Another major municipality in Gauteng collapsing, owing R10.8 billion that it can’t pay
The Emfuleni Local Municipality’s debt to major creditors has reached over R10 billion, resulting in significant service delivery failures.
Emfuleni, located in the Vaal Triangle in southern Gauteng, includes Vereeniging, Vanderbijlpark, Boipatong, Evaton, Sebokeng, and Sharpeville.
Kingsol Chabalala, the Democratic Alliance’s mayoral candidate for Emfuleni, said that the Emfuleni Local Municipality is experiencing significant financial challenges.
The municipality owes creditors R10.828 billion and is struggling to meet its obligation to pay these debts within the required 30 days.
This financial failure poses a significant risk to the area’s already compromised service delivery.
Residents of Emfuleni frequently experience water and electricity outages, as well as interruptions to refuse removal due to late or non-payment to suppliers.
As of 31 May, 2026, Emfuleni owed its creditors a total of R10.828 billion, with the majority, R7.99 billion, representing invoices issued more than 200 days prior.
The municipality owes R8.651 billion to Eskom and R2.107 billion to Rand Water.
This information was disclosed by the Gauteng MEC for Finance, Nkululeko Dunga, in a written response to questions raised by the Democratic Alliance (DA) in the Gauteng Provincial Legislature (GPL).
“Many businesses that have contracted with Emfuleni have suffered greatly due to non-payment or severely delayed payments,” said Chabalala.
“This has led to the crippling or even destruction of these businesses,” Chabalala said.
This is in addition to the significant debts owed to Eskom and Rand Water, which supply essential services.
However, the Emfuleni Local Municipality (ELM) has announced that it is in a strong financial position, with a cash balance of R852 million and sufficient working capital to cover its short-term obligations.
This week, the municipality reported that disciplined spending, careful cash management, and a R1.97 billion debt write-off from Eskom have contributed to these improvements.
Municipal spokesperson Makhosonke Sangweni said that the council has finalised plans to prioritise a payment of R407 million to Rand Water.
“Thereafter, the municipality will systematically settle other outstanding creditors in a phased and orderly approach,” said Sangweni.
“These measures are designed to reduce the overall debt burden, restore supplier confidence, and ensure long-term financial sustainability while enhancing essential service delivery.”
The municipality has allocated R210 million in Municipal Infrastructure Grant funding for essential community projects to enhance local facilities and improve residents’ quality of life.
Emfuleni Municipality’s quest for solar fees
Earlier this year, MyBroadband reported that the Emfuleni Local Municipality was planning to introduce an application fee and a monthly levy for homes with solar power installations.
In June, the municipal council of Emfuleni approved a proposal requiring residents to pay an R2,400 application fee when installing a solar power system.
After registration, households will also need to pay a monthly levy of R463 for generating their own electricity.
Gerda Senekal, the deputy leader of FF Plus Gauteng and an Emfuleni councillor, criticised the plan.
“The FF Plus sees this levy and application fee as nothing but a desperate attempt by Emfuleni to generate revenue, seeing as it is failing to provide sustainable electricity to paying residents,” she said.
Senekal emphasised that the plan follows the municipality’s transfer of electricity distribution and revenue collection to Eskom in 2023.
She pointed out that the forfeiture resulted from the municipality’s poor financial management. Emfuleni is one of many municipalities that have been officially classified as bankrupt.
Its liabilities exceed its income, and its annual budgets have been underfunded for several years.
Senekal said that residents will have the chance to oppose the application fee and levy during an upcoming public participation process.
This process is expected to begin soon. She also encouraged voters to take this situation into account when casting their ballots in the municipal elections set for November 4, 2026.
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