What the City of Joburg is doing to mitigate against slow growth and drought


The weakening South Africa rand is expected to strain the domestic economy especially when it comes to imported goods. The City of Johannesburg has put in measures to mitigate against challenges city dwellers are expected to face.

“The one thing that is very clear is that costs of imported items that we may have for transformers will have gone up the time we are going to require them,” City of Johannesburg Manager Trevor Fowler told CNBC Africa.

“The growth in the economy is expected to lower and we want to take that into account as we assist consumers in meeting their obligations.”


He also said the city was putting in measures to make sure that its debt reflected its revenue ratio.

“The key questions we look at mitigating our debt is to ensure that we have proper credit control and ensure those are delinquent join those who pay willingly. As we improve our liquidity and how we do our finances, we are able to get our borrowing at a much lower rate; we ensure we stay within our ratio,” said Fowler.

“We have a lot of room to take more debt so we improve our infrastructure but we do responsibly so as to ensure our revenue matches our debt. We also make sure we follow on our debt; we have collected hundreds of millions of past debt so as to ensure that debt to us is retrieved.”

South Africa is also facing drought this year and the city has put in measures to arrest the impending crisis for city dwellers.

“The food insecurity is something we are addressing; over 39 thousand households have been assisted to ensure they are not food insecure,” added Fowler.

“Slow economic growth will also impact on the jobs market as we expect more people to lose their jobs. We have introduced an extended social package so people register social assistance they require.”

Fowler said the city was going to continue investing in critical infrastructural projects.

“We are also investing in road and water infrastructure. We have done over 600 lane kilometres and we want to ensure there are no potholes. We are also investing in water infrastructure to ensure city residents to have adequate water.”