Buffalo City Metro has approved the write-off of more than R11.3m in debt owed by qualifying places of worship as it moves to offer relief packages to customers faced with financial hardships.
This comes as the city seeks to reduce more than R10bn worth of debt owed by its customers.
In a statement released on Saturday, BCM spokesperson Bongani Fuzile said it was offering financial relief to religious institutions that support vulnerable communities across the metro grappling with poverty, unemployment and other socioeconomic challenges.
The R11.3m debt, including VAT, relates to qualifying municipal service charges that are more than 120 days overdue.
Fuzile said many places of worship operate on limited budgets and rely largely on voluntary contributions from congregants to sustain their activities.
He said despite these financial constraints, religious institutions continue to provide community services, including soup kitchens, food assistance, support for vulnerable families and other charitable initiatives.
Fuzile said the debt relief would allow qualifying institutions to redirect their limited resources towards their core responsibilities and community development programmes.
“Building stronger communities requires cooperation between government, civil society, community organisations and faith-based institutions,” said the municipality.
This comes as council approved the write-off of R1.29bn in interest accumulated on municipal accounts for more than 120 days that has been identified as irrecoverable.
The city said the intervention was aimed at addressing the municipality’s growing debt book and providing financial relief to customers facing persistent economic hardship.
The decision follows a review of the municipality’s outstanding debt, which stood at approximately R10.1bn by February 2026.
The write-off includes property rates, municipal services, miscellaneous charges and applicable VAT, with accumulated interest of approximately R1.4bn relating to 87,186 customers.
“The municipality recognises that non-payment cannot be viewed in isolation from the economic realities confronting many households and businesses,” said Fuzile.
The city said high unemployment in the province, rising living costs and the lasting financial impact of the Covid-19 pandemic have placed considerable pressure on customers’ ability to meet their municipal obligations.
Fuzile, however, stated that the write-off does not signal an end to debt collection.
“The municipality continues to implement monthly debt collection measures to recover.
“Customers are encouraged to honour their municipal accounts, engage with the municipality where they experience payment difficulties and make use of applicable payment arrangements,” said Fuzile.
Daily Dispatch