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:
- Improving the regulatory framework
- Regular maintenance, refurbishment, and replacement of critical infrastructure.
- Increasing infrastructure investment through private-public partnerships
- 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.
About the Durban Chamber of Commerce and Industry NPC
Founded in 1856, the Durban Chamber of Commerce and Industry NPC is the largest member-based metropolitan chamber in Southern Africa. We represent approximately 3,000 businesses in eThekwini and beyond, ranging from multinationals to corporates and SMMEs. Since 2019, we also represent 54,000 informal sector businesses through their business associations. Policy and advocacy are at the heart of our work and we assist members with securing trade and investment opportunities locally and internationally, providing business advisory services (CIPC, Certificate of Origin, ITC checks, HR consultancy and more) across a broad spectrum of sectors, engaging thought leadership through forum webinars and other networking events, sharing business information through digital platforms, and also sourcing business insights through occasional questionnaires. The Durban Chamber advocates and influences policy decisions that affect the interests of business (tax legislation, import and export regulations and more), offering member benefits and providing information relevant to business decision-making. As a business-based and member-focused organisation, our strategic purpose is to help create a conducive economic and business environment to facilitate and promote economic growth in the region in partnership with key stakeholders.
For more info, contact the Durban Chamber on 031 335 1000 or info@durbanchamber.co.za
Our website is www.durbanchamber.co.za
NOTE TO EDITORS:
Comment attribution: Palesa Phili, CEO, The Durban Chamber of Commerce and Industry NPC
Media contacts:
Durban Chamber of Commerce and Industry NPC
Ms Zanele Khomo
Chief Growth Officer
T: +27 31 335 1000
E: khomoz@durbanchamber.co.za
