eThekwini Tenders R74.7 Billion Draft Budget Amid Growing Backlash Over Proposed Double-Digit Tariff Hikes

eThekwini Mayor Cyril Xaba tables the 2026/27 draft budget. Residents face 15% water and 10.5% electricity hikes. Read the full political breakdown here.

By: AXL Media

Published: Mar 31, 2026, 8:14 AM EDT

Source: The information in this article was sourced from IOL

Municipal Leadership Outlines Infrastructure-First Fiscal Strategy

The eThekwini Municipality has formally tabled its draft budget for the 2026/2027 financial year, totaling R74.7 billion. Mayor Cyril Xaba presented the plan during a council meeting on Tuesday, designating R68.8 billion for operating expenses and R5.9 billion for capital projects. The central pillar of the Mayor's address was the urgent need to upgrade bulk infrastructure and enhance service delivery to stimulate long-term economic growth. Xaba argued that the budget is a "sustainability-driven" document designed to manage high debt levels while maintaining essential services in an increasingly volatile economic landscape.

Deep Dive into Proposed Utility Tariff Adjustments

The most contentious element of the budget is the suite of proposed tariff increases for basic services, many of which exceed the national inflation rate. Electricity is set for a 10.5% increase, driven largely by the R20.1 billion required for bulk purchases from Eskom. Water services face even steeper climbs, with a proposed 15% increase for residential consumers and 16% for businesses. Sanitation and refuse collection are not exempt, with proposed hikes of up to 14% and 13%, respectively. City officials maintain these adjustments are necessary to cover the rising costs of bulk water from uMngeni-uThukela Water and to fund critical repairs to the aging wastewater network.

Political Opposition Slams "Moral Deficit" in Financial Planning

The draft budget met immediate resistance from opposition councilors who represent a populace already battling high living costs. IFP Whip Jonathan Annipen criticized the document as failing to reflect the genuine financial hardship of Durban’s residents, stating that a municipal budget should serve as a "moral document" rather than just a balance sheet. The IFP has called for a thorough reassessment of the tariffs before the budget moves to the public consultation phase, arguing that the city must do more to support vulnerable households instead of further straining their limited resources.