City injects billions to revive Johannesburg’s infrastructure
In its 2025/26 budget, the City of Johannesburg has committed multi-year funding to support struggling municipal entities.
The City of Johannesburg will invest over R13 billion in multi-year funding to stabilise its struggling municipal entities, enhance service delivery, and boost long-term economic growth.
Finance MMC Margaret Arnolds announced the allocations during the city’s 2025/26 budget speech on Wednesday, pledging to shift Johannesburg “from planning to progress.”
Johannesburg’s municipal entities are under significant strain. Years of underinvestment, ageing infrastructure, and revenue shortfalls have created essential services backlogs. Furthermore, Arnolds said the new budget responds to that challenge, reflecting a “statement of intent” from the city and its residents.
“This budget was built through public dialogue, regional forums, and sectoral engagements,” she said.
“And in every hall, every meeting, every township, the message was clear: We want a city that works.”
City Power and Johannesburg Water Take Priority
City Power, which owes Eskom over R1 billion, will receive R4.6 billion over the next three years. The allocation aims to help stabilise the city’s power grid.
“This infrastructure will not only support economic continuity, but also enhance household financial stability,” said Arnolds.
In addition, Johannesburg Water will receive the largest allocation, R5.6 billion, to address a R27 billion infrastructure backlog and reduce water losses.
“Through intentionally increasing infrastructure investment, the city will begin to claw back on water losses that eat away at resources that could potentially be available to re-invest in infrastructure for the future,” Arnolds noted.
The water utility loses over R2 billion annually due to leaks and illegal connections and is owed nearly R500 million by government departments and state-owned entities.
Roads Agency Funding Targets Township Connectivity
The City of Johannesburg has allocated R2.8 billion to the Johannesburg Roads Agency (JRA), setting aside R400 million specifically to expand stormwater infrastructure in flood-prone areas such as Orange Farm and Ivory Park. This investment aims to strengthen urban resilience and enhance connectivity between townships and key economic hubs.
“These investments are part of the broader spatial transformation agenda, creating inclusive, walkable neighbourhoods and connecting marginalised communities to the city economy,” said Arnolds.