Ratings Afrika recognises Midvaal Local Municipality as most financially sustainable municipality for second consecutive year
Midvaal Local Municipality has been rated as the most financially sustainable municipality for the second year in a row by Ratings Afrika, tying it with Saldanha Bay Local Municipality in the Western Cape with a score of 72 out of 100.
Ratings Afrika specialises in ratings and similar opinions gauging the soundness of governance in companies, state-owned enterprises, municipalities, provinces, and central governments. Ratings Afrika published its annual Municipal Sustainability Index (MFSI) results of 104 municipalities plus the eight metros for the financial year end of 2022.
The financially sustainable municipalities are attributed to:
• sound long-term financial strategies,
• well-entrenched financial policies,
• good budgetary practices – self-funded operating and capital budget,
• strict financial control and discipline,
• and good revenue collection that is close to 96%.
Ratings Afrika painted a bleak picture of the trajectory that many municipalities in South Africa are on, with financial mismanagement and corruption as the biggest contributor.
Despite a negatively broad macroeconomic outlook, Midvaal’s efforts to cushion residents from harsh financial times through equitable rates and tariffs were acknowledged by the rating agency.
“Midvaal Local Municipality will persist in its pursuit of financial excellence for the betterment of our residents,” said Midvaal’s Executive Mayor, Ald Peter Texeira.
