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Tshwane Metro Approves 1,500+ New Stands Without Budget: What This Means for Your Rates and Services

27 June 2026 · 3 min read

Article image by Kefuoe Josenta
Image by Kefuoe Josenta

Pretoria, South Africa, MMN Correspondent: Imagine your city council approving over 1,500 new homes in your neighborhood without telling you how they plan to pay for the roads, water pipes, and electricity lines. That is exactly what happened recently in Tshwane, and it has residents and political parties asking some tough questions.

The Tshwane Metropolitan Municipality gave the green light to four land use applications in informal settlements: Refilwe, Zandfontein, Kameeldrift, and Atteridgeville Extension 19. These approvals came with powers of attorney to move forward with land formalization. But here is the catch: the council report did not include a single figure for infrastructure costs or confirm where the money would come from.

This matters because South Africa’s Municipal Finance Management Act (MFMA) is very clear. Section 19 says no capital project can start unless the funds are already in the budget. By approving these developments without showing the budget, the metro is walking a fine line between progress and financial risk.

Let us look at each project closely. In Zandfontein, 17 hectares of industrial land are being rezoned for homes. That sounds like a smart move for housing, but the official report does not mention whether an Environmental Impact Assessment was done. Under national law, changing land use from industrial to residential usually requires one. Without it, the city could face legal challenges or environmental problems down the road.

At Kameeldrift, the situation gets even more interesting. The city spent R3 million buying property there in April 2024. Yet that expense is completely missing from the council report that approved the development. If a city cannot track its own spending on a project, how can residents trust that their rates are being used wisely?

Then there is Atteridgeville Extension 19, which might be the most puzzling case of all. Infrastructure was installed back in 2017, but the area was never officially proclaimed as a township. Nine years later, the contracts with service providers have expired. There is no active agreement for water, sanitation, or electricity. Despite this, the council gave a power of attorney to the Gauteng Provincial Government without signing a formal intergovernmental agreement. This creates a gap where no one is clearly responsible for delivering basic services to future residents.

The Freedom Front Plus has raised concerns about what happens next. When land is formalized and development rights are transferred, the municipality becomes legally responsible for providing infrastructure and maintenance. These costs can easily run into hundreds of millions of rands. Without a budget, the metro would have to either cut other services or borrow money. Neither option is good for the city’s financial health.

This is not just a Tshwane problem. Across South Africa, municipalities have been struggling with similar issues. The Auditor-General’s 2024 report found that over 60% of local governments had irregularities in capital project planning. Many projects started without confirmed funding. This pattern shows a broader challenge in balancing the urgent need for housing with the discipline of financial planning.

Land formalization is a powerful tool for social equity. It gives people secure tenure, access to credit, and better living conditions. More than 4 million South Africans live in informal settlements, and formalizing their land rights can transform communities. But these benefits only work when projects are planned properly, funded adequately, and managed transparently. Rushing approvals without addressing infrastructure costs turns a good idea into a financial burden.

With municipal elections coming on 4 November 2026, voters are paying close attention to how their leaders handle public money. The Freedom Front Plus is making fiscal responsibility a central campaign issue, promising to reject projects that lack clear budgets. Their message is resonating with people who are tired of seeing rates increase while services stay the same.

For residents of Refilwe, Zandfontein, Kameeldrift, and Atteridgeville Extension 19, the promise of formal land titles is a big step forward. But the real test will come when the bills for roads, pipes, and power lines arrive. If the metro can show that every step is backed by real funding, these projects could become models for sustainable development. If not, the cost may fall on the very people these projects are meant to help.

The next few months will show whether Tshwane can balance its commitment to inclusive growth with its duty to manage public money wisely. As citizens prepare to vote, the choice is clear: support leaders who build with a plan, or accept promises without a price tag.