Latest news with #R70.9
IOL News
2 hours 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
3 days ago
- Business
- IOL News
Political parties guarded on effectiveness of Durban's R70. 9 billion 2025
There were mixed reactions to the eThekwini Municipality's R70.9 billion budget at a council meeting on Thursday. Image: Willem Phungula WHILE the majority of political parties approved the eThekwini Municipality's R70.9 million budget for 2025/2026 at a council meeting yesterday, many were sceptical about whether the objects of the exercise would be achieved. Some questioned whether the budget represented fair enough returns to ratepayers for their monthly outlay, considering the municipality's well-documented service delivery shortcomings. However, the municipality maintained that the budget was took into account their extensive public consultations, where they received the following comments: High tariffs were unaffordable; Ward committees were not active; Poor maintenance of leaking water pipes and sewers; Request for improvements of streetlights; Improvement in the replacement of electricity meters; Road rehabilitation of existing roads was lacking, as they are full of potholes and storm disaster damage; Delayed progress in housing projects; Poor building and maintenance of social facilities such as halls, sports fields, pools, and verges; Insufficient youth programmes. 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 ✕ eThekwini Mayor Cyril Xaba emphasised that the budget was set on a trajectory to improve service delivery and technological innovation. Xaba promised more unannounced site visits and acknowledged that delays in responses to service delivery complaints costed the city. 'We will continue to adopt a financially sustainable revenue model,' he said. According to the municipality, it made amendments to the draft budget after public consultation by reducing water, refuse removal, and sanitation tariffs. ANC councillor Zama Sokhabase said the budget was designed to reshape eThekwini's future and stimulate economic growth with the revitalisation of public spaces and working together for the public. Sokhabase said the budget wiould also focus on health programmes such as teenage pregnancy. Andre Beetge, a DA councillor, said they have heard the same rhetoric year after year, with items adopted several years ago that were not implemented. Plans can be tabled, but the proof remained in service delivery. Beetge said the DA will not support a fairytale budget. IFP councillor Mdu Nkosi stated that the budget would deliver on the municipality's trading services, which included water, sanitation, cleaning, and solid waste management, to keep the city clean. Nkosi said The budget aimed to generate quick wins, gain service delivery momentum, and provide essential services. Councillor Jay Singh, representing the United Independent Movement (UIM), rejected the budget. He condemned the electricity tariff increase as a measure that unfairly targeted compliant ratepayers while failing to address revenue leaks and the city's debt. Singh said the budget lacked concrete plans to dismantle the 'electricity and water mafia' networks profiting from illegal connections in informal settlements. Zwakele Mncwango, of ActionSA, said the tariff increases were high and the budget failed to provide a budget for public transport and crime prevention, adding that the city also failed to collect debt because of poor financial management. Imtiaz Syed, President of Active Citizens Coalition (ACC), said that 75% of the budget was contributed by ratepayers, which he described as an injustice and penalised those who worked daily to pay their bills. Syed said it also did not deal with the informal settlement growth, which was prejudicing ratepayers. Patrick Pillay, leader of the Democratic Liberal Congress (DLC), said he did not support tariff increases that were way above the inflation rate. Pillay said the budget was providing a social package, one of a kind, when compared to other municipalities, that would bring great relief to pensioners, grantees, and the unemployed. Sunitha Maharaj, of the Minority Front, said the ordinary ratepayers needed the same investment in their infrastructure to enjoy the benefits of their payments to the city's coffers. Aslam Shaheed, the leader of the Truly Alliance (TA), said that while the budget vision was bold, it must be grounded in the realities that residents faced daily. 'We should implement a monthly performance review framework directly tied to key budget items, which would provide transparent updates, progress of infrastructure repairs, job creation, and catalytic investments. This would be responsible governance,' Shaheed said. The eThekwini Municipality R70.9 billion budget for the 2025/26 financial year has been adopted today at a full council meeting held at the Inkosi Albert Luthuli International Convention Centre in Durban. Image: Zainul Dawood
IOL News
6 days ago
- Business
- IOL News
Controversial R70. 9 billion budget approved by eThekwini Municipality
The eThekwini Municipality approved a R70.9 billion budget for the 2025/26 financial year at the ICC The eThekwini Municipality approved a R70.9 billion budget for the 2025/26 financial year at the Inkosi Albert Luthuli International Convention Centre Complex on Thursday. This decision comes after Mayor Cyril Xaba presented the budget on Monday, where he highlighted key priorities such as infrastructure development, job creation, and enhanced service delivery. However, while the budget was passed, several political parties including ActionSA, the United Independent Movement and the Democratic Alliance (DA) rejected the budget, arguing that it "fails to adequately address the needs of our citizens." "The budget fails to provide sufficient funding for critical services such as public transport, crime prevention, and land management. The allocation for public transport is insufficient to address the needs of our growing city, and the lack of funding for crime prevention will make the situation worse. "Thirdly, the municipality's financial management is a major concern, " KZN Action SA leader Zwakele Mncwango said.
IOL News
6 days ago
- Business
- IOL News
2026: Political parties weigh in on its impact
There were mixed reactions to the eThekwini Municipality's R70.9 billion budget at a council meeting on Thursday. Image: Willem Phungula The majority of political parties in the eThekwini Municipality have approved the R70.9 billion municipal budget for 2025 and 2026 at a council meeting on Thursday. Councillors representing various political parties had different views about how the budget would benefit the residents of eThekwini. The budget prioritises infrastructure rehabilitation and economic development. The municipality stated that after extensive public consultations, they received the following comments: High tariffs are unaffordable; Ward committees are not active; Poor maintenance of leaking water pipes and sewers; Request for improvements of streetlights; Improvement in the replacement of electricity meters; Road rehabilitation of existing roads, as they are full of potholes and storm disaster damage; Progress in housing projects; Poor building and maintenance of social facilities such as halls, sports fields, pools, and verges; Insufficient youth programmes. 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 ✕ According to the municipality, it made amendments to the draft budget after public consultation by reducing water, refuse removal, and sanitation tariffs. ANC councillor Zama Sokhabase said the budget is designed to reshape eThekwini's future and stimulate economic growth with the revitalisation of public spaces and working together for the public. Sokhabase said the budget will also focus on health programmes such as teenage pregnancy. Andre Beetge, a DA councillor, said they have heard the same rhetoric year after year, with items adopted several years ago that were not implemented. Plans can be tabled, but the proof remains in service delivery. Beetge said the DA will not support a fairytale budget. IFP councillor Mdu Nkosi stated that the budget will deliver on the municipality's trading services, which include water, sanitation, cleaning, and solid waste management, to keep the city clean. Nkosi said The budget aims to generate quick wins, gain service delivery momentum, and provide essential services. Councillor Jay Singh, representing the United Independent Movement (UIM), rejected the budget. He condemned the electricity tariff increase as a measure that unfairly targets compliant ratepayers while failing to address revenue leaks and the city's debt. Singh said the budget lacks concrete plans to dismantle the 'electricity and water mafia' networks profiting from illegal connections in informal settlements. Zwakele Mncwango, of ActionSA, said the tariff increases were high and the budget failed to provide a budget for public transport and crime prevention, adding that the city also failed to collect debt because of poor financial management. Imtiaz Syed, President of Active Citizens Coalition (ACC), said that 75% of the budget was contributed by ratepayers, which he described as an injustice and penalising those who work daily to pay their bills. Syed said it also did not deal with the informal settlement growth, which was prejudicing ratepayers. Patrick Pillay, leader of the Democratic Liberal Congress (DLC), said he did not support tariff increases that are way above the inflation rate. Pillay said the budget is providing a social package, one of a kind, when compared to other municipalities, that will bring great relief to pensioners, grantees, and the unemployed. Sunitha Maharaj, of the Minority Front, said the ordinary ratepayers need the same investment in their infrastructure to enjoy the benefits of their payments to the city's coffers. Aslam Shaheed, the leader of the Truly Alliance (TA), said that while the budget vision is bold, it must be grounded in the realities that residents face daily. 'We should implement a monthly performance review framework directly tied to key budget items, which would provide transparent updates, progress of infrastructure repairs, job creation, and catalytic investments. This would be responsible governance,' Shaheed said. eThekwini Mayor Cyril Xaba said the budget accommodates a new approach to boost service delivery and technological innovation. Xaba added that they will continue to conduct unannounced site visits and are well aware that a delay in response time to service delivery complaints is a cost to the city. 'We will continue to adopt a financially sustainable revenue model,' he said.
eNCA
27-05-2025
- Business
- eNCA
Ethekwini Mayor tables R70.9bn budget
DURBAN - eThekwini Mayor, Cyril Xaba, vowed to tackle the metro's water crisis when he tabled a R70.9 billion budget. WATCH | Budget 3.0 | Debt experts warn of impact of 'stealth tax' It focuses on improving water supply, addressing flood-damaged infrastructure and urban revitalisation. But households must still contend with a proposed 13% water tariff hike. eNCA reporter Zanele Buthelezi filed this report.
