STLM Budget Good for our Economy? 

Steve Tshwete Local Municipal officials have presented their draft annual budget for the 2025/26 financial year. 

The shock of last year’s property value adjustment is starting to have an impact on commercial businesses. Many landlords are finding it difficult to pass on the property tax increase to their tenants. However, the impact on occupancy is already being felt. How much vacant commercial rental space is there? The increase in property tax by a further 4% will push up costs even further.  

Add to the above operating costs the increase in electricity prices, winter tariffs and the threat of load shedding and the question arises how businesses can reduce their input costs. STLM should bear in mind that if a line item becomes too expensive, companies will cut its use. Therefore, it is a risk income for STLM, and they should not rely on the companies to continue to pay without finding ways to reduce costs. 

For the first time in years, perhaps decades, STLM’s growth rate has dropped by 0.5%. What are the municipality’s administration and councillors doing to protect businesses and ultimately jobs in our town? Mayor Masilela said that businesses should help with some of STLM’s capital projects. 

Electricity, water infrastructure and our roads are some of the key indicators that will grow the economy. Now, SANRAL maintains many of our key routes.  Our experience with the R555’s maintenance between Middelburg and Witbank is a prime example of our concern. 

The only way our town can survive and thrive in the next five to ten years is to have an open and honest relationship between STLM and the business community. MCCI members pushed for a closer relationship and tighter control of capital contracts to ensure fiscal control. All of us are residents and all of us are impacted by our municipal services and infrastructure.