The best-run municipality in South Africa with a consistent track record of 14 years
The West Coast District Municipality has officially been named South Africa’s best-run municipality for 2025, while two of its local municipalities, Saldanha Bay and Swartland, tied for first place as the top-performing local municipalities in the country.
This is according to Ratings Afrika’s latest Municipal Financial Sustainability Index (MFSI), which evaluates municipalities based on six key criteria.
These include operational performance, liquidity and debt management, budgeting practices, affordability, and infrastructure development.
The index has been published annually since 2011, using audited financial statements to measure the financial sustainability of the country’s largest local municipalities and metros.
Financial sustainability, as defined by Ratings Afrika, refers to a municipality’s ability to deliver services and maintain infrastructure without incurring sudden tax or tariff increases, while also being able to absorb financial shocks.
Some examples include natural disasters or economic downturns that can occur without requiring external financial aid.
The West Coast District Municipality’s performance stood out among South Africa’s 107 municipalities.
Stretching from the northern edge of the Cape Town Metropole to the border of the Northern Cape, the district covers over 31,000 square kilometres and is home to nearly half a million residents.
It was recognised for achieving 14 consecutive clean audits and maintaining a 100% capital project expenditure record, demonstrating consistent financial discipline and effective governance.
Western Cape municipalities once again dominated the rankings, highlighting the province’s strong record of accountability and service delivery.
At the National Good Governance Awards, held at Gallagher Estate in Johannesburg, several Western Cape municipalities were recognised for their excellence.
Breede Valley Municipality received recognition for ten consecutive years of clean audits and maintaining funded budgets over the same period, while the Cape Winelands District Municipality was honoured for eleven consecutive clean audits and financial stability.
At a separate event, the mayors of Saldanha Bay and Swartland accepted awards at the South African Property Owners Association (SAPOA) gala after both municipalities jointly achieved the highest scores (74 out of 100 ) on Ratings Afrika’s latest index.
Swellendam (73) and Hessequa (72) followed closely behind, also reflecting the Western Cape’s strong governance trend.
Overall picture of local municipalities still grim
Saldanha Bay and Swartland fall under the West Coast District Municipality, further reinforcing the district’s reputation for sound financial management.
The Western Cape’s success was also reflected in the metro category, with the City of Cape Town (70) once again emerging as the only metropolitan municipality considered financially sustainable.
No other metro in the country comes close to matching Cape Town’s financial performance, according to Ratings Afrika.
Pierre Germishuys, a licensee for Seeff West Coast, said that the region’s good governance and efficient municipal management have contributed to its growing appeal.
“The small towns of the West Coast have become increasingly popular since the Covid-19 pandemic,” he told BusinessTech.
“Where they were mostly seen as holiday villages, an increasing number of people are now moving there permanently and investing in second or holiday homes.”
Germishuys added that between 2021 and 2023, the West Coast experienced a significant property boom, with Langebaan standing out as a top performer.
Despite these standout examples, Ratings Afrika painted a grim picture of the overall state of local government in South Africa.
Of the 107 municipalities measured, the national average score was a low 36 out of 100, which is unchanged from the previous two years.
The report noted that this average is largely “propped up” by the strong performance of Western Cape municipalities, which collectively scored an average of 55 out of 100.
“The results of the latest MFSI once again confirm the very weak financial sustainability of South African municipalities under the leadership of the current elected councillors and their appointed executive management teams,” said Ratings Afrika.
“The exception is the majority of the Western Cape municipalities and Midvaal in Gauteng.” According to the agency, most municipalities continue to suffer from severe financial mismanagement, poor governance, and collapsing service delivery.
Despite this, the success of the West Coast District, Saldanha Bay, and Swartland shows that good governance can still thrive in parts of South Africa and deliver real results for its residents.
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