Johannesburg: Wealthiest City in Africa in Need of $12 Billion for Infrastructure Crisis

Johannesburg, the wealthiest city in Africa with a significant concentration of businesses and approximately 12,300 millionaires, is grappling with a severe infrastructure crisis. The city urgently needs $12 billion to tackle a backlog of maintenance and necessary upgrades for its deteriorating road, power, and water systems.

Documents reveal urgent discussions within the city council, underscoring the severity of the shortfall, which is further exacerbated by frequent power outages and widespread service failures. Some areas of Johannesburg have faced power and water shortages lasting up to 11 days, while potholes go unrepaired for months, posing serious risks to public safety and economic stability.

The city’s road network has been identified as a critical area of concern. An assessment report notes, “The current state of the roads poses significant risks to public safety, economic security, and environmental sustainability.” The report warns that failure to address these issues could lead to further infrastructure degradation, unsafe bridges, increased flooding, and a rise in traffic accidents.

This crisis unfolds against a backdrop of political and financial instability. Johannesburg, home to approximately 5 million people, has had eight different mayors since 2019, a result of volatile coalition politics. The African National Congress (ANC) and the Economic Freedom Fighters (EFF), the largest parties in the city’s ruling coalition, installed a mayor from the Al-Jama-ah party, despite it holding only three of the 270 council seats.

This political instability contrasts sharply with the national scene, where the ANC, having lost its parliamentary majority in the May elections for the first time in three decades, has formed a coalition government with the Democratic Alliance and several smaller parties, while the EFF remains in opposition.

To address the financial shortfall, Johannesburg’s council has implemented above-inflation increases in utilities and rates and secured a $135 million loan from the Agence Française de Développement despite initial resistance from opposition parties. The city’s financial difficulties are compounded by challenges in revenue collection, with a document dated March 6 revealing that the city is struggling to collect $330 million in overdue payments from large customers, including government departments and corporations.

Johannesburg’s infrastructure woes reflect broader concerns across Africa. Nigeria, once seen as the continent’s economic giant, requires $100 billion annually for the next 30 years to bridge its infrastructure deficit. Lagos State, one of Africa’s wealthiest cities, allocated $3.25 million, representing 24.28% of its 2024 budget, for infrastructure development and maintenance.

A report by Nanyang Technological University’s Centre for African Studies noted that Nigeria’s economic growth is significantly hindered by critical infrastructure gaps. Titled “Back to Growth: Priority Agenda for the Economic Revival of Nigeria,” the report emphasizes that the country’s underdeveloped transport networks, inadequate power supply, and insufficient public services are slowing down economic progress, with Nigeria’s infrastructure budget representing less than 5% of the $100 billion required annually.

As Johannesburg and other African cities face these formidable challenges, the urgency of addressing infrastructure deficits becomes increasingly evident, highlighting a critical need for comprehensive and sustained investment in infrastructure to ensure economic stability and growth.

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