Amahlathi municipality reports financial recovery, R314M infrastructure spend

STUTTERHEIM- Amahlathi Local Municipality says it has made progress in restoring its finances, rebuilding its operational capacity and accelerating infrastructure investment, with projects worth hundreds of millions of rands planned or under way across the municipality.

The municipality made the announcement during its fourth annual State of the Municipal Address(SOMA)at the Mzwandile Wilson Fanti Hall in Stutterheim on Wednesday, where Mayor Cllr. Nomakosazana Nongqayi outlined what she described as five years of efforts to rebuild the municipality under the theme “Restoration, Resilience and Renewal”.

Mayor Nongqayi said the municipality’s focus had been on restoring public trust, strengthening internal systems and creating a more sustainable local government.

“Restoration is about repairing trust, rebuilding systems and restoring dignity to our people. Resilience is about standing firm in the face of adversity, while renewal is about embracing hope, fresh energy and a forward-looking vision,” she said.

According to the municipality, it has strengthened its financial position by achieving a funded budget, improving revenue collection, reducing its Eskom debt and introducing cost-containment measures.

The municipality said these interventions were intended to provide a stronger foundation for sustainable service delivery and financial accountability.

A significant development has been the installation of 3,155 electricity smart meters through the RT29 Smart Meter Grant. Amahlathi said it had also received a further R5 Million allocation for additional installations.

The municipality has also sought infrastructure funding from sources beyond the Municipal Infrastructure Grant (MIG), including the Disaster Recovery Grant, Disaster Recovery and Rehabilitation Grant, Small Towns Revitalisation Programme and Integrated National Electrification Programme.

For the 2026/27 financial year, the municipality said expenditure on MIG and Municipal Disaster Recovery Grant projects is projected to approach R314 Million.

It also reported securing about R115 Million in new funding through disaster recovery and revitalisation programmes.

Among the projects highlighted in the address are: – Stutterheim street paving: R36 Million- Keiskammahoek town paving: R29 Million- Cathcart Town Hall upgrade: R16 Million- Keiskammahoek roads under the Small Towns Revitalisation Programme: R40 Million- Keiskammahoek Recreational Centre: R18.35 Million

The municipality said the projects were aimed at addressing infrastructure backlogs while supporting local economic activity.

Amahlathi also reported progress in strengthening its administration.

The municipality said a permanent chief financial officer had been appointed and that about 33 permanent employees had been recruited.

Its employment and skills-development programmes have, according to the municipality, created or supported: – 1,845 opportunities through the Expanded Public Works Programme;- 65 LGSETA learnerships;- 45 internships;- 12 work-integrated learning opportunities;- 135 environmental and waste-management jobs; and- 106 additional learnership opportunities.

Mayor Nongqayi further stated that, these programmes were intended to support skills development, particularly among young people, while strengthening municipal capacity.The municipality said it had also invested in rebuilding its vehicle and equipment fleet after years of shortages.

According to Amahlathi, some vehicles were lost during protest action while others became unusable because of mechanical breakdowns.

The municipality said new acquisitions included refuse collection vehicles, traffic vehicles, construction equipment, a cherry picker and other operational vehicles.

The equipment is expected to support refuse collection, road maintenance, traffic management and other essential municipal services.

The municipality used the address to highlight what it described as Amahlathi’s tourism and heritage potential. It said it had supported local crafters, tour guides, creatives, homestay establishments and community tourism organisations, including the Amahlathi Crafters Association.

Heritage and tourism signage has been erected at attractions including Xhologha Hiking Forest, Ntaba ka Ndoda Memorial Site, the Rev James Calata Statue, Gubu Dam, Cata Hiking Trail, St Matthews Mission and Cathcart Hiking Trail.

The municipality also highlighted the participation of local crafters at the National Arts Festival in Makhanda and the establishment of market days at Stutterheim Square as opportunities for local entrepreneurs and artisans.

Cllr. Nongqayi acknowledged the role of government departments and other stakeholders, including the Eastern Cape Department of Cooperative Governance and Traditional Affairs and the provincial Department of Transport.

The municipality said COGTA had supported the Stutterheim Master Precinct Plan and helped mobilise infrastructure funding, while the Department of Transport had provided construction plant through a memorandum of understanding and supported youth employment initiatives.

Looking ahead, Nongqayi said the municipality needed to consolidate the progress it had made through accountability, financial discipline, infrastructure investment and meaningful community engagement.

“Over the past five years, tremendous work has been done to restore the integrity of our municipality, to build resilience in the face of challenges and to renew our commitment to the people we serve,” she said.

She said the municipality’s stated priorities would need to translate into practical action to create a responsive and sustainable local government.

The address ended with a call for continued cooperation between communities, traditional leaders, government departments, businesses and other stakeholders.

Amahle July

02 October 2026

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