The South African business sector has issued an urgent call to political parties and the national government to immediately stabilize the financial and governance crisis of the City of Johannesburg.
Ahead of the upcoming local government elections, business leaders call for specific, cost-effective recovery plans, consequence management for corruption and proactive national intervention to prevent an economic emergency.
Johannesburg is the commercial capital of South Africa, accounting for approximately 16% of national GDP and is the central hub where a disproportionate share of domestic and foreign investment decisions are taken.
While the broader South African economic trajectory is showing signs of improvement – highlighted by energy sustainability and positive sovereign credit rating momentum – the visible decline of the city of Johannesburg threatens to undermine the country's growth story, Business warns.
The leaders of Business Unity South Africa, Business Leadership South Africa and the Business for South Africa steering committee insist that this is not a local political dispute, but a serious national economic emergency.
They note that the City of Johannesburg's challenges have escalated to breaking point due to a number of alarming indicators, including an unfunded adjustment budget, which has prompted National Treasury to place the Metro on formal notice, with the July 2026 equal share allocation currently at risk.
State utility Eskom has also warned that it may suspend or disrupt power supply to the city due to mounting electricity debt.
Capital expenditure has fallen to 6% of the city budget, with maintenance expenditure at 0.5% of the asset value, about one-eighteenth of the metro average.
And, the Auditor-General estimated an annual loss of approximately R12 billion due to unauthorized, irregular and wasteful expenditure.
Business notes that the administration is constantly changing as a result of the fragile coalition, which has produced ten mayors in the past decade.
Business leaders say the trade will remain non-partisan, but it will not be passive.
Business leaders want immediate, concrete change rather than empty promises, urging political parties to stabilize the city's finances now, not after the next election.
They want to eliminate irregular expenditure and clear, transparent reporting against specific service delivery indicators, and enforce accountability for corruption and maladministration “consistently and without exception”.
He says all parties contesting the elections must provide specific, costed commitments about plans to address the fiscal crisis, restore infrastructure and re-establish functional governance.
Because these structural and financial crises exceed the capabilities of current city-level leadership, business leaders are urging President Cyril Ramaphosa And the national unity government will have to intervene.
The national government is being urged to use available powers to drive structural reforms, assist with financial stabilization and ensure that consequence management is applied where governance standards fail.
Additionally, drawing on the successes of national government-business partnerships that have led to measurable progress in energy and freight logistics, the private sector says it stands ready to lend its expertise, execution capacity and resources.
However, he says this is conditional on having a “competent, honest counterpart” who can be held accountable.