Ethekwini Municipality Profile

Draft Integrated Development Plan 2022 – 2027

South Africa Municipalities Situation Analysis Diamond

Social Indicators

Population Demographics

Ethekwini Metro has generally a young popupation with 59.74% being youth under the age of 35. While Youth unemployment remains at Crisis Levels, the youthful population presents the Metro with an Opportunity to upskill the Youth in Skills that will drive Economic Development and the Economy of the Future.

Educational Profile

As at 2016 only 5 % of Ethekwini Metro Residents had some form of Tertiary Education. This proportion is comparatively lower than Cape Town and Johannesburg. Part of the contributory factor is Graduates moving to Metros like Johanessburg and Cape Town after graduation. There is an Opportunity to make Ethekwini an attractive place to work and live in for Graduates and in particular STEM Graduates.

boy in yellow crew neck t shirt sitting on chair

Employment Statistics

Unemployment and in particular Youth Unemployment still remains the biggest weakness and threat to the country which has reached unstainable level. Various government initiatives since the dawn of democracy to prop up employment seem not to be bearing desired outcomes. The currect projection indicates that the trend the country has seen in the past of high unemployment will continue in the forseable future.

People Living Below Poverty Line – Gini Coefffient

Just like in all other Metros the number people living below the poverty lines increased at eThekwini Metro from 2019 to 2020 partly due to the Impact of COVID – 19. All the Major Cities remain with high levels of Inequality as measured by Gini Coefficient. (City of Cape Town at 0.63, eThekwini at 0.63, eKurhuleni at 0.64, City of Johannessburg at 0.63, Nelson Mandela Bay at 0.64, and City of Tshwane at 0.62. High Levels on Racially skewed unemployment and wealth distribution to me a major contrubutory factor and needs to be addressed on Priority.

Access To Piped Water

The percentage of households with access to AT LEAST a basic level of Water

Access To Sanitation

The percentage of households with access to AT LEAST a basic level of Sanitation

aerial view of wastewater treatment plant

Access To Electricity

1995 – 2020

Access To Housing

1995 – 2020

Access To Waste Removal

1995 – 2020

Access To Waste Removal

1995 – 2020

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Access To Quality Healthcare Services

1995 – 2020

Safety and Security

1995 – 2020

Public Opinion on Service Delivery

1995 – 2020

Economic Indicators

Municipal GDP Growth

Since 2010 the eThekwini Metro GDP Growth has been less that 1 % which is quite low compared the the population growth and the GDP growth required to create Job, Reduce Poverty and achieve equitable weatlh distribution. eThekwini Metro has prioritised the following industries to drive Economic Growth and create Jobs in particular for the Youth and Vulnerable Groups

GDP Per Capita

1995 – 2020

Gender Wage Gape

The indication is that in most South Africa Major Cities the Median Income of women tends to be lower than that of men. This is partly attributable to women occupying lower level positions than man and the retail sector where majority women are employed pays less wages than other sectors.

Revenue Sources

According to StatsSA 71% of Total Municipalities Income was self generated in 2020, and 29% was from Government Grants and Subsidies as well as donations an contributions. It is worth noting that almost 60% of Total Municipal Income is from South Africa’s largest 8 Municipalities and they generated a large portion of their own Income, greatly influencing the National Profile.

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Revenue vs. Expenditure

1995 – 2020

Creditor Analysis

1995 – 2020

silver and gold coins over a black surface

Debtor Analysis

1995 – 2020

credit card on smartphone screen near debtor documents

Financial Audit Outcomes

1995 – 2020

Corruption Perception Index

1995 – 2020

Ease of Doing Business

1995 – 2020

Municipal Foreign Direct Investments

1995 – 2020

Gross Fixed Capital Formation as a % of GDP

1995 – 2020

Debt to GDP Ratio

1995 – 2020

Grant Reciepients

1995 – 2020

Skills and Training

1995 – 2020

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PESTLE, SWOT and Risk Radar

1995 – 2020

In 2022 The AG reported that local government finances remain under severe pressure due to non-payment by municipal debtors, poor budgeting practices and ineffective financial
management.

She said the financial position of 28% of South Africa’s municipalities is so dire that there is
significant doubt about whether they will be able to continue operating in the near future. This effectively means that such municipalities do not have enough revenue to cover their
expenditure; they owe more money than they have; and they can no longer pay salaries and
other obligations as they fall due, or maintain infrastructure assets such as roads and provide water and other basic services. Many of these municipalities have been in this dire financial position multiple times over the course of the administration.

The AGSA’s assessment of the financial health of 230 municipalities and 18 municipal entities based on their financial statements revealed increasing indicators of a collapse in local government finances and continued deterioration over the term of the administration.

Maluleke paints a picture of municipalities often depending on the money they receive from the national government (in the form of an equitable share) to stay afloat. In 2020-21, this amounted to R80,26 billion, up from R67,83 billion in the previous year.