Executive Mayor Alderman M.P. Nkosi presented Msukaligwa Local Municipality's Budget Report during the 8th Ordinary Council Meeting held on 28 May 2026 at the Municipal Council Chambers in Ermelo.
The budget forms part of the municipality's 2026/27 to 2028/29 Medium-Term Revenue and Expenditure Framework (MTREF).
This article serves as Part 1 of a series covering the key points raised during the Mayor's budget address.
Financial Recovery and Revenue Collection
A major focus of the address was the municipality's ongoing financial recovery efforts. The Mayor highlighted challenges including:
- Illegal electricity connections
- Aging infrastructure
- Growth of informal settlements
- Non-payment of municipal services
According to the Mayor, these factors have negatively impacted electricity, water and sanitation infrastructure while increasing the municipality's financial obligations to Eskom and the Department of Water and Sanitation.
Nkosi called on councillors, businesses and residents to work together in addressing illegal electricity connections, describing it as a community-wide responsibility rather than a challenge for the municipality alone.
"The issue of illegal connections affects all of us and requires the support of all stakeholders if we are to overcome it," she said.
Despite these challenges, the Mayor noted that the municipality has improved its revenue collection rate from approximately 70% to 74%, attributing the increase to residents who continue paying for municipal services.
Infrastructure Funding
The municipality has secured approximately R431 million from the National Treasury to support service delivery and infrastructure development.
- Regional Bulk Infrastructure Grant – approximately R200 million
- Municipal Infrastructure Grant – R73.6 million
- Water Services Infrastructure Grant – R59.8 million
- Integrated National Electrification Programme – R18 million
These funds will be used to improve infrastructure and service delivery across the municipality.
Major Infrastructure Projects Delivered and Planned
Nkosi highlighted several projects completed during the previous financial year, including:
- Refurbishment of the Warburton Wastewater Treatment Works valued at R35 million.
- Installation of toilets in farm areas valued at R3.9 million, serving 150 households.
- Upgrade of the Everest Outfall Sewer Pipeline valued at R24 million, aimed at addressing sewer spillages in Wards 4 and 5.
- Refurbishment of the Lothair Water Treatment Works valued at R15 million to improve water quality.
- Electrification of Silindile Extension 3 valued at R3.2 million, serving 120 households.
- Road upgrades and resurfacing projects in several areas.
- Electrification projects benefiting more than 900 households.
Among the major projects planned for the 2026/27 financial year is the upgrade of the Ermelo Wastewater Treatment Works and the installation of a new bulk sewer pipeline at a cost of R135 million. Additional sewer network upgrades in Extensions 32, 33 and 34 will continue through a multi-year project valued at R59 million.
Other planned projects include the installation of additional toilets in farming areas, sewer reticulation in Warburton, and water infrastructure projects aimed at addressing supply challenges in Ermelo, Wesselton and surrounding communities.
To improve water supply in high-lying areas such as Everest Park, the municipality plans to construct a one-megalitre elevated water tank and booster pump station valued at R19 million. Borehole drilling projects in farming communities will also continue.
Road maintenance and stormwater drainage improvements remain part of the municipality's priorities, with R7 million allocated for road refurbishment projects and R19 million earmarked for the reconstruction of the municipal stadium.
According to the Mayor, the planned infrastructure programme is expected to create short-term employment opportunities across various wards while improving the reliability of essential municipal services.
Nkosi concluded by encouraging continued cooperation between residents, businesses, councillors and municipal officials to support the municipality's financial recovery efforts and ensure sustainable service delivery for all communities.