eThekwini plans R130m inner-city development company
eThekwini Municipality plans to fund a new inner-city development company with R30 million in 2027/28 and R25 million a year for the following four years, amid concerns about governance and possible political abuse.
Durban's eThekwini Municipality plans to establish a R130 million development company over the next five years to boost investment and urban renewal in the inner city. The proposal, approved by the municipality's full council, outlines a five-year financial plan with initial funding of R30 million for establishment costs, followed by an annual operating grant of R25 million each year from 2027/28 to 2031/32.
The development company will manage the city's inner-city property and land portfolio, with rental income flowing to the municipality unless otherwise agreed upon. The company is expected to generate its own income through various revenue streams, including project delivery fees and property-related income, to supplement transfers and cover operating expenses.
Critics, however, express concerns that the company could be used to benefit those connected to city officials.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
