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Johannesburg’s Water Crisis Hits Business Hard

Financial Times Companies •
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Monica Mark in Johannesburg reported that for 25 production shifts, a crucial ingredient was missing in a factory that makes sauces for supermarkets across southern Africa: running water. Near‑constant water outages in southern Johannesburg forced Dickon Hall Foods—a plant owned by Libstar—to “literally truck in water” to the “perpetually difficult site,” causing a R17mn profit shortfall in early 2026. The company closed the Johannesburg plant and transferred production to the Western Cape as part of a restructuring.

The case highlights Johannesburg’s broader decline. The city has had 10 mayors in a decade, overflowing rubbish bins go uncollected, and its road‑maintenance fleet was grounded in June after fuel payments were missed. Eskom threatened cuts over R3.8bn arrears. Analysts warn the ripple effects could be seismic for South Africa’s growth.

The Treasury withheld funding but later released it conditionally, while experts expect little change before November elections. Companies now repair potholes and fund utilities themselves, paying “double taxes” to keep operations afloat. The crisis underscores massive under‑investment, capacity gaps, and skill shortages, with unauthorized spending costing about R12bn yearly.