eThekwini Unveils R74.7 Billion Budget as Mayor Urges Residents to Pay for Services to Sustain Infrastructure

eThekwini Municipality has unveiled a proposed R74.7 billion Budget and Integrated Development Plan (IDP) for 2026/27, with Mayor Cyril Xaba warning that non-payment for municipal services threatens the city’s ability to maintain critical infrastructure and expand essential services to growing communities.

Presenting the proposed budget during a large public engagement at King Zwelithini Stadium in Umlazi on Monday, Xaba appealed to residents to honour municipal accounts or engage the municipality to make payment arrangements if facing financial hardship.

The budget presentation comes as municipalities across South Africa continue grappling with financial pressures, infrastructure backlogs and rising service delivery demands.

Mayor Warns Service Sustainability Depends on Revenue Collection

Addressing thousands of residents, Xaba stressed that the municipality depends heavily on revenue from service payments to sustain operations and maintain infrastructure networks.

He explained that the municipality purchases water and electricity from external suppliers before distributing them to residents.

“As the municipality, we do not produce water ourselves. We purchase it from uMngeni-uThukela Water at a cost of R250 million every month and distribute it to residents,” the mayor said.

Similarly, the municipality buys electricity in bulk from Eskom before supplying it to communities across Durban and surrounding areas.

“If residents do not honour their accounts, we risk being unable to maintain existing infrastructure and expand services to new developments,” Xaba warned.

Municipalities Facing Growing Financial and Infrastructure Pressures

South African municipalities have increasingly faced financial strain due to:

• Rising bulk service costs

• Infrastructure deterioration

• Electricity debt challenges

• Water losses

• Non-payment by consumers

• Expanding urban populations

eThekwini, one of the country’s largest metropolitan municipalities, has also faced major service delivery pressures in recent years linked to:

• Flood damage

• Sewer system failures

• Water supply disruptions

• Electricity infrastructure challenges

• Urban expansion demands

Officials say stable municipal revenue collection remains essential for long-term infrastructure sustainability.

Expanded Relief Measures for Vulnerable Households

The proposed budget also includes a range of social relief measures aimed at protecting financially vulnerable residents from rising municipal costs.

Full Rates Exemption for Lower-Valued Properties

According to the mayor:

• Residential properties valued up to R350 000 will be fully exempt from paying rates.

Additional Relief for Low-Income Households

Further relief will be available — upon application — to owners of properties valued between:

• R350 000 and R750 000

provided total household income does not exceed:

• R7 000 per month

Pensioners and Vulnerable Groups to Receive Additional Support

The municipality also announced targeted support measures for:

• Pensioners

• Child-headed households

• Disability grant recipients

• Medically boarded property owners

These groups may qualify for rates exemptions where annual rates do not exceed:

• R5 290

The municipality said the measures are intended to reduce the financial burden on vulnerable residents while ensuring continued access to essential services.

Free Water and Refuse Removal Support Expanded

As part of the municipality’s social support package:

• Qualifying households will receive the first six kilolitres of water free

• Properties valued below R350 000 will also be exempt from domestic refuse removal tariffs

Municipal officials say the relief measures are designed to balance social protection with financial sustainability.

Major Infrastructure and Community Projects Announced

The proposed 2026/27 budget includes several infrastructure and service delivery projects targeted at Umlazi communities.

Key Allocations Include:

Ward 78

• R3.7 million for housing and hostel construction

Ward 80

• R23 million for replacement of a waste management compaction unit

Ward 81

• R3.2 million for housing development

Ward 82

• R4.3 million for refurbishment of the Umlazi Fire Station

• R15.2 million for traffic safety improvements and Griffiths Mxenge Highway intersection upgrade

Ward 83

• R3.5 million for construction of a pedestrian bridge

• R24 million for housing and hostel development

Ward 84

• R4.5 million for construction of the Umlazi Community Hall

Ward 86

• R14 million for sanitation infrastructure repairs in Y-Section

Officials say these projects are intended to improve public safety, housing access and municipal service delivery across the area.

Municipality Prioritising Water, Roads and Sanitation Upgrades

Xaba said the municipality would continue intensifying efforts to address long-standing service delivery challenges related to:

• Electricity infrastructure

• Road maintenance

• Housing shortages

• Water supply systems

• Sewer and sanitation networks

Particular emphasis is being placed on resolving sewer infrastructure failures that have affected several communities.

The mayor said a coordinated municipal strategy is being implemented to tackle sewer system problems across all wards.

Public Participation Encouraged on Draft Budget and IDP

Residents have been invited to review the draft budget and Integrated Development Plan through the municipality’s website and submit public comments.

Municipal officials said community participation remains important in shaping final budget priorities and ensuring accountability in local governance.

The municipality has encouraged residents to provide feedback via:

• Email submissions

• Public consultation processes

• Community engagement sessions

Infrastructure Investment Seen as Critical for Economic Stability

Economic analysts say municipalities such as eThekwini play a critical role in supporting:

• Urban economic activity

• Public health

• Housing development

• Transport systems

• Local business operations

Durban remains one of South Africa’s most important economic and logistics centres due to:

• Its major port infrastructure

• Industrial base

• Tourism economy

• Manufacturing sector

Stable municipal infrastructure is therefore considered essential for broader economic performance.

Balancing Financial Sustainability with Social Protection

The proposed budget reflects the growing challenge faced by municipalities nationwide in balancing:

• Revenue generation

• Infrastructure maintenance

• Social support programmes

• Expanding service delivery demands

While local governments are under pressure to improve collection rates and financial sustainability, they are simultaneously expected to protect low-income households from economic hardship.

eThekwini’s Budget Central to Long-Term Urban Recovery

The municipality’s infrastructure investment plans also come as Durban continues recovering from:

• Severe flooding events

• Infrastructure damage

• Climate-related disruptions

• Economic pressures

Urban planners say sustained investment in:

• Water systems

• Sewer infrastructure

• Roads

• Housing

• Community facilities

will be essential for improving resilience and restoring confidence in municipal service delivery.

As public consultations on the proposed budget continue, the municipality faces the ongoing challenge of delivering visible infrastructure improvements while stabilising its financial position in an increasingly demanding economic environment.