EThekwini mayor Cyril Xaba delivers opening remarks at the Presidential eThekwini Working Group(PEWG) Media Round Table on Thursday.
Image: Siyabulela Duda / GCIS
The Presidential eThekwini Working Group has set its sights on boosting the economy as its next area of focus in the municipality. A group of experts to look into this next step is being set up and will meet in the coming weeks to discuss its terms of reference. The business community said a lot has been achieved over the past two years, and the next target is to focus on the economic development of the city.
Yesterday, the eThekwini Mayor, Cyril Xaba, briefed the public on the achievements to date including addressing water challenges, infrastructure improvements, and investment in key industrial areas in the city.
Andrzej Kiepiela, coordinator of the KwaZulu-Natal Growth Coalition, said the next step is economic growth. “Over the last two years, we have realised we have to concentrate more specifically on economic development. Therefore, the Director-General in the Ministry of Tourism was asked by the President’s Office to lead that team of this stream; there are several streams working on the city.”
“We have had preliminary meetings, worked out priorities of what we should concentrate on, and we are meeting in the coming weeks for workshops to agree on strategy, who will participate, and what the outcome will be over what period of time. “There is no question that since it was formed, there have been a number of marked improvements in terms of doing business in KwaZulu-Natal. The city has been cleaned up and started to function; tourism has bounced back, and logistics are improving. There are big development projects that have emerged that will stimulate the economy in terms of tourism,” he said.
Kiepiela said even though the city is not yet where it should be, it is in a much better position than two years ago. “The business community is feeling much more positive about the future. Among the challenges that remain is the provision of electricity for developments, and there is still a need to address the issues of red tape,” he concluded.
Mayor Xaba also stated that significant progress has been made in stabilising the city and improving infrastructure.
“Working together, we have been able to stabilise the city, and we are beginning to see positive results, as demonstrated by the sharp increase in business confidence and the revitalisation of the tourism sector. “During the 2025 festive season, the city recorded approximately 1.2 million visitors, with accommodation occupancy increasing to 77%, up from 72% in 2024. Tourism spending during this period also rose from R2.2 billion to R2.7 billion, representing a 24% increase.
“The city was recently ranked 14th among the world’s best places to travel in 2026 by Time Out Worldwide, demonstrating that our tourism sector is firmly on an upward trajectory. Our efforts to rejuvenate the inner city are well on track as we continue to rehabilitate major road networks within the CBD,” said the mayor.
The mayor spoke of the investment already being made to shore up the city's economy. “Our teams are working tirelessly to support 61 designated industrial areas comprising approximately 27,000 businesses. These businesses generate around R9 billion annually and contribute more than 50% of the city’s total revenue base.
He said they are undertaking significant infrastructure improvements in Prospecton, where substantial investments are being made in roads, electricity, water, and sanitation infrastructure. The mayor stated that as a result of this work, Toyota has committed R10 billion towards expanding its investment in the area. This industrial node alone generates more than R1 billion annually in rates revenue for the city.
“Without the collaboration of all stakeholders through the PeWG and the District Development Model, these achievements would not have been possible,” he said. He touched on the investment in water, pointing out that a key project that could address a bulk of the city’s challenges could start operating by the end of the year.
“We are also making significant strides with the Lower uMkhomazi Bulk Water Supply Scheme. Last week, we introduced the contractor who will commence with the second phase of the Water Treatment Works. This is the final phase of the R11 billion project, which includes a storage dam, a water abstraction point, and a water treatment plant.”
He said upon completion, the project will produce 100 megalitres of water per day. Of this amount, 75 megalitres will be supplied to eThekwini. This volume will be sufficient to supply all areas in the south, from Isipingo to uMkhomazi.
The water currently being supplied to these areas will then be redirected to the central, northern, and outer western regions to further stabilise supply. He added that although the project was delayed by legal processes, Umgeni- Thukela Water has committed to ensuring that, by the end of next year, eThekwini will begin receiving water from this scheme.
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