BAD news as massive South African municipal tariff hikes loom
Residents of major cities face above-inflation South African municipal tariff hikes which have been proposed to come into effect by 1 July 2024. Here’s more …
It’s time to start counting your pennies as a new round of South African municipal tariff hikes will materialise by 1 July 2024. The real question is how much they will set cash-strapped Mzansi back!? As reported by Business Tech, Mzansi’s major metros are proposing significant, above-inflation South African municipal tariff hikes. Here’s how much they want …
SOUTH AFRICAN MUNICIPAL TARIFF HIKES
Following a 12.8% Eskom electricity tariff increase this month, Mzansi’s major metros are staring down above-inflation increases in municipal tariffs, proposed for implementation on 1 July 2024. These are part of the draft budget proposals presented by the major metros to government for the 2024/25 financial year.
Ironically enough, municipal mayors say it’s the above-inflation Eskom increase that has made South African municipal tariff hikes. Similarly, the recent 4.8% salary increase for 1.3 million civil servants has also forced their hand in upping tariffs.
HOW MUCH WILL THE INCREASES BE?
It will vary depending on the municipality. According to the report, eThekwini residents are staring down the biggest increases. These include property rates, electricity, water and sanitation, and refuse removal. Nelson Mandela Bay (15.7%) and eThekwini Metropolitan (14%) municipality have drafted larger electricity increases compared to other major metros like Jo’burg and Cape Town.
Understandably, the eThekwini Ratepayers’ and Residents’ Association (ERRA) is insisting its members reject the increases amid dismal service delivery. Meanwhile, Cape Town is proposing a heavy-handed 5.7% increase in property rates. This represents a 180-degree swing from a 1.1% decrease in property rates it had aimed for one-year ago. The City says this increase will fund investment in infrastructure, servicing of informal settlements and rebates for the most vulnerable citizens on indigent benefits.
RATES DIFFER PER METRO
While still to undergo consultation, below are the proposed rates tabled to parliament by the major metros for 1 July 2024:
| Municipality | Rates | Electricity | Water | Sanitation | Refuse |
| City of Jo’burg | 4.8% | 10.7% | 7.7% | 7.7% | 5.9% |
| eThekwini | 7.9% | 14.0% | 14.9% | 12.9% | 8.0% |
| City of Cape Town | 5.7% | 11.8% | 6.8% | 6.8% | 5.7% |
| Nelson Mandela Bay | 5.0% | 15.7% | 6.0% | 6.0% | 6.0% |
*Proposed rates still must undergo consultation.