When you think about what makes a place work, it usually comes down to the basics—clean water running when you turn on the tap, lights that stay on, roads that do not swallow your car whole. In South Africa, municipalities handle these fundamentals, but the gap between the best and worst performers can feel like comparing two different countries entirely.
This year’s data from Good Governance Africa’s Governance Performance Index, alongside Ratings Afrika’s Municipal Financial Sustainability Index, paints an interesting picture. Some municipalities have figured out the formula: consistent service delivery, finances that actually make sense, and communities where people can build decent lives. Others are still struggling with the basics. What separates them?
1. City of Cape Town
Cape Town sits at number one, which surprises exactly no one who has spent time comparing it to other metros. Over 95 percent of households get piped water and electricity—numbers that sound basic until you remember they are actually exceptional by South African standards. The economy brings in more than R400 billion annually through tourism, tech companies, and a port that never sleeps.
What makes Cape Town different is not just the infrastructure spending. It is the life expectancy hitting 78 years, nearly a decade higher than the national average. Healthcare access plays a huge role there. The MyCiTi bus system, while sometimes criticized for limited routes, has changed how nearly five million residents move around the city. Not perfect, but functional.
2. Saldanha Bay
Up the coast, Saldanha Bay tied for first place among local municipalities in the 2025 financial sustainability rankings with a score of 74 out of 100. For a town many South Africans could not point to on a map, that is remarkable. The fishing industry still matters here, but renewable energy projects have transformed the local economy. Unemployment under 15 percent puts most other municipalities to shame.
Walking through Saldanha Bay, you notice the upgraded harbor facilities and how clean the beaches stay despite industrial activity. The green hydrogen projects launching here could position this town as an unexpected player in South Africa’s energy transition. Sometimes the most interesting development stories come from places you least expect.
3. Swartland
Agriculture drives Swartland’s economy—wheat fields and vineyards stretching as far as you can see. But calling it just a farming community misses what makes it special. This municipality achieved zero irregular expenditure in 2025, meaning every rand went where it should have gone. When last did you hear that about a South African government entity?
Solar panels on rural schools and broadband reaching isolated farms show how infrastructure investment can work when properly executed. Life expectancy of 76 years in what is essentially farmland demonstrates that rural does not have to mean underserved. Drought remains a constant threat, but water-efficient farming technologies have turned a crisis into an opportunity for innovation.
4. Overstrand
Hermanus and the surrounding Overstrand region pull off a tricky balance. Marine conservation matters here—whale watching brings tourists from everywhere—but so does economic growth at 4 percent yearly. Twelve straight years of clean audits means someone has been watching the books carefully, which apparently makes a difference.
Sanitation access above 98 percent prevents the waterborne disease outbreaks that plague less fortunate areas. Tech startups have started clustering here alongside the traditional artisan markets, creating an economy that does not rely on a single sector. Youth literacy at 70 percent suggests the next generation might actually have opportunities waiting.
5. Midvaal
Midvaal in Gauteng scored 72 on financial sustainability metrics, proving the Western Cape does not have a monopoly on competent governance. Meyerton, the administrative center, has attracted manufacturing firms to industrial parks that actually have reliable electricity—over 90 percent household connectivity beats many supposedly more developed areas.
What stands out here is the 60 percent matric pass rate exceeding provincial averages, showing what happens when municipalities invest in education rather than just talking about it. Recycling plants reducing waste by 40 percent might not sound exciting, but it reflects the kind of practical problem-solving that communities need.
6. eThekwini
Durban’s container port moves R1 trillion in trade every year, making eThekwini economically vital despite governance challenges that have made headlines. Ranking third among metros for service delivery shows improvement, though 92 percent water access leaves room for questions about the remaining 8 percent.
Urban renewal projects in townships have brought libraries and sports facilities to areas that desperately needed them. The creative sector—film, festivals, craft markets—employs 300,000 people, which matters more than most economic development plans acknowledge. Life expectancy climbing to 65 years reflects HIV program successes, though it still lags behind the metros in Western Cape and Gauteng.
7. Ekurhuleni
OR Tambo International Airport anchors Ekurhuleni’s economy, contributing R200 billion to GDP and creating logistics opportunities other municipalities envy. Industrial zones in Kempton Park have become manufacturing centers because electricity reliability reaches 94 percent—still not perfect, but better than the alternatives.
Affordable housing sheltering 1.5 million residents tackles a crisis most metros ignore or bungle. Science, technology, engineering, and mathematics enrollment in local education hubs suggests some forward thinking about future job markets. Smart city solutions being piloted here could scale if they prove effective.
Conclusion
As the country works toward 2030 development goals that already look ambitious, these ten municipalities offer both inspiration and frustration. They prove good governance and service delivery are achievable, which makes failures elsewhere harder to excuse. Resource constraints are real, but so is the waste and corruption that drain budgets.
For residents in underperforming areas, these rankings highlight what is possible when municipalities function properly. That knowledge can fuel demands for accountability. For policymakers, the lessons are clear even if implementing them remains politically difficult. For investors, these municipalities represent stability in a country where that commodity feels increasingly rare.
The conversation about municipal development in South Africa needs to move beyond celebrating the same Western Cape towns every year. How do you help the bottom 200 municipalities improve? What incentives actually change behavior? When do we acknowledge that some governance structures simply do not work and need replacement rather than reform?
Those questions matter more than any ranking.