Image Credit: AFAR

Johannesburg is working to restore R3.6 billion (around $200 million) in suspended government funding by paying down its debts and strengthening financial oversight, according to Bloomberg.

The move comes after the South African government took the unusual step of temporarily withholding funding from 69 municipalities as part of a broader crackdown on financial mismanagement ahead of November’s local elections. The government says the measure is designed to improve fiscal discipline, curb irregular spending, and ensure municipalities meet their financial obligations before receiving additional public funds.

Image Credit: The South African

Johannesburg has been among the hardest hit. Mayor Dada Morero said the city plans to pay nearly R2.4 billion owed to major creditors, including Eskom and Rand Water, by mid-July. Restoring the withheld funding is also expected to strengthen the city’s finances as it prepares to return to the bond market to fund long-overdue infrastructure upgrades.