City Fulfils Requirements To Receive Trading Services Grant Funding
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Date: 2025-05-30 11:03:25

City Fulfils Requirements To Receive Trading Services Grant Funding

ETHEKWINI NEWSFLASH  
FOR IMMEDIATE RELEASE  
29 MAY 2025  
 
FULL COUNCIL DECISIONS
 
The City is a step closer to qualifying for the first allocation of a performance-based incentive grant from the National Treasury, as part of the Trading Reforms Programme.
 
Full Council today, 29 May 2025, granted authority for the City to fulfil the eight minimum commitments defined in the National Treasury Metro Trading Services Programme to secure grant funding.
 
EThekwini Municipality requires grant support to enhance service delivery in the Electricity and Water and Sanitation Units.
 
A requirement to qualify for the incentive grant component was that metro municipalities must submit a Council-approved turnaround strategy, a roadmap on institutional reforms for improved management and governance, and a business and investment plan. EThekwini has completed all these requirements with the adoption of eight minimum commitments. This could see the City’s Trading Services receive funding of R54 billion over a six-year period.
 
As part of the Trading Reforms Programme, trading services will become ring-fenced units with a single point of accountability.
 
R784.8 MILLION PROCUREMENT FOR WATER AND SANITATION FLEET
 
The City’s Water and Sanitation Unit will procure additional water tankers, backfill trucks, TLBs, LDVs, and excavators to enhance its fleet, following approval by Council. This investment addresses ageing infrastructure and rising water demand and service disruptions, particularly in flood-affected and informal areas.  Reducing reliance on hired vehicles will also lower long-term operational costs.
 
CITY TO HOST METRO FM MUSIC AWARDS FOR THREE YEARS
 
To stimulate economic growth, support local businesses, and position the City as a leading destination for world-class events, Council granted approval for the Municipality to enter into an agreement to be the host city of the popular Metro FM Music Awards.
The City was granted authority to enter into a three-year partnership with Metro FM for the 2025/26, 2026/27 and 2027/2028 financial years, with an investment of R25 million over the next three financial years. This partnership positions Durban as a leading events destination, boosts tourism, creates jobs and enhances the City’s brand visibility, both nationally and internationally.
 
GREENLIGHT TO HOST THE 2025 RESURGENCE GLOBAL CONFERENCE  
 
Approval has been granted by Council for the City to host the international 2025 ReSURGEnce Global Conference, which focuses on socio-economic development and Afro-diaspora trade partnerships.  The conference offers Durban a platform to showcase investment opportunities and strengthen global business relations.
The inaugural Durban edition of the ReSURGEnce Conference was successfully held from 17 to 21 July 2024 at the Inkosi Albert Luthuli International Convention Centre.  It attracted over 8 500 delegates, generated a direct economic impact of R82.2 million, and contributed more than R121 million to the City’s GDP. The programme included a two-day conference and exhibition, a Mayoral Reception, Mandela Day outreach events, and a Gospel concert.
 
The 2025 edition is expected to host between 8 000 to 10 000 delegates, including delegations from the United States of America, Ghana, Nigeria, Kenya, Ethiopia, the United Kingdom, and the Caribbean. The ReSURGEnce Conference 2025 will reinforce Durban’s position as an inclusive, globally-competitive destination for investment, business tourism and youth empowerment - aligned with the Municipality’s strategic development goals.
 
PROPOSED ACQUISITION OF BUILDINGS IN THE DURBAN CBD  
 
EThekwini Municipality is in the process of acquiring two office buildings, namely Durban Chambers and 6 Durban Club Place.
The buildings are strategically located near the Durban City Hall and could possibly serve to replace some of the existing office leased accommodation at Shell House and Embassy Building.
 
Council today, 29 May 2025 granted authority for the City’s Real Estate Unit to enter into negotiations with the business rescue practitioner and bondholders of Urban Lime Property SA (Pty) Ltd for the acquisition of the identified buildings, up to a ceiling amount not exceeding R120 million, excluding VAT, with the intention of aligning the final purchase price as close as possible to the outstanding bond liabilities.  
 
The Urban Lime Property SA (PTY) Ltd, a major property development company, is currently undergoing a business rescue process and has accumulated substantial Municipal debt.
 
The negotiations for acquisition will prioritise the offsetting of Municipal debts and leverage
the distressed sale conditions, including technical and compliance-related concerns, to secure a reduced acquisition price.
 
ENDS