MBABANE – The Municipal Council of Mbabane has revealed that government has reduced its outstanding property rates debt to the city by 23 percent, marking a significant improvement in the council’s financial recovery efforts for the 2024/2025 financial year.
The disclosure was made by the Council’s Chief Executive Officer, Gciniwe Fakudze, during the municipality’s Annual Meeting, where she outlined the city’s long-term financial strategy and plans to reduce dependence on property rates as the main source of revenue.
Fakudze said government’s rates debt to the city now stands at E64 750 590, down from E83 556 620 in the previous year. However, while the government’s debt decreased, private citizens and businesses owe more, with arrears rising by 12 percent to E52 143 644, compared to E46 372 387 in 2023/2024.
She noted that the city remains heavily reliant on property rates, which currently contribute over 90 percent of total revenue — a situation she described as unsustainable. The council plans to reduce this dependency to below 70 percent by 2029, while also improving its collection rate by 3 percent.
“Rates are the backbone of our revenue, but we cannot continue to depend on them to this extent,” Fakudze said. “In most countries, local authorities receive grants from national governments to ease the burden on ratepayers. Here, we rely almost entirely on property owners, and that must change if we are to strengthen service delivery.”
To achieve this, the council intends to diversify its income sources through new service charges, public-private partnerships, and investment-driven projects. Fakudze added that the council is exploring international financing options, including collaborations with the World Bank and other development agencies, although all external funding proposals must first receive government approval.
According to the municipality’s financial report for the year ending March 2025, the total amount owed to the council in unpaid rates stands at E116 893 234, combining both government and private debts.
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