South Africa's richest city is scrambling to restore billions in suspended government funding while preparing to tap the bond market to finance long-overdue infrastructure upgrades.
The City of Johannesburg says it will begin paying key creditors by next week in a bid to unlock R3.6 billion ($200 million) in withheld government funds, Bloomberg reported.
Earlier this week, South Africa took the extraordinary step of temporarily withholding state funding from 69 municipalities, including Johannesburg, as part of a sweeping crackdown on financial mismanagement that has engulfed dozens of municipalities ahead of November’s local elections.
The move forms part of a broader effort to improve fiscal discipline, reduce irregular spending, and ensure municipalities meet their financial obligations before receiving additional public funds.
Treasury said funding would be released in phases once municipalities submit credible repayment plans and demonstrate progress in improving financial management.
