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IOL News
a day 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
07-05-2025
- Business
- IOL News
Frustrated Chatsworth residents voice concerns over proposed budget and water crisis
The draft budget for the 2025/26 financial year stands at R71.3 billion, comprising a capital budget of R7.1 billion and an operating budget of R64.2 billion. They staged a peaceful protest against the proposed budget and Integrated Development Plan (IDP) and threatened to boycott their utility payments if the issues affecting them - more especially the water crisis – was not resolved. Xaba's budget consultation meeting, at the Nelson Mandela Youth Centre, this afternoon, was met with a protest against the tariff increases by frustrated residents . FRUSTRATED residents in Chatsworth, earlier today protested against the proposed tariff increases during Mayor Cyril Xaba's budget consultation, highlighting the ongoing water issues and the need for better service delivery. Xaba said that the budget reflected the municipality's continued commitment to inclusive development, service delivery and infrastructure renewal in all communities. But residents, businesses and stakeholders of Chatsworth and surrounding areas, including Mariannhill, Shallcross, Savannah Park, Malvern, Montclair, Bellair, Bluff, Merebank and Jacobs, expressed their strong dissatisfaction with the proposed budget. They said the ongoing water cuts was exacerbating the problem. Selvan Moodley, of south Durban, the water issues had left them frustrated and the proposed increases was not acceptable. 'The city cannot expect people to pay for services they do not receive. How can they implement increases with the lack or absence of service delivery?' he asked. Chatsworth resident, Raeesa Hoosen, told Xaba the elderly and those who were sickly, were suffering the most with the constant water cuts. 'We do not have water. Yes, there are water tankers, but most people in the area I live in are old and cannot fetch water from the tankers. What happens to them? People are sick and they too cannot access the water that they need from the tankers. We need a better solution,' she said. Another resident from Montclair, Kurshida Kaja, appealed to Xaba to take low income families and those who relied on grants into consideration when budgeting and implementing the increases. 'People are already struggling. We need proper considerations before the increases are implemented. The ordinary citizens cannot afford to pay any more than they already are paying,' Kaja added. The deadline for residents, businesses and stakeholders to submit their inputs into the draft budget and IDP for the 2025/26 financial year is May 17. THE POST
IOL News
23-04-2025
- Business
- IOL News
Ratepayers express concerns over eThekwini's double-digit tariff hikes
eThekwini Ratepayers and Residents Association (ERRA) chairperson Ish Prahladh said the people cannot accept double-digit tariff increases. Image: Supplied Ratepayers in the eThekwini Municipality have voiced their concern over double-digit increases in tariffs and how their money is spent in the Integrated Development Plan (IDP) budgets for 2025 and 2026. The City's 2025/26 draft IDP/Budget consultations themed, Infrastructure Building and Service Delivery Budget, began with the business sector and ratepayers associations on Tuesday. The engagements will conclude on 14 May and after considering all inputs, the draft IDP/Budget will be adopted on 22 May. The R71.3 billion draft budget comprises an operating budget of R64.2 billion and a capital budget of R7.1 billion. The IDP is the key strategy that guides development and service delivery in the City. The plan gives an indication of the goals and initiatives the municipality will focus on over the next five years. eThekwini Mayor, councillor Cyril Xaba, said that the consultations are critical to ensure that residents own their municipality. 'This is your city. We take all inputs very seriously. You have the ability to shape the future of eThekwini.' Some of the major highlights of the draft 2025/26 draft budget are significant amounts being allocated to take care of essential services. About R859 million has been allocated for electricity and this will fund the ongoing extension and reinforcement of existing electricity networks, as well as 17 new substations that are being commissioned. The capital budget for water is R1.15 billion and will be spent mainly on the water loss intervention programme and the replacement of water pipes. Proposed tariff increases for electricity are 12.72%, water 15% for domestic customers and 16% for business. Sanitation is 13% for domestic and 14% for business, refuse removal is 9.9% for domestic and 9% for business. For property rates, the proposed tariff increase is 6.5%. eThekwini Ratepayers Protest Movement (ERPM) chairperson Asad Gaffar said there is a definite sense that mayor Xaba is a much stronger leader than what the city had previously been subjected to. Gaffar said that Xaba has inherited a trust deficit that will be difficult to conquer. Gaffar said the new budget is hitting the ratepayers for an additional R6 billion at a time when service delivery is at an all time low. 'Extended water and electricity outages have left the ratepayers of our city beyond frustrated. Many of our ratepayers have left this city because it's failed them. There are critical projects not yet funded and yet there are parties and music events peppered into the budget to the tune of over R30 million,' Gaffar said. Gaffar said that the tariff increases are beyond the household budgets and people are going to be defaulting on their bills. "With the current tariffs, people are working to pay the municipality. They have no disposable income for property maintenance, school uniforms, car services, tyres, etc. We are slaves to our municipal bills. It's not sustainable,' Gaffar said. Gaffar said the city administration must prove that it is spending ratepayers money for its purpose and start delivering on its core mandates. Gaffar said that the city should prove that it can operate last year's budget without any fruitless and wasteful expenditure before they come to ratepayers demanding more. 'Our rates should be dropped. We pay more than anywhere else in the country on property rates and have to live with polluted rivers, potholed roads, ornamental street lights, broken pavements, overgrown verges, dry taps, power failures, dysfunctional call centres and agents. The list goes on,' Gaffar said. eThekwini Ratepayers and Residents Association (ERRA) chairperson Ish Prahladh said the people cannot accept double-digit increases considering the high unemployment rate in the communities. Prahladh urged the municipality to look at other ways to get revenue beside tariff increases. Prahladh was concerned about the housing crises, the budgets allocated to them and the growing number of informal settlements in eThekwini. 'Not a single house has been built to clear out the shacks from our community. I do not see the budget going anywhere. The entrance to Reservoirs Hills, one of the ratepaying contributors, is in a deplorable state. The place has become a dump. The ratepayers are paying to clean up the area around informal settlements. There is a water pipe exposed from 2022,' Prahladh said.
IOL News
23-04-2025
- Business
- IOL News
eThekwini unveils R71.3bn 'construction site' vision in new municipal budget
The eThekwini Municipality 2025/26 draft budget is expected to prioritise infrastructure development, job creation and social upliftment. The eThekwini Municipality draft budget for 2025/26, dubbed 'building and service delivery budget', is expected to prioritise infrastructure development, job creation, and social upliftment. The total proposed budget for 2025/2026 is R71.3 billion (including entities), which includes an operating budget of R64.2 billion and a capital budget of R7.1 billion. At a council meeting on Monday, Mayor Cyril Xaba said he would like to turn eThekwini into a construction site. Xaba said the budget also reflects inclusive growth and economic resilience, and described the budget process as 'difficult to balance', considering the current challenging economic climate. He said it also focused on expanding public transport networks, support for small businesses, and decent human settlements. Recent floods have caused extensive damage to electricity, water, and sanitation infrastructure. Rapid urbanisation continues to place new demands on infrastructure, he added. 'One of the key national policy developments that will impact this budget is the National Treasury's Trading Services Reform, which seeks to enhance the financial sustainability of our utilities such as water and sanitation, and electricity.' As part of this reform, municipalities must improve cost recovery mechanisms, reduce inefficiencies, and ensure that tariffs reflect the true cost of service provision while remaining affordable to vulnerable communities. eThekwini could receive R3.3 billion for reforms in the 2025/2026 Medium-Term Revenue and Expenditure Framework (MTREF). Capital budget Electricity: R859 million Water: R1.15 billion Sanitation: R550 million Cleansing and Solid Waste: R375 million Engineering Services: R482 million Human Settlements: R749 million Community and Emergency Services: R590 million eThekwini Transport Authority (ETA): R747 million Operating budget Electricity: R23.3 billion Water: R9.98 billion Sanitation: R2.4 billion Cleansing and Solid Waste: R2.4 billion Engineering Services: R2.67 billion Human Settlements: R971.8 million Community and Emergency Services: R7.18 billion eThekwini Transport Authority (ETA): R1.63 billion Democratic Liberal Congress (DLC) Leader Patrick Pillay said he did not support tariff increases that would bring about greater hardship for residents. Pillay said people's voices must be heard, and this process will allow the public to actively participate in determining the budget outcomes. He added that the multibillion-rand draft budget had very critical capital projects in terms of water and electricity infrastructure rehabilitation as well as an operational budget for repairs, cleaning, and maintenance. 'This is critical to enhance service delivery. The public participation process must be meaningful and constructive. We also lambasted the huge unfunded mandate costs of R1.2 billion, the high water loss of 56%, and the owing government debt to the city,' said Pillay. ActionSA KZN Provincial Chairperson Zwakele Mncwango said the draft budget had a blatant disregard for its residents by pushing forward exorbitant tariff increases that will further burden struggling households and businesses. 'While we aim to prioritise residents, other political parties and the eThekwini Metro continues on its destructive path of financial mismanagement and wasteful spending. This municipality has a notorious history of writing off unauthorised, irregular, fruitless, and wasteful expenditure,' Mncwango said. Democratic Alliance (DA) Councillor Andre Beetge said one cannot lose sight that the core inflation rate is presently 3.5%, with headline inflation projected to average around 4.5%. 'We also hear that Nersa will be enforcing an electricity increase of 12.74% and Umgeni will burden the city with an increase of 13.5% against water, but why should the already overburdened ratepayers of this city be expected to foot the bill for the failure of national and state-owned entities to properly manage their institutions?' Beetge said the city is losing 56% of its water, through non-revenue water. 'Taps are running freely as there are no measures to monitor or control non-revenue water, yet we are again expecting, through these increases, for those who contribute to the fiscus to bridge these losses?' he said. 'Whether you listen to the Auditor-General, Public Protector, or Presidential Working Group, all are in agreement that the city is broken, that we need to cut away the fat, we must forego luxuries, eliminate exercises like expensive mayoral breakaways in the Drakensberg, we must plan to save to fix,' Beetge said. [email protected]
