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South Africa debt crisis threatens municipal solvency

Monday, July 12, 2021


Until recently, worsening indicators were confined to small-town and rural areas, but now, as the report highlights, the problem has spread to major metropolitan local government areas (‘metros’), which house 40% of the population and concentrate 60% of GDP.


  • The proposed diversification of electricity supply may further complicate municipal revenue streams.
  • The current crisis will strain constitutionally mandated relations between central, provincial and local governments.
  • The opposition DA is unlikely to capitalise on the ruling ANC’s governance failures, particularly in rural areas.

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