The City of Johannesburg and South Africa’s National Treasury have reached an agreement on a financial rescue plan, clearing a critical hurdle before an upcoming parliamentary deadline.
Finance Minister Enoch Godongwana confirmed the arrangement, stating that the strategy offers a credible basis for the municipality’s fiscal stabilization.
1 billion budget for the 2026/27 fiscal year, which the Treasury has confirmed is now fully funded.
The deal centers on the city’s R97.1 billion budget for the 2026/27 fiscal year, which the Treasury has confirmed is now fully funded.
This agreement marks a significant step in addressing the municipality’s long-standing cash-flow constraints and mounting debt levels.
The Treasury described the plan as solid, signaling a shift from previous periods of heightened oversight and intervention.
This development comes as South Africa’s broader municipal sector continues to grapple with a deepening revenue collapse.