Johannesburg Council Rejects R25.3bn Capital Funding Plan
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The City of Johannesburg failed to approve a R25.3bn three-year capital funding plan after opposition parties blocked the vote, deepening a standoff over the metro's borrowing and infrastructure spending.
The City of Johannesburg has failed to approve its proposed R25.3 billion capital funding plan for 2026/27 to 2028/29 after the ANC-led administration secured 117 votes in favour and 93 against, short of the 136-vote majority required in the 270-seat council.
The plan was designed to secure financial stability and fund critical infrastructure projects over three years by initiating substantial borrowing. It also aimed to support municipal entities such as City Power and Johannesburg Water in securing independent borrowing on their balance sheets.
Both the DA and ActionSA opposed the programme, warning that the municipality was sliding toward financial collapse. DA leader in Johannesburg Belinda Kayser-Echeozonjoku said the party was not opposing infrastructure but questioned whether council was being asked to approve billions in borrowing without enough information to interrogate it. ActionSA PR councillor Mpumi Edward said her party's concerns were with the structure and scope of the plan, the assurances given to council and the controls over the money and resulting obligations.
ANC spokesperson Mantombi Nkosi accused the two parties of hypocrisy, saying they complain about electricity outages, water interruptions, potholes and failing roads while blocking the investment meant to fix them. The standoff has left Mayor Dada Morero's administration unable to finalise its infrastructure financing plans.
The city is under severe financial strain, owing creditors roughly R25.2 billion, including unpaid bills to state utilities such as Eskom and water boards, while holding only about R3.9 billion in cash reserves. A two-year salary agreement with the South African Municipal Workers Union was deemed unaffordable and illegal by the National Treasury, prompting threats from Finance Minister Enoch Godongwana to withhold more than R8 billion in equitable share funding. Kayser-Echeozonjoku said the city's own document shows about R14.1 billion of the three-year capital programme is funded through grants and other contributions, with roughly R10 billion funded through loans.