South Africa's Treasury launches three-year plan to rescue Johannesburg's finances

South Africa’s Treasury disclosed a three-year financial rescue scheme for Johannesburg, intended to shore up the city’s strained budget and remain in force through the local elections. Finance Minister Enoch Godongwana said the plan will be applied even if a new municipal administration takes office. Earlier this year the Treasury halted budget transfers to Johannesburg and dozens of other municipalities as part of a crackdown on alleged inefficiency.

The African National Congress, which leads the governing coalition, is projected to receive only about 31% of the vote according to recent IPSOS polling, a figure mirrored in the city. Johannesburg, accounting for roughly 16% of the nation’s GDP, has faced persistent power and water shortages, prompting the Centre for Development and Enterprise to describe its finances as a “fiscal fiction.” The rescue effort aims to restore fiscal stability and improve service delivery ahead of the elections.