Business organisation Business Leadership South Africa’s (BLSA’s) council last week met to consider research on the state of Johannesburg, presented by Genesis Analytics economic growth and impact partner Lael Bethlehem, and the findings are “stark”, BLSA CEO Busi Mavuso writes in her latest weekly newsletter.

“For the last decade, during which the city has cycled through eight mayors amid deep political dysfunction, service delivery has collapsed, criminal syndicates have become entrenched and revenue collection has deteriorated,” she avers.

Mavuso highlights the significance Johannesburg as an economic asset, with the city housing 70% of South African company head offices and producing 16% of national GDP.

“It is a critical hub for financial services, trade, retail and logistics. When Johannesburg falters, the whole economy feels it. Organised business has made the city’s crisis an urgent national priority and it is not difficult to see why,” she emphasises.

The Genesis Analytics data reveals that the city is not under-resourced, and that it spends more per capita than any other metro, at R18 200 per resident per year, compared with the City of Cape Town at R14 230, Mavuso points out.

It also has the highest number of municipal employees per 1 000 residents at 8.5, against Cape Town’s seven and Ekurhuleni’s 5.6, she adds.

“Yet, despite this expenditure and staffing, the city loses more water through leaks and theft than Cape Town sells. It fails to recover payment for 21% of the electricity it buys from Eskom, lost to illegal connections and meter tampering. If those losses alone were brought to the national benchmark for comparable cities, the city’s budget crisis could be largely resolved. The problem is not resources; it is capture,” she posits.

Bethlehem’s analysis shows that criminal syndicates are embedded in the city’s procurement, budgeting and hiring processes.

Mavuso emphasises the need to deal with corruption.

“Johannesburg needs a dedicated policing effort, with specialised units tasked to the South African Police Services Commissioner and the National Director of Public Prosecutions to investigate and prosecute syndicate networks operating inside the city. That is an essential first step,” she says.

Mavuso also calls for business and government collaboration, with gains in electricity stability and an improved logistics system highlighted as evidence of gains from collective effort.

“We need to bring the same approach to Johannesburg. But to do that, we need a credible partner in the public sector: serious, capable politicians and officials who want to change things for the better. We cannot work with those entrenched in existing corruption networks or unwilling to make the effort to turn things around,” Mavuso stresses.

“Johannesburg is not poor; it is poorly managed. Fixing that requires stable and honest leadership, a focused effort to root out criminal syndicates, restore water and electricity services, and a credible financial recovery plan. It can be done.

“We have seen major institutional turnarounds at Eskom and the South African Revenue Services – both looked irreversible until they weren’t. Johannesburg has faced crises before and emerged from them. Business is ready to support that turnaround. What we need now is a government partner willing to show up,” she adds.