eThekwini Earns Stable Credit Outlook After Financial Improvements

Mayor Cyril Xaba welcomed the decision, describing it as independent recognition of the municipality's efforts to improve financial management and expand investment in critical infrastructure.

The eThekwini Municipality has received a major vote of confidence after Global Credit Ratings (GCR) upgraded the city's credit outlook from negative to stable while reaffirming its AA-(ZA) long-term investment-grade credit rating.

The improved outlook reflects growing confidence in the municipality's financial health, infrastructure investment and fiscal management. It also signals greater assurance for investors, lenders and businesses that the city is strengthening its ability to deliver services and support long-term economic growth despite ongoing economic pressures.

Financial discipline drives improved outlook

Mayor Cyril Xaba welcomed the decision, describing it as independent recognition of the municipality's efforts to improve financial management and expand investment in critical infrastructure.

He said the revised outlook reflects progress made through the city's financial strategy, prudent borrowing practices, stable revenue collection and continued access to funding in a difficult operating environment. Xaba added that these measures have helped reinforce the municipality's financial stability while supporting ongoing infrastructure projects.

The mayor also acknowledged the contributions of City Manager Musa Mbhele, Chief Financial Officer Dr Sandile Mnguni, the Finance Cluster and other municipal departments for their role in strengthening the city's financial position and improving investor confidence.

Challenges remain despite positive progress

While recognising the municipality's progress, GCR identified several areas where further improvements are needed. These include reducing water losses, strengthening debt collection, improving environmental sustainability, and enhancing governance and internal control systems.

The municipality said these priorities are already part of its long-term strategy to improve financial sustainability and modernise essential infrastructure.

Confidence grows among investors and businesses

According to the municipality, the revised stable outlook provides stronger confidence to investors, financial institutions, residents and businesses that eThekwini is on a path toward greater financial resilience.

Officials believe the improved rating will support continued investment in infrastructure, strengthen service delivery and help create conditions for sustainable economic growth across the metropolitan area.