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Johannesburg Budget Showdown: Coalition Chaos Threatens City’s Finances

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3 months ago

May 29, 2025

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The City of Johannesburg is teetering on the edge of financial uncertainty as deep divisions within its coalition government threaten to derail the passing of the 2025 municipal budget.

On Wednesday, Finance MMC Margaret Arnolds unveiled the City’s proposed R89 billion budget, aimed at boosting revenue and improving services. But what was meant to be a rallying point has instead become a lightning rod for political conflict.

The proposed budget includes tariff increases for water, electricity, and property rates—plus the retention of a controversial R200 monthly surcharge. This surcharge, especially, has stirred anger among coalition partners and community advocates alike.

Coalition Partners Cry Foul

One of the most vocal critics is ActionSA leader Herman Mashaba. He accuses the ANC-led administration of betraying a prior agreement to scrap the surcharge—a cost he says disproportionately hurts low-income residents who rely on prepaid utilities.

“This charge targets the poor without any justification. We supported Mayor Dada Morero on the promise that this burden would be removed. Now it’s back, and we won’t stand for it,” said Mashaba, adding that his party wasn’t even consulted on the latest version of the budget.

ActionSA, which played a pivotal role in bringing Morero to power, now says it will oppose any fiscal plan that ignores financial mismanagement and neglects basic service delivery.

A Budget in Peril

To pass the budget, the ANC needs 136 of the 270 total votes in council. With only 91 seats of its own, the party relies heavily on the fragile support of its coalition partners—including ActionSA, the African People’s Convention (APC), and others in the Government of Local Unity (GLU).

But rifts are widening. The APC expressed frustration over the modest allocation of just R3 billion to historically disadvantaged communities. “This budget ignores the realities of Joburg’s poorest areas and favours the affluent suburbs,” the party said in a statement.

Meanwhile, the Democratic Alliance (DA), which holds 71 seats, has already pledged to vote against the budget. Other minor parties, including the African Christian Democratic Party (ACDP), are also expected to withhold support.

Also Read: EFF Takes Legal Action to Block Fuel Levy Hike, Warns of Impact on the Poor

Leadership Under Fire

Mashaba didn’t stop at policy criticism. He publicly questioned Morero’s leadership, accusing him of running a “puppet council” and appointing finance officials he could manipulate.

The ANC, Morero’s office, and the City of Johannesburg have not responded to these claims at the time of publication.

Why It Matters

If the budget fails to pass in Thursday’s vote, it could spell disaster for Johannesburg’s service delivery plans. Political analyst Ntsikelelo Breakfast warns that delays in budget approval could paralyse the municipality’s operations.

“In coalition governments, consensus is crucial. Ignoring partners leads to instability—and without a passed budget, everything from basic services to infrastructure upgrades comes to a halt,” Breakfast explained.

As Joburg’s political leaders gear up for Thursday’s critical vote, residents are left wondering whether governance squabbles will cost them essential services. With power struggles and policy clashes at an all-time high, the fate of Africa’s economic hub hangs in the balance.