THE financial position of the Municipality continues to be stable and sound. This is despite the difficult economic climate
with rising inflation, interest rates, food and fuel prices, as well as a weak exchange rate. This is underpinned by strong liquidity with R8.3 billion or 65-days cash on hand. After unspent grants, there is 58 days cash on hand. This is due to the excellent cash collections for the financial year which ended in June. It also shows that the revenue strategies that are being employed are effective. 

We continue to use most of our capital budget on the upgrading of infrastructure for some of the key projects relating to catalytic projects, engineering services, transport, housing, electricity, and water and sanitation. This week we embarked on an oversight visit to some of the City’s catalytic projects in three regions namely Durban Central, outer west, and north central. We were satisfied with the work that is taking place on the ground. One of the catalytic projects which is nearing completion is the Westown Shongweni Development which is a mixed-use development. In total, the City, in collaboration with the private sector, is implementing 16 catalytic projects with an investment value of R217 billion.

Once completed, these projects will create over 300 000 sustainable jobs. During these visits, we also had the opportunity to engage with developers who have made it clear that they are committed to continuing to expand their investment in the City. Our obligation is to make this investment possible by removing the “red tape” around development. When cranes are swinging and yellow plants are moving, people’s hope is revived. We are happy that Durban has become a construction site, abuzz with development as this clearly shows that we are open for business. 

We are firmly focused on addressing water and sanitation issues that investors and residents have raised concerns about. Over and above the upgrading of infrastructure, we are also addressing the challenge of non-revenue water which forms part of the Water and Sanitation Turnaround Strategy that we are currently implementing. National Treasury has commended the City for being the first metro in the country to develop a Water And Sanitation Strategy. We will also be
embarking on a major project with Umgeni-uThukela Water to curb water losses. 

We are also concerned that the electricity loss in distribution is above the benchmark of seven to 10 percent as it is currently sitting at 10.90 percent. The Municipality is attending to this challenge as a matter of urgency and action plans are being implemented. Working as a collective in the executive and Council, we will strengthen our oversight mechanisms to monitor the implementing of all projects that the City is implementing to accelerate service delivery.