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IOL News
2 days ago
- Business
- IOL News
eThekwini mayor unveils budget adjustments to boost economic growth and infrastructure
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.
IOL News
26-05-2025
- Business
- IOL News
eThekwini mayor says tariff hikes for water, refuse removal and rates revised after communities' pleas
eThekwini Mayor Cyril Xaba said the City had listened to the concerns raised by communities during public meetings on the budget and had revised tariff hikes. Image: Supplied EThekwini Municipality mayor Cyril Xaba says that the City is committed to addressing service delivery challenges that are plaguing the municipality. Xaba acknowledged systemic weaknesses that continue to frustrate residents while he presented the 2025/26 budget at a council meeting yesterday. Xaba said that the municipality will be rolling out a bold new approach to boost service delivery that hinges on real-time accountability, regional management and technology-driven innovation. The total budget for 2025/2026 financial year is R70.9 billion which is made up of an operating budget of R63.6 billion (or 89,7% of the total budget) and a capital budget of R7.3 billion (or 10,3% of the total budget). He added that the City had listened to concerns raised by communities about proposed tariff increases for the 2025/26 financial year and had made adjustments. 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 during budget public meetings residents had raised issues affecting them including the tough economic climate, unemployment, the high cost of living and concerns about service delivery. "To demonstrate that these consultations were not a box-ticking exercise, we have listened to all the inputs and considered the concerns raised by the residents. In this regard, we are happy to announce that the tariffs have been critically reviewed and revised." The adjusted tariffs are: The proposed domestic water tariff increase has been reduced from 15% to 13%, the water tariff increase for business has been reduced from the proposed 16% to 14%. The proposed domestic sanitation tariff increase of 13% has been reduced to 11%, whilst the proposed sanitation tariff increase for business has been reduced from 14% to 12%. The average property rates increase has been reduced from 6.5% to 5.9%. The proposed refuse tariff increase for domestic households has been reduced from 9.9% to 9% in line with the tariff increase for business. The proposed tariff increase for electricity of 12.72% remains unchanged. The mayor added that the rebate on vacant land will be increased to 30% in 2025/2026 from 10% in 2024/2025 upon application and approval. The main focus of the budget is the replacement and rehabilitation of infrastructure and the implementation of the trading services turnaround strategies to ensure efficient and effective service delivery. Xaba said this is not just a promise, but a commitment that has come to define the posture of the leadership and indeed the entire management of the city. Speaking on the issue of water supply, Xaba said the municipality had taken note of all the water-related issues that were raised during the budget hearings which include water meters being out of stock, water outages, water leaks, aging infrastructure as well as flood damaged infrastructure that has not yet been repaired. He said the eThekwini Water and Sanitation Turnaround Strategy, approved in April 2023, had seen achievements including a 30% reduction in repair backlogs, increased operational resources and major partnerships with the Department of Water and Sanitation, the World Bank and uMngeni-uThukela Water. "To secure consistent water supply across the municipality, we have completed several critical infrastructure projects. These include the Northern Aqueduct which has improved water supply in Phoenix, Amaoti and Verulam, new rising mains from Hazelmere to Grange and the recommissioning of the Grange-to-Mt. View pumping main. "We are also making progress on the replacement of the Southern Aqueduct, a pipeline that supplies water to Umlazi, Chatsworth, Shallcross, Folweni, KwaMakhutha and many other communities in the south. This R1.2 billion project, will be completed by August next year," Xaba said. The budget will be debated in council on Thursday. THE MERCURY
IOL News
26-05-2025
- Business
- IOL News
Durban's R70 billion budget: Mayor says plans in place to bury potholes, sweep the street and keeps the lights on
Ethekwini Mayor Cyril Xaba stated that they are committed to address service delivery challenges that are plaguing the municipality. Image: Thuli Dlamini / eThekwini Municipality eThekwini Mayor Cyril Xaba stated that they are committed to addressing service delivery challenges that are plaguing the municipality. Xaba acknowledged systemic weaknesses that continue to frustrate residents while he presented the 2025/26 budget at a council meeting on Monday. Xaba said that the municipality will be rolling out a bold new approach to boost service delivery that hinges on real-time accountability, regional management and technology-driven innovation. The total budget for 2025 and 2026 is R70.9 billion which is made up of an operating budget of R63.6 billion (or 89,7% of the total budget) and a capital budget of R7.3 billion (or 10,3% of the total budget). Xaba said that the municipality will conduct unannounced site visits, artificial intelligence tools, and decentralised management will form the backbone of the municipality's renewed push for service excellence. He said that the municipality is not happy with the response time after service delivery queries have been raised, particularly when dealing with a water leaks. 'To close the gaps, we are promoting 'transversal management' and tighter standard operating procedures between municipal units. Sometimes they take long to respond to a water leak because they don't have equipment to dig up that particular pipe. Another example is where the water department digs up a road to replace a water pipe, but the roads department does not come and fix the road timeously. This will help resolve such issues and we are already noticing the impact,' Xaba said. 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 ✕ The main focus of the budget is the replacement and rehabilitation of infrastructure and the implementation of the trading services turnaround strategies to ensure efficient and effective service delivery. Xaba said this is not just a promise, but a commitment that has come to define the posture of the leadership and indeed the entire management of the city. 'We will bury potholes, sweep the street, cut the verges and keeps the lights on,' he said. The budget was presented at 17 budget hearings across the City and to all stakeholders including business, the disability sector and traditional leaders from 22 April to 17 May. Xaba said the municipality faces the following challenges: Infrastructure decay in key urban and township areas Growing informal settlements and housing backlogs High levels of unemployment and youth disillusionment Financial constraints and revenue collection difficulties • Climate vulnerability and a need to accelerate resilience
IOL News
24-05-2025
- Business
- IOL News
How Durban's R70. 9 billion budget aims to transform infrastructure and manage tariff adjustments
The eThekwini Municipality's R70.9 billion proposed 2025 and 2026 Medium Term Revenue and Expenditure Framework (MTREF) budget is being scrutinised by ratepayer associations. The eThekwini Ratepayers Protest Movement said they still object to the proposed tariff increases outlined by the municipality. Image: Supplied The eThekwini Municipality's R70.9 billion proposed 2025/26 Medium Term Revenue and Expenditure Framework (MTREF) budget is being scrutinised by ratepayer associations. The MTREF reports will be discussed at a council meeting on Monday for approval. The proposed budget was approved by the Executive Committee (EXCO) on Friday. The municipality stated that the budget is shaped by extensive public consultations and National Treasury guidelines and that the budget prioritises infrastructure reconstruction, following recent storm disasters. It said the budget strengthens trading services and the assurance of sustainable service delivery. The 2025/26 budget comprises a R63.6 billion operating budget and a R7.3 billion capital budget. A significant focus of this MTREF is the reconstruction and rehabilitation of infrastructure damaged by recurring storms, with a 'build back better' approach to mitigate future risks. The budget also emphasises turnaround strategies for trading services to enhance efficiency and improve the quality of life of residents. Acknowledging the economic pressures on households, the municipality has revised several proposed tariff increases, following an extensive public participation process held from April 22 to May 17, 2025. Key adjustments for the 2025/26 financial year include: Assessment Rates: The increase was reduced from 6.5% to 5.9% Water Tariff: Residential increase reduced from 15% to 13%, and business from 16% to 14%. Sanitation Tariff: Residential increase reduced from 13% to 11%, and business from 14% to 12%. Refuse Tariff: Domestic increase reduced from 9.9% to 9% Electricity Tariff: Set at a 12.72% increase, as guided by the National Energy Regulator of South Africa (NERSA). The R7.3 billion capital budget will be funded through a combination of grants (R3.24 billion), internal funding (R2.06 billion), and external borrowing (R2 billion). The budget formulation process included comprehensive public hearings across all regions and engagement with various stakeholders, including business and traditional leaders, as well as opportunities for comment through multiple media platforms. The municipality stated that public concerns, such as high tariffs, road rehabilitation, housing project progress, and maintenance of social facilities, were taken into consideration, leading to amendments to the proposed budget. eThekwini Mayor Cyril Xaba said that following a benchmarking engagement on April 23, the National Treasury found the budget to be credible, relevant, and sustainable, while noting areas for improvement in the Municipal Standard Chart of Accounts data. Asad Gaffar, chairman of the eThekwini Ratepayers Protest Movement, said they still object to the proposed tariff increases outlined by the municipality, in the context of a deepening affordability crisis, increasing resident debt, and ongoing failures in service delivery. Gaffar said the ERPM finds these proposed increases both indefensible and unsustainable. The ERPM concerns were affordability crisis, escalating debt levels, service delivery failures, and lack of accountability. It continues to push for oversight of contractor and municipal projects. 'All proposed tariff adjustments must be suspended until there is clear evidence of improved service delivery and proper use of current revenue. The municipality must provide full disclosure on how previous tariffs were allocated, with a detailed plan for how any future increases would be used,' Gaffar said. Ish Prahladh, from the eThekwini Ratepayers and Residents Association (ERRA), said they have submitted a lengthy list of objections concerning tariff increases from all the ERRA affiliates. [email protected]
IOL News
19-05-2025
- Business
- IOL News
Moody's warns of imminent financial crisis for Transnet amid potential downgrade
Global rating agency Moody's has warned that Transnet could run out of money within three months Image: Leon Lestrade/ Independent Newspapers Global rating agency Moody's has warned that Transnet could run out of money within three months unless the government steps in with a bailout, as the state-owned company struggles with debt and weak cash flow. In a statement issued to the media last week, the rating agency said it had placed the state-owned transport and logistics company on review for possible downgrade. "Today's rating action reflects our growing concern over Transnet's unsustainable capital structure, its deteriorating liquidity position, lack of formal agreement so far on additional government support, and the slower-than-planned pace of operational improvements," the rating agency said. Moody's also pointed out that, although the government had provided a R47 billion guarantee facility in December 2023, this funding has been fully exhausted. In the past Transnet has faced significant operational and financial challenges, including infrastructure damage, equipment shortages, and maintenance backlogs. The company reported a loss of R7.3 billion for the 2023/24 financial year. "This facility has been fully exhausted and expired on 31 March 2025. While Transnet still has undrawn available loan commitments of around ZAR7 billion and some cash as of the end of March 2025, we expect this amount of available liquidity sources will only be sufficient to reliably cover the company's operating and investing needs as well as upcoming debt maturities for the next three months". 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 ✕ Ad Loading The rating agency also emphasised that Transnet requires additional government support to refinance its upcoming debt maturities and secure funding for its expanded capital expenditure program. "We believe the company requires additional government support to refinance upcoming debt maturities and secure funds for its expanded capex program. "The company faces debt amortization payments on a near-monthly basis during the 2025/26 financial year ending March 2026, with the next substantial maturity comprised of a ZAR9.9 billion local bond due on 19 August 2025. "We believe the government remains supportive of Transnet and will provide additional guarantees or other assistance to prevent default on its upcoming debt maturities. However, the lack of a formal announcement so far creates uncertainty and heightens default risk,". IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
