eThekwini Municipality's debt relief programme boosts property transactions in Durban

Stakeholders in the property sector have praised the eThekwini Municipality’s decision to extend the debt relief programme, saying that it has made it easier to transfer properties in the city. They described the programme as vital, pointing out that it has enabled properties to be transferred easily, and deals that had been unable to proceed due to municipal debt have been resuscitated.

The Mercury has seen two letters from lawyers with representation in the property sector directed at the mayor of eThekwini, Cyril Xaba. The organisations confirmed the authenticity of the letters.

The municipality implemented the debt relief programme and extended it last month to assist embattled ratepayers by providing payment plans for their municipal debt.

The programme has been viewed largely as a success, with the city reportedly generating close to a billion rand in payments as a result. The Black Lawyers Association (BLA), KwaZulu-Natal branch, described the debt relief programme as a “lifeline for ratepayers and a boost for the property sector.”

The association was grateful that its written appeal asking for the programme to be extended had been acknowledged.

The BLA letter stated, “We are deeply encouraged that our call for the continuation of this vital initiative has been heeded. This progressive decision will undoubtedly benefit many residents, property owners, and businesses who continue to face financial hardship. It reflects the Municipality’s commitment to responsive governance, social responsibility, and economic recovery within our communities.”

“As members of the legal fraternity, we have witnessed firsthand the positive impact of this programme—particularly in facilitating property transactions, clearing long-outstanding municipal accounts, and restoring service access to residents. The extension will build upon this success and further strengthen confidence in municipal administration,” it said.

In another letter, the Attorneys Association of Durban stated, “This initiative has provided meaningful relief to ratepayers and reflects the Municipality's commitment to responsive and inclusive governance.

“As property lawyers, we have seen how this relief can unlock stalled property transactions, facilitate the issuing of clearance certificates, and reduce legal disputes. The extension will allow more ratepayers to benefit and contribute to smoother conveyancing processes across the city. “We commend the Municipality for recognising the need to broaden access to this programme.”

Councillor Andre Beetge said the proposal was tabled and approved at an eThekwini full council meeting on October 30. This followed the recent close-out report of a similar programme that ran for 45 days between mid-May and the end of June 2025, during which the city recovered only R1.3 billion of an expected R3.1 billion to R6.3 billion.

Under the extended programme, account holders with arrears dating back to 31 January 2025 will have the opportunity to settle 50% of their outstanding debt, with the municipality writing off the remaining 50%. This can be done either through:

• A single payment equal to 50% of the debt, or
• An interest-free payment plan spread over the three-month programme period, from 1 November 2025 to 31 January 2026.

Mayoral spokesperson Mluleki Mntungwa said the programme is a demonstration of the city's willingness to respond to the needs of its ratepayers.

“We encourage residents to take advantage of this opportunity and not wait until the last minute. We understand how important this programme is to the people of eThekwini, including the business community. We are happy to learn that the property sector is also now able to facilitate more transactions. This will improve our revenue collection and improve the delivery of basic services in the city.”

The ratepayers also concurred that the debt relief had been a sigh of relief to many who wanted to sell their properties.

Ish Prahladh, of the eThekwini Ratepayers and Residents Association, said, “There have been residents who were burdened by the debts and could not pay their accounts and, by extension, could not sell their houses, so this has been a big help as it has given them a way to reduce the debt.”

He said the next step was for the municipality to address the billing, warning that the billing issues could undermine the success of the programme as residents could fall back into debt because of the billing issues.

“We have to commend them on the issue of water; we are seeing that water meters are being read regularly now, so that is coming right. “There are still minor issues when it comes to electricity.”

THE MERCURY