{"id":862523,"date":"2026-06-04T13:05:00","date_gmt":"2026-06-04T11:05:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=862523"},"modified":"2026-06-04T13:07:46","modified_gmt":"2026-06-04T11:07:46","slug":"business-leaders-send-an-urgent-warning-to-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business-opinion\/862523\/business-leaders-send-an-urgent-warning-to-south-africa\/","title":{"rendered":"Business leaders send an urgent warning to Ramaphosa"},"content":{"rendered":"\n

Business groups say the collapse of Johannesburg is a national economic emergency that needs to be urgently resolved.<\/p>\n\n\n\n

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. <\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

“That gives us both a direct financial stake in the city’s recovery and a direct responsibility to act,” they said.<\/p>\n\n\n\n

The groups said that Johannesburg itself accounts for 16% of South Africa’s GDP and is regarded as the country’s commercial capital. <\/p>\n\n\n\n

It’s also where a disproportionate share of domestic and foreign investment decisions are made, they said.<\/p>\n\n\n\n

“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.”<\/p>\n\n\n\n

This makes the city’s collapse a national emergency.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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. <\/p>\n\n\n\n

“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.<\/p>\n\n\n\n

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. <\/p>\n\n\n\n

“This has made our residents and businesses poorer and reduced confidence in the city’s future,” they said.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

“The Auditor-General estimates annual losses of approximately R12 billion through unauthorised and irregular expenditure.”<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

It’s time to put an end to the decline<\/h2>\n\n\n\n
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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.<\/p>\n\n\n\n

However, this would only be possible with functional governance.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Notably, the city has had 10 mayors in 10 years<\/strong><\/a>, with political parties and politicians frequently prioritising narrow, self-serving interests over the needs of the city and its residents during this time.<\/p>\n\n\n\n

“Let us be clear: this is not about which political party governs Johannesburg, it is about how the city is governed,” the groups said.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

The priorities include:<\/p>\n\n\n\n