eThekwini Adopts R75.3 Billion Budget on Infrastructure Renewal and Service Delivery

The budget reflects the municipality’s commitment to balancing financial sustainability with the growing needs of residents and businesses amid ongoing economic challenges.

The eThekwini Council has officially approved the Municipality's 2026/2027 Medium-Term Revenue and Expenditure Framework (MTREF), adopting a R75.3 billion budget aimed at strengthening service delivery, modernising infrastructure and advancing key turnaround strategies for the city's trading services. The budget reflects the municipality's commitment to balancing financial sustainability with the growing needs of residents and businesses amid ongoing economic challenges.

The approved financial plan consists of an operating budget of approximately R69 billion and a capital budget of R6.3 billion. Municipal leaders describe the budget as a realistic and fully funded roadmap designed to address infrastructure backlogs, improve service reliability and support long-term economic growth.

Speaking during the council meeting where the budget was adopted, eThekwini Mayor Cyril Xaba emphasized that the financial plan is grounded in practical realities rather than aspirations. According to the Mayor, the budget has been assessed by South Africa's National Treasury and found to be credible, sustainable and appropriately funded. He noted that it prioritises infrastructure repairs, upgrades to critical bulk services and the implementation of turnaround strategies for the municipality's key trading entities.

The budget also incorporates feedback received through an extensive public participation process and introduces revised tariff increases and expanded social support measures intended to ease the burden on residents while ensuring the city remains financially viable.

Public Participation Shapes the Final Budget Framework

One of the defining features of the 2026/2027 budget process was the extensive public consultation programme undertaken by the municipality. Following the tabling of the draft budget in March 2026, the city embarked on a broad engagement process designed to gather input from communities, businesses and civil society organizations.

Between 13 April and 11 May 2026, the municipality hosted 12 public budget hearings across the city. These engagements included dedicated sessions with business groups, disability organisations and ratepayer associations, as well as regional hearings that covered all municipal wards. The objective was to ensure that residents had meaningful opportunities to influence spending priorities and raise concerns about service delivery and affordability.

According to Mayor Xaba, participation levels were encouraging, with many residents taking advantage of the opportunity to share their experiences and expectations. The municipality widely advertised the consultation process through radio broadcasts, print publications and social media platforms, encouraging both attendance at public meetings and the submission of written comments.

Many of the issues raised during the consultations reflected the everyday challenges faced by residents, including rising living costs, infrastructure maintenance concerns and the affordability of municipal services. City officials reviewed these submissions and incorporated several recommendations into the final budget.

The Mayor acknowledged that while many requests were accommodated, financial constraints meant that not every proposal could be implemented. As a result, the final budget seeks to balance competing priorities, including service delivery improvements, infrastructure renewal, job creation, affordability and long-term financial sustainability.

This consultative approach reflects the municipality's effort to build trust with residents and ensure that public resources are allocated in a manner that responds to community needs while maintaining fiscal discipline.

Revised Tariffs Aim to Provide Relief to Residents and Businesses

A major outcome of the consultation process was the revision of several proposed tariff increases. Following discussions with stakeholders and engagements with national government, the municipality reduced a number of planned increases for municipal services and property rates. These adjustments were designed to provide relief to households and businesses facing economic pressures.

Among the most significant changes was the reduction in the proposed domestic water tariff increase from 15% to 12%. Business water tariffs were similarly lowered from a planned 16% increase to 13%. These adjustments aim to reduce the financial impact on both residential consumers and commercial users who rely heavily on water services.

The increase for domestic sanitation services was lowered from 13% to 8%, while business sanitation tariffs were reduced from 14% to 9%. These revisions reflect the city's recognition of affordability concerns raised during public consultations.

Property owners also benefited from revised proposals. The average property rates increase was reduced significantly from 5% to 2%, providing relief to homeowners and businesses alike. Similarly, refuse removal tariffs were reduced from a proposed 13% increase to 9.5%, while electricity tariff increases were lowered from 10.5% to 9%.

Mayor Xaba stated that the municipality hopes these adjustments will ease some of the financial burden faced by residents and businesses while still ensuring sufficient revenue to maintain and improve essential services. The revised tariffs illustrate the municipality's attempt to balance affordability with the need to fund critical infrastructure and service delivery programmes.

In addition to tariff relief, council approved amendments to the city's Indigent Support Policy. The threshold for property rates exemptions for indigent households was increased from R350,000 to R400,000, allowing more low-income households to qualify for assistance. Pensioner rebate qualification thresholds were also raised from R2.5 million to R2.75 million, extending support to a larger number of elderly residents.

Infrastructure Renewal and Service Delivery Remain Top Priorities

The adopted budget places considerable emphasis on upgrading ageing infrastructure and improving the reliability of essential services. Municipal leaders have identified infrastructure renewal as one of the most important investments needed to support long-term growth and improve the quality of life across eThekwini.

Funding priorities include improvements to water supply systems, sanitation infrastructure and energy services. These investments are intended to address maintenance backlogs, reduce service disruptions and improve the efficiency of municipal operations. Reliable infrastructure is viewed as essential for supporting economic activity, attracting investment and meeting the needs of growing communities.

The budget also supports spatial transformation initiatives aimed at creating a more inclusive and equitable city. Through strategic infrastructure investments and improved service delivery, the municipality seeks to address historical inequalities while promoting sustainable urban development.

According to Mayor Xaba, the primary objective of the budget is to ensure efficient and effective service delivery that improves residents' quality of life. By focusing on infrastructure rehabilitation and service reliability, the municipality aims to create conditions that support both social development and economic growth.

The operating budget will be funded primarily through service charges, property rates, grants and levies. Major expenditure categories include bulk purchases, employee-related costs, contracted services and operational expenses. These allocations are intended to ensure that essential municipal functions continue to operate effectively while supporting infrastructure improvements and development programmes.

Progress in Housing, Roads and Basic Services Highlights Municipal Achievements

During his address, Mayor Xaba highlighted several achievements made by the municipality over the past five years, pointing to measurable progress in service delivery and infrastructure development. These accomplishments were presented as evidence that strategic investments can generate tangible improvements in residents' lives.

One of the most notable achievements has been the expansion of access to electricity. The municipality reported the installation of more than 21,000 new electricity connections, primarily in previously underserved communities. As a result, electricity coverage within the city has reached almost 100%, significantly improving access to essential services for thousands of households.

Housing delivery has also been a major focus area. Over the past five years, the city has constructed 7,910 housing units and issued approximately 3,200 title deeds. These initiatives have provided secure housing and legal ownership rights to families who previously lacked adequate shelter and tenure security.

Road infrastructure improvements have similarly contributed to enhanced mobility and connectivity. The municipality successfully rehabilitated more than 500 kilometres of roads, helping improve transportation networks and support economic activity across the city.

In addition to infrastructure development, the municipality has prioritised governance reforms and operational efficiency. Measures have been introduced to reduce overtime abuse, improve response times and strengthen internal controls. The city is also increasingly embracing digitalisation and artificial intelligence to enhance service delivery, improve productivity and ensure better value for money.

The adoption of the 2026/2027 MTREF marks an important milestone for eThekwini as it seeks to modernise infrastructure, strengthen service delivery and maintain financial sustainability. Through targeted investments, revised tariffs, expanded social support and improved governance, the municipality aims to create a more resilient and inclusive city capable of meeting the needs of its residents while supporting long-term economic development.