Joburg rates will rise in July
'We are still stable, and you can see this with our credit ratings. Even your banks are still investing in the city in terms of loan funding and capital expenditure. We would want that to move forward and ensure that we are liquid sufficiently and be able to reinvest our own cash into our infrastructure.'
He conceded that the size of the city posed a challenge, indicating the capital expenditure budget should ideally be sitting at R15bn.
'At the moment, we are limited in terms of what we can invest and that is the reason that we are in talks with DPSA (department of public service & administration) to look at off-balance sheet investments. Big metros, in particular Cape Town, eThekwini and ourselves, are self-reliant in terms of where we are going to get funding.
'Whatever plans we have as the City of Johannesburg we rely on tariffs and the collections thereof. We do not have the luxury of SOEs (state-owned enterprises) in terms of bailouts and the like. Understanding the terms and where the city is coming from when we set these tariffs is quite important.'
Moraka criticised the outcry over tariff increases, particularly for water and electricity.
'Eskom is the generator of electricity and we are a distributor, we've got the distribution networks. As a generator, their tariff increase has got an impact on what we set as the distributor. If the tariff approved by Nersa is 12.74% for the generation of electricity, then the city has to set a cost-reflective tariff.'
He said they decided not to increase tariffs at the same rate, saying this was the result of key deliberations with the Treasury.
'In their view, we should increase at the same proportion as what the bulk generators increase by. But our argument was that we are already seeing an overburdened resident and business in the City of Johannesburg and we must plough back into their interests and ensure efficiencies within our own systems. So whenever there are leakages, we must intervene.'
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IOL News
10 hours ago
- IOL News
Can Angola overcome corruption to attract Western investment?
Angola hosted the US-Africa Business Summit in Luanda, hoping to showcase investment opportunities and strengthen ties with American and other Western businesses. Image: Supplied ANGOLA'S government has been working hard to court Western investors, but a fundamental problem continues to hold the country back: rampant corruption. In late June, Angola hosted the US-Africa Business Summit in Luanda, hoping to showcase investment opportunities and strengthen ties with American and other Western businesses. The event brought together heads of state, ministers, and executives from both continents. It was meant to signal that Angola is open for business beyond its traditional oil sector. However, behind the optimistic speeches and networking, a deep scepticism lingers among Western investors, who have seen promising talks before but remain wary of putting their money into a system widely seen as opaque and corrupt. Analysts and experts argue that Angola must 'get its house in order' internally if it wants to regain the trust of Western investors. 'Our business environment has discouraged foreign investors from investing in Angola,' according to Osvaldo Mboco, an Angolan analyst in international relations. Mboco points out that despite Angola's eagerness to attract capital, endemic corruption and legal insecurity continue to undermine investor confidence. In practical terms, contracts are hard to enforce, and the rules of the game can change without warning, a major red flag for any serious international investor. According to Mboco, Angola will only fully benefit from high-profile events like the US-Africa summit if it can ensure solid legal guarantees for investments and demonstrate that contracts and property rights will be respected. In other words, Angola needs to clean up governance, enforce the rule of law, and stamp out graft — essentially, make a convincing break with the practices that have scared investors away. Another expert, Crispin Senga, reinforces this assessment bluntly. 'The Angolan economy is not in a position to attract foreign investment mainly due to corruption, which still reigns in the country,' Senga observes, also citing insecurity and poor communication channels as contributing factors. Despite a change in leadership and repeated promises of reform in recent years, corruption still permeates many levels of business and government in Angola. This creates uncertainty for Western companies, which worry that deals might be derailed by bribery, favouritism, or sudden policy shifts. Senga warns that Angola has been too focused on polishing its external image, for example, hosting summits, making international pledges, while neglecting the internal reforms needed at home. As he puts it, as long as Angola continues to prioritise projecting a good image abroad but lets its domestic reputation slide, 'it will be difficult to achieve great results.' Essentially, no amount of international public relations can substitute for real changes on the ground that investors can see and feel. Indeed, Angola's international image will ultimately only improve if its internal conditions do. Senga insists that the consolidation of Angola's reputation globally 'must be done internally first.' The country needs to demonstrate that it has a friendly and stable business environment where foreign investors are welcome and protected. That means clear regulations, transparency in public deals, and visible punishment of corruption when it occurs. Western investors, unlike some others, tend to have shareholders and compliance rules that prevent them from operating in highly corrupt environments — they face legal and moral pressure to avoid paying bribes or getting entangled in scandal. Many Western companies recall Angola's past notoriety for corruption and want proof that those days are ending. President João Lourenço, who took office in 2017, launched an anti-corruption drive and even went after some high-profile figures from the previous regime. Those moves initially raised hopes. However, progress has been mixed and slow, with critics saying much more needs to be done to reform the judiciary and ensure transparency. In global rankings like Transparency International's index, Angola still scores near the bottom, almost at the very end, though not literally the last, reinforcing the perception that graft remains a way of life. This lingering reputation means that even when Angolan officials invite Western investors with attractive offers, many stay on the sidelines waiting for concrete signs of change. The contrast with non-Western investors is telling. Angola has long managed to draw investments and loans from countries like China, which often attach fewer governance conditions. Chinese-financed projects, roads, railways, and housing developments exchanged for oil have proliferated over the past two decades, even as Western private investment (outside the oil industry) largely stagnated. But Western nations and institutions demand certain standards. As Crispin Senga notes, the United States and its allies have their own criteria in dealing with African partners, emphasising values such as democracy, human rights, good governance, free markets, and combating corruption. In practice, this means US or European funding is more likely to flow to Angola if the Angolan government can demonstrate accountability and clean governance. It's a different approach from the one Angola was used to during its years of easy oil-backed loans. Now, if Angola wants diversified investment in manufacturing, infrastructure, technology, and agriculture from Western companies, it must convince them that their money won't vanish into shadowy patronage networks or be stymied by bureaucracy and graft. A clear example of the gap between announcements and reality is the much-touted Lobito Corridor project. This major infrastructure initiative, a railway linking Angola's Atlantic port of Lobito to the mineral-rich regions of the Democratic Republic of Congo and beyond, has been hailed as a flagship of US-Angola cooperation in Africa. Western leaders often cite the Lobito Corridor as a model project that can boost regional trade and showcase high-standard investment. During the summit in Luanda, the corridor was highlighted as a cornerstone for economic integration, and it had been the subject of high-level attention even before that. In late 2024, then US President Joe Biden visited the region and drew attention to the Lobito Corridor as a symbol of America's commitment to African infrastructure. In April this year, a delegation of ambassadors from the US and Europe, led by American diplomat James Story, toured the corridor, underscoring international support. On paper, the project has backing from the Group of 7 nations, the European Union, and the US. International Development Finance Corporation (DFC) and the U.S. Export-Import Bank. It has been praised by visiting diplomats as a model of international cooperation and seemingly represents exactly the kind of big-ticket investment Angola desires from the West. Yet, for all the fanfare, the dollars have been slow to arrive. The US DFC announced around $250 million in financing for the Lobito Corridor back in February 2024, and additional investments totalling $553m were earmarked to modernise the railway line and expand the port facilities. As of mid-2025, however, not a single dollar of that promised funding has been disbursed. The Lobito Corridor project, while still moving forward, has had to rely on the resources of its concession consortium, known as LAR, and other interim financing. Despite Angolan participation in the project, the consortium itself is made up exclusively of European firms, which, for now, are effectively carrying the costs themselves. They publicly downplay the delay in funding, expressing confidence that the pledged money will eventually come, but the holdup is noticeable. Each month that passes without the US development funds is a reminder that Western financing often comes with strings and scrutiny. Before releasing money, agencies like the DFC typically conduct extensive due diligence, ensuring that procurement is clean and funds won't be misused. The slow trickle of funds for Lobito may simply be bureaucratic, but it also symbolises Western caution: grand announcements will not automatically translate into cash until Angola proves it can meet the standards expected. The Lobito Corridor case illustrates a broader pattern. Even when Western governments and companies see potential in Angola — whether due to its strategic location, natural resources, or market size — they proceed carefully and often conditionally. Angola's officials have promoted the country's potential in forums from Washington to Brussels, touting reforms and new investment laws. But many in the international business community remain unconvinced that the climate on the ground has truly changed. Decades of entrenched corruption and closed-door deals cannot be reversed overnight, and Angola's reforms to date, while notable, have yet to transform how business is done in a way that the average investor can tangibly experience. Meanwhile, Angolan authorities sometimes express frustration that Western investors are not seizing opportunities quickly enough, especially as competitors from China, the Middle East, or elsewhere show up more readily. The difference often comes down to trust: Western investors need to trust that their capital will be safe and their ventures treated fairly. Right now, that trust is in short supply. For Angola, the stakes are high. The country is emerging from a difficult period of low oil prices and a pandemic-induced economic slump, trying to diversify an economy that has long been heavily dependent on oil exports. Western investment could bring in not just money but also expertise, technology, and jobs in sectors like manufacturing, agriculture, and renewables, helping Angola reduce its reliance on oil and create broader prosperity. The government in Luanda clearly recognises these benefits; that's why it has been actively engaging with Western partners and hosting events like the US–Africa Business Summit. Yet, as analysts have pointed out, good intentions and high-profile events will mean little unless Angola demonstrates real change. Corruption is not just a moral issue; it has a direct economic cost. Each instance of graft or nepotism can scare away a potential investor or derail a project that might have created jobs for Angolans. Conversely, every concrete anti-corruption reform — such as enforcing transparent public tenders, empowering an independent judiciary, or protecting whistleblowers — sends a positive signal to investors that Angola is serious about doing business the right way. In the end, Western investors will return to Angola only when they see evidence that their mistrust is no longer warranted. That means more than just promises; it means visible action and consistent enforcement of rules. Angola will need to continue and deepen the anti-corruption campaign started under Lourenço, ensuring it's not just targeting political rivals but truly improving governance at all levels.
Mail & Guardian
12 hours ago
- Mail & Guardian
Correctional services cuts consultant costs, pushes to build internal capacity
Correctional Services Minister Pieter Groenewald told the parliamentary committee that he would monitor the department's use of consultants and look 'into the amount of money we can save'. (Delwyn Verasamy/M&G) The department of correctional services is working to significantly reduce its reliance on consultants, using them 'only when necessary' to improve governance and cut irregular expenditure, it said on Tuesday. According to a presentation delivered to parliament's portfolio committee on correctional services, the department's consultant-related spending dropped to R29.2 million in the 2025-26 financial year, down from R119.3 million the previous year. Its historical over-reliance on consultants was driven by governance weaknesses, a shortage of critical skills and the complexity of managing large-scale projects, chief financial officer Lebogang Marumule told committee members. In the past, the department faced recurring issues of non-compliance with procurement prescripts, limited internal capacity and repeated findings from the auditor-general regarding irregular contract splitting. Marumule said that the clearing of irregular expenditure has been 'a very, very tedious exercise with which the department of correctional services has been struggling, with transactions going as far [back] as 2008'. The previous department of correctional services audit committee, he said, had mandated that the management of R6.7 billion in irregular expenditure should be a project undertaken by the department and consultants were sought in this regard. The department had tried to deal with the irregular expenditure itself, 'but we were not successful', he added. The department experienced a massive spike in expenditure in 2020-21 and 2021-22, when the treasury issued an instruction to it, as well as the departments of health and police, that they needed inventory management systems. Correctional services used consultants for this, said Marumule, 'who travelled the whole country'. Expenditure normalised when those contracts came to an end. In 2023-24 and 2024-25 there was another spike, when consultants were used to resolve irregular expenditure investigations and securing contracts. According to the department's annual report for the year ending March 2024, consultants were brought in primarily to support accounting, auditing, engineering and compliance functions. In that report, the department said it was working to reduce its dependence on consultants but acknowledged that internal constraints continued to limit its ability to meet operational requirements without external assistance. Tuesday's report indicated that consultants were engaged to assist in areas such as project management, oversight, translation services and occupational health and safety compliance. Despite repeated findings by the auditor general highlighting concerns around irregular contract practices, the department maintained that the use of consultants remained vital in plugging internal capacity shortfalls. The portfolio committee heard that a sharp increase in consultant spending was recorded in 2021-22, when the department spent R136 million — more than triple the previous year. That figure dropped to R19.4 million in 2022-23 as several contracts ended. But the trend reversed again in 2023-24 and 2024-25, with spending climbing to R61.8 million and R119.3 million, respectively. The department attributed this renewed spike to the advertisement of bids aimed at resolving irregular expenditure investigations and securing compliant contracts. Despite the fluctuations, the 2025-26 forecast reflects a return to cost containment, as several contracts are set to expire by July and August 2025. Highlighting the progress made in reducing its irregular expenditure from R6.7 billion to R788 million, Marumule said that consultants played a role in identifying and rectifying non-compliant financial practices, as well as supporting oversight structures such as the audit and risk committee. The department has since adopted a formal reduction strategy focusing on resource optimisation, capacity development, strategic alignment and skills enhancement. The strategy aims to ensure that external consultants are only used when necessary and that internal staff are equipped with the skills needed for long-term sustainability. Reducing dependence on external consultants by building internal capacity and expertise was now a central goal. But the department also acknowledged that challenges remained, including persistent non-compliance with prescripts, unavailability of contracts and risks of renewed irregular expenditure if internal capacity was not adequately strengthened. Correctional Services Minister Pieter Groenewald told the parliamentary committee that he would monitor the department's use of consultants and look 'into the amount of money we can save'. The department is prioritising internal training and development, while tightening oversight over the procurement of services to ensure alignment with treasury regulations.
Mail & Guardian
13 hours ago
- Mail & Guardian
A new approach to higher education will create great opportunities
Postgraduates, the future researchers, leaders and innovators, face an uphill battle for funding and support. Graphic: John McCann/M&G Higher education is under pressure globally to transform, and the current geopolitical uncertainties are not helping the situation. The role and value of higher education is being questioned and, as the cost of tuition increases so does student debt, with a resultant decrease in revenue for institutions of higher education. This is exacerbated by declining enrollment triggered by demographic shifts seeing parts of the world experiencing ageing populations and a shrinking college age population. In addition, competition from alternative education offerings, and degree pathways, online colleges, courses, trade school and apprenticeship programmes, offer students cheaper and often quicker and more cost-effective education choices. This said, according to a newly released study by United Nations Educational, Scientific and Cultural Organisation, the number of students enrolled in higher education worldwide surged from about 100 million in 2000 to about 264 million in 2023, more than doubling in just over two decades. But these gains are unevenly distributed across regions. In Europe and North America, nearly 79% of the tertiary-age population is in higher education — in stark contrast to only 9% in sub-Saharan Africa. Amid the need for transformation and increased access, higher education in South Africa and on the continent has many competitive advantages. Diminishing revenue is an issue and increasing student debt and costs are still high but are comparatively lower than many other countries. And although universities are criticised for being ivory towers removed from societal concerns, graduating students with degrees that bear no relevance for societies plagued by unemployment, studies show that despite high joblessness and stagnant economies people are still better off having a degree . South Africa does not experience any decline in enrolments. To the contrary, higher education institutions cannot absorb all the hopeful potential students that apply to study and the number of applications increases each year. In short we do not have the study spaces to increase enrolments further. The University of Johannesburg, for example, received more than 700 000 applications for just over 11 000 spaces for the 2025 academic year. And with increasing costs of studying overseas, potential students in Africa will increasingly choose to study at home and South Africa will become an even more desirable study destination. Neither do we see a shrinking college-aged population. Africa has one of the youngest populations in the world. We need to find ways to turn this to our advantage. A colleague from Japan recently told of how his university offers discounts to senior citizens to return to university. This is clever, given that Japan has one of the world's fastest growing ageing populations. South African universities can learn from this. A young population presents significant opportunities, but it also comes with big challenges. Unemployment remains a major concern, as millions of young people enter the labour market each year with limited prospects. At the same time, critical gaps in infrastructure, healthcare systems and climate resilience must be addressed to keep pace with Africa's rapidly expanding population. To equip this generation for the future of work, substantial investment in education and skills development is Universities can be agile, flexible and, importantly, innovative . If we centre innovation and job creation we can facilitate and accommodate a fuller swathe of degree and course offerings tailored to real needs and demands of a job market in need of a reset. Stackable degrees and micro credentialing — that is, short, focused certifications that validate specific skills or competencies — open a multitude of opportunities for upskilling and reskilling, as well as skills development tailored to specific needs. These are offerings designed to be completed in weeks or months and, as such, offer a quicker and more accessible alternative to traditional degree programmes. Micro credentials are especially useful in fast-changing industries, helping people stay current, boost their careers and show a commitment to continuous learning. Imagine, for example, if institutions of higher learning can be given substantial tax or other benefits for offering courses at a reduced cost to small and medium seized business owners. We could create a whole new eco-system of students who study while being economically active. This would also be a way to compete with newer alternative education pathways. Such arrangements will also ensure higher education and universities play a role in entrepreneurship and in creating startup ecosystems. But universities do more than provide degrees and certifications. An essential part of their function and mission, regardless of whether we teach online or in classrooms, is to act as meeting points and melting pots of people and ideas. The Japanese example cited earlier is an example. In addition, the notion of universities as anchor institutions has gained considerable traction in recent years. Ideas of universities as ivory towers removed from their communities is increasingly being overtaken by a focus on community engagement and societal includes how the institution contributes to economic transformation, infrastructural development and sociocultural transformation in their own locale and also nationally, regionally and continentally in the South African and African context. Reinventing higher education presents a major opportunity with far-reaching effect, but it requires strong collaboration between the public and private sectors. To stay relevant in a rapidly changing world, universities must become agile, outward-facing institutions. Through strategic partnerships, they can align academic programmes with industry needs by co-designing curricula, offering micro credentials and embedding real-world experiences such as internships and apprenticeships. Beyond teaching, joint research and innovation hubs allow universities to tackle pressing issues such as climate change, healthcare and artificial intelligence. Collaboration in shared infrastructure and open data further supports smart campuses and solutions in areas such as public health and urban planning. Ultimately, these partnerships position universities as key drivers of innovation, development and leadership in a rapidly evolving world. This should be the mission for South African and African universities. Ylva Rodny-Gumede is the head of the Division for Global Engagement and a professor in the School of Communication at the University of Johannesburg.
