Johannesburg, Africa’s wealthiest city, with 12,300 millionaires, 25 centi-millionaires, and 2 billionaires, requires 221 billion rand ($12 billion) to address its infrastructure crises.
Per a city council review, this infrastructure challenge comes amidst widespread power outages caused by failures in the distribution network, prolonged pothole repairs, and huge water shortages, with some areas experiencing up to 11 days without water in March, Bloomberg reported.
These problems come at a huge economic cost. For instance, the country’s power issues have severely impacted its economy, taking a substantial chunk out of its GDP. The central bank estimated that $51 million is lost daily due to load shedding.
The work pileup “highlights significant risks to public safety, economic safety and the environment if not addressed,” the city said of the road network in the documents. “Ignoring the backlog could lead to deteriorating roads, unsafe bridges, flooding and increased accidents.”
Leadership instability amidst financial woes
Financial and political turmoil has plagued Johannesburg, a city of around 5 million people, which has seen eight mayors since 2019 due to ever-changing coalitions.
Last month, Johannesburg’s council implemented utility and rate hikes above the inflation rate and secured a 2.5 billion-rand loan from the Agence Francaise de Developpement, overcoming initial resistance from opposition parties.
The documents reveal that the city has consistently fallen short of its annual water infrastructure investment targets every year since at least 2008. Additionally, City Power, the municipal electricity utility, has “urgent needs for upgrades and replacement to ensure network reliability and safety.”
Another document, dated March 6, indicates that the city is facing significant challenges in revenue collection from major customers, including government departments and companies, with 6.1 billion rands of payments overdue by more than 90 days.
