Tshwane’s financial turnaround signals hope for sustainable recovery
Tshwane’s financial outlook has been upgraded from stable to positive as improved liquidity and disciplined spending take root.
The Tshwane metro has received a welcome vote of confidence from Global Credit Ratings (GCR), which has affirmed the metro’s unsolicited long-term rating while revising its outlook from Stable to Positive.
This follows sustained progress in the municipal fiscal management, particularly in tackling long-standing liquidity constraints.
The revised outlook comes amid signs of recovery, marked by an operating surplus of R2.1-billion for the financial year ending June 30, 2024, up from R1.3-billion the previous year.
GCR further noted an improvement in liquidity, with year-end cash balances doubling from R1-billion in 2023 to R2-billion in 2024.
According to the GCR, much of this is credited to the reclassification of highly liquid investments and stricter spending controls.
Deputy Mayor Eugene Modise welcomed the rating revision.
He said it reflected the metro’s commitment to transparent, disciplined governance.
“This improved outlook is not just a credit rating; it’s a reflection of our commitment to rebuilding the financial health of our city,” Modise said.
“Through strategic debt reduction, improved billing, and firm expenditure controls, we are gradually restoring confidence in our administration.”
The rating agency highlighted key contributing factors, including improved billing accuracy, moderate tariff increases, and stronger interest collection from outstanding debtors.
Notably, the metro has also made strides in addressing its debt with Eskom, reducing the total from R6.7-billion in November 2024 to R5.6-billion by March 2025.
Modise added that Tshwane’s financial progress will directly benefit residents.
“A stronger financial foundation means we can better deliver on our promise of reliable services, responsive governance, and critical infrastructure investment,” he said.
“We remain focused on ensuring every rand is spent wisely and transparently.”
GCR acknowledged ongoing challenges, such as the need for continued improvements in cash flow and long-term debt management.
Modise said the positive shift in outlook opens up investment opportunities and improves the metro’s fiscal credibility in the eyes of national and international stakeholders.
“A positive rating outlook also improves investor confidence, potentially drawing new funding and partnerships into the metro’s development plans, particularly around service infrastructure and economic upliftment in underserved communities,” he said.
Financial experts note that the metro’s ability to secure a fully funded budget and adhere to repayment plans demonstrates a significant step toward long-term sustainability.
“These developments are not just about numbers,” said Modise.
“They are about restoring the greatness of our city through diligent service delivery, efficient resource management, and collaboration with the people of Tshwane.”
Modise insisted that continued execution of its financial recovery strategy is essential.
He said the focus will remain on maintaining liquidity stability, enhancing revenue collection, and improving service delivery through better governance.
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