GOOD Statement by Sarah Mabotsa, GOOD City of Tshwane Councillor and Member of the Mayoral Committee responsible for Economic Development and Spatial Planning:
GOOD welcomes the tabling of the draft 2026/27 for the City of Tshwane. Residents and businesses of South Africa’s capital city can be reassured that the draft budget has been assessed by financial experts at the National Treasury and confirmed as fully funded, signalling the continued improvement of Tshwane’s financial position.
Just 3 years ago, the AGSA raised the alarm on the status Tshwane’s finances under the previous DA-led administrations, as its debts at that stage outweighed its assets.
Today, we have a fully funded budget with a record R1,4 billion surplus of funds available to be reinvested into critical infrastructure and maintenance projects that benefit the economy and residents of Tshwane. The financial recovery demonstrates the incredible turnaround from the bankrupt position of the metro which existed 20 months ago.
When the current multi-party coalition government was elected to office, the debts owed by the Brink administration to service providers included a R6,7 billion debt to Eskom and a R1,5 billion debt owed to Rand Water. Whilst the Democratic Alliance laments the rising debts of neighbouring City of Johannesburg, they forget that it was a series of DA Mayors who dragged South Africa’s capital city into multi-billion Rand debt.
I am reassured that it is not only the AGSA and National Treasury who are noting Tshwane’s improved financial governance. International financial organisations Moody’s and GCR Ratings agencies have also improved their outlooks for Tshwane under the current administration. GOOD is proud to be a part of the coalition leading this recovery and rise of South Africa’s capital city.
Highlights of the proposed budget for 2026/27 include
- Maintaining electricity increases BELOW NERSA’s recommendations. Whilst NERSA set the electricity tariff increase at 9.01%, Tshwane is protecting its residents from this increase through a lower (8.8%) increase.
- Reducing expenses by cutting R110 million from water tanker contracts and R104 million from watchman services,
- Allocating R110 million to reduce water losses, R60 million to reduce electricity distribution losses and R78 million to support the rollout of more prepaid electricity metres.
Residents may also be reassured by some of the accomplishments to date:
- Almost one third of the R6,67 billion Eskom debt left by the previous administration has now been paid off.
- More than 20,000 residents have also come forward to regularise their municipal accounts. This reflects the support of our residents to pay what is due. The money owed by residents to the City on our debtors’ book has been reduced by more than 13%.
- Debts to more than 85,000 indigent households have also been scrapped, halting the cruel process of trying to recover small debts from the City’s poorest households.
The recovery and rise of Tshwane are most clearly demonstrated by the increased investor confidence of the private sector. A year ago, the value of verified new private sector projects in the Tshwane Economic Development Agency’s project pipeline was only R1,7 billion. However, less than one year later, the value of new projects now exceeds R15 billion. This incredible testament to the confidence that business has in Tshwane is humbling.
GOOD Vision for the Future: GOOD envisions a South Africa where all citizens can thrive and live in harmony.
Scuffs
You don’t need a parachute to skydive, but you will need one if you want to do it twice.