Business leaders send an urgent warning to Ramaphosa
Business groups say the collapse of Johannesburg is a national economic emergency that needs to be urgently resolved.
In an open statement appealing to President Cyril Ramaphosa, the national government and political parties, major business groups have united in a call to stem Joburg’s decline and rebuild the city.
The groups include Business Leadership South Africa (BLSA), Business Unity South Africa (BUSA), and Business for South Africa (B4SA), representing thousands of businesses and major corporations.
They noted that businesses are the City of Johannesburg’s largest ratepayer group, with commercial properties representing 26.5% of property values and contributing 55.4% of property rates revenue.
“That gives us both a direct financial stake in the city’s recovery and a direct responsibility to act,” they said.
The groups said that Johannesburg itself accounts for 16% of South Africa’s GDP and is regarded as the country’s commercial capital.
It’s also where a disproportionate share of domestic and foreign investment decisions are made, they said.
“When Johannesburg is in a state of visible decline, it undermines the national growth story at precisely the moment a more positive narrative is gaining credibility.”
This makes the city’s collapse a national emergency.
Despite claims to the contrary, the city’s collapse, both physical and financial, is clear for all to see. There is no hiding from the fact it is in serious trouble.
The business groups noted that both the National Treasury and the national power utility, Eskom, have put the city on notice. The Auditor General has also flagged its dire finances.
“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,” they said.
Meanwhile, rates and service charges have increased by 124% in real terms over the past fifteen years, while service quality has deteriorated sharply. Property values have also fallen materially.
“This has made our residents and businesses poorer and reduced confidence in the city’s future,” they said.
Notably, this isn’t happening because of a lack of financial resources. Instead, corruption, criminality and maladministration appear to be increasingly entrenched within elements of the city, they said.
“The Auditor-General estimates annual losses of approximately R12 billion through unauthorised and irregular expenditure.”
Meanwhile, over R9 billion has had to be written off due to non-payment and theft from residents in the city who cannot or refuse to pay.
It’s time to put an end to the decline
The business groups said that the situation in Joburg is urgent and critical, and that businesses are ready to step in with funding and support to get South Africa’s economic heart pumping again.
However, this would only be possible with functional governance.
They stressed that the blame for Joburg’s collapse does not lie with a single administration, but rather results from a decade of failure by multiple governments and shifting coalitions.
Notably, the city has had 10 mayors in 10 years, with political parties and politicians frequently prioritising narrow, self-serving interests over the needs of the city and its residents during this time.
“Let us be clear: this is not about which political party governs Johannesburg, it is about how the city is governed,” the groups said.
With an 11th administration due to enter office through the 2026 local government elections, businesses are seeking strong commitments from government and political parties to address the problems.
The priorities include:
- Capital infrastructure that is adequately funded and maintained;
- Irregular and wasteful expenditure that is eliminated;
- Service delivery measured against clear indicators and reported on transparently;
- Leadership held accountable for outcomes; and
- Consequence management applied consistently and without exception.
Whichever administration commits to these will see support from businesses.
Addressing the current administration, the groups called for the immediate stabilisation of the city’s finances, transparent reporting and consequence management for corruption—starting now, not after the election.
For political parties contesting the elections, the groups said businesses want specific, costed commitments on how they will address the city’s fiscal crisis, restore infrastructure, and re-establish functional governance—not broad promises, but plans that can be held to account.
Finally, the groups called on President Cyril Ramaphosa and the national government to exercise their available powers to help deliver the city from its decline.
“We are prepared to deploy appropriate private sector resources into a programme of structured support for Johannesburg’s recovery,” the groups said.
But this is only “on the condition that we have a counterparty capable of governing scrupulously, delivering for the city, and being held to account.”
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