Perceptions about the eThekwini Metropolitan Municipality, in relation to business, have slightly improved, but business leaders in Durban do not have confidence in the City.

This was revealed in the Durban Business Confidence Index (BCI) Report for the third quarter of 2023, which was compiled by the macroeconomics research unit of the University of KwaZulu-Natal's School of Accounting, Economics and Finance.

The report is a collaborative project between the eThekwini metro and the Durban Chamber of Commerce and Industry.

It aims to determine the current economic atmosphere and the future direction of commerce, to monitor growth, and to present an advanced warning of turning points in economic activity.

The index is informed by data collected from the business community.

The index ranges from 0 to 100, where less than 50 implies a lack of confidence in the Durban economy, equal to 50 means the business situation is normal/neutral, and greater than 50 denotes confidence in the economy.

The further below 50 the index is, the greater the lack of confidence in the municipality.

The report was authored by Harold Ngalawa, Ntokozo Nzimande and Adebayo Kutu of the university's research unit.

Compared to the second quarter of 2023, the index has improved slightly from 37.28 to 44.68, but still well below par.

"Durban business leaders have yet again expressed pessimism about the City's current and future economic climate," the report said.

Since the inception of the Durban BCI, in 2022, business executives and entrepreneurs in eThekwini "have consistently expressed a lack of confidence in the Durban economy", the report added.

The business captains highlighted poor service delivery as a particular source of concern.

Among the various services provided by the municipal authorities, electricity was singled out as the largest source of pessimism.

"This may reflect frustrations arising from load shedding and the resulting consequences in the production of goods and provision of services," said the report.

"Scholars generally agree that a reliable and sustainable power supply is a necessary condition for economic growth. Not surprisingly, the real output growth in Durban has been stagnant."

Of the surveyed businesspersons, 78.4% stated that, if they or anyone else reported a "poor service delivery" complaint, it was unlikely the authorities would attend to it.

This was an improvement from 84.6% in the second quarter of 2023.

"The proportion of the surveyed participants expressing unhappiness with service delivery by the municipality remains relatively high."

In the construction sector, confidence significantly dropped - from 25.45 index points in the second quarter to 15 index points in the third quarter of 2023.

"This could partly be attributed to the rise of the so-called 'construction mafias, and the inability of the government to deal with them," said the report.

News24 previously reported that the construction mafia was slowly gaining respect as the industry had begun accepting business forums in sub-contracting.

The construction mafia, which grew out of militant groupings in KwaZulu-Natal, around 2014, and subsequently spread to all nine provinces, typically follows a modus operandi in which armed men arrive on the site, purporting to represent local businesses, and demand a 30% cut of the contract value.

Ailing eThekwini

eThekwini has been battling to provide consistent basic services to residents, as unplanned power and water outages are now commonplace.

The City has been flagged in a SA Human Rights Commission (SAHRC) report, together with several other municipalities, for violating human rights in relation to water supply.

The SAHRC report - "KZN Water Inquiry" - which investigated the state of water and its management in the province between 15 August 2022 and 19 August 2022, was released in September.

News24 previously reported that the Department of Economic Development and Environmental Affairs in the province had opened criminal cases against eThekwini's manager of water and sanitation, Ednick Msweli, the former City manager, Sipho Cele, and the current City manager, Musa Mbhele.

The charges relate to the contravention of the National Environmental Management Act in Eiderwood Close and Phoenix as well as the Isipingo, Winklespruit and Umhlanga lagoons.

The City has since announced that water utility Umngeni-Uthukela Water (UUW) is set to step in to oversee the operations and maintenance of 10 wastewater treatment works.

UUW will work for 12 months, with an option to extend their contract to 24 months.