Johannesburg’s Golden Era Fades
Once celebrated as Africa’s economic powerhouse and the “City of Gold,” Johannesburg now confronts a deepening crisis that threatens its role as South Africa’s financial and commercial hub. Business leaders, analysts, civic groups and the National Treasury have warned that the city’s infrastructure, finances and governance are deteriorating at an alarming pace.
The Scale of Decline
Johannesburg is home to nearly five million residents, making it one of the continent’s most diverse and cosmopolitan urban centres. Yet the city’s gleaming façade masks mounting problems:
- An infrastructure backlog exceeding 220 billion rand (≈ US $13 billion), according to Mayor Dada Morero’s office.
- Water losses of 44.7 % due to leaks, theft and damaged pipes, as reported by the city’s comptroller.
- Electricity losses rising to 27.1 % of supply.
- Unpaid municipal bills totalling 71.9 billion rand (≈ US $4.4 billion) by the end of 2025.
These figures place Johannesburg’s fiscal health under severe strain and signal a growing risk to the national economy.
Infrastructure and Service Delivery
Residents and businesses experience daily disruptions that stem from years of under‑investment and mismanagement:
- Traffic lights remain out for days or weeks at a time.
- Roads are riddled with potholes and sinkholes, some large enough to damage vehicles.
- Suburbs endure prolonged water outages while substations fail or become overloaded.
- Sewage spills into streets and rivers, illegal dumping proliferates, and refuse collection is irregular.
Kevin Allan, Managing Director of Municipal IQ—a data and intelligence service that monitors all 257 South African municipalities—describes the situation as a “national economic risk.” He notes that almost every key indicator—infrastructure, finance and service delivery—is moving in the wrong direction.
Voices from Civic and Business Leaders
Critics argue that the city’s decline is not accidental but the result of systemic failures:
“The city’s municipal units are shackled by layers of inefficiency and political interference,” says Herman Mashaba, former Johannesburg mayor (2016‑2019) and current ActionSA representative.
Julia Fish, Executive Director of JoburgCAN, points to weak enforcement, inconsistent oversight and limited administrative capacity as the root causes of the decay. Busi Mavuso, Managing Director of Business Leadership South Africa, warns that water outages and municipal mismanagement now threaten business continuity across all sectors.
International investors are taking note. A recent Wall Street Journal report highlighted that multinational firms are scaling back or halting operations in South Africa due to corruption, crime, poor infrastructure and government inefficiency. Crime alone is estimated to cost the South African economy roughly 10 % of GDP annually.
Political Landscape and the Mayoral Race
The upcoming municipal election on 4 November 2025 has brought former Western Cape Premier Helen Zille back to Johannesburg’s political forefront. Zille, who led the Democratic Alliance from 2007 to 2015 and served as Premier of the Western Cape from 2009 to 2019, is running for mayor of her native city.
In interviews with African Business, Zille characterised Johannesburg as “technically bankrupt,” citing an unfunded budget and obligations the city cannot meet. She warned that the National Treasury’s Finance Minister, Enoch Godongwana, could withhold the city’s share of the national municipal budget—a move that would deepen the fiscal crisis.
Zille also criticised the city’s service‑delivery entities, describing them as “complete failures” that have been used to siphon funds through corrupt deals. She argued that while some competent professionals remain within the administration, most senior staff are appointed based on political loyalty rather than expertise, serving the interests of the ruling ANC rather than the populace.
When asked about the political roots of Johannesburg’s decline, Zille noted that three decades of ANC dominance have eroded accountability: “Because the ANC repeatedly secured an overall majority, it forgot its responsibilities and used its power to enrich itself and its networks.”
Looking Ahead
Reversing Johannesburg’s trajectory will require coordinated action across multiple fronts:
- Transparent budgeting and rigorous audit mechanisms to curb unlawful spending.
- Targeted investment in water and electricity infrastructure to reduce losses.
- Strengthening municipal management through merit‑based appointments and capacity‑building programmes.
- Enhanced collaboration between the city, provincial authorities and the National Treasury to ensure fiscal sustainability.
- Community‑led monitoring initiatives, such as those promoted by JoburgCAN, to improve oversight of tax collection and expenditure.
While the challenges are formidable, the city’s entrepreneurial spirit, cultural vibrancy and diverse population remain assets that could drive renewal—provided leadership embraces accountability, competence and a genuine commitment to serving all residents.
References
- Mayor Dada Morero’s office, Infrastructure Backlog Report, 2025.
- City of Johannesburg Comptroller, Water and Electricity Loss Statistics, 2025.
- Municipal IQ, Municipal Performance Dashboard, accessed September 2025.
- JoburgCAN, Annual Governance Review, 2024.
- Business Leadership South Africa, Impact of Municipal Mismanagement on Business, 2025.
- Wall Street Journal, “Foreign Firms Pull Back from South Africa,” March 2025.
- African Business Interview with Helen Zille, October 2025.
