Business leaders demand national govt step in to rescue Joburg from economic collapse

विवरण

Business leaders demand national govt step in to rescue Joburg from economic collapse The South African business sector has issued an urgent call to political parties and national government to immediately stabilise the City of Johannesburg's fiscal and governance crisis. Ahead of the upcoming local government elections, business leaders demand specific, costed recovery plans, consequence management for corruption, and active national intervention to prevent an economic emergency. Johannesburg is the commercial capital of South Africa, accounting for about 16% of the national GDP and is the central hub where a disproportionate share of domestic and foreign investment decisions are made. While the broader South African economic trajectory is showing signs of recovery – highlighted by energy stability and positive sovereign credit rating momentum – the visible decline of the City of Johannesburg threatens to undermine the country's growth story, business warns. Leaders from the Business Unity South Africa, Business Leadership South Africa and the Business for South Africa steering committee emphasise that this is not a localised political dispute, but a critical national economic emergency. They note that City of Johannesburg's challenges have escalated to a tipping point owing to several alarming indicators, that includes an unfunded adjustment budget, prompting National Treasury to place the metro on formal notice, with the July 2026 equitable share allocation currently at risk. State utility Eskom has also warned it may suspend or throttle electricity supply to the city over mounting bulk electricity debt. Capital expenditure has dropped to 6% of the City's budget, with maintenance spending standing at 0.5% of asset value, roughly one-eighteenth of the metro average. And, the Auditor-General estimated yearly losses of about R12-billion owing to unauthorised, irregular, and wasteful expenditure. Business notes that fragile coalitions have resulted in a constantly changing administration, producing ten m