Johannesburg shows growth amid gloom

Johannesburg - The economy of the City of Joburg has grown by 2.6 percent, more than either the national or Gauteng economies, despite the global economic recession.

Mayoral committee member for finance, Geoff Makhubo, said during the announcement of the annual budget report last week that Joburg has received an unqualified audit report from the auditor-general for the second year in a row.

Assets and income have grown substantially, and the city collected more than 94 percent of revenue billed. Billing problems, which featured prominently in previous auditor-general reports, were kept to a minimum, he said.

Joburg achieved a surplus of R4 billion which was redirected to the capital budget to accelerate service delivery.

Makhubo says the financial statements reflect a stronger financial position for Joburg, with total assets increasing by 5 percent to R66.6bn.

Total income grew by 13 percent to R39.5bn, driven largely by revenue generated from the distribution of water and electricity.

Operational expenditure increased by 10 percent to R34.6bn.

The Corridors of Freedom featured strongly as one of the most important developments over the past year in Joburg during the delivery of the report.

The three corridors currently under way are in Empire/Perth Roads, Turffontein, and Louis Botha/Alexandra.

The aim of the project is that city residents will live closer to their workplace and be able to live, work and play without having to use private motorised transport.

Makhubo said a number of entities and departments in the city improved the quality of their audit outcomes during the financial year – most notably, the Johannesburg Roads Agency, the Johannesburg Fresh Produce Market and city theatres, which underwent mergers and restructuring during the year under review.

Highlights of the report show:

- 99 percent of all households in Joburg now have access to piped water;

- 98 percent receive above minimum standards-level sanitation;

- Some 2 150 new households were connected to the electricity grid and 7 027 new streetlights were installed across the city;

- Assistance was given to some 6 000 child-headed households;

- Eleven new community-oriented primary care sites were established;

- The city achieved a 34 percent reduction in corruption, while the extended utilisation of the CCTV system resulted in lower crime figures.

The Star