City approves debt relief to assist struggling households, businesses

THE City of eThekwini in its endeavour to alleviate the financial burden on its customers, will implement a 50% debt write-off of their arrear debt accumulated as at January 31, 2025.

“The special debt relief programme will run from May until June 30. This follows the approval of the report at a Special Council meeting on Tuesday. 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 eThekwini spokesperson  Gugu Sisilana.

Also read: eThekwini battling to reduce R34b consumer debt

She added that the Council was informed that the municipality’s debt is growing at an average of 2% per month, including interest at prime plus 2%. In addition, the debt owing for the months February to June 2025 must be settled in full.

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 Xaba.

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

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