In a bid to alleviate the financial pressures faced by residents and businesses, eThekwini Municipality Mayor Cyril Xaba has announced an extension of the Special Debt Relief Programme. This initiative aims to provide much-needed support to those struggling with outstanding debt.

During a press briefing on Sunday, Xaba discussed the strategic decisions adopted by the council at its Full Council meeting on Thursday.

Xaba said that to enhance the City’s revenue and alleviate the financial burden on residents, the council approved extending the Debt Relief Programme for business and residential customers.

He said that after a similar programme from May to June, customers and stakeholders requested an extension and ample time for financial mobilisation.

Xaba said the programme, which began on November 1, 2025, will run until January 31, 2026. 

“This initiative will assist customers with a 50% debt write-off of their arrears as at January 31, 2025, on condition that the customer pays 50% of the corresponding debt in full and final settlement,” Xaba said. 

“What makes this debt relief programme unique is that customers will be allowed to settle the 50% payment in instalments provided that all the payments are made by January 31, 2026.”

Xaba also explained that, after the customer settles the 50% debt owed as of January 31, 2025, the customer must settle the entire outstanding debt, if any, relating to the period from February 1, 2025, to June 30, 2025.

“Should a customer not be in a position to settle the debt for the months after January 31, 2025, such a customer must enter into an interest-free payment plan to settle the debt by June 30, 2026, without making any down payment,” Xaba said. 

“We call upon our customers to take advantage of this programme by approaching our customer service centres and not wait until the last minute.” 

Xaba said residents owe the City over R40 billion.

“It’s mainly from the households (75%). People are struggling to pay us. That’s the reason why we’re responding the way we are responding,” Xaba said. 

The mayor said this is an opportunity for people to take advantage of the programme. 

“If you can’t afford, it’s precisely why we are introducing a 50% discount, to address the question of affordability,” Xaba said. 

He said many never recovered from debt after Covid, the July 2021 riots and other challenges. 

Executive director in the City Manager’s office, Sipho Cele, added that the City is better prepared this time around to ensure glitches experienced the first time, are eliminated. 

“We have increased the points at which you can make these arrangements. And we’ve ensured that our staff members are adequately trained as well as adequately delegated to be able to deal with the decisions around providing debt relief to the various citizens,” Cele said. 

“We are hopefully going to have better results.” 

Cele said that the three-month operational period provides ample time for individuals to prepare and engage with the municipality. This extended timeframe allows for a more favourable outcome, contrasting with the previous one-month period, which offered limited opportunity for action.

“This time around, we can court with each other for that period of three months until we find an amicable resolution for all of us,” Cele said. 

Cele admitted that they have not been applying their indigent policy adequately. 

He explained that they are seeking to improve their indigent policy to better address individuals currently caught in a debt trap. 

thobeka.ngema@inl.co.za

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