Sprawling mansions in Adams Mission.
Image: Doctor Ngcobo / Independent Newspapers
The rapid development on land under the Ingonyama Trust Board (ITB) is putting immense pressure on the eThekwini Municipality’s finances and ability to service these areas.
The city’s draft annual report for the 2024-2025 financial year raises concerns about the abnormal rate of densification and growth in the city, including the rapid population growth in rural Ingonyama Trust land.
The draft annual report was available for public comment until March 6. The report highlights the contradiction brought on by the building of homes and businesses on rural land, which is accompanied by the expectation for services to be delivered, while the city is unable to generate any revenue from the area. The Ingonyama Trust Board is among the government entities that owe the municipality millions of rand. It was reported last year that the board owed the municipality in excess of R250 million.
In the section of the draft annual report that looked into the challenges faced by the municipality's water operations unit, the city said there was an abnormal rate of densification and growth within the city. “ITB land/traditional areas are being populated at an alarming rate, and properties cannot be metered,” said the report.
The report added that the challenges faced include that water supply cannot meet the demand, and there are demands for water deliveries, pointing out that high tankering costs come with almost no revenue. It stated that free basic supply was unsustainable. Other challenges faced by the unit include that bulk purchases are increasing while revenue collection is declining, with migration from urban to rural areas due to unaffordable rates and utility costs.
Mayor Cyril Xaba spoke recently about the issue, warning that the building of homes on Ingonyama land poses a serious threat to the city’s financial sustainability as it undermines revenue collection.
Engaging with members of Independent Media last week, Xaba said it was concerning that people were building large mansions in rural areas and paying very little or nothing towards some of the services they are receiving from the municipality.
He said the rapid building in these areas was making the infrastructure put there before unreliable; for instance, there would be water outages because a pipe that was installed to service a few modest homes was now serving a very large community and very big houses.
The mayor said they are committed to safeguarding the city’s financial position.
“We are actively engaging provincial and national departments to settle their outstanding accounts. We remain committed to supporting residents and businesses experiencing financial distress while safeguarding the city’s financial sustainability. So, we will continue to enforce the credit control policy, intensify disconnections where necessary, address illegal connections, and ensure accurate billing for services consumed.”
City councillors said the issue should be addressed. Democratic Liberal Congress (DLC) Leader Patrick Pillay said the issues of poverty and unemployment are affecting people from all sides. “The non-payment for services from the Ingonyama Trust land is really concerning and requires urgent attention. The DLC is of the strong view that the Provincial Department of KZN needs to come on board in addressing these matters of service delivery arrears and payments to the city on the Ingonyama Trust,” said Pillay.
DA councillor Thabani Ndlovu said the concerns raised in the city’s annual report regarding developments on Ingonyama Trust land highlight a long-standing challenge that the municipality has failed to adequately resolve.
“The lack of an effective agreement between eThekwini Municipality and the Ingonyama Trust remains a major obstacle. While the city continues to provide essential services such as water to these areas, it generates little to no revenue in return from both residential and business developments located on this land.”
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