South Africa mulls ‘punitive’ action on municipalities over mounting water debt

South African municipalities are deep in debt, owing water boards across the country more than R25.1 billion (USD 1.44 billion) as of June 2025, Deputy President Paul Mashatile has revealed.

The South African government is considering drastic measures, including budget cuts, to force municipalities to pay their staggering debt to water boards.

Mashatile addressed the National Council of Provinces, stating that most of the nation's municipalities are in arrears despite collecting revenue from residents, state media SABC reports.

The Vice President confirmed that the Minister of Water and Sanitation, Pemmy Majodina, has already urged municipalities to honour their financial obligations by making consistent payments on their current accounts.

Water challenges

“We do not want to be punitive, but where we realise that municipalities are not paying water boards and yet they are collecting revenue, that’s where that measure is being used to slice their budgets,” Mashatile told lawmakers.