EThekwini Municipality is set to undertake special adjustment budget process in consultation with National Treasury in August 2021, as a result of the financial impact of the civil unrest.

 

This was revealed at a special Executive Committee Meeting on 20 July. In addition, the City will be requesting National Treasury to consider possible repurposing of grants as well as additional funding to assist with the recovery and normalisation process.

The City’s estimated financial loss regarding cash collection was R50 million for the first week of the unrest and potential loss of rates income due to damages is estimated to be over R300 million. With the increased unemployment and uncertainty, further impacts will be felt.

 

According to a report presented by Acting City Manager Musa Mbhele, initial estimates suggest that businesses have experienced losses of over R1billion of stock, R15bn of property and equipment damage and 55 000 informal traders and 40 000 formal business were impacted. The total impact on the loss of GDP in the region is expected to rise to over R20 billion.

 

The municipality has also undertaken to assist affected businesses and are considering implementing the following relief programmes subject to approval.

1. Section 78 of the Municipal Property Rates Act to allow business property owners to apply for a supplementary valuation of the property.

2. Use of Section 14 of the Rates Policy to implement a special rates rebate based on this being a disaster.

The Municipality requests those businesses that will not be re-opening in the near future, to approach the City to disconnect services so that utility charges are not raised.

 

The special Executive Committee Meeting was preceded by a Citywide inspection led by Mayor Kaunda with a high-powered delegation to determine the extent of the damage to the City’s key economic nodes including Cornubia Industrial Park, Bridge City Precinct and Riverhorse Valley Industrial Park.

 

Kaunda and the Business Community have committed to reviving Durban’s economy and rebuilding damaged infrastructure to save jobs following last week’s unrest.

 

Mayor Kaunda said that the inspection was part of the Municipality’s multi-pronged strategy of retaining investors and saving over 129 000 jobs that could be lost.

 

“The Business sector this morning has committed to working hand in glove with the Municipality to rebuild the City’s economy. It was encouraging to hear most of the anchor tenants in these economic nodes saying they had no plans to leave the City and committing to work with us in hatching a plan of saving jobs and attracting more investors to the City,” said Kaunda.

 

The Chief Executive Officer of Durban Chamber of Commerce and Industry Palesa Phili said most of their members have committed to keeping their investments in the City and helping rebuild an even stronger economy.

 

The Mayor assured the business owners that Metro Police, working with other law enforcement agencies, will increase visibility in all affected areas. Kaunda also warned business forums against stopping the rebuilding of businesses and urged them to work with the city to access opportunities.

 

Issued by eThekwini Head of Communication Lindiwe Khuzwayo. For more information contact Mayoral Spokesperson Mluleki Mntungwa on 060 974 1140

 

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