Business Unity SA, Business Leadership SA and Business for South Africa issued a joint statement on Thursday condemning the City of Johannesburg's visible decline due to corruption and maladministration.
The organisations described the situation as a national economic emergency, noting that Johannesburg accounts for approximately 16% of South Africa's GDP. They highlighted that the minister of finance has placed the city on notice over its unfunded adjustment budget and severe financial distress, while Eskom may suspend electricity supply over unpaid debt. Capital expenditure has collapsed to 6% of the city's budget and maintenance spending stands at 0.5% of asset value. The Auditor-General estimates annual losses of approximately R12-billion through unauthorised and irregular expenditure. Property values have fallen materially. The statement called on the current administration to stabilise finances immediately, on parties contesting November's local government elections to provide costed plans, and on the president and national government to use available powers for reforms. Business leaders offered structured support on condition of competent governance. The groups stressed they remain non-partisan but will not stay passive, and committed to tracking governance and service delivery commitments publicly.