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Home Business & Economy

Johannesburg needs $12bn for critical infrastructure upgrades

by Editorial Staff
2 years ago
in Business & Economy
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JOHANNESBURG, known as Africa’s wealthiest city due to its business hubs and numerous millionaires, urgently needs 221 billion rand ($12 billion) to address critical maintenance and overdue upgrades across its failing road, power, and water systems. The city’s infrastructure woes are compounded by financial struggles and political instability, leading to significant risks for public safety and economic stability, according to a report by Bloomberg.

Recent discussions within the city council highlighted the severe infrastructure shortfall. Documents reviewed by Bloomberg reveal regular power outages caused by breakdowns in the distribution network, months-long delays in fixing potholes, and water shortages that left parts of the city dry for up to 11 days in March. The city’s backlog in maintenance is a ticking time bomb, threatening public safety, economic growth, and environmental health.

Johannesburg, a city of nearly 5 million people, has experienced financial and political turmoil, having had eight mayors since 2019 due to unstable political coalitions. Currently, the African National Congress (ANC) and Economic Freedom Fighters (EFF) dominate the ruling coalition with a combined 119 seats, but they have installed a mayor from the Al-Jama-ah party, which holds only three seats in the 270-member council.

This stands in contrast to the national government, where the ANC, having lost its majority in May elections for the first time in three decades,

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has allied with the Democratic Alliance and other parties to govern, with the EFF in opposition.

Amid these challenges, Johannesburg’s council recently approved above-inflation increases for utilities and rates and secured a 2.5 billion-rand loan from the Agence Francaise de Developpement despite opposition. The City of Johannesburg did not respond to multiple requests for comment.

Documents show the city has failed to meet its annual targets for water infrastructure investment since at least 2008. The city’s electricity utility, City Power, also urgently needs upgrades and replacements to ensure network reliability and safety.

Another document dated March 6 highlights the city’s difficulties in collecting revenue from large customers, including government departments and companies, with 6.1 billion rand in payments more than 90 days overdue.

Johannesburg’s crumbling infrastructure and political instability underscore the urgent need for effective governance and substantial investment. Addressing these issues is crucial for safeguarding public safety and ensuring economic stability in one of Africa’s most vital urban centres.

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