eThekwini Municipality has earmarked approximately R10 billion to restore its water, electricity, and solid waste management infrastructure, aiming to enhance service delivery and ensure long-term sustainability.
This follows Finance Minister Enoch Godongwana’s announcement of a R3.33 billion grant to support the municipality’s trading services reforms over the next three years. The performance-based grant is intended to upgrade critical infrastructure and ensure the self-sufficiency of essential services.
The reforms will initially focus on water and electricity services in the 2025/26 financial year. To facilitate this transition, eThekwini has developed a Water and Sanitation Turnaround Strategy (TAS) alongside a Business and Investment Plan and an Institutional and Governance Reform Roadmap.
These plans are guided by six strategic pillars, which include financial ringfencing of the Water and Sanitation Business Unit, improved governance, and the introduction of a performance-based management contract.
As part of the strategy’s implementation, the city plans to increase investment in capital and operational programmes to stabilise water and sanitation services and enhance financial sustainability. To date, 22% of the turnaround strategy’s goals have been achieved.
With the additional funding, priority will be given to reducing water losses, improving customer service systems, enhancing water metering, and addressing intermittent supply issues. The municipality also aims to eliminate inefficiencies across its operations.
The R3.33 billion incentive grant is expected to accelerate these reforms and attract further investment. The city noted that, through the mayor’s office, it will continue engaging stakeholders to ensure the initiative’s success. eThekwini Municipality has welcomed the funding allocation and confirmed it will integrate the grant into its budget, which is set for approval in May 2025.