BUFFALO CITY, EASTERN CAPE — Buffalo City Municipality service delivery and governance are facing intense scrutiny as residents continue to raise concerns over failing basic services, delayed development projects, and soaring unemployment. During a recent expert panel discussion, stakeholders examined the stark reality on the ground and debated what needs to change to restore economic stability and public trust in the metro.
The panel featured insights from Hlaziya Solutions Director Paul Berkowitz, Nelson Mandela University’s Dr. Ongama Mtimka, Budget Justice Coalition’s Daniel Peter Al-Naddaf, COSATU’s Ondela Sokomani, and Border-Kei Chamber of Business representative Lizelle Maurice.
Financial Mismanagement and Service Delivery Failures
According to government expert Paul Berkowitz, the municipality has struggled significantly since the start of its current five-year administration in 2021. The metro has grappled with severe billing issues, poor revenue collection, and high levels of unaccounted-for water and electricity.
To address these shortfalls, the municipality has operated under a financial recovery program for much of the last five years. However, Berkowitz noted that efforts to improve revenue have sparked controversy. These include the highly debated rollout of prepaid electricity meters and complaints from businesses regarding unequal debt write-offs. Consequently, ratepayers’ associations and local businesses are increasingly protesting the inadequate delivery of basic services.
The SIU Probe and the Paradox of Wasteful Expenditure
The mismanagement of funds was further highlighted by glaring examples of wastage in capital projects, such as an abandoned swimming pool facility that consumed significant funds without completion. In response, the Special Investigating Unit (SIU) has received a presidential proclamation to investigate the municipality’s finances.
Daniel Peter Al-Naddaf from the Budget Justice Coalition emphasized that wastage—whether through corruption or unauthorized expenditure—poses a direct threat to the provision of socio-economic rights. While acknowledging the importance of the SIU proclamation, Al-Naddaf cautioned that such probes have not always yielded the promised returns necessary for revenue regeneration in the past.
Furthermore, he highlighted a broader systemic issue: a culture of austerity. Al-Naddaf explained that government agencies at all spheres are often functionally kneecapped by a lack of funds and staff. Paradoxically, this under-resourcing is a major risk factor for wasteful expenditure and underspending. He urged the government to balance consequence management with the adequate provisioning of funds to municipal departments.
Soaring Unemployment and the Threat of a Brain Drain
The socio-economic impact of these governance challenges is most visible in the metro’s employment statistics. Ondela Sokomani, Buffalo City Cluster COSATU Chairperson, revealed that the municipality’s unemployment rate currently sits at a concerning 30.5%.
This economic stagnation is triggering a brain drain, with skilled graduates contemplating relocating to economic hubs like Johannesburg and Cape Town. Sokomani pointed out that Buffalo City is home to five public institutions of higher learning, meaning the metro is producing skilled youth who deserve to participate in the local economy.
To combat this, COSATU is pushing for the accelerated revitalization of the Timbaza and forex factories. Additionally, the labor federation is urging the metro leadership to reduce the outsourcing of essential services—such as refuse collection, sewer and electricity network maintenance, and road rehabilitation. Sokomani argued that internalizing these services would create sustainable jobs, diversify business into townships and rural areas, and help lower the high cost of living.
The Need for Visionary Leadership and Investment
When it comes to attracting investment, Berkowitz noted that while historical sectors like automotive manufacturing require coordinated national and provincial strategies, a clean and well-functioning administration naturally attracts broader commercial investment. Seamless service delivery, he argued, is the true catalyst for business confidence.
Dr. Ongama Mtimka, acting director of the Raymond Mhlaba Centre for Governance and Leadership, echoed this sentiment. He stressed that the constitution mandates developmental local government, which requires visionary leadership and long-term focus. Despite enjoying political stability by not being a coalition municipality, Mtimka observed that Buffalo City’s leadership has lacked the stability and vision seen in cities like Cape Town. He pointed out that the metro’s operating and capital budget expenditures remain remarkably low, stifling economic stimulation and infrastructure investment.
Coalition Risks and Rural Development
Looking toward the future, the panel discussed the potential implications of a coalition government. Al-Naddaf warned that while coalitions might shift political dynamics, they often introduce fiscal instability. He cautioned that coalition environments can lead to short-term “vanity expenditure”—such as flashy infrastructure projects designed to distract from deeper fiscal issues—and result in poor long-term budget oversight.
Meanwhile, rural development remains a critical, albeit slow, priority. Sokomani noted that integrating rural villages into the metro’s economic framework requires a strong focus on agro-processing and the agricultural sector to ensure rural residents can participate productively in the economy.
Public Sentiment
The disconnect between government promises and the reality on the ground is clearly felt by the public. In a viewer poll conducted alongside the discussion, an overwhelming 91% of respondents identified governance failures as the primary cause of the Eastern Cape’s struggling unemployment rates and failing public services.
As the SIU investigation unfolds and municipal leadership faces mounting pressure, the residents of Buffalo City await tangible improvements in service delivery, accountability, and job creation.