2026 Overall IDP and Budget – Mangaung

1. ECONOMIC DEVELOPMENT, INVESTMENT CLIMATE AND ECONOMIC GROWTH

The IDP highlights economic stagnation, high unemployment (33.5%), and an unfavourable investment climate as critical risks for Mangaung’s long-term sustainability. With a poverty headcount of 38%, the IDP’s reliance is largely on a conceptual and unfunded project. SAPOA emphasises the need for improved infrastructure, particularly in roads and electricity, recommending that Mangaung prioritise economic infrastructure rehabilitation and revitalisation of existing industrial nodes to stimulate job creation.

2. ROAD INFRASTRUCTURE AND TRANSPORT NETWORK

The IDP highlights a severe infrastructure crisis in Mangaung’s road network, with around 60% (±2 312 km) of the 3 617 km classified as poor or very poor. The depreciated replacement cost of these roads is R2.4 billion, against a full cost of over R8 billion, reflecting years of maintenance under-investment. The annual maintenance needs of R229 million are not met, leading to increased future costs from accelerated road failures. SAPOA recommend adopting a transparent, economically driven road prioritisation framework and urges the municipality to secure funding for preventative maintenance and road rehabilitation.

3. WATER SUPPLY AND WASTEWATER INFRASTRUCTURE

Access to potable water in the municipality is reported at 97%, but a significant sanitation backlog of 28% exists. Most wastewater treatment plants are under strain, particularly the Sterkwater facility, which operates beyond its capacity, posing environmental and health risks. Shortages in bulk sanitation capacity are hindering housing delivery and economic development, exacerbated by high non-revenue water rates linked to ageing infrastructure. SAPOA is recommending prioritisation of upgrades over new developments and exploring private-sector partnerships for infrastructure enhancements.

4. ELECTRICITY SUPPLY AND ENERGY INFRASTRUCTURE

The IDP acknowledges ageing electricity infrastructure in Mangaung, with 95% access, but concerns over reliability, especially for commercial users. CENTLEC has begun feasibility studies for renewable energy but lacks a clear execution timeline. An estimated R3 billion is needed for green energy solutions to enhance energy security. SAPOA is recommending expedited renewable energy initiatives and a time-bound implementation plan to boost confidence and security.

5. URBAN MANAGEMENT, SAFETY, CBD DECLINE AND DILAPIDATED BUILDINGS

The Draft IDP highlights a noticeable decline in the CBDs of Bloemfontein, Thaba Nchu, and Dewetsdorp, marked by deteriorating buildings and reduced economic activity. Abandoned structures increase crime and lower property values, while weak bylaw enforcement hampers revitalisation efforts. SAPOA recommends a CBD revitalisation program focusing on safety, cleaning, by-law enforcement, and building reuse, along with property-based partnerships and incentives to combat urban decay and boost inner-city investment.

6. INFORMAL SETTLEMENTS, HOUSING AND LAND INVASION

The IDP indicates a housing backlog of 77,733 registered beneficiaries, encompassing 59 recognised informal settlements with about 38,512 households, in addition to 29 emerging informal settlements caused by land invasions. Despite some settlement upgrades, bulk infrastructure issues and limited funding hinder progress. SAPOA recommends enhancing anti-land invasion measures, bolstering legal enforcement and servicing critical land parcels to restore confidence in formal housing delivery.

7. LAND USE MANAGEMENT, ILLEGAL LAND USES AND DEVELOPMENT

The IDP identifies illegal land uses, building activities, and slow approvals as strategic risks affecting development and investment. Lengthy approval processes and inconsistent enforcement hinder progress, while under-utilised municipal land leads to lost revenue and urban sprawl. SAPOA recommends that the municipality streamline land-use governance and regularly release serviced land.

8. MUNICIPAL INSTITUTIONAL CAPACITY, HUMAN RESOURCES AND VACANCY RATES

Key challenges include weak administration, high vacancy rates in critical positions, slow corrective actions, and technological failures, all identified as major risks in the Strategic Risk Register. The municipality’s 2024/25 Audit Action Plan reveals that over 64% of identified audit matters have not started, indicating inadequate management capacity. SAPOA recommends advocating for a focused skills and vacancy plan, reducing acting positions, and implementing key management systems to ensure IDP success.

9. COMPLIANCE AND ALIGNMENT OF THE IDP WITH THE SPATIAL DEVELOPMENT FRAMEWORK (SDF)

There are significant gaps between spatial policy intent and implementation, risking land-use efficiency and sustainable urban form. Key issues include entrenched spatial inefficiencies, delays in housing projects due to inadequate infrastructure, and slow enforcement against illegal land uses. The IDP highlights that coordination between the IDP and SDF is crucial, as current misalignment can worsen spatial patterns and deter investment. SAPOA recommends enhancing operational alignment by spatially coordinating infrastructure investment, housing delivery, and economic development.

1. WATER SUPPLY TARIFFS

The Draft Budget proposes a 14.40% increase in water supply tariffs, significantly outpacing CPI and general inflation. This rise is particularly troubling amid high unemployment and decreasing disposable income, imposing financial strain on households and businesses. SAPOA recommends a reconsideration of the increase, favouring a phased adjustment in line with CPI.

2. REFUSE REMOVAL/SOLID WASTE REMOVAL

The proposed 3.7% increase in refuse removal tariffs aligns with CPI and is seen as a manageable adjustment amid economic pressures. However, SAPOA’s main concern is the shift from a fixed charge for non-residential properties to a valuation-based model. SAPOA suggests maintaining a consumption-based tariff structure and recommends stakeholder engagement to ensure fairness and practicality in the tariff policy.

3. SEWERAGE AND SANITATION

The Draft Budget proposes no increase in sewerage and sanitation tariffs for the 2026/27 financial year, a decision supported by SAPOA, as it keeps charges below CPI in real terms. Maintaining current tariffs limits cost escalation for property owners. SAPOA emphasises that this decision should not delay necessary investments in wastewater infrastructure and recommends improved external funding to address capacity expansion.

4. PROPERTY RATES

The Draft Budget indicates a 5% reduction in property rates, which SAPOA views as a significant and positive adjustment, particularly as it is below the CPI. SAPOA highlights the need to stabilise the tax burden amid affordability concerns in a fragile property market, urging for transparent communication regarding individual valuation impacts.

5. ELECTRICITY TARIFFS

The Draft Budget proposes a 9.90% increase in electricity tariffs, exceeding the NERSA guideline of 9.01%. This increase raises concerns for businesses, particularly in the commercial and industrial sectors, as it directly increases operating costs and affects tenant viability. SAPOA recommend implementing energy diversification and cost containment measures to mitigate future tariff pressures.