Johannesburg Mayor Dada Morero has moved to reassure residents and investors about the city’s financial stability after concerns were raised over the metro’s debt levels in a letter from Finance Minister Enoch Godongwana.
Morero clarified that the financial figures referenced in the minister’s correspondence relate to the City of Johannesburg’s position as of June 2025 and do not reflect the municipality’s current financial standing.
Speaking on the matter, the mayor said significant progress has already been made in reducing the city’s outstanding obligations, with many bills and debts already settled.
“The report of R25 billion is as of June 2025, which means we were able to deal with it. By the time the report reaches the National Treasury, some things have already been worked on,” Morero said.
He explained that Johannesburg is currently managing approximately 60% of its current creditor obligations, amounting to around R6.8 billion, and that the city has been actively implementing measures to improve its financial health.
Morero also highlighted that the municipality recently cleared one of its outstanding bonds and fully repaid a loan secured with Standard Bank, describing the repayments as part of the city’s broader efforts to maintain responsible fiscal management.
“In fact, we’ve just settled one of our bonds, and the loan we’ve raised with Standard Bank has also been paid off,” he said.
The mayor stressed that the city has continued budgeting responsibly and remains cautious about taking on excessive debt.
“The city has been budgeting all along. We also caution ourselves against borrowing too much,” Morero added.
His remarks come amid growing public scrutiny over Johannesburg’s finances, particularly following reports suggesting the metro was facing severe financial pressure and struggling to secure external funding.
Morero also addressed claims that a French financial institution had declined a loan application from the city, dismissing the reports as inaccurate.
“The statement that suggested that the French bank did not approve, in fact, the City did not make any application. The journalist captured the story incorrectly,” he said.
The City of Johannesburg has been under pressure to improve service delivery while managing mounting infrastructure demands and financial challenges, including unpaid municipal accounts, ageing systems, and the need for capital investment in key sectors such as water, electricity, and roads.
Analysts say restoring confidence in the metro’s financial management is essential, particularly as Johannesburg remains South Africa’s economic hub and a critical driver of national growth.
Morero’s response appears aimed at reassuring both residents and stakeholders that despite concerns raised in Treasury reports, the city remains financially stable and committed to responsible governance.
