The eThekwini Municipality has announced a massive R10 billion investment to rebuild its failing water, electricity, and waste management infrastructure.
This investment aims to address years of service delivery failures and catastrophic storm damage, with a comprehensive reform plan in place.
The City’s infrastructure woes have been worsening, with ageing water pipes bursting leading to water losses and power outages becoming more frequent. The situation was exacerbated by severe flooding, which has left parts of the city in disrepair.
The municipality said in his Budget speech last week Finance Minister Enoch Godongwana’s announced that a R3.33 billion performance grant had been allocated to support eThekwini’s trading services over the next three years.
The City says this money will be used to reform water, sanitation, electricity, and waste management systems so they can operate more efficiently and become financially self-sufficient.
According to the municipality, the reforms will prioritise water and electricity services in the 2025/26 financial year.
“With respect to eThekwini Water and Sanitation (EWS) Unit, the city has adopted a Water and Sanitation Turnaround Strategy (TAS) and further developed the Business and Investment Plan and an Institutional and Governance Reform Roadmap,” the municipality stated.
These plans will transform the EWS unit into a ring-fenced commercial business entity, ensuring better management and accountability.
The strategy is built on six pillars:
- Creating a single point of accountability to improve service delivery.
- Strengthening management and technical leadership.
- Enhancing governance structures to ensure efficiency.
- Financially ring-fencing the Water and Sanitation Business Unit for sustainability.
- Improving budget execution and attracting long-term private investment.
- Implementing a performance-based management contract to drive accountability.
The City says 22% of the turnaround goals have already been achieved.
“As the City aligns its budget priorities, the additional funds will be directed to reducing water losses, improving customer call centre systems, enhancing water metering, and addressing intermittent water supply issues while reducing inefficiencies,” the municipality said.
The R3.33 billion incentive grant is also expected to help accelerate reforms and attract much-needed investment to trading services.