This is the best-run municipality in the Eastern Cape
Joe Gqabi District Municipality is the only municipality in the Eastern Cape to receive a clean audit outcome for four or more consecutive years.
This was highlighted by the Auditor-General’s (AG) Consolidated General Report on Local Government Audit Outcomes for 2023/24.
The report highlighted the poor state of local governance across the country. Of South Africa’s 257 municipalities, only 41 received clean audits.
Among the country’s major metros, Cape Town was the only one to achieve this standard. Auditor-General Tsakani Maluleke said the continued failures of local government showed that national and provincial interventions had not had the desired effect.
In the Eastern Cape, the majority of municipalities performed poorly. The Auditor-General noted that 85% had material findings.
Among the most concerning points included poor procurement practices, failure to prevent irregular and wasteful spending, and weak financial controls.
Nearly half of these municipalities did not properly investigate financial misconduct or take disciplinary action when necessary.
Despite this, Joe Gqabi was one of six municipalities in the province to receive a clean audit. Joe Gqabi is particularly noteworthy as it was the only one in the province to earn clean audits consecutively for four years.
“This recognition reflects on the hard work undertaken by the municipalities and entity to implement clean governance and having the systems and records in place to justify their financial and performance status,” said the municipality.
It added that less than 10% of municipalities and their entities in the Eastern Cape have received this award for the 2023/24 financial year, showing how difficult it is to achieve.
A clean audit means a municipality has submitted financial statements free from material misstatements, reported accurately on its performance objectives, and complied with legislation.
“It does not always reflect the lived experience of all communities in a municipal area,” said Maluleke. However, she emphasised that it does create the necessary foundation for effective and transparent governance.
A semigration hotspot
Joe Gqabi District Municipality is located in the north-eastern part of the province and borders the Free State and Lesotho.
It includes the local municipalities of Walter Sisulu, Senqu, and Elundini, covering towns such as Lady Grey, Barkly East, Burgersdorp, Ugie, and Sterkspruit.
While Joe Gqabi is being recognised for its financial governance, the broader Eastern Cape is starting to draw attention as more South Africans are starting to move to the province.
The latest Absa Homeowner Sentiment Index (HSI) for the first quarter of 2025 highlighted this as part of a shift in migration trends.
Although the Western Cape still records positive net migration, Absa noted that this has slowed down compared to the previous three quarters, the Eastern Cape is seeing continued net inward migration.
Rising costs and congestion in cities like Cape Town are pushing buyers to consider alternatives.
Giovanni Gaggia, CEO of Real Estate Services South Africa, said affordability is playing a major role.
“Affordability is key. Buyers are increasingly prioritising value for money, and the Eastern Cape offers larger properties at lower prices than major metros,” he told BusinessTech.
He also pointed to lifestyle changes enabled by remote work. “With hybrid and remote work becoming the norm, professionals are relocating to smaller towns where the quality of life is higher,” said Gaggia.
Alan Phillips, regional manager for Seeff in the Eastern Cape, said the province is also attractive due to its manageable traffic and rich cultural heritage.
“Traffic is not a major issue here, and the region is rich in history and culture. It’s the birthplace of South African icons like Nelson Mandela, Thabo Mbeki, and Oliver Tambo, and sports legends like Siya Kolisi and Makhaya Ntini,” he said.
According to Absa’s HSI, 68% of buyers in the Eastern Cape are under the age of 50, and nearly 28% are under 35.
This indicates the region is becoming more attractive to younger people and families looking for long-term opportunities.
Gaggia said the trend includes a growing number of families. “We’ve seen a rise in young families and semigrants from Gauteng and KwaZulu-Natal choosing the Eastern Cape for schooling, safety, and lifestyle,” he said.
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