Tshwane's budget focuses on service delivery and affordability
City of Tshwane Deputy Mayor and MMC for Finance, Eugene Modise tabled the City's 2025/206 budget, describing it as being pro-poor.
Image: Supplied
City of Tshwane Deputy Mayor and MMC for Finance, Eugene Modise, presented the 2025/2026 budget at Tshwane House on Thursday, describing it as pro-poor and service delivery-focused, with a R2.4 billion capital budget and a R52.2bn operational budget.
The budget includes R7.4bn in grant funding for the next financial year, broken down into R5.5bn for operational grants, R2bn for infrastructure, and R152 million for the newly introduced urban development financing grant.
Modise highlighted that the budget is fully funded, adding that the National Treasury has formally endorsed it as credible.
Regarding the upcoming tariffs for rates and services effective July 1, Modise said: 'We have prioritised keeping rates as far and affordable as possible, ensuring that residents are not burdened with unreasonable increases.'
Electricity tariffs will rise by 10.1%, below the 11.32% bulk tariff increase from Eskom, while water charges will increase by 13%, lower than Rand Water's 15.13% hike.
Meanwhile, sanitation tariffs will increase by 6%, and waste removal tariffs will rise by 4.6%.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad Loading
Modise explained that due to the increases, the new administration decided to reduce property rates by 4% to cushion residents from the impact of higher property valuations under the new general valuation roll.
He announced that the city's cleansing levy, a monthly fixed fee of R194 for households using private refuse collection, is aimed at improving urban cleanliness and waste management.
'Much has been made of this proposed cleansing levy. It must be noted that this levy is not new or unique to Tshwane. A cleansing levy was introduced some years ago and duly taken on judicial review in order for implementation to be regularised,' he said.
Both the DA and AfriForum have opposed the proposed levy, criticising it as an additional tax burden on Tshwane's already overtaxed residents.
Modise expressed concern about the rapid growth of informal settlements, announcing a R98 million budget to formalise them.
The announcement comes after a recent public spat between the DA and the ANC over Tshwane's growing informal settlements.
ANC caucus spokesperson Joel Masilela accused the DA of letting informal settlements grow after gaining control of the municipality in the 2016 elections.
An amount of R36m has been allocated to Group Audit and Risk for forensic investigations to combat corruption.
Modise said: 'These investments will support the implementation of the audit outcome remedial action plan and help address the concerns raised by the Auditor-General of South Africa.'
In addition, he said, the City has committed R15m to identify risks early and improve the quality of our financial reporting.
'We are clear in our ambition to achieve an unqualified audit in the next financial year. The work to achieve this clean audit has already begun as evidenced by R11.7bn of unauthorised, irregular, fruitless and wasteful expenditure investigations completed, compared to a mere R1.2bn in the previous financial year,' he said.
At least R49.2m will fund 11,034 work opportunities through the Expanded Public Works Programme, and R76m is allocated to the Public Employment Programme.
To achieve growth and employment targets, Modise said, the city will utilise its strategic assets, including Wonderboom National Airport, Tshwane Events Centre, Tshwane Fresh Produce Market, Pretoria West Power Station and Rooiwal Power Station.
The city, he said, aims to attract over R17bn in new investment, which is expected to add around 80,000 new jobs to the economy from 2025 to 2029 through its revitalisation strategy.
rapula.moatshe@inl.co.za
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
11 hours ago
- TimesLIVE
Illicit financial flows are derailing Africa's future
Illicit financial flows (IFFs) continue to undermine the future of Africa, hampering the ability of governments to adequately fund education, healthcare and development projects essential for lifting people out of poverty and fostering sustainable economic growth. As business leaders, politicians, academics and citizens, we cannot sit back. We must help curb the illegal flow of money out of our country through a cohesive effort by all stakeholders, both local and international, to ensure safeguards are put in place, laws are harmonised, and all enforcement agencies work together to address the problem. At the same time, we must not do anything that will deter investment. Ahead of G20 summit in Johannesburg in November, as well precursor meetings — such as the G20 finance ministers' and central bank governors' meeting and the T20 midterm conference held this month — we must formulate proposals that integrate the perspectives of public and private sector institutions, nonprofit organisations, think-tanks and universities. Together we can make valuable policy recommendations, such as using AI to turn vast amounts of data into information for developing strategic interventions. Working alongside each other, we can identify gaps in current legal frameworks and areas where greater co-operation is required. We must seek ways to stem illicit money flows. When individuals or companies evade their tax obligations, deliberately falsify import or export documents, or misappropriate funds intended for development projects, they are not committing victimless crimes. These outflows not only weaken our reputation in the eyes of the international markets, but also make it harder for the government to raise capital at manageable interest rates. We already owe too much: the National Treasury predicts that debt on our national balance sheet will be 77% of GDP this year. IFFs directly undermine economic growth, costing the South African economy the equivalent of almost 5% of annual collected tax revenue — losses of about R92.5bn. On the African continent, the numbers are more alarming, with between $50bn (about R889bn) and $90bn stolen annually, according to the UN. A 2020 report from a UN conference on trade and development states that IFFs represent as much as 3.7% of Africa's GDP. This figure has almost certainly grown since then, given that those who break laws will keep doing so if they are not held accountable. We recently convened a G20 multi-stakeholder dialogue to better understand this challenge, quantify its impact, assess current solutions, and identify new ones . One of our speakers, deputy minister of international relations and co-operation Alvin Botes, spelt out what this theft means: countries with high IFFs spend at least 25% less on healthcare and 50% less on education compared with their peers. IFFs wipe out any good the $65bn in aid Africa receives each year might do. They reduce progress made in making people's lives better. There are initiatives under way to address IFFs. For example, the Financial Action Task Force (FATF) collaborates with the UN to strengthen countries' financial systems and prevent illicit outflows. While South Africa's inclusion on the FATF's grey list is viewed by some as an embarrassment, it enables us to strengthen our legal and regulatory frameworks, as well as enhance our anti-money-laundering capabilities. While South Africa's inclusion on the FATF's grey list is viewed by some as an embarrassment, it enables us to strengthen our legal and regulatory frameworks, as well as enhance our anti-money-laundering capabilities. We are also seeing prosecutions of high-level fraudsters, especially those who use dubious accounting methods to move money around and avoid paying their fair share of taxes. It is gratifying to see that action has been taken in this regard. Other UN entities have developed discussion platforms and measurement systems. There are 10 asset-recovery inter-agency networks that have 178 member countries, allowing illicit money flows to be traced across borders. In addition, Interpol supports national and international law enforcement agencies to investigate, trace and prosecute those responsible for these crimes. We must all strive towards expanding such interventions, as well as advocate for and enable closer alignment between government departments and between local law enforcement agencies and their international counterparts. However, our solutions must not cause more harm than good by discouraging legitimate investment. We should not, for example, implement unfair tax regimes that could result in capital flight. We must also not inhibit international investment inflows by making it nearly impossible to comply with legislation and regulations. Such a state of affairs would merely encourage companies to operate businesses in sectors such as import and export under the radar. Through working together by sharing data, harmonising laws and holding those responsible for IFFs accountable, we can strengthen the economy by plugging the holes through which money leaks and encouraging investment. Our people deserve nothing less.
Mail & Guardian
11 hours ago
- Mail & Guardian
South Africa must revive its industrial ambitions
Neglecting existing infrastructure generates higher long-term costs. South Africa's industrial decline is accelerating. State-owned enterprises that once drove economic transformation now epitomise institutional failure. Eskom's power cuts cripple manufacturing. Transnet's rail network deteriorates while ports struggle with backlogs. The Industrial Development Corporation, established to finance industrialisation, limps along with a compromised balance sheet. This infrastructure was built on the vision of Jan Smuts, prime minister from 1919 to 1924 and 1939 to 1948. While his commitment to racial segregation was morally reprehensible, his approach to economic development offers lessons for today's policymakers grappling with sluggish growth and persistent inequality. Smuts understood that South Africa needed to transcend its role as a commodity supplier to Britain's industrial economy. His developmental state model, combining strategic state investment, international partnerships and technocratic competence, transformed the country from a mining enclave into Africa's most sophisticated industrial economy. The foundations he laid endured for decades. The Electricity Supply Commission (later Eskom) provided cheap power that enabled large-scale manufacturing. The Iron and Steel Corporation (Iscor) supplied essential inputs for further industrialisation. His successors built on these foundations, establishing Sasol for synthetic fuels and the Council for Scientific and Industrial Research. Today, these institutions are shadows of their former selves. More troubling, the country appears to have lost the capacity for the long-term thinking that created them. South Africa's economic performance tells a sobering story. Growth has averaged just 0.8% annually over the past five years, well below the rate needed to reduce unemployment or meaningfully tackle poverty. The Gini coefficient, measuring income The benefits of black economic empowerment (BEE) policies have accrued primarily to political and economic elites, while the rest remain excluded from meaningful economic participation. The debate over the benefits of BEE has resurfaced, particularly concerning its mechanisms for wealth distribution. This has been highlighted by the recent scepticism surrounding the potential introduction of Starlink to South Africa, with concerns about exceptions to BEE compliance. Nonetheless, it is undisputed that, as a result of transformative Moreover, the state capture scandal, where politically connected individuals systematically looted public resources, represents the nadir of this failure, which has been accounted for by the collapse of Transnet and Eskom, the consequences of which are signified by inefficiencies thereafter. Despite the Zondo state capture commission spending more than R1 billion investigating the theft, many implicated figures retain positions of influence. Why do voters continue to elect leaders who have demonstrably failed them? The answer lies in how persistent unemployment, poverty and inequality make populations vulnerable to manipulation by the very politicians who created these conditions. The contrast with Smuts's approach is stark. He prioritised competence over patronage, choosing Hendrik Johannes van der Bijl, a German-educated engineer with US business experience to integrate the country's fragmented electricity supply. Van der Bijl's technical expertise, combined with political backing, enabled the creation of a power system that underpinned decades of industrial growth. Today's leaders talk about infrastructure development but have forgotten a crucial lesson: maintenance matters more than new construction. Neglecting existing infrastructure generates higher long-term costs than building new capacity. Johannesburg's collapsing central business district exemplifies this short-sightedness. Years of deferred maintenance have created a crisis that will cost far more to resolve than it would have cost to prevent. The rot runs deeper than poor maintenance. It reflects a broader failure of vision and leadership. Where Smuts aligned South Africa with international partners to attract investment and expertise, contemporary leaders often prioritise political survival over economic transformation. South Africa does not need to resurrect Smuts's racial ideology; his vision of white supremacy was both morally bankrupt and economically counterproductive. But it needs his approach to state-led development, clear vision, international partnerships, infrastructure investment and, above all, competence in execution. The formation of a government of national unity after the 2024 elections suggests political leaders recognise the scale of the crisis. The question is whether they possess the vision and competence to address it. As Smuts understood, South Africa's prosperity depends on reliable electricity, efficient transport and industrial capacity. These foundations are crumbling. Without urgent action to rebuild them, the country risks becoming a case study in how great institutions can be destroyed by poor leadership. The blueprint for revival exists in South Africa's own history. The question is whether anyone has the courage to follow it. Ashley Nyiko Mabasa holds master's in economic and labour sociology focused on energy policies and master's in public policy and governance focused on data governance, and is co-chairperson of the Brics Youth Council.
The Citizen
2 days ago
- The Citizen
Eskom debt is strangling Endumeni, warns Chamber
The Endumeni Chamber of Commerce meeting last week laid bare the township's deepening woes, as members heard that Eskom debt has ballooned to R294 million despite a repayment agreement. The municipality is now paying R1.8 million a month simply to cover arrears and current costs—yet Eskom still flags Endumeni as a high risk, warning of possible load shedding. 'They do not budget properly,' said newly elected Chamber president Alan Schonken, adding that infrastructure maintenance should account for 8% of the capital budget but typically sits just above 3%. Hence, the perpetual battle with poor roads and failing streetlights. Former councillor Anthon Raubenheimer pointed out that three years ago, Endumeni had no Eskom debt, but now finds itself in turmoil. Raubenheimer also criticised the outdated municipal website and residents' inability to comment on the 2025/26 draft budget, which must be passed imminently. Paul Coetser warned of collapsing sewage systems—an Umzinyathi District responsibility—calling the leaks a 'doomsday warning' that makes living and doing business in Endumeni unpleasant. Meanwhile, Pam McFadden of Talana Museum cautioned about 17 new mining applications, describing them as the start of fracking that could jeopardise groundwater supplies. Members lamented the absence of Endumeni and Umzinyathi councillors at Chamber meetings. 'The only recourse is to petition higher authorities,' one member declared, urging collective action to pull the municipality back from the brink of total collapse.' HAVE YOUR SAY: Like our Facebook page, follow us on Twitter and Instagram or email us at Add us on WhatsApp 071 277 1394. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
