The National Treasury has approved the write-off of one-third of Eskom debt, amounting to R279m owed by the Rand West City Local Municipality, marking a key milestone in its financial recovery efforts.

This is the second time the municipality has benefited from the government’s Municipal Debt Relief Programme, after meeting strict compliance conditions over 12 months. The programme, aimed at addressing rising municipal debt to Eskom, provides phased relief over three years, with one-third of arrears written off annually, subject to financial and governance requirements being met.

The write-off follows sustained efforts by the municipality to improve financial management, revenue collection and payment discipline. The municipality had previously faced significant financial strain due to Eskom debt that had reached hundreds of millions of rand.

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Mayor William Matsheke welcomed the second debt relief write-off, saying it’s an achievement shared with residents, businesses and all account holders who continue to honour their municipal obligations.
“We thank those that consistently pay for services and encourage all residents to keep their municipal accounts up to date,” he said.

The initiative forms part of broader efforts to stabilise Eskom’s finances while ensuring municipalities remain capable of delivering essential services. As the programme continues, Rand West City’s progress is seen as a benchmark for responsible financial management and co-operative governance in addressing South Africa’s municipal debt challenges.