Tshwane Overhauls Utilities for Better Service Delivery
The City of Tshwane has officially restructured its electricity, water, and sanitation departments into ring-fenced business units, meeting the National Treasury's 1 July deadline. This move is being celebrated as a significant step towards improved governance, enhanced service delivery, and long-term infrastructure resilience for all residents.
This sweeping reform is a direct response to the Municipal Finance Management Act (MFMA) and the 2021 Municipal Budget and Reporting Regulations. These regulations require large metros to separate operational finances from other city budgets, promoting greater transparency and accountability in how public funds are managed and allocated.
City Manager Johann Mettler emphasised that this change represents a fundamental shift in how Tshwane governs its basic services. "By establishing these business units, we're not just meeting national regulations – we're fundamentally improving how we deliver essential services to our communities," he stated.
Centralised Model for Enhanced Efficiency
The new structure replaces the city’s previous dual-operating model, which divided responsibilities between central and regional offices, often leading to delays and inefficiencies. The newly established Energy & Electricity and Water & Sanitation Business Units will now operate under a centralised structure, ensuring dedicated operational management, ring-fenced finances, and clearer lines of accountability.
"The smooth transition demonstrates our commitment to both good governance and improving the quality of life for our residents," Mettler added. He also highlighted the city's focus on performance-based incentives for service improvements, continued public participation in service reviews, and ongoing infrastructure upgrades.
A key motivation behind this reform is to secure access to National Treasury grants, which fund vital infrastructure upgrades and service delivery across Tshwane. This restructuring ensures that the city remains eligible for these crucial funds, enabling it to continue providing essential services to its residents. This is a positive step for Tshwane, and could be a model for other South African cities facing similar challenges.