STATE OF THE METRO: “TOGETHER, WE CAN FIX NELSON MANDELA BAY AND UNLOCK INCLUSIVE ECONOMIC GROWTH”
Published: September 11, 2026<< BACK TO NEWS
Nelson Mandela Bay Municipality has made significant strides in strengthening service delivery, protecting critical infrastructure, attracting investment, supporting tourism and economic development, and building partnerships to create a safer and more resilient city, Executive Mayor Councillor Babalwa Lobishe said during the 2026 State of the Metro Address.
Delivering the address under the theme "Decisive action to fix the Metro and ensure inclusive economic growth”, the Executive Mayor said the past three years had been characterised by both significant progress and considerable challenges.
The Municipality had faced prolonged drought, ageing infrastructure, financial pressures, vandalism of municipal assets, institutional capacity constraints, economic uncertainty and two devastating flood disasters in May and June 2026, which caused an estimated R1.5 billion in infrastructure damage.
Despite these challenges, the Executive Mayor said the Municipality had continued to invest, repair, modernise, reform and build partnerships.
"The State of Nelson Mandela Bay is therefore one of progress under pressure, opportunities amidst challenges, and a city that refuses to stand still.
Water security has remained one of the Municipality’s most important priorities, particularly following years of drought and the threat of a "Day Zero” scenario.
The Municipality has invested approximately R1.3 billion in drought mitigation projects, including the Impofu Dam barges, Grassridge Temporary Water Treatment Works, Phase 3 of the Nooitgedacht Water Treatment Works, booster pump stations, the BloemendalKwaNobuhle Pipeline and various wellfield developments.
Phase 4 of the Coegakop Wellfields has been completed, while work continues on the Eastto-West Bulk Water Transfer Pipeline. Thirty boreholes have also been commissioned, producing approximately 20 to 30 megalitres of water per day.
Approximately 98% of households have access to water, while 95.7% have access to improved sanitation facilities. During the period under review, 2 089 households were connected to water and sanitation, 285 standpipes were installed in informal settlements and 23 570 water meters were replaced.
The Municipality also refurbished 14 water treatment works, eight wastewater treatment works and 10 reservoirs, while introducing technology such as telemetry and SCADA systems to strengthen the monitoring of water infrastructure.
"These are not simply infrastructure upgrades but an investment in the future prosperity and socio-economic development of Nelson Mandela Bay.”
Significant progress has also been made in roads and stormwater infrastructure.
Over two financial years, the Municipality tarred 17 kilometres of gravel roads, constructed 6.8 kilometres of sidewalks, repaired 23 565 potholes, cleaned 27.9 kilometres of stormwater canals and approximately 35 000 stormwater drain catchpits.
A further 1 021 kilometres of road markings were completed.
The Municipality also adopted a "build back better” approach following the flood disasters, with projects including the rehabilitation of Matanzima Bridge and Cuyler Bridge, restoration of the Cat and De Mist Canals, and construction of a new footbridge in Jabavu, KwaNobuhle.
In partnership with SANRAL, the Municipality also commenced its first solar/wind traffic signal pilot project at the R74/Mati/N2 interchange, incorporating CCTV and associated infrastructure.
The current Medium-Term Revenue and Expenditure Framework provides for R1.7 billion towards the development and upgrading of roads and stormwater infrastructure.
The Municipality has continued expanding access to electricity while strengthening the resilience of its electricity network.
Approximately 94% of households have access to electricity, with 472 households connected during the period under review.
The Municipality installed 297 new public lights, retrofitted 3 708 existing public lights and refurbished 26 power transformers.
At the same time, Nelson Mandela Bay is positioning itself for the emerging renewable energy economy, with the 15MW Greenbushes Solar Farm and 25MW Parsons Power Park Solar Farm currently in development.
Negotiations are also underway with major prospective power users, including the proposed 1 250MW Hive Hydrogen site in Coega and the 556MW Vexsa data centre.
"We must position this Metro not merely as a consumer of electricity, but as a producer, facilitator and strategic partner in the energy transition.”
The Municipality has strengthened waste management and urban beautification initiatives, with 98.7% of recognised informal settlements receiving basic waste removal services as at the end of June 2026.
Sixteen new refuse compactor trucks were acquired at a cost of approximately R60 million to improve waste collection capacity.
The Municipality also upgraded the Arlington waste disposal facility and Verwoerd drop-off site, while 33 public open spaces and 13 cemeteries were upgraded.
The Cleaning and Greening Programme has targeted illegal dumping and neglected spaces. During its first two phases, 51 illegal dumping hotspots were cleared, with one former dumping site in Ward 29 transformed into Kingston Park.
The Executive Mayor called for communities, businesses and civic organisations to become active partners in keeping neighbourhoods clean.
"A dumping site becoming a park. A neglected space becoming an asset. A problem becoming an opportunity.”
The Municipality has placed urban safety and crime prevention among its priorities, working with law-enforcement agencies and other stakeholders to address crime and lawlessness.
The Municipality has a fully operational Metro Police Department, while a collaborative agreement with the South African Police Service (SAPS) has strengthened cooperation around urban safety.
The Municipality is also working with the Eastern Cape Liquor Board, Department of Home Affairs, Business Chamber and South African Revenue Service through joint operations aimed at combating crime and illegal activities.
Technological interventions include the resuscitation of the municipal CCTV network, deployment of a Mobile Surveillance Vehicle and establishment of a dedicated Safety and Security WhatsApp Line.
The Municipality is also exploring the redevelopment and repurposing of abandoned and underutilised buildings, which can become potential hide-outs for criminals, while simultaneously supporting urban renewal and housing opportunities.
The Executive Mayor said building a safer city requires strong partnerships between government, communities, businesses and law-enforcement agencies.
Nelson Mandela Bay remains the economic hub of the Eastern Cape, generating approximately one-third of the province’s economic output and contributing an estimated R194 billion to the regional economy annually.
During the period under review, the Municipality facilitated approximately R1.45 billion in investment, including developments involving Shoprite, CHC Cold Storage, Shatterprufe and Capital Hotels.
These investment facilitation initiatives contributed to the creation of 1 240 permanent jobs, while the EPWP and Public Employment Programmes created 16 492 work opportunities.
The Municipality has also adopted an Economic Development and Growth Strategy and approved a Tourism Master Plan, while continuing to support approximately 3 500 MSMEs and entrepreneurs annually.
A further 650 emerging farmers received training and equipment, while the Fresh Produce Market generated approximately R243 million in sales during the 2025/26 financial year.
The Municipality is also pursuing opportunities in the ocean economy, maritime and logistics sectors, global business services, digital skills, technology entrepreneurship and Smart City innovation.
Tourism continues to play a critical role in Nelson Mandela Bay’s economy.
The Metro hosted 40 cruise liner calls, welcoming approximately 79 421 passengers and generating an estimated R129.6 million in direct economic benefit.
Approximately 476 697 foreign tourists visited Nelson Mandela Bay during 2024 and 2025, accounting for approximately 73% of foreign tourist arrivals in the Eastern Cape, while an estimated 2.7 million domestic tourists visited the Metro.
Tourism contributed approximately R12.8 billion directly to the local economy during the reporting period.
The Municipality has also hosted major sporting and international events, including the ISUZU IRONMAN African Championship, SANZAAR U20 Rugby Championship, international cricket fixtures and other major events.
Nelson Mandela Bay will host the Lifesaving World Championships later this year and the 2026 Skål International World Congress, further strengthening its international tourism and business-events profile.
Since 2024, the Municipality has supported 15 business events involving more than 6 000 delegates, generating an estimated R204.5 million in economic impact.
"These are not just events. They create business opportunities. They fill hotels. They support restaurants. They showcase our beaches. They promote our city internationally. And they create a platform from which to attract future investment.”
The Municipality said it would continue working with tourism stakeholders to strengthen destination marketing, air connectivity, the Convention Bureau, the Airport City and Aerotropolis Programme, sports tourism, business events and the local film and creative industries.
THE JOBS AND INDUSTRIAL COMPETITIVENESS CHALLENGE
While acknowledging progress, the Executive Mayor stressed that the Metro cannot become complacent.
Unemployment remains high at 33.1%, with young people particularly affected. The Metro also faces slow economic growth, limited access to finance for MSMEs, investor uncertainty and declining manufacturing competitiveness.
Manufacturing remains the backbone of the local economy, contributing approximately R44 billion annually and accounting for more than a quarter of economic activity in the Metro.
Nelson Mandela Bay generates more than 62% of the Eastern Cape’s manufacturing output, reinforcing its position as an automotive and industrial hub.
The Executive Mayor said the Metro must work with business, organised labour, government, the Coega Special Economic Zone and other strategic partners to retain existing investment while aggressively pursuing new investment.
"The Metro must be investment-ready, infrastructure-ready and skills-ready and we must ensure that local people benefit from the economic opportunities created in their own city, particularly women, youth and people with disabilities.”
During the 2025/26 financial year, contracts worth R363 million were awarded to womenowned enterprises through projects funded under the USDG and ISUPG grants.
The Executive Mayor acknowledged that significant challenges remain.
These include ageing infrastructure, vandalism, maintenance backlogs, constrained funding, high unemployment, institutional capacity challenges, high vacancy rates, financial pressures, arrear debt, water and electricity losses, poor conditional grant performance and governance challenges.
The Municipality is responding through interventions including a Centralised Project Management Unit to improve grant performance, strengthened Trading Services reforms, intensified revenue collection and credit control, measures to combat illegal connections and tampering, and continued implementation of the Audit Action Plan.
Revenue collection improved from 76.6% in June 2026 to 78.3% in July 2026.
An amount of R105 million has been budgeted for an mSCOA-compliant Enterprise Resource Planning system, aimed at strengthening municipal financial information, transparency and decision-making.
INVESTING IN THE NEXT PHASE OF THE CITY
The current MTREF allocates:
R453 million towards human settlement development projects;
R1.7 billion towards roads and stormwater infrastructure;
R1.4 billion towards water and sanitation augmentation and upgrades;
R1 billion towards electricity infrastructure; and
R197 million towards solid waste management facilities.
The Executive Mayor said these investments represent a clear commitment to strengthening basic services, infrastructure and the socio-economic development of residents.
The Executive Mayor concluded her address with a call for an unprecedented partnership between government, business, labour, communities, civil society and residents. She said Nelson Mandela Bay’s challenges cannot be solved by government acting alone and called on all stakeholders to move beyond silos and place the interests of the city above institutional and political differences.
"Government cannot do this alone.”
National and Provincial Government were called upon to continue aligning programmes and infrastructure investment with the needs of the Metro and the Eastern Cape.
Business was urged to invest, employ, innovate and partner with the Municipality.
Civic and community organisations were encouraged to provide ideas, vigilance and active participation, while residents were called upon to protect public infrastructure, keep neighbourhoods clean and participate in community development.
Councillors were also challenged to ensure that, despite political differences, the interests of Nelson Mandela Bay remain paramount.
The Executive Mayor said the city must draw inspiration from the legacy of its namesake, Nelson Rolihlahla Mandela, by demonstrating courage, resilience, discipline, reconciliation and determination.
"Let us build partnerships instead of silos. Let us build infrastructure instead of excuses. Let us build businesses instead of barriers. Let us build skills instead of dependency. And let us build communities instead of divisions.”
She said the future of Nelson Mandela Bay depends on collective action.
"Together, we can fix the Metro and ensure inclusive economic growth.”
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