MBABANE – The Municipal Council of Mbabane increased its investment in roads, drainage and street maintenance during the 2025/26 financial year, spending E21.90 million on the infrastructure priorities despite recording an operating deficit of E1.08 million.
According to the Municipality’s Annual Financial Statements for the year ended March 31, 2026, expenditure on road rehabilitation, street maintenance and drainage increased from E15.77 million in 2024/25, representing a 39 per cent rise.
The Municipality attributed the increased expenditure partly to intensified infrastructure investment and emergency responses to damage caused by severe weather.
Despite the operating deficit, Council ended the financial year with an overall surplus of E6.88 million, supported by net finance income of E7.96 million.
During the year, approximately five kilometres of roads underwent rehabilitation, including drainage improvements and walkways, while 40.7 kilometres were graded and re-gravelled.
A further 43.3 kilometres of drainage was cleaned, particularly in areas vulnerable to flooding.
Council also completed drainage construction and culvert installation at Mandanda, Kamhlaba and Sir Robert Crydon, while improvements were carried out at the Mdlebe/Mahala Street intersection in Ward 5.
The Siphetfo Street footbridge was completed, while maintenance was undertaken on footbridges in Manzana, SOS and Fonteyn.
Pothole repairs remained another major expenditure. Council patched approximately 6,048 square metres of potholes at a cost of E5.61 million.
Vegetation clearance was also intensified, with about 142 kilometres covered along public areas. Emergency vegetation and grass-cutting work was undertaken along several roads, including Lusutfu, Mhlambanyatsi, Sozisa, Sibebe, Mbangweni Avenue, Gcumgcum, Makholokholo, Fonteyn and Nercha roads.
The Municipality also cleared vegetation along 27 streets and areas and carried out pothole patching on 21 roads.
Stronger revenue position
The financial statements show an improvement in the Municipality’s revenue position.
Assessment rates revenue increased from E155.86 million to E164.90 million, with private-sector assessment rates rising from E85.89 million to E91.59 million. Government assessment rates increased from E65.02 million to E67.90 million.
Overall revenue grew from E167.08 million to E176.02 million.
Finance income also increased significantly, rising from E6.82 million to E10.32 million, while finance costs declined from E3.46 million to E2.37 million.
The Municipality’s net finance income therefore increased to E7.96 million from E3.36 million in the previous financial year.
Meanwhile, cash and cash equivalents increased from E65.64 million to E75.93 million, while total borrowings declined by approximately 37 per cent.
Positive governance performance
The Municipality also maintained a strong financial and governance position during the period under review.
Its Annual Financial Statements received an unmodified audit opinion from PricewaterhouseCoopers, confirming that the statements were prepared, in all material respects, in accordance with the stated basis of accounting.
Total assets increased slightly from E801.15 million to E801.99 million, while total equity rose from E719.54 million to E726.42 million.
Council also recorded a net cash inflow from operating activities of E31.11 million.
The financial statements state that Councillors believe the Municipality has adequate financial resources to continue operating for the foreseeable future and remains in a sound financial position, with access to sufficient borrowing facilities.
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