After several attempts, the Nelson Mandela Bay municipality’s 2025/2026 budget was passed on Wednesday.
After weeks of intense deliberations and budget adjustments, the proposed tariff increases were reduced from those presented in the budget tabled three weeks earlier.
The R21.61bn budget, which includes R2.15bn for its capital budget and R19.46bn for operational costs, was approved.
In her opening remarks, mayor Babalwa Lobishe said that, together with council chief whip Wandisile Jikeka, she met all senior officials to review the ward-based budget allocations, which had caused issues at the previous meeting.
“From the meeting we had, I’m glad to report that an amount of more than R44.9m was further added to the ward-based budget, which was taken from wards 99 and 900.”
Wards 99 and 900 are baskets used by the city to allocate funds for projects in different wards across the metro.
Lobishe said they ensured all wards got a fair allocation.
“I further want to present to council that the added ward amounts will cover arrears that were previously not catered for.
“So there should not be any major issues of discontent with the budget as we worked on the issues that were raised and needed our attention,” she said.
Water, along with sanitation and sewage rates, will now increase by 5%, down from the proposed 5.5%.
Refuse charges will increase by 5.5% instead of 6%.
The proposed 12.8% electricity hike and 5% increase in property rates remain in place.
The increases will kick in on July 1.
Tabling the budget report, chief financial officer Jackson Ngcelwane said there were changes in every ward.
“A total of R928m has been allocated to the wards.”
However, opposition parties were not happy with the budget, and many voted against it.
While 61 councillors voted in support of the budget, 51 voted against it.
The ANC voted in favour of the budget, along with the EFF, National Alliance, DOP, UDM, AIC, AIM, PAC and GOOD.
The DA, ACDP, PA and FF+ voted against it.
DA councillor Rano Kayser said parties that supported the budget did not read the documents.
“This document states that the city failed to apply the USDG [urban settlement development grant] on time.
“The grant is supposed to assist in the management and maintenance of infrastructure.
“This budget is not a break-even budget but a deficit budget.”
The DA rejected the budget, arguing that the allocation of funds for capital projects was unfair.
They pointed out that ANC-led Ward 54 received more than R109m, while the DA’s Ward 12 was allocated R1m.
Similarly, ANC Ward 33 received R18m, compared to only R1.7m for DA Ward 34.”
Kayser criticised the metro for reducing the capital budget in the 2026/2027 financial year to R1.6bn, down from the R2.09bn earmarked for the 2025/2026 financial year.
The metro’s capital budget includes money for the MBDA, which pushed it to R2.15bn.
“This means we are asking the residents to pay more so we can provide fewer services. This budget is not for the people, and therefore we reject it.”
FF+ councillor Bill Harington said it was reckless for the city to propose tariff increases, especially the 12.8% for electricity.
“This is done in a metro where the quality of basic services has become progressively worse to historically unacceptable levels.
“You cannot demand more from residents while delivering less. That is not governance — it is exploitation.”
ANC councillor Luyanda Lawu welcomed efforts made by Lobishe to ensure the budget was passed, noting the fairness in the ward allocations.
“I know there’s a narrative about certain ANC wards that have been allocated more funds.
“We just passed an adjustment budget where R1.8m was taken from Ward 29 of the ANC to Ward 52 of the DA for the electrification of informal settlements.
“But the same councillors of the DA rejected that budget, but we passed it nonetheless, and Bayland is being electrified.
“We should rather go for a by-election in Ward 52 because there is no councillor there.
“I understand why [DA] councillor [Jason] Grobbelaar was not given a slot [to speak] because what he demanded in the IDP meeting is reflected in the budget to the tune of R12.8m hence he’s quiet and happy,” Lawu said.
The Herald
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