Durban and consequently KwaZulu-Natal are facing an “existential economic crisis” brought on by the Covid-19 pandemic, the crippling riots in 2021 and devastating floods earlier this year, prompting businesses to team up with the eThekwini Metro to help pull the province back from the abyss.
Thanks to efforts led by the Durban Chamber of Commerce and Industry (DCCI), the private sector has already contributed about R22m for security, while that for infrastructure is expected to be billions of rand.
eThekwini Mayor Mxolisi Kaunda joined executives from the DCCI at a media briefing on Tuesday to give an update on the metro’s efforts to curb poor service delivery, improve water and sanitation infrastructure, and manage the electricity crisis.
Newly elected Durban Chamber of Commerce and Industry President Prasheen Maharaj said statistics show the situation is dire and that Durban and KwaZulu-Natal are in the grips of an “existential economic crisis”.
“Rather than standing on the sidelines and constantly complaining, business has thrown its might and capital behind the city to avert the crisis,” Maharaj said.
DCCI CEO Palesa Phili told Business Day the city and province can’t afford further damage and disinvestment. “There is high risk of losing this peak tourism season if firm commitments to [the] execution of repair work is not done in the next few weeks,” he said, adding that rain was needed “to clear sewage in the rivers and lagoons before the beaches can be ready for swimming”.
The collaboration confirms that the city doesn’t have sufficient funds. to deal with the situation. The DCCI and other private stakeholders have previously proposed alternative resourcing models but they were stymied by the government regulations that make it difficult to fast-track their efforts.
“The city infrastructure is in a state of disaster, yet response is subjected to normal procurement and supply chain processes not consistent with the disaster urgency required,” Phili said.
Legacy of woes
Durban’s economic woes began with the Covid-19 lockdown, and just as it was showing signs of recovery the metro was crippled by riots and looting in July 2021 that claimed almost 200 lives and set the Durban economy back by more than R70bn. Floods in April dealt a further a body blow to the beleaguered provincial economy, with 459 people dying and damage estimated at R16bn.
Kaunda said repairs to sanitation infrastructure is about to start after the metro received a conditional grant of R184m from the National Treasury. But the funds are inadequate and the city has had to reprioritise its budget allocations to manage repairs. The estimated cost is R160m for pump stations and more than R300m for water treatment works alone to ensure all the city’s beaches are opened in time for the December holiday season.
Kaunda said the public safety is paramount, and the quality of the water is regularly tested by independent institutions since the floods damaged several pump stations and wastewater treatment plants that popular tourist beaches.
“We are pleased to report that central beaches that are open, including the Bay of Plenty, Ushaka, North Beach and Wedge Beach. In the south, Umgababa, Umkhomazi, Brighton and Treasure beaches are now open,” Kaunda said.
“We are appealing to all visitors to continue to make Durban their home during the summer holidays. Durban is known for its warm and beautiful weather, and we are looking forward to welcoming visitors for a safe and joyous festive season.”
Independent power producers
Plans to procure power from independent producers to alleviate load-shedding were progressing well, Kaunda said. Further collaboration with the private sector includes the provision of CCTV technology throughout the city to clamp down on crime.
“We are pleased to report that through our joint efforts, Toyota and Sappi have resumed operations and all employees are back to work. As a result, Sappi was able to retain its expansion investment of R7.7bn which was unveiled by President Cyril Ramaphosa last month,” Kaunda said.
Repairs to the oThongathi Water Treatment Plant that was damaged in the floods are scheduled for completion by end of October, bringing relief to residents north of Durban who have been without running water for months, he added.
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