Infrastructure Investment Welcomed in Johannesburg Budget

GOOD Statement by Matthew Cook, GOOD National Chairperson & City of Johannesburg Councillor:

GOOD notes the approval of the City of Johannesburg’s 2026/27 Medium-Term Revenue and Expenditure Budget, including a significant multi-year infrastructure investment programme aimed at stabilising and rebuilding the city’s deteriorating systems.

GOOD welcomes the stronger emphasis placed on infrastructure renewal and service delivery recovery, particularly the substantial allocations toward electricity, water, roads, housing, public transport, and informal settlement upgrading.

Key investments include a R2.35 billion for City Power infrastructure and network upgrades and R1.96 billion for Johannesburg Water capital projects which are welcomed. GOOD also welcomes the R2.02 billion for Human Settlements projects and the R723.7 million for informal settlement upgrading through the UISP programme.

Furthermore, the R570 million for Johannesburg Roads Agency infrastructure upgrades and major investment into roads, stormwater systems, substations, reservoirs, sewer infrastructure, Rea Vaya rehabilitation and public transport modernisation are much needed.

Johannesburg residents have lived through years of infrastructure neglect, maintenance failures, outages, sewer spillages, flooding, collapsing roads, and unreliable basic services. Investment at this scale is necessary if the City is serious about restoring functionality, rebuilding public trust, and supporting economic recovery.

While there is much to support in the budget, GOOD is concerned that residents are once again being asked to absorb significant tariff increases during a severe cost-of-living crisis and at a time when service delivery failures remain widespread.

The approved budget includes an electricity tariff increase of 8.63% and a water increase of 12.5% and a property rate increases of 3.6%. While GOOD acknowledges the genuine financial pressures facing the City, including rising bulk electricity and water costs, residents cannot continue being treated as the balancing figure in Johannesburg’s financial equation while inefficiency, corruption, losses, and weak implementation persist.

The budget itself does reveal some serious concerns such as debt impairment rising to R10.46 billion and water and electricity losses increasing significantly. GOOD further notes that the City intends funding part of its infrastructure programme through approximately R3.5 billion in borrowing during 2026/27. Borrowing for infrastructure can be justified but only where projects are properly managed, improve service delivery, strengthen revenue sustainability, and deliver long-term public value.

The central challenge facing Johannesburg is no longer the absence of plans, strategies, or budgets. It is the City’s credibility and ability to implement. Johannesburg has suffered from delayed projects, underspending, poor contractor management, infrastructure vandalism, weak maintenance planning, corruption, and collapsing oversight despite large budgets being approved year after year.

GOOD therefore believes the real test of this budget will not be the figures presented in Council chambers, but whether residents experience:

• Fewer outages and water interruptions;
• Reduced sewer spillages and flooding;
• Cleaner streets and better refuse collection;
• Safer communities;
• Faster infrastructure repairs;
• More reliable public transport; and
• A more responsive and accountable local government.

Johannesburg does not need more promises or polished budget presentations.

It needs a government capable of fixing the basics, restoring dignity, rebuilding trust, and delivering measurable improvements in the daily lives of residents.

GOOD Manifesto on Public Participation: Encouraging public participation in decision-making processes.

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