The Debt Quagmire

Eskom's first profit in years is overshadowed by R98bn in unpaid municipal bills—a 22% increase since 2023. Minister Ramokgopa called this a 'structural crisis' requiring policy overhauls.

Vicious Cycle

• Tariff spiral: 600% price hikes over 10 years
• Non-payment culture: Only 41% of municipal customers pay bills (StatsSA)
• Service collapse: Defaulting municipalities face disconnections, worsening local economies.

High-Risk Municipalities

Top 5 debtors (July 2025):

• Ekurhuleni: R14.2bn
• Johannesburg: R12.8bn
• eThekwini: R9.5bn
• Emfuleni: R7.1bn
• Mangaung: R6.3bn

Solutions on Table

Proposals include:

Direct federal collection: Eskom bypassing municipalities

Debt-for-reform swaps: National Treasury conditional bailouts

Cross-subsidization: Wealthy users fund township infrastructure