Finance Department

The finance department is responsible for the investment of funds and borrowing needs of the eThekwini Municipality.

Funds are borrowed annually from the various financial institutions, to finance the Municipality's service delivery program.  Ethekwini Municipality having sound financial management and an investment grade credit rating, is able to comfortably source its financing requirements at favourable terms and conditions.

Funds surplus to daily operating needs are invested typically in the short term money market, for periods matching cash flow requirements.  The relevant financial instruments utilised and the exposure limits for each institution where investments are made are determined in terms of an Investment framework policy.  Quotes are obtained, usually on a daily basis from Banks, for interest rates on call and notice deposits and the highest quote is accepted, subject to exposure limits.

Mission Statement

To provide the Unicity Council with Investment and borrowing capacity in order to invest surplus funds at a maximum return with minimum risk and to secure funding from lending institutions at favourable terms and conditions to finance the service delivery program.

KEY PERFORMANCE AREAS

• Access to finance facilities.
• Maintenance of Credit rating.
• Preferential borrowing rates.
• Maximise investment returns at minimum rate.

STRATEGIC OBJECTIVES

• Sale of Property Leaseback portfolio.
• Tender re: Banking requirements.

PROGRAM TO ACHIEVE OBJECTIVES

• Process responses to advertisement for sale of Property Leasehold.
• Obtain approval of Council for sale.
• Process in place to award tender to effect on 01/07/04

OUTSOURCED SERVICES

• Three Investment Managers have been appointed to manage a portion of investable funds.