South Africa: Johannesburg's Money Troubles Could Mean Worse Services for Residents

14 April 2026
Scrolla (Johannesburg)
By Dylan Bettencourt
  • Global Credit Rating placed Johannesburg on a negative financial watch after the city failed to submit its audited financial statements.
  • Economists warn that if Johannesburg does not sort out its finances, residents could face higher electricity bills and weaker services.

A ratings agency placed the City of Johannesburg on a negative financial watch last week. Economists say it is a warning that the city's money problems could hurt the millions of residents who depend on it for basic services.

Global Credit Rating (GCR), which is affiliated with Moody's, said Johannesburg had failed to have its financial statements signed off by the Auditor-General of South Africa. GCR said this created "material uncertainty" in the city's financial affairs.

Johannesburg said the financial statements would be finalised by the end of May. GCR said the negative watch could be lifted if the Auditor-General accepted the city's submissions and Johannesburg put measures in place to avoid similar delays.

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Lisette Ijssel de Scheepers, chief economist at the Bureau for Economic Research, called the move "an early warning rather than an immediate crisis." She said the city had little time to act, The Citizen reported.

"Failure to act could materially constrain the city's financial flexibility and service delivery capacity over time," Ijssel de Scheepers said.

She said the negative watch was likely to push up the city's borrowing costs, as lenders would demand higher interest rates. A full credit rating downgrade could follow if the problems were not fixed, putting further pressure on the city's budget.

Stephen Sadie, chief executive of the Chartered Governance Institute of South Africa, said the problem was not a shortage of policies. It was a shortage of the right people in the right jobs. He said municipalities had long put political loyalty ahead of competence.

"The deeper issue is capability," Sadie said. "What is missing is the will to appoint the right people to our governing bodies."

Read the original article on Scrolla.

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