South Africa's Municipal Debt Crisis Threatens Water Sector Stability
Municipal debt of R21bn a threat to water boards’ viability 🔗
Municipalities in South Africa owe R21.3 billion to the country's 15 water boards, which jeopardizes the financial stability of both the boards and the water sector as a whole. Water and Sanitation Minister Pemmy Majodina highlighted that the inability of municipalities to pay for treated water hampers maintenance and operation of water infrastructure. The situation is exacerbated by significant water losses before reaching consumers and the need for R900 billion to improve the country's water infrastructure over the next decade. The government aims to collaborate with various ministers to ensure the water sector's financial sustainability.
What is the total debt owed by municipalities to water boards in South Africa?
Municipalities owe a total of R21.3 billion to the 15 water boards in South Africa.
Why is the water sector's financial viability threatened?
The water sector's financial viability is threatened because municipalities are failing to pay for the treated water supplied by the water boards, impacting their ability to maintain and operate infrastructure.
How much funding is needed to improve South Africa's water infrastructure?
An estimated R900 billion is required over the next decade to halt the further deterioration of South Africa's water infrastructure.