The monthly MetroMonitor report is a summary of all the important events across the eight metros. To read the full report please click here.
2024/25 budget hiccups delay signoffs
June 30 was the deadline for passing the 2024/25 municipal budgets and every metro with the exception of Cape Town struggled with the process. Many of the delays were related to either ANC / EFF tensions in Gauteng or pushback against proposed electricity tariff increases.
In Johannesburg, the ANC’s coalition partners refused to support the budget vote, with the EFF and PA accusing the party of taking them for granted. The budget was only passed a week later. The city was also criticised for its proposed R200 surcharge for prepaid electricity customers, which would raise the effective tariff increase closer to 20%. In Tshwane the ANC and EFF walked out of the budget vote with the EFF criticising the proposed tariff increases as ‘unjust’.
The Ekurhuleni budget was rejected twice before being approved in council while in eThekwini both opposition parties and community organisations criticised the proposed tariff increases. Council had to reduce some proposed tariff increases before the budget was adopted. Nelson Mandela Bay also had to reduce its proposed electricity tariff increase before its budget was adopted, facing pressure from the metro’s business chamber.
Buffalo City was criticised for approving its budget without meeting ratepayers and for tabling an electricity tariff increase of 15.3%, significantly higher than Nersa’s recommended 12.7%. Mangaung was the only metro that did not submit a cost report to Nersa, possibly leading to a freeze in its electricity tariffs.
Debt collection goes into overdrive in Johannesburg, Tshwane and Nelson Mandela Bay
Most metros struggled to balance their budgets and high electricity price increases were not the only attempt to raise their revenue, a few also refocused on debt collection.
In Johannesburg, City Power disconnected seven businesses and two residential complexes for non-payment of debt. Tshwane issued notices of demand to 14 000 customers who owed money for electricity and water. Nelson Mandela Bay disconnected 32 homes and eight businesses for non-payment.
Political killings increase while ANC, EFF deal with relationship fallout
Three MK members were killed in Ekurhuleni days before the national election and another one was killed in eThekwini a week later. A municipal worker was also killed in eThekwini with rumours swirling that his murder was linked to a lucrative water contract.
In Buffalo City, a councillor who was shot outside her home in January died four months later from the attack, exposing factionalism in the city as ANC members argued over her successor.
The firing of the EFF’s Nkululeko Dunga as Ekurhuleni’s finance MMC led to an immediate backlash from the EFF, who threatened to remove all of its MMCs from municipalities where the ANC and EFF were in coalition. The formation of the Government of National Unity at national and provincial level raised the risk of the EFF being removed from local government coalitions.
Flooding in coastal cities leads to widespread damages and displacement
Heavy rains in the region led to flooding across South Africa. In Cape Town, flooding affected thousands of people with over 1 200 homes damaged. Floods in Nelson Mandela Bay led to over R1-billion in damages and the relocation of thousands of informal settlement dwellers. Over 2 200 residents were displaced in Buffalo City’s floods, leading to thousands of displaced people and at least one death.
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