City of Joburg is paying five times more than standard to electrify informal settlements

Every shack electrified under the City of Joburg’s upgrading drive is costing ratepayers up to five times more than the national benchmark, as much as R144,000 per connection, compared with the national standard of R25,000 to R30,000.

Behind these figures lies a pattern of non-disclosure and spending contradictions. Budget data obtained by Daily Maverick shows projects with missing beneficiary counts, withheld contractor payments and shifting explanations from city officials who insist the numbers of beneficiaries and payments made to contractors are “confidential”.

Electrifying shacks in Joburg’s inner-city informal settlements now costs more than building new RDP houses. Of six projects approved for 2024/25, the city released verified figures for only two: South Hills and Jumpers (Cleveland):

• South Hills: R20.4-million for 332 units – R61,445 per connection.
• Jumpers: R69.4-million for 480 structures – R144,583 per connection.

Even factoring in an estimated R2.5-million to R4.2-million for shack relocations and site prep, the cost remains far above the national benchmark of R20,000 to R30,000  per connection under the Upgrading of Informal Settlements Programme (UISP) and Integrated National Electrification Programme.

Of the six Region F projects – South Hills, Denver, George Goch, Jumpers, Shalazile and The View – only the last two have reached completion.

Together they form part of a R380-million regional budget, of which R284-million (75 %) has already been spent, yet several sites remain incomplete or without consultants.

A September 2025 Capex report lists:

• South Hills (Ward 57): R20.4-million allocated, zero spent.
• Denver: R74.9-million of R96.2-million (78 %) spent, yet only a quarter complete.
• George Goch: R56.9-million of R75-million spent for 75 % progress.
• Shalazile: 98% complete, R68-million of R79.2-million spent.
• The View: 98% complete, R32.8-million of R39-million spent.
• Jumpers: 40% complete, R51.1-million of R69.4-million spent.

Even these “successes” work out to R250,000 to R400,000 per connection, up to six times the norm.

A closer look at Jumpers reveals how chaotic, and expensive, the process is.

Jumpers: millions spent, lights off

Jumpers, in Cleveland, is the costliest and most chaotic case is. It’s a settlement of roughly 3,000 people who have waited two decades for electricity. Despite R69.4-million allocated, progress sits at about 40%, with only 64 concrete poles, a mini-substation and a short cable trench visible on site.

Mervyn Cirota, Gauteng MPL who serves on the human settlements portfolio committee, said there was “total confusion” at Jumpers and the city was not providing adequate answers to questions from both residents and councillors.

“From the little information we have been given, it is clear that the electrification costs are way above the national standard. It is increasingly clear that there is no coordination between national, provincial and local government.

“There are a number of unanswered questions here. Where are the plans for other services, such as water and bulk sewage? There are also fire safety and security concerns from the nearby factories and petrol station regarding the extension of the settlement closer to them.

“We are asking for a full breakdown of future plans for the area which are not forthcoming,” said Cirota.

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The land itself remains zoned “mining”, raising questions about legality. Work began early in 2025, but quickly descended into confusion when a contractor pegged 410 stands on the wrong parcel of land, a vacant play area used by children. Ward councillor Neuren Pietersen halted the work after discovering the pegs were below the acceptable size.

After the human settlements department rectified this to 230 stands, work again stopped when the contractor left in July 2025, claiming non-payment.

Following Daily Maverick’s questions in September, the same contractor returned, demolishing just a few shacks belonging to illegal foreigners. Weeks later, a community leader was murdered and construction froze once more.

Residents have been given three different budget figures: R83-million, R69.4-million, and, according to the national government, R35-million. The city insists “R69-million is correct and our final response.”

‘Way overpriced’

Pietersen says officials cannot agree on the project’s legal or planning status:

“Human Settlements now claims Jumpers is B2 undevelopable, but no budget for B2 upgrades was ever approved in the 2022 council item. Different documents say different things. It’s systemic dysfunction. The land hasn’t even been rezoned, it’s still marked as mining. The city is a law unto itself.”

He adds that neither he nor residents have ever seen official UISP plans.

“I get confusing information all the time, but the figure of 280 stands at a cost of around R69.4-million they have given us, is way overpriced. Also, they installed only a mini substation with about 500m of cabling, whereas the original plans showed much longer connections from the other side of Jumpers, so the cost should have been reduced,” he said.

Illegal mining continues beneath nearby factories; 34 zama-zamas were removed during recent demolitions, but soon returned. The factory owners themselves have had no direct feedback from the city.

Contractor Moeketsi Mpetha, who pegged the 410 sites, first told residents he left over non-payment, then reversed his decision: “Jumpers is now famous. Residents didn’t know the full story. I am being paid.”

Community liaison officer Masande Madikane said work briefly resumed after media attention, “Officials were here every day once Daily Maverick asked questions. They demolished some shacks. We were told there was R83-million, now they say differently.”

‘We’ll electrify swiftly’

City Power spokesperson Isaac Mangena vehemently distanced his utility from the chaos at Jumpers, saying they are only an implementing agent:

“The reported R83-million refers to the total budget allocated by Human Settlements. We don’t hold the budget or peg stands. Once the site is handed over, we’ll electrify swiftly. The department is responsible for appointment, management and payment of contractors.”

MMC for Human Settlements Mlungisi Mabaso said only 280 stands were pegged, each 48m², the correct size: “The project is budgeted at R69.42-million, the contractor has not abandoned the site.”

Of the R69.4-million in funding, R35-million comes from the UISP grant, and that part of the money has been spent on materials, while the budget for internal reticulation remains intact, said Mabaso. It’s unclear where the other R34.9-million comes from.

“The city is not at liberty to discuss private contractual matters as to how much has been paid to contractors.”

The city acknowledged reports that residents have voiced frustration and even threatened protest action, but urges patience as the project remains on track for completion within the approved timeframe and budget, he said.

Mabaso’s spokesperson, Penwell Dlamini, when pressed for the number of people in the other inner city informal settlements that electricity was being provided to, said the department was unable to provide them “as numbers constantly change”.

He said other services, such as water and bulk sewage, would follow.

“Electricity is the first thing that people want.”

He could not explain where the difference between the R35-million from national and the R69.4-million stated by the city came from.

Residents suffer

For residents, those assurances mean little. Their living space has shrunk as shacks are moved to make way for poles, and the only open space used as a playground will now be occupied by structures.

“We have children who used to play here. Now they want to squeeze those of us who have to move because of the electrification into small stands.

“Some of us have three-roomed shacks. The kids have lost their playground. We were promised streets, but there’s only a single lane. This is a concentration camp,” said Gcobisa Dingiswayo.

Prince Gamede and Muriel Somi agreed: “This is a well-established settlement. Families have made lives here. Even a basic site-and-service scheme would have been better.”

National department clarifies support

The national Department of Human Settlements confirmed that Jumpers is implemented and managed entirely by the City of Johannesburg, which received R35-million in national funding support.

Spokesperson Tsekiso Machike said, “The project forms part of the Upgrading of Informal Settlements Programme and is funded through the Informal Settlements Upgrading Partnership Grant (ISUPG). The City of Joburg was given R35-million for the project.

“Unlike smaller municipalities, metros submit their ISUPG business plans directly to the National Department rather than through the province. The city itself identified Jumpers as a priority project, not the national department.”

He said the department usually conducts quarterly project site visits to monitor progress and provide support, but Jumpers was not scheduled for inspection this quarter. Regular performance reports are submitted by the city under the Division of Revenue Act. DM