Overstrand Municipality has been recognised as one of the top five most financially sustainable local municipalities in South Africa, according to the latest Municipal Financial Sustainability Index (MFSI) released by independent ratings agency Ratings Afrika.
The report, based on audited financial results for the year ended June 2025 across 120 local and eight metropolitan municipalities, evaluates councils across six main financial criteria: operating performance, liquidity management, debt governance, budget practices, affordability, and infrastructure development.
Overstrand joins Drakenstein, Hessequa, Saldanha Bay, and Swartland in a select group of Western Cape municipalities recognised for sound governance, prudent budgeting, disciplined expenditure control and strong revenue collection.
Financial Commitment
According to Ratings Afrika, financially sustainable municipalities have the ability to deliver services, maintain infrastructure, and withstand economic or environmental shocks without requiring emergency external financial assistance or imposing unplanned tariff increases on residents.
Overstrand’s high ranking comes at a time when Ratings Afrika says the financial health of municipalities across South Africa continues to deteriorate:
- National Decline: The national average financial sustainability score dropped from 36 out of 100 in 2021 to just 33 in 2025 (falling to 27 when excluding the Western Cape).
- Deficit Crisis: Municipalities nationwide face a collective operating deficit of R39 billion and a liquidity shortfall of R128.7 billion.
“Sound financial management enables us to invest in infrastructure, provide reliable municipal services, and plan responsibly for the future. It is a reflection of the commitment of our Council, management and staff, who work every day to ensure that public funds are managed responsibly,” said Municipal Manager, Dr Dean O’Neill.
The Municipality remains focused on delivering reliable services, investing in essential infrastructure and creating lasting value for the communities it serves.
