Metrobus cuts services as Joburg’s financial crisis deepens

Joburg’s financial challenges are starting to affect its bus services as temporary service reductions across city routes will be implemented due to what it calls “sustained” budget reductions over the past financial years. Metrobus, which transports between 12,000 and 16,000 passengers a day, also blamed the ongoing significant rise in diesel costs for the decision that came into effect on June 1. “The recent significant rise in diesel costs has made matters worse.

Despite implementing cost-saving and efficiency measures, the current financial position requires a temporary adjustment to service levels to ensure the bus service’s sustainability and prevent further financial instability,” Metrobus MD Bongani Radebe said in a statement. From the metro’s budget of R80.9bn for 2023/24, Metrobus received R663m for operations and a three-year capital budget of R354m to buy new buses and refurbish the engines and gearboxes of its fleet, and to implement a cashless ticketing system. For the 2024/25 financial year, Metrobus received an allocation of R214.8m for capital projects, including the purchasing of new buses, engine and gearbox refurbishment, building upgrades, and introducing a cashless ticketing system.

In the 2025/26 financial year, the bus service was allocated an operating budget of R779m. “The service reductions are not permanent. Metrobus will continuously monitor passenger demand and financial performance, and services will be reviewed as the organisation’s financial position improves,” Radebe said.

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The city is technicallyinsolventas revenue collection levels do not meet budgeted targets, and it has an over-expenditure of about R3.9bn on employee-related costs, bulk electricity purchases, inventory consumed and operational costs. The council’s finances are severely constricted, with poor revenue collection resulting in its failure to meet service delivery targets. In April,GCR Ratings revised the city’s ratings outlookfrom stable to “rating watch negative” because of the metro’s delays in finalising its annual financial statements.

The city, which has been battlingwater challenges, has an infrastructure backlog of more than R200bn. It owesEskomR5.3bn plus a current account of R1.6bn. Deputy mayor and finance political head Loyiso Masuku last week tabled a R97.1bn budget for the 2026/27 financial year, with operating revenue set at R90.4bn, operating expenditure R88.3bn, projected surplus R2.1bn (before taxation and capital grants) and capital budget R8.8bn, rising to R25.3bn over the medium term.

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