06 Aug 2025

The Ministry of Local Government and Traditional Affairs together with local authorities have developed a revenue maximisation strategy.

This strategy is to review user fees, charges and tariffs for possible alignment with the current service costs and maximisation of revenue collection on existing sources such as rates and user fees. Answering a question in Parliament on yesterday, the Minister of Local Government and Traditional Affairs, Mr Ketlhalefile Motshegwa said the ministry had developed the draft Decentralisation Policy, which once approved by government, would give councils full autonomy in terms of fiscal decentralisation.

He said while the intention was to achieve full autonomy, there was a need to maintain subsidiarity where central government would continue to provide oversight and policy formulation. Further to the stated initiatives, he also said it was important to develop an institutional framework for broad based public, inclusive consultations, participation and accountability at the local level to ensure that councils’ decision making was citizen centred.

He also said this was to support local authorities to identify, design and implement local economic development initiatives in their jurisdictions that were consistent with national development strategies and citizens’ needs. Mr Motshegwa further said they would lastly develop capacity of local authorities and support them to mobilise and prudently manage their expenditures and revenues to promote local services and development programmes in their jurisdictions. He said the draft policy was undergoing consultations and was yet to be considered by Cabinet, followed by Parliament.

“Once the legal framework is in place, implementation will commence in earnest,” he said.

The minister also said that the Local Government Act of 2012 allowed local authorities to embark on revenue maximisation opportunities and explore other investment prospects such as feasible bonds market and partnerships with potential investors within local authorities’ jurisdictions and at national level.

“Where there are any constraints resulting from the law on what the local authority can invest on, there will be a need for a comprehensive legislative review,” he said.

Minister Motshegwa was responding to a question from MP for Bobirwa, Mr Taolo Lucas who sought that the minister appraises the house on planned administrative and legislative changes that would allow councils to attain autonomy and be financially independent from the central government. ENDS