South Africa’s metro municipalities are under fresh scrutiny after Co-operative Governance and Traditional Affairs Minister Velenkosini Hlabisa warned that a collapse in the country’s eight metros would have national consequences. Speaking on 20 March 2026, Hlabisa said weak governance, rising debt and poor revenue collection were undermining service delivery in major urban centres.

The warning matters because metropolitan municipalities house 62% of the population and generate more than two-thirds of gross domestic product, according to Hlabisa’s official address. He said government now wants tighter co-ordination with metro mayors to stabilise finances and improve performance.

Hlabisa Flags Debt, Weak Controls and Poor Collection

Hlabisa said several South Africa metro municipalities face “systemic governance, fiscal and institutional pressures” that limit their ability to serve residents. According to his speech, the problems include unfunded mandates, unfunded budgets, and unauthorised, irregular, wasteful and fruitless expenditure.

He also said many municipalities are falling behind on payments to bulk suppliers, especially Eskom and water boards. In addition, he linked political instability, poor decision-making and weak accountability to falling revenue and low collection rates, which leave many councils under severe financial strain.

That broader warning comes amid continuing concern over municipal arrears to Eskom. Parliament’s Standing Committee on Public Accounts said in February 2025 that municipalities owed Eskom R94 billion in overdue debt, while SAnews later reported that the debt burden had continued to grow despite relief measures.

Why South Africa Metro Municipalities Matter

South Africa has eight metropolitan municipalities within its 257-municipality local government system, according to official government information. These metros carry outsized economic and social weight because they cover the country’s largest urban centres and service a majority of the population.

Hlabisa said the latest engagement with metro mayors was meant to move “beyond diagnosis” and toward clear commitments, shared accountability and coordinated action.

“The time for decisive action is now,”

he said, adding that stronger intergovernmental relations are needed to restore public trust and improve service delivery.