South African Municipal Debt Threatens Eskom
South African municipal debt threatens Eskom as local votes risk creating more hung councils. Households and businesses owe billions to municipalities, putting state finances under pressure.
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Municipal arrears in South Africa threaten to destabilize state utility Eskom as hung councils complicate repayment enforcement. Local authorities owe the utility 122.5 billion rand, while public collection rates stall at 63.9%. The municipal debt crisis strains broader public finances and raises sovereign borrowing risks.
