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RESIDENTS have welcomed eThekwini Municipality’s decision to ease the financial burden on struggling households and businesses by announcing a special debt relief programme that will see 50% of arrear debt accumulated up to January 31 written off.
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The initiative was approved at a special full council meeting on May 14, and aims to reduce the city’s growing debtors’ book while providing relief to those in financial distress. The programme will run from May to June 30, and is available to domestic and business customers who can settle 50% of their outstanding debt in full. The debt relief is conditional, requiring all debt from February to June 2025 to be paid in full.
According to the Municipality’s Revenue Unit, water debt alone had reached R14.7b by the end of January. Much of this is attributed to undetected underground leaks and delayed insurance payments. The city has acknowledged that many customers cannot pay what is owed, classifying much of the debt as irrecoverable. The city further noted that municipal debt continues to grow at an average rate of 2% per month, including interest calculated at prime plus 2%.
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The relief programme is also intended to support customers whose accounts were impacted by undetected water leaks. The initiative will not be applied automatically; residents and businesses must apply and meet specific conditions to qualify.
Mayor Cyril Xaba said the programme is a direct response to concerns raised during recent budget hearings.
“We have listened to people who expressed economic challenges and unemployment, which results in them not being able to settle their 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.
Mokgadi Kheswa of Illovo Glen said the news was a relief to struggling ratepayers who have to put up with monthly increases in petrol, food, medicine, and other essentials.
“I encourage ratepayers to use this opportunity to start on a clean slate,” said Kheswa.
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