Mbabane – The Municipal Council of Mbabane recorded a E6.88 million surplus for the 2025/26 financial year, an increase of 15 per cent from the E5.98 million recorded in the previous year.
The municipality also increased its cash and cash equivalents by 16 per cent to E75.93 million, while rates collection improved from 82 per cent to 83 per cent during the financial year ended March 2026.
The results were presented on Friday, September 18, 2026, during Council’s Annual General Meeting (AGM) held at Emafini Country Lodge, where the municipality accounted for its financial performance, procurement, governance and service-delivery activities.
Council generated total income of E176.02 million during the year, compared with E167.08 million in 2025, representing growth of about five per cent.
Private rates remained the municipality’s largest source of income at E91.59 million, accounting for 52 per cent of total income. Government rates contributed E67.90 million, while rates penalties and interest amounted to E5.41 million.
Other operating income contributed E11.12 million, including E4.41 million from refuse collection.
Council also generated E31.11 million in net operating cash inflows, compared with E35.24 million in the previous financial year.
Finance costs declined from E3.46 million to E2.37 million, while finance income increased from E6.82 million to E10.32 million, representing a 51 per cent increase.
The municipality’s cash-cover position also improved from four months to five months.
Despite the improved financial position, Council reported that outstanding rates remained a concern, standing at E110.74 million at the end of the financial year.
Private ratepayers accounted for E59.37 million of the arrears, while Government rates stood at E51.37 million.
Council said it recovered more than E67 million in outstanding rates during the year. Government accounted for more than E54 million of the amount recovered, while private ratepayers accounted for more than E13 million.
The municipality recorded 490 payment arrangements with ratepayers, covering approximately E19.8 million, with a 99 per cent compliance rate.
It also resolved 33 disputed accounts amounting to E233 000.
To improve communication with ratepayers, Council sent more than 56 000 SMS reminders, recorded 4 612 e-statement accounts and resolved 519 enquiries.
Council further reported that E28 million in outstanding rates had been handed over for legal collection after internal collection efforts had been exhausted, in accordance with the Rating Act.
Expenditure rises
While the municipality recorded a surplus, its operating costs increased from E164.46 million to E177.10 million.
Personnel costs amounted to E60.70 million, depreciation was recorded at E16.04 million, while other operating costs totalled E100.36 million.
Road rehabilitation and drainage accounted for E21.90 million, while waste management, security, cemeteries and markets accounted for E19.79 million.
Utilities consumed E12.31 million, with another E7.15 million spent on town planning, community and public health programmes.
Council’s non-current assets remained relatively stable at E604.17 million, while financial assets increased by 10 per cent to E30.68 million.
Borrowings as a percentage of assets also declined from 3.4 per cent to 2.1 per cent.
The financial statements received an unqualified audit opinion.
Mayor Thulani Mkhonto said the financial statements reflected Council’s commitment to sound financial management, regulatory compliance and good governance.
“I am especially honoured to announce that the audited financial statements we are presenting to you today have been officially reviewed and approved by the Minister for Housing and Urban Development,” Mkhonto said.
He said Council remained focused on sustainable development, improved municipal service delivery, transparency and accountability.
“As custodians of our beloved capital city, our primary mission remains steadfast: to drive sustainable development, enhance municipal service delivery, and uphold absolute transparency and accountability in all our operations,” he said.
Procurement records 91 per cent
Council also recorded a 91 per cent procurement performance during the financial year.
The municipality had an approved annual procurement plan valued at E164 million.
During the year, it processed 11 competitive tenders valued at E54 million and 3 690 quotations worth more than E73 million.
Council also paid 894 invoices totalling E96 million.
The procurement performance formed part of the municipality’s broader governance assessment, which was recorded at 93 per cent.
The governance assessment covered effective political leadership, conflict management, relationship management and compliance with Council standing orders on conduct.
It also assessed procurement management, performance management systems, competency-based recruitment of Council management, and land and human settlements management.
An independent organisational audit gave Council a 90 per cent organisational assessment.
Residents raise concerns
Despite the financial results presented by Council, residents used the AGM to raise questions about accountability and service delivery.
Walter Banert challenged the accuracy of the financial report, saying residents received it only four days before the meeting instead of the required 14 days. He alleged that the late distribution was deliberate.
Banert also questioned when vendors operating around the bus rank would receive proper shelter.
He further asked where sanitation facilities were for vendors selling grilled maize along Mbabane’s streets and main roads.
Banert questioned the integrity of the Municipal Council, citing the absence of minutes from the previous meeting and alleging that some concerns previously raised by residents had not been addressed.
The concerns were raised as Council presented improved financial indicators, including the E6.88 million surplus, increased cash reserves and improved rates collection.
Council also reported the installation of a 5G network and 60 security cameras in the Central Business District.
The cameras are linked to a control room which Council said is equipped with modern equipment and is manned by members of the Royal Eswatini Police Service, with daily reports generated.
Council reported that 103 liquor outlets were licensed within the city, of which 41 were described as non-conforming because they were located within residential areas.
Mkhonto said the AGM provided an opportunity for Council to reflect on its achievements, account for resources and consider priorities for the development of Mbabane.
He said Council remained committed to its vision of “Mbabane – The Nation’s Smart Capital.”
The financial year therefore ended with Council reporting a E6.88 million surplus, stronger cash reserves, improved rates collection, a 91 per cent procurement performance and positive governance and organisational assessments, while residents raised questions about the municipality’s responsiveness and accountability.
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