IDP

1. INFRASTRUCTURE SERVICES

Water losses have escalated from 31.5% in 2022/23 to 37.7% in 2024/25, with non-revenue water reaching 57.6%. Making medium-term targets increasingly unachievable. Financial losses amount to R392.56 million, and despite 54,192 leak repairs, losses continue to worsen. Greater private sector involvement and measurable accountability are recommended.

Electricity losses of 26% remain well above the 16% target, with R1.48 billion lost in 2024/25. Meter tampering (22% of households) and illegal connections undermine revenue, while energy sales to large customers decline. Stronger, more targeted intervention is urgently needed.

Waste collection excludes portions of informal settlements, with illegal dumping compounded by equipment shortages and weak facility security. Systemic improvements are required beyond the limited planned upgrades.

Informal settlement numbers exceed the 156 officially recognised, affecting planning accuracy. Capacity constraints continue to limit categorisation and upgrading progress.

2. ECONOMIC DEVELOPMENT AND GROWTH

The IDP identifies economic development as a priority but lacks measurable targets, timelines, and implementation pathways. Infrastructure constraints, particularly water restrictions and electricity instability, remain unresolved, while sectors like tourism and agriculture lack actionable support. Building plan approvals, rezoning, and service connections have no defined turnaround times, and the Investment Incentive Policy is insufficiently articulated. SAPOA recommends clear targets, stronger infrastructure planning, improved development process efficiency, and greater clarity on investment incentives.

3. SAFETY AND SECURITY

Metro Police capacity is insufficient, yet the IDP provides no staffing targets, timelines, or budget commitments for expansion. Crime, vandalism, and inadequate by-law enforcement directly impact property values and investment. Enforceable quarterly enforcement targets are needed. No timelines are provided for completing the Security Master Plan review or expanding CCTV integration with Metro Police operations.

4. SPATIAL PLANNING, LAND USE AND DEVELOPMENT

The absence of a SPLUMA-compliant SDF, with the December 2025 deadline passed and no updated timeframe provided, is a fundamental planning failure creating uncertainty for developers and property owners. Despite the 2023 By-Law, delays in building plan approvals and rezoning persist, with no measurable turnaround targets set. The IDP also remains largely silent on proactive land invasion prevention, despite acknowledging over 164 informal settlements and a categorisation backlog.

Budget

1. SUMMARY OF MAJOR TARIFFS

Proposed 2026/27 increases include property rates at 5.5%, water, sanitation, and refuse at 6.5%, and electricity at 12.8% which is all above inflation. The electricity increase is particularly concerning given high losses, illegal connections, and declining consumption, risking further grid defection and revenue erosion. Water increases are difficult to justify without visible efficiency improvements. SAPOA recommends strengthening cost containment, accelerating loss reduction, and improving transparency on how tariff increases translate into service improvements.

2. GRANT ALLOCATION

The R1.18 billion ISUPG, once-off RBIG, and new UDFG represent significant funding opportunities, though effectiveness depends on implementation capacity and inter-departmental coordination. The RBIG’s discontinuation from 2027/28 raises water security sustainability concerns. The UDFG’s conditions place additional pressure on institutional readiness. SAPOA recommends strengthened oversight, alignment between grant conditions and project execution, and prioritisation of investments supporting long-term operational and financial sustainability.

3. REVENUE COLLECTION AND DEBT MANAGEMENT

The budgeted 76% collection rate against an actual rate closer to 60% raises serious credibility concerns. Arrear debt grew from R18.59 billion to R21.79 billion in just six months, with water, electricity, and rates debt all escalating sharply. Rising tariffs combined with declining collections risk an unsustainable cycle of worsening cash flow and service deterioration. Urgent and aggressive revenue recovery measures, transparent reporting, and strengthened financial accountability are required.