Ekurhuleni’s back to basics budget ushers in a new era of financial sustainability and inclusive growth
by the DA Caucus in Ekurhuleni
The Democratic Alliance (DA) in Ekurhuleni welcomes the back to basics budget delivered by the MMC for Finance and Economic Development, Cllr. Fana Nkosi, during a Special Council Meeting on the 25th of May 2022 at the OR Tambo Governance Precinct in Germiston.
The Budget reflects the values of the governing Multi-Party Coalition, which are steadfast in its commitment to bettering service delivery and improving the City’s financial health as a foundation for launching economic growth. Crucially, the budget is inclusive in the sense that it accommodates the needs and aspirations of all Ekurhuleni residents.
The City of Ekurhuleni has a number of contextual challenges, namely the inheritance of a financially strained Metro from the previous administration, a sluggish economy suffering the effects of the Covid-19 pandemic, along with structural inequalities resulting in poverty and unemployment. More recently, residents have been suffering from increasing food and petrol prices, mainly due to Russia’s invasion of Ukraine.
MMC Nkosi is honest about these challenges and succeeds in outlining a budget that is realistic and responsive to the needs of residents. After just six months, the Multi-Party Coalition has already made significant strides in improving the financial health of the City. This is reflected in the recent improvement of the City’s investment rating from junk to stable, as well as improving the City’s cash-on-hand reserves from 14 to 21 days.
As part of the City’s local economic recovery, MMC Nkosi highlighted a number of objectives to enable economic development and inclusive growth within five years, which include R50-billion in investment, the establishment of 2500 SMMEs and cooperatives development, and R1-billion in procurement opportunities for township economy development, community enterprise development and empowerment and business regulation. In addition, the City intends to generate R125-million in revenue from the leasing of township hubs and business licenses and permits, as well as a further R200-million from the Ekurhuleni Fresh Produce Market operations, facilities and Municipal Farm Release. Ultimately, these initiatives hope to create 70 000 work opportunities that span across the private and public sectors.
From a service delivery perspective, the budget places emphasis on those areas that are most vulnerable, which include energy security. Residents have borne the brunt of a lack of maintenance to key infrastructure, compounded by increasing amounts of cable theft and vandalism, as well as the additional burden of load shedding, leading to frustrating power outages. As such, the DA welcomes the 39% increase in capital expenditure towards energy for 2022/23, as well as a significant proportion budgeted for repairs and maintenance. This includes a 90/10 split between the provision for electrical network repairs and that of streetlight repairs. The introduction of 47 renewable Independent Power Producers from 2024 onwards will also supplement the electricity supply from Eskom.
Potholes and the poor state of Ekurhuleni’s road infrastructure are another major concern of the City’s residents. The DA thereby welcomes the allocation of R370-million allocated to the Department of Roads and Stormwater for repairs and maintenance including the patching of potholes. An additional R283-million has been allocated for asset renewal, which is critical for maintenance and is also welcomed.
These are just a few of the budgetary interventions announced by MMC Nkosi that supplement the overall plan to secure financial sustainability across the City’s Departments. Overall, the DA applauds the overall positive budgetary efforts by the Multi-Party Coalition and the reallocation of funds strategically to align with the needs and aspirations of the City’s residents. The Party is confident that this budget achieves the right balance in ensuring targeted expenditure to improve service delivery while ensuring that the City’s financial stability is not only sustainable but improved. As such, Ekurhuleni’s residents can look forward to a new era of development that will lead to a prosperous and thriving Metro
Cllr. Ivan Naidoo
DA Party Whip for Finance in Ekurhuleni
061 545 3372
