eThekwini Invests R10 Billion in Municipal Infrastructure Reconstruction

eThekwini Municipality has set aside around R10 billion to rehabilitate its infrastructure for water, electricity, and solid waste management, all in an effort to improve service delivery and promote long-term sustainability.

This initiative comes after Finance Minister Enoch Godongwana announced a R3.33 billion grant aimed at assisting the municipality’s trading services reforms over the span of the next three years. The performance-based grant seeks to enhance vital infrastructure and ensure the self-reliance of essential services.

The initial phase of these reforms will concentrate on water and electricity services for the 2025/26 fiscal year. To support this transition, eThekwini has formulated a Water and Sanitation Turnaround Strategy (TAS) along with a Business and Investment Plan and an Institutional and Governance Reform Roadmap.

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These strategies are founded on six key pillars, which encompass the financial ringfencing of the Water and Sanitation Business Unit, enhanced governance, and the introduction of a performance-based management contract.

In pursuing the implementation of this strategy, the city intends to boost investments in both capital and operational programs to stabilize water and sanitation services while improving financial sustainability. To date, 22% of the goals outlined in the turnaround strategy have been realized.

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With the new funding, priority will be given to minimizing water losses, upgrading customer service systems, improving water metering, and tackling intermittent supply issues. The municipality is also focused on eliminating inefficiencies within its operations.

The R3.33 billion incentive grant is anticipated to expedite these reforms and draw in additional investment. The city has indicated that, through the mayor’s office, it will maintain communication with stakeholders to ensure the success of the initiative. eThekwini Municipality has embraced the funding allocation and confirmed its integration into the budget, which is expected to be approved in May 2025.

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