28/05/2026
MANDENI MAYOR TABLES R622 MILLION BUDGET AMID GROWTH PUSH AND FINANCIAL CONCERNS |||
Mandeni Municipality has unveiled a R622.2 million budget for the 2026/27 financial year, with Mayor Cllr TP Mdlalose committing that the budget will leave no stone unturned to fix Mandeni for the future.
The mayor also pledged improved service delivery, economic growth, and infrastructure development—while acknowledging ongoing financial pressures facing the municipality.
Delivering the State of the Municipality Address at the Mandeni Council Chamber on Thursday, Mdlalose tabled the final reviewed Integrated Development Plan (IDP), organisational structure, and MSCOA budget, describing them as central to tackling poverty, inequality, and service delivery challenges.
Focus on Service Delivery and Economic Growth
The mayor emphasised that the municipality’s development agenda is rooted in “service delivery for all”, with a strong focus on infrastructure expansion, job creation, and improving municipal systems.
Key priorities include:
- Expanding infrastructure in both rural and urban areas
- Strengthening local economic development (LED) initiatives
- Improving financial management and transparency
- Enhancing community participation in decision-making
Mdlalose said Mandeni is positioning itself as an “investment destination of choice”, with tourism, agriculture, manufacturing, and the creative sector identified as key economic drivers.
He added that collaboration with provincial agencies and national programmes such as the Expanded Public Works Programme (EPWP) continues to support job creation efforts.
Budget Highlights and Financial Pressures
The municipality’s Medium-Term Expenditure Framework (MTREF) allocates:
- R504.9 million for operating expenditure
- R117.2 million for capital projects
Despite these allocations, the municipality has tabled a budget deficit of R29.6 million, raising concerns about long-term financial sustainability.
Provincial Treasury has already cautioned the municipality about:
- Declining cash reserves
- The absence of long-term investments
- A weakening cash position
However, the mayor noted that the deficit has been reduced by R11.5 million compared to the previous adjusted budget, and strategies are being implemented to eliminate it over the next three years.
Tariff Increases and Revenue Measures
Residents can expect moderate tariff increases aligned to inflation, including:
- Electricity tariff increases of just over 10%
- Refuse collection tariffs rising by 10.5%
- Other charges increasing in line with 3.4% inflation
To ease the burden on households, the municipality has introduced additional property rate rebates, including exemptions for lower-value homes and incentives for agricultural and industrial sectors to attract investment.
Infrastructure Investment and Community Projects
The capital budget prioritises infrastructure upgrades, with nearly half of capital spending dedicated to renewing ageing assets, which have contributed to service losses.
Major projects include:
- Construction of sports fields across multiple wards
- Rehabilitation of roads such as Quartz Road and Platinum Drive
- Development of market stalls and mini-factories
- Installation of high-mast lighting and pedestrian bridges
Expansion of gravel road networks in rural areas
The municipality also plans to invest in stormwater upgrades, public facilities, and disaster recovery projects, supported by a R20 million disaster grant.
Youth, Women and Social Development
Mdlalose announced funding for social programmes, including:
- Youth development initiatives such as bursaries and driver training
- Women empowerment programmes
- Support for small businesses and cooperatives
- Gender and disability initiatives
Governance, Accountability and Elections
The mayor highlighted efforts to improve governance, including anti-corruption measures, performance monitoring, and enhanced public engagement.
He also reminded council that the current financial year marks the final year before the November 2026 local government elections, cautioning against unsustainable spending decisions that could jeopardise future service delivery.
Outlook
While acknowledging budget constraints, Mdlalose expressed confidence that the approved plan would “change the lives of the people of Mandeni” through improved service delivery, economic opportunities, and infrastructure development.
He called on councillors, officials, and residents to work together to ensure successful implementation of the municipality’s development agenda in the coming year.
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