Forging a stronger future: A new era of partnership for Nelson Mandela Bay

TheMandela Bay Development Agency (MBDA)is entering a transformative new phase of urban development. Guided by a clear mandate from its board, the MBDA has prioritised strengthening the synergy between its parent municipality and the agency to serve the people of its metro better. A cornerstone of this renewed collaboration is the recent council adoption of a refreshed service delivery agreement (SDA).

This critical document serves as a blueprint for unlocking catalytic projects throughout the Bay, with a sharp focus on the MBDA’s core mission: driving sustainable economic growth. To ensure the highest standards of accountability, the municipality’s Economic Development, Tourism and Agriculture (EDTA) Directorate will now play a direct oversight role in the Agency’s affairs. This enhanced governance structure ensures that every project it undertakes remains perfectly aligned with the city’s broader economic vision.

TheMBDA has already earmarked several game-changing initiatives designed to revitalise the local economy. Notably, this includes a dedicated effort to rejuvenate the regional film industry, positioning the Bay as a premier destination for creative production. Details on the full rollout of these projects will be shared with the public in due course.

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Backed by a competent board and the steadfast support of the Nelson Mandela Bay Municipality, the MBDA looks forward to a busy, meaningful tenure as it builds a more vibrant and prosperous city for all. Key to success for entities and their parent municipalities is the naturing of the legislative and structural ties between them. When the two parties start to drift, a lot is at stake when it comes to the forward development of the city.

What must never be lost is the recognition that the parent municipality sets the tone through the exercise of its responsibilities such as the appointment of independent and competent directors to form the board of the entity. The legislation above provides all the mechanisms for accountability and reporting of the entity to its parent municipality. Experience shows that, with all the legal provisions and compliance requirements, the relationship between the parties is of utmost importance, within the legal framework.

When that relationship takes strain, the ripple effects can bring paralysis and lack of co-operation to the detriment, not just of the two parties, but the city at large. The 88 days since the appointment of the new board on 10 November 2025 has allowed them to interact with various stakeholders, including the shareholder, employees and various formations to gain a better understanding of the task at hand, but most importantly, what must be done to turn the fortunes of the entity and re-establish the pride and admiration the MBDA was once held in. It is already public knowledge that the board has taken certain difficult but necessary actions which include precautionary suspensions to deal with some of the issues confronting the entity.

Suspensions by themselves do not imply guilt and those affected will have a fair opportunity to state their case, but in the final analysis, there will be decisions made to move forward. On 28 January, the board met all the employees of the entity for the first time to drive a simple message; that is, they are about good governance and a healthy, high-performance culture that is focused on delivering on the promise of economic development, the very reason for the agency’s existence. The board has given itself a limited period to route out any actions or conduct that does not support that vision.

The new board noted that the MBDA received an unqualified audit from the Auditor General of South Africa for the 2024/25 financial year. What is also contained in the reports of the AG are serious internal control issues that, if left unattended, could result in an audit regression. It is therefore one of the key priorities of this board to ensure that the entity has a robust audit action plan, not only to address the concerns raised by the Auditor General, but to ensure the MBDA maintains unqualified audits, reduces and eliminates matters of emphasis.

Additionally, the board has prioritised improvements and efficiency in project management. The observations are that projects are not always efficiently planned and executed and this results in delays, costs overruns and, at times, abandonments, which further increase the costs. The projects committee of the board has rolled up its sleeves with sufficient distance to operations and is providing the strategic oversight and guidance needed.

What all stakeholders want to see is a Nelson Mandela Bay turning into a construction site; that means all the stalled mega projects must be unlocked and we must crowd in investment. Entities by themselves are catalysts for growth, which means every project must exhibit catalytic potential and crowding in of investment. Cities create an enabling environment for society and business to thrive, and so, the MBDA has a significant responsibility in joining the municipality in its endeavours to reviving the economy.

For that economic rejuvenation to materialise, collaboration, integration and alignment is necessary between the entity, parent municipality and stakeholders. This board, supported by management, is committed to setting the MBDA back on track.

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