The Durban Chamber of Commerce and Industry is celebrating its 170th anniversary, with its chief executive, Palesa Phili, emphasizing the need for cooperation between business and government to overcome current challenges. The Chamber's annual gala dinner was held at the playTSOGO Globe, Suncoast, on October 28, under the theme "Building Confidence Together". Phili noted that despite declining confidence, investment in the city continues, with manufacturing investment, port developments, and projects supported through the Presidential eThekwini Working Group.
The Durban Business Confidence Index has declined from a record 63.38 points in the fourth quarter of 2025 to 50.63 in the first quarter of 2026 and 48.82 in the second quarter. Phili attributed the decline to national and international pressures, including changing inflation and interest rate expectations, geopolitical tensions, migration-linked protests, and higher fuel costs. Despite this, Durban's business confidence index remains above the national average of 39 points for the same quarter.
Phili highlighted several positive developments in Durban, including an R11 billion investment commitment associated with the 25-year concession for the Durban Container Terminal Pier 2. The city also recorded the biggest year-on-year improvement in the World Bank's 2025 Container Port Performance Index. Additionally, tourism is recovering from the effects of the Covid-19 pandemic, July 2021 unrest, 2022 floods, and migration-linked protests.
However, Phili warned that ageing infrastructure and unreliable municipal services threaten future growth. The city's water and sanitation systems are under severe strain due to ageing pipelines and treatment facilities, as well as rising water demand. Water interruptions have forced businesses to stop operations and purchase their own water, adding to the pressure on firms already facing higher operating expenses.
The second-quarter confidence survey found that 31.5% of respondents identified roads as the worst-performing municipal service, followed by environmental management at 27.4% and water supply at 26%. The survey also found that 71.2% of respondents believed complaints about poor services were unlikely to be resolved within a reasonable time. Phili argued that greater capital investment was needed to replace deteriorating infrastructure.
The eThekwini municipality's adopted 2026/27 budget provides approximately R6.3 billion for capital expenditure, representing about 8.4% of total spending. Phili called on government to prioritize and increase investment in the capital budget to safeguard Durban's future growth and resilience. She also urged government to explore alternative revenue sources rather than relying heavily on municipal tariff increases.
Looking ahead, Phili emphasized the need for reliable water and electricity at fair prices, secure roads, and stronger public safety to attract investment. The Chamber also called for stronger measures against illicit and cheap imported goods, with cooperation between government and business needed to produce tangible results. Phili identified business process outsourcing, renewable energy, waste management, and sustainable technologies as promising areas for growth and investment.
Key points
- The Durban Chamber of Commerce and Industry is marking its 170th anniversary with a call to rebuild business confidence.
- Ageing infrastructure and unreliable municipal services threaten future growth in Durban.
- The Chamber is urging government to prioritize and increase investment in the capital budget to safeguard Durban's future growth and resilience.
