Improved service delivery and infrastructure investment, backed by the Presidential eThekwini Working Group (PeWG), are helping restore business confidence in eThekwini, unlocking major private-sector investment and supporting job creation.
The city’s interventions in electricity, water and sanitation are strengthening industrial and manufacturing zones and positioning eThekwini as a more attractive destination for investment.
As part of this effort, eThekwini is supporting 61 designated industrial areas that are home to about 27,000 businesses.
“These businesses generate around R9 billion annually and contribute more than 50% of the City's total revenue base,” eThekwini Municipality Mayor Cyril Xaba said on Thursday during a media roundtable outlining the progress of the PeWG.
The Presidential eThekwini Working Group was established to coordinate and accelerate interventions aimed at addressing key developmental, infrastructure, economic and service delivery challenges within the eThekwini Metropolitan Municipality.
The Working Group further seeks to strengthen collaboration between national, provincial and local government, while ensuring improved communication and stakeholder engagement on progress made.
In Prospecton, the city has undertaken major infrastructure improvements, with significant investment directed towards roads, electricity, water and sanitation.
“As a result of this work, Toyota has committed R10 billion towards expanding its investment in the area. This industrial node alone generates more than R1 billion annually in rates revenue for the city,” Xaba said.
The Mayor added that the city has also resolved several service delivery challenges in the Phoenix Industrial Park, unlocking further investment opportunities.
“A few weeks ago, I visited Tiger Brands in Umbilo, where management indicated that they will soon announce plans to expand their investment in the area,” he said.
Other industrial nodes, such as New Germany and Springfield, are also receiving focused attention.
Creating an enabling environment for investors
To accelerate the implementation of catalytic projects, the city has established a One-Stop Shop to centralise approvals related to planning, transport, infrastructure and compliance.
This structural reform is designed to streamline processes and improve efficiency.
The One-Stop Shop will provide a single point of entry for investors; integrated approval processes and defined turnaround times to ensure certainty and predictability.
“We are confident that this initiative will accelerate the implementation of catalytic projects valued at R217 billion.
This effort will be supported by an investment of R588 million in the next financial year towards bulk infrastructure for catalytic projects,” the Mayor said.
The projects include Durban Film City, Durban Waterfront, Oceans Umhlanga, Brickworks, Westown/Shongweni and Giba Business Park.
“We are encouraged that more than two-thirds of catalytic projects across all regions are already under implementation.
“For example, in northern Durban, construction has commenced on the R25 billion Sibaya Precinct Development. This mixed-use development, comprising retail facilities, a hospital, residential units and a private college, is expected to create 70,000 sustainable jobs.
“Significant progress is also being made on the newly launched R3.6 billion Birchwood Estate development, which is expected to create 2,500 jobs,” he said.
In Cato Ridge, yellow plant including cranes are already on site at the R10 billion Insimbi Ridge Development, which forms part of the Inland Port Development aimed at decongesting the Port of Durban.
This project is expected to create 5,000 sustainable jobs.
Governance
In terms of financial management and governance, the city has secured an unqualified audit opinion for five consecutive years.
“Consequence management continues to be implemented against individuals involved in corruption and maladministration. Irregular expenditure is showing a downward trend, while our collection rate remains within the National Treasury benchmark of 93% to 95%,” Xaba said.
The city is also among the few municipalities that are not in arrears with Eskom and Umgeni-uThukela Water for bulk electricity and water purchases.
Without the collaboration of all stakeholders through the PeWG and the District Development Model, the Mayor said these achievements would not have been possible.
“This demonstrates that when we work together as social partners, we can achieve remarkable results,” he said. -SAnews.gov.za
