ANALYSIS: If the ANC has given up on Joburg, why should business act any differently?
The latest Ipsos polling shows that the ANC is leading in Joburg (31% v 27% for the DA) in the local government elections. But if nothing changes in the City, business might well still leave for greener pastures or bunker down in gated enclaves.
The current local government elections in Johannesburg (Joburg) show the African National Congress (ANC) leading with 31% support, while the Democratic Alliance (DA) follows with 27%. Despite this, business may still leave the city if no changes occur after the elections. Ipsos polling indicates the ANC's share may remain high, and if this trend continues, capital could drastically flow out of the city.
This could result in further division in the city as companies insulate themselves from municipal failure, opting for enclaves and gated developments. This trend would also intensify inequality, as businesses and residents with means would move away from troubled areas. Meanwhile, Tshwane and the Western Cape offer seemingly more promising environments for businesses, with the Western Cape economy growing faster than the rest of the country.
Ultimately, businesses will likely follow a rational course and avoid investing in Johannesburg if it fails to address its corruption and incompetence issues.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
