eThekwini Municipality mayor Cyril Xaba outlined the proposed 2026/2027 budget
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Political parties in the eThekwini Municipality have called for the proposed tariff increases to be assessed to reflect the financial struggles of ordinary citizens.
This was after the municipality tabled its R74.7 billion budget and proposed tariff increases during a council meeting on Tuesday.
eThekwini Mayor Cyril Xaba presented the draft budget for the 2026/27 financial year at the meeting. The total proposed budget for 2026/2027 is R74.7 billion, comprising an operating budget of R68.8 billion and a capital budget of R5.9 billion. The budget will be taken to the communities for public consultation.
Xaba said the budget prioritises repairs and upgrading bulk infrastructure to enhance service delivery and stimulate economic growth in the city. He added that the budget must do more than respond to immediate pressures; it must navigate a rapidly changing economic landscape.
“This budget addresses the tough time by balancing fiscal discipline with targeted revenue growth, aiming to manage high debt while supporting vulnerable households, infrastructure, and job creation. It is a budget based on the principles of sustainability, on realistic revenue projections and projects that are ready for rollout,” Xaba said.
The proposed electricity tariff increase is 10.5% with a proposed total operating budget of R23.8 billion, of which R20.1 billion is for bulk purchases from Eskom, and R1.4 billion for repairs and maintenance. The proposed total capital budget for electricity is R746 million.
The proposed water tariff increase is 16% for business and 15% for residential consumers, with a 13% increase in bulk tariffs from uMngeni-uThukela Water. The total operating budget for water for 2026/2027 is R11.1 billion, which includes R5 billion for bulk water purchases, R2.1 billion for free basic water, and R619 million for repairs and maintenance. The 2026/2027 capital budget is R495 million.
The proposed sanitation tariff increase are 14% for business and 13% for residential consumers. The total operating budget for sanitation is R3.2 billion, while the capital budget for sanitation is R995 million.
The increase for refuse is 13%, while the operating budget for waste management is R2 billion. Also, the total operating budget for Engineering Services is R2.7 billion, while the capital budget is R463 million.
The municipality’s Community and Emergency Services (CES) proposed budget is R6.5 billion, funding R124 million for repairs and maintenance and R239 million for verge maintenance. The capital budget for CES is R429 million.
A total of R1.1 billion will be spent on Trading Service reform projects in the 2026/2027 financial year, and R3.9 billion over the Medium-Term Revenue and Expenditure Framework (MTREF).
Councillor Jonathan Annipen, IFP Whip in the eThekwini Finance Committee, stated that the municipal budget is not merely a financial instrument, but a moral document that must reflect both the will and the needs of the people.
Annipen said that across eThekwini, many residents are struggling to meet their financial obligations to the municipality—not out of unwillingness, but due to genuine financial hardship.
“The IFP is of the firm view that this budget must be assessed within the context of the current national and global socio-economic climate, where rising economic pressures continue to place immense strain on ordinary citizens,” he said.
Councillor Andre Beetge, DA ward councillor, was concerned about the mandatory water loss levy for domestic households, which has already been factored into the budget, even though the policy authorising it has not yet been communicated to the public, nor approved by this council. He said that the 5% rate increase cannot be ignored.
“This raises serious questions about transparency and proper planning. The informal housing deficit of R126.5 million is being charged to the city’s rate fund, and the deficit for new development housing and hostels, amounting to R322.3 million, also falls on ratepayers,” Beetge said.