DA-run Mossel Bay and Midvaal rated Top Municipalities in SA for Financial Sustainability
10 April 2024
Earlier today, at the Ratings Afrika awards ceremony, the DA-run Mossel Bay Municipality was acknowledged for its outstanding performance over a number of years and by being acknowledged as the top municipality in the South Africa, jointly with Midvaal, for its Financial Sustainability.
Both Mossel Bay and Midvaal scored an impressive 74 out of a possible 100 with three other Western Cape municipalities making up the top 5. These being Saldanha Bay (73/100), Swellendam (72/100) and Swartland (71/100).
The City of Cape Town was acknowledged as the top Metro in the country with a score of 70. The average score for Western Cape municipalities is 53 with the next best Province on 41.
Ratings Afrika defines financial sustainability as the financial ability to deliver services. The ability to develop and maintain infrastructure required by the residents whilst balancing the ever-increasing pressure for increases in rates and tariffs due to the pressures in the current economic and political environment without negatively impacting the level of services.
It shows that these DA run municipalities were best prepared to absorbed the financial shocks caused by the COVID-19 pandemic, failing Eskom and an economy that is failing nationally leaving more and more people dependent on free services.
The scoring model developed over the years measure six components:
- operating performance
- liquidity management
- debt governance
- budget position
- affordability
- infrastructure development
We are proud of the achievements by all our top-performing municipalities, showing that municipalities work when it is governed by the DA.
It is important that these successes are protected and enhanced in the Western Cape by keeping the DA’s outright majority in the province.
Rating’s Afrika in their conclusion today said that other provinces could take guidance from the Western Cape municipalities (and Midvaal) on how to run financially sustainable municipalities.
Issued by Jaco Londt, DA Provincial Chairperson, Western Cape, 10 April 2024
