Durban – The proposed tariff increases presented by mayor Mxolisi Kaunda on eThekwini’s draft budget will have a detrimental effect on businesses, the business community has warned.
The business community said that the confidence of several investors and business owners in the city is already jittery.
The president of the Durban Chamber of Commerce and Industry, NPC, Prasheen Maharaj said as organised business they welcome the opportunity to comment on eThekwini metro’s draft budget of R66 billion for the 2023/2024 financial year.
Last week, eThekwini Metro engaged the business community on its proposed tariff increases for the 2023-2024 financial year.
“We are appealing to the metro and its elected representatives to be mindful of its proposals, as the City needs to bolster business and investor confidence,” Maharaj said in a statement.
He said the tariff increases remain substantially ahead of the Consumer Price Index, which will negatively impact the competitiveness of Durban as a business location. The retention of businesses within Durban is a priority, and “tariff increases should not be punitive”.
Maharaj said the metro should be mindful of its role to provide an environment that is conducive for conducting business, and ensuring that basic service needs are met.
“However, we are faced with constant challenges of poor service delivery – from the basic needs of water and sanitation infrastructure, crime and grime, and energy crisis,” he said.
The Covid-19 pandemic, 2021 July unrest, April floods, and load shedding have derailed many businesses, Maharaj said.
“The possibilities of businesses shutting down remain high. Furthermore, businesses are experiencing frequent disruptions to basic services such as water and electricity. As organised businesses, we object to these excessive tariff increases,” he said.
Maharaj said following the April, 2022 floods, “as organised business, we are deeply concerned about the slow pace at which infrastructure is being restored. To date we have not received a detailed infrastructure investment plan from the City outlining the technical and risk mitigation measures”.
“As organised business we acknowledge the City’s commitment of R5 billion over the next three years towards water and sanitation. We believe the City needs to engage with the private sector to determine a detailed cost analysis. Allocating resources without a detailed water and sanitation infrastructure audit, simply leaves us in the same position. The crisis is bigger than we think… With dire economic consequences,” he warned.