DURBAN, KwaZulu-Natal — eThekwini finances have stabilized, Mayor Cyril Xaba confirmed, delivering a comprehensive briefing on the metro’s fiscal health, ongoing water infrastructure repairs, and the critical status of service provider payments ahead of the upcoming SADC Heads of State Summit.
Addressing recent claims from certain vendors alleging the municipality lacks funds, Mayor Xaba firmly defended the city’s financial position. He emphasized that eThekwini’s sound financial management is proven by the consistent adoption of fully funded and credible budgets. Consequently, the National Treasury has not withdrawn the metro’s equitable share allocations, a decision that underscores national confidence in the city’s financial governance. Furthermore, the Mayor assured residents that the municipality carries no outstanding debt to water and electricity utilities, guaranteeing the uninterrupted delivery of these essential services.
Beyond fiscal matters, Mayor Xaba confirmed that the city has successfully met all preparatory targets to host the SADC Heads of State Summit next month.
Shifting focus to contractor compensation, municipal spokesperson Musa Mbhele addressed the transition to the city’s online payment system. While acknowledging early resistance from vendors who feared the digital shift was exclusionary to small businesses at the “bottom rung of the pyramid,” Mbhele noted a positive turnaround. He stated that payment processing has significantly improved since the platform’s launch, with service providers now utilizing the system to effectively monitor their invoices. The municipality’s financial compliance also recently earned a formal commendation from the South African Revenue Service (SARS).
However, on-the-ground realities for contractors remain mixed. A main contract manager representing local service providers, expressed that while vendors are not opposed to digital modernization or the “industrial revolution,” the current implementation lacks adequate support. The manager pointed out that the municipality’s training sessions were conducted exclusively online via shared links. For contractors who have experienced months of payment delays and lack reliable Wi-Fi or mobile data, this format creates a significant barrier to entry and comprehension.
To bridge this knowledge gap, the contract manager strongly advocated for in-person, face-to-face workshops to properly equip vendors with the necessary digital skills. Despite these operational challenges, he acknowledged tangible progress, confirming that the city has begun paying contractors, even if the entire backlog has not yet been cleared.
To resolve these outstanding friction points, a dedicated engagement session is scheduled between eThekwini municipal officials and service providers. The meeting aims to iron out differences, improve communication, and ensure the digital payment infrastructure works equitably for all stakeholders.
