GDE Settles R426M Municipal Debt, Ramps Up School Infrastructure Projects

In accordance with the South African Schools Act, schools granted Section 21 functions are expected to oversee their own financial affairs.

The Gauteng Department of Education (GDE) has nearly completed a monumental financial commitment to settle the municipal and Eskom debts of public schools lacking financial autonomy, while simultaneously launching a multibillion-rand infrastructure initiative to combat overcrowding in the province’s education system.

99.95% of Municipal Debt Paid Off by June 2025

As of 30 June 2025, the GDE had disbursed R426.27 million of the R426.45 million it owed to municipalities and Eskom, achieving 99.95% debt clearance for schools that do not possess Section 21(1)(d) functions. This legislative clause pertains to financial autonomy granted to specific schools, allowing them to manage their own budgets and pay for services such as electricity and water.

Only R175,853.61 remains outstanding due to administrative delays related to updates in the Standard Chart of Accounts (SCOA)—a Provincial Treasury reform aimed at enhancing public financial management systems. The GDE confirmed that this balance would be settled during the scheduled payment cycle between 25 July and 8 August 2025, thereby closing out its April 2025 commitment to eliminate all legacy municipal debt.

Section 21 Schools Manage Their Own Accounts

In accordance with the South African Schools Act, schools granted Section 21 functions are expected to oversee their own financial affairs. These schools directly manage various responsibilities, including utility payments. The department reiterated that while these schools are autonomous, their School Governing Bodies (SGBs) receive ongoing support through circulars and compliance workshops to ensure appropriate use of public funds.

Oversight of 40 Non-Section 21 Schools Continues

As of the end of June 2025, the GDE retained financial control over 40 schools that had not yet been granted Section 21 status. These schools had a combined municipal debt of R105,391.24, which the department is actively managing. Importantly, none of these institutions faced disconnection of essential services, a testament to the department's proactive monitoring and payment systems.

GDE officials reassured stakeholders that no public school in Gauteng has had or will face electricity or water cutoffs due to unpaid municipal accounts.

R2.8 Billion Budget for School Infrastructure in 2025/26

To address one of its most pressing challenges—overcrowding in schools—the GDE has allocated R2.8 billion for school infrastructure development during the 2025/26 financial year. The breakdown of the funding is as follows:

• R1.489 billion: Construction of new schools and replacements.

• R615 million: Upgrades and additions, including mobile classrooms and self-build projects.

• R166 million: Refurbishment and rehabilitation.

• R476 million: Maintenance of existing infrastructure.

The department is employing a multifaceted approach to meet infrastructure demands, including constructing brick-and-mortar classrooms on existing school grounds, deploying procured—not leased—mobile classrooms, and identifying new sites for full-scale school construction.

Public-Private Partnership Model Under Consideration

In a bid to accelerate infrastructure delivery, particularly in high-demand urban zones, the GDE is exploring a Public-Private Partnership (PPP) model. This approach would allow private sector partners to finance, design, build, and possibly operate new public schools. The department would then repay costs over time, thereby unlocking access to private capital, expediting project timelines, and ensuring infrastructure sustainability.

The GDE emphasized that any PPP arrangement would maintain strong public oversight and accountability to safeguard education standards.

Leadership Commitment to Transparency and Progress

Gauteng Education MEC Matome Chiloane underscored the department's dedication to both financial transparency and service continuity in his latest remarks:

“As the department, we remain committed to ensuring sound financial governance, transparency, and service continuity in all public schools. We call on all education stakeholders, particularly parents, communities, and School Governing Bodies, to continue working closely with the Department to deliver quality learning environments across Gauteng.”

Conclusion

The Gauteng Department of Education’s near-complete debt settlement and robust infrastructure investment signal a decisive step forward in its mission to deliver quality public education. As it pivots toward long-term structural improvements, the department remains focused on inclusive governance, responsible fiscal management, and efficient service delivery across the province’s education sector.

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