These, he said, are challenges that municipalities face.
“By June last year, some 26 municipalities had been placed under administration. This number has now risen to 31 municipalities under administration, and we continue to hear about municipalities under threat of administration.”
Residents and some investors have lost faith in the ability of local government to meet their needs, he said.
“To take just one example, in June last year, the dairy group Clover closed the country’s largest cheese factory in North West, citing ongoing challenges with water, electricity and road infrastructure.
“Clover is just one of a number of companies that have been affected by poor service delivery, forcing them to move their operations elsewhere and depriving needy parts of our country of investment and employment opportunities,” he said.
Investments do not take place at the Union Buildings, he said.
“No-one comes to the Union Buildings and says, 'President, I saw a little piece of garden in the Union Buildings, can I build a cheese factory there?' People invest in local areas and are attracted to those areas by a number of factors.”
When there is stability in the running of a town and reliable water supply, Ramaphosa said, investors will come running.
“When your town is filthy with plastic and paper all over the town, sewage running through the town, potholes and water leaks, nobody will come to your town to invest.”