With its finances significantly strengthened, Mogale City Local Municipality is on a firm path to becoming one of the best-performing municipalities in South Africa. This positive sentiment was echoed by the Gauteng Provincial Legislature’s Portfolio Committee on Cooperative Governance and Traditional Affairs during its oversight visit to the municipality on Thursday, 28 August 2025.
The Committee commended Mogale City for its impressive financial recovery and robust governance structures. In 2025, the municipality achieved a surplus of R245 million while growing its revenue base to R4.57 billion. These achievements reflect prudent financial management and a disciplined approach to governance that is setting Mogale City apart from many of its peers.
A key highlight of this recovery has been the municipality’s success in reducing its debt from R156.3 million to R122.7 million, supported by the Eskom debt relief grant of R216 million. Having received the debt relief write-off for the first cycle of the 36-month period and complying with the second cycle by paying Eskom on time, the municipality is now awaiting National Treasury’s confirmation of the second cycle write-off. In addition, the City’s accounts with both Eskom and Rand Water are now fully up to date, further strengthening its financial standing.
Mogale City has also improved its liquidity position, rising from R149 million to R299 million, while achieving a 90% revenue collection rate. The Committee noted with approval that the municipality is fully utilising its capital budget, directing significant resources towards infrastructure renewal projects to improve service delivery and ensure long-term sustainability.
The City is also actively supporting SMMEs and local businesses by ensuring that payments are made within 30 days. This commitment provides crucial financial certainty, enabling businesses of all sizes to operate efficiently, manage their cash flow effectively, and plan for growth and sustainability. By meeting all it’s payment obligations promptly, the city is helping to strengthen the local economy, foster entrepreneurship, and create a more enabling environment for small and medium enterprises to thrive – a vital GDP and economic growth stimulant.
These achievements highlight a municipality determined to restore public confidence through sound governance, financial discipline, and a clear commitment to service excellence. With its finances now on solid ground and resources being strategically channelled into infrastructure and service delivery, Mogale City is charting a new course of accountability and progress.
With strengthened leadership and responsible governance, the municipality is proving that local governments can overcome challenges and set new benchmarks for performance in South Africa.