Durban City hall, the headquarters of the ANC-EFF-IFP run eThekwini Municipality.
Image: FILE
ACTIVISTS and a ratepayers association believe the business confidence in Durban is far grimmer than the 56% scored by the city, according to the latest Durban Business Confidence Index report issued recently.
The report (BCI) compiled by the University of KwaZulu-Natal’s Macroeconomics Research Unit, showed a drop in business confidence from 60% in the final quarter of 2024 to 56% in the first quarter of 2025.
While technically the figure was still above the neutral 50% mark, critics believed it was overly optimistic and dangerously disconnected from the everyday struggles of businesses and residents.
Ish Prahladh, president of the eThekwini Ratepayers and Residents Association (ERRA), said, “I don’t know how they arrived at over 50%. This city is crumbling, with water issues, crime, and constant service delivery failures. Business confidence is nowhere near what they claim it to be.”
Ahmed Mohammed, a Durban CBD business owner, agreed with Prahladh's submission.
“Power outages, crime, protests—this is the daily reality. I’m on the ground, and I don’t feel any confidence. Many businesses have already closed shop because of it,” he said.
The president of Abahlali BaseMjondlo, Sbu Zikode, said: “Due to rampant corruption, today the city cannot even provide water for its citizens despite the more than enough rain it receives. The city has big enough dams to provide its residents with enough water. It has amongst others, the Inanda and Hazelmere dams, etc.
“However, the city prefers to award contracts to water trucks owned by business people associated with politicians and sometimes local traditional leaders. Instead of fixing and maintaining its water infrastructure.”
The report attributed the dip to worsening service delivery under the ANC-EFF-IFP-led eThekwini Municipality alliance, with complaints about poor services going largely unanswered. 70% of surveyed businesses said it’s unlikely the city responds to complaints promptly—up from 57.6% in the previous quarter.
Environmental management, including sewerage, solid waste, and parks, topped the list of poorly rated services, followed by roads, water supply, and public safety.
Additionally, other issues cited in the report were related to waste collection and public safety.
“A majority of the respondents (30%) reported that management of the environment (sewerage, solid waste, and parks) is the poorest service provided by the authorities, followed by roads (24%), water (18%), public health (16%), and public safety (police, fire and ambulance) (12%),” read the report.
The report, produced in collaboration with the Durban Chamber of Commerce and the city itself, also warned that national-level political instability, especially within the ANC-led Government of National Unity, was creating policy uncertainty and that trickled down to provincial and municipal coalitions.
The ANC, leading the ten-party GNU, has been feuding with the DA over the contentious issue of the increase of the Value Added Tax (VAT) by 0.5%, as announced by Finance Minister Enoch Godongwana.
Economist Dawie Roodt chimed in, explaining that the BCI is a reflection of business sentiment based on factors like safety and economic stability. “A score above 50 suggests confidence. Below 50, there’s a lack of faith in the economy.”
The municipality’s spokesperson, Gugu Sisilana, said, “Currently departments are reporting to various oversight committees where they account for performance as well as present measures to improve performance.
" These oversight committees include the Executive Committee of Council, the Municipal Accounts Committee, the Audit Committee and the quarterly Performance Review Committee, which is chaired by the City Manager for the Administration, and also a Performance Review Committee, which is chaired by the mayor for the political component."
WhatsApp your views on this story at 071 485 7995
DAILY NEWS