R24 Billion Infrastructure Investment over the past 5 years will remain our legacy - Inside Metros
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
MAY 2021 | Ekurhuleni: Budget Speech
SPECIAL BUDGET EDITION
R24 Billion
Infrastructure Investment
over the past 5 years will remain
our legacy
Nkosindiphile Xhakaza, Ekurhuleni MMC for Finance and Economic Development
Photo by: Eddie Mtsweni
1.
MAY 2021 | Ekurhuleni: Budget Speech
Budget a reflection of the will
of the people
The City of Ekurhule-
ni’s fifth and final bud-
get is ultimately an ex-
pression of the wishes
of its residents. These
wishes are first ex-
pressed to politicians
as they campaign to
be given a mandate to
govern through vot-
ing. The wishes are
then more formally
expressed through
consultations for the Mzwandile Masina, the Executive Mayor of the
development of the City of Ekurhuleni.
Integrated Develop-
ment Plan (IDP) which 2023/2024. the city’s spending on
eventually informs the items ranging from 29
budget. Masina thanked the reservoirs and pipe-
various political parties lines, electrification of
This was the reflec- who make up coun- squatter camps, the
tion offered by Execu- cil for offering a stable upgrade of roads and
tive Mayor Mzwandile administration that stormwater drainage
Masina, who present- was able to execute its as well as improvement
ed the IDP in council plans throughout its in public transport, in-
ahead of MMC for Fi- term of office. cluding the introduc-
nance, ICT and Eco- tion and expansion of
nomic Development “ The legacy of this the Bus Rapid Transit
Nkosindiphile Xhaka- council will be the System, Harambee.
za, who tabled the R24,9 billion we spent Masina said that the
budget for the Medi- on infrastructure to im- infrastructure spend-
um-Term Revenue and prove service delivery ing in the region is now
Expenditure Frame- and ultimately the lives slowing down, with
work (MTREF) of the of our people,” Masina the first administra-
three-year period to said reflecting on tion preparing to wind
2.
MAY 2021 | Ekurhuleni: Budget Speech
down its term of office get speech, Xhakaza city’s ability to respond
and focusing on main- also paid tribute to var- to the Covid 19 pan-
tenance spending. ious stakeholders, in- demic “At this point I
cluding the media but am proud to point out
He noted that inte- ultimately, once again, that we are handing
gral to this process communities who are over a City whose fi-
is the consultation at the centre of ser- nances and systems
that takes place first vice delivery noting are healthy, and we
through ward commit- that the council tried can only hope that the
tees around the time to avail itself through new administration
of the Mayoral Strate- forums like business continues from where
gic Lekgotla and then breakfasts, imbizos, we left off and even do
through constituencies roadshows and media better.”
such as ratepayers as- engagements.
sociations, business Both Masina and
chambers, religious “We have run our race. Xhakaza attributed the
and youth formations We have maneuvered city’s success to good
as well as NGOs be- through unprecedent- and clean governance,
fore the finalisation of ed times and terrains which culminated in
the budget. and we were able to the metro receiving a
keep the ship afloat,” clean audit.
In concluding his bud- Xhakaza said of the
Photo by: Eddie Mtsweni
From right, ANC Chief Whip Ebrahim Motara, Council Speaker Patricia Khumalo,
Executive Mayor Mzwandile Masina, MMC Finance and for Economic Development
Nkosindiphile Xhakaza
3.
MAY 2021 | Ekurhuleni: Budget Speech
Xhakaza Tables R46 billion Budget As Ekurhuleni
Positions Itself For Post Covid Recovery
Photo by: Eddie Mtsweni
Nkosindiphile Xhakaza, Ekurhuleni MMC for Finance and Economic Development and
his team ahead of presenting the 2021/2022 budget.
The City of Ekurhuleni velopment, who de- million from the cur-
must position itself for livered the City’s R46 rent year
a post Covid19 eco- billion budget for the
nomic recovery even 2021/2022 financial Xhakaza presented his
with the threat of a year and the Medium budget in the back-
third wave looming Term Revenue and drop of Covid19. Last
and a vaccine roll out Expenditure Frame- year, the pandemic
that is only starting to work (MTREF) for the wiped off R2 billion in
gather pace in order to next three years to revenue collected as
tackle high unemploy- 2023/2024. The bud- business ground to a
ment and persistent get is made up of R 42 halt and rate payers
inequality. billion operational ex- lost jobs during the
penditure, which is up national lockdown.
This was the message R 790 million from the Xhakaza says revenue
from Councillor Nko- current financial year has now recovered to
sindiphile Xhakaza, while capital expen- about 90% collection.
the MMC for Finance, diture is R 4,08 billion,
ICT and Economic De- which is down R 490 He said that the im-
4.
MAY 2021 | Ekurhuleni: Budget Speech
pact of Covid19 has nue Act, the Human City has responded by
been that the City has Settlement Develop- reprioritising spend-
seen its grants from ment Grant and the ing from areas such as
national and provincial Municipal Infrastruc- travelling and refresh-
government slashed. ture Grant which have ments but they have
These are grants from now all been cut. also had to cut on es-
the equitable share in sentials such as infra-
the Division of Reve- Xhakaza said that the structure spending.
5.
MAY 2021 | Ekurhuleni: Budget Speech
Nkosindiphile Xhakaza, Ekurhuleni MMC for Finance and Economic Development
presenting the City’s R 46 billion budget
Photo by: Eddie Mtsweni
The City announced municipalities. infrastructure during
that there will be no in- this term of office.
crease in assessment The City is to spend R This, now had to slow
rates. Water tariffs will 5,7 billion to maintain down due to Covid 19
increase by 8% while its pro poor package and the end of term of
tariffs for sewer purifi- of giving services to government with the
cation will increase by the poorest residents, focus moving to main-
8% for domestic con- including 50kw/h of tenance spending.
sumers and 17% for electricity, free 6 kl of
industrial users. Tariffs water and free burials Xhakaza gave a devas-
for waste removal will for indigent residence tatingly frank overview
increase by 7%, which of South Africa’s eco-
Xhakaza said was “ The challenge we had nomic prospects.
caused by the labour was to ensure that we
and transport input do not cut the core of “South Africa entered
costs associated with service delivery,” said the Covid19 pandem-
waste removals and Xhakaza ic era after several
landfill management. years of low econom-
Tariffs for electricity will One of the key areas of ic growth. While eco-
increase by 14,59% as spending for the City nomic growth has
advised by the Nation- has been on infrastruc- been weak already,
al Electricity Regulator ture including housing, the hard lockdown
of South Africa (NER- water and electricity, induced the fall in ex-
SA) after granting Es- clinics, pools and pub- ternal demand, which
kom a 17,8% increase lic transport. The City has severely impacted
for bulk purchase by spent R24,9 billion on tourism, trade, and in-
6.
MAY 2021 | Ekurhuleni: Budget Speech
The City has upgraded more than 40 informal settlements over the past five years
vestment,” he said. Xhakaza pointed out “As a collective, we
that structurally high must endeavor to nar-
He noted that al- unemployment and row the gap between
though the lifting of outdated infrastructure private hope and pub-
lockdown restrictions remains a high risk lic despair by refusing
has showed moderate which has constrained to view the youth un-
growth, investment is economic growth over employment challenge
expected to recover time. as some insoluble
only slightly. anomalies due to our
“Structural challenges myopic focus on the
He said despite having and weak growth have problem of the day.”
a substantially large, undermined progress
industrialised econo- in reducing poverty He noted Foreign Di-
my, South Africa re- and has emboldened rect Investment as
mains “a dual economy informality in certain a key ingredient to
with one of the highest township sectors such unlocking growth.
persistent and inter- as spaza shops, liquor “However, in the post
generational inequal- retailing and transpor- Covid19 era, foreign
ity rates in the world. tation thus raising the direct investment will
It is common-cause risk of normalization be a critical element
that the South African of informal business to propel econom-
economy faces chal- practices.” ic growth and create
lenges, particularly jobs.” Xhakaza said
lower GDP growth at But amid the gloom, and outlined what the
0.8% and youth unem- Xhakaza called for a city is doing to position
ployment at 54.7%.” search for solutions. itself to attract Foreign
7.
MAY 2021 | Ekurhuleni: Budget Speech
BRT expansion as part of the Integrated Public Transport Network ( IPTN) receives
R327 million for 2021/2022 financial year and R 1billion in the next three years.
Direct Investment. of the SEZ, the ORTIA DSV has established
Precinct 1 which re- their Sub-Saharan Af-
Through its ten-point quires R3 billion invest- rica’ headquarters in
economic plan the City ment is at an advanced the City boasting a
has initiated several stage and has already staff complement of at
projects that will drive secured R2 billion in least 10,000 people.”
growth in the years inward investments. The City has to date
and decades ahead. Land preparation and invested R800 million
Two such projects are designs are underway in infrastructure to lay
the development of the in other parts of the groundwork for the
Aerotropolis and Spe- zone. Aerotropolis.
cial Economic Zones,
which is already bear- The City has managed Xhakaza emphasised
ing results. to attract the Teraco that good governance
Data Centre in Isando, lies at the heart of the
The O.R. Tambo SEZ, which is the largest in government’s success
is a multi-site develop- Sub-Saharan Africa. to execute service de-
ment that consists of “ This facility enables livery, and reiterated
several industry-spe- most streaming ac- the recent clean audit
cific precincts to be tivities such as Netflix finding by the Audi-
developed in phases and many others who tor General, to unani-
over a 10 to 15-year depend on this infra- mously applause those
period, Xhakaza said structure. Furthermore, in the council cham-
this has served as an the world’s fifth largest bers. The clean audit
economic stimulus at a Global Transport and comes after three years
cost of R15 billion. Part Logistics Company of unqualified Audits
8.
MAY 2021 | Ekurhuleni: Budget Speech
and found no irregular, to describe the city as three years, with R1
wasteful or fruitless ex- a “well managed and billion in the first year.
penditure. “ This clean thriving” institution.
audit is clear proof that Xhakaza announced The social cluster,
this City is committed that the infrastructure which includes envi-
to good governance cluster, which com- ronment and waste
and it is a vital step prises of human settle- management and
in restoring the confi- ments, water and san- emergency services
dence of our people in itation and energy will receives R1,3 billion for
this government.” said receive R7,8 billion over the MTREF and R481
Xhakaza. the next three years million for the 2021/22
with R2,5 billion allo- financial year.
Xhakaza also an- cated for this financial
nounced that earlier year. Of this amount The City recently re-
this month, the Nation- R2, 4 billion will go to leased 11 commercially
al Treasury assessed human settlements viable farms, repre-
the performance of the over three years, with senting 1,508 hectares,
City in the four areas. R716 million allocated and valued at R40
These are Institutional in the first year. million to Ekurhuleni
Arrangements, Finan- farmers for a period of
cial Health, Financial The Economic and nine years and eleven
Governance and Ser- Governance cluster, months.
vice Delivery. Treasury which includes eco-
found the City to be nomic development, “ This we did because
‘sound’ on all four pil- has been allocated R3 we believe that farm-
lars which led Xhakaza billion over the next ing will impact posi-
Photo by: Eddie Mtsweni
Nkosindiphile Xhakaza, Ekurhuleni MMC for Finance and Economic Development and
his team ahead of presenting the 2021/2022 budget.
9.
MAY 2021 | Ekurhuleni: Budget Speech
Photo by: Eddie Mtsweni
tively on our economy it explore opportunities Ekurhuleni has much
while at the same time for revenue enhance- to offer the continent,
this move should assist ment. It aims to en- starting with the stra-
us in dealing with the hance revenue by R5 tegic asset of the OR
issue of food security.” billion over the medi- Tambo International
um term, starting with Airport, the largest in
Ekurhuleni’s credit rat- R1 billion in the current Sub Saharan Africa,
ing and outlook from financial year. Xhakaza for the movement of
Moody’s for 2020/21 is said that examples of people and goods to
A3, which is the upper revenue enhancement facilitate intra-regional
medium grade of the projects could be a pri- trade on the continent.
ratings and is high- vate player installing He noted that Ekurhu-
er than South Africa’s commercial Wi-Fi for leni has become more
sovereign and above which users pay and cosmopolitan with
the dreaded “junk sta- revenue is shared with the inward migration
tus”. “ This means that the city. The City also of people from neigh-
the City will obtain has a Revenue War bouring countries such
funding at favourable Room which looks at as Mozambique, Zim-
rates but at a lower improving revenue ef- babwe, and Malawi.
level” the MMC said. To ficiencies and closing He would like the city
mitigate this potential off any revenue leak- to evolve into a melting
negative outlook, the ages. pot of cultures.
City has reduced its
appetite to borrow for Xhakaza started off his He also paid tribute
its capital programme address by acknowl- to Charlotte Maxeke,
from around R3 billion edging the celebration whose life and work is
to R1.25 billion over the of Africa Day, which being commemorated
next three years. took place the day this year which marks
before he was due to 150 years since her
The City has invited table the budget. Af- birth.
private partners to help terwards he noted that
10.MAY 2021 | Ekurhuleni: Budget Speech
A budget of hope for a
difficult time
Ekurhuleni City Manager Dr Imogen Mashazi
I feel honoured and senior managers. for a burial site.
privileged to accept
the Budget and Inte- To be able to marshal We have also managed
grated Development financial resources to commit a capex
Plan (IDP) for the worth R46 billion in the spending of R4,08 bil-
2021/22 to 2023/2024 current economic cli- lion, which is down by
Medium Term Reve- mate has been nothing R490 million from the
nue and Expenditure short of remarkable. I current financial year.
Framework (MTREF). am particularly proud This reflects the con-
The Municipal Sys- that as a city, we man- strained fiscal environ-
tems Management Act aged to maintain our ment we are operating
number 32 of 2000 pro poor package of in. This capex budget
empowers me, as the R5,7 billion to ensure allows us to maintain
City Manager, to ac- that deserving resi- our infrastructure, on
cept the budget, once dents who need help which we spent R24,
approved by Council, the most receive it in 9 billion over the past
and lead its implemen- the form of free water, four and a half years.
tation together with my basic electricity, refuse
team of officials and removal and no cost A feather in the cap
11.MAY 2021 | Ekurhuleni: Budget Speech
Ekurhuleni Executive Mayor Mzwandile Masina City Manager Dr Imogen Mashazi
of this administration, upon by stakeholders. R42 billion, up by R790
as led by the Execu- Moreover, the office million, is our spending
tive Mayor Councillor of the Auditor Gener- on our employees not
Mzwandile Masina, al also found that the only through salaries
has been the achieve- performance against but through benefits
ment of a clean audit predetermined objec- and incentives that al-
after three years of tives was proper and lows them to pursue
unqualified audits and in compliance with the study opportunities. A
the elimination of un- laws and regulations. motivated workforce
authorised, irregular, This outcome is the is our most important
wasteful and fruitless result of cooperation asset in the delivery
expenditure. between our team, as of quality services for
led by myself and our residents of the city.
The Auditor General Group CFO Kagiso Le- I would like to pay
affirmed that the city’s rutla, the council and tribute to all our staff
quality of reported fi- its Audit Committee. I members.
nancial information would like to take this
is up to standard. He opportunity to thank Finally, let us re-
further noted that it all of them. mind ourselves that
is credible, free from this budget has been
errors, omissions, or An important aspect drawn up and deliv-
material misstatement; of our opex spending, ered in the wake of
and can be relied which now stands at the Covid19 pandem-
12.MAY 2021 | Ekurhuleni: Budget Speech
ic, which is now set to able as treatment and staff at our Customer
enter its Third Wave in now vaccination sites Care Centres for serv-
South Africa. Covid has against the Coronavi- ing as an important
taught us to be agile rus. We aim to main- barrier to keep us safe
and responsive in our tain our standards of while continuing to de-
planning, by re-prior- the ideal clinic and in- liver services.
itising spending to re- crease the proportion
spond to the greatest of 24-hour, 12 hour and To our residents, as
health and economic Saturday service clin- President Cyril Rama-
crisis of our time. ics. phosa has confirmed
that the country has
Covid19 has also re- I would like to take this been returned to alter
minded us that crisis, opportunity to thank Level 2 , let us be vig-
like opportunity, has to all our front line work- ilant in ensuring that
find you prepared. Our ers, not just our health we wear our masks
primary healthcare care workers but also at all times, sanitise
facilities, in which we our emergency work- our hands, keep so-
have invested signifi- ers and Metro Police cial distance and avoid
cantly over the years, officers, our cashiers crowded places.
have proven invalu- and other front line
13.MAY 2021 | Ekurhuleni: Budget Speech
Over R10 billion of The City’s Procurement Spend-
ing Benefited Women and Youth
Photo by: Eddie Mtsweni
Women and youth have been among the biggest beneficiaries of the City of Ekurhuleni’s
procurement spending and other programs
Women and youth diphile Xhakaza, the Xhakaza said in the
have been among the MMC for Finance, ICT past four-and-a-half
biggest beneficiaries and Economic De- years, R11.4 billion of
of the City of Ekurhu- velopment identified the City’s procurement
leni’s procurement youth unemployment, went to locals. Of this,
spending and other which currently stands an amount of R10.4 bil-
programs over the at 54,7% and mostly lion was spent on pro-
past five years of the affects 15 to 24-year- curement from wom-
current term of office olds, as an issue that en-owned companies.
and they are expected the country must tack- Xhakaza said about
to continue to benefit le with urgency. For R19.5 billion worth of
from more allocation its part, the City has goods and services
to health, economic directed procurement, from companies that
and social services in skills development, are owned by people
the council’s last bud- and other training considered to be pre-
get, which was tabled programmes to main- viously disadvantaged,
recently. ly benefit the youth, and R5.7 billion was
women, and people spent on companies
Councilor Noksin- with disabilities. owned by the youth.
14.MAY 2021 | Ekurhuleni: Budget Speech
Young people benefit- ment Fund impacting
ed in numerous other on 183 local business- A disturbing feature of
ways over the Coun- es, mainly owned by South Africa’s youth
cil’s term of office. women, young people unemployment land-
An amount of R238 and people with dis- scape is the high prev-
million was directed abilities” Xhakaza an- alence of young people
to the Youth Learn- nounced. who are not in employ-
er Contractor Devel- ment, education or any
opment Programme, One of the City’s signa- form of training, the so-
which benefited 204 ture programmes was called NEETs, of which
young people. A fur- to increase the alloca- they are estimated to
ther R172 million was tion for bursaries from be about 4 million in
invested on Youth In- R 10 million to R 100 South Africa. To reach
ternship and Work million per year when this category of unem-
Readiness Placement council took office. In ployed youth, the city
Programmes reach- the period since, an invested R8.7 million
ing more than 6,400 amount of R510 million in the Learnership and
young people. “105 has been invested in Skills Development
million people have the Ekurhuleni Com- Programmes touching
been committed in the munity Bursaries and 185 unemployed youth
implementation of the Scholarship Scheme and R20 million went
Ekurhuleni Communi- to the benefit of over to the Extended Pub-
ty Enterprise Develop- 9,000 youngsters. lic Works Programme
15.MAY 2021 | Ekurhuleni: Budget Speech
Photo by: Eddie Mtsweni
which benefits mainly, three years, starting R5 million in the new
although not exclu- with R90 million in the financial year, will help
sively, the youth. new financial year, to the city maintain its
the Sports, Heritage, high-quality health
“We have an obligation Recreation, Arts and and community friend-
to guide the growth Culture Department. ly health services to
and development of The money will go to women and the youth.
our young people as the construction and “We have an obli-
the future of the City. refurbishment of pub-
gation to guide
Not only that, but a lic swimming pools
healthy lifestyle has and libraries across the growth and
also become a ma- the city. Xhakaza also development of
jor area of focus,” said noted that allocation our young people
Xhakaza. He noted to health services, at as the future of
an allocation of R262 R14 million over the the city”
million over the next next three years and
16.MAY 2021 | Ekurhuleni: Budget Speech
Restoring dignity through
decent houses
Affording over 49
000 individuals and
their families decent
homes, offering a
further 25 000 ser-
viced stands for peo-
ple to build their own
homes while making
conditions in squat-
ter camps bearable
by electrifying more
than 40 informal set-
tlements. These are
some of the achieve-
ments listed by Lesi-
ba Mpya, the MMC for
Human Settlements
within the City of and half years, as well have pioneered over
Ekurhuleni. as over the next three the last five years and
years as tabled in the Urban Renewal re-
“I am proud that we latest budget. Of the ceived R902.3 million.
have helped the poor City’s spending of
restore their dignity R24,9 billion on infra- “In our efforts to pro-
through the ownership structure over the past vide housing and prop-
of a formal settlement,” four and half years, er human settlements
Mpya said on the side- Human Settlements for our people, the Hu-
lines of the City’s Bud- received R4.42 billion, man Settlements De-
get Speech in Germis- or 17%. partment is allocated
ton recently. R2.4 billion [over the
Of this amount, R991.5 next three years] and
Human Settlements million went to Mega R716 million for the
has been a recipient Settlements, the coming financial year”
of a significant portion high-density settle- The MMC for Finance,
of the City’s spending, ments that the city and ICT and Economic De-
both over the past four Gauteng province velopment Councillor
17.MAY 2021 | Ekurhuleni: Budget Speech
Nkosindiphile Xhaka- taking on any new proj- water pipe into an in-
za announced at the ects but will continue formal settlement. This
tabling of this year’s those in the pipeline at is part of incrementally
budget. various stages ranging improving conditions
from feasibility studies in informal settlements.
Xhakaza also an- to those that are ready
nounced that an for sod turning and At the start of its term,
amount of R87 million construction. He said the city set itself a tar-
will go to land acquisi- that the amount allo- get of providing 100
tion and R187 million to cated this year will be 000 housing units
mega projects in areas spent on infrastructure through mega set-
such as Tembisa Ext such as water and san- tlements and 49 000
25, Esselen Park and itation and electricity, serviced stands. Mpya
John Dube in Duduza. which is necessary to said that partly due to
Urban renewal proj- develop a settlement. Covid19, both through
ects in Vosloorus, Wat- budget cuts and the
tville and the Kathorus Mpya said that during lockdown it brought,
receive a cash boost this financial year, the the City has been able
of R67 million. Nation- City will be pioneer- to complete 49 000,
al government has ing new technology to but expect significant
provided R64 million provide ablution facili- progress in the finan-
in Human Settlement ties to informal settle- cial year to start in July.
Development Grant. ments, which recycles The City also deliv-
water used for sanita- ered 25 000 serviced
Mpya said that his de- tion since you cannot stands, about half what
partment will not be bring a permanent it hope to.
18.MAY 2021 | Ekurhuleni: Budget Speech
Produced by Inside Education and the department of Communica-
tions and Brand Management of the City of Ekurhuleni.
19.You can also read
