SA's municipalities are in dire financial straits – Ratings Afrika
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GUEST – Charl Kocks - Principal at Ratings Afrika
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. If one discounts Cape Town, which is once again the top performer with a score of 70, the average is only 39 out of 100. “At this level of financial sustainability, the majority of metros remain a concern.
They are considered to be the economic engines of the South African economy. Service delivery failure by the metros can cause immeasurable damage to the economy,” the agency said at the release of the 2023 results. Ratings Afrika has been publishing its Municipal Financial Sustainability Index (MFSI) since 2011.
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. If one discounts Cape Town, which is once again the top performer with a score of 70, the average is only 39 out of 100. “At this level of financial sustainability, the majority of metros remain a concern.
They are considered to be the economic engines of the South African economy. Service delivery failure by the metros can cause immeasurable damage to the economy,” the agency said at the release of the 2023 results. Ratings Afrika has been publishing its Municipal Financial Sustainability Index (MFSI) since 2011.
