Top 20 municipalities with highest spending per resident in SA

South Africa’s 257 municipalities play a crucial role in delivering essential services like water, electricity, refuse removal, and sanitation to millions of households.

This substantial undertaking demands significant resources, notes StatsSA.

In 2022, municipalities collectively spent R532 billion, covering both operational and capital expenditures, detailed in separate statistical releases.

With a national population of 62.0 million according to the 2022 Census, this expenditure averages to R8,572 per resident.

Notably, Gauteng municipalities reported the highest per-resident spending at R12,060 (Figure 1), while Eastern Cape, Mpumalanga, and Limpopo recorded lower figures.

On a more detailed level, individual local and metropolitan municipalities showed spending per resident ranging from R1,389 (Nongoma LM, KwaZulu-Natal) to R23,201 (Gamagara LM, Northern Cape).

A list of the top 20 spenders highlights municipalities from diverse provinces.

Many top spenders cluster in parts of Gauteng and Mpumalanga, while lighter-colored municipalities with lower per capita spending are prevalent in Limpopo, Eastern Cape, KwaZulu-Natal, and North West.

Figure 3 illustrates the distribution of spending ranges across provinces, with Gauteng showing higher averages and Limpopo lower ones.

Each province exhibits a range between its lowest and highest-spending municipalities, with Northern Cape displaying the widest spread due to outliers like Gamagara LM.

Gamagara LM's high per capita spending is not an isolated incident; it also topped similar analyses using 2016 data. This consistency raises questions about its financial management.

In 2022, Gamagara LM's annual financial statements highlighted significant expenditures due to 'inventories losses/write-downs,' significantly impacting its total spending.

The municipality's economic center, Kathu, home to the Sishen iron ore mine, plays a pivotal role. The town attracts skilled workers and high earners, influencing the local economy. Media reports identified Gamagara as the third wealthiest municipality in South Africa, citing high average taxable incomes.

Moreover, Gamagara demonstrates remarkable revenue self-sufficiency. In 2022, it generated R90 for every R100 of revenue from sources like property taxes and service charges, surpassing both the B3 municipality average of R62 and the national average of R73.

This financial independence underscores Gamagara's position as the most financially self-reliant municipality in 2022.