While the financial sustainability of South Africa’s eight metropolitan councils has improved slightly, their average score from Ratings Afrika is a mere 43 out of 100, which the agency says is concerning.
“Additionally, the municipality should have the capacity to absorb financial shocks caused by natural, economic, political, and other adversities without external financial assistance.”While still doing very poorly, the City of Tshwane showed the biggest improvement from the previous year. Leon Claassen, Ratings Afrika’s analyst, says this shows the multi-party coalition is doing the right things, “but they still have a very long way to go”.
He says Tshwane’s municipal services are still affordable and show a stable trend, but infrastructure development is still considered inadequate. This should improve with a stronger liquidity situation. Johannesburg ADVERTISEMENT CONTINUE READING BELOW The City of Gold has been sliding backwards over the last five years, scoring a mere 36 points, 11 points lower than in 2019, indicating low financial sustainability.
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