Johannesburg Scrambles to Unlock Equitable Share After Treasury Freeze

Morero confirmed that city leadership recently met with Finance Minister Enoch Godongwana to establish a roadmap for addressing outstanding fiscal concerns. While Treasury temporarily held back the July 2026 allocation, it simultaneously validated the city’s 2026/27 budget as fully funded. This assessment provides a baseline for the city to demonstrate stability while it works to overhaul its financial management protocols.

To satisfy Treasury’s oversight, Johannesburg is intensifying its focus on curbing irregular and wasteful expenditure. The city has already regularised R918.4 million in past spending, while municipal entities—including Pikitup and the Johannesburg Roads Agency—addressed a further R878.3 million. Officials are now scrutinising specific cost centers, identifying City Power’s R2.1 billion overspend on bulk electricity as a primary driver of recent fiscal strain.

Service delivery remains the administration's stated priority despite these constraints. Morero pledged to settle outstanding debts with Eskom and Rand Water by mid-July to stabilise relations with critical utility providers. Looking forward, the city intends to leverage a 200 million euro facility from the German development bank KfW to modernize the electricity grid, alongside an R1.75 billion capital injection into water infrastructure. These projects rely on the city’s ability to modernize its billing systems and improve revenue collection from residents capable of paying for services.