City of Joburg Passes R2.5 Billion Loan for Service Delivery, South Africans Stunned
- The City of Johannesburg passed a loan worth billions for infrastructure development in the City
- The R2.5 billion loan will come from a French company and will be paid over 15 years after it is approved
- South Africans were wary of the money that would be borrowed, and some did not believe it would be used for good
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With over seven years at Daily Sun and Vutivi Business News, Tebogo Mokwena, a Briefly News current affairs journalist, offered insights into South African politics, national, provincial and local governance, political parties and Parliament.
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JOHANNESBURG—After two unsuccessful attempts, the City of Johannesburg's Finance MMC secured approval for an R2.5 billion loan to fix its infrastructure.
City of Joburg approves loan worth billions
According to TimesLIVE, MMC Dada Morero convinced the City Council to approve the loan from the French company Agence Française de Développement. The loan will be paid out over 15 years. Most of the Council voted for the loan approval, while only five rejected the move.
The funding was to approve external financing for infrastructure development projects in Johannesburg. It will upgrade, fix, and replace roads, the power grid, and wastewater plants.
South Africans have questions
Netizens on Facebook questioned the logic and the details of the loan.
Rodney Beresford asked:
"Is there a finder's fee payable on the loan, and if so, how much is to be paid and to whom will it be paid?"
Gerry Kipongo asked:
"Why do governments and municipalities always take out huge amounts of loans? What happened to our rates and taxes?"
Richard Peebles said:
"Not going very far. Comrades, tonight, we eat!
Goodman Shabangu said:
"It's a pity that 90% of this loan won't be unaccounted for."
The City of Johannesburg sets aside R83.1 billion budget
In a similar article, Briefly News reported that the City set aside a city budget of R83,1 billion for the 2024/2025 financial year.
A large portion of the budget is expected to be set aside for disabled people, as well as for health and housing in the City.
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Source: Briefly News
