eThekwini Pushes Major PPP Reform to Boost Service Delivery and Investment

PeWG co-chairperson Michael Mabuyakhulu stressed that the success of the initiative will depend on real-world outcomes rather than institutional commitments.

Durban, April 2026 — In a decisive move to revitalise service delivery and unlock economic growth, the Presidential eThekwini Working Group (PeWG) has advanced a new public-private partnership (PPP) policy framework aimed at transforming how government and business collaborate in South Africa’s key economic hub.

The high-level workshop, held at the Inkosi Albert Luthuli International Convention Centre, brought together senior officials from the eThekwini Municipality, representatives from the Presidency, multiple tiers of government, and leading business stakeholders to accelerate the rollout of the Development and Service Delivery Partnering Policy Framework.

From Policy to Action: A Shift in Approach

At the centre of discussions was the urgent need to move beyond policy formulation to tangible implementation. PeWG co-chairperson Michael Mabuyakhulu stressed that the success of the initiative will depend on real-world outcomes rather than institutional commitments.

“These discussions are about moving from policy to action,” he said, calling for the establishment of an independent PPP office to act as a central coordinating body and drive execution.

Key priorities include finalising:

• Standard operating procedures

• A comprehensive implementation plan

• A multi-stakeholder steering committee

These elements are seen as critical to ensuring legal clarity, institutional alignment, and accountability across all partnership projects.

Addressing Structural Barriers to Collaboration

Acting eThekwini City Manager Sipho Cele highlighted that the new framework is designed to resolve long-standing bottlenecks that have hindered effective collaboration between the public and private sectors.

Among the key challenges identified:

• Fragmented and inconsistent partnership models

• Regulatory uncertainty

• Lack of standardised processes

The proposed framework introduces a single, transparent, and standardised system for identifying, evaluating, approving, and managing partnerships—ensuring compliance with legal requirements while safeguarding public finances.

“This approach ensures value for money for residents and strengthens financial sustainability,” Cele noted.

Business Signals Strong Support

The private sector has responded positively to the initiative, signalling readiness to invest and collaborate in addressing critical infrastructure gaps.

Palesa Phili, CEO of the Durban Chamber of Commerce and Industry, said business is eager to partner with the municipality, particularly in sectors such as:

• Infrastructure development

• Water and sanitation services

• Energy and utilities

“This partnership will unlock investment and accelerate service delivery in the region,” she said, urging swift finalisation and implementation of the framework.

A Strategic Lever for Economic Growth

eThekwini, which includes the port city of Durban, is one of South Africa’s most important economic centres. However, it has faced persistent service delivery challenges in recent years, particularly in water, electricity, and infrastructure maintenance.

The PPP framework is expected to:

• Mobilise private capital for public infrastructure

• Improve efficiency and service delivery outcomes

• Reduce pressure on municipal finances

• Create jobs and stimulate local economic activity

Building a Model for National Replication

The initiative is also being closely watched as a potential model for other municipalities across South Africa, where similar challenges exist.

By creating a structured, transparent, and accountable PPP ecosystem, the eThekwini framework could set a new benchmark for public-private collaboration in urban governance.

A Test of Execution

While the framework represents a significant policy breakthrough, stakeholders acknowledged that its success will ultimately depend on implementation discipline and sustained collaboration.

“The success of this framework will be measured not by its existence, but by the impact it delivers,” Mabuyakhulu emphasised.

As eThekwini moves toward operationalising the policy, the coming months will be critical in determining whether this ambitious partnership model can deliver the infrastructure upgrades, service improvements, and economic momentum that the city urgently needs.