ETHEKWINI NEWSFLASH
FOR IMMEDIATE RELEASE
ETHEKWINI MUNICIPALITY FULL COUNCIL DECISIONS
EThekwini Municipality held its ordinary Full Council meeting today, 31 March, where the following items were approved.
2026/27 DRAFT BUDGET TABLED FOR PUBLIC CONSULTATION
Full Council has approved the public consultation process for the R74.7 billion draft budget for the 2026/27 financial year, tabled by eThekwini a Mayor Councillor Cyril Xaba.
The budget, which includes R68.8 billion for operations and R5.9 billion for capital expenditure, will now be opened to engagements with residents, businesses, and civil society ahead of its expected adoption in May.
The budget is grounded in financial sustainability, realistic revenue projections, and a focus on strengthening service delivery and infrastructure.
The draft budget retains a pro-poor approach, with continued provision of free basic services for qualifying households, including water, electricity, and refuse removal, as well as sanitation support in informal and rural areas.
At the same time, the Municipality is advancing reforms in trading services such as water, sanitation, and electricity, backed by a R1.1 billion allocation to improve efficiency, revenue collection, and infrastructure reliability.
Infrastructure investment remains central, with major allocations towards wastewater upgrades, water loss reduction, electricity networks, housing, transport, and road rehabilitation.
Plans also include the relocation of flood-affected communities to permanent housing in Cornubia.
The proposed tariff increases are set at 15% for residential water and 16% for business, 10.5% for electricity, 5% for property rates, 13% for residential sanitation and 14% for business, and 13% for refuse removal, as the City balances affordability with financial sustainability during the consultation process.
ETHEKWINI COUNCIL NOTES STRONG COMPLIANCE AND STEADY FINANCIAL MANAGEMENT
EThekwini Municipality’s Full Council has noted with satisfaction a positive report on the performance of external service providers for the second quarter of the 2025/26 financial year, reflecting a system that remains stable, responsive, and well managed across Municipal directorates and departments.
Tabled at the Full Council meeting, the report confirms full compliance in the submission of performance assessments.
All 544 contracts due for evaluation were assessed, with no outstanding reports.
This represents a 100 percent submission rate across all Municipal directorates and signals strengthened oversight and administrative discipline.
The review, conducted in line with the Municipality’s Supply Chain Management Policy, provides a clear account of service provider performance against contractual obligations.
The findings indicate that most service providers are meeting expected standards, with more than 80 percent of assessments rated acceptable and a smaller proportion achieving outstanding performance.
Contracts rated as poor account for less than three percent of those assessed.
Performance against Key Performance Indicators also remains strong, with over 80 percent of service providers meeting their targets.
This reflects consistent delivery across critical service areas, including electricity, water and sanitation, and human settlements.
While a limited number of underperforming contracts were identified, these remain minimal in relation to the overall number assessed.
The report provides a sound basis for targeted intervention where improvement is required.
BUDGET STATEMENT FOR END OF FEBRUARY 2026
Council has noted the February 2026 budget statement that reflects a municipality that continues to manage its finances with care while responding to a constrained economic environment.
Operating revenue reached 99 percent of the year-to-date budget, indicating stable income collection despite broader economic pressures.
Cash collection remained steady at 93 percent, consistent with the previous financial year.
Expenditure remains well controlled, supported by cost containment measures that prioritise essential services such as water, electricity, and infrastructure.
This approach ensures that available resources are directed to core service delivery needs.
The report notes rising consumer debt levels.
In response, the Municipality continues to implement relief measures to support households facing financial pressure, while encouraging ongoing payment for Municipal services.
Progress has been recorded in reducing non-revenue water, which declined from 58 percent to 53 percent over a three-month period.
This reflects continued efforts to address water losses and improve system efficiency.
In line with its commitment to sound governance, the Municipality continues to refer cases of unauthorised, irregular, fruitless, and wasteful expenditure to the Municipal Public Accounts Committee for investigation, reinforcing accountability and the protection of public funds.
Overall, the report reflects sustained financial discipline, with a clear focus on maintaining service delivery while supporting residents during a challenging period.
INFRASTRUCTURE UPGRADE TO STRENGTHEN WATER SUPPLY IN LA MERCY AND TONGAAT
Full Council has approved the targeted infrastructure upgrade to improve water supply reliability in La Mercy, Desainagar, and Genazzano in Ward 58.
The project will address challenges linked to an ageing 150mm asbestos cement pipeline, which has been prone to frequent bursts, causing supply interruptions and damage to private property.
The approved intervention includes the replacement of outdated infrastructure with modern, durable materials, along with the realignment of the pipeline within a new 12-metre servitude to improve accessibility and maintenance.
Full Council has approved funding of approximately R200,000 for the acquisition and registration of the required servitudes.
The upgrade will support the efficient distribution of water supplied from the Northern Region to the La Mercy Reservoir, which has a storage capacity of 5 megalitres.
PARTNERSHIP WITH ENGINEERS WITHOUT BORDERS SOUTH AFRICA
Council has approved a Memorandum of Understanding with Engineers Without Borders South Africa, establishing a framework for collaboration on community-centred infrastructure development.
The partnership will introduce a human-centred approach to engineering solutions, with a focus on addressing service delivery challenges in under-resourced areas.
Through initiatives such as the Just Infrastructure Lab, the collaboration will support the co-creation of practical and sustainable solutions alongside local communities.
Initial work will focus on water and sanitation interventions, with uMlazi V-Section in Ward 76 identified as a priority site.
The agreement also provides for capacity building through programmes that support skills development among students and engineering professionals, while strengthening the Municipality’s internal technical capability.
To ensure accountability, Council has directed that progress be monitored through quarterly reporting and site inspections.
The agreement does not carry immediate financial implications, with project-specific funding to be considered as initiatives are developed.
ETHEKWINI RENEWS PARTNERSHIP WITH WATER RESEARCH COMMISSION
Council has approved a new two-year Memorandum of Agreement with the Water Research Commission to advance the implementation of sludge-to-technology solutions.
The renewed agreement will enable the completion of work initiated in July 2022, following earlier delays linked to infrastructure constraints.
The project focuses on converting wastewater by-products into usable resources, supporting environmental compliance while exploring opportunities for more efficient and sustainable waste management.
Key priorities over the next 24 months include the commissioning and certification of treatment facilities, skills transfer to Municipal staff, and the sharing of research findings to strengthen sector knowledge.
This partnership supports the Municipality’s broader environmental objectives and its commitment to sustainable service delivery.
COUNCIL APPROVES EXPANDED SUPPORT FOR DURBAN FILM INDUSTRY
Council has approved an expanded funding and support framework for the Durban Film Office’s Industry Development Programme, reinforcing the City’s commitment to growing the local film sector.
The approved measures include an increase in the number of micro-budget film projects supported annually, from three to five, with funding per project raised to R400 000.
The Development Fund will also expand to support three projects at R250 000 each.
Additional support has been allocated to enable filmmakers to access international markets, including increased travel and festival funding.
The total allocation for these initiatives amounts to R3 million over the medium term.
This investment is expected to support job creation, skills development, and broader participation in the creative economy, while positioning Durban as a competitive destination for film production.
COUNCIL APPROVES HOSTING OF 2026 RESURGENCE CONFERENCE
Council has approved the hosting of the third reSURGEnce Conference, which will take place from 24 to 28 July.
The event builds on the success of previous editions, which have strengthened Durban’s standing as a destination for global business and investment.
Organised in partnership with the New York Times, the conference aims to connect African entrepreneurs with the African American diaspora and encourage cross-continental trade and collaboration.
The decision is supported by strong economic outcomes from the 2025 conference, which generated over R30 million in direct economic impact, contributed about R74.3 million to GDP, and created 134 jobs.
To sustain this momentum, the Municipality has set aside R5 million in the 2025/26 financial year for preparatory activities, with a further R20 million allocated for hosting the main event in 2026/27.
These investments are expected to stimulate growth in key sectors such as property, innovation, and international trade.
The 2026 conference will focus on regenerative wealth creation and strengthening partnerships between small businesses and global markets.
It is expected to provide practical platforms for investment, knowledge exchange, and urban development strategies, while positioning Durban as a centre for inclusive economic growth.
ENDS
Issued by eThekwini Municipality’s Marketing and Communications Directorate
