uMngeni-uThukela Water says mounting municipal debt of approximately R3.1 billion is placing significant pressure on the bulk water supplier, with much of the money now considered unlikely to be recovered.
Chief Financial Officer Thami Mkhwanazi revealed the figures while presenting the utility’s financial performance report for the 2024/25 financial year in Umhlanga on Thursday.
Mkhwanazi said a large portion of the outstanding debt is older than 120 days, raising concerns about collection prospects and the potential impact on the entity’s cash flow and future infrastructure plans.
While the utility remains financially stable for now, he warned that persistent arrears could hamper long-term sustainability and investment in critical water infrastructure.
“Of the R3.1 billion, Msunduzi owes us R1 billion, King Cetshwayo District Municipality owes us R1 billion, and Ugu District Municipality owes us R560 million,” Mkhwanazi said. “Then you have uThukela at R134 million. I have not mentioned the other smaller amounts, but those are the material figures that make up the bulk of the debt.”
He cautioned that continued non-payment by municipalities could undermine service delivery, as the utility relies on steady revenue to maintain and upgrade water systems.
The growing debt burden adds to broader challenges facing local governments, with water providers increasingly grappling with unpaid accounts while trying to keep taps running.