Godongwana launches R108bn Metro Reform to boost services
image: Internet
by Kelebogile Matlou
Finance Minister Enoch Godongwana announced a new reform programme on Monday, September 29, 2025, with the goal of rewarding metro municipalities with more funds if they exceed performance criteria. During a workshop with metro mayors, the minister emphasized that the reforms will prioritize reducing wasteful spending, improving service delivery, and unlocking private investment, all without raising taxes.
The Metro Trading Services Reform initiative has the potential to unlock up to R108 billion in private financing to repair aging infrastructure in South Africa’s largest cities.
Under the new initiative, metros such as Johannesburg, Cape Town, and eThekwini will have to demonstrate their ability to improve critical trading services such as water, electricity, waste management, and roads in order to get further National Treasury subsidies. Targets include decreasing leakage, increasing revenue collection, and preparing for urban growth.
According to Godongwana, this strategy will not only improve efficiency but also assist cities attract large-scale infrastructure investment. “The metro trading services is one area where mayors can immediately learn together and collaborate, not only to unlock infrastructure investment but to improve performance,” he said.
Godongwana highlighted that with little room to increase taxes, the government’s only option is to reduce unnecessary spending. He questioned the usefulness of the National Student Financial Aid Scheme (NSFAS), implying that its functions could be absorbed by the Department of Higher Education to minimize administrative costs.
He also requested a review of the 27 institutions under the Department of Sport, Arts, and Culture, questioning whether they should continue to receive state financing. “We have to close some of them,” he said, stressing that such measures are critical for redirecting funds to necessary services and economic growth.
The Metro Trading Services Reform is part of the Cities Reform Programme, which aims to strengthen metropolitan centres as job and development engines. Godongwana warned that without these reforms, South Africa’s metros would stay under strain, bringing down the national economy.
While some stakeholders view the measures as additional red tape, others have praised the incentives for change. Godongwana acknowledged opposition to the Treasury’s ongoing budget assessments, but said that unpopular choices will have to be made to free up monies for national priorities.
Tshwane’s Deputy Mayor, Dr Nasiphi Moya, shared on X (previously Twitter) that he participated in a meeting with Minister of Finance Enoch Godongwana and National Treasury to discuss Metro Trading Services Reform 2025.
Godongwana regarded the discussion as an opportunity for collaboration, and his deputies David Makhura and Ashor Sarupen were also present. The workshop discussed how metros could get more funding and utilize R108 billion in private funds to provide dependable services to millions of South African citizens.
