Is South Africa’s 2nd richest municipality the tenderpreneur capital?

The average taxable income in South Africa’s second richest municipality is R494 156 a year.

But more residents in the municipality get their money from the South African Social Security Agency (SASSA).

Not just any grant, but the social grant for South Africans living below the Food Poverty Line (FPL).

So, what’s going on?

More grant beneficiaries than taxpayers

Ntabankulu may be the clearest sign that it pays to work for or with the government.

The average taxpayer in the town of 146 423 people earns more than the average taxpayer in major metros like Johannesburg and Cape Town.

The municipality isn’t home to any major mining operation similar to South Africa’s richest municipality: Gamagara Local Municipality, in the Northern Cape.

Instead, in this Eastern Cape municipality on the Wild Coast, the primary income sources appear to be the government and cannabis.

In 2025, the municipality unveiled an R80 million hub to formalise its cannabis farming and production.

Two years earlier, the municipality spent over a billion building roughly 33 kilometres of road.

The municipality’s audited annual reports suggest some of its taxable income could originate from tenders.

According to its adjusted performance report for 2023-2024, Ntabankulu spent R1.04 billion on 33.74 kilometres of road.

Projects appear to be the municipality’s bread and butter.

The municipality currently has 9 active tenders.

It also intends to award 5 road maintenance tenders to local companies. One tender will go to a driving school that doubles as a construction company.

Another tender goes to a construction company with two directors: a former bookbinder in the printing industry and an admin assistant. Both have no construction experience.

But for most residents, the reality is abject poverty.

Grant Beneficiaries in Ntabankulu

Despite the wealth from a handful of residents, only 1.79% of the municipality’s population are taxpayers.

Instead, it appears most residents receive money from the Social Relief of Distress (SRD) grant.

According to the South African Revenue Service (SARS) tax statistics, Ntabankulu had 2 631 taxpayers at the end of 2024.

But recent data from SASSA’s SRD statistics show 22 382 residents in the municipality rely on a R370 social grant.

To be eligible for the SRD grant, applicants cannot receive more than R624 in a single month.