Whatshot
Over R1 Billion In Unspent Grants Earmarked For Infrastructure Upgrades
Over R1 Billion In Unspent Grants Earmarked For Infrastructure Upgrades
Date: 2025-07-23
The Durban Chamber of Commerce and Industry NPC is deeply concerned about the unspent grants earmarked for infrastructure upgrades amounting to over R1 billion. With eThekwini Municipality's ongoing service delivery challenges, this not only reflects poor governance within the municipality but also represents significant missed opportunities to create a more enabling environment for businesses to thrive.
Durban's water and sanitation system is under severe strain, with much of its infrastructure, such as pipelines and treatment facilities, ageing and deteriorating. The growing water demand continues to place additional pressure on the system. Furthermore, poor management of the City's stormwater networks is increasing the City's vulnerability to flooding. These challenges have become a serious concern for businesses, many of which are experiencing operational downtime and have been forced to explore alternative options to sustain their operations.
Despite these challenges and the urgent need to upgrade deteriorating infrastructure, the capital budget is on a declining trajectory. According to the Durban EDGE (2025), National Treasury guidelines indicate that 20% of the total budget should be allocated to capital infrastructure expenditure. However, in our current budget, 9.95% has been allocated for capital expenditure, which is far below the recommended threshold.
As organised business, we recognise that infrastructure plays a critical role in sustaining business confidence, fostering rapid economic growth and investment in Durban. The Durban Chamber of Commerce and Industry NPC believes that efforts should be focused on:
1. Improving the regulatory framework
2. Regular maintenance, refurbishment, and replacement of critical infrastructure.
3. Increasing infrastructure investment through private-public partnerships
4. Non-Revenue water reduction
The Durban Chamber of Commerce and Industry NPC together with private sector is committed to working with the City to address the infrastructure challenges. We have submitted a proposal to the City to address the infrastructure challenges through a PPP model but have not received any commitment to date. There needs to be accountability and transparency. Failing to spend allocated grants efficiently has the potential to lead to further deterioration of infrastructure, which will have far-reaching implications for our economy. Therefore, we urge eThekwini Municipality to review its bureaucratic systems, fast-track priority infrastructure projects urgently, and actively involve the business sector to ensure that available funding is utilised efficiently and effectively for the benefit of the City and Business.