Durban — Ratepayers’ associations are challenging the Durban Business Confidence Index (BCI) report that painted a glowing picture of the economic health of eThekwini Municipality despite the ongoing water crises and rampant crime.
The report, released on Tuesday, highlights a significant rise in business confidence from 55.49 to 63.01 points in the third quarter (July to September), signalling a positive outlook for the city.
Conducted by the University of KwaZulu-Natal’s Macroeconomics Research Unit and the Durban Business Chamber of Commerce and eThekwini Municipality, the report aims to assess the overall economic landscape and gauge future potential economic threats.
However, the President of the eThekwini Ratepayers and Residents Association (ERRA), Ish Prahladh, who is also a businessman, is not convinced.
“How can business confidence rise in eThekwini when consistent water challenges are hampering people’s businesses? If anything, businesses are running away from Durban. Business confidence is very low in eThekwini,” said Prahladh.
“There is also the issue of crime. To us, that report does not mean a thing.”
Asad Gaffer, chairperson of the eThekwini Ratepayers Protest Movement and chairperson of the Westville Ratepayers Association, said: “We don’t agree with that report. As we speak now, eThekwini municipality is failing to deal with the water crisis. This has affected many businesses, some have been forced to close down due to this crisis.”
“They are just shooting in the dark. We don’t agree with this report.”
On the political front, the report found stability following the formation of the Government of National Unity (GNU) and, by extension, the Government of Provincial Unity (GPU) in KwaZulu-Natal.
“These structures of government allow political parties to leverage each party’s strengths for the greater good. In addition, they ensure increased accountability and transparency, which, in turn, increase optimism and hence the confidence in the business atmosphere,” read the report.
ANC President Cyril Ramaphosa led the 100-day celebrations since the formation of the GNU outside ANC headquarters, Luthuli House, on Monday.
The report attributes the recent upturn in business confidence to several factors, including a decrease in petrol prices, stable electricity supply – thanks to Eskom’s 200 days without load shedding – and a strong rand.
Only 8.2% of surveyed participants raised concerns regarding electricity-related services in the city, a significant drop that has positively influenced the ‘electricity, gas and water supply’ sector.
“Previously, poor electricity-related service has been a challenge for business people in Durban. However, in this quarter, only 8.2% of the participants raised concerns about the electricity-related services in the city. It is not surprising, therefore, that business confidence in the ‘electricity, gas and water supply’ sector improved,” stated the report.
The report also highlights that the poor service in the eThekwini Municipality remains a concern for residents.
However, Neil Govender, who has multiple car washes in Chatsworth, said: “I have had to shut down some of my car washing businesses.”
“If you ask me now, I would tell you that the business environment in eThekwini does not inspire any confidence.”
Economist Dawie Roodt agreed with the report, saying that business confidence is improving in many parts of the country – including Durban.
“There is some positivity in the country as we have witnessed some stability after the formation of the GNU. I think we will continue to see a spike in business confidence in the coming months going into the future,” he said.
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