Northern Cape’s Small Municipality Revealed as the Top Spender per Resident

Picture Courtesy: (Moroela Media) Gamagara Municipality In the Northern Cape spends significantly more on its residents compared to other municipalities.

(The Post News)- A small municipality in Northern Cape province has emerged as the country’s highest spender per resident, according to the latest data from Statistics South Africa (Stats SA).

Gamagara, with a population of 29,580, allocated R23,201 per resident in 2022, significantly higher than the national average of R8,572.

This finding comes from Stats SA’s analysis of expenditure across South Africa’s 257 municipalities, which collectively spent R532 billion in 2022 on operational and capital expenditures.

Stats SA reported that Gamagara recorded a high value for the line item of ‘inventories losses or write-downs’ in 2022, which contributed significantly to its total expenditure.

The municipality’s high spending is not unprecedented, as it also led to per capita expenditure in a similar study using 2016 data.

Gamagara’s financial position is partly attributed to the town of Kathu, whose economy is mainly driven by Sishen, Kumba Iron Ore’s flagship mine. The town is known for attracting skilled workers and high-income earners.

According to the National Treasury’s Spatial Economic Activity Data dashboard, Gamagara ranks as the sixth wealthiest municipality in South Africa, with an average taxable income per resident of R27,929.

The Stats SA report highlighted Gamagara’s financial independence, noting that 90% of its revenue in 2022 was self-generated from sources such as property taxes, service charges, and fines.

This is notably higher than the national average of 73% and the small-town average of 62%.

On the other end of the spectrum, Nongoma municipality in KwaZulu-Natal spent just R1,389 per resident, the lowest in the country. Tokologo in the Free State ranked second highest at R14,749 per resident.

On a provincial level, Gauteng municipalities led with an average spend of R12,060 per resident, followed by the Western Cape at R10,411, while Limpopo recorded the lowest at R4,429.

However, Stats SA cautioned that the analysis excludes district municipalities, which could affect the overall picture, especially in rural areas where districts play a significant role in service provision.

The data revealed that significant metros are more likely to spend on residents than local municipalities, especially those in rural areas.

Despite its small population, Gamagara was the fourth-largest generator of revenue and spender in the Northern Cape province.