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Mpumalanga MEC for cooperative governance and traditional affairs Norman Mokoena says the department must ensure that resources allocated to the various departments and municipalities are used collectively in communities.
He said this would result in ensuring that "we make a bigger impact and dent on poverty and unemployment".
Mokoena was speaking at a press briefing at the provincial legislature on Monday.
He said in line with the renaming of the department (previously the department of local government and housing) and putting more emphasis on cooperative governance, there was a need to establish a new unit that would focus solely on performance monitoring and support of municipalities.
"This unit will be headed by a senior manager and will, among other issues, ensure the development and implementation of a performance and management system in municipalities," Mkoena said.
"It will review their performance, oversight reports such as Section 46 and annual reports."
He said the renaming of the department meant that there was a need to put a lot of emphasis on cooperative governance.