According to Ratings Afrika’s latest Municipal Financial Stability Index,Drakenstein, Hessequa, Overstrand, Saldanha Bay and Swartland, are regarded as South Africa’s top run municipalities across the country.
Good governance is increasingly becoming one of the strongest indicators of future construction activity in South Africa. Municipalities with sound financial management are generally better positioned to maintain infrastructure, expand bulk services and create the certainty needed to attract private sector investment. However, financial sustainability alone does not guarantee stronger construction growth. Factors such as population growth, housing demand, available land, strategic infrastructure and the scale of planned developments ultimately determine where the greatest opportunities lie. Based on an assessment of municipal finances, capital expenditure programmes and broader development pipelines, Swartland ranks as the municipality with the strongest construction growth potential over the next three to five years, followed by Saldanha Bay, Drakenstein, Overstrand and Hessequa. While Drakenstein currently has the largest and most established municipal construction programme, Swartland offers the strongest combination of urban expansion, housing growth and bulk infrastructure investment, with Saldanha Bay providing the greatest long-term upside should its major port, logistics and energy projects progress as planned.
Each municipality presents a distinct construction profile.
Attached is a full review of each municipality including a spreadsheet of capital expenditure trends over recent years.
Pulse – Construction growth outlook of SA’s top 5 best run municipalities
