The worst municipalities in South Africa

Minister of Cooperative Governance and Traditional Affairs (CoGTA), Velenkosini Hlabisa, has revealed the worst municipalities in South Africa.

Hlabisa shared this information in response to a Parliamentary question by National Assembly member Wiseman Ngobese.

Ngobese asked Hlabisa for details on the municipalities classified as financially distressed or dysfunctional.

He also asked for details on the interventions received, and measurable improvement has resulted from the specified interventions.

Hlabisa responded, saying 38 municipalities had been identified as distressed municipalities and were receiving structured support.

This structural support is done through the Municipal Performance Turnaround Strategy and related support measures.

“These municipalities were identified based on governance, financial, institutional, and service-delivery challenges that require focused support,” he said.

He added that 37 municipalities were subject to ongoing interventions, as required under the South African Constitution.

Hlabisa said that the Department assesses progress against measurable indicators, including audit outcomes and the implementation of municipal support.

They also consider financial recovery plans, infrastructure grant expenditure, revenue enhancement initiatives, and financial sustainability indicators.

The available information indicates that measurable improvements have been recorded in certain municipalities participating in support and intervention programmes.

• 7 of the 38 distressed municipalities recorded improvements in their audit outcomes during the 2024/25 audit cycle. 28 remained unchanged, and 2 regressed.

• 35 of the 38 distressed municipalities had adopted Municipal Support and Improvement Plans or Financial Recovery Plans to guide and monitor turnaround interventions.

• Municipal Infrastructure Grant expenditure improved in several distressed municipalities.

• Certain municipalities have demonstrated improvements in governance stability, recovery plan implementation, and municipal operations.

However, progress remains uneven. Several municipalities continue to experience serious financial, governance and service delivery challenges.

The problems include adverse audit outcomes, high debt levels, and difficulties in complying with debt-relief conditions.

“Accordingly, while measurable improvements have been achieved in certain areas, many municipalities have not yet attained sustainable recovery,” he said.

The worst municipalities in South Africa

Municipality	Date Instituted	Key Triggers / Intervention Themes
Enoch Mgijima LM	April 2022	Service delivery: Refuse collection and basic service failures. Financial: Financial crisis; inability to meet creditor obligations.
Amathole DM	January 2021	Service delivery: Difficulties providing basic services. Financial: Long-term financial sustainability concerns; high employee costs.
Makana LM	2019	Governance: Weak governance and unauthorised recruitment/payments. Financial: Debt exceeding R200 million; unfunded budget; significant irregular, fruitless and wasteful expenditure. Service delivery: Water outages, poor roads, refuse collection and waste-management failures. Legislative compliance: Persistent non-compliance with applicable requirements.
OR Tambo DM	8 Dec 2021	Financial: Creditor arrears, excessive employee costs, low collection revenue and unfunded budget. Governance: Repeated adverse audit outcomes. Service delivery: Inability to fulfil financial obligations and deliver essential services.
Walter Sisulu LM	23 Feb 2022	Financial: Eskom debt, low revenue collection and high debtor levels.Governance: Poor audit outcomes.
Mangaung Metropolitan Municipality	April 2022	Financial: R1 billion deficit; increasing irregular expenditure; financial distress. Governance: Persistent legislative non-compliance and institutional instability. Institutional: Failure to implement a Financial Recovery Plan.
Mafube LM	June 2022	Service delivery: Water, sanitation, electricity and infrastructure failures. Financial: Poor revenue collection, incorrect billing, irrecoverable debt and inadequate funding. Governance: Weak oversight, internal controls, accountability and performance management. Institutional: Skills and capacity shortages; labour challenges. Infrastructure: Ageing infrastructure and inadequate maintenance. Legislative compliance: Non-compliance and grant-management weaknesses.
Tokologo LM	June 2022	Financial: Financial distress and inability to fulfil statutory/executive obligations.
Kopanong LM	September 2023	Service delivery: Bulk water-supply challenges. Infrastructure: Ageing/damaged infrastructure and maintenance backlogs. Financial: Water losses, inadequate revenue collection and insufficient funding. Environmental/service quality: Low Green Drop performance and inadequate wastewater capacity.
Matjhabeng LM	October 2024	Financial/Governance: Intervention relating to identified municipal financial and governance challenges.
Nala LM	28 May 2025	Governance: Collapse of governance and institutional dualism. Legislative compliance: Non-compliance with relevant legislation. Service delivery: Persistent service-delivery failures.
Masilonyana LM	February 2026	Procedural/legislative: Provincial failure to comply with procedural requirements concerning Ministerial concurrence under S139(2).
Ngwathe LM	26 June 2026	Governance: Court-induced intervention resulting in dissolution of the Municipal Council. Institutional: Council unable to function effectively.
Impendle LM	15 June 2026	Governance: Governance and financial management failures. Financial: Weak consequence management relating to UIFW. Service delivery: Failure to address serious deficiencies identified by AGSA.
Emfuleni LM	June 2018	Financial: Severe cash-flow constraints, poor revenue collection, creditor arrears and expenditure-management weaknesses. Governance: Fraud/corruption concerns and vacant critical positions. Service delivery: Electricity, water, sanitation and waste-management failures. Infrastructure: Collapsing electricity infrastructure and pipe bursts. Institutional: Ineffective organogram and inadequate IT support.
Merafong LM	September 2022	Financial: Serious and persistent breach of financial obligations. Governance/Institutional: Serious institutional challenges. Service delivery: Persistent service-delivery challenges.
Waterberg DM	December 2025	Financial: Severe financial distress, cash-flow challenges and operational deficit. Financial sustainability: Dependence on grants and inability to meet financial commitments. Governance: Failure to adopt funded budgets for three consecutive years.
Emalahleni LM	October 2018	Governance/Institutional: Dysfunctional municipality and failure to meet MFMA intervention criteria.
Govan Mbeki LM	October 2018	Governance/Institutional: Dysfunctional municipality and failure to meet MFMA intervention criteria.
Msukaligwa LM	October 2018	Governance/Institutional: Dysfunctional municipality and failure to meet MFMA intervention criteria.
Thaba Chweu LM	October 2018	Governance/Institutional: Dysfunctional municipality and failure to meet MFMA intervention criteria.
Lekwa LM	April 2021	Financial: Financial instability. Service delivery: Electricity, water and water-infrastructure challenges. Governance: Poor governance. Institutional: Weak institutional capacity and dysfunctional administration.
Phokwane LM	July 2020	Governance: Weak governance and ineffective Council oversight. Service delivery: Interrupted water provision. Institutional: Failure to appoint senior managers. Financial: Weak oversight of municipal financial affairs.
Renosterberg LM	August 2020	Governance/Institutional: Failure to fulfill executive obligations. Service delivery: Electricity-supply failures. Legislative compliance: Non-compliance with the MFMA and regulations.
Sol Plaatje LM	May 2026	Governance: Persistent maladministration and political instability. Institutional: Administrative paralysis.
Madibeng LM	January 2022	Governance: Persistent maladministration and political instability. Institutional: Administrative paralysis. Financial: Financial mismanagement. Legislative compliance: Non-compliance with court orders.
Tswaing LM	January 2022	Governance: Persistent maladministration and political instability. Institutional: Administrative paralysis. Financial: Financial mismanagement. Legislative compliance: Non-compliance with court orders.
Dr Ruth Segomotsi Mompati DM	January 2022	Financial: Serious or persistent material breach of obligations to meet financial commitments.
Kgetleng Rivier LM	January 2022	Governance: Institutional instability. Institutional: Persistent systemic challenges affecting municipal functioning.
Ramotshere LM	January 2022	Governance: Institutional instability. Institutional: Persistent systemic challenges affecting municipal functioning.
Naledi LM	January 2022	Governance: Institutional instability. Institutional: Persistent systemic challenges and administrative paralysis.
Ditsobotla LM	August 2025	Governance: Persistent maladministration and political instability. Institutional: Administrative paralysis. Financial: Financial mismanagement. Legislative compliance: Non-compliance with court orders.
Matlosana LM	August 2024	Governance: Institutional instability and collapse of governance structures. Institutional: Persistent systemic challenges.
Beaufort West LM	August 2021	Financial: Serious or persistent material breach of financial obligations.
Kannaland LM	December 2023	Financial: Serious or persistent material breach of financial obligations.
Garden Route DM	October 2024	Governance/Legislative: Failure to fulfil executive obligations under the Constitution and applicable legislation.
Theewaterskloof LM	November 2024	Financial: Serious or persistent material breach of financial obligations.