The City of Ekurhuleni owed R7.3 billion to its creditors as of 31 May 2026, including R5.758 billion to Eskom and R555 million to Rand Water, while its available cash reserves stood at only R2 billion, according to municipal financial reports and official statements.

Major Creditors And Service Delivery Risks

City financial documents show that the largest portion of the debt is to Eskom, South Africa’s power utility, and Rand Water, the regional water supplier. In April 2025, the city’s inability to pay a R177 million deposit for the upgrading of four mini-substations in Chloorkop highlighted serious financial constraints, according to a statement by the municipality.

The city’s financial crisis undermines its ability to deliver core services and invest in infrastructure. Khathutshelo Rasilingwane, DA mayoral candidate, warned during a press briefing that, “We strongly believe that residents in the City of Ekurhuleni should really be concerned with the revelation because this is no longer just about an accounting problem.”

Recovery Efforts And Political Response

Ekurhuleni officials say efforts to recover lost revenue are ongoing. In September 2025, Mayor Nkosindiphile Xhakaza reported that the city had recovered more than R365 million—18% of the R2 billion lost due to a prior billing error. “So far, we have collected over R365 million from these historical accounts,” Xhakaza stated during a media briefing.

Finance MMC Jongizizwe Dlabathi said during the 2026/27 budget presentation that collection campaigns targeting non-paying residents and businesses are still underway. The municipality tabled a R71 billion budget in May 2026, prioritising infrastructure and service delivery. Despite these moves, opposition parties have called for urgent interventions, with the DA requesting immediate talks with the mayor after the latest debt figures were disclosed on 20 July 2026.

The city’s approach will be tested as creditors, especially Eskom and Rand Water, press for payment to sustain critical services. Further updates are expected following scheduled council meetings and engagement between the city’s leadership and opposition parties.