eThekwini's budget sparks hope among business leaders, yet tariff hikes worry small enterprises

IOL News

05-06-2025

eThekwini mayor Cyril Xaba addressing the business breakfast held on Wednesday on the City's budget.
Image: Supplied by eThekwini Municipality
Business and civil society in Durban believe that the eThekwini Municipality has turned a corner and is on track to deliver economic growth, attract tourists, and provide essential services to communities.
They said they had noted that parts of the city that were previously deemed 'uninhabitable' due to the proliferation of criminality and drug abuse are being cleaned up, alongside improvements in the cleanliness of the city and investment in infrastructure that has the capacity to deliver services and unlock billions in potential investments. Stakeholders also said the City's budget for the 2025/2026 financial year was much better than those of previous years and will be a cornerstone to unlocking further potential in the city.
The City held a business breakfast on Wednesday to discuss the budget that was passed by the council a few days ago. The budget, valued at close to R70 billion, detailed the tariffs that have been imposed.
Mluleki Nhlapo, provincial secretary of the National African Federation Chamber (Nafcoc), said the city was on track, especially regarding many of the basics that attract investment and business growth. "You can see that in terms of the improvements in security and cleanliness; the city is now clean at any time of day," he noted.
However, he expressed concerns about the upcoming tariff hikes, stating, "We are not happy with the tariffs; they are going to bite, and the ordinary people are going to feel them," adding that these could limit the growth of small businesses.
Speaking on the budget, Brian Mpono, CEO of the Oceans uMhlanga development, said: "The focus on infrastructure development, job creation, and social upliftment is timely and necessary—and aligns with the vision many of us in the private sector have long advocated."
"Moreover, the commitment to public transport, bulk infrastructure, and turnaround strategies in key services is encouraging. However, these must be delivered with urgency and discipline. Our urban development cannot be hampered by bureaucracy when the private sector is ready to move and invest. Durban's growth story must reflect the aspirations of all who live, learn, and work here," he stated.
Andrzej Kiepiela of the KZN Growth Coalition remarked, "We are indeed a developmental city. Now is the time to be an inclusive, future-focused one, driven by real-time collaboration between business, government, academia, and communities." "The expenditure budget has improved, showing that money is being spent effectively and how to avoid corruption and wasteful expenditure, returning focus to the delivery of projects. The budget is balanced and much better than last year," he said.
Pastor and former ANC MPL Vusi Dube expressed excitement about seeing places like Albert Park coming back to life. "The city is regaining its strength and former glory," he added, noting that the interfaith structures will engage with the City on matters of moral regeneration, community development, homelessness, and drug abuse.
Another attendee at the business breakfast, Zithulele Ndlele, expressed concerns about the lack of opportunities for the youth. "I wish to know the budget allocated for youth development. We need to address the issue of illegal foreigners who have hijacked and taken over all the small businesses in the entire South Beach precinct and tackle crime in the CBD."
Mayor Cyril Xaba stated that the City had tried to reduce some of the tariff increases following pleas from residents who could not afford to pay the proposed increases. 'Because we fully appreciate the challenges our people face as a result of the difficult economic climate, we were able to make changes to the final budget and reduce our tariffs. 'We want to reiterate that the main focus of this budget is the replacement and rehabilitation of infrastructure to ensure efficient and effective service delivery.'
THE MERCURY