KZN government tables R1. 9 billion budget aimed at revitalising local governance and driving economic growth
Image: KZN Cogta
The Cooperative Governance and Traditional Affairs (COGTA) MEC, Reverend Thulasizwe Buthelezi, has unveiled a transformative R1.9 billion budget for the 2025/26 financial year, crucially focusing on strengthening local governance, supporting traditional leadership, and stimulating economic activity throughout KwaZulu-Natal.
MEC Buthelezi underscored the provincial government's commitment to revitalising local governments, stating emphatically, "We are reviving the Back-to-Basics programme as central to local government within our province."
This declaration serves as a pivotal reminder of the administration's aim to ensure effective service delivery and responsive governance at the municipal level.
A notable feature of this budget is the allocation of R397.5 million to Programme 2: Local Government. This significant funding is set to empower municipalities across the province, equipping them with the necessary resources to enhance their operational capacity and effectively address the challenges faced by local entities, all while building on previous achievements.
As part of a strategic approach to economic development, MEC Buthelezi also unveiled an ambitious initiative comprising 11 catalytic projects aimed at stimulating economic activity within each district and the metropolitan area. These projects, orchestrated by the Provincial Project Management Unit (PPMU), are designed to generate growth and development tailored to the unique characteristics of their respective regions.
Among the key projects earmarked for implementation in the current fiscal year are:
Ulundi Electrification Upgrade Project : An allocation of R56 million will fund the refurbishment of two electricity network switching stations, alongside the Babanango electrification project, directly benefiting 105 households.
: An allocation of R56 million will fund the refurbishment of two electricity network switching stations, alongside the Babanango electrification project, directly benefiting 105 households. Nkandla Electrification Project : With R15 million earmarked, this project will provide electricity for the first time to communities within the Nkandla Local Municipality across Wards 4, 11, and 6, impacting 100 households.
: With R15 million earmarked, this project will provide electricity for the first time to communities within the Nkandla Local Municipality across Wards 4, 11, and 6, impacting 100 households. AbaQulusi Electrification Projects : A total investment of R42 million will be directed towards two key projects: R26 million for the Mabhula project in Ward 4, benefiting 260 households, and R16 million for the Madanyini project in Ward 2, aiding 150 households.
: A total investment of R42 million will be directed towards two key projects: R26 million for the Mabhula project in Ward 4, benefiting 260 households, and R16 million for the Madanyini project in Ward 2, aiding 150 households. Endumeni Infrastructure Upgrade: An investment of R3.7 million will facilitate the installation of two solar high mast lights and a borehole at Wasbank in Ward 7, significantly enhancing essential community services.
In addition to these catalytic projects, the Department has earmarked R377.9 million for Programme 3: Development and Planning. This funding aims to foster sustainable growth by focusing on regional development and spatial integration, ultimately unlocking the potential of KwaZulu-Natal.
The KZN COGTA's 2025/26 budget reflects a robust commitment to fortifying local governance, empowering communities, and spearheading sustainable economic development across the province. Through strategic investments in vital projects and programs, the department aspires to cultivate a more resilient and prosperous KwaZulu-Natal for all its citizens.
IOL
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
37 minutes ago
- IOL News
Southern Sun announces R1. 5 billion hotel project at Oceans Umhlanga
The official roof wetting ceremony of the R1.4 billion Oceans uMhlanga North Tower was held on Friday. At the event were, extreme right, businessman Vivian Reddy, co-developer, Oceans Umhlanga with Co-operative Governance and Traditional Affairs MEC Reverend Thulasizwe Buthelezi, third from left, with other attendees. Image: eThekwini Municipality The Oceans Umhlanga development continues to anchor major investment in KwaZulu-Natal, with Southern Sun announcing a landmark R1.5 billion hotel and residences project set to open in late 2027. The announcement, made during the official roof wetting ceremony of the R1.4bn North Residential Tower on Friday, further cements Oceans Umhlanga's position as a key driver of regional economic growth. Southern Sun CEO Marcel von Aulock said: 'We're thrilled to be part of this extraordinary development. Oceans Umhlanga offers a world-class setting with unmatched positioning, and we are proud to anchor the hospitality component. 'This new hotel will stand as a flagship for our group and a key asset in our national portfolio.' The new property will be called Southern Sun Hotel & Residences Oceans Umhlanga and will cater to both short- and long-stay guests. It marks Southern Sun's return to the area nearly 60 years after it opened the Beverly Hills Hotel and adds to its existing portfolio of over 90 hotels and more than 300 conference venues across Southern Africa. 'This development represents a new opportunity for us to both increase our capacity in the vibrant Umhlanga Rocks area as well as enter a new market for quality serviced apartments,' said von Aulock. 'We are proud to be able to partner with the Oceans Umhlanga team and look forward to bringing something special to the market.' The partnership with Southern Sun brings the total investment into the Oceans Umhlanga precinct to over R5bn. Oceans Umhlanga co-developer Vivian Reddy stated, 'We evaluated various hotel operators over the past year and selected Southern Sun as the leading hotel company in South Africa. Southern Sun is a household name in hospitality and brings world-class design, operational experience, and a deep understanding of the South African tourism market to a project that caters to both local and international travellers.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ He added that Umhlanga faced a chronic shortage of premium hotel rooms. 'Our Radisson Blu hotel has consistently achieved high occupancies and is fully booked during every major event in Durban. Even with five more hotels, demand would still outstrip supply. That's why the Southern Sun Oceans Hotel isn't a competitor, it's a complement. Together with Radisson Blu, it will enrich the guest experience.' Oceans Umhlanga CEO Brian Mpono described the precinct as 'more than a landmark development; it is a catalyst for Durban's long-term economic recovery and its rebranding as a globally competitive investment destination.' 'Our vision has always been to create a world-class mixed-use environment that integrates luxury retail, hospitality, and residential offerings while stimulating job creation, tourism, and investor confidence,' said Mpono. 'Durban's future lies in bold, integrated precincts that attract both local and international capital. Oceans Umhlanga exemplifies that.' He added that the precinct's success is not an isolated one but a multiplier for surrounding communities. 'Our partnerships with leading brands and our commitment to working with government, local businesses, and community stakeholders ensure that the precinct is not an isolated success but a multiplier for inclusive economic growth.' Despite the tough economic climate, Mpono said the project has remained on track. 'The current economic climate, including rising interest rates and construction costs, has required us to be more agile and strategic, but it has not slowed our commitment to Oceans Umhlanga. 'We've adapted by sequencing phases responsibly and managing costs efficiently, all while maintaining the premium quality and vision of the precinct.' Economist Dawie Roodt said developments of this scale can have a major impact on regional economies. 'It will be good for the economy of KZN, especially in that specific region. And it will also be good for sentiment,' he said. 'If people invest so much money, it must be a good place to be, and that will attract other investments as well.' Roodt added that the project would likely improve investor confidence. 'Certainly, it's good for perception and improvement in confidence as well.' The Oceans Umhlanga precinct, which includes the already operational Oceans Mall and Radisson Blu Hotel, has so far created over 25 000 jobs during construction, many filled by residents from nearby communities such as KwaMashu, Inanda, and Ntuzuma. The North Tower, which officially launched on Friday, offers 258 luxury apartments with ocean views, direct mall access, and high-end lifestyle amenities. THE MERCURY
IOL News
a day ago
- IOL News
Ingonyama Trust faces challenge in refunding over 1,600 residents
Ingonyama Trust Board acting CEO Siyamdumisa Vilakazi says spending over R4 million to reimburse homeowners who paid rental fees to occupy traditional land in KwaZulu-Natal will not financially harm the board. Image: Ingonyama Trust Board website THE Ingonyama Trust is facing significant hurdles in its mission to refund more than 1,600 residents from whom it illegally collected funds between 2007 and 2021. More than R4 million is awaiting restitution, but the trust has only successfully contacted just over 200 individuals so far, leaving a vast majority untraceable. The interim chief executive of the board, Siyamdumisa Vilakazi, said they are continuing with their efforts to trace people. "Tracing all of them is difficult, as some have died; others in the deep rural areas have network problems where they stay. There are 1602 people who need to be refunded. We've only managed to trace 208," said Vilakazi. Vilakazi said there could be more people who show up who say they were also paying the trust. "However, so far only 1620 people are in our records," said Vilakazi. The trust is paying back people who were paying for residential leases. He said the residential lease was different from the money paid by subjects who are under traditional authorities, as those funds are kept by Cooperative Governance and Traditional Affairs. The residential leases were paid between 2007 and 2021 until it was discovered that the trust has no authority to collect such funds. "It was different amounts. In some areas, people were paying R1200 per year," said Vilakazi. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ While hoping to have all refunds processed within the next 18 months, Vilakazi mentioned the possibility of additional individuals coming forward claiming they were also subjected to the trust's leases. In June 2021, Judge Isaac Madondo in the Pietermaritzburg High Court ruled that the Ingonyama Trust's residential lease programme was unlawful and unconstitutional. The court declared the leases invalid and ordered the trust to refund all money collected from residents under the programme. This ruling stemmed from a challenge arguing that the Trust's actions violated residents' constitutional and customary law property rights, specifically by converting permission to occupy (PTO) rights into lease agreements. The matter was brought to court by the Council for the Advancement of the South African Constitution (Casac) and the Rural Women's Movement. The previous board tried to appeal the decision unsuccessfully. The deputy chairperson of the ITB, Advocate Linda Zama, said they decided to abide by the court's ruling and directive. She said she's unaware why the previous board decided to charge residents. She said she knows that there are people who are opposed to their decision to refund residents. SUNDAY TRIBUNE
IOL News
2 days ago
- IOL News
Polokwane mayor John Mpe denies R56 million tender scandal linked to municipal manager's alleged partner
Polokwane mayor Mayor John Mpe has defended a R56 million tender awarded to a company allegedly tied to city manager Thuso Nemugumoni's Zimbabwean partner, Image: Supplied Polokwane Mayor John Mpe says there is nothing wrong with awarding tenders to foreign-owned companies, as long as the law is followed, after claims linking a R56 million contract to the alleged Zimbabwean partner of city manager Thuso Nemugumoni. This comes after widespread social media claims that Mpe and municipal manager Thuso Nemugumoni awarded a tender worth more than R56 million to a company allegedly linked to Nemugumoni's Zimbabwean partner. Speaking during a media briefing on Thursday at New Peter Mokaba Stadium, Mpe dismissed the allegations as baseless and politically motivated. He stated that the companies in question have been doing business with the municipality since 2017, well before the current administration took office. 'We have noted with concern, contempt and disappointment the continued circulation of unfounded, malicious, and misleading allegations,' Mpe said. 'These claims attempt to falsely implicate me, and the city manager, Ms. Thuso Nemugumoni, in a purported R56 million tender irregularity.' Mpe said the municipality rejects the claims as defamatory and part of a politically driven smear campaign. 'Once again, unverified platforms are being used as tools for orchestrated smear campaigns aimed at discrediting the leadership of the municipality,' he said. 'These attacks often resurface around politically significant periods and are clearly part of a broader agenda by individuals and factions who have lost democratic influence.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ He said the municipality currently does business with more than 100 companies and service providers across various sectors and questioned why only a few are being singled out. 'It is important to note that many of the companies listed in recent allegations were awarded contracts through lawful, competitive bidding processes prior to the appointment of both the current executive mayor and the city manager,' Mpe said. He said companies such as Capotex Trading and Zerbacraft (Pty) Ltd, have had ongoing contractual relationships with the municipality dating back to 2017, 2018, and 2020. Mpe said those companies also work with other municipalities and public institutions across the province and country without controversy. He added that foreign-owned companies are not barred from doing business with the municipality. 'In terms of Section 217 of the Constitution of the Republic of South Africa, and as supported by the Preferential Procurement Policy Framework Act (Act 5 of 2000), all procurement by an organ of state must be fair, equitable, transparent, competitive, and cost-effective,' he said. 'The law does not prohibit foreign-owned companies from doing business with municipalities, provided they meet all legal and compliance requirements, including tax compliance and registration on the Central Supplier Database.' He added that the participation of foreign nationals or foreign-owned entities in tenders is legal and aligned with South Africa's open and competitive economy. Meanwhile, opposition parties have called for an investigation into the allegations. Economic Freedom Fighters (EFF) provincial chairperson Lawrence Mapoulo called on Limpopo Premier Dr. Phophi Ramathuba to appoint an ad hoc committee to investigate tender irregularities at the municipality. In a media briefing on Friday, Mapoulo also called on Limpopo MEC for Cooperative Governance, Human Settlements and Traditional Affairs Basikopo Makamu to invoke Section 139 and place the municipality under administration. 'President Cyril Ramaphosa must also sign a proclamation to authorise the Special Investigating Unit (SIU) to investigate the allegations,' he said. ActionSA spokesperson Tshepo Magoma said the party plans to open a corruption case against Mpe at the Polokwane South African Police Service station on Monday. 'ActionSA expresses deep disappointment regarding recent allegations of corruption and maladministration directed at the Polokwane Municipality and its leadership.' 'These claims undermine public trust and impede the delivery of effective services to Polokwane residents,' Magoma added. IOL Politics
