Economy

SA Treasury to inject $2.9 billion into Operation Vulindela’s municipal revamp

Date: Jul 14, 2025

South Africa’s (SA) National Treasury will in the coming financial year introduce a new funding model for the country’s struggling municipalities.

This is part of efforts to enhance the delivery of services through reforms into local government, and spatial integration introduced in the second phase of Operation Vulindlela.

The Treasury and the Presidency held a dialogue with economists on the released first quarter report into the operation’s second phase. The second phase targets thousands of job opportunities and 3.5% economic growth in the coming five years.

The Presidency’s Saul Musker says their turnaround starts with getting the right people in place.

“The main reason why our water systems and electricity distribution systems are not working effectively is because we haven’t invested in them for many, many years. Through the Vulindlela programme, one key aspect is about putting more funding towards water and electricity infrastructure through the Metro Trading Services Reform Programme,” says Musker.

He says there is $2.9 billion (R54 billion) in additional funding over the next six years for metros that implement certain reforms to improve their water and electricity utilities.

Musker adds, “The $2.9 billion is also to invest in the infrastructure, and to ensure that those systems work properly.”

--SABC--

 

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