The revenue crunch facing municipalities, due to the financial constraints faced by residents and businesses in the national lockdown, could have dire implications for their ability to deliver basic services.

Ratings agency Moody’s Investors Services, which recently downgraded SA’s sovereign debt to junk, reported on Wednesday that while the scale and duration of the outbreak was uncertain it expected a temporary disruption in revenue collection in all SA municipalities. This was so as local government was not operating fully during the lockdown, which would weigh on their liquidity. ..

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