KOUGA – Rising above the rest, Kouga Local Municipality has been named South Africa’s best in the Eastern Cape, clinching the 2025 Municipal Performance Award at the South African Property Owners Association (SAPOA) Annual Convention, held from 30 September to 2 October 2025 at Sun City.
Kouga Local Municipality earned this top honour for its outstanding performance during the 2023/24 financial year, topping the charts in the Eastern Cape. The accolade was based on Ratings Afrika’s Municipal Financial Sustainability Index (MFSI®), which measures the financial health, stability, and sustainability of South Africa’s 115 largest municipalities.
The recognition formed part of the inaugural SAPOA | Ratings Afrika Municipal Performance Awards, launched in partnership with the Banking Association of South Africa (BASA), to celebrate municipalities that demonstrate excellence in governance, fiscal discipline, and service delivery.
Kouga Executive Mayor, Hattingh Bornman, emphasised that while the award recognises Kouga as the best municipalities in the Eastern Cape, the municipality aspires to rank among the top in South Africa.
“We are proud of what we have achieved, but we also acknowledge that there is still work to be done and that everything is not yet perfect. Our municipality’s stability has been a key factor in our progress, and consistent, steady governance under our current majority leadership has allowed us to plan and deliver effectively for our communities,” said Bornman.
“This award also highlights the importance of stable governance. Consistent leadership enables effective planning and execution, benefiting all residents. While we celebrate this milestone, we remain committed to continuous improvement and to reaching even greater heights nationally.”
Kouga Shines Amid National Challenges
While many municipalities across the country faced deep financial distress, Kouga Local Municipality distinguished itself through sound financial management, consistent infrastructure investment, and accountable governance. According to Ratings Afrika, most municipalities recorded R35,3 billion in operating deficits last year, with liquidity shortfalls rising to R104,9 billion. Kouga, however, managed to maintain financial stability and deliver services sustainably to its residents.
Bornman, described the award as a milestone achievement for the municipality and its people.
“This award is a celebration of our residents and the trust they place in us,” he said. “Everything we do is guided by the needs of our communities. Through responsible management, accountability, and transparency, we are able to provide services that truly improve people’s lives every day. Their support, engagement, and resilience are what make achievements like this possible, and this recognition highlights what can be accomplished when residents are placed at the centre of every decision.
“It proves that good governance and sustainable service delivery are achievable. This is a victory not just for the municipality, but for every resident of Kouga who trusts us to serve them. We will continue to build on this foundation of excellence.”
Criteria for Recognition
The Municipal Performance Award is based on six key components of financial sustainability as measured by the MFSI®:
- Operational performance: ensuring revenue and expenditure are balanced, with adequate funds set aside for maintenance and reserves.
- Liquidity: maintaining sufficient cash resources and a strong revenue collection rate to meet short-term obligations.
- Liability management: ensuring borrowing remains prudent and debt levels sustainable relative to revenue.
- Budget performance: demonstrating the ability to fund both operating and capital budgets effectively.
- Affordability: keeping municipal rates and tariffs fair and manageable for households, while ensuring long-term sustainability.
- Infrastructure development: committing to consistent capital spending and investment to meet population growth and strengthen service delivery.
A Win for Kouga’s Residents
“This award belongs to our residents as much as it does to the municipality,” Bornman concluded. “It is their support and resilience that make progress possible. Kouga Local Municipality is proud to show what local government can achieve when it puts the people at the centre of everything it does.”
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