Johannesburg?s mayor has been given 14 days to explain how South Africa?s wealthiest city intends to recover 24.4 billion rand ($1.4 billion) lost through wasteful expenditure.

Johannesburg's mayor has been tasked with addressing the city's financial mismanagement.
Failure to present a recovery plan could result in the city losing government funding.
Johannesburg faces severe infrastructure challenges and requires substantial investment to restore basic services.

Johannesburg?s mayor has been given 14 days to explain how South Africa?s wealthiest city intends to recover 24.4 billion rand ($1.4 billion) lost through ?unauthorised, irregular, fruitless, and wasteful expenditure.?

Finance Minister Enoch Godongwana instructed Mayor Dada Morero to present a clear plan to address the city?s financial mismanagement. Failure to comply could result in Johannesburg forfeiting a portion of its funding from the central government, according to a Bloomberg report.

Home to Africa?s largest stock exchange and some of the continent?s biggest corporations, Johannesburg is struggling with a collapse in basic services.

Business Insider Africa earlier reported that Johannesburg, often regarded as Africa's wealthiest city due to its high concentration of businesses and millionaires, needs an estimated 221 billion rand ($12 billion) to fix its infrastructure challenges.

Currently, President Cyril Ramaphosa?s administration contributes 15% of Johannesburg?s 89 billion rand annual budget. The prospect of losing government funding threatens to further cripple a city already marred by pothole-ridden roads, chronic water and electricity outages, and soaring crime rates.

This comes as Johannesburg prepares to host world leaders at a major international summit in November, putting its infrastructure challenges under global scrutiny.

Race to plug infrastructure gaps

South Africa has intensified its infrastructure drive in recent years, aiming to undo the damage from decades of neglect and poor governance that have hollowed out the continent?s most developed economy.

In March, South Africa, in partnership with the World Bank, launched a $3 billion initiative to restore essential services and improve infrastructure in eight of its largest cities.

In June, the bank also approved a $1.5 billion loan to support South Africa?s structural reforms, focusing on improving infrastructure and reviving economic growth. (Business Insider Africa)

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