Hlabisa warns failing metros could collapse South Africa, vows crackdown on unpaid government debt

By Thapelo Molefe

Cooperative Governance and Traditional Affairs (Cogta) Minister Velenkosini Hlabisa has warned that South Africa’s economic stability is at risk if struggling metropolitan municipalities are not urgently fixed, while announcing plans to force government departments to settle outstanding debts owed to cities.

Speaking at the Ministerial Engagement in Boksburg on Friday, Hlabisa said the country’s eight metros, which house 62% of the population and generate more than two thirds of GDP, are facing deepening governance and financial crises that threaten both service delivery and economic growth.

“If these eight metropolitan municipalities are not fully functional or are in a state of collapse, the country will soon collapse,” he said.

The minister said many metros are grappling with political instability, weak governance, declining revenue and mounting debt to bulk service providers such as Eskom and water boards.

At the same time, municipalities are owed significant sums by government departments,