… AND ALSO REPORTS HIGH ORGANISATIONAL AND GOVERNANCE PERFORMANCE
MBABANE – The Municipal Council of Mbabane maintained a positive overall financial position during the 2025/26 financial year while increasing expenditure on key capital projects like roads, street maintenance and drainage, according to its Annual Financial Statements.
Expenditure on road rehabilitation, street maintenance and drainage increased to E21.90 million during the year, from E15.77 million in 2024/25, an increase of approximately 39 per cent. The increase in expenditure was directly linked to the Municipality’s intensified investment in roads, drainage and other key infrastructure projects, as well as its response to infrastructure damage and weather-related emergencies, contributing to the E1.08 million operating deficit recorded during the year. Despite recording an operating deficit of E1.08 million, the Council ended the year with an overall surplus of E6.88 million, supported by net finance income of E7.96 million.
The increased expenditure supported a range of infrastructure projects and maintenance interventions across Mbabane, while also enabling Council to respond to damage caused by severe weather.
Of particular reference to additional work the Municipality undertook on an emergency basis, which increased its maintenance expenditure, were vegetation and grass cutting for the following streets and roads, namely Lusutfu, Mhlambanyatsi, Sozisa, Sibebe, Mbangweni Avenue, Gcumgcum, Makholokholo Road, Fonteyn Road and Nercha Road. The Municipality also cleared vegetation along 27 streets and areas. The Municipality also undertook pothole patching on 21 roads, including Makholokholo, Eveni, Mahhwalala and Msunduza, to name but a few.
Through the period under review, the Municipality completed approximately five kilometres of road rehabilitation, including drainage improvements and walkways, while 40.7 kilometres of roads underwent grading and re-gravelling. A further 43.3 kilometres of drainage was cleaned, particularly in areas prone to flooding and where drainage problems could result in damage to property and risks to residents.
Council also completed drainage construction and culvert installation at Mandanda, Kamhlaba and Sir Robert Crydon, while targeted improvements were undertaken at the Mdlebe/Mahala Street intersection in Ward 5, where severe potholes had developed. The Siphetfo Street footbridge was also completed, with maintenance undertaken on other footbridges in Manzana, SOS and Fonteyn.
General road maintenance remained another significant area of expenditure, with pothole patching covering 6,048 square metres at a cost of E5.61 million during the financial year. Council also undertook approximately 142 kilometres of vegetation clearance along public areas, helping to maintain road verges and improve visibility and safety.
The results, for the financial year ended 31 March 2026, reflect a Municipality that managed its operating expenditure while maintaining essential services through investments in infrastructure and strengthening revenue collection.
The operating position saw the Municipality continue to provide essential services while responding to significant weather-related and infrastructure challenges. The city subsequently entered into a self-declared state of emergency to address the challenges, including the mobilisation of financial resources.
The E1.08 million operating deficit therefore needs to be viewed within the broader operating environment in which the Municipality continued to maintain essential services while responding to significant infrastructure challenges.
A STRONGER REVENUE POSITION FOR MBABANE
The Municipality recorded assessment rates revenue of E164.90 million during the 2025/26 financial year, compared with E155.86 million in the previous financial year.
Private-sector assessment rates increased from E85.89 million to E91.59 million, while government assessment rates increased from E65.02 million to E67.90 million. Penalties and interest also increased from E4.95 million to E5.41 million.
Overall revenue increased to E176.02 million from E167.08 million in the previous year, reflecting continued efforts to strengthen revenue collection and maintain the Municipality’s financial base.
The improved revenue position was complemented by stronger finance income during the year. Finance income increased to E10.32 million from E6.82 million, while finance costs declined to E2.37 million from E3.46 million, resulting in net finance income of E7.96 million compared with E3.36 million in 2024/25.
While the Council recorded an operating deficit of E1.08 million, this was not reflective of the Municipality’s overall financial position at year-end. Cash and cash equivalents increased from E65.64 million to E75.93 million, while total borrowings declined by approximately 37 per cent. The Municipality says the distinction between its operating result and its overall financial position is important when assessing the financial year.
STRONG ORGANISATIONAL AND GOVERNANCE PERFORMANCE
The Municipality’s financial performance was accompanied by continued attention to organisational and governance matters during the year.
The Annual Financial Statements received an unmodified audit opinion from PricewaterhouseCoopers, confirming that the financial statements were prepared, in all material respects, in accordance with the stated basis of accounting.
Council also maintained a strong balance sheet, with total assets increasing from E801.15 million to E801.99 million and total equity increasing from E719.54 million to E726.42 million..
The Council’s financial position was further supported by its ability to generate positive cash flows from operations, with net cash inflow from operating activities of E31.11 million during the year.
The Annual Financial Statements state that the Councillors believe the Municipality has adequate financial resources to continue operating for the foreseeable future and that Council remains satisfied that it is in a sound financial position with access to sufficient borrowing facilities.
Overall, the 2025/26 results show a Municipality that continued investing in its infrastructure, maintaining essential services, strengthening revenue collection and reducing its debt exposure, while navigating significant operational and weather-related pressures during the financial year.
