The Democratic Alliance (DA) has formally committed to a policy that will ringfence municipal revenue generated from water and electricity services, ensuring these funds are strictly reserved for infrastructure maintenance. Federal leader Geordin Hill-Lewis unveiled the plan during the party’s 2026 local government election manifesto launch at Mary Fitzgerald Square in Johannesburg on 8 August 2026.
Protecting Essential Utility Funds
The proposed policy aims to prevent municipal revenue from being diverted into general operational budgets, which the party argues often leads to funds being mismanaged or redirected away from service delivery. By mandating that these specific revenues remain with the utility departments, the DA intends to curb the practice of using ratepayer money for unrelated expenditures like political projects or inflated salary structures.
Every rand collected for water will be protected for water. Every rand collected for electricity will be protected for electricity. Your money will no longer be treated as a political slush fund.
Hill-Lewis emphasized that this financial discipline is critical to addressing the country’s deteriorating municipal infrastructure. He stated during the launch, “It must be used to repair pipes, maintain substations and replace cables. It must never disappear into big salaries, political projects or corrupt contracts.”
Precedent And Implementation
This manifesto pillar draws on a pilot implementation at the Dawid Kruiper Local Municipality, where the council adopted a motion to ringfence these specific revenues on 9 April 2026. This move aligns with broader calls from the National Treasury to reform municipal trading services to ensure that the revenue generated from utilities is directly reinvested into the maintenance of the assets providing those services.
The policy carries significant local implications for residents in metros like Johannesburg and Ekurhuleni, who have grappled with persistent water and power outages caused by failing infrastructure. As the 4 November 2026 local government elections approach, the party is positioning this measure as a core solution to restore municipal accountability and operational stability. Further details on how this will be enforced across diverse municipal fiscal environments remain to be clarified by the party leadership.