Ekurhuleni Municipality Faces R7.4bn Creditor Bill Amid Liquidity Crisis

The South African metro's cash reserves cover less than half of outstanding debt, raising concerns over service delivery and potential credit implications.

By Handelsavisen Newsroom · Automated 2026-07-23 03:04 UTC · 1 min read

The City of Ekurhuleni is confronting a severe liquidity crisis, with total creditor obligations reaching R7.4 billion as of the end of May.

The municipality’s available cash reserves cover less than half of this outstanding debt, signaling a deepening financial strain that threatens essential service delivery.

758 billion of the total debt, while Rand Water claims another R555 million.

The bulk of the liability is owed to state-owned utilities.

Eskom accounts for R5.758 billion of the total debt, while Rand Water claims another R555 million.

These figures were disclosed in a written reply by Gauteng Finance MEC Nkulu Mdlalose, highlighting the scale of the municipality's arrears to critical infrastructure providers.

The disclosure underscores the broader fiscal challenges facing South African local governments, where revenue collection shortfalls and rising operational costs have eroded financial buffers.