The Centre for Development and Enterprise (CDE) argues that Joburg's plan to spend R111.47 billion on nearly 30 economic development projects over five years is unrealistic, given the city's financial and administrative limitations.
In its latest report, Johannesburg Matters, titled 'Joburg Needs Faster Growth,' the analytical centre asserts that the city should prioritize restoring basic services, reorganizing municipal institutions, and stabilizing finances, rather than implementing an ambitious programme of new projects.
The city's economic growth strategy, approved in September 2026, includes projects such as an international congress centre in Lanseria worth R1.5 billion, a film and apparel cluster valued at R2.14 billion, and biodiesel production worth R546 million. The city anticipates that 98% of the funding will come from private investors and donors.
However, CDE questions the municipality's capacity to plan, coordinate, and oversee projects of this scale. It notes that the strategy itself acknowledges that successful implementation will require significantly more resources and administrative capacity than Johannesburg currently possesses.
The City is Aware
In a statement published by Infrastructure News on October 6, the City stated that its Economic Growth Strategy recognizes infrastructure deficits, unreliable services, transport issues, and weak project preparation as obstacles to growth. This statement was made before the publication of the CDE report and does not respond to its findings.
During Council debates on this strategy, Economic Development Head Nomoya Mnisi stated that 'economic growth and infrastructure development are not competing priorities.' She emphasized that adopting the strategy is an important milestone, but its impact will be measured by implementation results and tangible achievements.
The report indicates the need for significantly more private investment to create jobs and restore economic growth. Nevertheless, it argues that the current approach relies on grandiose plans and expensive projects instead of first creating the conditions necessary for businesses to invest and expand.
The report states: 'Until Johannesburg restores its core functions, municipal failure will continue to restrict investment, business expansion, and job creation.' CDE draws attention to the city's economic indicators.
Slow Growth
Johannesburg's economy has grown by only about 1% per year over the last 11 years. Real GDP per capita decreased by 4.1% between 2013 and 2023, falling from R99,858 to R95,737.
The official unemployment rate in the city reached 35.9% in the second quarter of 2026, the highest among all metropolises and exceeding the national rate of 33.6%. In the year leading up to June, Johannesburg lost approximately 90,000 jobs, while Cape Town added 57,000.
CDE Executive Director Ann Bernstein states: 'Joburg is South Africa's most important economic hub. However, the city's decline over the past decade is increasingly undermining its economic potential. Municipal mismanagement has made Johannesburg a difficult place to do business, invest, find work, and build a safe family life.'
According to the report, Dickon Hall Foods factory closed its operation in Southdale, Johannesburg, and relocated production to the Western Cape after repeated water outages, resulting in a loss of R17 million in profit. In Selby, furniture manufacturer Calgan Recliners, which employs between 700 and 800 people, spent over R2 million on water storage to maintain insurance coverage.
Difficult Situation
CDE argues that these failures hinder operations, investment, and job creation for companies. The analytical centre stresses that small businesses are particularly vulnerable as they have fewer resources to compensate for unreliable electricity, water supply, and infrastructure.
Bernstein notes: 'A priority for the next Johannesburg government must be fixing the breakdowns. However, this complex process must be accompanied by serious reflection on the city's future and how to build a more dynamic economy, which is a prerequisite for faster and more inclusive growth.'
The organization recommends that the next mayor focus the administration on restoring municipal services, combating corruption, reducing infrastructure backlogs, and improving the city's and its commercial structures' finances.
Furthermore, it is proposed that the mayor appoint a task force of five to eight leaders from different segments of society to develop an economic concept and practical growth proposals within a year. According to CDE's proposal, this task force would research growth prospects for the city, consult with businesses of various sizes, and test proposals for their costs, benefits, and feasibility.
Bernstein concludes: 'The proposed CDE Task Force could be a vital contribution that helps the mayor decide on an economic growth strategy and helps unite the city around ambitious action proposals and a new vision of hope for all residents.'
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