Mangaung’s investment potential crushed by poor leadership

Issued by Andre Snyman – DA Councillor Mangaung Metropolitan Municipality
25 Jun 2025 in Press Statements

By Andre Snyman | DA Councillor Mangaung Metropolitan Municipality

Note to editors: Please find attached English and Afrikaans soundbites by Cllr Andre Snyman and Sesotho soundbite by Cllr Kabelo Moreeng

The Democratic Alliance (DA) will persist in holding the Mangaung Metro Municipality accountable by pushing for tangible strategies to restore and maintain critical infrastructure, reduce excessive taxes, and address service delivery failures. These measures are essential to making the Metro attractive for local and international investment.

At the recent Property Indaba hosted by the municipality on 17 January 2025, the disparity between Mangaung’s enormous investment potential and its dire governance became starkly evident. While Mangaung is geographically positioned as a prime location for development, the leadership of the Executive Mayor, Gregory Nthatsi, has proven to be a significant obstacle for prospective investors.

The Indaba revealed glaring shortcomings in the municipality’s approach. Despite recognising challenges such as the country’s highest property tax rates, unaffordable land prices, and crumbling infrastructure, the Metro leadership presented no actionable plan to resolve these issues. The lack of vision and failure to prioritise sustainable solutions erodes trust among investors and developers.

Multiple stakeholders at the event highlighted the municipality’s failure to provide even basic services or maintain infrastructure. High taxes and service fees further deter potential investment, compounding the region’s economic stagnation. Meanwhile, Metro CFO Zuziwe Thekisho defended the excessive rates and taxes as essential for balancing the budget. Yet, as attendees pointed out, residents and businesses cannot bear the weight of these unreasonable levies, particularly in a Metro marked by one of the highest levels of inequality globally.

Paul Jackson, CEO of Trust for Urban Housing Finance (TUHF), underscored the main impediments to investment, including:

  • Unaffordable property rates and service fees have risen disproportionately compared to average income increases.
  • Rampant corruption that stifles economic growth.
  • Ineffective urban management, marked by neglected infrastructure, unenforced by-laws, and poor financial practices.

Mangaung Metro embodies these failings, with no evidence of a plan to reverse its decline. Instead, residents shoulder the brunt of this mismanagement, enduring unreliable services and a dwindling quality of life.

The DA remains committed to advocating for a clear, results-driven approach to these challenges. We will continue to hold the municipality accountable, proposing practical solutions such as capping property taxes, ensuring budget transparency, and prioritising infrastructure upgrades. The ANC’s repeated failures have proven costly for Mangaung, but dignity and opportunity can be restored to our Metro with the DA’s leadership.