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In a decisive move to ease the financial strain on struggling residents and businesses, the eThekwini Municipality has approved a special debt relief programme that will offer a 50 percent write-off on arrear municipal debt accumulated up to January 31, 2025.
The relief measure was adopted during a Special Full Council meeting held on May 15.
The programme, which will run from May until June 30, 2025, is aimed at helping both domestic and business customers who are unable to clear longstanding debt, particularly in the face of economic hardship and issues like undetected underground water leaks.
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Mayor of eThekwini, Cllr Cyril Xaba said the initiative was born out of concerns raised by residents during recent budget hearings.
“We have listened to people who expressed economic challenges and unemployment, which results in them not being able to settle debt,” said Mayor Xaba.
To qualify, customers must pay 50 percent of their outstanding debt in full and final settlement. In addition, all municipal charges from February to June 2025 must be paid in full for the agreement to be honoured. The city’s Revenue Unit reported that, as of the end of January 2025, the water-related municipal debt stood at R14, 7 billion.
This growing figure is largely attributed to undetected underground leaks and shortfalls in payments from insurance providers. With the debt increasing at an average of two percent per month – including interest calculated at prime plus two percent – city officials have deemed much of it irrecoverable. Mayor Xaba stressed that the programme is not automatic and requires proactive engagement from customers.
“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,” he said.
The city hopes that the programme will not only assist financially distressed ratepayers but also help reduce its growing debtors’ book. Council speaker, Cllr Thabani Nyawose, confirmed that the next ordinary Full Council meeting is scheduled for May 26, 2025. For more information on how to apply for the special debt relief programme, residents and businesses are advised to visit the eThekwini Municipality website or contact their nearest customer service centre.
In a statement penned by local activist, Vivian Pillay, he believes that arrears incurred upon residents should be entirely written off.
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“The eThekwini mayor has announced that there will be a 50 percent write-off for arrears prior to January 2025 to be paid in full. While this programme is welcome, it is not enough. There should be a complete write-off because it discriminates against people of colour. The current estimated billing is flawed. I advocate for a complete write-off of arrears prior to January 2025 and a flat rate for poor people in Phoenix who cannot afford to pay. The city is clearly discriminating against racial groups according to clause 9 (2) of the South African constitution, which states that equality includes the full and equal enjoyment of all rights and freedoms. The indigent policy, which excludes 60 percent of rural areas and over 600 informal settlements from paying for lights, water and rates, is not promoting social justice amongst all racial groups who have to subsidise those who don’t pay for services. The poor people of Phoenix are trapped in credit agreements sometimes for 36 months, for outstanding arrears and are struggling to put food on the table. Section 9 (2) guides legislation and policy-making to ensure equality and non-discrimination. The city needs to review and amend this policy to include all indigent residents. I’m seeking legal advice on this policy and will approach the HRC for an opinion,” said Pillay.
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