Good Governance Helps Tshwane Rise

GOOD Statement by Sarah Mabotsa, GOOD City of Tshwane Councillor and Member of the Mayoral Committee responsible for Economic Development and Spatial Planning:

In commenting on the draft 2026/27 budget and latest IDP and MTREF reports for the City of Tshwane today in Council, GOOD’s Councillor Sarah Mabotsa, the Member of the Mayoral Committee responsible for Economic Development and Spatial Planning in the City of Tshwane, has noted how “GOOD governance is helping Tshwane to Rise”.

Just 3 years ago, the Auditor General of South Africa (AGSA) raised the alarm on the status Tshwane’s finances under the previous DA-led administration. Years of “illegally” unfunded budgets had committed the City administration to spend more than it was earning.

In October 2024, when GOOD was elected to Tshwane’s new multi-party coalition government, the metro had been left deeply in debt by previous DA-led administrations, owing R1,5 billon to Rand Water and a massive R6,7 billion debt owed to Eskom – more even than the City of Johannesburg owes now!

Today, just 20 months later, South Africa’s capital city is back in the black and has tabled its second successive fully funded budget. “The City of Tshwane’s second consecutive fully funded budget has been reviewed by National Treasury and is expected to achieve a R1,4 billion surplus. This money will be invested back into infrastructure and service delivery to benefit the residents of Tshwane” explained Mabotsa.

Rand Water debt has been paid off and nearly one third – almost R2 billion- of the debt to Eskom has been paid off. “Tshwane’s impressive financial turnaround has been verified by international agencies Moodys and GCR Ratings, who have improved their outlooks for Tshwane under the current administration” explained Mabotsa.

One example of savings being achieved by the current administration is cutting down on expensive private sector leases. “In 2019, just before the last local government elections, the Tshwane Economic Development Agency (TEDA) was moved into very expensive private office rentals which cost hundreds of thousands of rands each month. But this era of waste has ended. TEDA has now moved into wonderfully refurbished city-owned offices in Centurion. This move has more than halved the costs of the office rental, meaning that we are saving Tshwane residents millions of rands every year” said Mabotsa.

Savings like these are being passed on to residents. For example, in the coming year, the increase in electricity prices for Tshwane residents will be lower than what NERSA has approved nationally. “To achieve even more savings, hundreds of millions of Rands are also being invested to reduce water and electricity losses and to roll out more prepaid electricity meters across the metro” said Mabotsa.

Councillor Mabotsa is deployed to Tshwane’s Region 5 for oversight purposes. Region 5 is one of the poorest and most undeveloped regions of the city, with many areas lacking reliable road access and stable electricity supply.

For the 2026/27 financial year:

• R42 million has been allocated for upgrading roads, meaning improved access to neighbourhoods and townships for residents and emergency services,
• R4 million has been allocated for upgrading the Refilwe Stadium, and
• many millions of Rands have also been allocated towards the upgrading of old electricity infrastructure, specifically in Mamelodi and surrounding areas.

Most encouragingly has been the response of the private sector to the new direction Tshwane has taken. “A year ago, the value of investments into Tshwane verified by the TEDA’s was only R1,7 billion. Today, the value of new private sector projects in our investment pipeline exceeds R15 billion. This increased nine times over the last year. These new projects are bringing thousands and thousands of new jobs to our city.” said Mabotsa.

“GOOD is proud to be a part of the good governance coalition leading this recovery and Rise of South Africa’s capital city.”

GOOD Skills Training: GOOD emphasizes the importance of skills training for the workforce.

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