Gauteng has set aside R14.3-billion in capital funding for municipalities in the 2025/26 financial year to focus on sanitation, energy, and improving service delivery in communities.
Lebogang Maile, the MEC for finance and economic development, said Gauteng is committed to building local economies, creating jobs, and improving infrastructure.
He said that this cannot happen without strong and financially stable municipalities.
“We call on municipalities to fast-track projects to ensure that capital budgets are spent in accordance with rules and regulations to deliver services to communities,” said Maile.
He explained that the R14.3-billion budget will go towards upgrading basic infrastructure, including water systems, electricity supply, and roads.
It is also meant to support local economic development projects and unlock job opportunities at the community level.
Debt relief measures
According to Maile, there are also plans to assist municipalities through the Municipal Hands-On Programme. Advisors have been deployed to help local governments improve financial performance.
Some municipalities have already benefitted from debt relief, including the Emfuleni local municipality, which has scrapped R1.8-billion of its Eskom debt, and Mogale City, which has received R79-million in relief.
“Despite being South Africa’s economic engine, Gauteng has faced persistent challenges over the past decade,” said Maile.
He said the provincial economy has grown by only 8% from 2014 to 2024, but the population has grown by 25%. This, he said, deepens poverty and joblessness.
The department has now identified focus areas to stimulate growth and create jobs. These include, among others, revenue enhancement, as the province is exploring new ways to raise its funds.
Maile said the Gauteng Gambling Board is expected to contribute over R1.2-billion in 2025, while the Liquor Board is expected to generate over R75-million.
On economic infrastructure, Maile said there will be big investments in projects such as township revitalisation and special economic zones (SEZ).
Small businesses to benefit
Targets have been set to attract R2-billion in investment for the Vaal SEZ, R1-billion for the OR Tambo SEZ, and R1.5-billion for the Tshwane Automotive SEZ, he said.
Over 2 000 small businesses will be supported through financial and non-financial assistance in the new financial year.
On structural transformation, the department is focusing on including historically excluded groups, especially in the energy, mining, and digital sectors. Broad-based black economic empowerment compliance remains a key priority.
Maile added that innovation is a major focus, highlighting that the department will invest in digital technologies and infrastructure to make Gauteng a leader in the knowledge economy.
Although the national economy grew by just 0.1% in the first quarter of 2025, Maile believes Gauteng’s strategy will reverse the trend of slow growth and high unemployment.
He called on all departments and municipalities to work together, follow the rules, and spend funds responsibly.
