Joburg prioritises infrastructure and service delivery in R83.1b budget

The City of Johannesburg (CoJ) has unveiled its R83.1b budget, prioritising investments in infrastructure renewal and service delivery to mitigate the impact of load-shedding and revitalise the city.

Focus on operational efficiency and infrastructure renewal

The finance member of the Mayoral Committee, Dada Morero, outlined the budget breakdown on May 4, saying R75.7b is allocated for operational expenditure, while the remaining R7.4b is reserved for capital expenditure projects.

Morero said CoJ had to make tough choices to ensure the budget aligns with the priorities outlined in the Integrated Development Plan (IDP).

“To systematically address these challenges, difficult choices and trade-offs had to be made to ensure the budget priorities and investments in the city’s IDP programmes drive revenue improvement and curb leakages while being mindful of the developmental needs in Johannesburg. Investments will drive revenue growth, curb leakages, and address our citizens’ developmental needs,” said Morero.

Key budget allocations:

• City Power: R4.2bn capital budget for infrastructure projects (three years).

• Johannesburg Water: R18.3b operational budget for water quality, sewer services, demand management, and theft prevention.

• R4.5b multi-year capital budget.

• Johannesburg City Parks and Zoo: R125.3m multi-year capital budget for zoo, parks, and cemetery upgrades.

• Joburg Theatre: R68m capital budget for upgrades across all three theatres (three years).

• Public transport: R300m investment in upgrading public transport facilities across the city.

• Health Department: R1.5b for programs, including maternal and child healthcare, HIV and Aids, communicable disease control, mobile clinics for increased access to primary healthcare and local female dignity packs initiative
Public safety: Encompassing emergency medical services, fire response, disaster relief, and building inspections.

Infrastructure upgrades: Parks, cemeteries, zoo infrastructure, and the Complete Streets programme promoting pedestrian and cyclist safety.

Good governance: Funding for councillor training and strengthening the ward committees and community participation structures.

Investing in infrastructure renewal

Morero said the CoJ is committed to refurbishing and replacing ageing infrastructure.

This includes these projects:

• Complete streets programme: Prioritising pedestrian and cycling infrastructure.

• Public environment upgrades: Enhancing public spaces across the city.

• Precinct upgrades programme: Targeted infrastructure improvements in areas like Fordburg, Jabulani, and Zandspruit.

• Microgrid electrification programme: Addressing the electrification backlog in informal settlements.

Resolving dispute with Eskom

The CoJ acknowledges an ongoing dispute with Eskom, the national electricity supplier. City Power, the city’s electricity distributor, contests a R1 073b debt claim from Eskom. City Power counters that Eskom might have overcharged them by R3.32b on bulk purchases.

“We are committed to resolving this dispute through independent mediation. This approach aims to find a mutually acceptable settlement and avoid costly legal proceedings,” said Morero.

Attracting private-sector investment

According to Morero, the CoJ actively attracts and supports private-sector investment, including partnerships with the National Business Initiative and the World Resource Institute. Additionally, the collaborations specifically focus on areas like Lanseria, where private funding contributes to bulk infrastructure development.

“Over R64b in private-sector investments have already been secured,” highlighted Morero.

“This staggering influx of capital has resulted in the development of state-of-the-art infrastructure and laid the foundation for transformative projects that will shape Johannesburg’s future.”

To incentivise private-sector investment further, the CoJ recognises the need to address ageing infrastructure and budgetary constraints. Partnerships also aim to mitigate climate change and develop sustainable funding mechanisms for infrastructure projects.