Dr AB Xuma Local Municipality

Dr AB Xuma Local Municipality is a local municipality in Eastern Cape, covering 2 484 square kilometres. It falls within the Chris Hani District Municipality. Its main centre is Engcobo.

Census 2022 counted 132 799 residents, making it the 24th most populous of the 39 municipalities in Eastern Cape and 147th of 257 nationally. That works out to 53.5 people per square kilometre. Population is spread thinly across the area. There are 24 307 households, averaging 5.5 people each. 33.8% of residents are under 15 and 9.2% are over 65. Among residents aged 20 and over, 5.1% hold a higher education qualification and 13.2% have had no schooling.

The council has 39 seats across 6 parties, with ANC holding the largest share at 32 seats (82.1%). ANC governs the municipality. Mr Siyabulela Zangqa serves as executive mayor (ANC), and Mr Khathutshelo Lucky Mulaudzi is municipal manager.

On this site’s financial health measure, which weighs the Auditor-General’s opinion alongside operating margin, liquidity, cash cover and irregular spending, Dr. A.B. Xuma scores 38 out of 100 for 2024/25, a grade of E, described as distressed. Its most recent audit outcome was recorded as “financially unqualified”. In 2024/25 it reported R226.1 million in operating revenue against R277.8 million in expenditure, an operating deficit of R51.7 million. At the last census, 28.4% of households had piped water inside the dwelling, 92.7% used electricity for lighting and 27.1% had refuse removed weekly.

Council and management

Seats: Electoral Commission, 2021 local government elections

ANC 32 82.1%
EFF 2 5.1%
UDM 2 5.1%
ATM 1 2.6%
DA 1 2.6%
PAC 1 2.6%

Office bearers

Mayor Mr Siyabulela Zangqa ANC

Deputy Mayor n/a

Speaker Mr Mandilakhe Kondile ANC

Chief Whip Ms Nobuntu Mgidi

Municipal Manager Mr Khathutshelo Lucky Mulaudzi

Chief Financial Officer Ms N Duntsu

Mayoral Committee Mr M Tyantsi Portfolio Head: BTO

Mayoral Committee Ms N Dayisi Portfolio Head: SPU

Mayoral Committee Ms N Mgidi Portfolio Head: LED

Mayoral Committee Ms N Sipendu Portfolio Head: Community Services

Mayoral Committee Ms S Guma Portfolio Head: Corporate Service

Mayoral Committee Mr S Mfeki Chairperson: MPAC

Mayoral Committee Mr S Molo Chairperson: Public Participation

Mayoral Committee Mr S Ngxangu Portfolio Head: Infrastructure

Mayoral Committee Ms Z Simawe Chairperson: Women Caucus

Senior Management Mr C Obese Director: Technical Service

Senior Management Mr K Kenqa Manager: Mayor's Office

Senior Management Mr L Ntshinka Manager: Troika

Senior Management Mr M Siqaza Director: Corporate Services

Senior Management Ms N Matiwane Director: Community Services

Communications Ms Z Bobelo

Finances

National Treasury, audited outcomes

Measure	2024/25	2023/24	2022/23	2021/22	2020/21
AUDIT OUTCOME	Financially unqualified	Financially unqualified	Financially unqualified	Financially unqualified	Qualified audit

Financial performance

Measure	2024/25	2023/24	2022/23	2021/22	2020/21
Property rates	15 281	8 780	7 128	7 447	6 574
Service charges	1 232	100	1 139	1 107	1 093
Investment revenue	3 276	260	5 672	3 811	3 246
Transfers recognised - operational	200 830	70 931	188 187	171 577	191 667
Other own revenue	5 484	478	13 851	14 763	8 383
Total Revenue (excluding capital transfers and contributions)	226 102	80 549	215 977	198 704	210 963
Employee costs	107 066	8 475	96 668	93 666	87 657
Remuneration of councillors	17 204	1 209	16 052	15 646	15 122
Depreciation and amortisation	41 958	-	-26 074	58 819	8 191
Finance charges	-	-	-	-	-
Inventory consumed and bulk purchases	3 820	602	4 034	3 206	3 016
Transfers and subsidies	3 355	197	5 655	2 228	1 914
Other expenditure	104 367	9 859	92 232	68 706	66 788
Total Expenditure	277 771	20 342	188 569	242 270	182 687
Surplus/(Deficit)	-51 668	60 207	27 408	-43 566	28 276
Transfers and subsidies - capital (monetary allocations)	92 102	-	75 460	102 752	91 607
Transfers and subsidies - capital (in-kind)	201	-	-	-	-
Surplus/(Deficit) after capital transfers & contributions	40 635	60 207	102 868	59 187	119 883
Share of surplus/(deficit) of associate	-	-	-	-	-
Surplus/(Deficit) for the year	40 635	60 207	102 868	59 187	119 883

Capital expenditure & funds sources

Measure	2024/25	2023/24	2022/23	2021/22	2020/21
Capital expenditure	117 691	-4 332	113 359	105 178	-492 198
Transfers recognised - capital	64 370	-24 060	-5 666	92 483	-35 467
Borrowing	-	-	-	-	-
Internally generated funds	53 299	19 728	31 633	2 490	-5 242
Total sources of capital funds	117 669	-4 332	25 967	94 973	-40 709

Financial position

Measure	2024/25	2023/24	2022/23	2021/22	2020/21
Total current assets	11 995	47 087	19 658	100 277	101 748
Total non current assets	701 268	547 252	647 179	443 032	523 641
Total current liabilities	84 428	5 926	23 762	42 080	43 767
Total non current liabilities	9 821	8 953	11 026	10 236	9 679
Community wealth/Equity	578 380	519 254	529 182	431 806	452 060

Cash flows

Measure	2024/25	2023/24	2022/23	2021/22	2020/21
Net cash from (used) operating	384 679	60 605	3 123	123 674	191 105
Net cash from (used) investing	-123 306	-8 945	-118 616	-80 594	-
Net cash from (used) financing	-	-	-	-	-
Cash/cash equivalents at the year end	274 978	93 448	-21 124	142 398	256 857

Unauthorised, irregular, fruitless & wasteful expenditure

Measure	2024/25	2023/24	2022/23	2021/22	2020/21
Unauthorised expenditure	-	-	-	-	-
Irregular expenditure	53 199	69 656	61 034	105 058	7 527
Fruitless & wasteful expenditure	700	1 357	8 541	-	-

Source: Audited Outcome A1 2026 Q1

People

Statistics South Africa, Census

Measure	2022	2016	2011
Population	132 799	162 014	155 513

Age structure

Measure	2022	2016	2011
Population under 15	33.8%	44.2%	39.5%
Population 15 to 64	57.1%	50.3%	52.9%
Population over 65	9.2%	5.4%	7.6%

Dependency ratio

Measure	2022	2016	2011
Per 100 (15-64)	75.3	98.6	89.2

Sex ratio

Measure	2022	2016	2011
Males per 100 females	91.4	85.6	86.1

Population growth

Measure	2022	2016	2011
Per annum	-1.5%	0.9%	n/a

Labour market

Measure	2022	2016	2011
Unemployment rate (official)	n/a	n/a	45.7
Youth unemployment rate (official) 15-34	n/a	n/a	55.3

Education (aged 20 +)

Measure	2022	2016	2011
No schooling	13.2%	21.0%	19.7%
Matric	n/a	13.8	9.6
Higher education	5.1%	5.3%	5.1%

Household dynamics

Measure	2022	2016	2011
Households	24 307	33 156	37 214
Average household size	5.5	4.9	4.2
Female headed households	n/a	60	57.7
Formal dwellings	67.1%	16.4%	30.7%
Housing owned	n/a	78.4	63.8

Household services

Measure	2022	2016	2011
Flush toilet connected to sewerage	28.7%	3.5%	4.6%
Weekly refuse removal	27.1%	0.4%	2.9%
Piped water inside dwelling	28.4%	4.7%	3.0%
Electricity for lighting	92.7%	80.2%	50.9%

Service delivery

National Treasury, non-financial census of municipalities

Water

Measure	2022/23	2021/22	2020/21	2019/20	2018/19
Does the municipality provide?	No	No	No	No	No
Number of households and non-domestic customers to which provided	0	0	0	0	0
Number of domestic households/delivery points	0	0	0	0	0
Inside the yard	0	0	0	0	0
Less than 200m from yard	0	0	0	0	0
More than 200m from yard	0	0	0	0	0
Domestic households with access to free basic service	0	0	0	0	0

Electricity

Measure	2022/23	2021/22	2020/21	2019/20	2018/19
Does the municipality provide?	No	No	No	No	No
Number of households and non-domestic customers to which provided	17 965	17 965	17 784	17 784	17 784
Domestic households with access to free basic service	2 946	2 781	4 375	4 372	3 554

Sewerage and sanitation

Measure	2022/23	2021/22	2020/21	2019/20	2018/19
Does the municipality provide?	No	No	No	No	No
Number of households and non-domestic customers to which provided	0	0	0	0	0
Flush toilet - public sewerage	0	0	0	0	0
Flush toilet - septic tank	0	0	0	0	0
Ventilated pit latrine	0	0	0	0	0
Bucket system	0	0	0	0	0
Other	0	0	0	0	0
Domestic households with access to free basic service	0	0	0	0	0

Solid waste services

Measure	2022/23	2021/22	2020/21	2019/20	2018/19
Does the municipality provide?	Yes	Yes	Yes	Yes	Yes
Number of households and non-domestic customers to which provided	1 571	1 571	1 521	239	239
Domestic households with access to free basic service	1 283	1 283	1 283	15	15

Staffing

National Treasury

Measure	2022/23	2021/22	2020/21	2019/20	2018/19
Employment Costs (R’000)	96 668	93 666	87 657	88 098	78 041
Remuneration of councillors (R’000)	16 052	15 646	15 122	14 932	14 397
Total Employee Positions	261	244	254	224	204
Total Vacant Employee Positions	1	0	6	1	0
Total Vacancy Percentage	0.4%	0.0%	2.4%	0.5%	0.0%
Managerial Positions – S54A and S56	6	6	6	6	6
Vacant Managerial Positions – S54A and S56	1	0	0	0	0
Managerial Positions - by organogram	11	11	17	16	14
Vacant Managerial Positions - by organogram	0	0	6	1	0

Published documents

Hosted by National Treasury

Annual Reports

Audit Reports

Audited Financial Statements

Integrated Development Plans

E Distressed Financial health 38 of 100, 2024/25

Audit outcome Financially unqualified

The financial statements are reliable, but the Auditor-General raised findings on performance reporting or compliance.

Operating margin -22.9%

The municipality spent more than it collected on day-to-day operations, running an operating deficit.

Current ratio 0.14:1

Short-term obligations exceed short-term assets, a common early sign of cash-flow trouble.

Cash coverage 11.9 months

Cash on hand could fund operations for this long without any new income.

Irregular spending 19.40%

Share of total spending the Auditor-General flagged as unauthorised, irregular, or fruitless and wasteful.