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Water and Sanitation News: 60% of key municipalities in financial trouble – Ratings Afrika

Four months before the countrywide local government elections Ratings Afrika found that service delivery is unlikely to improve as 60% of the country’s key municipalities are in financial trouble. The financial sustainability of four of the eight metros is weak and the two metros with the highest household income, Joburg and Tshwane, are in the deepest trouble, Ratings Afrika found.


The weak financial sustainability of local government is detrimental to the South African economy and puts extra strain on government that has to provide financial support, Ratings Afrika says. The agency has analysed the 2014/15 annual financial statements of the 100 biggest municipalities, as it did in each of the four previous financial years.