The Democratic Alliance (DA) has announced plans to expand private sector involvement in South African municipal services, including water provision, electricity supply, crime prevention, and maintenance of public spaces, according to the party’s latest manifesto published on 12 August 2026. The move underlines a growing political momentum towards Public–Private Partnerships (PPPs) as municipalities face severe infrastructure backlogs and service delivery challenges.

Political Support And Official Endorsement

The DA’s manifesto emphasises the urgency of allowing municipalities to engage directly with private energy and service providers, bypassing protracted approvals from national government. Citing this position, the DA’s manifesto states: “Municipalities must be empowered to buy and sell electricity directly from private energy companies without waiting years for national government approval.” This policy aligns with recent recommendations by the National Council of Provinces (NCOP), which highlighted in a 2025 report the need to deepen private sector participation to address infrastructure backlogs and improve service delivery.

Recent developments include the City of Cape Town’s Wheeling Bilateral Programme, which allows private entities to supply electricity directly to consumers—an initiative that aims to enhance energy resilience and reduce reliance on national providers. The NCOP has underscored the importance of the private sector’s role in developing municipal infrastructure, with one report stating: “There is a need to deepen private sector to play an essential role in the development of municipal infrastructure.”

Concerns Over Accountability And Equity

While many policymakers and local governments argue that increased private involvement can improve efficiency and drive investment, critics have raised concerns about potential risks. The South African Communist Party (SACP), in statements dating back to 1999 and reiterated in recent policy discussions, has warned that PPPs could shift control of critical services to private interests, which may weaken public accountability and risk inequitable access to essential services.

Dhevan Govender, General Manager for Business Development (Water and Sanitation) at EnviroServ, argued in June that PPPs can “make infrastructure far more resilient” by incentivising ongoing, performance-driven service delivery. However, unions and civil society organisations continue to question whether private control could prioritise profit over public benefit, particularly in historically underserved communities.

Debate is likely to intensify as municipal and national governments seek to balance urgent infrastructure needs with concerns over accountability, transparency, and access. The trajectory of these reforms will come under renewed scrutiny as municipalities roll out new PPP models and as other metros weigh similar policies.