Municipality offers 50% debt relief for struggling residents

eThekwini Municipality residents who are struggling to pay off their debt, will now have their debt cut by 50%, the municipality announced last Wednesday, May 14.

The city, in its endeavour to alleviate the financial burden on its customers, will implement the 50% debt write-off of their arrears debt accumulated as at January 31, 2025.

The special debt relief programme will run from May until June 30, 2025. This follows the approval of the report at a Special Council meeting held on May 14.

Vukhani Mbhele, communications spokesperson for the eThekwini Municipality, said the approval is made on condition that customers pay 50% of the corresponding debt in full and final settlement.

“This special programme is intended to assist domestic and business customers experiencing economic challenges. This will further assist customers whose accounts were affected by major water leaks that could not be detected timeously due to various reasons,” said Mr Mbhele.

 The City’s Revenue Unit reported that the water debt, as at the end of January 2025, is currently at R14.7 billion. The biggest contributor to this debt is undetected underground leaks and short payments by insurance. It has been proven that many customers are unable to settle these debts and thus it is regarded as irrecoverable, said Mr Mbhele.

Council was informed that the municipality’s debt is steadily growing at an average of 2% per month, including interest at prime plus 2%.  It was approved that for debtors with a debt balance as at January 31, 2025, a debt write-off of 50% is granted in full and final settlement of the debt. In addition, the debt owing for the months February to June 2025 must be settled in full.

The special debt relief programme was approved to assist struggling households and businesses, while reducing the city’s debtors’ book.

eThekwini Municipality Mayor, Councillor Cyril Xaba, said this initiative is in response to the challenges expressed by residents during the budget hearings. 

“We have listened to people who expressed economic challenges and unemployment, which results in them not being able to settle debt. We wish to emphasise that the special debt relief programme is not automatic.  It must be applied for and is based on certain conditions being met.  We encourage residents and businesses to make use of this opportunity,” said Mayor Xaba.