Pray the News
Bay's cash reserves hit new low
The Herald 2 February 2026
Thought for Today
“Low cash reserves remind us that true security is not found in bank balances, but in the Lord who supplies all our needs. Pray for Nelson Mandela Bay today.”

Abstract from the articleBay's cash reserves hit new low
The Herald 2 February 2026
Thought for Today
“Low cash reserves remind us that true security is not found in bank balances, but in the Lord who supplies all our needs. Pray for Nelson Mandela Bay today.”

Nelson Mandela Bay municipality has enough cash reserves to sustain its operations for just 59.67 days, the lowest level to which the city’s coffers have fallen in the past five years.
The shrinking reserves come amid mounting financial pressures, including a debtors’ collection rate that remains below target at 71.6% and cumulative electricity losses of R840m.
The figures were disclosed in the 2025/2026 mid-year budget and performance report, tabled by Mayor Babalwa Lobishe during a council meeting on Thursday.
The mid-year report provides an overview of the municipality’s financial position and institutional performance.
It is based on the approved service delivery and budget implementation plan, which outlines key performance indicators (KPIs).
However, the KPI scores were not included in the summary report but appear in the mid-term budget report from the National Treasury.
Based on the municipality’s own targets, it scored:
● Basic service delivery: 16.67%;
● Municipal transformation: 0%;
● Good governance: 33.33%; and
● Financial viability: 31.26%. DA councillor Brendon Pegram described the scorecards as a disgrace.
“This report tells a tale of financial mismanagement and poor leadership,” he said.
“Of particular concern is the overdue debtors’ book, which grew by R3.2bn in the past six months."
More Background
This low reserve position stems from several interconnected, ongoing issues that have worsened over recent financial years, including the current 2025/2026 period:
- Poor revenue collection: The weighted debtors' collection rate for the first six months of 2025/2026 was 71.6%, below the target of 75%. This has been a persistent problem, with historical rates around 71-72% in prior years (e.g., 71.07% in 2024/2025). Low collection contributes to growing arrear debt—the overdue debtors' book increased by R3.2 billion in the past six months alone. A culture of non-payment, including among some councillors and residents, exacerbates this, leading to revenue shortfalls.
- Significant electricity losses: Cumulative losses reached R840 million by November 2025 (equivalent to about 447 million kWh lost). These stem from non-revenue factors like meter tampering, illegal connections, and infrastructure inefficiencies. The electricity department has run large deficits (e.g., projected R1.3 billion loss in some years), often requiring subsidies from rates revenue and contributing to overall operating deficits.
- Other operational and systemic pressures: High non-revenue water losses (around 58-60% in recent reports) add to financial bleed. Underspending on capital budgets and maintenance (e.g., only 27-30% in some areas) leads to infrastructure decay, while overtime costs and other expenditures rise. The municipality has faced operating deficits (e.g., R1.58 billion in 2024/2025), reliance on dipping into reserves since the COVID-19 period, and risks from delayed or withheld grants due to compliance issues or underspending.
- Broader performance issues: The mid-year report showed poor KPI achievement (e.g., 16.67% on basic service delivery, 31.26% on financial viability), with opposition (like DA councillor Brendon Pegram) criticizing it as evidence of mismanagement and poor leadership. Overall performance was around 34.15%, down from prior years.
Prayer Guidelines
- For Basic Service Delivery (scored 16.67%)
- For Municipal Transformation (scored 0%)
- For Good Governance (scored 33.33%)
- For Financial Viability (scored 31.26%)
A Prayer
Heavenly Father, we come before You on behalf of Nelson Mandela Bay and its people. We pray for a powerful turnaround in this city: restore reliable basic services like water, electricity, and sanitation to every household; bring genuine transformation and renewal to the municipal administration, breaking stagnation and building equity and efficiency; establish good governance with integrity, transparency, and accountable leadership free from mismanagement; and grant financial viability through improved revenue collection, reduced losses, wise stewardship, and sufficient reserves to sustain operations without crisis. Lord, guide the leaders, empower the workers, heal the broken systems, and pour out Your wisdom and grace so that this municipality may serve its residents with excellence and restore hope to the community. We trust You for breakthrough and blessing. In Jesus' name, Amen.
Listen to the prayer here
Compiled by GAP Ministries
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