Africa’s richest city needs $12 billion to repair infrastructure
Africa’s richest city needs $12 billion to repair infrastructure:Johannesburg, also called Africa’s richest city because of its high concentration of corporations and billionaires, needs 221 billion rand ($12 billion) to deal with its infrastructure crisis. Africa’s richest city needs $12 billion to repair infrastructure
Johannesburg, Africa’s richest city with 12,300 billionaires, 25 centenaries and two billionaires, needs 221 billion rand ($12 billion) to deal with its infrastructure crisis.
As reported by Bloomberg, a city council investigation found that the infrastructure problems come amid disruptions to the electricity grid, long-term repairs to potholes and widespread power outages due to major water shortages, with some areas without water for up to 11 days in March.
Africa’s richest city needs $12 billion to repair infrastructure
These problems cause significant economic costs. For example, the country’s electricity problems have severely affected the country’s economy, reducing a significant portion of its GDP. The central bank estimates that $51 million is lost daily due to power outages. Africa’s richest city needs $12 billion to repair infrastructure
The backlog “highlights significant risks to public safety, economic security and the environment if left unattended,” the city said in a document about the road network. “If ignored, the backlog could lead to deteriorated roads, unsafe bridges, flooding and further accidents.”
Johannesburg, a city of about five million people, has been plagued by financial and political turmoil, with constant changes in coalition government resulting in eight mayors since 2019.
Last month, the Johannesburg City Council overcame initial opposition resistance to implement above-inflation utility rate and fee increases and secure a R2.5 billion loan from the French Development Agency.
The city has failed to meet its water infrastructure investment targets every year since at least 2008, according to the document. Additionally, the city’s electricity provider, City Power, said there was an “urgent need for upgrades and replacements to ensure the reliability and security of the grid.”
Just last month, the South African government announced plans to use nuclear energy to solve its power problems.
The city also faces significant challenges in collecting revenue from major customers, including government agencies and businesses, with payments of R6.1 billion more than 90 days late, according to another document dated March 6.
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