Date: 2025-07-11 15:44:11
Economic Development and Planning committee drives sustainable growth agenda in eThekwini
ETHEKWINI NEWSFLASH
FOR IMMEDIATE RELEASE
11 JULY 2025
ECONOMIC DEVELOPMENT AND PLANNING COMMITTEE DRIVES SUSTAINABLE GROWTH AGENDA IN ETHEKWINI
The Municipality’s Economic Development and Planning Committee convened on 10 July where several key developmental reports were tabled and supported, pending final approval by the Executive Committee and Full Council.
These initiatives are aligned with the City's long-term vision to stimulate investment, create employment, and enhance infrastructure across the Municipality.
*DURBAN TOURISM TO CONDUCT FEASIBILITY STUDY ON PROPOSED TOURISM LEVY*
The Economic Development and Planning Committee has recommended that Durban Tourism initiate a comprehensive feasibility study on the potential introduction of a tourism levy in eThekwini.
This study is intended to explore the practicality, structure, and potential impact of such a levy before any final decisions are made.
The proposed levy aims to establish a dedicated, ring-fenced funding mechanism to support the marketing of Durban as a tourism destination of choice both locally and internationally, and to drive tourism-related innovations and initiatives.
The ultimate goal is to reduce reliance on Municipal funding and improve long-term financial sustainability within the tourism sector.
The Committee stressed the importance of broad and inclusive sector stakeholder consultations to solicit various views.
Durban Tourism will be expected to engage with a wide range of stakeholders, including the national Department of Tourism, South African Tourism, local tourism boards, industry associations, community organisations and the private sector.
These engagements will be critical in shaping a transparent and fair levy structure that ensures mutual benefit without imposing undue pressure on local tourism businesses.
Following the consultation process and completion of the feasibility study, Durban Tourism is expected to present its findings and recommendations to the Committee.
Only then will a final determination on the implementation of the levy be made.
The recommendation aligns with the City’s strategic goals to enhance financial sustainability and promote Durban as a globally competitive, vibrant tourism destination through innovative, indirect revenue models.
*ETHEKWINI REVIEWS ECONOMIC DEVELOPMENT INCENTIVES TO ATTRACT MEGA INVESTMENTS*
To ensure that Durban remains competitive, investor-friendly, and forward-looking, eThekwini Municipality implemented several initiatives such as the Economic Development Incentive Policy, which offers rebates and incentives to attract and retain investment.
To actively ensure that this is sustainable and attracts mega investments, the incentives are reviewed annually to ensure they attract and support investment that drives the radical economic transformation agenda, in line with the Integrated Development Plan Two.
This is also to align incentives with the eThekwini Rates Policy and Budget Resolution.
For the 2025/26 financial year, the proposed approach is to support investments based on their potential and future contributions to economic growth, spatial regeneration, and job creation within the Municipal area.
A new major qualifying criterion is jobs created post-construction in new investments in any sector.
A maximum of a three-year incentive period will apply, during which a 10 percent incentive can be granted if a minimum of 50 jobs and up to 250 jobs are created.
In the previous financial year, the same percentage was given if a development created a minimum of 20 jobs during the construction phase.
Another major qualifying criterion is for investors to be aligned with the City’s priority nodes for economic growth, as identified and demarcated in the Municipality’s Spatial Development Framework and available on the municipality’s website.
This includes the Inner-City Regeneration Programme.
The Committee noted the report detailing the proposed changes.
*ETHEKWINI ACCELERATES ENERGY EFFICIENCY IN PUBLIC INFRASTRUCTURE*
EThekwini Municipality has reaffirmed its commitment to sustainable development through the implementation of the Energy Efficiency in Public Buildings and Infrastructure Programme.
As a sub-project of the national Energy Efficiency and Demand-Side Management initiative, the programme aims to reduce energy consumption, lower operational costs, and promote low-carbon technologies across Municipal facilities.
The Economic Development and Planning Committee noted a report from the Climate Change Sub Directorate during a meeting on 10 July.
Ten high-energy-use Municipal buildings have been selected for the pilot phase of the programme, including uShaka Marine World, the Inkosi Albert Luthuli International Convention Centre, and various libraries and civic centres.
These facilities will undergo retrofitting with energy-efficient lighting, HVAC systems, solar PV installations, and water heating upgrades.
The project is supported by a conditional R7 million allocation from the Department of Electricity and Energy, with no upfront capital required from the Municipality and costs recovered through performance-based contracts with energy service companies.
Institutional readiness has been a cornerstone of the programme’s success, with cross-departmental steering committees, technical task teams, and legal reviews ensuring compliance with the Municipal Finance Management Act.
Independent measurement and verification will be conducted to ensure transparency and value for money.
Additionally, the programme includes a strong focus on transformation, prioritising local SMMEs, youth and women-owned enterprises, and integrating a graduate training component.
This initiative not only supports eThekwini’s climate goals but also contributes to job creation, skills development, and long-term cost savings.
The Municipality views the programme as a replicable model for future energy efficiency rollouts across its property portfolio, reinforcing Durban’s position as a leader in sustainable urban development.
*DURBAN STRENGTHENS CLIMATE RESILIENCE WITH STRATEGIC PROGRESS*
EThekwini Municipality has released its 2023/24 Durban Climate Change Strategy (DCCS) Annual Report, highlighting the significant strides made in building a climate-resilient City.
Under the leadership of newly appointed Deputy Director Dr. Luyanda Mafumbu, the Environmental and Sustainability Management Directorate unified its adaptation and mitigation efforts, initiating a review to merge the Climate Action Plan and DCCS into a single, cohesive framework.
Despite early challenges with the City's reporting systems, implementation rates improved steadily, with 80 percent of reported projects meeting their targets.
Key achievements include capacity-building initiatives with youth and women being held in rural communities as well as the launch of the Climate Portal on the City's Strategic Hub.
The enabling theme saw the most progress, with new research programmes and partnerships expanding Durban’s leadership in climate innovation.
However, gaps remain in financing and technical capacity, particularly in flood-related infrastructure recovery, which continues to strain Municipal resources post the 2022 floods.
Looking ahead, the Municipality plans to enhance stakeholder engagement, establish a multi-stakeholder climate forum, and strengthen climate finance mechanisms.
The report, available on the Municipal website and climate portal, reaffirms Durban’s commitment to sustainable development and its role as a continental leader in climate action.
The Economic Development and Planning Committee noted the report regarding the Durban Climate Change Strategy Annual Report.
ENDS
Issued by eThekwini Municipality’s Marketing and Communications Directorate.
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