EThekwini Municipality’s financial position has been further strengthened following an improved credit outlook issued by independent ratings agency GCR Ratings.
The agency affirmed the Municipality’s long-term AA-(ZA) investment-grade credit rating and revised its outlook from Negative to Stable.
This upgrade is a powerful endorsement of the Municipality’s strengthened financial position, improved infrastructure delivery, and disciplined fiscal management. It signals growing confidence in eThekwini’s ability to sustain investment, accelerate service delivery, and build resilience in a challenging economic climate.
EThekwini Municipality Mayor, Councillor Cyril Xaba, welcomed GCR Ratings’ decision, saying the change reflects improved infrastructure delivery, sound financial management and stronger operational performance.
“This outcome is an independent endorsement of the progress we have made in implementing the Municipality’s financial strategy, accelerating investment in critical infrastructure, and maintaining fiscal discipline through a conservative debt profile, stable collection rates, and continued access to funding despite a challenging operating environment,” said Xaba.
The Mayor commended City Manager Musa Mbhele, Chief Financial Officer Dr Sandile Mnguni, the Finance Cluster, and all municipal departments for their collective efforts in strengthening the Municipality’s financial position and reinforcing investor confidence.
Mayor Xaba described the revision of the outlook from Negative to Stable as a significant milestone for the Municipality.
“This is an important step forward for eThekwini as this outcome shows that our approach of investing in infrastructure while maintaining financial discipline is delivering results. We remain focused on improving service delivery, strengthening revenue collection, reducing water losses, addressing repeat audit findings, and building a financially resilient Municipality,” said Xaba.
While affirming the improved outlook, GCR Ratings also highlighted areas requiring continued attention, including reducing water losses, strengthening debtor collections, improving environmental sustainability, and enhancing governance and internal controls. These remain priorities within the Municipality’s long-term financial sustainability and infrastructure renewal programme.
The revised Stable outlook provides added assurance to investors, lenders, residents, and businesses that eThekwini Municipality is consolidating its financial strength while accelerating infrastructure investment to drive economic growth, improve service delivery, and build a resilient metropolitan economy.
Strong Performance In Revenue Clearance