Ramaphosa Cites eThekwini Recovery as Model for Reviving Cities

“At the time, the metro was beset by service delivery failures, deteriorating infrastructure and sliding business and investor confidence,” Ramaphosa said.

President Cyril Ramaphosa says progress made in stabilising the eThekwini Metropolitan Municipality in KwaZulu-Natal shows how coordinated leadership and partnerships can help struggling municipalities recover and restore investor confidence.

In his weekly newsletter to the nation, the President highlighted the metro's improving performance, noting that collaboration between government, business, labour and civil society has begun to reverse years of declining service delivery and infrastructure challenges.

Multi-Sector Working Group Driving Recovery

Ramaphosa recently met with stakeholders involved in the Presidential eThekwini Working Group, a multi-sector initiative established in 2024 following widespread concerns from residents and businesses about deteriorating infrastructure and poor service delivery in the city.

"At the time, the metro was beset by service delivery failures, deteriorating infrastructure and sliding business and investor confidence," Ramaphosa said.

"Two years later, the interventions undertaken to tackle poor service delivery and failing infrastructure are driving an effective sustained recovery in the metro."

The working group brings together leaders from government, business and civil society to coordinate interventions aimed at improving municipal performance.

Business Confidence and Tourism Rebound

The President noted that the city is already seeing signs of economic recovery, with improvements in investor sentiment and tourism activity.

The Durban Business Confidence Index has reached its highest level since its inception, while confidence in the manufacturing sector increased by nearly 16% quarter-on-quarter.

Tourism has also rebounded strongly, with more than 1.2 million visitors travelling to eThekwini during the recent festive season, reflecting renewed interest in the coastal city, which is home to one of South Africa's largest ports and a significant industrial base.

Meanwhile, several infrastructure projects are underway, and improvements are being reported in safety and security coordination across the metro.

Stabilisation Not Yet a Full Turnaround

Despite the progress, Ramaphosa cautioned that the city's recovery remains a work in progress.

"While stabilisation is not the same as a complete turnaround and the metro still faces significant challenges, the experience of eThekwini offers a viable model for coordination and partnership that can be replicated in other metros and municipalities to enable them to recover," he said.

District Development Model Guiding Collaboration

The working group approach is aligned with the District Development Model (DDM), a government strategy designed to improve service delivery through closer cooperation between national, provincial and local governments.

The model also promotes partnerships with private sector organisations and civil society to accelerate municipal recovery efforts.

In support of this approach, the eThekwini municipality last year approved a Partnerships Framework aimed at strengthening public-private cooperation, particularly for infrastructure and catalytic development projects.

Johannesburg Working Group Launched

Drawing on lessons from eThekwini, government has also established the Presidential Johannesburg Working Group to address governance, infrastructure and service delivery challenges in South Africa's economic hub.

The initiative aims to tackle issues related to urban renewal, safety, infrastructure maintenance and economic growth.

Municipal Financial Distress Remains a Major Concern

Despite these initiatives, Ramaphosa acknowledged that financial instability remains one of the most serious challenges facing municipalities across the country.

He noted that around two-thirds of South Africa's municipalities are currently in financial distress, largely due to weak revenue collection systems and mounting debt.

"Without stronger revenue management and financial discipline, service delivery challenges will persist and backlogs will only worsen," the President said.

He added that revenues generated through municipal services should be reinvested into maintaining and upgrading infrastructure, but are often diverted to cover operational costs.

R27.7 Billion Allocated for Municipal Reforms

To address these challenges, government has allocated R27.7 billion over the next three years to support reforms in key municipal services, including:

• Water and sanitation

• Electricity supply

• Waste management

These reforms form part of a broader effort to improve municipal performance and ensure sustainable service delivery.

Local Government Reforms Under Review

Government is also reviewing the White Paper on Local Government, a policy framework that could lead to significant reforms.

Proposed changes may include:

• Adjustments to municipal powers and responsibilities

• Improved appointment processes for senior municipal officials

• Stronger cooperation with traditional leadership structures

Ramaphosa said these reforms are part of a broader programme aimed at improving economic efficiency and competitiveness, alongside reforms in the energy, water, telecommunications and logistics sectors.

Call for Collaboration Ahead of Local Elections

With local government elections approaching, the President urged all stakeholders to focus on strengthening municipalities rather than political campaigning.

"When local government fails, the impact is felt by communities, businesses and households," Ramaphosa said.

"When local government works well, villages, towns and cities become engines of opportunity and growth."

He called on government, business and communities to work together to restore the promise of local government and improve the quality of life for all citizens.