South Africa’s Treasury has withheld budget allocations for Johannesburg and dozens of other municipalities, in a crackdown on allegedly wasteful spending just months before local government elections.
Johannesburg, the financial hub of Africa’s biggest economy, is expected to be among the most fiercely contested battlegrounds in November’s vote, which will decide who controls local councils nationwide.
The move, a rare fiscal intervention by the Treasury, shines a harsh spotlight on Johannesburg, which generates about 16% of total domestic GDP and is home to the highest concentration of corporate headquarters in Africa.
The local polls will be the first electoral test faced by the African National Congress since it was forced to share power in a coalition government after losing its parliamentary majority in 2024. Heavy defeats in key areas would further dilute the ANC’s power. Recent polling by IPSOS places the ANC national support at below 40%, confirming that it will likely need to form a coalition to govern major urban centres.