The eThekwini Municipality has received a financial boost after independent ratings agency Global Credit Ratings (GCR) revised its credit outlook from negative to stable, while affirming the city's long-term AA-(ZA) investment-grade credit rating.
The improved outlook is an endorsement of the municipality’s strengthened financial position, improved infrastructure delivery, and disciplined fiscal management, signalling growing confidence in eThekwini’s ability to sustain investment, accelerate service delivery, and build resilience in a challenging economic climate.
eThekwini Municipality Mayor Cyril Xaba welcomed GCR Ratings’ decision, saying the change reflects improved infrastructure delivery, sound financial management and stronger operational performance.
"This outcome is an independent endorsement of the progress we have made in implementing the Municipality’s financial strategy, accelerating investment in critical infrastructure, and maintaining fiscal discipline through a conservative debt profile, stable collection rates, and continued access to funding despite a challenging operating environment,” Xaba said.
Xaba also commended City Manager Musa Mbhele, Chief Financial Officer, Dr Sandile Mnguni, the Finance Cluster and all municipal departments for their collective role in strengthening the municipality's financial position and reinforcing investor confidence.
While affirming the improved outlook, GCR Ratings also highlighted areas requiring continued attention, including reducing water losses, strengthening debt collection, improving environmental sustainability, and enhancing governance and internal controls.
The municipality said these priorities form part of its long-term financial sustainability and infrastructure renewal programme.
According to the municipality, the revised Stable outlook provides greater assurance to investors, lenders, residents and businesses that the eThekwini Municipality is consolidating its financial strength while accelerating infrastructure investment to drive economic growth, improve service delivery, and build a resilient metropolitan economy. – SAnews.gov.za
