MOSSEL BAY - Mossel Bay Municipality's R2.36 billion budget for the 2025/26 financial year has been adopted by council.
According to Mayor Dirk Kotzé, it is aimed at ensuring continued service delivery, economic resilience and financial sustainability amid South Africa’s ongoing power crisis and economic volatility.
Despite national challenges, including load shedding, inflation and global instability, the municipality maintains a 94% payment rate, a key factor in its ability to continue funding infrastructure and services.
“This budget is a responsible and realistic plan for the sustainable development of Mossel Bay,” said Kotzé during his budget speech on Friday, 30 May.
“We remain committed to maintaining the highest standards of service delivery and will continue to maintain this commitment and continue with effective management to reduce the impact of external pressures on our residents and the municipality.”
The budget includes R1.94 billion for operational spending and R425 million for capital projects, reflecting a strategic focus on both day-to-day service delivery and long-term development.
Largest expense
Electricity remains the municipality’s largest expense, consuming 75% of the operational budget. The burden is largely driven by Eskom’s 12.7% tariff increase and rising diesel costs to keep generators running during blackouts.
To manage growing expenses, average tariffs will rise by 10.1%, adding approximately R323 per month to the average household bill.
Key increases include:
Electricity: +10.81%
Property rates: +13%
Sewerage: +9%
Water: +3%
Refuse removal: +7%
The municipality is expanding its subsidy programme. Households with low incomes, pensioners and people with disabilities may qualify for up to 50% off the cost of municipal services.
The municipality has revised its policy on the income thresholds for which these discounts apply, to ensure broader access to these discounts.
Local economy
Tourism continues to power the local economy.
The municipality’s R2 million annual investment in the IRONMAN 70.3 event has yielded a R50 million return, and more 100 other events were hosted in 2024 alone.
Mossel Bay has been named South Africa’s top festive destination by Lightstone Properties.
Financial sustainability
With only 12.88% of revenue coming from property tax, Mossel Bay was ranked by Ratings Afrika as one of the most financially sustainable municipalities in the country.
Personnel spending is kept at just 25% of the budget, well below the national average of 35%.
The municipality faces a R33.5 million shortfall as electricity sales fail to keep up with Eskom purchase costs.
Technical losses have risen to 17.5%, prompting bulk meter audits and community safety campaigns to address theft and inefficiencies.
‘We bring you the latest Garden Route, Hessequa, Karoo news’
