ETHEKWINI NEWSFLASH
FOR IMMEDIATE RELEASE
2026/27 DRAFT BUDGET TABLED FOR PUBLIC CONSULTATION
EThekwini Mayor Councillor Cyril Xaba today, 31 March, tabled the City’s R74.7 billion draft budget for the 2026/27 financial year at a Full Council meeting held at the Inkosi Albert Luthuli International Convention Centre.
The draft budget will now be released for public consultation across all sectors of society.
Following a comprehensive engagement process and consideration of stakeholder inputs, the final budget is expected to be adopted in May 2026.
The proposed budget totals R74.7 billion, comprising an operating budget of R68.8 billion and a capital budget of R5.9 billion.
Mayor Xaba noted that the budget is grounded in principles of sustainability, realistic revenue projections, and the implementation of projects that are ready for rollout.
It reflects the City’s resilience in the face of recent challenges while prioritising infrastructure repair and improved service delivery.
“The 2026/27 draft budget demonstrates the Municipality’s ability to navigate a difficult economic climate and emerge stronger, more sustainable, and better positioned to serve its communities. It balances fiscal discipline with targeted revenue growth, while addressing high debt levels and supporting vulnerable households, infrastructure development, and job creation,” said Mayor Xaba.
As part of its pro-poor approach, the Municipality will continue to provide rates rebates and a basket of free basic services funded through the equitable share.
Qualifying households will receive:
* The first 6 kilolitres of water and effluent disposal free (for properties valued under R350 000)
* Free electricity (65kWh for Municipal supply and 50kWh for Eskom-supplied areas, for households consuming less than 150kWh per month)
* Free refuse removal for qualifying households, including indigent households in rural and informal areas.
Additional sanitation support will be provided to indigent households using VIPs, urine diversion toilets, and communal ablution facilities within informal settlements.
A key priority in the budget is the implementation of Trading Services Reforms, aimed at improving efficiency in water, sanitation, and energy services.
These reforms focus on restructuring operations, enhancing revenue collection, and upgrading ageing infrastructure to improve reliability and reduce service disruptions.
An allocation of R1.1 billion has been set aside for these reforms in 2026/27.
The capital budget of R5.9 billion will be directed towards critical infrastructure and service delivery programmes, including:
* R3 billion for wastewater treatment works upgrades and expansion
* R1.7 billion for water loss reduction and pipe replacement
* R2.4 billion for electricity infrastructure
* R2.3 billion for low-cost housing infrastructure
* R1.1 billion for public transport
* R204 million for bus fleet replacement
* R2.4 billion to address community services backlogs
* R1.4 billion for road rehabilitation and construction
* R999 million for zonal planning
* R503 million for catalytic projects.
The Human Settlements Directorate has been allocated R647 million to support the construction of new low-cost housing, infrastructure development, and interim services for prioritised informal settlements.
In addressing the needs of flood-affected communities, the City will begin relocating affected residents to permanent housing by the end of April 2026.
An initial 113 housing units in Cornubia are ready for occupation, forming part of a broader project to deliver 1 200 homes by the end of the next financial year.
The proposed tariff adjustments are informed by bulk increases from service providers and are designed to balance affordability with the financial sustainability of the Municipality.
The proposed increases are as follows:
* Water: 15% (residential), 16% (business)
* Electricity: 10.5% (residential and business)
* Property rates: 5%
* Sanitation: 13% (residential), 14% (business)
* Refuse: 13%
The City will undertake a series of public participation engagements with residents, businesses, and civil society organisations.
Details of these consultations will be communicated through official Municipal platforms and social media channels.
ENDS
Issued by eThekwini Municipality’s Marketing and Communications Directorate
