President Cyril Ramaphosa says eThekwini has moved from the brink of decline to early recovery but warned that stabilisation must now give way to structural economic reform if the metro is to achieve catalytic growth.

Addressing stakeholders at the Presidential eThekwini Working Group meeting at the Inkosi Albert Luthuli International Convention Centre on Tuesday, the President said tangible progress had been made over the past two years.

“When we first met in early 2024, we were navigating uncertainty. Confidence was fragile. Service delivery challenges were acute. Today, there are tangible signs that the decline has been arrested, that stability has taken root and that recovery is underway,” the President said.

Business confidence at record high

Central to the President’s address was the sharp improvement in business sentiment, with the latest Durban Business Confidence Index recording its highest level since inception.

President Ramaphosa attributed the turnaround to stronger political leadership, improved administrative stability and coordination across all three spheres of government, supported by business and labour.

Tourism figures underscore the recovery. During the recent festive season, nearly 1.2 million visitors travelled to eThekwini. Occupancy rates climbed to 77%, while tourism spend reached R2.7 billion.

“Durban is once again a destination of choice,” the President said.

Manufacturing confidence also rose by nearly 16% quarter-on-quarter in a metro that hosts the country’s second-largest manufacturing sector and is intrinsically linked to the Port of Durban.

Infrastructure and water reforms underway

President Ramaphosa welcomed the municipality’s approval of a Partnerships Framework in September 2025, which creates a transparent system for public-private collaboration on infrastructure and catalytic projects.

He stressed that water security remains foundational to economic growth. Projects such as the Southern Aqueduct Upgrade are under construction, while bulk dam levels remain stable.

However, he acknowledged that challenges persist. Non-revenue water stands at 55% far above acceptable benchmarks, representing lost revenue and capacity.

“While we applaud this progress, stabilisation is not the same as transformation,” he cautioned.

Environmental management, roads and water services remain areas of concern, with two-thirds of surveyed business leaders still doubtful that service delivery complaints may not be resolved timeously.

Second phase to focus on economic growth

The President announced that the second phase of the Presidential eThekwini Working Group will pivot towards economic development and reform.

Through the Partnerships Framework, government aims to unlock infrastructure investment at scale, reduce red tape in development planning and reform cost structures that deter investors.

The Department of Trade, Industry and Competition is expected to play a greater role in tackling illicit trade, dumping and industrial vulnerability.

Addressing derelict and hijacked buildings in the city centre will also be prioritised, with the President framing the issue as one of redevelopment and restoring dignity rather than enforcement alone.

To strengthen capacity, the National Business Initiative will support the establishment of an Independent Public-Private Partnership Office within the City Manager’s office.

From precipice to threshold

President Ramaphosa described the extension of the Working Group requested by social partners as both a vote of confidence and recognition that the recovery journey is not complete.

“Two years ago, eThekwini stood at a precipice. Today, it stands at a threshold,” he said.

While green shoots are visible in tourism numbers, revenue performance and infrastructure upgrades, the President warned against complacency.

“We must not confuse early recovery with guaranteed success. The work ahead requires discipline. It requires courage. It requires partnership,” he said.

He concluded by reiterating the goal of restoring eThekwini as a gateway to the continent and a beacon of resilience, partnership and shared prosperity.

Originally posted on SAnews.gov.za