President Cyril Ramaphosa says progress made in stabilising the eThekwini Metropolitan Municipality in KwaZulu-Natal demonstrates how coordinated leadership and partnerships can help struggling municipalities recover.
In his weekly newsletter to the nation, the President said the metro’s recovery shows that collaboration between government, business, labour and civil society can restore service delivery and rebuild investor confidence.
The President recently met stakeholders of the Presidential eThekwini Working Group, a multi-sector initiative established in 2024 after residents and businesses raised concerns about deteriorating services and infrastructure in the city.
READ | President Ramaphosa lauds eThekwini for early recovery
“At the time, the metro was beset by service delivery failures, deteriorating infrastructure and sliding business and investor confidence.
“Two years later, the interventions undertaken to tackle poor service delivery and failing infrastructure are driving an effective sustained recovery in the metro,” the President said on Monday.
In addition, he added that the Durban Business Confidence Index has reached its highest level since its inception. Confidence in the manufacturing sector has also increased by nearly 16% quarter-on-quarter, reflecting renewed optimism in a city that hosts one of the country’s largest ports and a strong industrial base.
Tourism has also rebounded, with more than 1.2 million visitors travelling to the metro during the recent festive season.
Infrastructure projects are underway, and improvements are being recorded in safety and security coordination across the city.
However, the President cautioned that stabilisation does not mean the metro’s challenges have been fully resolved.
“While stabilisation is not the same as a complete turnaround and the metro still faces significant challenges, the experience of eThekwini offers a viable model for coordination and partnership that can be replicated in other metros and municipalities to enable them to recover,” he said.
The working group approach, he explained, draws on the principles of the District Development Model, which aims to improve service delivery through collaboration across national, provincial and local government.
The model also promotes partnerships with the private sector and civil society to accelerate local government turnaround strategies.
As part of these efforts, the eThekwini metro last year approved a Partnerships Framework to strengthen public-private cooperation, particularly in infrastructure and catalytic development projects.
President Ramaphosa said business participation in local government reform is important because improved service delivery strengthens the economic environment in which companies operate.
Drawing on lessons from eThekwini, government has also established the Presidential Johannesburg Working Group to address governance, infrastructure, service delivery, safety and urban renewal challenges in the country’s economic hub.
Financial instability
Despite these initiatives, the President acknowledged that financial instability remains a major challenge for many municipalities.
He noted that around two-thirds of municipalities are in financial distress, often due to weak revenue management and rising debt levels.
“Without stronger revenue management and financial discipline, service delivery challenges will persist and backlogs will only worsen.
“The revenues collected from service provision are meant to be reinvested into maintaining and upgrading infrastructure to improve service delivery. However, in far too many instances these resources are redirected to cover other costs,” he said.
To address these challenges, government has allocated R27.7 billion over the next three years to support reforms in municipal water, sanitation, electricity and waste management services.
Reforms
Government is also reviewing the White Paper on Local Government, which could lead to major reforms, including changes to municipal powers and responsibilities, improved appointment processes for senior officials and stronger cooperation with traditional leadership institutions.
President Ramaphosa said improvements in eThekwini form part of a broader programme of reforms aimed at boosting economic growth and improving business confidence.
“These reforms in the energy, water, telecommunications and logistics sectors are already making an impact on the efficiency and competitiveness of our economy,” he said.
With local government elections approaching, the President called on all stakeholders to work together - not to campaign for the ballot box, but to strengthen municipalities and restore the promise of local government to uphold the dignity and improve the life of every citizen.
“When local government fails, the impact is felt by communities, businesses and households. When local government works well, villages, towns and cities become engines of opportunity and growth,” the President said. – SAnews.gov.za
