South Africa's metros face audit failures and mounting debt pressures

South Africa’s eight metropolitan municipalities all received negative audit opinions for the 2024/25 financial year, according to Auditor‑General Tsakani Maluleke. None achieved a clean audit, and irregular expenditure accounted for 58% of total municipal spending, with major contributors including Tshwane, Johannesburg’s City Power, Buffalo City and eThekwini. Johannesburg is described as technically insolvent, owing R5.3 billion to Eskom and facing an infrastructure backlog exceeding R200 billion.

In Gauteng province, Finance MEC Nkululeko Dunga warned that outstanding e‑toll debt totals about R6.17 billion after the province paid R13.9 billion to date. Municipal revenue collection is weakening, and many local governments struggle to collect payments for electricity and water. Stalled infrastructure projects and an ageing asset base have increased fiscal strain, prompting the province to prioritise completion of projects that are at least 80% finished and to tighten procurement oversight.