READ: KwaDukuza Mayor tables 2026/27 financial year primary budget together with Medium-Term Revenue and Expenditure Framework (MTREF)

KwaDukuza Mayor Cllr. Siduduzo Gumede delivers the 2026/27 financial year primary budget together with Medium-Term Revenue and Expenditure Framework (MTREF).

 

Speaker of council;

Whip of Council;

Members of the Executive Committee;

Chairpersons of Portfolios;

Representatives of the Local House of Traditional Leaders;

Members of Council;

Municipal Manager and Senior Management;

Invited guests;

Interest groups;

Members of media;

Ladies and Gentlemen:

 

It is an honour, a privilege and a huge responsibility that I stand before you to table the Medium-Term Revenue and Expenditure Framework (MTREF) for 2026 and 2027 Financial Year. 

This State of the Municipality Address is the culmination of extensive consultation following the presentation of the Draft Budget on 26 March 2026. It reflects hard choices that the Budget Steering Committee had to make in the interest of our people, these choices have been steadfast and guided by a genuine commitment to communities other than political convenience.

 

I accordingly wish to extend my warmest greetings to all invited guests as we meet as a collective to consider the budget and to reflect on our achievements while taking stock of our challenges.

 

The 2026/27 Medium-Term Revenue and Expenditure Framework (MTREF) is framed within the priorities outlined in the President's 2026 State of the Nation Address and the provinces strategic agenda.

 

At the national level, the call to local government is unequivocal. It is to accelerate infrastructure-led growth, strengthen energy security, improve revenue collection, protect vulnerable households, and to restore the credibility and trust in local governance. Our Medium-Term Revenue and Expenditure Framework accordingly responds directly to each of these imperatives. 

 

The budget covers the primary financial year 2026/27 and provides indicative allocations for the two outer years which is 2027/28 and 2028/29, over the full three-year medium term.

 

Fellow councillors, I deliver this presentation as I mark exactly nine months since taking office as the mayor of KwaDukuza. Within this period, we were materially able to stabilise the municipality financially and politically.

 

One of the key areas of focus when I took office was to ensure the harmonious coexistence of parties within the council. Secondly, it was to meet with structures within the service delivery value chain including ratepayers, business, unions and many others. This was the point where we all felt the need to address the prevailing political and operational circumstances at that time. 

Our engagements were characterised by our shared interests of our people. It was through these engagements that we emerged united in understanding. Agreeing to our mandate that it is largely to be of service to the people, regardless of the ways in which we differ ideologically within the political spectrum.

 

Madam Speaker, these engagements signalled the birth of our Turnaround Service Delivery Improvement Plan where we have been able to significantly stabilise the municipality at a political level - as a leadership collective.

Let me be quick to remind fellow members that we are an outgoing council! We have just a few months before the end of our Term of Office. It is therefore critical to note that this could be the last budget presentation for the current Term of Office as we prepare for the local government elections taking place in November 2026.

 

Importantly madam Speaker, it is critical for this council to take stock of the tremendous work it has delivered over the years while noting its challenges.

 

We are at a time where we are seized with several challenges that are quietly becoming existential threats to our key mandate of building a capable, ethical, democratic and developmental state.

Over the past five years under the current leadership, KwaDukuza has delivered on the promises to the people under a wild and woolly terrain. The municipality has been operating under difficult circumstances with the outbreak of the Covid-19 pandemic, the 2021 economic upheavals, and the 2022 disastrous floods.

 

Commemorating the 30 years of local government

 

Ladies and gentlemen, this year local government commemorates 30 years. It becomes significant to reflect on the progress that has been made in tackling apartheid injustices and in building a truly united, free, and equal society. This also remains true to our Constitutional imperatives which promise a better quality life for all.

 

The 30-year milestone is a direct culmination of efforts by our forebears who were united in building a society that is united, non-racial, non-sexist, and democratic.

 

The assessment of our democratic journey in summary has been marked by successes and challenges where democracy would inherit a deeply divided society, characterised by racial biases, exclusionary policies which have hindered human progress and development over the years.

 

Fellow members, let us cherish todays occasion and our 30th year milestone to reaffirm of our commitments towards improving conditions of the poor, overcoming economic hardships, and to sustain cooperation and unity within our communities.

 

Madam Speaker, while there is still a lot of progress to be made in the remining few months during our term, allow me to indulge on a high level overview on progress since November 2021 when the current council was established.

Drawing from reports from current and previous years, the municipality performed well in several areas and one of the most impressive turnarounds has been our sustained performance as number one in the province.

 

We have continued to receive top national & provincial financial ratings. In 2021/22 we were ranked number three nationally, and in 2023/24, we were ranked at number 07.

 

We obtained 19 Consecutive Unqualified Audit Opinions which has set a national benchmark for clean governance.

 

In the 2024 Municipal Excellence Awards, the municipality won three awards for Best Sustained Financial Management, Cleanest Townships and Best Waste Management Outreach Programme. 

 

The Glenhills Thusong Centre in Ward 13 was recognised as one of the best-performing Thusong Centres in the province.

 

In 2025 Municipal Excellence Awards, we were recognised for sound Financial Management. The municipality also received an award for consistency in funded budgets and audit outcomes at the National Local Government Summit.

 

Our revenue collection efforts continue at a sustained above 95% throughout the five years despite COVID and other calamities.

After the April 2022 flood disaster, the municipality secured around R1.4 billion which has been by far, the largest single infrastructure investment in our history. 

 

The three conditional grants were appropriated as follows:

·      Disaster Response Grant at R109 million was to cover 30 projects;

·      The Disaster Reconstruction & Rehabilitation Grant at R1,2 billion for 400 projects;

·      The Disaster Rehabilitation Grant at R22 million covering five projects.

 

Our MIG spending has been consistently excellent during the course of the five years where we have been exceeding 99%.

 

During this term, the municipality retained its Level-2 Housing Accreditation, becoming is one of only six municipalities in KwaZulu-Natal to enable speed and efficiency in housing delivery.

We became the first secondary city in Africa to have achieved four badges under the Compact of Mayors for climate action in 2022/23, underlining our efforts as climate change continues to threaten our very existence and sustainable future.

 

On major substations, the municipality was able to energise Gizenga Substation in Groutville with a total investment of over R42m. 

 

The development of the new Dukuza Bulk Substation in Ballito was initiated in the current term and it is currently in phase two of development. Over time, this project will contribute towards easing the pressure on supply and facilitate more electricity generation for the fast growing areas along the south like, Ballito and neighbouring communities where big investments are currently happening.

 

We realised that development will not continue if we don’t invest in electricity infrastructure. Once active possibly in the outer years, the station will become the cornerstone for the development of the southern corridor along the Dube Trade Port. It will ensure that the electricity supplied to the areas that make up the greater Ballito area is stable.

 

Our 50 kilometre coastline hosts four Full Blue Flags. Major upgrades at the Nonoti Recreational Beach Node Development Project are underway and this project is expected to stimulate domestic and international tourism opportunities.

 

Phase 1 of the KwaDukuza CBD Regeneration Project was launched recently with an approved investment of R141.9 million under Neighbourhood Development Partnership Grant. The project will cover upgrades to several roads within the CBD which includes King Shaka Street, Balcomb Street, Theunissen Road, and many more. We will be improving stormwater systems, wider sidewalks, pedestrian facilities, and add enhanced urban design elements to create a safer, more attractive, and functional central business district.

 

Phase 1 is currently proceeding at approximately R53.3 million. This NDPG-funded project will be delivered in phases and will significantly improve the public realm and economic life of our CBD.

 

The KwaDukuza Museum was completed and opened for public use in 2024. It forms part of the KwaDukuza CBD Regeneration Anchor Projects and aimed at creating a cultural tourism precinct, which incorporates existing King Shaka Memorial Centre (King Shaka Grave) within the CBD. KwaDukuza Municipality and the KZN Department of Arts and Culture spent a total amount of R25.2 million.

 

The municipality successfully commissioned the SCADA System across multiple substations. The system is in progress, supporting 13 Substations and it is to significantly reducing energy losses over the long term.

 

 

We invested R19.9m for upgrades to the KwaDukuza Taxi Rank and R6.5m towards the Ballito Taxi Rank and this project was handed over to the association during April 2025.

We completed the upgrades to Groutville Market Sport Field and it was handed over on Human Rights Day as a symbolic recognition of 66th anniversary since the disturbing scenes of Sharpville Massacre. We upgraded this facility with an amount of R10m ringfenced grant from the Dept of Sport, Arts and Culture.

 

We have also upgraded several other sporting facilities including the Chris Hani Sport Field in Ward 15, initiated upgrades to Darnall Sportsfield, multiple combo courts, ablution facilities, and hall refurbishments including Nkobongo, Velani, Malende, Town Hall and a lot more.

 

The current Term of Office also saw the opening of Magwaza Shopping Centre & Ballito Junction Extension which further created over 360 capital jobs and 527 economic development opportunities. This centre supports retail and commercial activity for previously underserved areas.

 

In 2022, President Ramaphosa officially opened the HESTO Harness extension plant where over 4,000 new jobs were created, totalling over 7,000 employees at that time and now over 8000 with the Hesto extension located at Woodmead Industrial Park, Shakaskraal, operating under Shree Properties.

 

The Woodmead industrial Park is a key industrial node, representing a significant private sector investment of over R620 million, and is home to businesses that collectively employs hundreds of residents from the local community

 

Ladies and gentlemen, last month I was invited to the official opening of the Zimbali Lakes Clubhouse that also hosts the Ernie Els Signature Golf Course. The opening of this facility amongst others signals the growing investor confidence in the region. The Clubhouse and the Ernie Els Signature Golf Course are part of the Zimbali Lakes mixed-use Development led by IFA Hotels & Resorts. The Zimbali Lakes development is a flagship catalytic project with R800 million already invested in infrastructure.

The total infrastructure investment is projected at about R1.6 billion with approximately R1.2 billion in property sales to date. These developments and many others reinforce our position as a premier lifestyle destination and leading investment and tourism destination in the province. 

 

Ladies and gentlemen, come the 4th of July, Club Med South Africa Beach & Safari Resort will be officially opening its doors to the public with 66 five-star suites, 345 four-star rooms; restaurant, beach resort, water sports and many more. The 2.2 billion investment has created over 800 direct and over 1,500 indirect jobs. The investment adds more chapters to our investment portfolio, cushioning the municipality into becoming a world-class investment destination.

 

The Seaton Mixed-Use Development offering residential stands, shopping centers, and office spaces is already underway with an investment in road infrastructure which includes a new N2 Sheffield interchange and improvements in internal roads. The project is implemented by the Collins Group in Salt Rock. The construction of a new school to be opened in the upcoming year is already underway.

 

The North Point Business Park is implemented by North Global Group which is comprised of industrial park and a residential component aimed at the affordable market.

 

The implementation of the 108 bed Sonjulo Heart and Vascular Acute Private Hospital at Palm Lakes will be one of its kind in the region. Soon, the community will no longer travel to EThekwini if they have heart related issues. The construction of this facility is driven by Sonjulo Group. 

 

Fellow members, next week on Tuesday, 02 June 2026, through the Mayoral Investor After Care Programme, I will be leading a council delegation to oversee a new macadamia processing investment in Darnall. The plant is ran by a giant company that has affirmed to me that the Darnall facility will be its flagship macadamia processing plant due to its strategic location and logistical flexibility.

Just last week, I met the team of developers who have identified land for the construct of the first ever lifestyle centre in Groutville in Ward. The centre is to be named Nobelungu Gumede Shopping Centre. Some of the anchor tenents of this mall will be Shoprite, Boxer, KFC, Clicks, Hungry Lion, Russells and PEP, just to name a few. This centre will be directly opposite Nonhlevu High School and it is expected to open by August 2027 as all building plans have been approved.

 

Investments and growth will change the landscape of Groutville and this is testament that we are growing in leaps and bounds, changing the face of our rural and coastal economies.

 

Ladies and gentlemen, KwaDukuza has been consistent in processing and granting approvals of building plan applications throughout the five-year period. We are growing the rates base, creating jobs, Driving local economic growth, and enabling sustainable development. KwaDukuza is one of only four municipalities in the province that is showing significant population and property growth over the past 15 years.

 

Madam Speaker, I wish to use this platform to acknowledge the investors and private developers like Arcis, Balwin Properties, Collins Group, amongst others who are implementing various residential developments in our area.

 

Ladies and gentlemen, this is simply because we are offering generous developer incentives to support investments, coupled with a business-friendly environment. These advancements indicate that KwaDukuza continues to be an appealing choice for investments.

 

Fellow members, at a high level, this is what five years of delivery looks like despite the impact of floods, covid-19, civil unrests, cyber and political attacks - we remain united in all these successes.

 

As we table this budget, we build on this proud record filled with a fair share of setbacks and challenges which include.

• Non-performance of consultants and contractor performance delays leading to projects and infrastructure delivery failures.
• High debtor impairment and collection periods.
• ICT system vulnerabilities.
• Depleting financial reserves.
• National grant cuts impacting housing delivery.
• Rising operational costs linked to high energy costs and losses kinked to illegal connections, meter tampering, and billing inaccuracies.
• Irregular and Unauthorised Expenditure linked to SCM non-compliance and contract management failures.
• Critical staff vacancies remain unfilled.

 

These challenges are surmountable. We have the momentum, we need to double our efforts in order to turnaround the situation.

 

Madam Speaker, like pieces coming together in a puzzle, the people of KwaDukuza have spoken, they have given us the responsibility to provide a safety net for the poor, to promote sustainable development, to forge long-term growth and address sector barriers for growth and investments.

 

In the months leading up to this budget, I successfully led twenty (20) community engagements where I listened to the people including, ratepayers, traditional leaders and the business community on pressing issues confronting their communities.

 

These engagements were not a formality but were part of the broader business and that is why it is first on the agenda today.

I firstly wish to acknowledge the substantive written submissions received from the KwaDukuza Organised Residents Alliance (KORA), the iLembe Chamber of Commerce, and from the ActionSA Caucus, all of which all reflect genuine civic responsibility and interest for community. 

To this end, formal written responses to each submission are currently being processed and will be provided to the relevant parties in due course or as early as 1^st of June 2026. However it is important to note that some of the matters raised have been ongoing and some are receiving the attention of council for consideration.

We extend our appreciation to all role-players who participated in this process including our senior officials, councillors, members of the civil society and members of the public in general.

From these interaction, it became clear to me that our people simply want us to lead them with integrity and that they want to feel involved in the development of their communities!

Through the Imbizo’s, I made the following observations: 

 

1.   That communities want the municipality to improve Project Management on infrastructure delivery;

2.   Our communities spoke in one voice in protecting our economy from being hijacked by undocumented nationals and criminals in general. On that note, we as the political leadership have heed this call and we have already intensified our fight against lawlessness including the fight against fraud and corruption. Together with stakeholders within the security cluster, we have been making inroads to tackle illicit drug trade, violations to municipal bylaws, combating illegal immigration through active enforcement operations.

3.   Communities want us to sustain the fight against fraud and corruption allegedly happening within the administration. This is also in light of the ongoing high-profile investigations that are currently underway, including the Section 106 findings concerning governance, administrative and financial mismanagement, the probe by the Special Investigating Unit (SIU) into three high-value tenders dating back to 2018-2019 for roadworks and electrical infrastructure, as well as the Directorate for Priority Crime Investigation (Hawks) Inquiry into the R35.7 million bank account Cyber Fraud.

4.   Communities said the municipality must increase the spend on the maintenance of infrastructure including, potholes, and streetlights.

5.   The municipality must unlock blocked housing projects;

6.   There’s a need to strengthen relations with stakeholders to improve customer care and experience.

7.   Our communities appreciate that the municipality has been able to position its people for jobs through the private sector investments, yet still, there is a strong need for SMME empowerment in the context of the high employment rate, job creation and sport development.

8.   Our communities acknowledged the shifts in the geo-political world which pose a heavy demand on the cost of living, they demanded reduced basic services tariffs of charges.

9.   The energy security question remains a key concern due to high energy losses.

10.  Our communities said they want functional structures at ward level. Madam Speaker, the KwaZulu-Natal Provincial Executive Council has chosen KwaDukuza as the official host of the Cabinet Day Imbizo in July 2026. Ahead of this visit, we want to ensure our readiness in terms of functionality of our War Rooms and effectiveness of our community based structures so that we are able to streamline service delivery across all wards in that we also address the public outcry.

 

Ladies and gentlemen, in preparing the budget, we considered many factors including global developments which continue to weigh heavily on the Rand. The reality is that we are under a volatile economic climate which requires steadfast leadership. We are facing real economic pressure with the rising bulk electricity costs, declining investment income, expanding service delivery obligations, and continued demands on municipal infrastructure.

 

Yet, I table this budget with confidence, knowing that through deliberate financial management and a clear turnaround strategy, KwaDukuza will be able to pay her bills, deliver services, and plan for her future.

It is under the backdrop of hard choices, challenge, opportunity, and honest reckoning that the theme for the 2026/27 Financial Year has been declared as. “The year of deepening action to fix while delivering on commitments to the people”.

BUDGET

Ladies and gentlemen, for the 2026/27 financial year, the budget has been appropriated.

 

The total budget for the upcoming financial year is R3.5 billion.

 

The total operating revenue stands at R3,335 billion which translates to a 10% growth of R326.3 million from 2025/26 Adjusted Budget.

The Total operating expenditure is R3,333 billion.

Our Capital Expenditure is now R172 million from the R107 million that appeared on the draft. Our Operating Surplus stands at R1.3 million which remains balanced & funded.

 

REVENUE

Total operating revenue is projected to grow by R326.3 million, a 10% increase over the 2025/26 Adjusted Budget. This is a significant improvement from the 8% growth projected in the March Draft Budget. For the two outer years, revenue will increase by R133.5 million and R135.8 million respectively.

 

PROPERTY RATES

Property Rates revenue has grown from R886 million in the Draft to R959 million in the Final Budget, an increase of R73 million which is driven by the new General Valuation Roll, phasing out of the general rebate, new building completions, a net 3% tariff increase, an estimated R36 million from new property developments, and ongoing data cleansing and supplementary valuations.

 

The residential rates threshold has been raised from R150,000 to R250,000, protecting lower-value property owners. Medical-boarded persons have been added to the pensioner and disability rebate category. Guesthouse and residential-commercial properties have been formally reclassified with specific rebates of 64% and 9.48% respectively.

 

ELECTRICITY REVENUE

Electricity tariff increases of 9% to 11% apply across consumer categories, subject to NERSA approval. The amnesty programme provision has increased from R20 million on the draft to R35 million on the final budget. An additional R7 million has been allocated for the extension of the meter audit programme, and R4 million for faulty and non-vending meter replacements.

 

REFUSE REVENUE

Refuse tariffs increase by 7%. A further 2% revenue growth is expected from previously unbilled areas now entering the billing system. The Revenue Department has commenced property ownership and indigent verification in these areas.

 

AGENCY FEES

The Agency Fees budget increases from R15 million to R17 million, reflecting improved Testing Station operations, resolution of system downtime backlogs, and general growth in vehicle licensing transactions.

 

EXPENDITURE

Total operating expenditure of the municipality is R3.334 billion which is an increase of R105.6 million from the 2025/26 Adjusted Budget. A Draft deficit of R153 million has been converted to a Final surplus of R1.3 million, this is a swing of over R154 million through revenue enhancement and expenditure containment.

 

EMPLOYEE COSTS

Employee costs and councillor remuneration represent 22% of the operational budget. Employee costs total R684 million, up from R682 million in the Draft. Vacancies remain frozen for non-critical posts, overtime is capped at R51.4 million, and appointments will be scheduled after 01 August 2026.

 

CONTRACTED SERVICES

A broader high value contract renegotiation mandate now applies across all significant service contracts, refuse, security, and rate-based agreements. The Security Services budget remains at R38 million. All business units have been directed to align new contract awards to budgetary constraints before conclusion.

 

CAPITAL BUDGET

The total capital quantum over the MTREF has grown from R263.8 million at Draft to R449.2 million on the Final budget, an increase of R185.4 million. This expansion was made possible through the release of ring-fenced developers' contributions for which suspensive conditions have lapsed.

 

A R54.68 million provision for new internally funded projects has been included, compared to zero in the Draft Budget. We are currently sitting at the lower end of National Treasury's acceptable financial stability scale. We are stable but with very little room to absorb extreme shocks. Hence, on the Final Budget, we have taken deliberate steps to protect what remains. Therefore, new internally funded capital projects have been strictly limited to only R54.68 million.

 

The landmark investment of the medium term is R125 million for the Dukuza Substation, R5 million in 2026/27 and R60 million on potential loan funding each of the two outer years. This project remains our flagship project to unlock development in the southern Ballito region including new private sector investments and developments.

 

BULK PURCHASES

At approximately R1.7 billion Bulk Purchases remain the largest single expenditure item. It incorporates the NERSA-approved 8.76% tariff increase while embedding a R87.5 million reduction. An additional R34.5 million was reinstated from the draft position to reflect the realistic cost of managing non-technical energy losses. Energy losses of R440 million to R480 million per annum remain the most pressing financial challenge facing the Municipality.

 

Ladies and gentlemen, within the national crisis backdrop the reality is that municipalities collectively owed Eskom R94.1 billion as of January 2025, up from R74.4 billion in March 2024, with the figure projected to reach R110 billion by March 2025. 

 

The energy crises in South Africa is a complex matter and so as the Electricity minister Dr Ramokgopa would put it, "Municipalities owe Eskom R370 billion in total. That's unsustainable. This will result in a total collapse of the electricity complex in the country."

 

Joburg City Power is R20 billion in the red, which it spends at least R2 billion more than it collects annually, and lost 42% of all electricity it purchased from Eskom in Quarter 1 of 2025/26. This is highly driven primarily by theft, vandalism, illegal connections, bypassed meters, and billing inefficiencies.

Energy losses remains a key concern and we are far above the industry norm, due to transmission issues and illegal connections.

 

However, the municipality is currently in a financially stable position. The following indicators underpin this stability:

• Twenty consecutive unqualified audit opinions
• A balanced and funded Final Budget for 2026/27, deficit reversed between draft and final
• Service charges contributing 56% of total revenue, a diversified and defensible revenue base
• Internal reserves preserved through disciplined reduction of capital commitments
• Equitable Share fully committed to indigent support and social services
• Funding and Reserves Policy adopted to govern minimum cash reserve requirements
• No short-term debt; long-term borrowings managed within statutory limits
• Cash flow closely monitored with monthly reconciliation of bulk purchases against consumption
• No municipal entities, eliminating subsidiary governance risk

 

The Financial Stability Turnaround Framework provides a structured roadmap for restoring reserves, reducing energy losses, expanding the rates base, and repositioning our financial profile over the medium term.

 

The following tariff increases take effect on 01 July 2026:

 

Property Rates: Net 3% average increase (randage adjusted to offset removal of the general rebate)

Refuse Removal: 7% average increase across all categories

Electricity: 9% to 11% across consumer categories (subject to NERSA approval)

Miscellaneous tariffs: Various as detailed in the Tariff of Charges document

 

Ladies and gentlemen, this budget has six key priorities to stabilise the municipality and sustain services while delivering on key infrastructure.

 

PRIORITY 1: ELECTRICITY INFRASTRUCTURE AND ENERGY SECURITY

Bulk electricity purchases account to over 51% of the entire operational budget. We are investing aggressively to stop energy losses:

• R7 million will be allocated for the meter audit programme extension.
• R4 million for the replacement of faulty and non-vending meters
• R6 million for Large Power User reconstruction costs linked to the RT29 contract.
• R35 million for the electricity amnesty programme revenue recovery.
• And R5 million towards funding the Dukuza Substation for phase two and the balance of R60m in each outer years

 

PRIORITY 2: ROADS, STORMWATER AND CIVIL INFRASTRUCTURE

Specific new allocations have been made for civil infrastructure maintenance and repair:

·       In the upcoming financial year, we will focus heavily on maintenance of our infrastructure including pothole repairs, graveling our roads, and stormwater maintenance. We have allocated R5.5 million to undertake these activities.

• An amount of R2 million will go towards roads and stormwater inventory material.

 

PRIORITY 3: REVENUE BASE EXPANSION AND BILLING INTEGRITY

A significant portion of the operational budget has been allocated for growing and securing the revenue base which directly funds all services:

• R7 million will be allocated for meter audits (recovering lost electricity revenue).
• R4 million for meter replacement to improve billing accuracy.
• R36 million for new property developments entering the billing system.
• R35 million for the amnesty programme, specifically for formalising illegal connections.
• Data cleansing, property verification, and supplementary valuations is ongoing.

 

PRIORITY 4: EMPLOYEE SERVICES AND WORKFORCE

To assure a workforce that is maintained and fairly compensated, we are investing a total of R684.9 million for employee costs which represents 22% of the total operational budget. The Municipality has committed to the following:

• Filling only critical posts where HR processes have already commenced
• Overtime has been capped at R51.4 million.
• Appointments are scheduled after 01 August 2026 to manage bonus and notch costs.

 

PRIORITY 5: CAPITAL INVESTMENT

The capital budget has nearly doubled from the Draft of R263m to a Final R449m. Key commitments include:

• R5 million for the Dukuza Substation
• R54.68 million for new internally funded capital projects
• 49% of the capital budget is directed at renewal of our existing assets.

 

PRIORITY 6: SERVICE DELIVERY EXPANSION

• Township establishment has been accelerated to unlock new service delivery areas and expand the rates base
• Refuse collection will be extended to previously unserviced areas, with billing to follow indigent verification.
• Indigent registration drives will be ran annually.

 

Ladies and gentlemen, who does this budget protect, and under what circumstances does that protection apply? 

Let me be unequivocal. The vulnerable are at the centre of our budget priorities, and this is not by accident. It is by a deliberate policy position.

In line with Council's policy imperatives, we have ensured that those who are most exposed to economic hardship are shielded from the full impact of tariff increases, rates obligations, and the rising cost of services. The following commitments give that protection practical meaning:

 

1.   Indigent households will receive Free 100kWh electricity, 100% refuse subsidy, zero rates in properties below R250 000 per month at no cost to the consumer. This is funded through the Equitable Share grant.

2.   Child-headed households will receive  a 100% rates rebate and 100% refuse removal subsidy. The cost is funded through Equitable Share and internal municipal funds. As refuse billing is extended to previously unbilled areas, residents who qualify as indigent will be screened and exempted before billing commences.

3.   Pensioners, disabled and the medically-boarded residents will receive between 25 - 35% rates rebate by age brackets.

4.   Properties acquired through land reform will receive a 100% rebate, with a phased introduction over three years (75%, 50%, 25%) to ease new landowners into the rating system without financial shock.

5.   Agricultural households will receive 50% rates rebate. This position recognising the economic vulnerability of farming households and the importance of agricultural activity within the KwaDukuza municipal area.

6.   New commercial developers or SMMEs will receive up to 100% rates rebate for Years 1 & 2. This will help attract investment and support new business development, commercial developers receive a staged rates rebate.

7.   Guesthouse and home-based business operators are to receive 64.57% or 9.48% rebate on reclassification. 8.   Places of worship & public benefit organs will receive a 100% rates rebate.

 

The first R50,000 of vacant residential properties owned by registered indigent beneficiaries is exempt from rates so as to protect indigent households who may hold undeveloped land.

 

A 15% rebate applies where certain services are not delivered, this will ensure that households are not charged for services they do not receive.

 

As Council considers this Final Budget, I commit the administration to the following in 2026/27:

• Aggressively reduce non-technical energy losses through meter audits, the amnesty programme, smart metering, and enforcement, with monthly reporting to Council
• Complete the Dukuza Substation in terms of potential loan funding each of the two outer years.
• Renegotiate all high-value contracts to achieve alignment with the budget before award.
• Commence first-time billing in previously unbilled areas with proper indigent screening and consumer education.
• Accelerate township establishment to grow the rates base and expand service delivery.
• Review all operational costs previously funded from disaster grant interest income and table a rationalisation plan at the Adjustment Budget.
• Implement the Financial Stability Turnaround Strategy as a separate Council item.
• Strengthen credit control and debt collection across all three major revenue streams.
• Report monthly to Council on SDBIP performance, capital expenditure, and revenue collection.

 

Ladies and gentlemen, in terms of Section 53 of the MFMA, I am required in my capacity as the mayor to provide general political guidance over the budget process and the priorities that must guide the preparation of the budget. Accordingly, this assists the prioritisation and spending plans of Council. The political component has a duty to oversee the budget process.

 

Fellow councillors, before you is a budget that is balanced, funded, legally compliant, and aligned with our Integrated Development Plan.

 

This outcome is credited to the effective Budget Steering Committee that is in place. The Steering Committee monitors financial planning and spending plans and advises Council accordingly. As the chairperson of this committee, I am indebted to its members who are key role-players in guiding the process from the initial draft. We thank the finance and public participation teams led by the Acting Municipal Manager for optimising their duties through our community engagements.

 

The 2026/27 Medium-Term Revenue and Expenditure Framework is a pro-poor budget that cushions vulnerable groups, and SMMEs through a combination of targeted rebates, exemptions, free basic services, policy refinements, and economic development measures while enabling investments, offering generous rebates.

 

Fellow members, this budget places our municipality at the heart of renewal of local government as an institution. The policy position recognises that after 30 years of local government, built on the sacrifices, and vision of our liberation heroes and heroines, there is consensus to evolve in that we are able to deliver a better quality of life promised in our Constitution. This budget should be a clarion call for the collaborative work that lays ahead.

 

Importantly as it is linked to our 30-year milestone of local government which must be celebrated in just about the same energy that the apartheid forces did for over 300 years of poverty and economic inequality against the disenfranchised majority.

 

Madam speaker, in many instruments, there’s one song! We are many faces, but one people. It is because of our differences that we remain united. Together, side by side no matter the challenge. We are stronger together!

 

In unity we stand but in division we fall. Let this budget unite us, let this budget be the answer to the toiling masses of our people, let it be a window to resolving our most pressing challenges, let it be a blessing and an historic answer to the call of democracy, let it lay the perfect foundation that will cushion the incoming council leadership towards the prosperity of communities!

 

We therefore call on all political parties to unite in moving the people of KwaDukuza forward!

 

With those words fellow members. I invite you to join me in approving this budget! 

 

The 2026/27 Medium Term Revenue and Expenditure Framework Budget is hereby tabled for your consideration and adoption.

 

Thank you!