Limpopo budget exposes governance failure and economic stagnation

Issued by Jacques Smalle MPL – DA Provincial Spokesperson for Finance
11 Mar 2026 in Press Statements

The Democratic Alliance (DA) in Limpopo believes that whilst the Finance MEC Kgabo Mahoai spoke of fiscal discipline and development priorities in the  2026/27 Limpopo Provincial Budget he tabled, the budget ultimately exposes deep structural weaknesses created by years of ANC governance in the province.

Local government’s downward spiral and the inability to supply the basics (water and electricity) has led to eight Limpopo municipalities adopting unfunded budgets which is not a technical issue, but rather a sign of financial collapse. When municipalities pass unfunded budgets, it over promises and under delivers on its promises to their respective citizens.

While the budget announces billions towards infrastructure, the detail tells a different story. Public Works and Transport, the implementing agents for most of this work, are currently unable to fulfil their mandates and continue to underspend on various grant allocations, increasing the risk that these funds may ultimately be forfeited. This is not a sign of progress; rather, it is evidence of an incapable government.

Road, school infrastructure and government maintenance backlogs exceed R50 billion, while the government spends more than R2 billion on private security firms to guard infrastructure.

The recent floods across the province further exposed this reality. The recent flood disaster did not create Limpopo’s infrastructure crisis – it exposed it. Roads and municipal services were already deteriorating long before the disaster struck.

Without significant and sustained economic growth, and the continued bailing out of SOE’s and revitilasation of failed previously bailed projects, Limpopo will not meaningfully reduce unemployment, poverty or inequality. Job creation cannot rely on expanding the public sector wage bill. Real jobs will come from investment and a thriving private sector.

Limpopo is a province rich in mineral resources, agricultural potential and tourism opportunities. Yet decades of ANC governance have left many municipalities collapsing, infrastructure deteriorating and stagnating economic growth.

If Limpopo is to realise its enormous potential, the ANC-led province must do something far more difficult than tabling another budget – it must confront the governance failures at provincial and municipal level that are holding this province back.