Peak derangement: Johannesburg aims for smart city future while battling R6.8bn power debt

Key topics:Smart city/AI push + R73bn investment into Johannesburg by 2027Eskom threatens rolling blackouts over R6.84bn unpaid debtMajor infrastructure tech projects: CCTV, EV charging, water & energy.By Luis Monzon.Johannesburg’s executive mayor, Dada Morero, said that by 2027, the city must be digitally transformed into a smart city, including through AI integration of services.However, on Tuesday, Eskom threatened the metro with rolling blackouts, warning that it intended to interrupt bulk electrical supply unless Johannesburg’s R6.84 billion debt to the utility is settled.In his state of the city address on Wednesday, the mayor said, “Good governance, active and engaged citizenry and a smart city are holding us together.”Morero also said that artificial intelligence (AI) must be used to improve the metro’s services. He did not explain exactly where the technology would be applied, only that it would be integrated by 2027..Read more:.The Johannesburg pyramid: Eleven mayors in ten years and the system driving the city’s decline.At the same time, Morero highlighted enormous incoming investments into the City of Johannesburg, amounting to R73 billion, intended to go towards the city’s infrastructure.He said that R27 billion was from direct foreign investment, while R5.4 billion would drive Johannesburg’s “Smart City Programme.”Microsoft announced the investment in South Africa on 6 March 2026 and said it built on the R20.4 billion the tech giant already invested in the country over the past three years.“This round of investment will enable a wide range of organisations, from start-ups to large multinationals and government entities, to access the cloud and AI solutions,” Microsoft said at the time.It said this would allow organisations to improve “operational efficiency and productivity, optimise the delivery of services, and drive innovation across the South African economy.”Microsoft did not say that the entire amount would go towards Johannesburg, and told MyBroadband in April that a portion of the funds would be used to secure land for the construction of data centres.Morero continued that Johannesburg would receive R7 billion for a waste-to-energy partnership with the National Infrastructure Fund and the Netherlands government.Finally, the city secured R760 million for the Midrand Bulk Water Storage facility to “ensure regional drought resilience.”Millions in technology investments.Morero punted other technologies in his address, including the Integrated Intelligence Operations Centre, which coordinates the city’s CCTV surveillance system..Read more:.Treasury warns Johannesburg over illegal wage deal and funding cuts.As of May 2026, Johannesburg had installed 960 CCTV cameras at a cost of more than R124 million, with around 28% of the cameras offline and actively undergoing maintenance.The city also launched a full electric vehicle (EV) charging station at Reuven, near the headquarters of Johannesburg’s power utility City Power, in April.Morero said that the charging station was now 100% completed. City Power previously told MyBroadband that the full cost of the station was still being finalised.However, it said that the first phase of building the EV charging infrastructure in the city cost taxpayers R14 million, which covered the commissioning of the 10 charging stations and battery storage.City Power said that the Reuven facility enabled the utility to test the technology and understand its energy demands before wider rollouts of additional facilities.“This approach reduces the risks associated with large-scale implementation and ensures that future investments are informed by real operational data,” it said.The utility said it could save up to R29.7 million annually by switching its petrol fleet to electric under a leasing model, and up to R49.3 million annually under an ownership model..Read more:.Eskom’s turnaround at risk from $5 billion municipal debt.Regarding its debt to Eskom, the power utility said continued failure of the metro to honour its electricity supply agreement had forced it to issue the formal notice.Eskom said it had worked with the metro for two years to support it and City Power in meeting the payment obligations for bulk electricity supply..This article was first published by MyBroadband and is republished with permission..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.

Peak derangement: Johannesburg aims for smart city future while battling R6.8bn power debt

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