Midvaal Local Municipality has achieved a remarkable feat, being named the most financially sustainable municipality in South Africa for an unprecedented third year running. This recognition comes courtesy of Ratings Afrika’s annual Municipal Financial Sustainability Index (MFSI).
Midvaal tied for first place with Mossel Bay Municipality. The index evaluates the financial health of 104 top-performing municipalities and the eight major metros. Midvaal’s score of 74 out of 100 for the 2023 financial year reflects a commendable improvement of two points over the previous year.
Ratings Afrika highlights that only a handful of municipalities nationwide score above 70, with Midvaal being the sole Gauteng representative in this elite group. The other top performers are all situated in the Western Cape: Mossel Bay (74), Saldanha Bay (73), Swellendam (72), and Swartland Municipality (71).
Ratings Afrika, a respected agency specializing in gauging governmental soundness, attributes financial sustainability to factors such as:
- Well-defined long-term financial strategies
- Robust financial policies
- Sound budgetary practices, including self-funded operating and capital budgets
- Stringent financial controls and discipline
- Efficient revenue collection, exceeding 95%
Financial sustainability, as defined by Ratings Afrika, also encompasses a municipality’s capacity to deliver essential services and invest in infrastructure development and maintenance.
“Midvaal Municipality is immensely proud of this recognition, our administration remains firmly committed to upholding sound budgetary practices and implementing rigorous financial controls to ensure continued success,” said Midvaal Executive Mayor, Ald Peter Teixeira.
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