Johannesburg Water Crisis Requires R64 Billion, Finance Minister Godongwana Warns of Intervention

Johannesburg Faces R64 Billion Water Infrastructure Backlog

South Africa's Finance Minister, Enoch Godongwana, has announced that the city of Johannesburg requires a substantial R64 billion to rectify its persistent water supply issues. The Minister made these remarks during his budget speech, highlighting a critical financial mismanagement issue contributing to the crisis.

According to Godongwana, the city's water revenue amounts to R11.9 billion, yet only R1.3 billion is allocated to Joburg Water for capital expenditure. This significant disparity, he stated, has directly led to the massive infrastructure backlog. The Minister issued a stern warning, stating that if the practice of diverting funds from basic services continues, 'maintenance backlogs will grow, services will deteriorate and critical infrastructure systems will eventually collapse'.

National Government Considers Direct Intervention

Minister Godongwana indicated that the national government 'cannot be a spectator' in Johannesburg's deepening water crisis, signaling a likely direct intervention. While the specific form of this intervention remains undetermined, discussions are reportedly underway between city management and Treasury officials. This comes as a broader concern, with 63% of South Africa's municipalities, or 162 out of 257, currently categorized as being in financial distress.

Reforms and Funding Initiatives Underway

In an effort to address widespread municipal dysfunction, the government has allocated R27.7 billion over the next three years for a performance-based reform of metro trading services, encompassing electricity, water, sanitation, and solid waste. This initiative aims to ensure that revenue collected for these services is reinvested appropriately. Failure to meet set targets will result in budget cuts.

Furthermore, the municipal infrastructure grant is undergoing reform. Municipalities demonstrating proven capacity will continue to receive direct funding, while those with significant capacity or governance failures will see delivery shift to an indirect model. President Cyril Ramaphosa previously announced R156 billion in public funding for water and sanitation infrastructure over the next three years, with the Treasury allocating even more.

Underlying Causes of the Water Crisis

The ongoing water crisis in Johannesburg is attributed to a confluence of factors, including:

• Aging infrastructure: Years of under-investment have led to crumbling water and sanitation networks.
• Poor planning and maintenance: Inadequate planning and neglected maintenance contribute significantly to service delivery failures.
• Financial mismanagement: The diversion of funds intended for water infrastructure is a primary cause of the backlog.
• Lack of engineering capacity: Deputy President Paul Mashatile noted that some municipalities lack the necessary engineering expertise, leading to slow responses to leaks.

These issues result in substantial water losses, with some municipalities losing up to 40% of drinkable water through leaks. Recently, Gauteng Premier Panyaza Lesufi announced a R760 million infrastructure upgrade in Johannesburg to mitigate these challenges.