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South Africa Towns Exposed to Climate Events Due to Low Spending

  • Weather events expose infrastructure deficiencies: Moody’s
  • Water, electricity services a credit risk for municipalities
Damage following heavy rains and winds in Umdloti, north of Durban, South Africa on May 22.

Damage following heavy rains and winds in Umdloti, north of Durban, South Africa on May 22.

Photographer: Rajesh Jantilal/AFP/Getty Images

Underinvestment in water and electricity infrastructure makes South African towns and cities vulnerable to events such as floods and disruptions in these services can be a credit risk for some municipalities, Moody’s Investors Service said. 

Capital expenditure in most of the country’s municipalities that Moody’s rate is below the 10% to 20% of total spending recommended by the National Treasury to ensure that infrastructure needs are addressed, the ratings company said in an emailed report on Tuesday.