{"id":794289,"date":"2024-10-11T07:00:00","date_gmt":"2024-10-11T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=794289"},"modified":"2024-10-10T15:33:14","modified_gmt":"2024-10-10T13:33:14","slug":"south-africas-richest-city-is-collapsing","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/794289\/south-africas-richest-city-is-collapsing\/","title":{"rendered":"South Africa&#8217;s richest city is collapsing"},"content":{"rendered":"\n<p>Johannesburg, South Africa&#8217;s economic hub and largest city, has been on a downward spiral regarding basic service delivery, creating a stark contrast between its status as the wealthiest city in the country and the deteriorating conditions residents face.<\/p>\n\n\n\n<p>As South Africa&#8217;s financial epicentre, Johannesburg boasts the headquarters of numerous multinational corporations, critical financial institutions, and the largest stock exchange in Africa, the Johannesburg Stock Exchange (JSE).<\/p>\n\n\n\n<p>Despite its affluence and being home to an elite segment of society, the city has been grappling with collapsing infrastructure and inadequate service delivery, which reflect a governance crisis and raise questions about the city&#8217;s sustainability.<\/p>\n\n\n\n<p>The city\u2019s <strong>electricity woes<\/strong> are particularly emblematic of its struggles. Johannesburg\u2019s electricity distributor, City Power, has been unable to provide consistent and reliable service. <\/p>\n\n\n\n<p>In early 2024, residents faced frequent blackouts and power cuts, not just due to national load-shedding implemented by Eskom but also due to the city\u2019s own ageing and poorly maintained infrastructure.<\/p>\n\n\n\n<p>According to official statements from City Power, the electricity grid is under severe pressure due to infrastructure that is over 50 years old, significantly beyond its intended lifespan. <\/p>\n\n\n\n<p> City Power noted that it is facing a substantial maintenance backlog, and a significant portion of the city&#8217;s budget has been reallocated to emergency repairs.<\/p>\n\n\n\n<p>Despite efforts to address these challenges, City Power\u2019s operational capacity remains severely constrained. <\/p>\n\n\n\n<p>The grid suffers from frequent breakdowns, particularly during periods of high demand, leaving many residents in the dark for extended periods. <\/p>\n\n\n\n<p>The entity has also been financially burdened, struggling to recover debts from residents and businesses alike, many of whom cannot afford rising tariffs.<\/p>\n\n\n\n<p>The situation with <strong>water infrastructure<\/strong> is similarly dire. Johannesburg Water, responsible for the supply of potable water, has faced increasing difficulties with maintaining and upgrading the city&#8217;s water systems. <\/p>\n\n\n\n<p>In 2024, numerous suburbs experienced chronic water shortages, exacerbated by burst pipes, water leaks, and an outdated pipe network that has been neglected for decades. <\/p>\n\n\n\n<p>Official reports from Johannesburg Water indicate that nearly 40% of the city\u2019s water is lost through leaks and illegal connections before reaching consumers. <\/p>\n\n\n\n<p>This has triggered widespread frustration among residents who often go days or weeks without water, a shocking reality for a city that is supposed to be the wealthiest in the country.<\/p>\n\n\n\n<p>Alongside electricity and water, the neglect of other essential services like road maintenance has further deteriorated the quality of life in Johannesburg. <\/p>\n\n\n\n<p>The <strong>city&#8217;s roads<\/strong>, particularly in suburban areas, are riddled with potholes, some so large and numerous that they cause traffic accidents and damage vehicles. <\/p>\n\n\n\n<p>In the past, the Johannesburg Roads Agency has admitted to being severely underfunded, with budget allocations insufficient to meet the growing demand for road repairs. <\/p>\n\n\n\n<p>It has been noted that long-term needs could require as much as R81.5 billion over the next decade. <\/p>\n\n\n\n<p>The <strong>broader financial challenges<\/strong> of Gauteng province, in which Johannesburg is located, compound these local crises. <\/p>\n\n\n\n<p>Lebogang Maile, the MEC for Finance and Economic Development, warned that the province was in a precarious financial position. <\/p>\n\n\n\n<p>He stated that Gauteng was facing a budget cut of R15 billion, which would drastically affect its ability to provide services. <\/p>\n\n\n\n<p>Maile went so far as to suggest that Gauteng could face bankruptcy by as early as June 2025 if the government did not take immediate action to rein in spending. <\/p>\n\n\n\n<p>&#8220;Our fiscal outlook is very grim,&#8221; Maile said in a provincial address. &#8220;If we do not cut back and reprioritise our budget, we will not be able to sustain our operations beyond next year.&#8221;<\/p>\n\n\n\n<p>Maile\u2019s comments have sparked widespread concern about the province&#8217;s financial health, given that Gauteng is responsible for a substantial portion of South Africa\u2019s GDP. <\/p>\n\n\n\n<p>Johannesburg, Gauteng&#8217;s economic heart, relies heavily on the provincial budget to maintain its infrastructure and services. <\/p>\n\n\n\n<p>However, with billions of rands in budget cuts, essential services like electricity, water, and roads are likely to suffer further declines.<\/p>\n\n\n\n<p>Despite Johannesburg&#8217;s status as South Africa\u2019s richest city, home to luxury suburbs, large business districts, and wealthy individuals, the reality on the ground paints a very different picture for its residents.<\/p>\n\n\n\n<p>If these issues are not addressed, the city could face continued degradation, jeopardising its status as South Africa\u2019s economic powerhouse. <\/p>\n\n\n\n<p>With mounting debt, collapsing infrastructure, and a looming financial crisis, Johannesburg\u2019s future remains on shaky ground.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/government\/794014\/state-of-disaster-declared-in-one-south-african-province\/\">State of disaster declared in one South African province<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With mounting debt, collapsing infrastructure, and a looming financial crisis, Johannesburg\u2019s future is on shaky ground.<\/p>\n","protected":false},"author":92,"featured_media":794448,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[2016,7376,13848,9609,20669,853],"class_list":["post-794289","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-city-of-johannesburg","tag-city-power","tag-johannesburg-water","tag-jra","tag-mec-for-finance-and-economic-development","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/794289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=794289"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/794289\/revisions"}],"predecessor-version":[{"id":794320,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/794289\/revisions\/794320"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/794448"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=794289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=794289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=794289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}