The City of Ekurhuleni has tabled a R71 billion budget for the 2026/27 financial year, with a strong focus on improving service delivery, repairing infrastructure, strengthening financial management, and creating economic opportunities for residents.
Delivering the budget speech at the O.R. Tambo Government Precinct on Thursday (May 28), MMC for Finance, Strategy, Corporate Planning and ICT, Alderman Jongizizwe Dlabathi, said the metro is working to rebuild public trust and stabilise the cityโs finances while improving the lives of communities across Ekurhuleni.
Dlabathi said the budget aims to move the city away from years of service delivery regression, governance challenges, and financial instability.
One of the major revelations in the speech was that the city uncovered electricity revenue losses of more than R2.5 billion during the first quarter of the 2024/25 financial year due to inadequate system controls and account manipulation involving large power users.
The city has already billed R2 billion and collected R819 million through back billing efforts.
The MMC said the municipality is also strengthening system controls and investigating the matter further through relevant government institutions.
Dlabathi highlighted that the cityโs meter reading performance improved from 84% to 97%, while a new revenue enhancement plan has been introduced to improve collection rates and financial sustainability.
The budget includes significant spending on repairs and maintenance, which has increased from R3.8 billion to R4.6 billion for the new financial year.
Where is the Ekurhuleni budget going?
Among the key allocations are:
- R1.4 billion for energy infrastructure repairs and maintenance.
- R830 million for roads and stormwater maintenance.
- R1.9 billion for water and sanitation maintenance.
- R88 million for waste disposal facility maintenance.
- R54 million for sinkhole repairs.
- R197.4 million for maintenance of municipal buildings and facilities.
MMC Dlabathi also announced a R3.3 billion capital budget aimed at strengthening infrastructure and service delivery.
Roads and transport received one of the biggest allocations, with R1.4 billion over the Medium-Term Revenue and Expenditure Framework (MTREF) to improve roads, stormwater systems, pedestrian bridges, and traffic signals across multiple wards.
“The Energy Business Unit will receive R586 million for electricity network strengthening, substations, electrification projects, and revenue protection measures,” MMC Dlabathi stated.
Water and sanitation projects received R707 million to replace ageing asbestos and steel pipes, upgrade pump stations, reinforce reservoirs, and install 60 000 water meters on unmetered stands.
The city also plans to spend R120 million to improve internal capacity for water tankers and response vehicles.
Housing development remains another major priority, with the city planning to support 11 mega human settlements projects expected to deliver 70 000 housing units. Projects in Vosloorus, Thembisa and Clayville were highlighted among those receiving attention.
New Ekurhuleni rates and tariffs proposed
On tariffs, the city proposed:
- 2% increase on property rates.
- 8.35% increase for sanitation.
- 11% increase for water.
- 3.7% increase for refuse removal.
- Electricity tariff increases in line with NERSA guidelines.
Dlabathi said the city tried to strike a balance between affordability for residents and maintaining a funded budget capable of delivering services.
The MMC also confirmed that the city will move from the current Inclining Block Tariff system to a Flat Rate Tariff system aligned with Eskomโs model. In addition, the debt rehabilitation incentive scheme will now offer 100% debt write-offs for qualifying debt older than 12 months upon approval, an increase from the previous 75%.
During the speech, MMC Dlabathi stressed the importance of economic growth, job creation and support for youth, women and local businesses.
“R24 million has been allocated to support youth technical skills development and tertiary education opportunities,” he announced.
The city also plans to establish the Ekurhuleni Development Agency with an initial allocation of R7.5 million to attract investment and support economic development initiatives.
Concluding the speech, Dlabathi said the budget seeks to build โbetter services, better lives and a better future for all communitiesโ while restoring trust in local government and ensuring sustainable service delivery.
Party reacts to the Budget Speech
Speaking for the Democratic Alliance, the Cllr. Fanyana Nkosi said the party understands that budgeting requires tough choices. However, what they cannot accept is a budget that is completely disconnected from the daily struggles of Ekurhuleni residents.
“A budget that reflects the continued failure of ANC-led governance in this City. This MTREF for 2026/27 to 2028/29 is not just unrealistic โ it is reckless and dishonest,” Nkosi added.
