Business organisation Business Leadership South Africa’s (BLSA’s) council last week met to consider research on the state of Johannesburg, presented by Genesis Analytics economic growth and impact partner Lael Bethlehem, and the findings are “stark”, BLSA CEO Busi Mavuso writes in her latest weekly newsletter.
“For the last decade, during which the city has cycled through eight mayors amid deep political dysfunction, service delivery has collapsed, criminal syndicates have become entrenched and revenue collection has deteriorated,” she avers.
Mavuso highlights the significance Johannesburg as an economic asset, with the city housing 70% of South African company head offices and producing 16% of national GDP.
“It is a critical hub for financial services, trade, retail and logistics. When Johannesburg falters, the whole economy feels it. Organised business has made the city’s crisis an urgent national priority and it is not difficult to see why,” she emphasises.
The Genesis Analytics data reveals that the city is not under-resourced, and that it spends more per capita than any other metro, at R18 200 per resident per year, compared with the City of Cape Town at R14 230, Mavuso points out.
