Lobishe: Nelson Mandela Bay finances under pressure as revenue, infrastructure woes mount

By Thapelo Molefe

Nelson Mandela Bay Municipality is under growing financial pressure as low revenue collection, mounting arrear debt and water and electricity losses threaten its ability to maintain infrastructure and meet rising demand for basic services.

More than six years after the Covid-19 pandemic, the metro continues to face financial and operational challenges, including weak revenue collection, underfunded mandates, water and electricity losses and poor performance on conditional grants.

Executive mayor Babalwa Lobishe said the municipality’s monthly collection rate improved from 76.6% in June to 78.3% in July, but warned that significant financial challenges remained.

“Other financial viability challenges include arrear debt, water and electricity losses, underfunded mandates, poor conditional grant performance and slow implementation of mSCOA [Municipal Standard Chart of Accounts],” Lobishe said in her 2026 state of the metro address on Thursday evening.

The financial strain comes as the metro faces ageing infrastructure, maintenance backlogs and continued