South Africa’s eThekwini Municipality Under Pressure Over R45 Billion Debt
The eThekwini Municipality, which governs Durban and surrounding areas in South Africa’s KwaZulu-Natal Province, is facing renewed scrutiny after its latest debt collection report showed outstanding municipal debt of about R45 billion.
The municipality is one of South Africa’s major metropolitan municipalities and includes Durban, a key coastal city and one of the country’s most important ports and commercial centers. Because of this, the municipality’s financial position carries wider significance for service delivery, local governance, and economic activity in the region.
The latest report has drawn attention from opposition party ActionSA, which raised concerns about the municipality’s debt recovery efforts and called for clearer measures to address rising arrears.
The Report Explained
As per the municipality’s 2026 debt collection report, unpaid debt is owed by several categories of municipal services, with the water account making up the largest share at 42%. Property rates account for 23%, while electricity contributes 14%.
The report also showed that households are the biggest contributor to the municipality’s debt burden. Residents collectively owe R34 billion, highlighting the growing financial challenges faced by many residents in the region. The municipality stated that the residents struggle to pay their monthly bills, reflecting the surging debt. Economic pressures and high living costs make it difficult for households to keep up with payments for essential services like water, electricity, and property taxes.
The List of Debtors Grows
According to the report, debt is not confined to ordinary residents. It has extended to employees and government departments as well, where municipal employees owe a combined R77.5 million in unpaid municipal accounts.
At the same time, other government departments and state-owned entities together owe the municipality R1.8 billion. From this amount, the KwaZulu-Natal provincial government owes R1.2 billion, and the national government owes R83 million.
The figures have raised questions about accountability among public institutions and their management of outstanding payments.
Municipality Warns of Financial Risk
Although the report outlines the causes of the debt burden, the municipality has admitted that the outstanding debt has become one of its biggest challenges. The rising arrears threaten the city’s financial health and could affect its ability to maintain and provide essential municipal services. This includes the strain on service delivery for water supply, electricity distribution, sanitation services, and waste management.
“It remains the major challenge for the council regarding debt collection,” the report stated.
ActionSA Demands Accountability
ActionSA councillor Saul Backsin criticized the municipality’s debt recovery initiatives, demanding practical solutions to the debt crisis. He pointed out that only 8% of residents pay their municipal bills within 30 days of receiving them, which worsens the financial strain.
Backsin also expressed his concern about upcoming tariff and rate increases. He questioned how the municipality expects residents to cope with higher costs while debt levels are already rising.
“ActionSA is extremely worried about what happens when these 8% all receive the massive tariffs and rate increase next month. The municipality’s recovery plan appears to be little more than a list of excuses, lacking practical solutions and measurable targets,” he added.
The opposition party said the municipality should prioritize implementing actions to recover outstanding balances rather than just justifying why debt continues to increase.
Calls for Action Intensify
The scale of the debt places eThekwini’s revenue collection efforts under close public and political attention. For a municipality that serves one of South Africa’s most important urban and economic regions, the ability to collect revenue directly affects planning, infrastructure maintenance, and the delivery of basic services.
While municipal officials have acknowledged the seriousness of the issue, opposition leaders have called for more detailed action plans and measurable progress. The debate now centers on how the municipality can strengthen debt recovery while also recognizing the affordability challenges faced by many residents.
As arrears continue to place pressure on the city’s finances, eThekwini’s response will remain an important test of municipal financial management, accountability, and service delivery capacity.
