Kaya 959 Reporter
RatingsAfrika’s recent results suggest that six of South Africa’s eight biggest metropolitan municipalities are financially unsustainable and require immediate government intervention.
Only one metro, the Western Cape, is an exception, according to the report: municipalities in the Western Cape are generally financially stable.
Municipalities in the Free State and the North West are in the worst shape.
Kaya Biz with Gugulethu Mfuphi spoke Charl Kocks – Ratings Afrika Principal rating officer to unpack the findings.
LISTEN TO THE FULL CONVERSATION HERE:
Kocks spoke about how dire the situation is becoming in most of these municipalities and suggested intervention be made a priority.
“The metros have unfortunately not performed well, it’s not as if one of them has completely fallen off the cliff, but some of them are sliding that way.”
“When you look at the metros and people who stay close and look from them for services, you look also at the economic activity going on in these metros you would seriously be thinking they would be better placed but unfortunately, they are not. “
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Kocks says the group annually monitors and examines the financial viability of about 100 local governments and eight metropolitan governments.
According to the finding of this report, municipalities are unable to pay service providers and offer services to citizens due to a lack of funds.
All 108 municipalities evaluated by Ratings Afrika have a total of R23 billion in revenue and an R54 billion deficit in the year to June 2021.
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