Important South African city collapsing, with R300 million worth of infrastructure destroyed, dilapidated, or stolen

The City of Matlosana, formerly the City Council of Klerksdorp, is in serious financial trouble, owing billions to Eskom and Midvaal Water.

The City of Matlosana is a local municipality within the Dr Kenneth Kaunda District Municipality, in the North West province.

It was established in 2000 through the amalgamation of several towns, and its administrative centre is Klerksdorp.

The municipality has a population of 431,000 people and includes Klerksdorp, Orkney, Stilfontein, Kanana, Khuma, and Hartbeesfontein.

Alongside Rustenburg, the City of Matlosana, and specifically Klerksdorp, is the economic powerhouse of the North West Province.

It is positioned along the N12 treasure route, serving as a transport, logistics, and business hub linking Gauteng with the Northern Cape.

Klerksdorp serves as the primary medical, retail, financial, and educational centre for the commercial district and parts of the northern Free State.

The fertile land in the Matlosana municipality supports strong agricultural activities, with strong yields in maize, sorghum, groundnuts, and sunflowers.

It is home to Senwes’ corporate headquarters, one of the largest agricultural diversification corporations in the Southern Hemisphere.

Historically, Klerksdorp was synonymous with the Western Transvaal goldfields. However, in recent years, mining has declined significantly.

The City of Matlosana faces serious financial challenges

The City of Matlosana held a special council meeting on 12 June 2026, which revealed serious financial and governance failures.

When the current Council took office in November 2021, creditors such as Eskom, at R1 billion, and Midvaal, at R860 million, were a major concern.

However, the situation has worsened. These have now escalated to approximately R3 billion each.

At the same time, UIF liabilities increased from R6 billion to R10 billion, while debtor balances rose from R6 billion to R12 billion.

During the meeting, it was noted that more than R300 million worth of municipal infrastructure has been destroyed, dilapidated, non-functional, or stolen.

There is also an item on the agenda seeking to justify the promulgated upper limits by almost 30%, which effectively rewards non-performance under ANC governance.

The provincial executive representative relied on quoting legislation rather than exercising firm financial oversight as the custodian of public funds.

The DA in Matlosana argued that this continued pattern of decline reflects weak leadership and poor accountability.

“The 2021 administration will be remembered as one of the most ineffective periods of governance,” the party said.

Klerksdorp collapsing in front of everyone’s eyes

Newsday visited the City of Matlosana in 2025, and the deterioration was seen throughout the area.

It became so bad that residents and businesses are frustrated with what they describe as a decline in the quality of life and business operating environment.

Long-time resident and chairperson of the Matlosana Business Chamber (MBC), Johan Oosthuizen, said the town is experiencing significant service delivery failures.

This was hampering residents and businesses. “A vicious cycle has risen as a result of poor or no maintenance of infrastructure and poor service delivery,” said Oosthuizen.

The group has repeatedly raised its concerns to the municipality, calling for infrastructure, accounting systems, budgets, and bylaws to be addressed.

The chamber also said countless attempts to organise meetings with local executives have been ignored.

Oosthuizen said the town’s water supply system is a significant problem, plagued by persistent water losses due to broken pipes.

The municipality struggles to address numerous water leaks due to resource constraints, as evidenced by issues across the city.

The sewage system is also in a dire state, with raw sewage regularly flowing into residential areas and directly into water sources.

Another issue is a dilapidated road network, which businesses and residents said has made operating in the town increasingly tricky.

“Our roads are so bad. No customers want to come to our premises, and our vehicles get damaged constantly,” said a long-time resident and business owner.

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Photos from the City of Matlosana

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