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Alarming new report finds that if Joburg fails, SA fails

Umamah Bakharia
26 August 2026 | 12:15 CAT
2-minute read

Image: Stock Photo

Johannesburg is sitting on the periphery of total collapse, with experts warning that the deterioration of South Africa’s economic hub could have consequences far beyond the city. A new report by the Centre for Development and Enterprise (CDE), Johannesburg Matters: Fixing South Africa’s Growth Machine, argues that preventing the collapse of Johannesburg must become an urgent national priority.

Political analysts and academics Professors Boitemulo Senokoane and Bheki Mngomezulu joined Radio Islam International to unpack the warning, offering perspectives on the city’s governance, political instability and mounting financial pressures.

Senokoane said Johannesburg’s importance cannot be separated from the wider economy, pointing to its almost R98 billion budget for the 2026/27 financial year.

“What happens in Johannesburg, as the hub of the economy on the continent, anything that goes wrong there, impacts across the globe by default,” he said.

Mngomezulu was equally blunt about the state of the city, saying that despite not living there, his visits leave him concerned.

“Each time I go to Joburg, I come back demoralised. You look at the state of the city, and then you ask yourself, ‘What went wrong?’” he said.

The CDE report paints a bleak picture. Johannesburg owes creditors R25.2 billion while holding only R3.9 billion in cash. Johannesburg Water faces an infrastructure backlog of R26.6 billion, while the city’s ageing pipes could take nearly 200 years to replace at current spending rates. Electricity infrastructure has a R44 billion backlog, with more than 54,000 power outages recorded between July and December 2025.

During the interview, host Moulana Sulaimaan Ravat pressed the academics on how the city reached this point and whether the problems could be attributed to political leadership, poor revenue collection or corruption.

Senokoane identified several contributing factors, including non-payment for services, water and electricity losses, poverty, unemployment and corruption. He also pointed to political instability, saying frequent changes in leadership have made it difficult to maintain consistent strategies.

Mngomezulu rejected the idea that Johannesburg’s decline is beyond repair.

“These problems, in my view, are not necessarily impossible; they are man-made, and they can be corrected,” he said.

The political future of the city was also questioned, particularly as coalition governments become increasingly likely. Moulana Sulaimaan Ravat pointed out that several major parties have already had opportunities to influence Johannesburg’s leadership, yet the crisis persists.

Mngomezulu said coalitions themselves are not necessarily the problem, but politicians must learn how to govern within them.

“Coalitions are a reality, and therefore our politicians must learn how to run a sustainable coalition government for the benefit of the people,” he said.

For Johannesburg, the challenge now extends beyond repairing roads, pipes and power infrastructure. The city must also restore financial discipline, political stability and public confidence.

As the CDE report warns, if Johannesburg fails, the consequences may not stop at the city’s borders.

Listen to the full interview on Sabaahul Muslim with Moulana Sulaimaan Ravat.

 

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