R12.5 billion unpaid invoices crippling small businesses

THE Eastern Cape is responsible for nearly one in four invoices unpaid by the provincial government to suppliers, the National Treasury has revealed, as the state struggles to settle billions of rand owed in debt timeously.

- LOYISO SIDIMBA

According to the Treasury, the nine provincial administrations have not paid about R12.46 billion to suppliers by the end of December last year, with the Eastern Cape responsible for almost R4bn of the amount. Of the approximately 95 000 unpaid invoices, the Eastern Cape's share is just under 40 400.

Gauteng is responsible for about 13 200 invoices valued at R2.92bn, while KwaZulu-Natal has failed to pay almost 25 200 suppliers owed R2.56bn. Limpopo and Mpumalanga only owed five and four suppliers R128 125 and R267 861, respectively, while the Western Cape had not paid 34 invoices totalling nearly R513 000.

"The total number of invoices older than 30 days and not paid by provincial departments at the end of December 2024 amounted to 94 914 invoices with a rand value of R12.4bn," the National Treasury stated.