EKURHULENI STATE OF THE CITY ADDRESS 2025

When Executive Mayor Alderman Nkosindiphile Xhakaza delivered the 2025 State of the City Address (SoCA) in September 2025, he offered a candid assessment of Ekurhuleni’s governance, finances, and service delivery. Speaking in front of councillors, management, stakeholders, and residents, the Mayor charted the City’s progress from a period of instability and financial strain to one of recovery and renewal.

With the metro having faced a R2.1 billion energy revenue shortfall, deteriorating infrastructure, and challenges in sustaining service delivery, the address underscored a clear message: Ekurhuleni is turning the corner. Through political stability, improved financial management, and targeted investment in essential services, the City is positioning itself as a reliable, responsive metro that places residents at the centre of its agenda.

Sound financial management is the bedrock of sustainable service delivery, and every rand collected in Ekurhuleni is being maximised to fund the essential services our communities depend on.

Political Stability: A Foundation for Service Delivery

At the heart of the Mayor’s address was the theme of political stability. For years, uncertainty in Ekurhuleni had stemmed from divisions in leadership and the constant risk of mayors being removed prematurely. The 2025 ANC Regional Conference shifted this dynamic when Alderman Xhakaza was entrusted not only as Executive Mayor but also as Regional Chairperson.

This dual leadership role has effectively ended the risk of competing centres of power that had threatened continuity. As the Mayor explained, “this new found stability is the bedrock upon which we can now build with confidence.” Stability has restored certainty to administration, reassured investors, and given officials the security needed to plan and deliver programmes without political disruption.

The alignment between political and administrative leadership has enabled the City to pursue its vision under the guiding theme: “A Responsive City Working with

Agility to Restore Service Delivery to the People.” This theme, he stressed, is not only a slogan but a measurable commitment to improving lives on the ground.

Tackling the Energy Revenue Shortfall

Perhaps the most daunting challenge inherited by the administration was a historic R2.1 billion energy revenue shortfall. Years of billing inaccuracies, inadequate meter management, and poor systems integration had weakened the City’s finances and eroded trust among residents. Rather than avoiding the issue, the City adopted a three-pronged turnaround strategy:

1. Integrity of billing systems - Automated meter reading accuracy has climbed from 84% to an unprecedented 97%. This step alone has restored credibility to the billing process, ensuring that residents are charged fairly and accurately for services consumed.

2. Accountability - Officials responsible for the failures were subjected to consequence management, with the suspension of the Chief Information Officer and ongoing disciplinary processes. This signalled a shift towards a culture of responsibility.

3. Recovery - Almost R1.4 billion has been billed, with R365 million already collected. The balance is in various stages of dispute resolution and billing, and a citywide campaign is under way to collect the remaining R1 billion owed.

The Council has further approved a Performance Improvement Action Plan for the Energy Department, introduced a new Service Delivery Agreement, and engaged National Treasury to reform financial models. The Mayor underlined that this is not merely about recovering funds but also about rebuilding trust and ensuring such mismanagement never occurs again.

Building Financial Sustainability

The turnaround in energy revenues is part of a broader push to restore financial sustainability. The Mayor reported a remarkable improvement in the City’s liquidity and fiscal discipline:

• Cash on hand: Doubled from 11 days to 21 days.

• Bank balances: Grew from R615 million to more than R1.2 billion.

• Investments: Rose from R245 million to R672 million in a single year.

The City’s credit rating has been upgraded, a milestone that reflects growing market confidence. Investors and financial institutions have taken note, signalling renewed confidence in the City’s management and governance.

A tender process is now underway for a revenue enhancement contract to introduce innovation and ensure the City is better equipped to sustain its long-term financial health. As the Mayor put it, “sound financial management is the bedrock of sustainable service delivery”

Accelerating Service Delivery Across Communities

• Energy and Lighting Residents have already seen improvements in service delivery. In the energy sector, targets were exceeded:

• 37 new High Mast Lights installed, compared to a target of 30.

• 214 new streetlights installed, above the target of 200.

• 3 287 new household electricity connections completed in communities such as Clayville and Chief Albert Luthuli.

We are building a city that is resilient, responsive, and reliable - one that confronts past challenges with honesty while accelerating service delivery for the people of Ekurhuleni.

These interventions have improved safety and brought dignity to households long awaiting electrification.

• Roads and Transport

The Bus Rapid Transit (BRT) system is now 90% complete, promising a vital connection from Tembisa to Rhodesfield, Isando, and OR Tambo International Airport. This is a major step towards modernising transport and reducing travel times for commuters.

• In addition, over 20 km of roads in Kempton Park’s CBD have been rehabilitated, alongside 3.9 km of Pretoria Road in Benoni and the entire stretch of Nala Street in Duduza. The City also maintained more than 7 800 stormwater systems, reducing the risk of flooding in vulnerable neighbourhoods.

• Safety

The Ekurhuleni Metropolitan Police Department (EMPD) has stepped up its operations, conducting 133 hotspot interventions - well above the target of 100. Thirty new police vehicles have been procured to improve visibility and response times, while key infrastructure such as the Katlehong Fire Station and Edleen Police Precinct are nearing completion.

• Water and Sanitation

Ekurhuleni is investing in water security for the future. Six new reservoirs and eight pump stations are under construction. Sewer line upgrades are being rolled out to protect the environment and sustain growth. Importantly, the City is addressing the 113 000 unmetered stands by rolling out a programme to ensure every household is properly accounted for in the water system.

• Waste Management

Waste collection services are being maintained for more than 752 000 formal households, while an additional 209 000 households in informal settlements now benefit from consistent refuse removal. The “Clean Your Kasi” campaign has created jobs for 345 general assistants who are improving cleanliness and civic pride in communities.

• Parks, Cemeteries, and Community Services

The City has resumed grass cutting, rehabilitated wetlands such as Homestead Dam and Boksburg Lake, and maintained a 100% success rate in providing timely burial services - a matter of dignity and respect for residents.

• Human Settlements

Ekurhuleni delivered 167 new housing units and serviced 455 stands during the year. These projects go beyond providing roofs over heads - they form the foundation of stronger, more cohesive communities.

Repairs and Maintenance: Fixing the Basics

A core focus of the administration is ensuring that existing infrastructure is properly maintained. The City has increased its repairs and maintenance budget by R400 million, bringing the total to R3.1 billion.

Allocations include:

• Energy: R1.3 billion for streetlight repairs and cable replacement.

• Roads: R814 million for pothole patching and road rehabilitation.

• Water and Sanitation: R449 million for leak repairs and sewer unblocking.

The City has also introduced a Sanitation Services Sustainability Model that combines hiring and acquiring chemical toilets to improve services in informal settlements and reduce long-term costs.

This renewed emphasis on maintenance is about restoring everyday dignity, with visible improvements in streetlights, potholes, leaks, and sanitation across the metro.

Moves Towards a Resilient and Reliable Metro…

Mayor Xhakaza concluded his address with a clear vision: Ekurhuleni is

confronting its past challenges with honesty, strengthening its finances with prudence, and accelerating service delivery with renewed energy.

“The state of governance in Ekurhuleni is stable, and our progress is undeniable. We are building a city that is resilient, responsive, and reliable,” he told residents. Through unified leadership, responsible financial management, and targeted delivery, the City is embarking on a Road to Renewal.

While challenges remain, the administration is moving forward with agility and determination to restore service delivery, uplift communities, and reinforce Ekurhuleni’s position as one of South Africa’s key metros.