The Economic Development and Planning Committee of eThekwini Municipality has recommended more than R20.7 million in funding across five economic support programmes, following its meeting held today, 19 August 2026. The recommendations target the chemicals, automotive, digital economy, innovation and food and beverage sectors, and are aimed at strengthening key industries, supporting small businesses, unlocking investment and creating sustainable jobs across the city. All recommendations remain subject to approval by the Executive Committee (EXCO) and Full Council.
The Committee welcomed eThekwini’s strong employment performance, with the City recording a year-on-year increase of 90,000 jobs and outperforming other metropolitan municipalities in the latest labour market results. It also noted progress in unblocking 20 strategic investment projects across the City, with half already fully resolved, supporting efforts to accelerate private investment and economic growth.
CHEMICALS FUNDING TO STRENGTHEN INDUSTRIAL COMPETITIVENESS
The Committee recommended continued support for the Durban Chemicals Cluster through a new Memorandum of Agreement and R3.58 million in funding for the 2026/27 financial year. The programme supports the City’s Sakh’iTheku strategy and focuses on localisation, enterprise development, skills development, innovation and competitiveness.
Over the past three years, 40 black-owned small and medium enterprises unlocked R6.4 million in new opportunities, generated R19.2 million in collective cost savings and trained more than 550 operators and leaders. The programme also completed 15 firm diagnostics and delivered three localisation and green growth initiatives. The continued partnership will strengthen market access, supplier development, environmental sustainability and the competitiveness of local businesses.
SMARTXCHANGE TO EXPAND DURBAN’S DIGITAL ECONOMY
The Committee recommended a new one-year Memorandum of Agreement with SmartXchange, supported by approximately R4 million for the 2026/27 financial year. SmartXchange is a priority intervention in Plan One of the Integrated Development Plan and supports eThekwini’s vision of becoming a leading smart hub in Africa.
To date, 273 enterprises have graduated from the programme, creating 1,390 permanent jobs and 2,860 casual jobs. Its accelerator programme has supported 25 companies since 2013. The renewed programme will strengthen technology entrepreneurship, digital business development, market access and employment, including planned support for township businesses through a partnership with Vodacom and an Innovation Support and Contact Centre in KwaMashu.
AUTOMOTIVE CLUSTER FUNDING TO ENSURE GLOBAL COMPETITIVENESS
The Committee recommended continued support for the Durban Automotive Cluster, established in 2002, through a new one-year Memorandum of Agreement and approximately R3.236 million for 2026/27. The programme supports skills development, sustainability, decarbonisation, small and medium enterprise development, localisation, exports, investment and industry collaboration.
Over the past three years, the cluster’s initiatives have leveraged approximately R135 million in financial support, reached more than 1,000 participants, engaged over 450 employees and business leaders, and supported 15 companies through capacity building. The programme also reported R25 million in operational efficiencies and approximately 40% growth among participating businesses in selected areas.
INNOVATE DURBAN PARTNERSHIP TO EXPAND THE INNOVATION ECOSYSTEM
The Committee recommended a one-year collaboration with Innovate Durban, supported by R7.4 million for 2026/27. The partnership will support youth, women, township entrepreneurs and early-stage businesses through innovation challenges, incubation, acceleration, mentorship, prototype development, market validation, intellectual property support and access to early-stage funding.
It will also support the operation and expansion of innovation laboratories, including the Innovation Co-Lab at the uMkhumbane Entrepreneurial Support Centre, and proposed satellite laboratories in township and rural areas. The initiative is expected to strengthen the pathway from ideas and prototypes to commercially viable enterprises and position Durban as a leading innovation hub.
FOODBEV SETA FUNDING TO TAKE 55 ENTREPRENEURS FROM TRAINING TO BUSINESS SUSTAINABILITY
The Committee recommended amending the existing Memorandum of Agreement between eThekwini Municipality and the Food and Beverages Sector Education and Training Authority (FoodBev SETA) to incorporate a R2.526 million grant for an Entrepreneurial Aftercare Programme.
The programme builds on the New Venture Creation Programme, which trained 100 unemployed beneficiaries, 86 of whom successfully completed it. The new intervention will provide 55 qualifying AgriBusiness entrepreneurs, previously trained through the programme, with 12 months of structured support, including business profiling, mentoring and coaching, compliance support, financial management, bookkeeping, internal controls and supplier development — helping them strengthen sustainability, access markets, improve operations and grow their businesses.
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