infrastructure The eThekwini Municipality has earmarked R10 billion for the reconstruction of critical infrastructure, including water, electricity, and solid waste management systems.
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The eThekwini Municipality has earmarked R10 billion for the reconstruction of critical infrastructure, including water, electricity, and solid waste management systems.
The investment follows Finance Minister Enoch Godongwana’s announcement of a R3.33 billion grant allocation to eThekwini over the next three years. This performance-based grant is specifically designated for upgrades to water and sanitation, electricity, and solid waste management, with the objective of making these essential services self-sufficient.
The municipality’s reforms for trading services will commence in the 2025/26 financial year, with the first phase focusing on water and electricity. To drive this transformation, the City has developed a comprehensive Water and Sanitation Turnaround Strategy (TAS), along with a Business and Investment Plan and an Institutional and Governance Reform Roadmap.
Minister Godongwana, in his recent budget speech, outlined the importance of these reforms, that are guided by six strategic pillars designed to reconfigure eThekwini Water and Sanitation (EWS) into a ring-fenced commercial business unit. These are: Establishing a single point of accountability, acquiring technical, managerial, and leadership capabilities for transformation, enhancing governance structures, financially ring-fencing the Water and Sanitation Business Unit, improving budget execution rates and attracting private and international financing, and strengthening management capacity through performance-based contracts.
As part of the turnaround strategy, the City aims to accelerate investment in priority capital and operational projects that will drive financial recovery and service stability. The initiative, already in progress, has achieved 22% of its outlined goals.
The additional funding will be directed toward critical areas, including reducing water losses, improving customer call centre systems, enhancing water metering, and addressing intermittent water supply. Operational efficiencies will also be strengthened to ensure better service delivery.
The Mayor’s Office will continue to engage stakeholders to monitor the progress of the turnaround strategy and ensure that the desired performance outcomes are met. The R3.33 billion incentive grant will enable the municipality to optimize existing resources and attract further investment, reinforcing its business and investment plans for the next five years.