MAYOR XHAKAZA WELCOMES THE AFFIRMED CREDIT RATING AND COMMITS TO FINANCIAL STABILITY AND ENHANCED SERVICE DELIVERY IN THE CITY

I am pleased to welcome the latest credit rating announcement by Global Credit Ratings (GCR) Ratings, which affirms our municipality’s national scale long-term and short-term issuer ratings at BBB(ZA) and A3(ZA) respectively. The GCR Ratings Agency is exclusively contracted to provide solicited credit ratings for the City of Ekurhuleni. This affirmation, under the backdrop of an investment outlook, is a testament to the robustness and resilience of our financial management systems within the city.

Since recently taking office, my administration has committed to restoring political stability and confidence among our investors and various local and international stakeholders. This rating affirms that the markets recognise this administration’s ability to bolster financial sustainability and are optimistic about our renewed strategic direction. It is a signal that our governance practices are now on course towards a steady path to recovery.

The City of Ekurhuleni has managed to balance its income and expenditure, preventing further erosion of our financial standing. Our collaborative efforts within Council have yielded tangible results, as evidenced by our third-quarter performance. We achieved an enhanced overall collection rate of 90.7%, and we anticipate a gradual increase over the coming months. This marks a significant improvement and reflects our commitment to strengthening the city’s financial health. These achievements are essential as we navigate the macroeconomic challenges posed by global uncertainties, including the conflicts in the Middle East and Ukraine.

Looking ahead, our focus remains on enhancing service delivery and infrastructure development while managing our financial resources prudently. We are determined to address the liquidity challenges and maintain our commitment to settling debts within agreed contractual terms, which has been crucial in maintaining service continuity and trust with our service providers.

We are aware of the areas requiring improvement, such as increasing our days of cash coverage and enhancing our capital expenditure. My administration has actively embarked on finding working strategies to bolster our financial health and ensure sustainable development. Our efforts are geared towards stabilising and eventually improving our ratings outlook.

This credit rating, arriving shortly after my election as Mayor, reinforces the belief that political stability can significantly influence financial and operational governance. I am optimistic about Ekurhuleni’s future and confident that with continued focus and dedication, we will achieve our goals of financial sustainability and service delivery excellence.

I wish to congratulate the leadership of the administration, under the City Manager, Dr Imogen Mashazi, for her resilience during the protracted period of political uncertainty and numerous economic challenges.

Ald. Nkosindiphile Xhakaza

Executive Mayor of the City of Ekurhuleni