Experts and government representatives discussed the issue of municipal debt and the sustainability of South Africa's water supply sector during a webinar organized by the South African Human Rights Commission (SAHRC). Participants agreed that resolving the water crisis requires a comprehensive societal approach to address systemic governance problems and financial difficulties.
The issues were raised at a webinar titled 'Municipal Debt to Water Boards: A Human Rights Perspective.' South Africa's water supply sector faces a systemic financial crisis caused by municipal debt amounting to 28 billion rand, creating tension between the financial stability of water boards and the constitutional right of citizens to access sufficient water.
This instability is exacerbated by inadequate funding, inefficient municipal management, and infrastructure vandalism, while unpaid bills threaten the collapse of vital services and infrastructure assets.
Deputy Minister of Water and Sanitation David Mahlobo stated that the government recognizes the impossibility of solving this problem alone. He emphasized the need to involve the entire society in finding a solution, including communities, businesses, civil society, experts, as well as indigenous communities and traditional leaders as partners in water and sanitation use.
Mahlobo added that solutions must be evidence-based, and cooperation and collaboration must prevail over competition. He noted that the reforms being implemented are not a panacea but will help the country reach a new level. Furthermore, he announced that the government plans to stabilize the situation within the next three to five years, insisting on collective efforts because the 'us versus them' approach no longer works.
Regarding pricing, Mahlobo clarified that the price of water in the country is not currently high, and the entire water cost chain—from the retail price set by municipalities and water boards to the Ministry where the economic regulator connects—will be regulated.
Portfolio Committee Chairperson for Water and Sanitation Leonard Basson agreed that the government cannot handle the problem on its own and stressed the need to raise public awareness about water conservation. He proposed implementing school programs to educate children on the value of water conservation to ensure its availability in the future.
UMngeni-uThukela Water CEO Sandile Mkhize emphasized the balance between consumer rights and the obligation to pay for services. He explained that it is important to identify weak links in the water value chain and strengthen them through legislative changes, as well as ensuring consumer protection through tariff regulation by an independent regulator.
SAHRC Commissioner Dr. Henk Boshoff argued that municipal debt to water boards is merely a symptom of broader municipal problems. In his view, the root causes lie in weak revenue collection, management issues, poor financial stewardship, and significant water wastage in local authorities, meaning these core problems must be addressed rather than just applying temporary measures.
Associate Professor Anya du Plessis of Unisa University highlighted the necessity of finding a delicate balance between protecting human dignity and ensuring financial recovery. She stated that it is necessary to protect basic essential levels, either by allocating core services or by establishing legal and operational thresholds below which service provision should not decrease.
Concerning the financing model, OR Tambo District Municipality Mayor Mesuli Ngkondvana noted that future success depends on direct investment in local government, as well as considering the participation of other governance clusters, such as security.
National Treasury Chief Analyst Ian Hatingh highlighted the Metropolitan Trade Services Reform, which aims to allocate revenue for trade services to achieve a surplus, ultimately contributing to investment in sustainable services.