Johannesburg, once Africa’s economic powerhouse, is facing an unprecedented crisis. The city’s residential property market has stagnated, with prices remaining at 2010 levels. This decline is a direct result of deteriorating infrastructure, rising crime, and high unemployment.
Social and infrastructural issues compound its economic struggles. Crime, low education levels, and deteriorating service delivery have created a perfect storm that deters investment and drives migration.
The CBD is plagued by derelict buildings, hijacked by gangs, and occupation by undocumented foreign nationals.
The human cost of this crisis is evident in the squalid living conditions of many residents. Buildings are overcrowded, with inadequate access to basic services like sanitation and electricity. The lack of proper housing has led to the proliferation of informal settlements, further exacerbating the city’s social and economic challenges.
The financial implications of this crisis are staggering. The city’s Housing Department estimates it must provide 10 000 additional rooms or rental units to address the shortage. The cost of this would be prohibitively expensive, placing a further strain on the city’s already stretched resources.
The decline of Johannesburg’s property market has also had a ripple effect on the broader economy. Its stagnation has led to a decline in investment, as businesses and individuals seek more attractive opportunities elsewhere. This has resulted in a decline in economic growth, further exacerbating the city’s social and economic challenges.
Property mogul, Sam Mathebula, told Independent Media that the situation in Johannesburg was a stark reminder of the consequences of neglect and mismanagement.
“The city’s decline is a result of years of poor governance, corruption, and lack of investment in critical infrastructure. As the city continues its downward spiral, it is clear that urgent action is needed to address the root causes of this crisis,” he said.
Its residents are bearing the brunt of this crisis.
They live in slum-like conditions and pay rent and protection fees to gangs who collect the money monthly and sometimes weekly.
Muyahabo Chitanga, a Zimbabwean mother of seven, is one of many faces in this crisis.
She lives in a makeshift room in a hijacked building, paying exorbitant rent and struggling to access basic services.
She told Independent Media she even struggles to access the toilet in the building because of its state.
“Three of my children are under eight years old and I have to escort them to the toilet. We use a toilet at a garage across the road where I have to pay R2 to access it. I am unemployed and have to have money every night for my children just to help themselves,” Chitanga said.
The City of Gold, once known as Africa’s richest city, now casts a shadow of itself, with an infestation of derelict buildings haunted by crime.
Previously Independent Media reported that at one point, the economically thriving city was the pride of South Africa, but now it is a burden to the country, with the ever-changing government of the metropolis having no idea what to do with it.
The city is also plunged into darkness constantly, with the residents, who are largely undocumented foreign nationals, complaining of shortages of water.
It has more than 600 hijacked/illegal buildings that populate the CBD. Workers and the arrival of thousands of migrants each month do not help the situation.
The Carlton Centre, a 50-storey skyscraper, the fifth tallest building in Africa and shopping centre on Commissioner and Small streets in the CBD, has become dilapidated and allegedly mostly occupied by illegal immigrants who had come to make a living for themselves in the City of Gold.
If you ask anyone from the 1960s, ’70s, and ’80s, Carlton Centre was the place to go whether for shopping, taking loved ones out, or merely visiting Johannesburg for the first time.
City of Johannesburg Mayor Dada Morero had not responded to questions at the time of going to publication.