Finance Minister Pravin Gordhan has announced a number of initiatives to help underperforming municipalities improve revenue collection, record keeping and infrastructure spending.

A significant number of municipalities fail to collect the money owed to them, while the valuation rolls on which property rates are based are often out of date. Many municipalities are also plagued by illegal electricity and water connections, due to ailing infrastructure and poor maintenance. The eight metropolitan municipalities alone forfeit R6.5 billion annually through losses in water and electricity.