The Multiparty Coalition Government of the City of Tshwane in South Africa has introduced SAP Ariba, a new digital procurement platform at Tshwane with the goal of strengthening supply chain governance, enhancing transparency and minimising possibilities for irregular expenditure.
Councillor Eugene Modise, the Deputy Executive Mayor and MMC for Finance, announced the rollout on July 2, 2026, together with Executive Mayor Dr Nasiphi Moya, members of the Mayoral Committee along with senior municipal officials. He said the project was another achievement in the city’s bid to modernize public administration and enhance financial governance.
Modise added that “Every rand entrusted to the municipality is managed responsibly, transparently and in the best interests of our residents.”
He further said that the procurement system of Tshwane had long been hampered by traditional, paper-based procedures along with disorganised approval mechanisms that were said to have led to lags, shortcomings, and, in some instances, misconduct.
He said that the past audit findings along with internal investigations revealed weaknesses in the supply chain management of the city, including inadequate documentation and varying compliance.
These failings, according to him, have eroded public trust, raised costs and delayed service delivery.
It is worth noting that SAP Ariba is a completely integrated, cloud-based procurement and supply chain management platform which digitizes supplier registration, acquisition, and contract management as well as procurement transactions.
The new digital procurement platform at Tshwane will establish a comprehensive digital audit trail for all procurement transactions, thereby making sure that supplier engagements as well as approval processes are completely traceable and governed by a higher level of supervision, said Modise.
The fact is that the implementation is one of the biggest financial modernizations from Tshwane with a total investment of roughly R237 million and is part of the bigger SAP S/4HANA upgrade programme of the city.
He also took the opportunity to trash what he dubbed erroneous public commentary when it came to the financial health of Tshwane, claiming the latest figures of the municipality were an expression of prudent budgeting rather than financial distress.
Regardless of the economic pressure on households and businesses, the city accumulated roughly R43.93 billion in revenue during the 2025/26 financial year, accounting for 98% of the revenue estimated in its Budget Funding Plan, said Phila Mazibuko, the city’s finance MMC.
Notably, the city collected over R4.18 billion in June 2026, which is more than R544 million compared to the monthly funding goal and makes up to 115% of its target. Revenue collection was above what was expected. By 26 June, before the completion of the financial year, total collections had surpassed R3.6 billion.
Modise said that after paying salaries of employees, the municipality had a healthy positive cash balance of approximately R1.8 billion.
He added that the city continues to be fully compliant with its Eskom debt repayment contract while decreasing its overall debt book.
According to Modise, sustainable financial oversight relied on solid governance systems, instead of short-term measures, in linking the financial performance of the city to the procurement reforms.
As per him, strong governing structures hold significance for strong financial management, noting purchasing is one of the biggest components of municipal spending.
Digital platforms, he says, such as SAP Ariba minimise opportunities for irregular spending, enhance compliance and control, and allow for quicker, data-driven choices via real-time reporting.
Modise said the reforms were to establish a competent, open, and financially sustainable municipality that gains the confidence of residents via responsible governance along with measurable results.
He said that the new procurement platform will also help trustworthy suppliers to do business as usual with the City through making procurement procedures more effective and easier to access.
