Understanding eThekwini Municipality's R2 billion debt crisis: Who owes what?
The eThekwini municipality's total government debt amounts to R2 billion. The bulk of the debt is owed by Provincial government departments at R1.6 billion, while the National government owes a total of R85 million.
Image: Pexels.
The eThekwini Municipality issued notices of the disconnection of services to four government departments on November 21, 2025, to collect R1.1 billion in outstanding debt.
The departments include the National Public Works, the KwaZulu-Natal Department of Health, Human Settlements, and the Department of Education. The municipality’s Finance Committee report for November 2025 stated that if payment is not received within 14 days, the disconnection will be effected.
The eThekwini municipality's total government debt amounts to R2bn. The bulk of the debt is owed by provincial government departments at R1.6bn, while the National government owes a total of R85 million, and approximately R316m is for the Ingonyama Trust.
The municipality has already disconnected the KZN Department of Provincial Works and Infrastructure (DPWI) for a debt of R520m. This led to the temporary closure of the Department of Transport offices and two license and test centres in Durban.
Below are departments with long outstanding debts/contributing to the government debt increase:
National Government Debt
- The Ingonyama Trust Board:
- R23m relating to 160 properties. The board stated that further verifications need to be done before they can commit to paying.
- R69.8m for Hammarsdale Junction Mall rates
- R225.7m, inclusive of interest. Rates for two petrol stations in Umgababa and many other properties are being disputed as belonging to the Traditional Authorities.
- Department of Water and Sanitation: R43.1m for rates for Inanda and Hazelmere dams, before Public Service Infrastructure properties (PSI ) are exempt from rates. The debts relating to DWS have now been escalated to the Presidential eThekwini Working Group.
- National Public Works: R18.5m for services and rates for 293 properties. The bulk of the debt is interest. The department has sent a letter to the municipality for interest reversal to be considered by the municipality.
The key departments contributing to provincial debt are:
- Department of Health: R26.4m, current is R17.8m, and arrears are R8.6m.
- Human Settlement: R119.4m. Approximately R65.6m relates to Land Availability Agreements (LAA) queries. R53.8m debt for rates and services; R28.2m relates to the Bramcote Project.
- Department of Education (S20 and Offices): R598.6m. The bulk of this debt is for sundry accounts for water infrastructure charges and water tankers provided to schools.
- Department of Education (Section 21 Schools): R347m.
- South African National Roads Agency SOC Ltd: R11.9m. Approximately R5.6m related to the N2 and N3 PSI roads debt in an ongoing dispute of N2/N3 Roads.
- Ugu District Municipality: R43m for water debts
- uMgungundlovu District Municipality: R10.6m for water debts. The eThekwini municipality took over the supply of water to Ugu and uMgungundlovu municipalities. No payment is being received due to financial constraints from these municipalities. eThekwini municipality faces a challenge in disconnecting the water supply as these meters feed residences on both sides of the demarcation borders.
- Parastatals - Transnet: R57m as a back charge for electricity. Transnet is still disputing this charge.
The municipality reported that in October 2025, a total of R257m was received as payments from parastatals and R165m was received as payments from government departments.
zainul.dawood@inl.co.za