Several issues have arisen at the Steve Tshwete Local Municipality, including two consecutive qualified audits, strikes, and rumours of corruption, among others. For business, we do not want to be part of any of the above. Businesses want a reliable environment in which they can operate without jeopardising their future. 

Overall, the increase in property taxes has had a negative impact on business sustainability. In summary, the recent property tax increases in STLM have raised fixed overheads, reducing business profitability. This has caused reduced cash flow and financial resilience, especially for SMEs. It has increased uncertainty and eroded confidence in municipal financial management. The current situation has forced businesses to compensate for deteriorating basic services and has contributed to a slowdown in expansion, hiring, and reinvestment. 

The underlying issue with rising property taxes is that they are occurring without commensurate improvements in infrastructure or service delivery, which amplifies the negative effect on business sustainability. The municipality’s cumulative tariff increases and unpredictable billing anomalies are placing significant strain on SMEs and larger firms. 

MCCI proposes that a City Improvement District (CID) be established in the Vaalbank, SAE industrial area. The CID model in Rosslyn can be duplicated to protect our industrial area. Although there will be an additional cost to be part of the CID, this fee can be reduced once the area is operating optimally. 

Members will be informed of the next step in how we plan to proceed with this proposal. If you need more information, please contact Janie Boshoff at secretary@middelburgchamber.com