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COMMENTARY: Underspending on repairs and maintenance impacting Joburg infrastructure

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In January 2014, the National Treasury published Municipal Finance Management Act Circular no. 71, which mandated that municipalities allocate at least 8% of the carrying value of their property, plant, equipment, and investment property to repairs and maintenance activities. This directive aimed to ensure that municipalities prioritize the upkeep and preservation of their assets. A civil society group called Organization Undoing Tax Abuse (Outa) has, through its initiative JoburgCAN, highlighted that the city of Johannesburg consistently under-budgets for essential repairs and maintenance tasks. The city's financial reporting also lacks accuracy and consistency, with significant variations in numbers from year to year without any explanation. JoburgCAN analyzed the city's reported spending on repairs and maintenance from 2014/15 to 2023/24, along with the projected spending for 2024/25. This analysis covered a period of ten years since the Treasury set a standard of 8% for ma
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Infrastructure Fund project pipeline worth R700bn

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President Cyril Ramaphosa said in his State of the Nation Address (Sona2020) that the Infrastructure Fund has finalised a list of shovel-ready projects,and had begun work to expand private investment into public infrastructure sectors with revenue streams.


Infrastructure Fund project pipeline worth R700bn

The fund which was announced by Ramaphosa in 2019 and which is managed by the Development Bank of Southern Africa has finalised a list of shovel-ready projects, the president said, and had begun work to expand private investment into public infrastructure sectors with revenue streams.


These projects include both government and nongovernment contributions.



“These include areas like student accommodation, social housing, independent water production, rail freight branch lines, embedded electricity generation, municipal bulk infrastructure and broadband rollout.”


Ramaphosa said the social housing programme to build rental housing for low income families was at an implementation stage. It could leverage R9bn of private investment in the construction of 37,000 rental apartments.

The government planned to spend R64bn on student accommodation over the next few years and would leverage at least another R64bn in private investment.

The president said the government’s investment drive would be enhanced with the establishment of an integrated investment and promotion facilitation capability co-ordinated from the presidency.

A third investment conference would be held in November. At the second investment conference last year over 70 companies made investment commitments of R364bn.

“In the first two years of our ambitious investment drive we have raised a total of R664bn in investment commitments which is more than half of our five-year target of R1,2-trillion,” the president said.

“Already projects with an investment value of R9bn have been completed and 27 projects worth just over R250bn are in implementation phase with more coming on stream this year.”


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