The South African business sector has issued an urgent call to political parties and national government to immediately stabilise the City of Johannesburg’s fiscal and governance crisis.

Ahead of the upcoming local government elections, business leaders demand specific, costed recovery plans, consequence management for corruption, and active national intervention to prevent an economic emergency.

Johannesburg is the commercial capital of South Africa, accounting for about 16% of the national GDP and is the central hub where a disproportionate share of domestic and foreign investment decisions are made.

While the broader South African economic trajectory is showing signs of recovery – highlighted by energy stability and positive sovereign credit rating momentum – the visible decline of the City of Johannesburg threatens to undermine the country’s growth story, business warns.

Leaders from the Business Unity South Africa, Business Leadership South Africa and the Business for South Africa steering committee emphasise that this is not a localised political dispute, but a critical national economic emergency.

They note that City of Johannesburg’s challenges have escalated to a tipping point owing to several alarming indicators, that includes an unfunded adjustment budget, prompting National Treasury to place the metro on formal notice, with the July 2026 equitable share allocation currently at risk.

State utility Eskom has also warned it may suspend or throttle electricity supply to the city over mounting bulk electricity debt.

Capital expenditure has dropped to 6% of the City's budget, with maintenance spending standing at 0.5% of asset value, roughly one-eighteenth of the metro average.

And, the Auditor-General estimated yearly losses of about R12-billion owing to unauthorised, irregular, and wasteful expenditure.

Business notes that fragile coalitions have resulted in a constantly changing administration, producing ten mayors in the last decade.

The business leaders say while business remains non-partisan, it will not be passive.

Business leaders want immediate, tangible changes rather than empty promises, urging political parties to stabilise the City’s finances now and not after the next election.

They want the elimination of irregular expenditure and clear, transparent reporting against specific service delivery indicators, and "consistent and exceptionless” enforcement of accountability for corruption and maladministration.

All parties contesting the elections must provide specific, costed commitments on how they plan to address the fiscal crisis, restore infrastructure, and re-establish functional governance, they says.

Because these structural and financial crises have exceeded the capabilities of current city-level leadership, business leaders are urging President Cyril Ramaphosa and the Government of National Unity to step in.

The national government is being urged to use available powers to drive structural reforms, assist with financial stabilisation, and ensure consequence management is enforced where governance standards fail.

Further, drawing on the successes of the national government-business partnership, which yielded measurable progress in energy and freight logistics, the private sector says it is ready to lend its expertise, execution capability, and resources.

However, they add that this is on condition of a “capable, scrupulous counterparty” that can be held to account.