Joburg has just 12 days’ cash buffer, Morero warns as Eskom and Rand Water bills loom

The City of Johannesburg has enough cash on hand to operate for only 12 days if an unexpected emergency arises, Mayor Dada Morero warned, as the metro awaits an equitable share transfer from National Treasury to help settle billions of rands owed to Eskom and Rand Water.

Immediate cash pressure as bulk-service bills mount

Morero said the City’s current cash coverage is 12 days, meaning it can support operations for that period if an unforeseen event occurs. He emphasised that this figure does not mean the City has no money, but that available funds would only stretch for 12 days under unexpected pressure.

“But the coverage that we have is at least 12 days, meaning that should anything happen we only have sufficient finance to support whatever happens for 12 days,” Morero said.

Equitable share transfer expected to clear bulk-service arrears

Morero said the city was awaiting the transfer of its equitable share from National Treasury, which he expected to arrive during the week, before settling outstanding accounts with the two bulk-service providers.

“We are just awaiting for the transfer of equitable share, which should be coming possibly by this week, so that we can then settle the Eskom account,” he said.

He said the funds would be split between the providers, with roughly about R2.6 or R2.4 billion for Eskom and R960 million for Rand Water.

Target and challenges for improving cash coverage

Morero noted that municipalities are required to maintain at least 32 days’ cash coverage, and said Johannesburg was working to improve revenue collection to raise its cash buffer.

“We are required to have at least 32 days and above for cash coverage. So we are working hard to ensure that our collection rate can ensure that we’ve got sufficient days for cash coverage,” he said.

Contributors to the city’s fiscal strain

The mayor pointed to bulk service costs and revenue collection problems as ongoing pressures on the City’s finances. IOL reporting noted that City Power’s bulk electricity purchases had contributed to overspending of about R2.1 billion by the end of the third quarter.

Morero has also acknowledged that the City’s billing and revenue systems need improvement to strengthen cash flow and help the metro meet its obligations.

Background on Treasury engagement

The City of Johannesburg was among 69 municipalities whose July 2026 equitable share transfers were temporarily withheld by National Treasury over compliance concerns with the Municipal Finance Management Act and financial management requirements. Morero said that matter had been resolved after engagements with Treasury and that Treasury had confirmed Johannesburg’s 2026/27 budget was funded.

What the mayor says next

Morero said the City remained focused on bringing its accounts up to date while improving financial controls and revenue performance.