Johannesburg’s R72bn unpaid bills fuel municipal finance ‘doom loop’
The Centre for Development and Enterprise says Johannesburg’s unpaid customer bills have climbed to nearly R72 billion, worsening a cycle of weak collections, delayed maintenance and deteriorating services.
Johannesburg's unpaid customer bills have reached nearly R72 billion, according to the Centre for Development and Enterprise, exacerbating issues with service delivery and infrastructure maintenance. This growing financial crisis, outlined in the City's latest budget, is driven by weak revenue collection, rising costs, and deteriorating services that are feeding off each other.
The CDE warns that the City has become dangerously disconnected from its financial reality, billing residents and businesses while assuming payments will be made. As services become unreliable, residents pay less and the City raises tariffs, creating a vicious cycle. The audit position for Johannesburg has also worsened, with the City's separate financial statements regressing to a qualified audit opinion in 2024/25, while the consolidated group received an unqualified opinion.
Supplier arrears have also risen, reaching R28 billion by June 2025. The CDE stresses that Johannesburg needs to address debt collection, cut costs, increase infrastructure investment, and reduce supplier arrears, though substantial reforms may be necessary for a genuine solution.
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