The City of Ekurhuleni has tabled a R71b budget for the 2026/27 financial year, with a strong focus on restoring service delivery, rebuilding infrastructure, improving financial stability, and stimulating economic growth.

Delivering the budget speech at the OR Tambo Government Precinct on May 28, MMC for Finance, Strategy and Corporate Planning and ICT, Jongizizwe Dlabathi, said the metro was committed to rebuilding public trust and accelerating visible service delivery.

Major financial recovery efforts

Among the most significant revelations was the uncovering of more than R2.5 billion in electricity revenue losses during the first quarter of the 2024/25 financial year.

According to Dlabathi, the losses were linked to account manipulation, deletions, and ineffective billing systems involving large power users.

“Two billion rand has already been billed and R819m recovered through back billing,” he said, adding that investigations into possible criminal conduct and corruption would follow.

The city also reported improvements in meter reading performance, increasing from 84% to 97%, while efforts to strengthen revenue collection and prevent further leakages continue.

Tariff increases announced

Residents will face moderate tariff increases from July 2026, although the city says it attempted to cushion consumers against rising living costs.

The proposed increases include:

• 2% increase on property rates

• 11% increase on water tariffs

• 8.35% increase on sanitation

• 3.7% increase on refuse removal

• 0% increase on burial and cemetery tariffs for Ekurhuleni residents

• Electricity tariff increases aligned with approved national guidelines

Dlabathi described the tariffs as a balance between affordability and sustaining service delivery.

Repairs and maintenance budget increased to R4.6bn

A major highlight of the budget is the significant increase in repairs and maintenance spending, which rises from R3.8b R4.6b.

The city will spend:

• R1.4b on electricity infrastructure maintenance
• R830m on roads and stormwater systems
• R1.9b on water and sanitation maintenance
• R104.3m on streetlight maintenance
• R54m to repair sinkholes
• R197.4m for municipal buildings and facilities

Dlabathi said the increased spending demonstrates the city’s commitment to preserving infrastructure and improving frontline services.

Roads, water and electricity prioritised
The metro has allocated a R3.3b capital budget for infrastructure development.

Key allocations include:

• R586m for energy infrastructure upgrades

• R707m for water and sanitation projects

• R1.4b for roads and transport infrastructure

• R97.7m for community services

• R88.2m for community safety

• R150m for ICT upgrades and cybersecurity

The city also plans to establish its own asphalt batching plant to speed up pothole repairs and reduce reliance on contractors.

Housing and informal settlement upgrades

The budget includes major investments in housing and informal settlement projects aimed at delivering 70 000 housing units through 11 mega developments.

Projects prioritised include:

• Vosloorus Ext 9

• Thembisa Ext 27

• Clayville Ext 45

In addition:

• R38.5m allocated for reblocking four informal settlements

• R6.8m for relocation of 6 000 households

• R9.8m for planning projects benefiting nearly 89 000 households

Economic development and job creation

To stimulate investment and economic growth, the city will allocate R7.5m towards establishing the Ekurhuleni Development Agency (EDA).

The city also committed to supporting youth, women, and small businesses through procurement opportunities and reviewing barriers that prevent small enterprises from accessing municipal tenders.

Dlabathi acknowledged South Africa’s unemployment crisis, with the national unemployment rate currently at 32.7%, and called for greater collaboration to drive economic growth and entrepreneurship.

Cleaner recruitment and EMPD expansion

The city confirmed that plans to recruit 700 permanent cleaners and 290 EMPD officers had been delayed, but the process will now be fast-tracked.

Recruitment of cleaners and internal security officers is expected to begin in July 2026.

The city also plans to procure 12 additional waste compactor trucks and between 20 and 25 new EMPD operational vehicles.

Debt relief measures expanded

In a move aimed at assisting struggling residents, Ekurhuleni announced changes to its Debt Rehabilitation and Incentive Scheme.

Residents may now qualify for 100% debt write-offs on debt older than 12 months, up from the previous 75%.

The city revealed that R2.8 billion in debt write-offs had already been implemented by the third quarter of the current financial year, largely benefiting indigent households.

Anti-corruption warning

Dlabathi issued a stern warning to municipal officials and service providers involved in corruption and fraudulent billing activities.

“We will be cracking down on them and imposing the harshest consequences,” he warned.He stressed that the city would maintain a zero-tolerance approach to corruption, maladministration, and misuse of public funds.

Concluding the speech, Dlabathi said the budget was designed to restore confidence in local government and ensure reliable service delivery.

“We are tabling a pragmatic budget that seeks to advance better services, better lives and a better future for all communities,” he said.