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Home»FINANCE & BUSINESS»South African Cities Tshwane and Mangaung Face Potential Collapse
FINANCE & BUSINESS

South African Cities Tshwane and Mangaung Face Potential Collapse

Senior EditorBy Senior EditorMay 31, 2025No Comments3 Mins Read
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South African Cities Tshwane and Mangaung Face Potential Collapse
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Highlights

  • Tshwane and Mangaung are experiencing significant challenges that require immediate attention to restore stability and service delivery.
  • A strong focus on accountability, transparency, and integrity within local governance is essential to address and overcome these issues effectively.
  • Collaborative efforts among stakeholders are vital to prevent further decline and create sustainable improvement for urban communities.

South Africa’s Urban Crisis: Tshwane and Mangaung Teeter on the Edge

Alarm bells are ringing across South Africa as two major metropolitan cities, Tshwane and Mangaung, face imminent financial and operational collapse. This alarming revelation comes from Auditor-General Tsakani Maluleke, who has scrutinized these metros’ financial health and their ability to deliver critical services.

A recent Integrated Annual Report for the 2023/24 fiscal year has unveiled stark realities facing South Africa’s eight metropolitan municipalities. These metros, serving nearly half the households in the country, are deemed responsible for more than half of local governmental expenditures. Despite this formidable responsibility, their financial and operational performances have seen a noticeable decline since the 2020/21 fiscal audits.

The core issues identified include poor revenue management and ineffective debt recovery processes. Compounded by inadequate budgeting practices, these factors severely undermine the metros’ ability to function as viable entities. Listed debts and hefty loans further exacerbate their financial woes, painting a bleak picture of their fiscal future.

Infrastructure mismanagement emerges as another significant challenge, with widespread failure to maintain critical assets. Many metros, including Tshwane and Mangaung, have been found wanting in assessing the conditions of roads and key facilities for waste and water management. Alarmingly, some have neglected to formulate maintenance plans or adhere to environmental management legislation, with several operating without valid licenses for vital services like wastewater treatment and landfills.

The Auditor-General’s office has identified 15 material irregularities since 2021, directly linked to poor management of these essential services. The repercussions of such mismanagement are dire, threatening the provision of basic services like water, sanitation, electricity, housing, and road maintenance.

The toll extends beyond immediate service disruptions, as environmental degradation and compromised living conditions become more prevalent. The cost of wasted resources and ineffective management ultimately falls on taxpayers, as depleted funds mean fewer resources are available for essential service delivery.

The culture of poor accountability and transparency further suffocates these municipalities’ operational capabilities. Without credible reporting structures, councils struggle to evaluate performance or implement measures to correct underperformance.

Tshwane and Mangaung’s current trajectory necessitates urgent intervention. Maluleke emphasizes the urgency of cultivating a robust culture of accountability, transparency, and integrity among all stakeholders within the local government framework. Only through a concerted and collaborative effort can these cities hope to avert disaster and reinstate stability and service reliability for South Africa’s urban populace.

Important Stats

  • According to recent reports, Tshwane faces a service delivery backlog of approximately R10 billion, highlighting the severity of its current challenges in providing essential utilities and infrastructure to residents.
  • Mangaung has seen an unemployment rate of over 30%, exacerbating social and economic instability in the area.
  • Auditor-General statistics reveal that only 27% of municipalities in South Africa received clean audits during the latest financial year, underscoring widespread issues with governance and financial management.
  • Urban areas in South Africa collectively face a housing shortfall of around 2.1 million units, putting immense pressure on local governments to meet residents’ basic needs.
  • A study by Statistics South Africa indicates that over 60% of urban households are unhappy with the quality of water provision and refuse collection services, stressing the need for improved service delivery mechanisms.

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