ECONOMIC EMERGENCY OP-ED: If Joburg fails, SA pays: Business leaders issue call to rebuild City

South Africa is showing signs of economic recovery, but Johannesburg’s fiscal collapse, governance failures and political instability risk undermining national growth and investor confidence.

Business is deeply committed to South Africa and believes strongly in its long-term potential. SA’s economic trajectory is improving. Business confidence is recovering, energy stability has been restored, and the country’s first sovereign credit rating upgrade in 20 years signals genuine momentum. Sustaining and accelerating that momentum requires Johannesburg to function.

Johannesburg accounts for approximately 16% of SA’s GDP. It is the country’s commercial capital and the city where a disproportionate share of domestic and foreign investment decisions are made. When Johannesburg is in a state of visible decline, it undermines the national growth story at precisely the moment that a more positive narrative is gaining credibility. This is not a local political problem. It is a national economic emergency.

Johannesburg’s fiscal and governance crisis has been building for years. It is not a new or partisan issue, and the failures of the past decade have occurred under successive administrations and shifting coalition arrangements. What is new is the severity and urgency of the situation.

The minister of finance has formally placed the City on notice: its adjustment budget is unfunded, it is in severe financial distress, and the July 2026 equitable share instalment is at risk unless corrective action is taken immediately. Eskom has indicated it may suspend electricity supply to the City over unpaid debt.

The situation is serious, and it is the result of accumulated failures, not of a single administration.

The data is not in dispute. Capital expenditure has collapsed to 6% of the City’s budget. Maintenance spending stands at 0.5% of asset value, roughly one-eighteenth of the metro average. Rates and service charges have increased by 124% in real terms over the past 15 years, while service quality has deteriorated sharply.

The situation is not due to a lack of financial resources. Corruption, criminality and maladministration appear to be increasingly entrenched within elements of the City. The Auditor-General estimates annual losses of approximately R12-billion through unauthorised and irregular expenditure.

Property values have fallen materially. This has made our residents and businesses poorer and reduces confidence in the City’s future.

Fragile and unstable coalitions have produced 10 mayors in 10 years, making coherent long-term governance virtually impo