- Roads, drainage and maintenance spending jumps 39% to E21.9 m
- Council’s overall revenue increased to E176.02 m from E167.08 m in 2024/25
The Municipal Council of Mbabane increased its investment in roads, drainage and street maintenance by almost 40 per cent during the 2025/26 financial year, even as the capital city dealt with severe weather damage and recorded an operating deficit of E1.08 million. This is according to figures shared in a press release by the Municipal Council.
The municipality spent E21.90 million on road rehabilitation, street maintenance and drainage during the year ended March 31, 2026, up from E15.77 million in the previous financial year.
The additional E6.13 million in spending represents an increase of approximately 39 per cent and reflects intensified infrastructure investment as well as emergency maintenance work following weather-related damage. 
Despite the operating deficit, Mbabane closed the financial year with an overall surplus of E6.88 million, supported largely by net finance income of E7.96 million.
The figures present a more nuanced picture of the city’s finances, with the operating shortfall occurring alongside stronger cash reserves, declining borrowings, increased revenue and a balance sheet that remained solid.
The municipality’s increased infrastructure expenditure covered a wide range of interventions across the city. Approximately five kilometres of roads were rehabilitated during the year, including drainage improvements and walkways, while 40.7 kilometres of roads underwent grading and re-gravelling.
A further 43.3 kilometres of drainage was cleaned, particularly in areas vulnerable to flooding and where blocked or inadequate drainage could expose properties and residents to damage and safety risks.
The municipality also completed drainage construction and culvert installation at Mandanda, Kamhlaba and Sir Robert Crydon, while targeted repairs were undertaken at the Mdlebe/Mahala Street intersection in Ward 5, where severe potholes had developed.
The Siphetfo Street footbridge was completed during the year, while maintenance was also carried out on footbridges in Manzana, SOS and Fonteyn.
Pothole repairs alone accounted for significant expenditure. Council patched approximately 6,048 square metres of potholes at a cost of E5.61 million during the financial year, highlighting the growing cost of maintaining an ageing urban road network.
Emergency maintenance also added to the pressure on the municipality’s operating budget. Vegetation and grass cutting were undertaken along Lusutfu, Mhlambanyatsi, Sozisa, Sibebe, Mbangweni Avenue, Gcumgcum, Makholokholo Road, Fonteyn Road and Nercha Road, among other areas.
Council said vegetation was cleared along 27 streets and public areas, while pothole patching was carried out on 21 roads, including Makholokholo, Eveni, Mahhwalala and Msunduza.
Across the year, approximately 142 kilometres of vegetation clearance was undertaken along public areas, helping to improve visibility, maintain road verges and strengthen road safety.
The scale of the maintenance response came against the backdrop of severe weather and infrastructure challenges that eventually led the municipality to declare a state of emergency, requiring the mobilisation of financial resources.
Council says the E1.08 million operating deficit should therefore be viewed against this wider environment, where it continued providing essential services while absorbing the additional cost of responding to infrastructure damage and weather-related emergencies.
The financial position was nevertheless strengthened by improved revenue collection and investment returns.
Overall revenue increased to E176.02 million from E167.08 million in 2024/25, while assessment rates revenue rose from E155.86 million to E164.90 million.
Private-sector assessment rates increased from E85.89 million to E91.59 million, while government assessment rates rose from E65.02 million to E67.90 million. Penalties and interest also increased from E4.95 million to E5.41 million.
Moreover, finance income provided another important buffer, increasing from E6.82 million to E10.32 million, while finance costs fell from E3.46 million to E2.37 million.
his resulted in net finance income of E7.96 million, compared with E3.36 million in the previous financial year.
The stronger financial position was also reflected in the municipality’s cash holdings. Cash and cash equivalents increased from E65.64 million to E75.93 million, while total borrowings declined by approximately 37 per cent.
Council maintains that the distinction between its operating result and its overall financial position is important when assessing the year’s performance.
The municipality ended the year with total assets of E801.99 million, up slightly from E801.15 million, while total equity increased from E719.54 million to E726.42 million.
Net cash generated from operating activities amounted to E31.11 million during the year, further supporting the municipality’s ability to finance its ongoing operations.
The Annual Financial Statements received an unmodified audit opinion from PricewaterhouseCoopers, confirming that the financial statements were prepared, in all material respects, in accordance with the stated basis of accounting.
The Council says it remains satisfied that it is in a sound financial position and has adequate financial resources to continue operating for the foreseeable future, with access to sufficient borrowing facilities.
