Sapoa launches SA’s first national municipal performance awards

The South African Property Owners Association (Sapoa), in partnership with Ratings Afrika and the Banking Association of South Africa (Basa), has launched the country’s first national Municipal Performance Award to recognise municipalities that demonstrate excellence in governance, fiscal discipline, and service delivery.

The award will be presented during Sapoa’s annual convention.

Sapoa said the awards are built on Ratings Afrika’s Municipal Financial Sustainability Index (MFSI), a 15-year analytical tool that benchmarks municipal fiscal health across six financial components.

According to Ratings Afrika’s 2024 MFSI, the 115 largest municipalities together recorded R35.3 billion in operating deficits and liquidity shortfalls of R104.9 billion, an increase of R20 billion from 2023, figures Sapoa highlighted as evidence of widespread municipal distress.

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Sapoa president Itumeleng Mothibeli said the awards aim to “shine a spotlight on the outliers, the municipalities that prove financial sustainability is possible and that it can be the foundation for economic growth and prosperity.”

The association said it wants to recognise municipalities that not only meet basic governance obligations but excel at them.

Sapoa CEO Neil Gopal said sustained municipal dysfunction raises costs for property owners, undermines investor confidence and chokes economic growth, but that a handful of municipalities continue to balance their books, collect revenues efficiently and invest in infrastructure.

“It’s a crisis that hits residents and businesses alike,” he said.

Judging for the award will be based on Ratings Afrika’s six financial components, which assess a municipality’s ability to generate operating surpluses, maintain cash reserves, practise prudent borrowing, apply forward-looking budgeting, keep rates and tariffs affordable, and consistently invest in infrastructure to sustain long-term service delivery.

Sapoa said the awards are intended as a rallying point for reform. By showcasing best-performing municipalities on a national stage, the association hopes to create incentives for other local governments to improve fiscal management and service outcomes.

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