The State of the Capital Address (SoCA) delivered by the Executive Mayor of Tshwane’s multi-party coalition government laid out the undeniable truth that South Africa’s Capital City is on the rise.
Most clear is the vast improvement in the City’s financial position. Three years ago, under the DA-led government, the Auditor General determined that Tshwane was no longer a going concern, as its debts outweighed assets.
Following the technically bankrupt position that our multi-party coalition inherited in October 2024 from the previous administration, I am pleased to see that significant strides to improve the city’s financial position are evident in its balance sheet. Tshwane is now operating under its first fully funded budget for many years, with cash flow reserves increasing from just 17 days to at least 25 days.
The improvements in the AG reports and international ratings agency Moodys verify the stabilised status of Tshwane’s finances.
Important achievements include:
- Almost one third of the R6,67 billion Eskom debt left by former Mayor Brink has now been paid off
- More than 20,000 residents have also come forward to regularise their municipal accounts, reflecting a growing support of our residents to pay what is due to ensure the City can continue to provide and expand service delivery in a sustainable way, and 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 City is also cutting costs on contracted water tankering services by almost 80% and reducing contracted security services by almost one-fifth in the coming year. These substantial savings are reinvested into internal capacity, enabling us to deliver more at a lower cost with our own team.
Improved service delivery for our residents is also clear:
- Tens of kilometres of water pipes have been replaced,
- Hundreds of kilometres of roads resurfaced,
- Thousands of potholes have been repaired,
- Substations have been upgraded to improve the electricity supply, with electricity for key economic nodes like Rosslyn prioritised to protect jobs and enable faster economic growth.
The turnaround in the City’s fortunes is nowhere more clearly demonstrated than in the Tshwane Economic Development Agency’s pipeline of investment projects. A year ago, the value of verified new projects in this pipeline was just R1.4 billion, but today the value of new projects is hovering around R12 billion. We are humbled by this incredible testament to the confidence that the private sector has in Tshwane.
Whilst many challenges remain, the numbers are showing that Tshwane has turned a corner and has moved from a path of insolvency to one of positive, sustainable growth.
Tshwane is rising!
GOOD Youth Programs: GOOD has initiatives aimed at empowering young entrepreneurs.
Neogermal
A child can play with anything including his mother’s breast but not his father’s testicles.
Curio
Ag man! [Ach-man] This is the Afrikaans equivalent to “Oh man!” and is often used at the beginning of a sentence to express pity, resignation or irritation.Example: “Ag, man!” / “Ag, no man!” / “Ag, shame man!”