Every year, the Municipal IQ releases their findings on which municipalities rank highest in terms of performance and efficiency. The results are based on MPI or Municipal Productivity Index which incorporates financial and non-financial data to assess the ability of individuals to engage in local economies; do residents live in acceptable conditions, how vibrant is the local economy and how is a municipality contributing to this?

These are used to decide how various municipalities rank among themselves. Some of the biggest factors that are taken into consideration include capacity requirements, reporting, basic planning, and financial management. Majority of the higher ranked municipalities (8 out of 10) are in the Western Cape. This is a significant factor as it shows where the best livable areas are.

Performance Results for South Africa’s 8 Largest Cities – MPI

Cape Town was ranked as one of the friendliest and best cities to visit in South Africa in the recent the Annual Reader’s Choice Awards put together by Conde Nast Traveler and there is no doubt as to the reason Cape Town tops other cities as one of the best-managed.

Tshwane holds onto the 2nd place in the MPI rankings in 2014. Finance and manufacturing provide most of the income in the Tshwane area. Each of the major banks in the country all have offices located in the city of Tshwane and you can also find the embassies of various countries from across the world here in this city.

As the second largest city in South Africa, Johannesburg has a lot to offer both residents and tourists. The popular metro area offers plenty of business opportunities making it a growing economy and with proper management, is sure to be among the top for many years to come.

  Rank 2013 score Metro ave.
Cape Town 1 65.9 60.3
Tshwane 2 63.4 60.3
Johannesburg 3 63.2 60.3
eThekwini 4 62.1 60.3
Nelson Mandela Bay 5 61.8 60.3
Ekurhuleni 6 58.8 60.3
Mangaung 7 53.7 60.3
Buffalo City 8 53.4 60.3

Best municipalities in South Africa – Performance by province:

Average provincial scores on the MPI shows that Gauteng municipalities narrowly outperform the Western Cape average (see Table 1), notwithstanding top Western Cape performers. The Eastern Cape and KwaZulu-Natal continue to score the lowest MPI averages (in 8th and 9th place, respectively).

MPI Rank 2014 Score National ave.
Gauteng 1 52.8 41.3
Western Cape 2 51.7 41.3
Northern Cape 3 44.4 41.3
Free State 4 43.4 41.3
Mpumalanga 5 42.9 41.3
North West 6 40.4 41.3
Limpopo 7 38.3 41.3
Eastern Cape 8 36.9 41.3
KwaZulu-Natal 9 36.0 41.3

Top 10 most productive local municipalities

Best-performing local municipalities: 8 out of 10 top-performing local municipalities are in the Western Cape

Name Rank 2013 score Local ave.
Overstrand (WC) 1 57.9 40.6
Stellenbosch (WC) 2 57.5 40.6
Steve Tshwete (Mp) 3 57.2 40.6
Saldanha Bay (WC) 4 56.8 40.6
Thabazimbi (Lm) 5 55.6 40.6
Mossel Bay (WC) 6 54.3 40.6
Cape Agulhus (WC) 7 54.1 40.6
Knysna (WC) 8 53.6 40.6
Bitou (WC) 9 53.3 40.6
Drakenstein (WC) 10 53.1 40.6