Municipalities Owe Creditors R128 Billion

The total amount owed by municipalities to creditors has increased by over R20 billion.

The total amount owed by municipalities to creditors has been reported at R128 billion.

This is an increase from R104.3 billion reported for the same period in the 2023/24 financial year.

Provinces with the highest percentage of outstanding municipal creditors in the category greater than 90 days include Mpumalanga at 93.9 , Free State at 92, Northern Cape at 91.8, and Limpopo at 86.1.

An increase in outstanding payments to creditors could be an indication that municipalities are experiencing liquidity and cash challenges and consequently are delaying the settlement of outstanding debt.