Central SA
North West municipalities’ poor revenue collection fuels R7bn Eskom debt─── KEKELETSO MOSEBETSI 09:52 Tue, 11 Mar 2025

The failure of North West municipalities to collect revenue effectively is a major contributor to the R7 billion debt owed to Eskom.
This is according to the Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, following a meeting on Monday (10/3) with North West Premier Lazarus Kagiso Mokgosi, Coghsta MEC Gaoage Oageng Molapisi, as well as mayors and municipal managers from across the province.
During the meeting, he focused on key issues such as load reduction, municipal debt, and the urgent need to improve electricity infrastructure, Ramokgopa stressed the severity of the crisis as municipalities in the province owe Eskom more than R7 billion.
“That’s a significant amount, considering the size of these municipalities,” he said. The core issue is municipalities’ inability to collect revenue efficiently, which leaves them unable to pay Eskom and deliver reliable electricity to residents. “This leads to non-payment to Eskom and ultimately, unreliable electricity supply.”
Ramokgopa warned that this financial instability is driving away investors, particularly in municipalities like Ditsobotla, which has suffered from government dysfunction. He emphasised that collaboration between provincial government, municipalities, and national agencies is critical to solving the crisis and restoring investor confidence.
Meanwhile, Mokgosi stressed that municipalities must reinvest the revenue they generate into infrastructure upgrades and maintenance.
“Most municipalities make money from electricity sales, yet they fail to reinvest it into infrastructure improvements,” he said.
North West Salga chairperson, Khumalo Molefe, welcomed national government intervention. He said efforts to fix crumbling infrastructure and improve revenue collection were long overdue.