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
22 April 2021 - 05:00
"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...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.