SA’s municipal death spiral
The financial position of municipalities has deteriorated so dramatically over the past decade that it now poses a major threat to the country's economic growth prospects
"A calamity of major proportions" is building in SA’s municipal sector. Years of financial mismanagement and weak corporate governance, compounded over the past year by the pandemic, have resulted in most of SA’s municipalities no longer being financially sustainable.
The sector’s aggregate cash shortfall is now a staggering R50.7bn — up from R32.9bn in 2019 — and unless this money can be found, many municipalities will face collapse...