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    Johannesburg, other municipalities face funding freeze over high spending

    South Africa's National Treasury will withhold funding from Johannesburg and dozens of other municipalities for at least a month over persistent and serious non-compliance with financial management regulations, officials said on Wednesday, 8 July 2026.
    By Kopano Gumbi
    8 Jul 2026
    Source: Reuters.
    Source: Reuters.

    • The move comes before local elections on Wednesday, 4 November 2026, in which Johannesburg, South Africa's economic hub and largest municipality, is expected to be among the most hotly contested battlegrounds.

    • Ogalaletseng Gaarekwe, Treasury's deputy director general of intergovernmental relations, told a news conference on Wednesday that R3.6bn ($220m) in funding would be withheld from Johannesburg in July.

    • She stressed the move did not amount to placing the city under administration.

    • Around 69 municipalities will have a portion of their funding suspended until September unless they can show they have reduced wasteful expenditure by at least 25%, Treasury officials said.

    • Finance Minister Enoch Godongwana has repeatedly raised concerns about Johannesburg's financial management.

    • In May, the city approved a R97.1bn ($5.98bn) budget that Treasury said was unfunded because planned spending exceeded realistic revenue projections and included a sharp increase in the municipal wage bill.

    • Local media have reported that the cash-strapped city has between five and 17 days of cash reserves available.

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    Source: Reuters

    Reuters, the news and media division of Thomson Reuters, is the world's largest multimedia news provider, reaching billions of people worldwide every day.

    Go to: https://www.reuters.com/
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