eThekwini

IDP

1. ECONOMIC DECLINE, SMME PRESSURE AND UNEQUAL INVESTMENT

The municipality is experiencing significant economic decline characterised by low GDP growth, high unemployment, and job losses, resulting in diminished economic confidence and a shrinking tax base. To reverse this trend, the city should implement clear economic recovery strategies focused on investment attraction and employment creation. Simultaneously SMMEs face operational pressures, often merely covering municipal costs, which hinders entrepreneurship and job creation. To enhance inclusive growth and reduce disparities, the municipality must prioritise balanced investment across all regions, focusing on local economic zones and underdeveloped areas.

2. INFRASTRUCTURE INVESTMENT AND SERVICE DELIVERY RELIABILITY

Infrastructure investment is crucial, with current capital expenditure at 8% falling short of the recommended 10%-13% benchmark. Service delivery failures, such as inadequate stormwater systems and unstable electricity, negatively affect residents, businesses and tourism. Strengthening preventative maintenance, accountability, and operational budgets could enhance reliability. The housing backlog of 474,000 units needs updated metrics to better assess progress, with recent deliveries reported at 205,000 homes and 23,000 rental units transferred.

3. TOURISM COMPETITIVENES AND TRANSPORT LOGISTICS DEVELOPMENT

Tourism is a crucial economic driver for the municipality, yet challenges like declining beach quality, weak infrastructure, and insufficient investment are hindering Durban’s competitiveness against cities like Cape Town. While Durban’s location as a port city offers strategic advantages, inefficiencies in rail systems and transport integration limit its logistics potential. Developing a coherent transport and logistics strategy with better coordination and investment could elevate economic productivity and competitiveness.

4. GOVERNANCE, ICT INNOVATION AND COMMUNITY STABILITY

Strong governance reforms, particularly in procurement and financial accountability, should be prioritiSed in the IDP to reinvest savings into infrastructure. Community stability is threatened by issues like crime and poor service delivery, negatively impacting property values and investment attraction. To foster a stable environment, the IDP should emphasise inclusive planning, stronger law enforcement, and improved services in underserved communities, which will enhance economic resilience and sustainability.

Budget

1. HEADLINE TARIFF HIKES VS INFLATION

  • Water +15% (domestic) / +16% (business)
  • Sanitation +13% (domestic) / +14% (businesses
  • Refuse +13%
  • Electricity +10.5%

Additionally, concerns about property rates highlight their disproportionate burden on owners and potential deterrence to investment, with rates in eThekwini compared unfavourably to neighbours like KwaDukuza. A review of the rates policy is suggested to enhance investment incentives and economic growth.

2. BUDGET AND REVENUE COLLECTION

While tariff increases and revenue recovery are being prioritised, there’s a need to reduce financial leakages and enhance expenditure discipline. Effective financial management necessitates not just improved revenue collection but also better spending controls. Recommendations include clearer reporting on UIFW trends, reductions in expenditure, and specific actions to boost financial accountability. Transparency in procurement and governance reforms is essential to ensure efficient resource use and enhance service delivery.