The City of Johannesburg has unveiled its R83.1 billion 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
Finance Member of the Mayoral Committee, Councillor Dada Morero, said R75.7 billion is allocated for operational expenditure, while the remaining R7.4 billion is reserved for capital expenditure projects.
MMC Morero said the City had to make tough choices to ensure that the budget aligns with the priorities outlined in the Integrated Development Plan (IDP).
“To systematically address these challenges, difficult choices and trade-off had to be made to ensure that the budget priorities and investments in City’s IDP programmes drive revenue improvement, curb leakages, whilst being mindful of the developmental needs in Johannesburg.” he said.
"Investments will drive revenue growth, curb leakages, and address the developmental needs of our citizens."
Key Budget Allocations:
• City Power: R4.2 billion capital budget for infrastructure projects (3 years).
• Johannesburg Water: R18.3 billion operational budget for water quality, sewer services, demand management, and theft prevention.
R4.5 billion multi-year capital budget.
• Johannesburg City Parks and Zoo: R125.3 million multi-year capital budget for zoo, parks, and cemetery upgrades.
• Joburg Theatre: R68 million capital budget for upgrades across all three theatres (3 years).
• Public Transport: R300 million investment in upgrading public transport facilities across the city.
The city has made adjustments to its revenue streams for the current fiscal year, which encompass increases in property rates, as well as tariffs for electricity, water, refuse, and sanitation.
Property rates revenue stands as the City's third-largest income source, funding essential services such as healthcare, community development, road maintenance, cemetery upkeep, park management, and library services.
Morero noted that in the 2024/25 fiscal year, the initial proposal for the property rates increase was 4.8%, based on the CPI assumption used in the budget. “Despite that initial proposal of 4.8% being the lowest amongst all metros, in the final budget, we are proposing a further 1% reduction to a tariff increase of 3.8%,” he said.
Other proposed tariff increases include:
A 12.7% increase in electricity tariffs
A 7.7% increase in water and sanitation tariffs
A 5.9% increase in refuse tariffs
Morero commented on the proposed property rate increase of 3.8% and other service adjustments, stating that these increases would facilitate the continued provision of rates-funded services and investment in infrastructure to mitigate the impact of power outages.
He added that the electricity tariff increase is anticipated to generate revenue of R22 billion, which City Power will utilise to address daily service delivery requirements. These include purchasing power from Eskom and Kelvin, repairing and installing streetlights, responding to service disruptions, conducting preventive maintenance, and safeguarding infrastructure against theft and vandalism.
Similar initiatives are planned for water services. Johannesburg Water's operational budget allocation of R18.3 billion, along with an additional R4.5 billion multi-year capital budget, will prioritise the upgrading and renewal of networks, expansion of wastewater treatment facilities, enhancement of reservoir storage capacity, and implementation of water demand management strategies.
In the next five years, plans include the replacement of 77.8 km of water networks and 73.6 km of sewer networks.
Attracting Private Sector Investment
According to MMC Morero, the City is actively attracting and supporting private sector investment. This includes partnerships with organisations like the National Business Initiative and the World Resource Institute. Additionally, collaborations focus on specific areas like Lanseria, where private funding contributes to bulk infrastructure development.
"Over R64 billion in private sector investments have already been secured," highlighted MMC Morero. " This staggering influx of capital has not only resulted in the development of state-of-the-art infrastructure but has laid the foundation for transformative projects that will shape the future of Johannesburg.”
The City recognises the need to address ageing infrastructure and budgetary constraints to further incentivise private sector investment. Partnerships also aim to mitigate climate change and develop sustainable funding mechanisms for infrastructure projects.
Johannesburg Property Company (JPC) is allocated an operating expenditure budget of R1 billion, and a three-year capital budget of R286 million. Through its development facilitation initiatives on council-owned land, JPC will over the next three year will attract investment and business of R10 billion, and thus enhancing economic returns to the City.
The sites are primed, and permissions from relevant authorities secured, offering a unique investment opportunity. Held within a company structure, the acquisition includes a share block. Pam Golding Properties' dedicated area specialists stand ready to navigate interested parties through the myriad options and limitless potential this sanctuary affords.
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