By Nthabiseng Dhlamini, www.dws.gov.za
Municipalities owed water boards R23.77-billion as of 31 July 2026, placing pressure on the financial sustainability of bulk-water providers and their ability to maintain and expand critical infrastructure.
Magnific.com
The Deputy Minister of Water and Sanitation, David Mahlobo, has called for a collective approach involving government, communities, businesses, civil society and other stakeholders to address the growing municipal debt owed to water boards and the broader challenges affecting the sustainability of the water sector.
Deputy Minister Mahlobo spoke during a webinar convened by the South African Human Rights Commission (SAHRC) on Wednesday, 9 September 2026, under the theme “Municipal debt to water boards: Exploring a human rights centric approach”.
The webinar brought together key stakeholders to examine the growing municipal debt burden, its impact on the financial sustainability of water boards and the implications for the constitutional right of access to water.
Deputy Minister Mahlobo was joined on the panel by the Chairperson of the Portfolio Committee on Water and Sanitation, Honourable Leon Basson; the Chief Executive Officer of uMngeni-uThukela Water, Mr Sandile Mkhize; the Executive Mayor of OR Tambo District Municipality, Councillor Mesuli Ngqondwana; the Chief Director from National Treasury, Mr Jan Hattingh; a researcher from the University of South Africa, Professor Anja du Plessis; and the SAHRC Commissioner, Dr Henk Boshoff.
Water boards play a critical role in the water value chain by supplying bulk potable water to water services authorities. However, challenges such as poor revenue collection, weak credit control, governance shortcomings and weaknesses in financial management have resulted in some municipalities struggling to meet their payment obligations to water boards.
As of 31 July 2026, municipal debt owed to water boards stood at R23.77-billion, excluding current accounts. The continued accumulation of this debt is placing significant pressure on the liquidity of water boards, with some entities experiencing severe cash-flow constraints and an increased risk of financial distress.
The failure by municipalities to settle their bulk water accounts timeously has consequences that extend beyond the financial position of individual institutions. It affects the ability of water boards to maintain, refurbish and expand critical water infrastructure, while placing additional pressure on their capacity to provide sustainable and reliable bulk water services to municipalities.
Against this backdrop, the webinar sought to examine the causes of the growing municipal debt, assess its human rights implications and consider corrective measures to address the debt burden.
In his address, Deputy Minister Mahlobo highlighted the need for greater investment in water and sanitation infrastructure, improved water-use efficiency and measures to address water losses, pollution and non-revenue water.
He also emphasised the importance of stronger financial discipline and reinvestment in critical infrastructure, as well as effective billing, credit control and enforcement measures to improve revenue collection across the water value chain.
Deputy Minister Mahlobo further called for concerted efforts to confront the culture of non payment for municipal and basic services. He stressed the need to strengthen the protection of water infrastructure against vandalism, theft and other criminal activities, while ensuring that the water sector is better prepared to respond to the increasing impacts of climate change.
He said government alone could not resolve the challenges confronting the water sector and called for a whole-of-society approach in which communities, businesses, civil society, traditional leaders, indigenous communities and other stakeholders become active partners in the use, management and protection of water.
“Our view is that this matter of water, for the first time, there is a leadership led by the President, where there is clarity. But as government alone, we are not going to resolve the problem. We need a society approach, working with communities who are partners around water use and sanitation. But also working with businesses, and civil society experts, including indigenous communities and traditional leaders,” said Deputy Minister Mahlobo.
The webinar also provided an opportunity for panellists to engage on the challenges affecting the water services value chain, including the financial sustainability of water boards, municipal revenue collection and the need for stronger institutional and policy responses.
The discussions highlighted the interconnected nature of the water value chain and the need for all spheres of government and wider society to play their part in ensuring that water resources and infrastructure are sustainably managed and protected.
Deputy Minister Mahlobo said addressing municipal debt and the broader challenges facing the water sector requires collective leadership and shared responsibility.
Through stronger partnerships, responsible water use, sound financial management and decisive action across the water value chain, South Africa can build a more sustainable and resilient water sector that safeguards access to water for all.
