TEBOGO MORAKA | Joburg’s financial problems are a reflection of broader national realities

In any thriving democracy, a robust and independent media is indispensable. The ability to inform citizens, facilitate public debate and hold government accountable is a hard-won democratic achievement that South Africans must continue to protect and strengthen.

As the Fourth Estate, the media plays a vital role in ensuring transparency and accountability. Equally important, however, is the responsibility to present issues fairly, accurately and within their full context.

Recent reporting on the City of Johannesburg’s finances, infrastructure challenges and service delivery concerns has generated significant public debate.

While scrutiny of government performance is both necessary and welcome, it is important that Johannesburg’s challenges are understood within the broader realities confronting local government in South Africa.

The prevailing narrative often portrays Johannesburg as an isolated case of municipal dysfunction. Yet the evidence points to a much larger national challenge.

Municipalities across the country are grappling with financial pressures, declining revenue collection, ageing infrastructure, rising bulk-service costs and increasing demand for services from communities facing their own economic hardships.

According to national government statistics, more than 60% of South Africa’s municipalities are experiencing varying degrees of financial distress. This reality reflects broader economic conditions affecting households, businesses and communities nationwide.

As of December 2025, municipal consumer debt in South Africa was about R467bn, with households accounting for more than 70% of the outstanding amount. These are not challenges unique to Johannesburg; they are systemic issues confronting local government as a whole.

Johannesburg, as the country’s economic hub and largest metropolitan municipality, faces the added responsibility of maintaining extensive infrastructure networks while accommodating continued urbanisation and population growth. The demands placed on the city are immense and continue to increase annually.

It is also important to place current debates around municipal tariffs and charges in context. Municipalities rely heavily on service charges and property rates to fund the delivery of essential services such as water, sanitation, electricity, roads, waste management and public infrastructure. These services must be maintained, upgraded and expanded despite increasing input costs.

Comparative data from major metropolitan municipalities demonstrates that many of the tariff adjustments being implemented are not unique to Johannesburg.

Across South Africa’s metros, municipalities are adjusting their pricing structures to respond to rising bulk water and electricity costs, infrastructure investment requirements and financial sustainability concerns.

The debate should, therefore, focus not only on the tariffs themselves but also on the broader question of how local government can be sustainably funded to meet its constitutional obligations.

The SA Local Government Association (Salga) has consistently highlighted the structural challenges facing municipalities.

In its engagements with parliament, Salga has argued that local government is constrained by an outdated fiscal framework that does not adequately reflect the growing responsibilities placed on municipalities.

Escalating bulk service costs, unfunded mandates and infrastructure renewal requirements place significant strain on municipal finances.

Salga estimates that municipalities collectively face an infrastructure renewal and maintenance backlog of more than R1.5-trillion. This challenge affects municipalities of all sizes and underscores the need for a national conversation about the future sustainability of local government.

Encouragingly, the government has recognised the need for reform. The publication of the Reviewed Draft White Paper on Local Government by the minister of co-operative governance and traditional affairs, Velenkosini Hlabisa, signals an important opportunity to reimagine and strengthen the local government system.

The review seeks to address many of the structural issues municipalities have grappled with for years and could help shape a more sustainable and effective model of municipal governance for the future.

The story of Johannesburg cannot be separated from the story of local government in South Africa. The challenges facing the city are, in many respects, reflections of broader national realities. Equally, the solutions required will demand collective action from all spheres of government, the private sector, communities and organised civil society.

South Africans deserve a comprehensive understanding of these realities. Public debate is strongest when it is informed by context, evidence and a recognition of the systemic factors shaping municipal performance.

Johannesburg’s story is not simply a municipal story; it is part of the broader South African story of local government reform, resilience, and renewal.