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IOL News
4 days ago
- Business
- IOL News
eThekwini's budget sparks hope among business leaders, yet tariff hikes worry small enterprises
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
The Herald
01-05-2025
- Business
- The Herald
Financial barriers faced by township businesses highlighted at G20 session
A lack of access to funding for township entrepreneurs due to government red tape was a burning issue at the second session of the provincial G20 in Gqeberha. At Wednesday's event at the Nangoza Jebe Hall in New Brighton, speakers addressed the financial challenges faced by township business owners. Small business development minister Stella Ndabeni led the talks. Speaking on the sidelines, Nelson Mandela Bay mayor Babalwa Lobishe said she would lobby Ndabeni to provide resources to assist aspiring spaza shop owners and those wanting to grow their establishments. 'The eminent challenge is resource mobilisation in terms of the spaza shops,' Lobishe said. 'In December, the minister assisted in buying some of the equipment for spaza shops.' Lobishe said foreign nationals predominantly owned spaza shops. 'We want spaza shops in shipping containers. 'We requested the minister to assist us with the containers as part of this programme to grow small business owners. 'To ensure that local people entered that space in numbers, we called for people to apply for shipping containers they could operate from.' She said applications closed in March. Lobishe said they would assist entrepreneurs with rezoning their properties to ensure everything was in place when the containers arrived. 'We want them to be trained so they are equipped to grow,' she said. The meeting was attended by entrepreneurs from townships such as Motherwell and KwaNobuhle, along with Nafcoc representatives. Ndabeni said documentation required by financing institutions in the public and private sectors proved challenging. She said her department had developed a funding policy for small businesses, outlining the requirements for entities seeking to support township entrepreneurs. 'We are workshopping finance institutions and the entrepreneurs on this, who face challenges with the documentation required before their applications can be approved. 'We are here to listen to entrepreneurs across the country to ensure we improve how we support small businesses so they can access funding instead of being left out.' Ndabeni said the policy had received cabinet approval. The Herald
