STUTTERHEIM- Amathole District Municipality (ADM) Executive Mayor Cllr. Anele Ntsangani has announced the adoption of a balanced R2.809 billion budget with a zero deficit, describing it as a major milestone for a municipality emerging from years of financial intervention.
Delivering his final State of the District Address (SODA) of the current local government term at the Mzwandile Wilson Fanti Hall in Stutterheim on Friday, 24 July 2026 Ntsangani said the municipality had stabilised after four years under intervention and now positioned to exit Municipal Financial Recovery.
The budget, approved by the Provincial Treasury, is the first fully funded budget adopted by the municipality in several years.
“We have implemented key governance reforms that have strengthened the institution and restored financial stability,” Ntsangani told councillors, traditional leaders, government officials and community members.
He said the reforms included the appointment of 56 senior managers in terms of Sections 56 and 57 of the Municipal Systems Act, the implementation of a Municipal Standard Chart of Accounts (mSCOA)-compliant financial management system, relocation to more cost-effective municipal offices that have reduced rental costs by more than 50%, and the leasing of 83 new vehicles to replace an ageing municipal fleet.
Addressing ongoing financial pressures and service delivery challenges, the mayor stressed that responsible financial management remained central to the municipality’s recovery.
“Financial sustainability requires prudent financial management, where assets and liabilities are balanced to achieve a funded budget. We implemented four key strategies a structural review, improved governance and consequence management, enhanced revenue collection and the establishment of systems for long-term sustainability,” he said.
Despite the municipality’s reported progress, residents say significant service delivery challenges remain.
Ward 9 committee member Nonkosi Sibawu from Mgwali location welcomed improvements in water provision but urged the municipality to accelerate housing and infrastructure projects.
“There are temporary structures and they keep piling up and are not completed. We would love for them to finish those structures. Most importantly, we need RDP houses, better roads and streetlights because there is so much crime here. Those improvements would make a real difference,” Sibawu said.
Furthmore, South African Local Government Association (SALGA) president Cllr. Bheke Stofile described the address as evidence that the municipality is moving in the right direction after years of instability.
He commended both the political and administrative leadership for restoring governance and urged the municipality to maintain its momentum.
“We must create a platform at the national level so that municipalities have ownership and participation in energy generation,” Stofile said.
Looking ahead, Ntsangani identified economic development, tourism and environmental conservation as key pillars of future growth.
He highlighted the R81 Million Mthontsi Lodge Conference Centre project, the Eastern Cape Cabinet’s approval of the Amathole Biosphere Reserve application and the promotion of heritage tourism as strategic investments expected to stimulate economic activity and create employment opportunities across the district.
The mayor also reflected on ADM’s contribution to the District Development Model, including its participation in the Back-to-School programme. Through a partnership with Standard Bank, six schools in Amahlathi, Great Kei, Mnquma and Mbhashe local municipalities were identified to receive school shoes, bags and sanitary towels.
As he concluded his final State of the District Address of the current council term, Ntsangani said the municipality’s recovery demonstrated what could be achieved through disciplined financial management, improved governance and partnerships aimed at improving the lives of residents.
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