logo
R21 billion a month: The true cost of municipal workers

R21 billion a month: The true cost of municipal workers

IOL News2 days ago

Statistics South Africa's latest financial census reveals that municipalities spent a staggering R143 billion on staff salaries in 2024
Image: Sora.ai/IOL Graphics
A quarter of all the money spent by municipalities in South Africa last year went towards paying staff, an amounting to R143 billion of overall operating expenditure of R561.1bn.
Electricity purchases were the next biggest expense, followed by writing off unpaid debts, according to Statistics South Africa's 2024 financial census of municipalities released this week.
In Statistics South Africa's quarterly financial statistics of selected municipalities, also released on Thursday, showed that water sales went up 7.9% in March when compared with a year ago, while sales only increased 0.3%. This could well hint at the sheer volume of water that is lost through burst water pipes.
In terms of monthly electricity purchases, these increased 9.9%, with sales gaining 8.5% year-on-year in March.
Statistics South Africa's census also showed that South Africa's municipalities secured R576bn in revenue last year, while there was a total of R385.6bn.
The data also showed that, by the end of last June, municipalities owed their lenders, suppliers and other creditors a combined amount of R385.8bn, 7.9% more than a year ago.
The provinces which showed the highest percentage increases between 2023 and 2024 were: North West (15.9%)
Mpumalanga (13.2%)
Limpopo (10.8%)
The provinces which had the lowest percentage increases between 2023 and 2024 were: Western Cape (2.8%)
Eastern Cape (4.1%)
Out of the R561.1bn in expenses, the smallest item was paying councillors. According to Payscale, the average salary for a city councillor this year is R294 915 – and there are 9 473 councillors in 213 municipalities.
In March 2025, another Statistics South Africa print (quarterly financial statistics of selected municipalities) shows that councillor costs were R967 million for the month of March, while staff costs came in at R21 billion.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

SA's farming sector holds steady, but the mix is shifting
SA's farming sector holds steady, but the mix is shifting

IOL News

timea day ago

  • IOL News

SA's farming sector holds steady, but the mix is shifting

South Africa's agricultural sector remains one of the few areas of the economy to consistently generate jobs and income. Image: Nicola Mawson South Africa's agricultural sector remains one of the few areas of the economy to consistently generate both jobs and income – yet what gets farmed, where it's farmed, and how the money flows is shifting in notable ways. In the first quarter of the year, agriculture kept South Africa's economy afloat. Agriculture production increased 15.8%, adding 0.4 of a percentage point to gross domestic product (GDP) in a period when total GDP growth was just 0.1%. Without the boost from agriculture, GDP would have contracted by 0.3%, a Statistics South Africa publication noted. Although job numbers across the sector have remained broadly stable over the past five years at around 770,000, the make-up of agricultural employment is changing, Statistics South Africa data showed. Horticulture now accounts for the largest share of jobs, outpacing animal farming, which has seen a marked decline. And while cattle, sheep and poultry are still key contributors to farming income, field crops such as maize, wheat and soya beans are becoming increasingly prominent, especially in provinces like Free State and Mpumalanga, the agency's report into the sector for 2023 – it's latest such publication – found. Western Cape continues to punch above its weight, employing more people in agriculture than any other province, with Limpopo and KwaZulu-Natal following, Statistics South Africa indicated. But not all provinces have fared equally. KwaZulu-Natal, for instance, has shed a significant number of agricultural jobs since 2018, which is concerning given its strategic role in sugarcane production and access to export markets. Despite this, national income from agriculture is growing. In 2023, total industry income reached just under R500 billion, growing at almost 7% a year. Most of this comes from farming of animals, but mixed farming and horticulture are close behind, Statistics South Africa data showed. Interestingly, the strongest income growth came from agricultural services and fertiliser production, although this is a minuscule part of the sector, the data showed. On the crop side, the past six years have seen steady expansion. Field crops such as maize, wheat, and soya beans have all seen gains in both planted area and production volumes, Statistics South Africa said. Free State, in particular, continues to lead the country in maize output, while Mpumalanga is not far behind. Sunflower seeds, too, are becoming increasingly important, driven by demand for cooking oil and feedstock. Wheat production has jumped substantially, with Western and Northern Cape now dominating the national share. Sugarcane remains largely concentrated in KwaZulu-Natal and Mpumalanga and has seen a meaningful increase in output. However, not all crops are telling a growth story. Despite potatoes remaining the most widely planted vegetable crop, production volumes have slipped, along with yields per hectare. Similar trends are evident for onions and tomatoes. Cabbages are the exception as both planted area and production volumes are up. There are also clear provincial specialisations emerging. Free State leads not just in maize and potatoes but is becoming increasingly dominant in soya and sunflower too, the data indicated. Limpopo, while strong in tomatoes and onions, is contributing a growing share of national income despite employing a smaller slice of the labour force. Western Cape continues to deliver outsized returns, reflecting its dominance in fruit, wine and export-oriented crops as well as in value-added services tied to agriculture, Statistics South Africa found. IOL BUSINESS

R21 billion a month: The true cost of municipal workers
R21 billion a month: The true cost of municipal workers

IOL News

time2 days ago

  • IOL News

R21 billion a month: The true cost of municipal workers

Statistics South Africa's latest financial census reveals that municipalities spent a staggering R143 billion on staff salaries in 2024 Image: Graphics A quarter of all the money spent by municipalities in South Africa last year went towards paying staff, an amounting to R143 billion of overall operating expenditure of R561.1bn. Electricity purchases were the next biggest expense, followed by writing off unpaid debts, according to Statistics South Africa's 2024 financial census of municipalities released this week. In Statistics South Africa's quarterly financial statistics of selected municipalities, also released on Thursday, showed that water sales went up 7.9% in March when compared with a year ago, while sales only increased 0.3%. This could well hint at the sheer volume of water that is lost through burst water pipes. In terms of monthly electricity purchases, these increased 9.9%, with sales gaining 8.5% year-on-year in March. Statistics South Africa's census also showed that South Africa's municipalities secured R576bn in revenue last year, while there was a total of R385.6bn. The data also showed that, by the end of last June, municipalities owed their lenders, suppliers and other creditors a combined amount of R385.8bn, 7.9% more than a year ago. The provinces which showed the highest percentage increases between 2023 and 2024 were: North West (15.9%) Mpumalanga (13.2%) Limpopo (10.8%) The provinces which had the lowest percentage increases between 2023 and 2024 were: Western Cape (2.8%) Eastern Cape (4.1%) Out of the R561.1bn in expenses, the smallest item was paying councillors. According to Payscale, the average salary for a city councillor this year is R294 915 – and there are 9 473 councillors in 213 municipalities. In March 2025, another Statistics South Africa print (quarterly financial statistics of selected municipalities) shows that councillor costs were R967 million for the month of March, while staff costs came in at R21 billion.

Consumer prices in South Africa poised to rise amid global pressures and Middle East conflict
Consumer prices in South Africa poised to rise amid global pressures and Middle East conflict

IOL News

time2 days ago

  • IOL News

Consumer prices in South Africa poised to rise amid global pressures and Middle East conflict

Statistics South Africa (Stats SA) said on Wednesday that inflation was mainly driven by faster price increases for food and non-alcoholic beverages, housing and utilities, and clothing and footwear. Image: Ayanda Ndamane/Independent Newspapers. Consumer prices in South Africa are expected to tick upwards on the back of global pressures and rising oil prices in the wake of escalating war in the Middle East. This is despite the consumer price inflation (CPI) remaining unchanged at 2.8%, matching April's five-year low. Statistics South Africa (Stats SA) said on Wednesday that inflation was mainly driven by faster price increases for food and non-alcoholic beverages, housing and utilities, and clothing and footwear. However, Patrick Kelly, chief director for price statistics at Stats SA, said these increases were offset by slower inflation in alcoholic beverages and tobacco, restaurants and accommodation services, and personal care and miscellaneous services while transport prices declined sharply. 'Food & non-alcoholic beverages is the only category that contributed to the monthly increase in the CPI. Meat, specifically beef, is a key factor behind the rise in food inflation,' Kelly said. 'The annual rate for meat jumped from 3.0% in April to 4.4% in May. In April, monthly increases for beef products ranged from 6.2% to 11.9%.' Paul Makube,senior agricultural economist at FNB Commercial, said they were not surprised at this development as prices at producer level surged across the livestock complex with average class A beef carcass prices breaching the R70/kg level for the first time in history. Makube said prices accelerated despite the disease outbreaks that have now complicated the price outlook and the domestic supply dynamics. 'The foot‑and-mouth disease (FMD) outbreak is now in full swing, resulting in an export ban and a quarantine of affected establishments. The quarantine has created a short supply crunch due to the inability to slaughter,' Makube said. 'Further, the constrained import supplies due to avian influenza (AI)-induced ban on South Africa's biggest poultry meat supplier Brazil elicited further upside for prices particularly the mechanically deboned meat (MDM) which is used in the manufacturing of products such as polony, etc. SA is a net importer of MDM due to lack of domestic capacity.' However, Stats SA said fuel prices dropped by 1.1% between April and May, pulling the annual rate down to ‑14.9%. This was the largest annual decrease for fuel since October 2024 when the rate was -19.1%. Petrol is 15.9% and diesel 12.6% cheaper than a year ago. On a monthly basis, the CPI increased 0.2%, slightly below the 0.3% rise recorded in April, marking the lowest monthly increase in five months. The upside price pressures continued to outweigh fuel deflation as the core inflation, which excludes food and energy costs, was also steady at 3% year-on-year and remained its lowest reading since July 2021. This comes as Israel and Iran continue to exchange fire with missiles as hostilities escalate and the war enters the second week in the region while Israel also continues to bombard Palestine. Disruption in the Middle East could have far-reaching economic consequences as it could raise global oil prices, push inflation higher and force the South African Reserve Bank (Sarb) to pause its monetary policy easing. A key concern is potential disruption to the Strait of Hormuz, a critical chokepoint through which about 18–19 million barrels per day, or roughly 20% of global oil consumption, passes. Nedbank economist Busisiwe Nkonki said inflation could drift upwards in the second half of the year, but still averaging a muted 3.5% in 2025. However, Nkonki said risks to the inflation outlook have worsened in recent days, as the rand weakened and global oil prices jumped due to the conflict in the Middle East.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store