OPINION | Joburg's fall from grace points to all that's wrong about malpractice, collapse of service delivery

The collapse of Gauteng's economic hub is a political failure that affects us all

Pikitup overspends while refuse piles up on our streets. Johannesburg Roads Agency allows potholes to multiply, damaging vehicles and endangering lives, says the writer.
Pikitup overspends while refuse piles up on our streets. Johannesburg Roads Agency allows potholes to multiply, damaging vehicles and endangering lives, says the writer. (Veli Nhlapo)

Johannesburg was once the City of Gold, a gleaming metropolis whose skyline symbolised hope, jobs, and prosperity for multitudes.

It didn’t merely power Gauteng City region’s economy; it was the economic heartbeat of SA. In 2015, Johannesburg contributed around 40% of Gauteng’s gross domestic product, translating to roughly 16% of the national output. As Johannesburg falters, the shockwaves threaten to weaken SA’s entire economy, for no nation can thrive when its economic heart is dying.

Johannesburg’s share of the economy has grown by only 6.5% over nine years, far below inflation and a surging 22% population growth. This means Johannesburg is poorer per person today than it was 10 years ago, a direct result of ANC misrule and failing economic mismanagement.

In past years, Johannesburg was akin to a five-star restaurant, offering millions prosperity, employment, and hope. Today, however, that menu has been replaced with a recipe for disaster.

The central business districts in Gauteng are in decay, riddled with potholes, overrun with garbage, hijacked buildings, and rampant crime.

Decay and neglect continue to devastate Gauteng’s economy, affecting every resident. Stats SA reports Gauteng’s official unemployment rate rose to 34.7% in the first quarter of 2025, up from 34.4% in the fourth quarter of 2024, while the expanded rate climbed to 40%. Youth unemployment in Gauteng remains alarmingly high, at 62.4% for those aged 15-24. The effects are visible: shuttered shops, vacant factories, and the quiet despair stalking townships across the province.

The key to increasing jobs is economic growth. The key to growth is investment. Why do investors not invest? The number one factor is crime. Not only does crime deter investment, in many cases the target of criminals is public infrastructure. In short, this is economic sabotage. Every cable stolen is a power outage somewhere. Every vandalised transformer results in downtime for several businesses.

Another factor is that investors would rather invest their money where energy supply and other services are more reliable. Those who do invest have to put in generators and constantly buy diesel, which also adds to the cost of the goods we sell. In the end, South African goods are too expensive, and we lose market share to our competitors. Consequently, our companies go out of business, and jobs are lost.

To mask the rot, the ANC has whipped up a new special: a so-called “Bomb Squad” under ANC’s retired acolyte Snuki Zikalala, alongside the presidential Johannesburg working group, yet it’s all sizzle, no steak.

It’s classic ANC governance: failure cooked up in Luthuli House, served on a bed of chaos, and washed down with tanker water that’s anything but filtered. Instead of genuine economic growth, Joburg residents are left swallowing hollow promises while the ANC continues to charge five-star prices for a plate of stale crumbs. This is exemplified by the unjust R200 monthly electricity surcharge on prepaid users, regardless of income or consumption.

Since 2016, Johannesburg has endured the upheaval of nine different mayors because easily bought councillors in small parties caused relentless instability in fragile coalitions. This chaos has deprived residents of consistent basic services and robbed the local economy of certainty and vision. Alarmed by policy unpredictability, investors have fled, further eroding the city's prospects.

Meanwhile, our two other metros, Ekurhuleni and Tshwane, have not fared well under ANC misgovernance and internal squabbles over patronage.

Tshwane, our nation's capital, teeters on the brink of collapse, burdened by high-level corruption.

Johannesburg’s deterioration is an example of the broader crisis facing Gauteng under the ANC's dysfunctional administration, where cadre deployment, corruption, and poor governance hollow out the province’s economic foundations. This is not merely the growing pains of a young democracy. The truth is harsher: Gauteng, SA’s economic engine, is seizing up.

Its failure will cost all of us, black and white alike, regardless of political affiliation or heritage. Some seek to reduce this crisis to racial lines, but this is not a black-or-white issue. It is a green issue: about money, jobs, and survival.

If we continue to deny the magnitude of the governance crisis gripping this province, we risk watching the economic heart of our country stop beating altogether.

Once the lifeblood of Gauteng’s economy, small businesses are collapsing under the burden of red tape, corruption, and persistent service delivery failures. A 2023 Small Business Institute report confirmed that 60% of small firms surveyed in Gauteng cited government inefficiency and crime as the biggest threats to survival.

Despite this current picture of doom, Gauteng’s fate is not sealed. The Western Cape and DA-led municipalities demonstrate that where we govern, we govern better. Routinely, the City of Cape Town achieves clean audits, efficient services, and leadership with vision, which are standards.

In 2026, the voter’s choice is clear: we must demand competence over cadre deployment and clean governance over corruption. Gauteng’s downfall will become SA’s catastrophe if we fail to act.

  • Moriarty is DA Gauteng spokesperson for economic development

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