Johannesburg’s mayor has been given 14 days to explain how the city plans to recover 24.4 billion rand ($1.4 billion) lost through what has been described as “unauthorised, irregular, fruitless, and wasteful expenditure.”
Finance Minister Enoch Godongwana issued the directive, warning that if no clear plan is presented, Johannesburg risks losing a portion of its funding from the national government, according to a Bloomberg report.
The city, often seen as Africa’s richest due to its concentration of businesses and millionaires, is home to the continent’s largest stock exchange and several major corporations. Despite this, Johannesburg is facing a breakdown in basic services.
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Business Insider Africa previously reported that the city requires an estimated 221 billion rand ($12 billion) to address its mounting infrastructure problems.
These include roads filled with potholes, ongoing electricity and water outages, and high crime levels.
President Cyril Ramaphosa’s government currently provides 15% of Johannesburg’s 89 billion rand annual budget.
Losing even part of this support could worsen conditions in the city, which is already under strain.
The pressure comes as Johannesburg prepares to host global leaders at a major international summit in November, drawing more attention to its infrastructure failures.
South Africa has stepped up efforts to repair its infrastructure in recent years, attempting to reverse the damage caused by years of poor governance and neglect.
In March, the government launched a $3 billion partnership with the World Bank aimed at restoring essential services and improving infrastructure across eight major cities.
In June, the bank also approved a $1.5 billion loan to support broader structural reforms, focusing on infrastructure upgrades and reviving economic growth.
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Image Credit: Fundudzi Media (Pty) Ltd
