eThekwini mayor unveils budget adjustments to boost economic growth and infrastructure

IOL News

04-06-2025

At the recent post-budget business breakfast held on Wednesday, eThekwini Municipality's Mayor, Cllr Cyril Xaba, addressed key stakeholders, including business leaders, city officials, and media representatives, to unveil the final budget for the 2025/26 financial year. The event marked a pivotal moment for the city, underscoring a collaborative effort to address the pressing challenges posed by an evolving economic landscape.
Beginning his address, Xaba expressed gratitude to attendees for their participation in the budget consultation process, which aimed to foster transparency and inclusivity in financial planning.
"We are pleased that most of the issues you raised were considered in the final budget," he said.
Key issues highlighted during consultations included the unaffordability of tariffs that outpaced inflation and the imperative to enhance service delivery amid ageing infrastructure.
In a response to these concerns, Xaba outlined significant tariff reductions designed to alleviate the financial burden on residents and businesses:
Domestic water tariff reduced from 15% to 13%
Business water tariff cut from 16% to 14%
Sanitation tariffs decreased by 2%
Average property rates increase lowered from 6.5% to 5.9%
Refuse tariff for domestic households adjusted from 9.9% to 9%
Electricity tariff remains unchanged at 12.72%
Additionally, he said the province has made strides in the reclassification of vacant land, increasing the rebate on such properties from 10% to 30%.
This initiative aims to encourage development and investment in the region, with particular incentives for agricultural lands transitioning to vacant statuses, he explained.
He further highlighted that the the overall budget has seen a transformative reduction from the proposed R71.3 billion to R70.9 billion, comprising an operating budget of R63.6 billion and a capital budget of R7.3 billion.
Xaba reaffirmed the municipality's commitment to infrastructure renewal, noting an increase in the capital budget to 10.3%—aligned with national norms for expansion and upgrade.
In a broader context, the mayor outlined initiatives aimed at fostering economic development and job creation within the city. A considerable R600 million will be allocated to key economic nodes for catalytic projects expected to spur investments worth R217 billion, paving the way for the creation of approximately 300,000 jobs. Projects like the redevelopment of the beachfront, supported by a R2 billion investment from Southern Sun, are envisioned to redefine Durban's appeal as a premier tourism hub.
Moreover, the city is actively pursuing inner-city regeneration projects, aiming to rejuvenate the central area with enhanced public safety, tackling homelessness, and eradicating dilapidated buildings. In collaboration with the national government, millions have been secured to facilitate these ambitious undertakings.
As Xaba addressed the audience, he reiterated the importance of cooperation among all social partners to foster growth and maintain momentum in infrastructure improvements.
"To achieve our vision of making eThekwini Africa's most caring and liveable city, a collective effort is required," he said.