Gauteng’s unpaid supplier bills put investment ambitions under scrutiny
Author: Likho Mbuka, The SA Trade Desk
Gauteng wants to attract more private investment and position itself as a destination of choice for multinational companies. But outstanding supplier bills and delays in paying businesses raise questions about whether the provincial government is creating a predictable environment for companies doing business with the state.
The issue came into focus during a media engagement on Thursday, 29 October, when Gauteng Finance MEC Nkululeko Dunga outlined the province’s financial position and progress in addressing payment delays.
Dunga said the province had improved its payment performance, with 98% of invoices paid within 30 days in August. Year-to-date compliance stood at 82%, compared with 60% during the same period last year.
However, he cautioned that the figures did not tell the full story.
In the Gauteng Department of Health, for example, the reported August compliance rate was 99%. But when older invoices already overdue by more than 30 days were included, the figure would have been 51%.
“Small businesses die when government pays late,” Dunga said.
The province had R11.3 billion in unpaid bills to service providers at the end of March 2026, down 9% from R12.4 billion a year earlier. Health accounted for R5.5 billion and Education R1.9 billion.
The payment challenges also affect larger suppliers. In May 2026, the South African Medical Technology Industry Association (SAMED) reported that suppliers to Gauteng’s public health system were owed more than R700 million. The association warned that delayed payments were putting businesses under financial pressure and threatening the continuity of patient care.
The province has also faced questions over its outstanding Microsoft software licence fees. ITWeb reported in November 2025 that Gauteng owed Microsoft R344 million.
This is a historical figure and the current balance has not been established.
For businesses, late payments can put pressure on cash flow and working capital, particularly for smaller suppliers that depend on government contracts. For multinational companies considering public-sector business, payment reliability and contract management are also important considerations.
Dunga said the provincial Treasury had identified more than 20 potential public-private partnership projects following roadshows with eight departments and entities in August. The projects cover areas including schools, hospitals, roads, water, energy and digital infrastructure. Fifteen departmental champions had been nominated to drive the process.
He said projects would be assessed for affordability and value for money before proceeding, adding that weak contract management and poor oversight were among the reasons PPPs could fail.
Infrastructure spending stood at R5.16 billion of the province’s R13.3 billion infrastructure budget, by the end of August.
The provincial Treasury also collected R3.09 billion of its R8.28 billion own-revenue target.
These figures highlight the financial and implementation challenges facing the province as it seeks to expand infrastructure investment and attract private-sector participation.
The question for businesses is whether Gauteng can turn its investment ambitions into a more predictable operating environment, where contracts are properly managed, projects are deliveredand suppliers are paid on time.
Attracting investors is one part of the challenge. Maintaining their confidence once they are doing business with government is another.
