ACDP urges Joburg to prioritise debt collection over new loans amid funding concerns

The African Christian Democratic Party (ACDP) has urged the City of Johannesburg to cease acquiring new loans and instead focus on collecting the billions of rands it is currently owed.

The party raised these concerns following reports that a recent funding request to the Agence Française de Développement (AFD) was rejected. The rejection was allegedly due to non-compliance with conditions tied to a previous R2.5 billion loan. While the City has denied these claims, the ACDP maintains that the metro must prioritise recovering its debt over seeking further financing.

According to the ACDP’s Chris Rohlssen, the City is currently owed more than R71 billion. A significant portion of this amount has been outstanding for over a year, including approximately R1.4 billion owed by various government departments.

“Although the City denies this reported non-compliance, the repeated requests for finance are indeed worrying,” said Rohlssen. “South Africa’s biggest city needs to collect the money owed to it and stop taking loans. Johannesburg’s R71.9 billion debt crisis puts the city’s services at risk.”

The party warns that without a shift in strategy toward aggressive debt recovery, the financial stability and essential service delivery of the country's economic hub remain in jeopardy.