Electricity and Energy Minister, Dr Kgosientsho Ramokgopa, and North West Premier, Lazarus Kagiso Mokgosi, will lead an intergovernmental meeting with all municipalities in the province.

Concerns are growing over municipalities’ inability to meet their financial obligations, particularly regarding electricity provision, as well as the devastating impact of vandalism on essential infrastructure.

One of the major issues expected to be highlighted during Monday’s (10/3) discussions is the staggering municipal debt to Eskom. In September, Eskom reported that eleven North West municipalities owed more than R7.5 billion.

?? RECAP: Yesterday we paid a special visit to Ditsobotla Local Municipality in the North West. The town of Lichtenburg, which is the municipality’s economic hub, has been without electricity due to debt owed to Eskom and technical challenges on the distribution network. pic.twitter.com/gYbyrKYnzD

— Dr Kgosientsho Ramokgopa (@Kgosientsho_R) August 25, 2023

The City of Matlosana, based in Klerksdorp, alone owed R2.3 billion, while Ditsobotla (Lichtenburg) owed R1.2 billion – a debt that continues to grow despite its participation in debt relief programmes.

Mounting debts have burdened Eskom heavily, impacting its ability to provide stable and reliable electricity. Many municipalities struggle to meet basic financial obligations, contributing to an increasingly volatile energy landscape.

Recently, Ramokgopa visited Limpopo and the Free State, where he met with provincial and municipal governments to foster collaboration across all three spheres of government and implement sustainable, long-term solutions to municipal power and infrastructure challenges, said ministerial spokesperson Tsakane Khambane.

This integrated approach is part of the government’s broader strategy to restore functionality at the local government level. Monday’s meeting will focus on how municipalities can better fulfil their financial and service delivery obligations, Khambane said.

Additionally, oversight mechanisms will be a key focus, particularly since several municipalities are under Section 139 intervention, meaning they are under direct provincial management due to financial mismanagement.

Intervention plans

The engagements will aim to develop intervention plans that go beyond short-term fixes, Khambane said. Addressing the municipal debt crisis requires strategic financial restructuring, especially given South Africa’s ongoing fiscal consolidation efforts.

The goal is to ensure municipalities can meet their financial obligations to Eskom, provide reliable electricity to residents, stabilise the energy supply, and stimulate economic recovery.

OFM News/Kekeletso Mosebetsi