South africa: The eThekwini Council has officially adopted the Municipality's 2026/2027 Medium-Term Revenue and Expenditure Framework (MTREF), approving a R75.3 billion budget aimed at accelerating service delivery, renewing infrastructure, and advancing turnaround strategies for the city's trading services.
According to South African Government News Agency, the adopted budget comprises an operating budget of approximately R69 billion and a capital budget of R6.3 billion. The budget was developed within an overall planning framework aligned to the city's strategic objectives, with a strong focus on sustainable service delivery and long-term financial stability.
Addressing Council during the adoption of the budget, eThekwini Mayor Cyril Xaba stated that the budget represents a practical and sustainable financial plan for the city. The 2026/2027 budget is described as a funded, credible, and sustainable plan, assessed as such by National Treasury. It prioritizes the acceleration of repairs, the upgrading of bulk infrastructure, and the full implementation of trading services turnaround strategies.
The budget followed an extensive public participation process after the draft budget was tabled in March 2026. Between 13 April and 11 May 2026, the city hosted 12 public budget hearings, including dedicated engagements with business stakeholders, disability organizations, and ratepayer associations, as well as regional hearings covering all municipal wards. The hearings were well attended, reflecting the real challenges faced by communities. The process was widely advertised through various media, inviting public participation and written submissions.
Numerous public inputs were incorporated into the final budget to provide relief to residents amid ongoing economic pressures. Meaningful adjustments were made to the draft budget, balancing service delivery, infrastructure renewal, job creation, affordability, and financial sustainability. Following engagements with stakeholders and national government, Council approved revised tariff increases for the 2026/2027 financial year, including reductions to the proposed increases for water, sanitation, electricity, refuse removal, and property rates.
Revised tariff adjustments include a reduction of the domestic water tariff increase from 15% to 12% and the business water tariff increase from 16% to 13%. The domestic sanitation tariff increase was reduced from 13% to 8%, and the business sanitation tariff increase from 14% to 9%. The average property rates increase was reduced from 5% to 2%, and the refuse tariff increase from 13% to 9.5%. The electricity tariff increase was reduced from 10.5% to 9%. The revised tariffs aim to provide relief to residents and businesses.
Council also approved amendments to the City's Indigent Support Policy to ensure more targeted assistance for vulnerable households. The threshold for exemption from property rates for indigent households has been increased from R350,000 to R400,000, while pensioner rebate qualification thresholds have been raised from R2.5 million to R2.75 million.
The main sources of funding for the operating budget are service charges, property rates, and grants and levies. Key areas of expenditure include bulk purchases, employee-related costs, contracted services, and operational expenditure. The adopted budget places significant emphasis on upgrading aging infrastructure, improving the reliability of water, sanitation, and energy services, and driving spatial transformation initiatives across the city.
The Mayor highlighted the significant progress made over the past five years, including improved access to basic services and major infrastructure delivery. Over 21,000 new electricity connections have been made, mostly in previously underserved areas, bringing electricity coverage to almost 100%. The construction of 7,910 housing units and the issuance of 3,200 title deeds have restored dignity and provided security of tenure to families.
An emphasis has also been placed on good governance and internal controls to drive productivity and value for money. This includes interventions to reduce overtime abuse, improve response times, and the use of artificial intelligence and digitalization to improve efficiency and effectiveness.