ETH is a key hub of economic activity, representing approximately 7% of domestic GDP and just over 60% of the KwaZulu Natal province’s productivity. As home to Africa’s busiest port, it is a strategic gateway to the continent and rest of the world, and has extensive transportation infrastructure, which has been supportive of the establishment/emergence of certain secondary industries and related tertiary services.
The ratings on eThekwini Municipality (“ETH”, “the City” or “the Metro”) are underpinned by its strong operating profile, its position as one of the country’s major cities, as well as its strategic transport and logistics infrastructure. Unlike most local governments, the City actively uses leverage to achieve strong capital project implementation, but continues to follow relatively conservative financial policies. Counteracting these strengths are observed procurement process shortcomings, which if not properly remedied, could adversely impact the ratings.