ActionSA welcomes yesterday’s revision of Global Credit Ratings, a Moody’s affiliate, of the City of Tshwane to positive. This revision comes with the specific commendation to the City for its improved fiscal position and liquidity metrics.
The ratings agency noted the following improvements in the City’s financial position:
1. The doubling of cash balances to R2 billion.
2. Current ratio improving from 0.4 to 0.6.
3. Reduction in ESKOM debt of R1.1 billion.
4. Operating Surplus increasing from R1.3 billion to R2.1 billion.
5. Capital budget spend up to 90% from 80%.
6. Improved billing accuracy.
7. Fully funded draft budget.
The improvement in the financial position of the City, as recognised by GCR, demonstrates the positive impact of ActionSA Mayor Dr Nasiphi Moya and her multi-party coalition government. Critically, this has been achieved in the context of a City that has tabled a draft budget that is fully funded for the first time since 2021, does not borrow to fund its operations and has allocated 70% of its spend behind service delivery infrastructure.
This achievement is even more impressive when considered against the background of previous administrations that allowed electricity debt to balloon (even while residents were paying their bills), generated negative audit outcomes and reduced the cash position of the City to a position of being bankrupt.
ActionSA commends Mayor Moya, and the multi-party coalition government, and urges them to continue building on each success in their efforts to turnaround our capital city.
It is clear that the City inherited by Mayor Moya is going to take time to turnaround, however it is positive that this multi-party coalition government continues to make the right decisions, drive service delivery and improve the City’s finances to the benefit of all of its residents.
Tshwane’s Financial Recovery Gains Momentum with Revision to Positive Credit Outlook
ActionSA welcomes yesterday’s revision of Global Credit Ratings, a Moody’s affiliate, of the City of Tshwane to positive. This revision comes with the specific commendation to the City for its improved fiscal position and liquidity metrics.
The ratings agency noted the following improvements in the City’s financial position:
1. The doubling of cash balances to R2 billion.
2. Current ratio improving from 0.4 to 0.6.
3. Reduction in ESKOM debt of R1.1 billion.
4. Operating Surplus increasing from R1.3 billion to R2.1 billion.
5. Capital budget spend up to 90% from 80%.
6. Improved billing accuracy.
7. Fully funded draft budget.
The improvement in the financial position of the City, as recognised by GCR, demonstrates the positive impact of ActionSA Mayor Dr Nasiphi Moya and her multi-party coalition government. Critically, this has been achieved in the context of a City that has tabled a draft budget that is fully funded for the first time since 2021, does not borrow to fund its operations and has allocated 70% of its spend behind service delivery infrastructure.
This achievement is even more impressive when considered against the background of previous administrations that allowed electricity debt to balloon (even while residents were paying their bills), generated negative audit outcomes and reduced the cash position of the City to a position of being bankrupt.
ActionSA commends Mayor Moya, and the multi-party coalition government, and urges them to continue building on each success in their efforts to turnaround our capital city.
It is clear that the City inherited by Mayor Moya is going to take time to turnaround, however it is positive that this multi-party coalition government continues to make the right decisions, drive service delivery and improve the City’s finances to the benefit of all of its residents.