Overall IDP and Budget – 2026

The following section provides a brief overview of the comments, inputs and suggestions made on the IDP and Budget of the Buffalo City municipality for the 2026/27 review period.

1. ECONOMIC DEVELOPMENT AND SOCIO-ECONOMIC CHALLENGES

The municipality has experienced an increase in poverty levels, which has risen from 55.5% in 2014 to 69.6% by 2024, affecting over 600,000 residents. High unemployment, especially in disadvantaged areas like Mdantsane and Chalumna, exceeds 40%, with more than 55% of households relying on social grants. The IDP lacks a cohesive economic strategy that integrates infrastructure, planning and sector priorities, limiting the potential of key assets like the East London Industrial Development Zone. Service delivery failures and urban management issues exacerbate the investment climate, resulting in declining property demand and consumer spending in retail, particularly in low-income areas. A lack of measurable economic development programmes reduces the IDP’s effectiveness, making it difficult to gauge the success of interventions and resource allocation. SAPOA recommends targeted development interventions, investment incentives, a PPP platform and an integrated economic strategy linking planning and sector growth.

2. INFRASTRUCTURE BACKLOGS AND SERVICE DELIVERY FAILURES

The services backlog s and failures create significant challenges for economic performance, investor confidence, and property sector sustainability. The IDP identifies road infrastructure as the top concern affecting 39 wards, with deteriorating conditions leading to increased logistics costs and reduced connectivity, particularly in peri-urban areas. Additionally, challenges in water and sanitation provision, pollution in river systems and electricity losses further undermine service delivery. The IDP lacks clearly defined infrastructure upgrade projects, hindering effective backlog management. SAPOA recommend prioritising the infrastructure investment plan, implementing maintenance programmes and strengthening asset protection against vandalism.

3. HOUSING. INFORMAL SETTLEMENTS AND LAND USE CHALLENGES

The municipality struggles with land invasions and unregulated growth in areas such as Mdantsane and Qonce, straining infrastructure and undermining urban development efforts. This slow progress in formal housing delivery results in inefficient, reactive development patterns. From a property market viewpoint, issues around land availability and zoning create uncertainty, resulting in risks for long-term investments. To address these challenges, SAPOA recommends expediting the release of serviced land, enhancing informal settlement programmes, and boosting intergovernmental coordination to improve service delivery in human settlements.

4. URBAN MANAGEMENT, SAFETY AND CBD DECLINE

Urban management in the municipality faces significant challenges, notably crime, deteriorating infrastructure and weak regulatory enforcement. The IDP emphasises rising contact crimes, particularly violent offences in key areas like Quigney and Southernwood, adversely affecting the urban economy. Poor urban management practices contribute to visible decay, prompting businesses to relocate, which increases vacancies. Despite recognising these issues, there is a lack of structured interventions to reverse urban decline. SAPOA recommends establishing CID’s, strengthening law enforcement and better coordination among municipal departments.

5. INSTITUTIONAL CAPACITY AND GOVERNANCE CONSTRAINTS

The IDP indicates significant vacancy rates, especially in technical roles, which limit infrastructure planning and implementation. Issues related to financial management and oversight further weaken governance. These problems lead to project delays and reduced stakeholder confidence. Recommendations from SAPOA include prioritising critical vacancies, improving coordination and ensuring alignment between capacity and development targets.

6. FINANCIAL SUSTAINABILITY AND REVENUE WEAKNESS

Rising operational costs restrict funds for infrastructure, while tariff hikes burden consumers and businesses. High outstanding debts hinder stable revenue streams, impacting infrastructure funding and external financing access. The IDP review reveals a lack of a comprehensive financial sustainability strategy, which limits long-term development support. From the property sector’s view, financial instability affects tariff predictability and service reliability, influencing investment decisions. Recommendations from SAPOA include enhancing revenue collection, reducing outstanding debt, and diversifying revenue sources.

7. INFRASTRUCTURE MAINTENANCE AND ASSET MANAGEMENT

The ongoing deterioration of the municipality’s infrastructure, exacerbated by inadequate maintenance and asset management, leads to frequent service disruptions in water, sanitation, and electricity. Ageing infrastructure, vandalism, and insufficient maintenance funding contribute to issues like water leaks, sewer overflows, and power outages, negatively affecting residents and businesses. The IDP reveals weaknesses in asset management systems, including poor asset registers and lifecycle planning, hindering effective resource allocation and infrastructure renewal. A concerning trend is the prioritisation of new infrastructure development over maintenance, resulting in a backlog of deteriorating assets and a reactive approach to maintenance. For property owners and investors, this unreliability increases operational risks and diminishes the municipality’s appeal as an investment destination. Recommendations include developing a comprehensive maintenance strategy, securing funding for repairs, adopting lifecycle asset management, implementing predictive maintenance, and enhancing security to combat vandalism.

8. ACCESSIBILITY OF THE DRAFT IDP DOCUMENT

Access was only achieved through direct communication with the Municipality. This lack of accessibility may hinder stakeholder engagement, as the public may be unaware of the draft IDP’s availability during the participation period. Recommendations include improving the prominence and searchability of documents on the website, introducing standardised access protocols, enhancing communication with stakeholders and ensuring compliance with transparency legislation.

1. PROPERTY RATES

The Municipality’s proposed 2% increase in property rates for the 2026/2027 financial year is conservative compared to the National Treasury’s CPI benchmark of 3.7%. While it offers relief for households and landlords amid income growth constraints, it also reflects potential revenue collection challenges. The Municipality faces financial pressures that necessitate careful consideration of the sustainability of such increases. Recommendations from SAPOA include improving rate revenue management, enhancing billing accuracy, and strengthening revenue collection mechanisms, while expanding the rate base through formal developments instead of tariff hikes.

2. ELECTRICITY TARIFF

The proposed 11.1% electricity tariff increase for the 2026/2027 financial year exceeds both the CPI benchmark of 3.7% and the NERSA guideline of 9.01%, raising concerns about affordability amid high electricity distribution losses, projected at 27.5%. These losses stem from both technical issues, like aging infrastructure, and non-technical factors, including theft and billing inaccuracies. Despite the Municipality’s initiatives such as network upgrades and revenue protection programs, significant inefficiencies remain unmanageable under current tariff structures, preventing recovery of losses amounting to approximately R547 million, as mandated by NERSA. The tariff hike disproportionately affects lower-income households and pressures businesses with rising operational costs. Recommendations include aligning tariff increases with NERSA guidelines, aggressively reducing losses, enhancing smart metering and revenue protection, and implementing targeted support measures for low-income households.

3. WATER TARIFF

The proposed 8.33% water tariff increase for the 2026/2027 financial year exceeds the CPI benchmark of 3.7%, representing a significant burden for consumers. This increase is partially due to a 5.33% rise in bulk water costs but suggests additional inefficiencies in the system. A major concern is the Municipality’s high 36% Non-Revenue Water (NRW) level, attributed to leaks, illegal connections, and metering issues, leading to financial strain on consumers, especially low-income households. The increase affects multi-residential and commercial properties, raising utility costs in a struggling rental market. Recommendations from SAPOA include aggressively reducing NRW, ensuring tariff increases align with actual costs, improving metering and billing accuracy, and providing targeted relief for vulnerable households.

4. SANITATION TARIFF

The proposed 4.7% increase in sanitation tariffs surpasses the CPI benchmark, indicating added financial pressure on consumers amid rising costs across services. While not as severe as increases for water or electricity, there is a necessity for investment in sanitation infrastructure due to wastewater treatment capacity constraints and pollution risks. The SAPOA recommends linking tariff increases to measurable improvements in sanitation services, enhancing wastewater treatment efficiency, ensuring transparent revenue reporting, exploring cost optimisation, and protecting low-income households through subsidies and equitable tariffs.

5. REFUSE REMOVAL

The refuse removal tariff is increasing by 4.7%, which exceeds the CPI benchmark, adding financial pressure on households and businesses. While the increase is moderate, its cumulative effect, combined with other service increases, significantly impacts affordability. The Municipality is reforming solid waste trading services to enhance financial sustainability and operational efficiency, but these reforms are ongoing, raising questions about the justification for immediate tariff hikes without improved service quality. Recommendations from SAPOA include tying tariff increases to enhanced service delivery, expediting the Solid Waste Performance Improvement Action Plan, improving waste management efficiency, implementing cost recovery for high-waste generators, and increasing transparency in waste management spending.

6. BUDGET SUSTAINABILITY, FINANCIAL MANAGEMENT PRESSURES AND INFRASTRUCTURE INVESTMENT RISKS

The Draft 2026/2027 Medium-Term Revenue and Expenditure Framework (MTREF) of Buffalo City Metropolitan Municipality reveals significant challenges in balancing service delivery demands with financial constraints. Despite nominal alignment between operating revenue and expenditure, structural issues threaten long-term fiscal sustainability and infrastructure development. Notable is an 8.63% decline in capital expenditure, exacerbating existing infrastructure backlogs and undermining the municipality’s ability to grow and maintain critical services. Maintenance expenditure is critically low at about 4% of total operating costs, under the recommended 8-10%, which accelerates infrastructure deterioration. Coupled with a projected revenue collection rate of 77.25%, these factors strain cash flow and necessitate tariff increases, highlighting weaknesses in revenue management. Rising operational costs, especially in bulk purchases and employee expenditures, further constrict financial capacity for infrastructure investment. A reliance on tariff-led models to ensure financial sustainability amidst service delivery inefficiencies presents additional risks. High unemployment and indebtedness compound vulnerabilities in consumer payment capabilities, increasing fiscal uncertainty. This multifaceted predicament indicates a structural mismatch in revenue generation and expenditure priorities, raising concerns for the property sector regarding operational costs and service reliability. Recommendations from SAPOA include prioritising capital investment, increasing maintenance expenditure, improving revenue collection systems, and reducing reliance on tariff hikes through operational efficiencies. Long-term financial strategies, transparency enhancements, and external funding collaborations are advised to improve the municipality’s infrastructure and service delivery framework, ensuring sustainable investment practices.

1. UNEMPLOYMENT AND PRO-POOR PLANNING

SAPOA supports Cape Town’s pro-poor development initiatives aimed at addressing spatial and income inequality. The city’s growing economic sectors, like real estate and retail, provide an opportunity to combat unemployment. Innovative decision-making approaches were recommended to improve operational efficiency and job creation, especially in light of load shedding issues with Eskom. The 2026/27 IDP aligns with the Western Cape Provincial Strategic Plan but raises concerns over the measurability of the load shedding objective. There is a revision in the target for affordable housing development from 14 to 8 land parcels, focusing on existing awarded properties, but slow development progress is noted, highlighting the need for identifying challenges faced by developers. The IDP also aims to reduce the average finalisation time for informal trading permits from 30 to 24 days, supporting business efficiency. However, challenges persist regarding business license renewals under current legislation. Additionally, there are concerns about the extended approval timeframe for development applications, which may delay processes, especially given quicker performance in previous years.

2. COMMERCIAL AND INDUSTRIAL MARKETS

They express concern over the lack of changes in proposed amendments regarding the Urban Development Department’s role in facilitating quicker approval for developments. SAPOA emphasises the need to reduce bureaucratic hurdles in land use to expedite building plan approvals. They also advocate for prioritising medium- to high-density mixed-use developments and better partnerships with the property and finance sectors. Currently, over 50 CIDs exist, with plans to increase this number under the Deputy Mayor’s oversight.

3. ELECTRICITY PROVISION

A key update in the proposed 2026/27 IDP amendments involves aligning with the Western Cape Provincial Strategic Plan (PSP) 2025-2030, leading to a restructuring of focus areas and interventions. Three objectives are now outlined in the basic services priority area: improved access to quality basic services, ending loadshedding in Cape Town over time, and modernised infrastructure for economic growth. This restructuring has resulted in some enablers being reassigned, raising concerns about the diminishing prioritisation of the loadshedding objective. Previous support for affordable electricity initiatives was highlighted, alongside suggested minor grammar refinements for KPIs concerning energy capacity and connections. Additionally, a new KPI on embedded generators was endorsed. However, concerns regarding responses to legislative frameworks on power generation incentives remain unresolved, with requests for further clarity on these issues.

4. TRAFFIC CONGESTION

The proposed amendments reduce the target for scheduled public transport access points from 12 to 0 due to the delay of the MyCiTi Southeast Corridor development until July 2027. Clarity is requested regarding the potential extension of the MyCiTi service to northern suburbs and any established timelines. The removal of scheduled access points from barriers indicates improved readiness for implementation. The City is recognised for addressing system limitations related to public transport access and is encouraged to leverage private sector expertise for practical solutions. Additionally, congestion issues due to increased CBD popularity are noted, with a recommendation to explore a Park and Ride concept for better transport integration.

5. INFORMAL SETTLEMENTS, SERVICE DELIVERY AND HOUSING

The target for taps in informal settlements has increased from 700 to 750, though concerns about achievability due to past inconsistencies are highlighted. The adoption of the NRS 047 benchmark for new electricity connections has been adjusted to 80%, recommended as a minimum standard. New indicators for repairs coverage (3.5%), industrial and commercial metering performance (98%), repayment efficiency (95%), and automated meter reading coverage (73%) are welcomed for enhancing revenue management. Monitoring these targets for continuous improvement is advised. For the percentage metering performance, system limitations affecting data availability are acknowledged, with a recommendation for alternative reporting mechanisms. In housing, the target for land parcels for affordable housing has been revised from 14 to 8, focusing on previously awarded properties. Implementation should be closely monitored, especially since no development has begun on the seven awarded parcels that could yield about 5,000 housing opportunities. Further analysis of challenges faced by private developers is recommended to facilitate land release.

6. DILAPIDATED BUILDINGS

In its previous submission to the City of Cape Town’s IDP, SAPOA raised concerns about the poor condition of properties in the city, stressing the need for urgent upgrades. They urged the City to work with property owners to ensure compliance with City By-Laws and promote improvements. Enhancing these buildings could enhance safety, aesthetic appeal, and economic value, attracting investment and development.

1. ELECTRICITY TARIFF

SAPOA comments on the City’s average electricity tariff increase of 6.67% for the 2026/27 financial year, noting it misleadingly downplays the true impact on non-residential customers, whose service charges rise by about 8.55%. They urge the City to provide clearer details on effective tariff increases and highlight that non-residential customers carry significant cross-subsidisation costs. While electricity revenues exceed bulk purchase costs, the persistent 11.2% distribution losses raise concerns, suggesting a need for targeted reductions. Additionally, SAPOA warns of a potential tariff spiral driven by reduced electricity sales from alternative energy sources. They recommend a balanced tariff structure and support the new Residential Time-of-Use tariff, but advocate for clearer benefits communicated to consumers. Enhanced transparency regarding capital investment outcomes is also emphasised to maintain consumer confidence.

2. PROPERTY RATES

SAPOA announced the completion of General Valuation 2025 (GV2025), which will influence property values starting 1 July 2026, showing an average increase of 16.65%. The City plans to reduce the rate-in-the-Rand by 10.21% to mitigate the impact on ratepayers, particularly in a tough economic climate. However, SAPOA is concerned about the City’s focus on residential properties, which shows that 60% will see stable or reduced rates, while the effects on commercial and industrial properties lack clarity. They suggest that the City provide clearer communication regarding the overall impact of the valuation increases on all property types.

3. WATER AND SANITATION

The allocation of 55% of total infrastructure investment to the Water and Sanitation Directorate emphasises the need for targeted improvements due to persistent water distribution losses of around 30%. Monitoring and evaluation of these investments are critical to achieving tangible results. Concerns are raised over declining compliance with effluent discharge standards, now at 77%, down from 88%, influenced by ageing infrastructure and delays in capacity expansion. SAPOA supports wastewater projects but stresses the need for prioritisation, funding, and timely delivery, along with clear performance targets to restore compliance above 90%. Urgent action is required to address the sustainability of current compliance levels. Proposed tariff increases of 4.5% in 2026/27 and 14% in subsequent years may hinder economic sustainability, necessitating clearer justification linked to specific projects and smoother implementations to alleviate financial impacts on consumers.

4. CITY-WIDE CLEANING TARIFF

The initial 3.75% increase in 2026/27 aligns with inflation; however, the projected increases of 16.96% and 37.31% in subsequent years pose concerns about affordability for property owners and tenants. These steep rises could pressure operating costs, especially for commercial properties reliant on cleaning services. Additionally, the city’s ongoing dependence on supplementary funding from the Rates account indicates that the shift to a cost-reflective tariff is incomplete. Clarity is needed on the long-term funding model and how City-wide cleaning costs will be stabilised in the tariff.

5. OTHER BUDGET MATTERS

The City relies heavily on rates and service charges for its revenue, with electricity contributing 33.5% and property rates 19.8%. Collection rates for water and sanitation, at 92% and 94% respectively, lag behind property rates at 95%, which could lead to revenue shortfalls and pressure on compliant payers. Strengthening collection mechanisms while considering affordability is crucial. SAPOA advocates for directing 73% of the capital program toward infrastructure investment to ensure service delivery and economic growth. They stress aligning tariff increases with service improvements, enhancing transparency in revenue allocation, and improving operational efficiency to maintain financial sustainability. Prioritising predictability in budgeting and engaging the private sector are also emphasised.

1. INFRASTRUCTURE SERVICE DELIVERY AND BACKLOGS

The IDP (2026/2027) for Johannesburg identifies a severe “multi-dimensional crisis,” particularly highlighting infrastructure collapse due to historic underinvestment, with an estimated backlog exceeding R220 billion. The deteriorating conditions of roads, electricity, and water services are leading to widespread service failures and declining citizen satisfaction. Economic impacts include increased operational costs for businesses and reduced investor confidence. Although the Draft IDP plans to allocate up to 80% of capital expenditure for infrastructure renewal, past efforts have been ineffective due to poor implementation. Recommendations include establishing a dedicated budget for maintenance, conducting an infrastructure condition audit, creating a multi-year recovery plan, introducing performance-based contracts, utilising public-private partnerships, and implementing public service delivery dashboards to enhance transparency and accountability.

2. INFORMAL SETTLEMENTS, ECONOMIC STAGNATION AND THE IMPACT ON THE PROPERTY SECTOR

The expansion of informal settlements in Johannesburg is a pressing issue stemming from poverty, economic stagnation, and limited formal housing access, especially in townships. Despite acknowledgement in the Draft IDP 2026/27, economic drivers of informality are inadequately addressed, affecting the built environment and the property market. The growth of informal settlements creates structural problems for property owners and the CoJ revenue base, exacerbating poverty through reliance on unregulated housing. This trend strains municipal infrastructure, increases operational costs, and negatively impacts property values and investor confidence. SAPOA recommends prioritising township economic development, accelerating formal housing delivery, implementing integrated upgrading programs, enhancing infrastructure planning, formalising qualifying informal settlements, enforcing zoning regulations, and improving service reliability. These actions aim to address the cycle of informality and promote long-term growth and stability.

3. FINANCIAL CONSTRAINTS, INFRASTRUCTURE FUNDING LIMITATIONS AND DECLINING SERVICE RELIABILITY

The municipality struggles with service delivery pressures due to declining revenue, rising costs, and growing demand, leading to a cycle of under-maintained infrastructure and service failures. Financial constraints correlate with decreasing service reliability and operational inefficiencies, notably in electricity, water supply, and waste management. Recommendations include enhancing revenue strategies, protecting capital funding for infrastructure, exploring alternative funding sources, ensuring transparency, setting performance standards, adopting preventative maintenance, and improving operational coordination through centralised management systems and private sector partnerships.

4. URBAN DECAY, HIJACKED AND DILAPIDATED BUILDINGS

The issue of hijacked and dilapidated buildings in Johannesburg, especially in the Inner City and key economic areas, is a significant indicator of urban decline, threatening economic viability and safety. While the IDP 2026-27 acknowledges urban regeneration, it lacks focus on combating building hijackings and deterioration. Such buildings, often illegally occupied and in poor condition, lead to municipal revenue loss and increased crime, further deteriorating surrounding infrastructure. Their presence diminishes investor confidence and attracts disinvestment in commercial and residential areas. Socially, these buildings provide unsafe housing for vulnerable populations, highlighting a failure in integrating housing and urban management strategies. Recommendations by SAPOA include establishing a targeted building recovery program, strengthening by-law enforcement, creating public-private partnerships, and enhancing revenue protection measures, aiming for a cohesive response to urban decay and housing needs.

5. CAPITAL DELIVERY, GOVERNANCE, DIGITAL READINESS AND IMPLEMENTATION CAPACITY

The introduction of a project stage-gate process aims to improve readiness for funding allocation but indicates deeper institutional limitations, such as incomplete planning and constrained municipal expertise. Governance issues, including political interference and corruption risks, further complicate project execution, leading to declining citizen satisfaction and eroding stakeholder confidence. While the IDP aspires to a smart city through digital transformation, a lack of necessary data governance and operational capacity hampers effective implementation. Recommendations include enhancing project scoping, strengthening technical capacity, streamlining procurement, and improving governance and service delivery accountability.

6. IMPACT ON INVESTMENT CLIMATE AND PROPERTY MARKET

The deterioration of infrastructure, service inefficiencies, and delays significantly harm the City’s investment climate, undermining economic growth initiatives. Unreliable services elevate operating costs, lower asset values, and create investor uncertainty, compelling businesses to invest in backup systems. This reduces the City’s competitiveness. To address these issues, SAPOA recommends enhancing service reliability in key areas, developing frameworks to facilitate investment, strengthening public-private partnerships, and monitoring investment climate indicators.

1. PROPERTY RATES

The proposed 3.60% increase in property rates is slightly below the projected CPI of 3.7%, demonstrating the municipality’s attempt to mitigate cost burdens for property owners. This moderation benefits both residential households and commercial owners, alleviating some financial pressure in a challenging economic landscape. However, this increase must be viewed alongside cumulative municipal costs such as utilities, which could still strain households. From SAPOA’s perspective, while the restrained increase is commendable, concerns about revenue usage persist. Recommendations include ensuring financial governance, linking rates to tangible service improvements and enforcing accountability to prevent fund misallocation.

2. ELECTRICITY TARIFF

The proposed 8.63% electricity tariff increase in Johannesburg significantly exceeds the CPI benchmark of 3.7%, raising affordability concerns, especially for lower- and middle-income households. Although it is below the NERSA guideline of 9.01%, the increase is critiqued against ongoing inefficiencies in the electricity distribution system, which still experiences over 30% losses. These losses stem from illegal connections and metering inefficiencies, forcing compliant consumers to subsidise these shortcomings through higher tariffs. The situation creates a misalignment between tariff increases and operational performance, exacerbating costs for SAPOA members and diminishing property values. Recommendations include prioritising loss reduction, enforcing against electricity theft, linking tariff hikes to service delivery improvements, and strengthening accountability within City Power.

3. WATER TARIFF

The CoJ’s proposed water tariff increase of 12.50% far exceeds the CPI benchmark of 3.7%, raising affordability concerns, especially among lower-income households where water is essential. The situation is exacerbated by the City’s inefficiencies, with non-revenue water losses exceeding 40%, as noted in the Draft IDP 2026/27. This leakage results from leaks, infrastructure failures, and illegal connections, leading to significant financial losses that ultimately burden compliant consumers with higher tariffs. Consequently, the misalignment between cost recovery and operational efficiency negatively affects property values, rental demand, and business operations. To address these issues, the SAPOA recommends prioritising the reduction of non-revenue water with clear targets, investing in infrastructure, enforcing against illegal connections, reassessing the tariff scale and enhancing transparency.

4. SANITATION TARIFF

The proposed 11% increase in sanitation tariffs significantly exceeds the CPI benchmark of 3.7%, leading to a real cost burden for users. This rise in mandatory sanitation services imposes additional financial strain on lower-income households amid other escalating costs like water and electricity. The cumulative effect could heighten the risk of payment defaults and reduce household affordability. Persistent problems such as sewer blockages undermine the rationale for higher tariffs. Recommendations include reconsidering the tariff scale, ensuring that increased revenue is allocated to infrastructure improvements and improving consumer communication regarding service benefits from the increase.

5. REFUSE REMOVAL

The proposed 6.20% increase in refuse tariffs exceeds the CPI of 3.7% but is less severe than hikes in water and sanitation, making it more manageable for households. However, service quality issues like inconsistent waste collection and illegal dumping raise concerns about justifying the increase. While the hike is smaller than others, it adds to cumulative costs for low-income households. Recommendations include enhancing service reliability from Pikitup, enforcing waste management strategies and improving operational efficiency.

1. INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY ACCELERATION

The City aims to enhance electricity supply and reliability through its Electricity Turnaround Strategy, focusing on reducing losses, combating theft, investing in infrastructure, and exploring partnerships for local power generation. Significant investments in substations and maintenance of street lighting are planned, while addressing illegal connections and rolling out prepaid meters are prioritised to decrease losses. The targeted increase in household electricity access from 85.13% to 87.7% by 2026/27 is deemed insufficient by SAPOA, which also questions the minimal improvement in electricity loss targets. For water and sanitation, initiatives include upgrading wastewater treatment facilities, reducing leaks, and improving compliance with standards. However, targets for non-revenue water and wastewater compliance are criticised for their lack of impact. SAPOA calls for enhanced private sector involvement to improve the municipal water infrastructure. The City’s transport strategy focuses on addressing maintenance backlogs and enhancing the Tshwane Bus Service, but faces criticism for a low target of only 10 km of new road and drainage construction, indicating possible funding issues. Lastly, informal settlement upgrades are planned, with over 200 settlements identified, but concerns arise regarding the capacity to deliver meaningful improvements effectively and urgently.

2. ECONOMIC REVITALISATION AND INVESTMENT ATTRACTION

It seeks to improve the business climate by minimising bureaucracy, freeing municipal land for development, and expanding Special Economic Zones to boost investment and job creation. Additionally, the City intends to revitalise the CBD, support informal traders, and improve public spaces to foster tourism and economic activity. While SAPOA views the strategy as well-focused on essential assets, its success hinges on addressing infrastructure issues such as unreliable electricity, inadequate roads, and deficient water and sanitation systems, which hinder investment attraction.

3. SAFE AND CLEAN CITY

This initiative aims to enhance inner-city safety through expanded TMPD patrols, surveillance systems, strengthened by-law enforcement, and police garrisons. Key efforts include improving waste management, maintaining public spaces, and reclaiming hijacked buildings. The 2026/27 plan emphasises public confidence in policing, resource allocation and stronger community involvement. Priorities involve tackling infrastructure crime, enhancing by-law policing, and addressing substance abuse, supported by partnerships with SAPS and other stakeholders. A focus on community participation and social crime prevention is essential for long-term safety. However, the success of these initiatives relies on effective implementation, rapid response and improved safety perceptions.

4. CATALYTIC PROJECTS

Concerns are raised regarding catalytic projects in the IDP due to unclear start dates and many being at the feasibility stage, which hampers their credibility and assessment of impact. There is a pressing need for defined timelines, implementation readiness, and prioritisation to facilitate the transition from planning to actual delivery.

1. SUMMARY OF MAJOR TARIFFS

Water +10%, electricity +8.76-9.01%, sewer +5%, refuse +4.1%; property rates +5 %. Water and electricity hikes are triple inflation, burdening lower‑income households already pressured by Rand Water and Eskom pass‑through costs.

SAPOA notes the risk of reduced payment compliance and urges phased increases or targeted relief for vulnerable users.

2. FINANCIAL STABILITY AND REVENUE PROTECTION

The R1.7 billion allocation for finance charges reflects strain on the City’s finances, efforts to reduce reliance on contracted services are undermined by a 21% cut in machinery and equipment investment. Additionally, the R264.1 million for water tankers indicates dependence on temporary solutions, with insufficient investment in water purification infrastructure pointing to a short-term focus. While revenue management aims to enhance collection rates as per National Treasury guidelines, current targets (84% for water and sanitation, 93% for electricity, and 82% for property rates) are low and should be strengthened to safeguard financial stability and infrastructure investment.

3. EXPENDITURE AND REVENUE MANAGEMENT

The City should enhance transparency by regularly reporting unauthorised and wasteful expenditures to restore public trust. The reported R1.4 billion surplus requires scrutiny for alignment with budgeting assumptions and should be traceable to actual funds, ensuring proper allocation to capital projects. Recommendations include improving financial reporting, reviewing surplus validity and strengthening oversight mechanisms to reduce financial leakages.

1. ECONOMIC DEVELOPMENT AND GROWTH

The need for economic development and investment attraction, while facing operational and infrastructural challenges. Key issues include a sinkhole on Rondebult Road impacting local businesses, with remediation costs estimated at R200 million; a recommendation for the city to establish its own asphalt plant to address road maintenance delays; and calls for increased investment in urban centres to combat sprawl and deteriorating environments.

2. SAFETY AND SECURITY

The IDP highlights ongoing crime concerns in the municipality, citing a 12.7% increase in unreported crimes. The survey indicates a rising crime rate, emphasising safety issues, though findings primarily rely on perception-based data rather than empirical statistics. SAPOA recommends incorporating actual crime data and spatial analysis into the IDP to improve understanding of crime dynamics, thus enabling the development of targeted interventions.

3. INFRASTRUCTURE SERVICES

Challenges in water and electricity supply affect operational stability. Water outages hinder business operations, attributed to rising demand and ageing infrastructure. The city is seeking funding for improvements, with R24 billion allocated for water and wastewater projects. Greater transparency in reporting funding allocations and operational expenditures for maintenance is needed. Electricity supply reliability remains a challenge, with frequent outages due to ageing infrastructure, theft, and vandalism. The city has implemented response teams to address issues, which should be enhanced for better network stability.

4. SUMMARY OF MAJOR TARIFFS

Water +14%, sewer +8.35%, electricity +8.76-9.01% far exceed CPI and risk affordability; refuse +6 %, property rates +3.7%. SAPOA seeks impact analyses and questions long-term revenue sufficiency given the zero-rate increase.

1. FINANCIAL STABILITY AND REVENUE PROTECTION

The ambitious target of a 90% collection rate is essential for the financial sustainability of the 2027/27 MTREF. To improve revenue collection, the effective implementation of the Revenue Enhancement Strategy is crucial, which includes accelerated billing for unregistered properties and improved data integrity to lessen disputes. Ongoing issues like billing inaccuracies and delays need resolution to maintain confidence, particularly in the commercial sector, along with improved administrative efficiency and transparency to avoid unfair burdens on compliant ratepayers.

2. TARIFF ADJUSTMENTS AND AFFORDABILITY

Proposed hikes of water +14%, sanitation +8.35%, electricity + 8.76-9.01%, and refuse +6% exceed CPI and will strain households and businesses amid % GDP growth and high unemployment. Increasing property rates at 3.7% offers a balancing measure for future revenue capacity. SAPOA greater transparency, especially for commercial users facing compounded cost pressures.

3. EXPENDITURE MANAGEMENT AND COST DRIVERS

Clarity is needed on the factors driving employee cost increases, particularly given financial constraints and the city’s need for expenditure discipline. Recommendations for the city include strengthening procurement oversight, reducing unnecessary spending and aligning expenditure with core service priorities. Additionally, outsourced services represent 15% of the total operation budget, with a suggestion to limit costs related to road infrastructure maintenance.

4. INFRASTRUCTURE INVESTMENT AND ECONOMIC GROWTH

The MTREF indicates that the city will refrain from borrowing in the 2026/27 financial year, which may hinder infrastructure rollout speed and scale. The capital budget depends on conditional grants and own revenue, potentially delaying infrastructure delivery amid existing backlogs and growth pressures.

1. ECONOMIC DECLINE, SMME PRESSURE AND UNEQUAL INVESTMENT

The municipality is experiencing significant economic decline characterised by low GDP growth, high unemployment, and job losses, resulting in diminished economic confidence and a shrinking tax base. To reverse this trend, the city should implement clear economic recovery strategies focused on investment attraction and employment creation. Simultaneously SMMEs face operational pressures, often merely covering municipal costs, which hinders entrepreneurship and job creation. To enhance inclusive growth and reduce disparities, the municipality must prioritise balanced investment across all regions, focusing on local economic zones and underdeveloped areas.

2. INFRASTRUCTURE INVESTMENT AND SERVICE DELIVERY RELIABILITY

Infrastructure investment is crucial, with current capital expenditure at 8% falling short of the recommended 10%-13% benchmark. Service delivery failures, such as inadequate stormwater systems and unstable electricity, negatively affect residents, businesses and tourism. Strengthening preventative maintenance, accountability, and operational budgets could enhance reliability. The housing backlog of 474,000 units needs updated metrics to better assess progress, with recent deliveries reported at 205,000 homes and 23,000 rental units transferred.

3. TOURISM COMPETITIVENES AND TRANSPORT LOGISTICS DEVELOPMENT

Tourism is a crucial economic driver for the municipality, yet challenges like declining beach quality, weak infrastructure, and insufficient investment are hindering Durban’s competitiveness against cities like Cape Town. While Durban’s location as a port city offers strategic advantages, inefficiencies in rail systems and transport integration limit its logistics potential. Developing a coherent transport and logistics strategy with better coordination and investment could elevate economic productivity and competitiveness.

4. GOVERNANCE, ICT INNOVATION AND COMMUNITY STABILITY

Strong governance reforms, particularly in procurement and financial accountability, should be prioritiSed in the IDP to reinvest savings into infrastructure. Community stability is threatened by issues like crime and poor service delivery, negatively impacting property values and investment attraction. To foster a stable environment, the IDP should emphasise inclusive planning, stronger law enforcement, and improved services in underserved communities, which will enhance economic resilience and sustainability.

1. HEADLINE TARIFF HIKES VS INFLATION

• Water +15% (domestic) / +16% (business)
• Sanitation +13% (domestic) / +14% (businesses
• Refuse +13%
• Electricity +10.5%

Additionally, concerns about property rates highlight their disproportionate burden on owners and potential deterrence to investment, with rates in eThekwini compared unfavourably to neighbours like KwaDukuza. A review of the rates policy is suggested to enhance investment incentives and economic growth.

2. BUDGET AND REVENUE COLLECTION

While tariff increases and revenue recovery are being prioritised, there’s a need to reduce financial leakages and enhance expenditure discipline. Effective financial management necessitates not just improved revenue collection but also better spending controls. Recommendations include clearer reporting on UIFW trends, reductions in expenditure, and specific actions to boost financial accountability. Transparency in procurement and governance reforms is essential to ensure efficient resource use and enhance service delivery.

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.

We are concerned that the IDP does not adequately reflect updated information from previous years. Significant portions of the document appear unchanged, with limited evidence of current data, revised analysis, or incorporation of recent developments. This lack of meaningful updates raises concerns regarding the document’s relevance, accuracy, and its effectiveness as a planning and decision-making tool.

1. HOUSING BACKLOG AND NEEDS ASSESSMENT

SAPOA welcomes the recognition of housing as a priority but notes that the housing backlog figure of 30 326. An updated, comprehensive housing demand assessment is urgently recommended. Community priorities such as backlog reduction, replacement of dilapidated structures, and title deed finalisation should be supported by clear implementation plans, measurable targets, and adequate funding.

2. STUDENT HOUSING

Rising student enrolment is creating acute accommodation demand, driving informal residential conversions that strain surrounding neighbourhoods and municipal infrastructure. Inadequate roads, water, sanitation, and public transport are further constraining university growth and deterring private investment. Infrastructure investment around the University of Mpumalanga should be prioritised and reflected in the IDP to unlock student housing delivery and support broader economic development.

3. LAND INVASIONS, ILLEGAL LAND USES, AND LAND USE PLANNING

Land invasions remain a serious concern, particularly in communal areas where land is illegally sold, often through forged documentation. The IDP lacks sufficient detail on the extent of the problem and the effectiveness of current interventions. Updated, spatially referenced reporting on invasion cases, affected areas, and enforcement outcomes is recommended.

Regarding Rocky Drift Extension 38, several inaccuracies in the IDP are noted, including incorrect references to industrial townships and an unapproved EIA. The land swap initiative remains unresolved and the IDP should accurately reflect current planning status, prioritise Rocky Drift Extension 44, and allocate resources to expedite development.

4. ECONOMIC DEVELOPMENT AND GROWTH

Youth unemployment rising from 37.1% in 2019 to 44.9% in 2024 underscores the urgent need for targeted economic development beyond short-term programmes like EPWP. Crime remains a deterrent to investment, with Mbombela ranking 10th nationally for serious crimes, despite a 14.9% improvement since 2018/19.

SAPOA recommends prioritising CID implementation, maintaining public infrastructure in key economic nodes, expanding business support facilities, and improving access to SMME support to create a safer, investment-attractive environment that drives sustainable job creation.

5. INFRASTRUCTURE SERVICES

Water access remains stagnant at 74.4% despite ongoing investment, with 55,075 households still unserved. Transparent reporting on actual water losses is needed, and the overall Blue Drop score decline from 88.9% to 69.3% requires attention. Electricity distribution losses of 26.24% are deeply concerning, with bulk purchases projected at R1.53 billion for 2026/27. Refuse collection in rural areas has shown negligible improvement, and EPWP reliance is not sustainable. The road infrastructure backlog of 79.1% requires a comprehensive master plan prioritising economic corridors and underserved communities.

6. SPATIAL DEVELOPMENT FRAMEWORK

The IDP’s continued reliance on the outdated 2018/19 SDF fails to reflect current population growth, settlement patterns, and infrastructure demands. SAPOA recommends prioritising the SDF review and ensuring the revised framework is properly aligned with the IDP. Without updated spatial information, planning effectiveness and the Municipality’s ability to respond to development challenges and attract investment will remain compromised.

7. MUNICIPAL CAPACITY AND VACANCY RATES

With 3 351 of 5 203 positions vacant, a 64.4% vacancy rate, and only 465 funded for filling, the Municipality faces a critical capacity constraint. The 2,886 unfunded vacancies raise serious concerns about institutional capacity and the ability to deliver services and development priorities effectively.

1. SUMMARY OF MAJOR TARIFFS

Proposed 2026/27 tariff increases include property rates, water, refuse, and sanitation at 6%; electricity at 10%; and Semcorp/Silulumanzi at 9.9%, with an overall household impact of 8.4%. The 10% electricity increase is driven by Eskom’s 9.01% bulk tariff rise. Both water and refuse services are under-recovering costs, and a phased approach toward full cost recovery is recommended, alongside a cash-backed reserve for future landfill rehabilitation.

2. REVENUE COLLECTION AND DEBT MANAGEMENT

The projected 95% collection rate is unrealistic given the historical performance of 88%–92%, risking inflated revenue projections and cash flow shortfalls. SAPOA recommends aligning assumptions with actual performance and providing a credible improvement pathway with specific interventions. A detailed debt recovery strategy addressing billing accuracy, credit control, and low-payment areas is needed, alongside greater transparency on UIFW expenditure and progress on corrective actions.

3. REBATES AND RATES POLICY

The proposed 10% rates rebate for CID properties is welcomed, but a higher rebate would provide a stronger incentive for property owners to establish and sustain these initiatives. SAPOA recommends a phased increase in the rebate, aligned with broader investment promotion and urban regeneration objectives.

1. ECONOMIC DEVELOPMENT, EMPLOYMENT, AND LOCAL ECONOMIC GROWTH

With unemployment at 36.7% and youth unemployment at 48.5%, Greater Tzaneen faces severe socioeconomic challenges. Despite recognising these pressures, the IDP lacks concrete implementation mechanisms for economic growth. Key sectors such as citrus, subtropical fruit, and agro-processing are identified but insufficiently supported. SAPOA recommends strengthening the IDP’s economic development component by prioritising infrastructure investment in strategic nodes, supporting agro-processing and tourism, and implementing targeted investment promotion strategies to drive sustainable job creation.

2. INFRASTRUCTURE SERVICES

Infrastructure backlogs remain significant, with only 27.1% of households having piped water inside dwellings, 29% connected to sewerage, and just 25.7% receiving weekly refuse removal. While electricity access is high at 97.4%, reliability remains a concern. Ageing bulk water infrastructure managed by Mopani District Municipality contributes to intermittent supply disruptions. SAPOA recommends stronger emphasis on rehabilitating and expanding bulk water, sanitation, and electricity infrastructure to support investment, economic activity, and improved service delivery.

3. INFORMAL SETTLEMENTS, HOUSING BACKLOGS, AND SERVICE DELIVERY

Population growth from 389 623 in 2011 to 478 254 in 2022 has intensified housing and infrastructure demand. Informal settlement expansion without adequate planning risks future costs through upgrades, relocations, and environmental remediation, while disrupting orderly land use. SAPOA recommends strengthening proactive settlement planning, accelerating serviced stand delivery, and improving coordination with provincial housing departments to manage growth and address housing backlogs sustainably.

4. LAND USE MANAGEMENT, LAND INVASION, AND ILLEGAL LAND USES

Uncontrolled land invasion and illegal land use undermine spatial planning, depress property values, and deter investment. SAPOA recommends strengthening land use enforcement, improving monitoring of illegal occupation, and implementing proactive land release strategies. Better coordination between municipal planning, traditional authorities, and provincial structures is essential.

5. ROAD INFRASTRUCTURE, TRANSPORT, AND ACCESSIBILITY

Road infrastructure is critical to Tzaneen’s agricultural economy and rural connectivity, with key routes linking Tzaneen, Polokwane, and Phalaborwa. Deteriorating roads increase transport costs for citrus, avocado, and forestry producers, reduce access to services, and discourage investment. SAPOA recommends prioritising road maintenance and rehabilitation along strategic economic corridors and urban areas, supported by stronger preventative maintenance programmes and improved coordination with provincial road authorities.

6. URBAN MANAGEMENT, CBD REVITALISATION, AND PROPERTY MARKET STABILITY

Weak urban management in Tzaneen’s CBD risks declining property values, illegal trading, and reduced investor confidence. SAPOA recommends strengthening urban management through improved by-law enforcement, public infrastructure maintenance, waste management, and collaboration with property owners to support revitalisation and sustain long-term economic activity.

7. SAFETY, SECURITY, AND INVESTMENT

Crime, vandalism, and infrastructure theft raise operational costs and deter investment. SAPOA recommends strengthening safety partnerships between the municipality, SAPS, property owners, and community policing forums, alongside improved public lighting and by-law enforcement to create safer, more attractive urban environments.

8. INFRASTRUCTURE MAINTENANCE AND EXPENDITURE PRIORITISATION

Preventative infrastructure maintenance is insufficiently prioritised relative to the scale of networks the municipality manages. SAPOA recommends ensuring adequate operational funding for maintenance alongside capital expenditure, while guarding against employee and administrative costs crowding out essential infrastructure investment.

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.

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.

1. SPATIAL PLANNING AND LAND USE MANAGEMENT

The Polokwane Land Use Scheme and SPLUMA-compliant SDF are acknowledged, as is the AFLA digital portal, a meaningful improvement in planning process efficiency. However, illegal land uses, unauthorised developments, and zoning non-compliance persist, particularly in Seshego, Mankweng, and commercial precincts, undermining investor confidence and spatial planning integrity.

Delays in rezoning and subdivision approvals continue to hinder development. SAPOA recommends dedicated enforcement teams, GIS-based spatial monitoring, defined turnaround times for rezoning applications, and a measurable land use enforcement framework.

2. WATER PROVISION AND INFRASTRUCTURE

Water provision in Polokwane remains a major concern, with a current shortfall of 20 million litres per day (173Ml demand vs 153Ml supply), worsened by rapid population growth. This presents a significant risk to business operations, investor confidence, and property sustainability.

While key infrastructure projects are identified (including boreholes, pipeline upgrades, and scheme refurbishments), the IDP lacks clear timelines, targets, and progress updates.

Severe metering failures are also noted, with 15,063 of 26,264 prepaid meters non-functional, undermining billing and revenue collection. In addition, Blue Drop performance has declined significantly from 95% (2014) to 55.45% (2023).

SAPOA recommends prioritising meter repairs in commercial areas, implementing a water reliability plan for business corridors, improving performance reporting, and conducting a full water recovery audit.

3. ROAD INFRASTRUCTURE QUALITY, MAINTENANCE BACKLOGS, AND URBAN TRAFFIC CONSTRAINTS

The IDP does not adequately reflect the extent of streetlight outages, road quality issues, and maintenance backlogs. High numbers of non-functioning streetlights in key areas raise safety and economic concerns, yet no clear backlog, prioritisation, or repair timelines are provided. Road investments are noted, but limited attention is given to workmanship quality, asset lifespan, and stormwater impacts. The IDP also lacks consideration of alternative models such as CIDs and rate rebates to support urban management. Stronger focus is needed on maintenance, measurable targets, quality assurance, and structured public-private urban management approaches.

Congestion on the R81 and Munnik Road has become a structural challenge linked to rapid development and increased freight and commuter demand. Despite its strategic importance, the IDP does not prioritise these corridors or provide clear short-term interventions. Immediate measures such as traffic signal synchronisation and real-time optimisation are not defined, while long-term solutions like corridor upgrades and alternative routes are insufficiently developed. SAPOA recommends prioritising these roads as congestion hotspots, introducing measurable short-term interventions, and aligning transport planning with spatial and economic growth to support long-term competitiveness.

4. SEWER AND SANITATION SERVICES

The IDP highlights pressure on ageing sewer infrastructure due to urban growth but lacks sufficient urgency, detail, and strategic direction. While interventions such as vacuum trucks and pump station upgrades are noted, there is no clear asset condition assessment or targeted rehabilitation plan, particularly for older commercial areas, leading to operational disruptions and increased costs for landlords.

Although sewer spillages, limited treatment capacity, and maintenance backlogs are acknowledged, key projects such as the new wastewater plant and Seshego upgrades lack clear timelines and progress updates, while no update is provided on the Mankweng plant refurbishment.

The IDP also lacks a structured maintenance and renewal strategy, with no clear funding prioritisation, inspection regime, or emergency response framework. SAPOA recommends a condition assessment for commercial nodes, phased rehabilitation of high-risk areas, and defined response protocols for sanitation failures.

5. TARIFFS, BILLING AND REVENUE

The IDP acknowledges rising financial pressure from bulk service providers such as Eskom and Lepelle Northern Water and proposes cost-reflective tariffs and smart metering to improve efficiency and revenue collection. However, significant concerns remain regarding implementation credibility, particularly for commercial users, due to ongoing billing disputes, meter inaccuracies, and limited transparency on rollout timelines and audit outcomes.

While collection rates have improved from 86% to 89% and own revenue has increased to 59%, these gains do not adequately address structural billing issues, disputed accounts, or a R2.099 billion revenue backlog, largely from non-residential users. There is also no clear support mechanism for businesses experiencing metering faults or billing errors, nor clarity on liability for municipally owned equipment failures.

The IDP further lacks a coordinated infrastructure security strategy to address theft, vandalism, and meter tampering, which continue to undermine revenue protection. Although smart metering is referenced, consumer protection measures, dispute resolution processes, and interim relief mechanisms remain insufficient.

Tariff increases above CPI require stronger justification and transparency, particularly given affordability pressures and weak economic conditions. SAPOA further notes the absence of differentiated tariff models based on sector impact

6. URBAN MANAGEMENT AND INFORMAL ACTIVITY IN COMMERCIAL ZONES

The Draft IDP highlights several urban management challenges in commercial precincts, including informal trading, illegal land use, poor waste management, and weak by-law enforcement. While 1,450 street trading permits have been issued and training provided, enforcement of trading boundaries, hygiene standards, and waste control remains limited, with public health concerns noted near sensitive areas such as hospitals.

Illegal dumping, neglected properties, and unregulated land use continue to undermine urban quality, reduce investment confidence, and contribute to environmental degradation. Stormwater systems are also increasingly affected by waste build-up due to inadequate maintenance and enforcement.

Although the AFLA system has improved planning approvals, compliance enforcement is weak, particularly regarding construction waste and long-term site management. Overall, the IDP lacks a coordinated, enforceable urban management framework.

SAPOA recommends a co-managed precinct model, stronger by-law enforcement, stricter compliance monitoring, integration of urban management tools (including CCTV and cleaning contracts), and improved enforcement against illegal land use and dumping in key commercial areas.

7. LOCAL ECONOMIC DEVELOPMENT AND SECTOR SPECIFIC EMPLOYMENT

The IDP identifies job creation and skills development as key pillars of Polokwane’s LED strategy, supported by initiatives such as informal trading infrastructure, business registration support, and EPWP participation. While these interventions demonstrate intent, the implementation framework remains broad and lacks clear alignment to sector-specific opportunities and labour market demand.

Skills development programmes are largely low-skill and short-term, with limited alignment to growth sectors such as construction, ICT, and renewable energy. EPWP remains a key focus, with 3,972 participants achieved in 2024/25 and a reduced target of 3,039 for 2025/26, but it does not provide long-term employment pathways.

The IDP also lacks structured collaboration with the private sector, TVETs, and universities, and does not include property-sector-specific or industry-linked training pipelines. In addition, there is no robust monitoring framework to assess actual job creation or enterprise growth outcomes.

SAPOA recommends stronger private sector participation in LED planning, alignment of skills development to market demand, inclusion of commercial property incentives, and introduction of measurable employment impact indicators.

1. SPATIAL PLANNING AND LAND USE MANAGEMENT

The Polokwane Land Use Scheme and SPLUMA-compliant SDF are acknowledged, as is the AFLA digital portal, a meaningful improvement in planning process efficiency. However, illegal land uses, unauthorised developments, and zoning non-compliance persist, particularly in Seshego, Mankweng, and commercial precincts, undermining investor confidence and spatial planning integrity.

Delays in rezoning and subdivision approvals continue to hinder development. SAPOA recommends dedicated enforcement teams, GIS-based spatial monitoring, defined turnaround times for rezoning applications, and a measurable land use enforcement framework.

2. WATER PROVISION AND INFRASTRUCTURE

Water provision in Polokwane remains a major concern, with a current shortfall of 20 million litres per day (173Ml demand vs 153Ml supply), worsened by rapid population growth. This presents a significant risk to business operations, investor confidence, and property sustainability.

While key infrastructure projects are identified (including boreholes, pipeline upgrades, and scheme refurbishments), the IDP lacks clear timelines, targets, and progress updates.

Severe metering failures are also noted, with 15,063 of 26,264 prepaid meters non-functional, undermining billing and revenue collection. In addition, Blue Drop performance has declined significantly from 95% (2014) to 55.45% (2023).

SAPOA recommends prioritising meter repairs in commercial areas, implementing a water reliability plan for business corridors, improving performance reporting, and conducting a full water recovery audit.

3. ROAD INFRASTRUCTURE QUALITY, MAINTENANCE BACKLOGS, AND URBAN TRAFFIC CONSTRAINTS

The IDP does not adequately reflect the extent of streetlight outages, road quality issues, and maintenance backlogs. High numbers of non-functioning streetlights in key areas raise safety and economic concerns, yet no clear backlog, prioritisation, or repair timelines are provided. Road investments are noted, but limited attention is given to workmanship quality, asset lifespan, and stormwater impacts. The IDP also lacks consideration of alternative models such as CIDs and rate rebates to support urban management. Stronger focus is needed on maintenance, measurable targets, quality assurance, and structured public-private urban management approaches.

Congestion on the R81 and Munnik Road has become a structural challenge linked to rapid development and increased freight and commuter demand. Despite its strategic importance, the IDP does not prioritise these corridors or provide clear short-term interventions. Immediate measures such as traffic signal synchronisation and real-time optimisation are not defined, while long-term solutions like corridor upgrades and alternative routes are insufficiently developed. SAPOA recommends prioritising these roads as congestion hotspots, introducing measurable short-term interventions, and aligning transport planning with spatial and economic growth to support long-term competitiveness.

4. SEWER AND SANITATION SERVICES

The IDP highlights pressure on ageing sewer infrastructure due to urban growth but lacks sufficient urgency, detail, and strategic direction. While interventions such as vacuum trucks and pump station upgrades are noted, there is no clear asset condition assessment or targeted rehabilitation plan, particularly for older commercial areas, leading to operational disruptions and increased costs for landlords.

Although sewer spillages, limited treatment capacity, and maintenance backlogs are acknowledged, key projects such as the new wastewater plant and Seshego upgrades lack clear timelines and progress updates, while no update is provided on the Mankweng plant refurbishment.

The IDP also lacks a structured maintenance and renewal strategy, with no clear funding prioritisation, inspection regime, or emergency response framework. SAPOA recommends a condition assessment for commercial nodes, phased rehabilitation of high-risk areas, and defined response protocols for sanitation failures.

5. TARIFFS, BILLING AND REVENUE

The IDP acknowledges rising financial pressure from bulk service providers such as Eskom and Lepelle Northern Water and proposes cost-reflective tariffs and smart metering to improve efficiency and revenue collection. However, significant concerns remain regarding implementation credibility, particularly for commercial users, due to ongoing billing disputes, meter inaccuracies, and limited transparency on rollout timelines and audit outcomes.

While collection rates have improved from 86% to 89% and own revenue has increased to 59%, these gains do not adequately address structural billing issues, disputed accounts, or a R2.099 billion revenue backlog, largely from non-residential users. There is also no clear support mechanism for businesses experiencing metering faults or billing errors, nor clarity on liability for municipally owned equipment failures.

The IDP further lacks a coordinated infrastructure security strategy to address theft, vandalism, and meter tampering, which continue to undermine revenue protection. Although smart metering is referenced, consumer protection measures, dispute resolution processes, and interim relief mechanisms remain insufficient.

Tariff increases above CPI require stronger justification and transparency, particularly given affordability pressures and weak economic conditions. SAPOA further notes the absence of differentiated tariff models based on sector impact

6. URBAN MANAGEMENT AND INFORMAL ACTIVITY IN COMMERCIAL ZONES

The Draft IDP highlights several urban management challenges in commercial precincts, including informal trading, illegal land use, poor waste management, and weak by-law enforcement. While 1,450 street trading permits have been issued and training provided, enforcement of trading boundaries, hygiene standards, and waste control remains limited, with public health concerns noted near sensitive areas such as hospitals.

Illegal dumping, neglected properties, and unregulated land use continue to undermine urban quality, reduce investment confidence, and contribute to environmental degradation. Stormwater systems are also increasingly affected by waste build-up due to inadequate maintenance and enforcement.

Although the AFLA system has improved planning approvals, compliance enforcement is weak, particularly regarding construction waste and long-term site management. Overall, the IDP lacks a coordinated, enforceable urban management framework.

SAPOA recommends a co-managed precinct model, stronger by-law enforcement, stricter compliance monitoring, integration of urban management tools (including CCTV and cleaning contracts), and improved enforcement against illegal land use and dumping in key commercial areas.

7. LOCAL ECONOMIC DEVELOPMENT AND SECTOR SPECIFIC EMPLOYMENT

The IDP identifies job creation and skills development as key pillars of Polokwane’s LED strategy, supported by initiatives such as informal trading infrastructure, business registration support, and EPWP participation. While these interventions demonstrate intent, the implementation framework remains broad and lacks clear alignment to sector-specific opportunities and labour market demand.

Skills development programmes are largely low-skill and short-term, with limited alignment to growth sectors such as construction, ICT, and renewable energy. EPWP remains a key focus, with 3,972 participants achieved in 2024/25 and a reduced target of 3,039 for 2025/26, but it does not provide long-term employment pathways.

The IDP also lacks structured collaboration with the private sector, TVETs, and universities, and does not include property-sector-specific or industry-linked training pipelines. In addition, there is no robust monitoring framework to assess actual job creation or enterprise growth outcomes.

SAPOA recommends stronger private sector participation in LED planning, alignment of skills development to market demand, inclusion of commercial property incentives, and introduction of measurable employment impact indicators.