MEDIA STATEMENT BY ETHEKWINI MUNICIPALITY MAYOR, CLLR CYRIL XABA, 22 FEBRUARY 2026
• Programme Director and Deputy Head of Communications: Ms Gugu Sisilana
• CFO: Dr Sandile Mnguni
• Executive Directors and Directors present
• Members of the media
Good day
From the outset, let me thank all of you for making time in your busy schedules to attend this media briefing, which has been convened to update the residents of eThekwini on key matters of importance to our city.
Among the issues we will update you on include the impending unveiling of statues of our struggle stalwarts, key interventions to address homelessness, the City’s financial outlook, and the relocation of flood victims.
Before delving into these matters, it would be remiss of me not to share with the residents of eThekwini and the people of South Africa that eThekwini is rising, and we are firmly on an upward trajectory.
This progress has been confirmed by the recently released Business Confidence Index report by the University of KwaZulu-Natal. The report indicates that business confidence has significantly increased from 52.12 points in the third quarter of 2025 to 63.38 points in the fourth quarter. This demonstrates that economic conditions in eThekwini are steadily improving. We attribute this success to the political stability currently prevailing in the City, which has paved the way for greater accountability and improved performance. What is particularly encouraging is that the report also indicates that businesspeople’ s perceptions of service delivery have improved.
As further affirmation of our progress, Durban was recently ranked among the world’s top destinations by Time Out Worldwide. In its list of The Best Places to Travel in 2026, Durban secured 14th place out of 100 global cities, further consolidating our position as a premier destination for tourism, leisure, and entertainment.
A few days ago, we also received international recognition as a global leader in climate action through inclusion in the Carbon Disclosure Project Cities A-List, a prestigious global platform for reporting climate action. This recognition affirms that we are on the right path toward achieving carbon neutrality by 2050 and demonstrates that eThekwini understands that economic development and climate resilience are not mutually exclusive, but mutually reinforcing.
To further highlight that eThekwini is rising, we are currently implementing over R227 billion in catalytic projects across the City, which are expected to create more than 300 000 sustainable jobs. To fast-track implementation, we are collaborating with all spheres of government through the District Development Model to remove bottlenecks.
I am also pleased that the City Manager has embarked on a focused drive to unlock investment opportunities by convening Investor Fridays. These engagements bring together investors and the City to resolve obstacles in catalytic projects, including infrastructure upgrades, expediting water-use licences, and facilitating by-law approvals. This forms part of our broader strategy to deepen collaboration with investors and developers, while positioning Durban as a premier destination for both investment and tourism.
UNVEILING OF STRUGGLE ICONS STATUES
Part of this strategy includes expanding tourism infrastructure to enhance our offerings and encourage visitors to stay longer in Durban. The 9-metre-long bronze statues of our struggle stalwarts Nelson Mandela and Oliver Tambo, which will be unveiled on 6 March by His Excellency, President Cyril Ramaphosa, form part of our commitment to strengthening heritage tourism.
During the Festive Season, the City attracted over 1.2 million visitors, contributing close to R9 billion to the GDP. I have no doubt that with expanded offerings, visitors will stay longer and contribute even more to our local economy. It is for this reason that we are steadily investing in tourism infrastructure, including the R1 billion investment unveiled in December for the new Durban Fun World, which will be developed into a world-class amusement and family entertainment park.
Together, these tourism attractions, will enhance the visitor experience in our City. Even before their official unveiling, the statues, procured at R11 million each, are already generating excitement among local and international visitors alike. This demonstrates their cultural significance and economic potential to attract more visitors to Durban. I can assure you that, going forward, no visitor will leave Durban without experiencing this impressive artistic tribute.
Beyond tourism, the statues and their locations carry profound historical significance. Two weeks after his release from prison in 1990, Nelson Mandela addressed his first rally in Durban at Kings Park Stadium, where he delivered a defining message that shaped the trajectory of our nation. Speaking before more than 200 000 people, he called for peace, unity, and reconciliation, declaring and I quote “Take your guns, spears and pangas and throw them in the sea. Close down the death factories. End this war now.”
The impact of this message in galvanising South Africans to unite as a rainbow nation cannot be quantified in monetary terms. The work of these struggle icons in building a democratic, non-racial, and peaceful society transcends any financial measure.
We wish to clarify that no financial resources were diverted from service delivery projects to fund the statues of our iconic leaders.
These statues were financed through allocations made in previous years’ budgets, and therefore did not impact current or ongoing service delivery commitments.
We are aware that detractors may attempt to peddle a misleading narrative suggesting otherwise. Let it be unequivocally stated, service delivery remains our foremost priority, and the municipality continues to channel resources toward projects that directly benefit our communities.
The statues stand as symbols of heritage and pride, funded responsibly and transparently, without compromising the delivery of essential services to our people.
As we build new monuments to address distortions and imbalances in our heritage landscape, we will also preserve existing ones to affirm our diverse histories. In this context, we are engaging with the Consul-General of Portugal to relocate the sculpture of the renowned Portuguese poet, Fernando Pessoa, from the city centre to the Durban Botanical Gardens. This initiative will not only honour and preserve the legacy of this literary icon, but will also promote the shared heritage of South Africa and Portugal.
ADDRESSING HOMELESSNESS THROUGH COMPASSION
Ladies and Gentlemen, as the leadership of the city, we continue to be guided by a bold vision of making eThekwini the most caring and liveable City.
It is in this context that we are intensifying our multi-sectoral plan to address homelessness. At the heart of this plan is a multi-pronged strategy centred on prevention, compassion, reintegration, and long-term support. We call upon the people of eThekwini to join hands with the municipality to address this challenge in a lawful, humane, and sustainable manner.
Working with various stakeholders, we have adopted an approach of direct engagement with homeless individuals to better understand their needs and implement appropriate interventions. As you may have observed, I interacted with them last week, and our next step is to bring religious leaders on board to provide spiritual guidance and support. This engagement is planned for the first week of March. Thereafter, a coordinated series of interventions involving the municipality, Non-Governmental Organisations, social workers, and health professionals will follow.
We firmly believe that a people-centred approach, one that recognises the unique circumstances of each individual, is essential. Our intention is to help individuals reconnect with their families, access social services, and rebuild their lives. For those who wish to reintegrate, we call upon family members to partner with us and welcome them with open arms.
This approach will also guide the work of the newly built Sakhithemba Wellness Centre in Illovo, south of Durban. The centre will offer skills development and support programmes aimed at assisting individuals to overcome substance abuse and reintegrate into society.
SETTLING OF FLOOD VICTIMS
Ladies and Gentlemen, we remain deeply concerned that victims of recurring floods have been living in temporary emergency accommodation for an extended period. This has significantly affected their lives and livelihoods. In a decisive effort to restore their dignity, the municipality is implementing a housing project that will deliver close to 1 200 houses. This forms part of the broader Cornubia Housing Development Project, which is expected to yield 25 000 units upon completion.
Last week, I conducted an oversight visit to assess progress on the construction of 113 houses for flood victims, which are scheduled for completion next month. To accelerate relocation into family-friendly structures, we have agreed with the provincial and national Department of Human Settlements that, while permanent construction continues, we will also build 400 Temporary Residential Units (TRUs) to accommodate residents currently living in Temporary Emergency Accommodation.
There is also a process underway to finalise the refurbishment of 500 units at Montclair Lodge. I am optimistic that by June this year, more than 1 000 units will be available to accommodate those currently in temporary emergency accommodation.
As construction progresses at Cornubia, we are also accelerating connections to basic services such as water, sanitation, and electricity. The Cornubia Housing Development Project will not only bring relief to flood victims, but also to residents currently living in transit camps.
WATER INFRASTRUCTURE
Ladies and gentlemen, water provision in the city is steadily stabilising as we accelerate the implementation of various initiatives aimed at reducing non-revenue water. These efforts include responding to reported leaks and burst pipes within 24 hours. As a result, our water storage systems have significantly stabilised.
Furthermore, we are investing in the upgrading of existing infrastructure and the construction of new water infrastructure to meet both current and future demand across the city.
In the south of Durban, work on the installation of the R1.2 billion Southern Aqueduct, which supplies water to more than 1.2 million people, is progressing well. We are confident that we will meet the target delivery date of December this year. The project entails replacing the 70-year-old 950mm-diameter concrete pipe with a new 1 200mm-diameter steel pipe. This pipeline conveys water from the Durban Heights Reservoir in Reservoir Hills to downstream areas including Chatsworth, Shallcross, St Wendolins, Nagina, Northdene, Queensburgh, Welbedacht, Umlazi, Folweni, and Nsimbini.
We have also intervened in the northern regions by commissioning the Northern Aqueduct, which has stabilised water supply in areas such as Phoenix, Verulam, uThongathi, Durban North, and Umhlanga. In November last year, we successfully commissioned the newly upgraded Ntuzuma Pump Station at a cost of R56 million. This upgrade has significantly improved the performance and reliability of the pump station, resulting in a consistent water supply to communities including Ntuzuma, KwaMashu, Inanda, Bester, Ezimangweni, Inhlungwana, Emachobeni, Lindelani, and Richmond Farm.
Our long-term solution to the city’s water supply challenges is the construction of the 100-megalitre Umkhomazi Dam. We are pleased to report that the project is firmly back on track after suffering court action. The parties to the dispute have found each other and are working collaboratively to accelerate implementation. This R24 billion project will provide eThekwini Municipality with an additional 60 megalitres of water supply.
CITY’S FINANCIAL HEALTH
Ladies and Gentlemen, we are able to undertake this work because our City remains financially stable and fully operational. We continue to strengthen compliance, improve cash management, and work with both government and consumers to enhance payment levels so that we can sustain quality service delivery
I wish to reiterate that the City’s financial position remains stable and sustainable, despite a constrained economic environment and rising service delivery pressures.
The key indicators supporting this position include:
• The City continues to table funded budgets in compliance with the Municipal Finance Management Act (MFMA)
• The budget is supported by realistic revenue assumptions
• The City continues to meet its financial obligations, including salaries, bulk purchases, creditor payments, and loan repayments
• Revenue collection remains resilient, supported by ongoing credit control and customer management initiatives
• An unqualified audit opinion
• An investment-grade credit rating
• The municipality remains financially functional and capable of delivering services
The reported 17 days’ cash on hand must be understood in proper context:
• This measure fluctuates during the year depending on payment cycles, collections, and when loan is drawn
• It reflects a point-in-time snapshot rather than the City’s full liquidity position. The full liquidity position can only be properly assessed at the end of the financial year (June), taking into account the approved budget and closing cash position.
We wish to assure residents that the municipality actively manages cash through:
• Revenue collection
• Expenditure controls
• Cash-flow optimisation measures
Importantly, the City continues to honour its financial commitments and maintains access to additional liquidity management instruments where required. While the cash coverage ratio is currently under pressure, service delivery continues in line with the approved budget. Cash coverage is projected to improve to over 30 days by the end of June.
Let me also address misleading statements regarding irregular expenditure. Irregular expenditure primarily refers to procedural non-compliance with supply chain regulations under the MFMA, such as non-compliance with local content provisions. It does not automatically imply fraud or financial loss. In many cases, value for money was received, even though prescribed processes were not fully followed.
An increase in reported irregular expenditure may arise from ongoing multi-year contracts previously identified as irregular, improved audit scrutiny, or the identification of historical matters. This reflects enhanced transparency rather than deteriorating financial management.
As a municipality, we are undertaking the following actions to address irregular expenditure:
• Strengthening Supply Chain Management controls and automating processes
• Enforcing consequence management where wrongdoing is confirmed
• Processing condonation in line with MFMA requirements
• Ongoing compliance training for officials
• Enhanced oversight by Council and Audit structure
These measures aim to achieve a sustained reduction in irregular expenditure.
Ladies and Gentlemen, the municipality continues to face pressure from outstanding debt owed by government institutions and consumers, which directly impacts cash flow, days’ cash on hand, and service delivery capacity. A significant portion of this debt relates to unpaid consumer accounts, and sustained non-payment places pressure on the City’s ability to maintain infrastructure and deliver services.
We therefore urge all customers to pay their municipal accounts on time or approach the municipality to enter into structured and affordable payment arrangements.
The City is actively engaging provincial and national departments to settle outstanding accounts. Intergovernmental processes are underway to improve payment discipline across the public sector, and settlement plans are being pursued where necessary.
The municipality remains committed to supporting residents and businesses experiencing financial distress, while safeguarding the City’s financial sustainability. In this regard, we will enforce the credit control policy, intensify disconnections where required, address illegal connections, and ensure accurate billing for services consumed.
In closing, I wish to assure the residents of eThekwini that our administration remains firmly committed to:
• Protecting the City’s financial sustainability
• Improving liquidity levels
• Reducing irregular expenditure year on year
• Strengthening governance and accountability
• Maintaining and improving service delivery
While the City will continue to fulfil its responsibilities, building a stable, functional, and financially sustainable municipality requires collective effort. We therefore call upon residents and businesses to work with us as partners in progress.
I thank you.
