Third time lucky: Joburg finally passes R2.5bn loan

Joburg finance MMC Dada Morero has finally been able to convince the council to approve a motion to get a French loan to fund his budget.

He was third time lucky, as the previous two attempts to get a majority vote fell flat, with concerns raised about the controversial R2.5bn cash injection.

Five councillors rejected the move while an overwhelming 246 councillors agreed. 

Morero returned cap in hand — requesting that they reconsider the 15-year loan from Agence Française de Développement.

Previously, the DA, EFF and ActionSA were among the big parties that rejected the motion with a total of 118 councillors voting against the loan, 111 voting in favour and three abstaining.

He commended councillors for approving the external funding for infrastructure development projects.

With the loan, the city plans to fix, replace and upgrade roads, bridges, water pipes, wastewater plants and the power grid.

“Today councillors of Johannesburg, in their large numbers collectively, resolve to put the residents' interests before their own party-political interests and positions,” he said.

Morero said in 2023 a budget was passed that defined the sources of income that will support the 2024/25 budget. 

“We are now ending the leg that we started in 2023. Councillors are now committing to ensure that we move with speed in stabilising the finances of the city of Johannesburg and that we remain financially sustainable and resilient.”

The finance MMC said his administration will be taking into account concerns raised by residents and political parties to reconsider the availability cost as it relates to the electricity and prepaid metres.

“We are again committing that we will continue to undergo a process of review within the prescripts of the law and that the final decision to be taken shall be effected at the adjustment budget in January 2025.”

To aid the city's crippled coffers, Morero vowed to embark on an “aggressive revenue collection process”.

“This is an attempt to increase our revenue collection rate from 36% to a 90% target which will then ensure that the city is able to fund its Capex (capital expenditure) projects and be able to support its opex (operating) expenditure. 

Morero urged residents to play their part in rescuing the finances of the city by paying for the services they consume.

“We also want to call on the administration of the city through the city manager and his direct reports to continue to monitor the meter reading contractors and those responsible for cut-offs to ensure they complete their duties without fear or favour.”

He said he was grateful councillors have committed themselves to what they had committed to in 2023.

“Our responsibility of growing this city lies with all of us, because all of us have an interest in the success of this city regardless of party colours we belong to.”

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