Asymmetric Decentralisation in South Africa: Implications for Municipal Governance

Nara Monkam and Panashe G. Taruvinga
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Nara Monkam: Department of Economics, University of Pretoria
Panashe G. Taruvinga: Public Policy Hub, Department of Economics, University of Pretoria

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

Abstract: This paper examines how asymmetric decentralisation shapes municipal governance in South Africa. Building on fiscal federalism perspectives, it analyses how differentiated powers, functions, and revenue capacities among municipalities at the same constitutional tier affect service delivery. The study uses a qualitative case study that synthesises secondary evidence from national audit findings, intergovernmental financial reports, and policy and oversight documents. Findings indicate a multi-speed local state. Metropolitan municipalities benefit from broader own-revenue bases and stronger administrative systems, enabling more reliable infrastructure investment and service provision. Many local municipalities remain transfer-dependent with uneven delivery, while district municipalities operate under rigid mandates that are not matched by commensurate revenue instruments. These asymmetries reinforce vertical and horizontal inequalities in the country. The study argues for capacity-linked functional assignments, targeted equalisation, clearer and enforceable mandate definitions, and the disciplined use of conditional grants and performance contracts. Such measures would align responsibilities with capability, mitigate regressive effects of asymmetry, and support more equitable and accountable local governance.

Pages: 33 pages
Date: 2026-02
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