‘A Responsive City Working with Agility to

Restore Service Delivery to the People’.

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STATE OF THE CITY ADDRESS DELIVERED BY THE EXECUTIVE MAYOR OF
EKURHULENI ALDERMAN NKOSINDIPHILE XHAKAZA IN THE COUNCIL
CHAMBER AT THE OR TAMBO GOVERNEMENT PRECINCT
30 APRIL 2024

The Speaker of Council – Cllr Nthabiseng Tshivhenga

Whip of Council – Alderman Jongizizwe Dlabathi
Leader of Government Business – Cllr Andile Mngwevu
Premier of Gauteng - Hon. Panyaza Lesufi
MEC for Cogta in Gauteng - Hon. Mzi Khumalo
Leaders of Political Parties in Council
Fellow Councillors
The City Manager – Dr Imogen Mashazi
Senior Management and Staff of Council
Former Mayors
Former Speakers
Former Chief Whips
Distinguished Guests
Members of the Media
And most importantly, the Community of Ekurhuleni

Good morning! Molweni! Sanibona! Dumelang!

It is an honour to stand here today and take our people into confidence about the state
of this great city, the City of Ekurhuleni. I am extremely humbled yet confident that the
message we bring today will instill hope to many who have been living in optimism that
transformation is coming.

Madam Speaker, before I can go any further, I wish to pay the city’s respects to our
fallen struggle icon and former colleague, Alderman Connie Mashigo, whom we laid
to her final resting place in Tsakani on Freedom Day. This was a gallant selfless leader
of our people whose life was centered around the socio-economic emancipation of her
people. Ald Mashigo’s life is well documented in the struggles of our people, especially
in and around Ekurhuleni, and indeed, rest well my comrade for your undying spirit
shall forever live on. We thank the Mashigo family for having borrowed us this giant
servant of the people.

We also pay tribute to all recently fallen councillors and former councillors of our city.

This State of the City is delivered 30 years into our democracy. Therefore, this speech
must give fresh hope to the millions of our people who have continuously looked up to
us to deliver a better life for all the citizens of Ekurhuleni. As we reflect on the past 30
years as a country, we must take the best lessons forward and demonstrate that we
have learnt from our past.

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Three days ago today, we listened to the President of the Republic Hon. Matamela
Cyril Ramaphosa telling the whole world about the struggles of our people, and what
the country has achieved in the 30 years of the democratic dispensation. We heard
how the current government has transformed the lives of millions of South Africans by
building millions of houses, providing electricity and clean water to many South
Africans that never enjoyed these services for years, created millions of job
opportunities and provided quality health care to all – and many more.

Indeed, this story is a good one considering that a majority of our people did not have
these basic necessities before due to an ill-conceived system of governance –
apartheid; which was designed to benefit a minority few who for many years
considered blacks to be inferior humans than them.

THE HISTORY

Madam Speaker, in terms of our city, this year marks 24 years of existence. We must
appreciate the role of our founding executive mayor the late Bavumile Vilakazi and all
the other executive mayors who led before me, including the late Duma Nkosi (may
his soul rest in peace), Ntombi Mekgwe, Mondli Gungubele and Mzwandile Masina to
name some of them.

The past 24 years have been characterised by unmatched dedication on the part of
various administrations of the City. This has seen radical transformation in the lives of
ordinary people, particularly those in townships and informal settlements who have
historically been hurled at the margins of existence.

A quick reflection on the road traversed by the great city tells you that in the period
between 2000 and 2011, the city successfully managed a seamless amalgamation of
nine towns and 11 administrations without the disruption of services despite the
fragmented infrastructure as each administration had and controlled their own. This
merger was the first of its kind for our country and remains the only one to have taken
place thus far. However, in terms of infrastructure beneath the soil we remained
fragmented.

The 2011-2016 period heralded the introduction and launch of the Aerotropolis
economic trajectory, which articulated a clear roadmap in terms of investment
attraction, growth and job creation. The decision to introduce this trajectory was
informed by the economics of the region which demonstrated that with the
manufacturing sector declining due to the economic downturn of the late 2000s
Ekurhuleni, which is a manufacturing hub of the province, needed to hatch a new
strategy to revive the economy and create jobs. This period also saw the
administration of former Mayor Gungubele put systems of governance in place in order
to propel the city forward. Aerotropolis is anchored around the airport economy. This
era also marked the beginning of a radical spatial transformation as the city geared

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itself to take the lead in the continent’s new industrial revolution, and the
synchronization of service delivery infrastructure and systems.

This administration was also pivotal in starting the digital revolution of the city with the
introduction of the automation of the service delivery mechanisms which led to the
introduction of a fully-fledged customer relations management call centre.

Fast-forward to the 2016 – 2021 period, with all the ground work having been done
and the necessary policies put in place, this administration decided it was time to
accelerate service delivery, especially to the poorest of the poor – hence the birth of
the ‘Pro-Poor’ programme of action. This administration took a more aggressive
approach to service delivery and infrastructure development. In an effort to realise its
targets, this administration set the following targets, among others:

• Improve service delivery through visible and impactful programmes supported

by Capex spending;
• Electrification of all informal settlements;
• Construction of 100 000 housing units and the provision of 59 000 serviced
stands;
• Make informal settlements more habitable through upscaling of services;
• Promote the preservation of water usage and continue investing in water
infrastructure to ensure security of supply;
• Strongly pursue the issue of an Ekurhuleni University;
• Construct the Ekurhuleni Power Station backed by alternative and renewable
energies;
• Launch an app for communities to report service delivery challenges; and
• Launch the BRT and expand the IPTN.

Most of these priorities were realised while others are still under implementation due
to the nature of the work that needs to be done. Among the key achievements was the
bursary increase to the required R100m per annum benefitting almost 9 000
deserving young people, ablution facilities in informal settlements for the past seven
years are at 1:5 from 1:10; a total of 16 mega projects including Essellen Park,
Leeuwpoort, Brakpan Old Location, John Dube, Daggafontein were kickstarted
yielding a total of 42 773 units, while 26 543 serviced stands were rolled out. We further
electrified 40 informal settlements while the Ekurhuleni University project remains on
track, with the President of the Republic endorsing the project.

It was also during this era that the implementation of a massive water security
infrastructure project, which is an initiative to construct 29 reservoirs and towers as a
means of providing water supply security was implemented. This R1.2bn project,
which includes Africa’s biggest water tower, had been initiated by the fourth
administration. In this regard, we shall be officially opening two of these before the end
of June as part of the Mayoral 100-day programme. We must, however, emphasise
the need to accelerate the completion of the remaining facilities.

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During the term 2016 to 2021 an amount of R24.9 billion was invested on
infrastructure projects alone. Some of these were:

• Energy – R3.13 billion (Electrification of informal settlements, and the

construction of sub stations);
• Water and Sanitation – R2.96 billion (Construction of reservoirs and
towers, metering, pipeline, sewer upgrades);
• ICT – R2.56 billion (Fibre rollout, digital city, and the ERP rollout);
• Transport – R2.16 billion (Four taxi ranks were built and the IPTN
investment); and
• Environment – R1.02 billion (parks and cemeteries).

While the story of the city looked good and promising until the middle of 2021, sadly
the outcome of the local elections in November 2021 took us through an unfortunate
18-month path of service delivery collapse under the so-called ‘The DA-led Multi
Party Coalition’.

We saw service delivery taking place in mainly the suburbia and very little if any in the
townships. Roads were riddled with potholes, there was a collapse of waste removal
services and service delivery protests became the order of the day. Having witnessed
this disaster, this time last year, the ‘People’s Government Coalition’ came together
and said enough is enough.

THE NEW ERA

This intervention heralded the beginning of an era of recovery and rebuilding of the
institution and the state machinery while restoring the culture of service delivery in all
areas. However, this programme was short-lived due to a desperate need to
strengthen leadership, governance, and the agility to deliver services was identified.

It was on the 11th of April when this august house bestowed the leadership baton to
the current Executive Mayor unopposed. Enkosi kakhulu, we are greatly and deeply
honoured!

This development marked the beginning of a new era in terms of the type of
government that would take the city’s agenda forward. This government that I am
honoured to lead, is clear that political stability will be the cornerstone for the remainder
of the current term of office which will be characterized by quality, sustained and
equitable service delivery.

It is for this reason that we are adopting the following: ‘A Responsive City Working
with Agility to Restore Service Delivery to the People’.

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Madam Speaker,

The next few years will be characterized by the fast-tracking of service delivery
projects, job creation and a massive drive to attract investment. We have already
identified Six Key Pillars that will drive our administration for the remaining years of
the current term of office. These are:

• Provision of quality and sustainable services to all residents;

• Rebuilding of a strong financial base to support the city’s
development;
• Conducting essential repairs and maintenance of public facilities;
• Investment on critical infrastructure in partnership with the private
sector;
• Economic development growth and job creation with a special focus
on the Aerotropolis and the revitalisation the manufacturing sector;
and
• Preserving Good and Ethical Governance.

Madam speaker, it must be understood that everything we do is anchored on the

Growth and Development Strategy 2055. This strategic document guides us to:

• To deliver reliable, affordable,

and sustainable services and ensure improved infrastructure maintenance.
• : To build a clean,
capable, and modernised local state.
• Re-Mobilise: To achieve social empowerment: To promote safer, healthy,
and socially empowered communities.
• To protect the natural
environment and promote resource sustainability.
• To protect the
natural environment and promote resource sustainability to create an enabling
environment for inclusive growth and job creation.

Public Consultations

On the 28th of March 2024, the draft IDP and Budget for 2024/25 financial year was
tabled to Council for noting and Council resolved that the draft IDP and Budget be
subjected to further consultation with communities and stakeholders across the city.
This was for the purpose of presenting the budget proposals and soliciting further
comment and input on the draft plans before financial approval by Council in May
2024.

It is evident from our interaction with communities that the state of our roads and
stormwater infrastructure in general need urgent attention, majority of comments and

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inputs are centered around the construction of new roads, sidewalks, new stormwater
drainage systems, pedestrian bridges and speed humps. This is for both urban and
township wards including the informal settlements. We also acknowledge that proper
roads and stormwater is not only critical to enhance economic development but also
to simplify mobility and the interconnectedness within our residential areas.

Mme Pinky Mosima in KwaThema, we will without any delay investigate what action
needs to be taken to address the road and stormwater problems that are being
experiencing at corner Shabangu and Nkosi roads. Efforts will also be undertaken to
fast-track the rebuilding of a bridge between Winnie Mandela and Hospital View in
Thembisa 2. This will also be the case with identified roads challenges in Thembisa 1
and 2, potholes in Berlinka Street in Pomona and all the other parts of our city.

We also acknowledge your points, Mr Shaki Ngwenya in Benoni ward 30 and Mr Achie
Rakgakalane in ward 81 KwaThema, on the continuous monitoring and feedback on
the implementation of IDP funded projects. We are currently working on strengthening
our project management capabilities as well as feedback mechanism to communities
on developments in general.

We have realised over time that service delivery feedback to communities and
stakeholders is inadequate, sometimes resulting in communities being denied the
opportunity to monitor the services that the city is rendering through various ward-
based programmes and projects. For us to address this and further deal with issues
as raised by Mkhonzeni Hlongwane of Thokoza ward 52, when he highlighted that lack
of feedback results in uncertainty and ultimately service delivery protests.

This administration will immediately be introducing various community and

stakeholder feedback mechanisms including rekindling the Mayoral Izimbizo,
periodic customer care service delivery engagements and mass community meetings,
over and above the bi-weekly service delivery outreach programme(s). In fact, we
envisage to have the first Mayoral Imbizo in the next week.

SUSTAINED SERVICE DELIVERY AND INFRASTRACTURE MAINTENANCE

Madam Speaker, this government will pull out all the stops to ensure that there is
seamless delivery of services to our people. We also clearly understand that the
biggest contributor to this agenda is sound, reliable and dependable infrastructure.
The billions that we have channeled into infrastructure development over the years
was a deliberate move because we understand that proper roads, a reliable electricity
grid and uninterrupted water supply are the cornerstone of making our city more livable
while being the best place to invest and do business.

During the recent IDP/Budget consultation process energy, water and sanitation
services took centre stage. The majority of residents across the city more particularly
in Springs, Benoni, Kempton Park and Thembisa, just to name a few, have voiced

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their unhappiness about these. We take this as a mandate and recommit to ensure
that these will immediately be processed to inform our programme of action in the
short- to medium-term.

I now turn to the thorny issue of Energy. At the outset Madam Speaker, in the city of
Ekurhuleni we have electrified 97% of households and the remaining 3% are already
receiving urgent attention so they also get to enjoy the service.

In this regard, 2 500 households in the following informal settlements: Emandleni

phase 4; Tokyo phase 4; Palm Ridge Extension Somalia phase; and Alliance
extensions 6, 7, 8 and 12 will soon enjoy electricity for the first time. We shall also
install 30 high mast lights throughout the city and upgrade the Vulcania substation.

We will soon be introducing a campaign called Khanyisa Mhlali, which is aimed at a

vast rollout of electrification projects throughout the city, in particular streetlights
maintenance and the rollout of high mast lights. Details of this programme will be
shared in due course.

Good news for the people of KwaThema is that after the current leadership recently
visited the burnt down substation in the township, their transformer which was badly
damaged by the fire almost a year ago has been repaired and will soon be
recommissioned.

The city is aware of the electricity troubles that have engulfed Kempton Park in the
past couple of years is receiving our urgent attention. Having recently assessed the
situation and impact on the ground, this leadership is happy to inform our residents in
that part of the city that major progress has been achieved in replacing the old oil-
reliant cable of the 70s with a new 66kv cable between the Main and Cargo
substations. This will stabilize the grid and ensure that we keep the lights on at all
times. This project will be completed before the end of the financial year.

Fellow councillors, we have numerous problems in the area of electricity. Apart from
ageing infrastructure, load shedding is wreaking havoc to our infrastructure and the
economy, while thugs have escalated their vandalism of municipal infrastructure to
another level. Just recently I read an article in the press that vandals now steal and
smoke fibre cables – a clear demonstration that the challenge we face is huge. We
need all hands on deck to curb this problem.

Turning to the issue of the Independent Power Producers (IPPs), this process is
steaming ahead. There is no doubt in our minds that there is a need for stable energy
supply at the present moment. The IPPs will sell electricity to the city at a discounted
tariffs and reduce the city’s reliance on the national grid by 27%. We expect to integrate
the first-generation units by January 2025. Already, a process to release farm
Zestfontein for the IPPs is in motion.

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Our intention is that we must be robust on the issue of IPPs in order to ensure the
stability and development of our economy and job creation. Also important is the fast
tracking of the baseload programme in order to create a much more resilient economy.

Moving to the area of Water and Sanitation, we continue to provide the best water to
drink in the country. Testament to this is the recent Blue Drop Award which we
received from the Department of Water and Sanitation.

As we continue in our quest to provide quality water to our people and keep the taps
running, we are mindful that this cannot happen without reliable infrastructure. In this
regard we are steaming ahead with the massive infrastructure rollout programme
which will not only ensure that we have a reliable water network, but will also ensure
water security through the construction of new reservoirs and towers which is a key
component of the Aqua Leap programme.

The massive infrastructure rollout will also stabilize the flow of water in high lying areas
like Tsakani, Duduza, Primrose and others, which have been the worst hit by water
issues in the recent past.

On the issue of non-revenue water, we have come a long way from 40.3% in 2013 to
30.9% currently and now gunning for less than 30%. Actually, last month non-revenue
water was 29.07% which clearly demonstrates that we have the potential to achieve
the below 30% target. Furthermore, at the recent National Water Summit our non-
revenue water strategy was adopted for implementation in other municipalities across
the country.

We will also be putting meters in unmetered stands and replace old and leaking water
meters.

To tackle the issue of sewer spillages, we will be upgrading and replacing ageing
sewer and water pipes in identified areas, and priority will be given to areas such as
Moleleki, Etwatwa, Impala Mine, Dal Fouche and Palm Ridge – which have historically
been seriously affected for some time.

Madam Speaker, at the heart of our urban landscape lies a challenge of the
management of municipal solid waste. Our approach to this critical function is one of
precision and efficiency. Every week, our arsenal of refuse collection trucks embarks
on planned operations, reaching out to over seven hundred thousand (700 000)
service points catering for over 1.5 million households, inclusive of businesses.

These vehicles do more than just transport waste; they are the lifeblood of our
commitment to cleanliness and public health, ensuring that the by-products of our daily
lives are seamlessly integrated into the formal waste management system. To uphold
our solemn pledge of maintaining a clean and healthy city, we are proud to announce

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the commissioning of seven state-of-the-art waste compactor trucks in the coming
weeks to reinforce the quality of services rendered.

With time, this calculated move will minimise our reliance on rented vehicles, thereby
achieving greater operational control and cost-efficiency. To ensure the highest
standards of safety and responsibility, we will be fitting our heavy vehicles with
advanced camera systems. This measure is part of our commitment to mitigate
against negligence and reckless driving.

With time, we are set to introduce an innovative approach to our waste management
system. QR codes will be strategically placed on our municipal bins, serving as a key
tool for gathering essential data. This technology will enable us to optimise collection
routes and accurately measure performance, ensuring that our refuse collection
services operate at peak efficiency.

The declining availability of airspace presents serious fiscal and operational

challenges in the immediate future. Immediate action is not just advisable, it is
imperative to mitigate these risks. We must acknowledge that as more landfills reach
capacity, the inevitable rise in system costs will become a driving force behind waste
reduction.

In addition to these strategic interventions, we are excited to launch the Clean-Your-

Kasi Campaign. This initiative encompasses comprehensive clean-up drives across
our township communities, directly involving residents in the beautification of their
neighbourhoods.

Municipalities are on the front line of the climate change crisis. We confront the harsh
realities of climate change daily and this is impacting on waste management, land use
and water supply, among others.

We will further ensure that all cemeteries and open spaces are well maintained, and
the grass cut. Tree pruning will also be carried out regularly.

In the area of Roads and Stormwater, our tarred road network totals 8 281km. We
will build from here, in response to the strategic imperatives of developing an
accessible public transport network and the establishment of the integrated urban
core, another 8.85km of new road – with special focus in the eastern region.

One of the major priorities for this government will be the construction of Tsavo Road
in Etwatwa. We will also be paying attention to the stormwater drainage system
upgrade especially in the area of Vosloorus, and the rehabilitation of roads and
patching of potholes will be fast-tracked through the Sivala Ama Pothole programme.

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The reconstruction of Thembisa bridges, particularly Flint Mazibuko Drive in Hospital
View, which has become a stumbling block for communities trying to access the
Thembisa and Zamokuhle hospitals, is also one of our key priorities. A contractor is
already on site and work will get underway soon. The project will be completed by the
end of the year.

Madam Speaker, when it comes to Transport Planning, we shall be accelerating the

rollout of the IPTN and Harambee. This will see the construction of additional
dedicated bus lanes, streetlights, curbside stops and walkways. We will also be
acquiring 24 additional buses to expand the Harambee footprint throughout the metro,
and the refurbishment of the public transport system.

The Harambee programme has been a marvelous success story. In March 2021 the
passenger figures recorded stood at 358 727, fast-forward to March 2024 and we
recorded an impressive 1.9 million passengers. This significant patronage shows that
the city is indeed providing a safe and reliable public transport system, that is
affordable to all citizens.

Fellow Councillors, many of our people who are living in informal settlements and
backyard dwellings are still desperate for decent Human Settlements. It is for this
reason that the previous administration committed to deliver 100 000 housing
opportunities and provide 59 000 serviced stands. This decision also came about after
a thorough assessment of the informal settlement environment of the region – which
at the time confirmed 119 informal settlements with 164 000 structures and 600 000
inhabitants.

Earlier in the speech I articulated the achievements of that administration in realizing

these targets, but for some reason things have slowed down tremendously and the
mega projects seemed to have come to a standstill. The city will be engaging the
national and provincial human settlements departments in order to resuscitate all
these projects, including John Dube, Daggafontein, Vosloorus Extension 9 and
Thembisa Extension 25. We will also be paying attention to the hostel redevelopment
and refurbishment project which includes the Nguni, Wattville and Thokoza hostels.

COMMUNITY SERVICES

As we continue to promote healthy lifestyle and sporting activities in the region, the
city will immediately reintroduce the Ekurhuleni heritage half marathon working
together with the Central Gauteng Athletics Association with the main objective being
to grow it to the level of other big marathons in the country and the province. We will
also be re-introducing the aerobics in the parks, and support community events mainly
the off-season games and the arts in the lake.

As we promote social cohesion, we will aggressively pursue the introduction of the

Signature Event to promote economic development, destination marketing, poverty

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alleviation and local talent exposure and development. We will be calling for proposals
in this regard from interested parties.

Moving to Health and Social Development Services, this function is a provincial

government mandate, however we shall continue to play our part in ensuring that
primary health care services reaches as many of our people as possible. Our efforts
to take health care services and chronic medication closer to our people continue in
earnest through home-based care, the rollout of 24 Pele boxes and another 172
chronic pick-up points. Our tremendous work in the reduction of HIV mother-to-child
transmission, which stands at 0.2% and is better than the nation level of 2%, shall be
maintained with the aim of reducing it further.

We shall be paying special attention to the monitoring of food safety and compliance
to mitigate exposure of our children and the general population to food poisoning.

Madam Speaker, we have had enough of crime. We now need the EMPD working with
other security agencies to show no mercy to criminals. What we are experiencing on
a daily basis in our streets and communities has to stop. Our people must help us to
reclaim our streets from drug lords and traffickers, pick pocketers and other peddlers
of crime.

Just here in Germiston we are faced with a huge challenge of hijacked buildings,
mainly around the Dumisani Masilela Theatre, an area which has become foreign in
our own space. We need to reclaim the buildings around theatre precinct and
repurpose them. A serious clean-up campaign of our CBDs is not negotiable, and the
chief of police and his team have received a briefing and we expect immediate action.

These operations must be carried out by a multi-disciplinary by-law enforcement team

which will also include the SAPS and Home Affairs, as we believe that many of the
people behind this may be undocumented foreign nationals. The EMPD must now
arrest those criminals who violate our by-laws without fear or favour – we must take
back our streets.

People of Ekurhuleni, we must work together to fight the Gender-Based Violence and
Femicide pandemic which continues to ravage society. We recognize that GBVF is
part of our social construct and therefore we believe that we can eliminate this
pandemic if we work with both survivors and perpetrators. On our side, we commit
ourselves to strengthen our partnership with social institutions which serve as
important frontline and are in the cold face of dealing with GBVF on a daily basis.
These are community and faith-based organisations, civil society, and NGOs.

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INVESTMENT IN CRITICAL INFRASTRUCTURE IN PARTNERSHIP WITH THE
PRIVATE SECTOR

The City of Ekurhuleni is in the process of embarking on a program of Public Private

Partnerships (PPP). This is a program where the private sector would be expected to
invest their capital resources while the city would provide the land for a period of 25 to
30 years, depending on the scope of the project.

In this regard, the city will be unlocking PPP infrastructure projects, putting into the
market approved strategic land parcels to ignite investment and create jobs while
commercial properties will be packaged for local economic development purposes.

The city is also supporting its wastewater treatment entity ERWAT through planning
for the upgrading of five (5) wastewater treatment plants. The planning is expected to
be complete by June 2025 at which point construction can commence, subject to
funding availability. In addition, the city and ERWAT are encouraging private
developers to partner with the city for the construction of the plants as provided in the
municipality’s Bulk Contribution Policy.

The entity on its own has commenced with the planning for beneficiation of wastewater
with discussions at an advanced stage with Rand Water for the construction of a
wastewater beneficiating plant. Sludge beneficiation is another possible revenue
stream that the entity is looking at.

ECONOMIC DEVELOPMENT AND JOB CREATION

The City of Ekurhuleni as a microcosm of the South African economy continues to

navigate several turbulent years in the economic recovery programme. The regional
economy grew marginally in 2023. In the main, 2023 was an incredibly challenging
year for the South African economy at large as GDP growth is projected at below 1%,
with marginal improvements forecast for 2024 and 2025 at 1.2% and 1.3%,
respectively.

The marginal GDP growth forecast is largely influenced by persisting energy supply
constraints, high interest rates, rising fuel and food prices and constraints in the
logistics sector which includes transportation, freight and ports. This has affected
exports.

In the City of Ekurhuleni, the slow growth has primarily stemmed from the continued
challenges with the energy, water and logistics sectors. This has had a detrimental
effect on manufacturing processes across several value-chains. In the same vein, the

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Ekurhuleni economic outlook in 2024 is also shaped by sovereignty issues that stem
from global economic trends, geopolitical developments, domestic infrastructural
challenges, and liquidity challenges that have bedeviled the municipality in the recent
past.

Efforts to create sustainable jobs and reducing unemployment are a key economic
and social contributor in Ekurhuleni. Although the expanded public works programme
has been given prominence by this government as a direct employment creation
intervention, we have had to confront our most urgent reality to focus on education
and training as a labour market policy option to decisively deal with youth
unemployment.

With the acknowledgement that employment is the main bridge between economic
participation and improved living standards, we have concluded that a responsive
employment environment is the key requirement for sustainable social transformation.

We have since decided that there is a need to elevate the role of corporate social
investment, social entrepreneurship and impact investing in the mainstream of the
economy and discourse. Therefore, facilitating the growth of the self-employed in the
formal and informal sectors represents an alternate employment strategy as imposed
by our prevailing circumstances as Ekurhuleni’s operating and financial recovery
pathway has been hampered by low levels of business confidence.

Given the adoptive nature of private sector business enterprises, we encourage them
to take these difficult economic conditions into account as part of their corporate
strategies to withstand the challenging environment.

Aerotropolis Development and Revitalisation of Manufacturing

Repositioning the City as an airport city and the eastern corridor of the Gauteng
province as the footprint of the Aerotropolis is critical in our efforts to mobilize private
sector financing.

The significance of building a compact and integrated smart and modernised city is a
key ingredient in the development of the airport city in partnership with the private
sector, in a single most important unification and social compact between the City of
Ekurhuleni, National and Provincial Government and private sector capital. We need
to strengthen our resolve with regards to the realization of the Aerotropolis because
among its ripple effects is an impact on our long-standing characteristics of being a
manufacturing warehouse of the country.

Madam Speaker, one of the major success stories in our efforts to revive the
manufacturing sector and the economic development evolution is Gibela, the rolling
stock company which is revitalising manufacturing through railway mobility in the
country. This train manufacturing company is based in Nigel and it is busy rolling out

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the new-look and improved trains that are now transporting South Africans
throughout the country.
The city played a key role in getting this project off the ground and we are proud that
Gibela continues to put us on the map as a logistics hub of the country - while
creating jobs and economic opportunities for our people. In this regard, a total of 203
trains have been manufactured at a rate of 62 trains a year for the past three years.

Almost 1200 full time jobs have been created at the plant itself while an additional
1631 jobs were created during the construction phase of the project. In terms of
economic emancipation, Gibela has spent R161 million in direct procurement from
local suppliers in the immediate vicinity of Nigel, Duduza, Springs, KwaThema and
Tsakani, among others.

Madam Speaker, we note that the current energy challenges are a threat to
manufacturing and the envisaged Aerotropolis economy. In this regard, we have
established a Working Team in partnership with the DTIC, NCPC, Eskom and Industry
to provide an effective response and to jointly implement the load curtailment
programme as required by Eskom.

We are convinced that paying such particular focus will go a long way to narrow the
trust deficit and enable private sector innovation and solutions to our energy
challenges.

The renewed trust will go a long way in improving private sector business confidence
in the regional economy so that it induces and enables private capital inflows of R10
billion per annum facilitated through:
(i) market-seeking investment,
(ii) efficiency- seeking investments, and
(iii) asset-seeking investment.

In this regard, we have decided to dedicate Programme Origination and Mobilization

capacity to bolster the infrastructure and property development capability of the city
through the registration of several PPPs (Public Private Partnerships) in the Airport
City Core Area.

Entrepreneurship Enhancement and Township Economic

Development

We endeavour to mainstream businesses in the Township Economy and Community

Entrepreneurship Development environment and to develop black industrialist as well
as increase the sustainability of black farmers through a coordinated farmer
development programme. We shall be focusing on Township Supplier Development,
Township Gig Economy and Township Business Sites development wherein township

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entrepreneurs shall be trained, and Business Regulations implemented through
Business Act and Municipal Bylaws.

Madam Speaker, the city shall provide financial and training support to Hair Salons,
Last Mile Delivery, Fresh Produce Street Traders, Consumer Goods Traders,
Electronics/ Mobile phone Repairers, Clothing/Textile manufacturers, Agro-
processors, Tuck-shops and Spaza shops and Car Wash businesses.

We further envisage among others the following:

▪ 100 Co-operatives be supported and provided with market access;

▪ 1000 Emerging farmers to receive technical and production support;
▪ 25 Community gardens (to feed 2 500 people) will be supported through the
Fetsa Tlala programme;
▪ 17 Municipal farms to be released to emerging farmers on a 9 years and eleven
months lease;
▪ 100 Black industrialists to be assisted to access markets;
▪ 685 SMMEs to be provided with financial support;
▪ 50 Leaner contractors to be incubated; and
▪ 700 Spaza shop and tuckshops registered and formalized.
.
Employment Opportunities and Skilling

In order to better coordinate our efforts to bolster employability and create 16 000 jobs,
and maximize the Youth Skills Development of 4 300 young people, we are
establishing the Ekurhuleni Skills and Bursary Fund in partnership SETA and the
private sector. The breakdown of this intervention is as follows:

▪ 8 000 EPWP work opportunities;

▪ 3 000 PEP work opportunities;
▪ 5 000 CWP work opportunities;
▪ 2 000 EPWP, PEP & CWP beneficiaries shall be trained in specialization
vocational skills;
▪ 100 New bursaries will be allocated to the youth;
▪ 1 000 Community members trained through SETA and Gauteng Provincial
programmes; and
▪ 1 200 Community members provided with vocational skills training.

Madam Speaker, next month we shall be unveiling the first 1 400 cohort of
beneficiaries of this programme.

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GOOD AND ETHICAL GOVERNACE

We remain concerned about the state of our finances, mainly because we seem not
to be collecting enough revenue. Our finances are also not aligned to our priorities.

The stability of our finances will go a long way to restoring all the major outstanding
infrastructure projects including the reservoirs, the Thembisa Extension 25 housing
project and other outstanding major infrastructure projects.

We need to design our budget to meet the needs of our people, especially in the
townships while striking a balance with suburbia. Our budget must sustain the
provision of consistent basic services, including the repairs and maintenance of public
infrastructure, ignite and support local economic activities, private sector investment
and GDS imperatives.

In the area of Capex we must do more to be able to improve our spending patterns.
We will be putting in place mechanisms to improve both Capex and Grant spending.
In actual fact, I am introducing a Mayoral War Room solely for this purpose.

Madam Speaker, it is imperative that we prioritise the robust implementation of

revenue enhancement and credit control while at the same time revising the incentives
for consistent payment and discount consideration for settling outstanding debt for
both business and residential. We shall intensify the Siyacima Manje Namhlanje
credit control programme to solidify our fight against capable but non-paying
customers – especially the Top 1 000 Companies.

In eliminating erratic billing and the problematic interim billing which has become an
albatross for the city, we must move with speed when it comes to the implementation
of the smart digital billing – which means smart and credible billing. We continue to
receive complaints about the interim billing which is also a leak of much needed
revenue for the city. The current status quo must end.

As previously indicated, our liquidity position remains on the upward trajectory. We

note and welcome the gradual improvement of the situation from a worrying 12-day
liquidity position to 21 days. We remain on track to achieve 25 days and above by the
end of June, as we continue with our commitment of prudent financial management.

Madam Speaker, we recently received the Auditor-General’s detailed report on the

fiscal health of our city. Indeed, there was a slight regression in this regard, which saw
us dropping from a Clean Audit to an unqualified audit opinion. Be that as it may, it is
the General-Auditor's judgment that our municipality’s financial statements are fairly
and appropriately presented, without any identified exceptions, and in compliance with
generally accepted accounting principles. The city is on record for not incurring
unauthorised, fruitless and wasteful expenditure as disclosed in the audited financial
statements for this current financial year.

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Issues which have been flagged by the AG are well documented and understood by
the administration. It is our resolve that those issues be resolved by the end of the
current financial year so that we are on track for yet another clean audit. After all we
know how to get clean audits – from the era of former mayors Mondli Gungubele and
Mzwandile Masina we obtained back-to-back clean audits.

Still on this issue, Madam Speaker, the city needs to do better to manage relations
with Chapter 9 Institutions instantly, to avoid what transpired during the drafting of the
AG’s audit report for the city for the year under review. These are institutions that are
put in place in terms of the Constitution of the Republic to guard our democracy, and
therefore we cannot be seen to be working against them.

Credit Rating

We are pleased with the latest credit rating announcement by Global Credit Ratings
(GCR), which affirms our municipality's national scale long-term and short-term
issuer ratings at BBB(ZA) and A3(ZA), respectively. The GCR Ratings Agency is
exclusively contracted to provide solicited credit ratings for the City of Ekurhuleni.

This affirmation, under the backdrop of an investment outlook, is testament to the

robustness and resilience of our financial management systems within the city.

This administration is committed to restore political stability and confidence among

our investors and various local and international stakeholders. This rating affirms that
the markets recognise this administration’s ability to bolster financial sustainability
and are optimistic about our renewed strategic direction. It is a signal that our
governance practices are now on course towards a steady path to recovery.

Looking ahead, our focus remains on enhancing service delivery and infrastructure
development while managing our financial resources prudently. We are determined
to address the liquidity challenges and maintain our commitment to settling debts
within agreed contractual terms, which has been crucial in maintaining service
continuity and trust with our service providers.

Madam Speaker, our Human Resource is the backbone of the aspirations of our
people. We therefore must create a state machinery that is capable and equal to the
task at hand. In this regard, the filling of critical vacancies is at the apex of this
programme and so is the repurposing of the staff in line with the new structure. We will
also be doing an analysis of the number of personnel per department versus the output
of that department. Every employee must be here because they want to make a
difference – there can be no free ride and we want managers to make sure that this
becomes the order of the day.

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We must appreciate the stability in the workplace owing to the healthy relationship
between the employer and the Local Labour Forum (LLF). This has resulted in more
work getting done.

On the issue of insourcing of cleaners and security guards, this matter is on the
mayor’s table and the implementation will soon be presented before council.

Smart City Development

Our efforts to become a Smart City are gaining moment with a lot of automation taking
place. As we speak, the city is aggressively becoming paperless, and most services
are now automated thanks to the rollout of the Enterprise Resource Planning (ERP)
programme by the ICT Department. This innovation has integrated all our systems
while ensuring quality management of information.

Currently, 25km of fibre has been rolled out mainly connecting customer care areas
in the townships in order to improve service delivery. In a bid to fend off criminals from
our customer care centres, CCTV cameras are being installed in these facilities, and
priority will be given to crime hotspots including the Germiston, Boksburg and Kempton
Park customer care areas.

The latest innovation is the introduction of 10 000 early warning Internet of Things
devices that will assist in the fight against the scourge of cable theft and tampering in
our city. We are also implementing the automated rates clearance App which will allow
ratepayers to access their accounts as and when they need them. Another exciting
piece of news is the automation of the application of building plans which will reduce
the turnaround times for such plans.

Having been exposed to some of the challenges faced by members of the community
who are visually impaired we shall, in the near future, be implementing the Blind SA
Project for their ease of use of the Siyakhokha, My CoE App and the IMS system.

Madam Speaker, communication is a key component of governance. This is a part of

our work that ensures that we bring our communities up to speed with our work,
programmes and projects. Effective communication is the foundation of exceptional
customer service. It forges a vital link between our government and the citizens we
serve.

In this regard we are paying special attention to our call centre which has put us in the
news for all the wrong reasons lately. Preliminary investigations point to a poor work
ethic and lack of commitment from the staff. The Service Delivery Department
management working together with HR have assured us that they are dealing with the
matter and if it persists consequence management will be implemented.

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On the other hand, the ICT Department is busy rolling out an All-in-One system which
is more efficient than the current gadgets currently being utilized. After all, customer
service and interaction are a serious component of our work and we have a
responsibility to improve our interaction with communities.

We also realise that we are not doing well in the area of communications and
marketing, but steps are being undertaken to turn the situation around. Following the
recently approved Institutional Review, we have strategically integrated Tourism into
our Marketing and Communications Department to harness the collective strength of
our tourism initiatives and our city's brand identity, while ensuring that we boost the
capacity of the communications team.

We will harness the transformative power of artificial intelligence to gain deeper

insights into citizen sentiments and emerging data trends. This advanced technology
will guide us in enhancing our service delivery, ensuring that every decision we make
is informed by real-time feedback from the people we serve while we also give real-
time updates on our performance.

Moreover, we commit to revitalising our presence on social media, creating a dynamic

two-way channel for communication. Our teams must not only respond promptly to
complaints but also celebrate and acknowledge the positive feedback from our
community.

MAYORAL FLAGSHIP PROJECTS

Madam Speaker, I now move to the Mayoral Flagship projects. I want to emphasise
that these are being introduced to ensure that the mayor unblocks service delivery red
tape and ensures acceleration of same. These are also being carried out to restore
hope to the people of Ekurhuleni that this administration remains grounded to
addressing their critical needs. Areas requiring urgent attention and will make part of
the 100 days, includes:

• Restoring mayoral izimbizo to give feedback to residents;

• Setting a robust service delivery war room chaired by the mayor through
ORIT;
• Restoration of mega projects and strategic land release;
• Operation Clean Audit;
• Establishing, reclaiming, and refurbishing of hijacked buildings;
• Setting up a well-defined Revenue Enhancement program;
• Supporting SMME through weekly monitoring of payments for services
rendered;
• Accelerating project completion through CAPEX monitoring and mayoral
outreach; and
• Re-establish the University of Ekurhuleni advisory committee.

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As the Executive Mayor, I will also be paying special attention to the KwaThema
electricity matter, the sewer problems in Etwatwa/Daveyton, water in
Tsakane/Duduza; sewer problems in Katlehong and all the outstanding issues
affecting Thembisa.

Another area of critical importance is to bolster our IGR capabilities in order to

strengthen relations with other state organs so that best practices can be exchanged
and the unblocking of bottle necks that hinder our efforts to accelerate service delivery.
In this regard, we urgently need to reconsider the District Development Model which
was unfortunately rescinded by the previous regime for what seems of have been
political posturing.

This will ensure greater co-operation and benefit by our residence from Gauteng
Premier’s initiatives such as Transformers rollout program; Job creations Nasi Ispani;
Fighting crime wardens and technology deployment, and service delivery rapid
response. At the national level, we stand to benefit from support by the Department of
Water and Sanitation in our water and sewer challenges and further strengthen
stakeholder relations with Rand Water.

CONCLUSION

Madam Speaker, in closing I wish to remind the people of Ekurhuleni that in exactly
29 days we are heading to the national and provincial elections. Millions of our people
especially the youth have registered to vote, and this year’s election promises to be
the biggest since the first general elections of 30 years ago. It is exciting to see that
the youth has taken interest in this democratic process, and this must be seen as a
positive step towards sustaining and strengthening our democracy. This is a testament
that they are realising the future of this country is in their hands.

Fellow Councillors, on my part, I have delivered the State of the City Address and
therefore would like to appeal to all of you to demonstrate political maturity and
tolerance and put the interests of the residents of our lovely city first.

To the City Manager, we implore you to continue running a tight ship as you have
always demonstrated and ensure that the agenda of this current government is
realized. You and your team are central to ensuring that we have a responsive
administration that is mindful of the task at hand.

To all our stakeholders and communities, continue to actively participate in

government programmes and actively contribute towards the shaping of the city we all
aspire, and propel the programme for a better life for all the people of Ekurhuleni. We
need you to regularly scrutinize our work. Do not be shy to constructively criticize us
so that we remain focused at all times.

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I take this opportunity to thank my party, the African National Congress and all political
parties in Council for giving me the privileged opportunity to lead this institution. In this
regard, I commit myself to lead in a manner that will bring stability and inclusiveness.

Let me further thank all the role-players who made this day possible, and my family
for their support to what has been a couple of weeks of sleepless nights since I
assumed office.

Madam Speaker, I present to you and the people of Ekurhuleni my maiden State of
the City Address!

I thank you!

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