COST CONTAINMENT AND REVENUE DRIVE TO SECURE NMBM'S FINANCIAL FUTURE
Published: July 23, 2026<< BACK TO NEWS
.jpg)
Nelson Mandela Bay Municipality
Executive Mayor, Councillor Babalwa Lobishe, has called on municipal employees,
councillors, businesses and residents to support the Municipality as it embarks
on the 2026/2027 financial year with a comprehensive financial sustainability
programme centred on stringent cost-containment measures and an intensified
revenue enhancement strategy.
At a time when municipalities are
expected to deliver more with constrained financial resources and rising
service delivery demands, the Nelson Mandela Bay Municipality has adopted a
multi-directorate financial sustainability strategy aimed at strengthening its
financial position, safeguarding essential service delivery and ensuring that
every public rand delivers maximum value for residents.
As part of the programme, the
Municipality will reduce non-essential domestic and international business
travel and hospitality expenditure while fast-tracking the review of its
overtime policy to eliminate avoidable expenditure and strengthen controls against
the abuse of overtime. In addition, every Municipal Directorate will be
required to develop and implement measurable cost-containment plans aligned to
the Municipality’s financial sustainability objectives.
The Municipality has also resolved to
intensify revenue collection through accelerated debt recovery from all spheres
of government, including government departments and public entities. The same
approach will apply to outstanding municipal debt owed by municipal officials,
councillors and ward committee members in line with the principle that every
customer must meet their financial obligations.
Revenue enhancement efforts within the
business sector will also be strengthened through targeted debt collection
initiatives. Furthermore, the Municipality will implement weekly
multidisciplinary revenue enhancement blitz operations focusing on households
with illegal electricity and water connections, outstanding municipal debt and
prepaid electricity meters that have not recorded purchases for extended
periods, which may indicate meter tampering or illegal connections.
"Financial sustainability is fundamental
to our ability to meet our constitutional obligation of providing reliable
basic services and creating an environment that supports economic growth and
investment. Over the past few years, declining revenue has placed increasing
pressure on the Municipality’s capacity to accelerate service delivery. Through
this multi-directorate financial sustainability programme, we are taking
decisive steps to strengthen our finances, improve operational efficiency and
protect the services upon which our residents depend. We call on councillors,
municipal officials, businesses and residents to work with us in securing the
long-term future of Nelson Mandela Bay,” said Executive Mayor Lobishe.
The Municipality will further accelerate
the installation of electricity and water smart meters while implementing
measures to improve the accuracy and integrity of its billing database.
These interventions will be complemented
by targeted programmes to significantly reduce non-revenue water and
electricity losses, improve revenue management and strengthen the
Municipality’s financial resilience, ensuring greater investment in infrastructure
maintenance, service delivery and the long-term development of Nelson Mandela
Bay.
Top stories