscal consolidation. Economists anticipate a focus on stabilizing debt and outlining a path to lower ratios in the medium and long term.

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The Ministry of Finance and municipal representatives have agreed on a 7.8% adjustment in transfers from the General Participation System (SGP) for the first twelfth of 2026, following a reduction in the last period of 2025. The meetings also reviewed technical models for fund distribution throughout the rest of the year.

The Portfolio Committee on Communications and Digital Technologies has expressed satisfaction with the ongoing work to develop a funding model for the South African Broadcasting Corporation (SABC). Chairperson Khusela Diko highlighted the importance of this step while requesting timelines for its finalization. Communications Minister Solly Malatsi provided updates, noting the model's dual structure and the need for parliamentary input.

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Viongozi wa upinzani nchini Kenya wameomba Bunge kukataa Mswada wa Wizara ya Fedha kuhusu Miundombinu, 2026 na kusitisha mpango wa kuuza hisa za serikali katika Safaricom. Wanasema mapendekezo hayo yanahatarisha ulinzi wa kikatiba wa fedha za umma na mali ya kimkakati. Pia wametaka uchunguzi huru na tathmini ya mali kabla ya hatua yoyote.

 

 

 

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