Mini-budget highlights Sol Plaatje’s revenue progress as smart meter funding grows

SOL PLAATJE Municipality has received a mention in the national mini-budget for progress in revenue collection, as government commits an additional R3.5 billion to expanding the roll-out of municipal smart meters.

Delivering the Medium-Term Budget Policy Statement in Parliament on Wednesday, October 21, Finance Minister Enoch Godongwana cited Sol Plaatje, Kannaland and Bela-Bela as examples of successes in revenue collection.

The additional funding is for the national smart metering programme over the medium term and comes on top of R2 billion already allocated. Godongwana said municipalities were also being encouraged to reinvest revenue from water, electricity and waste services into the infrastructure supporting those services.

The mini-budget also offered temporary fuel levy relief for households and businesses, alongside a renewed focus on infrastructure investment and ensuring that government spending translates into better services and economic opportunities.

In reaction to the mini-budget, experts in personal finance, youth employment and energy welcomed aspects of the announcements but stressed that implementation would determine their impact on households and businesses.

David McDonald, CEO of SolarAfrica, welcomed the additional smart meter funding, saying better revenue collection was essential to the financial sustainability of electricity supply.

“Improving revenue collection is critical because when municipalities and Eskom cannot recover the cost of electricity supplied, the financial burden ultimately falls on paying customers.”

He said improved collections, together with reinvestment in electricity infrastructure, were needed to ease pressure on tariffs over time.

For motorists and businesses, the most immediate announcement was a temporary reduction in fuel levies.

From November 4 to December 1, the petrol levy will be reduced by R1.50 a litre and the diesel levy by R3 a litre. The relief will then taper to R1 a litre for petrol and R1.50 a litre for diesel until January 5, 2027. The intervention is valued at R10 billion.

However, a levy reduction does not guarantee an equivalent decrease in pump prices. Other movements in the monthly fuel price calculation could offset some or all of the benefit.

For someone buying 50 litres of petrol, the initial levy reduction represents R75 less than they would otherwise pay, with all other factors unchanged.

Jurgen Eckmann, wealth manager at Consult by Momentum, cautioned against treating the temporary measure as lasting household budget relief.

“Government’s books are healing faster than most households’ budgets.”

He urged consumers to keep the expiry date in mind when planning their spending.

“And the relief tapers in December and ends on 5 January, right when January’s bills land. Don’t plan your budget around it.”

The relief comes against a weaker economic outlook. National Treasury has lowered its growth forecast for 2026 to 1.2%, from the 1.6% projected in February, even as its tax revenue estimate has improved.

Eckmann encouraged households to build emergency savings where possible and preserve their two-pot retirement savings for genuine financial emergencies.

For Nkosinathi Mahlangu, youth employment and entrepreneurship specialist at the Momentum Group Foundation, the central question was whether infrastructure investment would create meaningful opportunities for young people.

“But infrastructure spending does not automatically translate into youth employment. We need deliberate mechanisms to connect young people to these projects through apprenticeships, technical training, local procurement and entry-level employment opportunities.”

He called for clearer reporting on completed projects, skills development and jobs, rather than measuring progress mainly through the amount of money spent.

That concern was reinforced by government’s own review of infrastructure conditional grants. Between 2017/18 and 2023/24, national government transferred R887 billion through these grants to provinces and municipalities. The review found that, although most funds were spent, projects were often delayed, incomplete or failed to deliver their intended benefits.

Mahlangu said stronger accountability should extend to youth employment, including measuring how many young people gained skills, secured work or established sustainable businesses.

He also called for procurement opportunities for qualifying youth-owned enterprises.

On energy, McDonald welcomed progress towards establishing the Credit Guarantee Vehicle, intended to help attract private investment into infrastructure.

Godongwana said the vehicle had been incorporated in August and had received conditional capital commitments of US$553 million from development partners, including the World Bank. It is working towards becoming operational in 2027.

McDonald said expanding transmission infrastructure was essential to connecting more private generation and making competitively priced electricity available to businesses.

He also welcomed the continued commitment to restructuring Eskom and establishing an independent transmission operator, while calling for clearer implementation timelines.

“Expanding the grid, improving revenue collection and introducing meaningful market competition are what will ultimately determine whether South African businesses can access electricity at prices that allow them to grow.”

Other national funding announcements included: