South Africa asks business to help save ailing Africa’s wealthiest city

South African business leaders say they are in talks with the government about whether they can step in to help revive Johannesburg, the country’s largest and wealthiest city.

The executives, part of the Business for South Africa (B4SA) grouping, said they are assessing whether and how they can allocate resources to addressing the city’s issues, which have been plagued by deteriorating infrastructure and political instability, according to Bloomberg.

Home to around five million people, Johannesburg accounts for about 16% of South Africa’s gross domestic product and hosts the country’s main stock exchange as well as many of its biggest companies, including Discovery.

Last year, Business Insider Africa reported that Johannesburg, often dubbed Africa’s wealthiest city for its concentration of businesses and millionaires, needs an estimated 221 billion rand ($12 billion) to fix its infrastructure crises.

According to a city council review, those challenges include frequent power outages linked to distribution failures, chronic water shortages and long-delayed road and pothole repairs.

President Cyril Ramaphosa, in March, publicly lamented the state of Johannesburg, which will host several Group of 20 meetings this year, including November’s gathering of heads of state.

B4SA is already partnering with the national government to improve logistics, stabilise electricity supply, combat crime and reduce youth unemployment.

Martin Kingston, chairman of B4SA’s steering committee and of Rothschild & Co.’s South African unit, said a decision on whether business will formally help may come in November.

In other national partnerships, business has seconded staff to government departments to boost expertise and capacity, while also providing some funding.

“We are not going to become involved in the politics,” Kingston said. “That we’ve made that clear at all levels of government, including at national but also at a provincial level.”