In its draft budget for the 2022/23 financial year, the eThekwini Municipality indicated a 100% increase in the rates randage in respect of vacant land. This sudden increase is of course extremely detrimental to property developers.

As a result of the increase, SAPOA, various of its members, and other organisations, including the KwaZulu Natal Growth Coalition, commenced engaging the Municipality regarding the increase.

Various correspondence was exchanged between the parties, and a technical/war room committee was established, consisting of members of the various role players to discuss this issue, and other issues facing the business community in the area.

As a result of these engagements, the Municipal Manager provided an undertaking that the issue of the doubling of vacant land rates would be addressed in the 2023/24 budget process. It was further indicated that SAPOA members would be excused from paying the increased rates in the interim.

In April 2023, when the draft budget for 2023/24 and the subsequent year was published by the Municipality, it transpired that, instead of reversing the previous increase, a mere 15% decrease in the rates randage on vacant land is proposed for the 2023/24 financial year, with subsequent increases of 5% for each of the two following years. This is of course contrary to the assurances provided by the Municipality to SAPOA and its members.

Correspondence was addressed to the Municipality regarding this issue, calling upon it to not only provide all records leading to the two decisions, but also that the budget be amended to reverse the previous increase in respect of vacant properties, together with an unequivocal undertaking that property owners who have not paid the increased rates portion will not be penalised for such non-payment, that their accounts will be adjusted, and that any interest raised on the improper increase raised will be written off.

The Municipality failed to provide an acceptable response, as a result of which litigation was instituted against the eThekwini Municipality.

The litigation consists of two parts:

  • Part A: An interdict was sought, prohibiting the Municipality from enforcing the increased rates on vacant land, pending a judicial review of both the decisions.
  • Part B: The court was asked to review and set aside the decision taken by the Municipality in 2022 to double the rates randage on vacant land, as well as the 2023 decision not to reverse the 2022 decision.

The Court refused the interdict sought in Part A. The refusal of the interdict does not impact the review done in Part B, and merely means that property owners in the eThekwini Municipality have to continue making payment of rates as it appears on their account.

The Municipality failed to provide the record leading up to the decision to double the rates on vacant land timeously. Eventually, a portion of the record was delivered, but remained incomplete, and further documents had to be requested.

Despite delivery of a supplementary record by the Municipality, it is apparent that documents that ought to have formed part of the record was not included therein.

Upon receipt of the entire record from the Municipality, spanning approximately 4500 pages, we amended our founding affidavit as well as the relief sought, as we are entitled to do in terms of the court rules. Our amended pages were delivered on 31 October 2024.

The Municipality delivered their answering affidavit in May 2025.

Due to the substantial lapse of time since the initial decision to double rates on vacant land was taken, counsel remains concerned about the probability of success, if we seek to reverse that decision. This is premised on the fact that it will be difficult to “unscramble the egg”, as subsequent budgets build on the amounts accepted in previous budgets. As a result, the relief sought was amended so as to declare the decision to double rates on vacant land unlawful and unconstitutional, without substituting new values in respect of property rates.

Furthermore, directives are sought in order to compel the Municipality to comply with its legislated obligations pertaining to consultation and future increases in municipal rates.

A SAPOA member has recently reported that, comparatively speaking, eThekwini’s

rates on vacant land is excessive.

The following figures were reported for a 1ha property:

  • eThekwini R208 333 pm
  • Johannesburg R 79 000 pm
  • Cape Town R29 100 pm

It was further indicated that both Cape Town and Johannesburg offer development initiatives, which eThekwini does not.

These comparative figures, and the effect thereof on property development, will be shared during the upcoming meeting with the City’s executives.

During April 2025, a new mayor was appointed in eThekwini, and a fruitful introductory meeting has been held. The city’s executive have indicated a desire to engage with SAPOA to amicably resolve the dispute.

As a result, various meetings have been held for the parties to attempt to resolve the dispute. Should the attempts to settle fail, our replying affidavit will be delivered, and the matter will be enrolled for hearing. It is anticipated that the next meeting will be held in February 2026.