This report has been published by Stats SA. The results presented are for quarter 2 in the year 2025.
1. FINANCIAL IMPLICATIONS
R5,149,609has already been approved by eThekwini Municipality as a 22.5% co-funding contributionfor phase 4 of the IESP in eThekwini Municipality in terms of a CouncilResolution of March 2025 (refer to AnnexureA). This co-funding iscommitted by the EconomicDevelopment Directorate [m1] (formerly a joint commitment by the Business SupportTourism and Markets Unit and the Economic Development Unit prior to therestructuring of the Municipality’s organogram).
Anadditional amount of R4,920,738 has been approved by the KZN Department ofEconomic Development, Tourism and Environmental Affairs (EDTEA) which will bemade available by means of a direct transfer to the Municipality for purposesof phase 4 of the IESP based on a funding proposal submitted by PPT. TheMunicipality has received a letter from EDTEA confirming that this funding isavailable and will be transferred to the Municipality in due course (refer to Annexure B).
Thebalance of the required co-funding in the amount of R12,816,805 will be madeavailable either by the DSBD or the Jobs Fund with funding applications lodgedwith both and under consideration.
Intotal, 77.5% of the total funding requirement will thus be provided by externalfunders, bringing the total bringing the total funding value of phase 4 toR22,887,151. This might be increased to R39,626,407 should JF funding also beapproved, in addition to the DSBD, which will reduce the Municipality’scontribution to 13%.
Thesefigures exclude VAT and all disbursements, noting that, as per SARSInterpretation Note 39: “Grants from public authorities to registered PBOs arezero rated as the activities that PBOs carry out are in the general publicinterest”.
Funding breakdown for IESP phase 4 ineThekwini:
co-funder
Funding value
%
eThekwini Municipality
5 149 609
22,5%
KZNEDTEA
4 920 738
21,5%
DSBD
12 816 805
56,0%
total>
22 887 151
100,0%
eThekwini>
5 149 609
22,5%
External>
17 737 542
77,5%
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