 | Drakenstein Municipality’s R4.5bn budget drives growth, infrastructure investment, and support for vulnerable households
08 June 2026 | Press Releases |
Drakenstein Municipality's R4.5 billion budget for the 2026/27 financial year, tabled by Councillor Stephen Korabie, Executive Mayor of the Municipality, on Wednesday, 27 May 2026, reflects a local economy that continues to grow at an exceptional pace. Driven by sustained commercial and residential development, Drakenstein's economy has expanded from over R34 billion in 2024 to an estimated R40 billion in 2026, with the Municipality's budget positioned to support and sustain this growth.
Councillor Stephen Korabie, Executive Mayor of Drakenstein Municipality; Alderman Koos le Roux, Speaker; and Alderman Gert Combrink, Deputy Executive Mayor, in the Council Chambers on Wednesday, 27 May 2026.
The 2026/27 budget – the largest in the Municipality's history – comprises a R3.9 billion operating budget and a R549 million capital budget. It is focused on sustaining economic growth, investing in critical infrastructure, expanding support to vulnerable households, and reorganising municipal efforts to manage rapid urbanisation smarter.
“This budget focuses on enabling economic development to stimulate job creation, alleviate poverty and improve people's lives – while maintaining financial sustainability," said the Executive Mayor.
“The budget reflects stability, fiscal discipline and strong governance, and succeeds in balancing economic growth with Drakenstein Municipality's main objective of delivering excellent and affordable services to all our residents," he emphasised to councillors.
The Municipality continues to demonstrate strong governance and fiscal discipline, while balancing growth with its core objective of delivering reliable and affordable services.
Strong economic momentum
Drakenstein's economy continues to expand, supported by strong investor confidence and ongoing development across the municipal area. During 2025/26, the Municipality approved land use rights for 642 new residential opportunities, 6 518 m² of commercial development and 250 m² of industrial development.
In addition, land use applications for 1 588 new residential opportunities, 32 808 m² of new commercial developments and 24 000 m² of new industrial developments are currently in process. Altogether 1 336 building plans, worth R2.92 billion, were approved for the period from 1 July 2025 to date.
These developments, together with continued investment in infrastructure, are sustaining economic momentum and job creation. Drakenstein's unemployment rate stood at 17.4% at the end of 2024, significantly lower than the national and provincial averages.
Investing in infrastructure
Drakenstein Municipality's key infrastructure allocations for 2026/27 include:
- Water and sanitation: R289 million, including R250 million for upgrades to the Paarl Wastewater Treatment Works;
- Electricity: R92.3 million for network upgrades and electrification of informal settlements;
- Roads and stormwater: R39.8 million, including R10.4 million for the upgrading of the Paarl Taxi Rank;
- Municipal fleet modernisation: R32 million to improve service delivery efficiency; and
Sport, parks and cemeteries: R11 million.
Tariffs remain affordable
The Municipality remains committed to keeping services affordable for residents while maintaining financial sustainability. The proposed tariff increases for 2026/27 are:
- Property rates: 3.7%;
- Water: 4.5%;
- Refuse removal and sanitation: 4.5%; and
Electricity: 6.3% (average).
Building on last year's intervention to cap property rates increases, the Municipality will continue not charging property rates on homes valued up to R350 000, while qualifying pensioners and vulnerable residents will continue to receive rebates.
Supporting vulnerable households – a people-centred approach
With over 54% of households classified as poor in Drakenstein, supporting vulnerable residents remains a key priority for the Municipality.
An amount of R215 million has been allocated through national government funding (equitable share) to provide support to Drakenstein's indigent households in 2026/27. This funding excludes the cost of refuse removal, sanitation and water services which the Municipality provides at no cost to residents in its 44 informal settlements.
As of 30 April 2026, 16 550 households are registered for indigent support in Drakenstein.
To expand poorer households' access to support, the Municipality has:
- Increased qualifying income thresholds;
- Excluded child support and foster care grants from income calculations; and
Limited pension income calculations to a maximum of two SASSA pension recipients per household.
These changes ensure that more struggling households can qualify for assistance.
Responding to housing and urbanisation pressures
Rapid urbanisation and an increasing housing demand continue to place pressure on the Municipality, particularly with the growth in backyard dwellers and informal settlements.
In response, Drakenstein Municipality is re-organising its approach, resources and focus to manage these challenges smarter and ensure a more coordinated and sustainable response.
“We have listened to our residents and are repositioning our efforts to respond more effectively to growing housing needs. This will take time and additional resources, but it is a necessary process," said Councillor Korabie.
Strengthening communities through social development
In addition to infrastructure and housing, the Municipality continues to invest in social development programmes aimed at supporting vulnerable residents and strengthening communities.
This includes the expansion of community-based initiatives such as soup kitchens, with three new facilities opened, bringing the total to 22 soup kitchens across Drakenstein. These programmes provide essential support to residents in need while promoting dignity and social cohesion.
The Municipality is also intensifying its efforts to address social challenges through targeted interventions. These include programmes focused on Gender-Based Violence (GBV) prevention, youth development, family support, re-unifying homeless individuals with their families and re-integrating them into society, as well as skills development initiatives aimed at helping residents access sustainable opportunities.
“In addition, our Fatherhood Programme plays a vital role in addressing the root causes of GBV by actively engaging men and fathers. The programme focuses on reshaping attitudes, strengthening positive masculinity, and reinforcing the responsibility of fathers as protectors, role models and agents of change in their households and communities," the Executive Mayor said.
The Municipality is further allocating R21.6 million in the new financial year for the Expanded Public Works Programme (EPWP), making provision for 603 job opportunities in Drakenstein.
Enhancing public safety
The Municipality continues to strengthen public safety through targeted investments and partnerships. The 2026/27 budget makes provision for the expansion of CCTV networks, the use of drone technology, and upgrades to the municipal control room to improve response times and coordination.
These efforts are supported by strong collaboration with the South African Police Service, community policing forums and other safety partners to enhance safety across Drakenstein. “Additionally, the Municipality undertook to employ EPWP workers as Cadet Firefighters in the new financial year for an extended period to help bolster manpower," he said.
Good governance – leading by example
The Municipality continues to lead by example in governance and financial management, having achieved its 11th clean audit opinion from the Auditor-General.
“I want to thank the Deputy Executive Mayor, Mayoral Committee Members, Councillors, the City Manager, Chief Financial Officer, Executive Directors and all our staff for their contributions to this outstanding achievement. It reflects consistent discipline, sound financial controls and a commitment to accountability – key factors underpinning the Municipality's ability to deliver reliable and affordable services," he said.
Concluding his address, the Executive Mayor reaffirmed the Municipality's long-term vision: “We want to grow Drakenstein into a thriving and highly efficient city where our people can live, work and play."
The 2026/27 Budget, aligned with the Municipality's Vision 2032, Integrated Development Plan (IDP) and Spatial Development Framework (SDF), is based on realistic revenue projections and has been assessed as credible and sustainable by the Provincial Government.
The Municipality's Budget, budget-related policies and tariffs; 2026/31 Reviewed IDP; and 2026/31 Reviewed SDF were also tabled and adopted at the Council meeting.
For the Executive Mayor's full speech, click here.
Soundbite by Councillor Stephen Korabie, Executive Mayor of Drakenstein Municipality:
- “This budget focuses on enabling economic development to stimulate job creation, alleviate poverty and improve people's lives – while maintaining financial sustainability."
Budget Speech Video
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Issued by: Communication and Marketing, Drakenstein Municipality
