By Thapelo Molefe
KwaZulu-Natal Premier Thamsanqa Ntuli has painted a dismal picture of the province’s state of finances.
It is grappling with a staggering R10 billion owed to service providers, alongside a projected overspend of R9.7 billion for the current financial year.
“The 6th Administration had tried not to slip into an overdraft position at the end of the 2023/24 financial year, however, service providers are owed R10 billion and this will require an average of R150 million budget cuts over the next seven years, starting form 2025/2026 financial year to have a positive cash flow,” he said on Tuesday.
“We entered the 2024/2025 financial year with a R5,5 billion as accruals, payable in the current cash flow, that is putting pressure on the fiscus in this current period.”
Marking his 100 days in office, the premier outlined the challenges in the province and the progress since his administration began.
“KwaZulu-Natal provincial government has had a declining contribution to the economic sector of 1,5% with a net impact on future growth and ability to attract private investment. The province ended the 2023/24 financial year with a net overspend position of R839 million,” Ntuli said.
He acknowledged that departments faced a budgetary discrepancy due to a higher-than-expected wage settlement.
However, to address these challenges, the premier called for improved revenue generation and collection efficiencies across departments.
He urged stakeholders to explore unconventional funding sources and to implement cost-cutting measures, such as a 30% reduction in travel expenses and a commitment to extend the lifespan of existing assets rather than purchasing new ones.
“Every action we have taken is part of a well-considered plan designed to address immediate challenges while building a foundation for sustainable growth,” he stated.
In a report, the premier said that the provincial government of unity and the formation of executive council clusters had led to the creation of a comprehensive programme of action, with plans to sign service delivery agreements by the end of October.
Ntuli also highlighted the need for transparency and accountability, reiterating his promise to deliver an honest government.
He emphasised the administration’s priorities of inclusive economic growth, poverty reduction and establishing a capable and ethical state.
“We are navigating financial limitations, but we remain committed to sustainable development in KwaZulu-Natal,” Ntuli said.
He also unveiled an ambitious development agenda, emphasising the crucial role of state-owned enterprises in advancing the province’s growth and job creation strategies.
The premier highlighted key entities such as Ezemvelo Wildlife, KZN Tourism and Ithala Development Finance Corporation, announcing a forthcoming meeting with their boards to align their objectives with government priorities.
He underscored the urgent need for infrastructure investment, declaring a focus on critical projects that could stimulate economic growth and attract private sector investment.
Ntuli said there had been significant progress in human settlements, with the delivery of 1,405 serviced sites and the completion of 1,640 Breaking New Ground houses.
Additionally, he said the government has initiated two funds aimed at supporting youth and women-owned businesses, including the R100 million KZN Youth Empowerment Fund, which targets youth enterprises across all districts.
In terms of investment, the premier highlighted Transnet’s R1 billion investment aimed at enhancing operations at Durban port, a move expected to bolster the maritime and logistics sectors.
The administration was also focused on revitalising the KwaSithebe Industrial Park through community engagement, reflecting its commitment to rural and township development.
Recent job creation efforts at Dube TradePort had resulted in 49 permanent and 201 temporary jobs in the first quarter of the 2024/25 financial year.
Significant business expansions, including the R600 million Princess Mkabayi Mall and the R2 billion Cotswold Commercial Development, were expected to generate thousands of jobs.
On the governance front, the premier announced a new crime prevention campaign to address issues related to undocumented foreign nationals and emphasised the administration’s commitment to building a capable and ethical state.
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