Asymmetric decentralisation in South Africa: implications for municipal governance

Abstract This paper examines the relationship between asymmetric decentralisation and 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 are associated with service delivery. The study uses a single-country case study that combines qualitative institutional analysis with descriptive comparative analysis of municipal fiscal outcomes drawn from national audit findings, intergovernmental financial reports, and policy and oversight documents. The analysis identifies structural associations and patterns rather than causal effects. Findings indicate a multi-speed local state. Metropolitan municipalities benefit from broader own-revenue bases and stronger administrative systems and tend to exhibit 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 are mirrored in pronounced 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.