Business Report

eThekwini Municipality confirms sound financial standing, boosting investor confidence

Thami Magubane|Published

eThekwini mayor Cyril Xaba

Image: eThekwini Municipality / Facebook

The eThekwini Municipality has been found to be on a sound financial footing.

In a statement, the municipality said this is a positive indicator for sustained service delivery and investor confidence.

Mayor Cyril Xaba stated that they intend to continue building on this to overtake all the metros.

The confirmation of the City's financial position comes from the National Treasury’s recent assessment, presented during the two-day Mayoral Lekgotla held last week to review the Municipality’s performance.

The Treasury team, led by Chief Director for Local Government and Budget Analysis, Jan Hattingh, confirmed that eThekwini’s financial standing is sound, based on a review of financial reports and audited statements.

The findings show consistent revenue growth and highlight the need for practical measures to maintain long-term sustainability.

Key indicators of eThekwini’s financial strength include:

  • Timely payment of creditors within 30 days;
  • Adoption of a fully funded budget;
  • Revenue exceeding expenditure, resulting in a budget surplus;
  • Employee-related costs at 25.3%, well within the Treasury’s 25–40% benchmark;
  • Capital budget allocation at 11%, aligning with the 10–20% norm and reflecting solid infrastructure investment;
  • The Municipality is not reliant on grant funding, enhancing service delivery resilience;
  • Ethekwini holds a favourable credit rating, enabling strategic borrowing for infrastructure-led growth.

“The National Treasury further noted that reducing fruitless and wasteful expenditure, along with curbing water losses, could position eThekwini as a national leader in financial governance and asset management,” said the city in a statement.

Xaba welcomed the findings and reaffirmed the Municipality’s commitment to sound financial stewardship.

“This performance shows we have what it takes to lead. We are determined to surpass all metros, and we won’t take our foot off the pedal,” said Xaba.

THE MERCURY