Msunduzi municipality launches debt relief programme for struggling ratepayers

The Msunduzi municipality is giving its embattled ratepayers a chance to reduce their debt to the municipality. The City kicked off a debt relief programme this month that could see the debt of its customers being reduced by up to 50%, provided they meet certain conditions.

The municipality is owed billions of rand by its ratepayers. In a statement, the council said it has approved the #BePartOfTheSolution Debt Collection Campaign, a targeted debt relief initiative designed to assist distressed consumers in the city who are struggling with arrears on their municipal accounts.

The campaign will run from 1 June 2025 to 30 September 2025.

It said the initiative aims to provide financial relief while encouraging responsible account behaviour and improving revenue recovery. Key features of the campaign include significant discounts on municipal debt and structured payment arrangements for qualifying residents and businesses.

The city stated that the #BePartOfTheSolution Campaign offers an important opportunity for distressed customers to restore their municipal accounts and access ongoing municipal services without the burden of unmanageable historical debt.

Mayor Mzimkhulu Thebolla said, “The council’s approval of this targeted debt relief campaign demonstrates our commitment to building a caring city. Aligned to our 2025/2026 budget priorities, we are introducing interventions that bring practical relief to residents and businesses in financial distress while ensuring that we strengthen our revenue base. We want our people to access municipal services with dignity — and this campaign is a step towards restoring trust, improving payment culture, and achieving financial sustainability.”

Under this agreement, the city outlined the following conditions for the debt relief:

• 50% Discount on services-related debt for distressed businesses, residential, and other debtors whose debt accumulated from 31 July 2024. This discount is subject to full and final settlement or an approved extended payment arrangement.
• 10% Discount on services-related debt for the same categories of distressed debtors whose debt accumulated from 31 January 2025, also subject to full settlement or an approved payment plan.
• 100% Discount on interest for property rates debt accumulated up to 30 April 2025, for distressed businesses, residential, and other debtors, provided that the full capital amount is settled or a payment arrangement is accepted.

The city statement emphasised that while the municipality is committed to supporting those in genuine financial distress, there are clear policy conditions and exclusions to ensure integrity and fairness in the application process. Customers will not qualify for the campaign if they have tampered with electricity more than once, have benefited from similar discounts in the past five years, or refuse audit access to municipal staff conducting verification, among other conditions.

THE MERCURY