Johannesburg grows amid gloom

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.

Source: IOL