Concerns are mounting over the City of Johannesburg’s financial sustainability following the approval of its R97.1 billion budget, with civil society warning that the metro may lack the resources to deliver on promised projects while residents face steep tariff increases.
The executive director of JoburgCAN and member of the Johannesburg working group for finance and governance said that while some adjustments in the final budget were welcome—including an increase in maintenance allocation from 4% to 8% of asset value, aligning with National Treasury guidelines—the city likely does not have sufficient cash reserves to execute its commitments.
“The budget won’t make a massive improvement for most residents,” the civil society representative stated. “At the end of the day, we don’t think they’re going to have enough cash on hand to actually deliver the projects that they’ve promised.”
The budget was tabled amid warnings from the Deputy Mayor and Member of the Mayoral Committee for Finance regarding necessary tariff hikes as the city contends with mounting debt and significant infrastructure backlogs.
A particular point of contention raised by the JoburgCAN representative is the growth in executive remuneration. She noted that the city allocates approximately 30% of its budget to staff costs. While the Politically Facilitated Agreement (PFA), which ensures a fair living wage for lower-income workers, is not disputed, she questioned the expansion of senior management roles by over 1,500 positions.
She further challenged the justification that heads of city entities—such as City Power, Joburg Water, Pikitup, and the Johannesburg Property Company—require private-sector competitive salaries. “These executives have been promoted from within; they’ve been in the public sector their whole careers,” she said. “You’re not competing with the private sector for the best of the best.”
Although the salary for the head of one major city entity was reduced by nearly R1 million, it remains above R4 million annually. With 13 city entities compensating leadership at similar levels, the representative argued the city cannot sustain these expenditures.
On public participation, the civil society spokesperson said that community groups have consistently submitted input on the Integrated Development Plan, budget, and tariff documents, and have requested early access to help shape policy. “That’s never happened,” she noted. While some public comments were incorporated into the final budget, she expressed doubt that public participation is being fully heeded.
The representative also addressed the Presidential Johannesburg Working Group on finance and governance, which was recently restructured after its initial work stream proved non-functional. She highlighted that critical issues flagged by the Auditor-General and the Minister of Finance—such as accountability gaps and a prolonged billing crisis—remain unresolved. A document on the billing crisis, she added, has sat before relevant teams for nearly a year without action.
While presidential oversight brings political weight, the spokesperson explained that the working group’s activities must align with projects already outlined in the city’s IDP, limiting its ability to fund new interventions. The group initially anticipated a model similar to the eThekwini presidential intervention, focused on visible beautification projects. However, stakeholders now recognize that Johannesburg’s challenges are more deeply entrenched.
Some progress is noted in Treasury-led municipal services trading reforms, including ring-fencing budgets. The representative suggested that if ring-fencing successfully consolidates work streams under entities like Joburg Water, repairs such as fixing leaks could accelerate. However, similar allocations have not been extended to the Johannesburg Roads Agency. Residents frequently report that while burst pipes are disruptive, the prolonged delay—often six to twelve months—to reinstate roads and fill potholes represents a more visible and persistent failure.
Finally, while the city’s budget projects increased revenue collection, the civil society spokesperson underscored the practical challenge: many residents either cannot afford to pay or have stopped paying due to dissatisfaction with services. “The key thing is actually getting people to pay what they owe,” she said, emphasizing that sustainable service delivery depends on both fiscal discipline and restored public trust.
