CoJ commits billions for water, power and roads

The city’s finance MMC, Margaret Arnolds, announced the allocations during Wednesday's 2025/26 budget speech.

Several entities are struggling financially, including mounting debt, ageing infrastructure, revenue losses, and operational inefficiencies. 

Limited capital investment and underspending on maintenance have further strained service delivery across key municipal services.

City Power –

The City of Johannesburg will allocate R4.6 billion to City Power over the next three years as part of its 2025/26 budget to help stabilise the electricity grid and strengthen the network. 

Arnolds said the allocation “will also help the utility adapt to the evolving energy landscape, reduce technical losses, and improve revenue collection”.

This funding is critical as City Power owes Eskom over R1 billion for electricity bought since October 2023, leading Eskom to seek a court order to recover the debt.

“The balance of the budget is used for key enablers for the core function, including the procurement of systems, software and tools of trade and developers’ funded service connections. With energy prices and supply chains volatile globally, this infrastructure will not only support economic continuity, but also enhance household financial stability,” said Arnolds.

Johannesburg Water –

Johannesburg Water will receive R5.6 billion over three years, the second-largest capital allocation, to address service backlogs and failing infrastructure. 

This includes R400 million for wastewater treatment upgrades and new sewer connections in informal settlements and high-density areas. 

The funding is vital as Johannesburg Water faces a R27 billion infrastructure backlog, loses over R2 billion annually due to leaks and illegal connections, and is owed nearly R500 million by government departments and state entities.

Arnolds highlighted the city’s commitment to investing in “smart pressure management systems and digital leak detection tools to reduce water loss and improve service delivery,” adding: “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.”

Johannesburg Roads Agency (JRA) –

The city has allocated R2.8 billion over three years to the Johannesburg Roads Agency (JRA) to upgrade high-traffic corridors linking townships to economic centres, particularly in Diepsloot, Soweto, and Lenasia. Included in this is R400 million dedicated to expanding stormwater infrastructure in Orange Farm, Ivory Park, and Braamfischerville, aiming to prevent flash flooding and support resilient urban planning.

JRA, however, is facing severe financial woes due to budget cuts, a massive infrastructure backlog, widespread vandalism, leadership scandals, and procurement irregularities, all of which are crippling its ability to maintain the city's road network.

 “These investments are part of the broader spatial transformation agenda—creating inclusive, walkable neighbourhoods and connecting marginalised communities to the city economy,” Arnolds added.

Arnolds emphasised that the 2025/26 budget is more than just figures on a page; it represents a collective declaration and “a statement of intent to move Johannesburg forward from planning to progress.”

She further noted: “This budget was built through public dialogue, regional forums, and sectoral engagements. And in every hall, every meeting, every township, the message was clear: We want a city that works.”

ALSO READ