Ninety One, an Anglo-South African independent asset management firm, plans to help finance infrastructure projects aimed at reversing Johannesburg’s decline, as South Africa’s business community looks for ways to restore basic services and attract investment to the country’s commercial hub.

“The major city in the country needs to be turned around,” Ninety One CEO Hendrik du Toit said in an interview with Bloomberg Television. Johannesburg has been “appallingly managed,” he said, adding that the firm is developing plans to help alongside other businesses in its network.

Johannesburg faces a critical test

South Africa is due to hold municipal elections on Nov. 4, with voters set to determine which parties control cities including Johannesburg. Years of political instability and mismanagement have left the city owing service providers hundreds of millions of dollars while struggling to deliver reliable water, maintain roads and provide other essential services.

A coalition led by the African National Congress currently governs Johannesburg. Polling cited in the original report showed opposition politician Helen Zille leading mayoral preferences, although she remained short of the support needed to secure an outright governing majority. The election comes as pressure mounts to restore confidence in the city’s economy and administration.

Basic services threaten business

The city’s deteriorating infrastructure threatens its ability to retain executives and attract skilled workers, a concern for companies operating in Africa’s financial capital. Du Toit said Johannesburg could recover relatively quickly, although restoring its infrastructure and public services would require a substantial effort.

“If that city doesn’t turn around, the retention of executive talent would be an issue,” he said, pointing to water outages and pothole-ridden roads. Reliable infrastructure, he argued, is essential to making the city an attractive place to live and work.

Private capital seeks results

South Africa’s economy has struggled to grow by more than 1% annually for over a decade, weighed down by the legacy of corruption and mismanagement under former President Jacob Zuma. Businesses have been reluctant to commit capital, instead holding cash on their balance sheets, Du Toit said, although he sees early signs of a recovery in corporate spending.

The South African Reserve Bank’s latest Quarterly Bulletin showed private-sector fixed investment declined in the three months through June, even as corporate bank deposits increased. The figures underscore the challenge of converting companies’ financial resources into productive investment that can support economic growth and improve public infrastructure.

Durban offers a possibible model

Private-sector investment in renewable energy and a corporate partnership to modernize Pier 2 at the Port of Durban offer potential models for infrastructure development. Pier 2 is the largest container terminal in sub-Saharan Africa, making its modernization a significant test of how businesses can help improve critical logistics infrastructure.

“The investment dollars will start following the results,” Du Toit said. Ninety One intends to mobilize domestic capital first, then attract international investors once projects demonstrate measurable progress and offer appropriate returns.

Ninety One looks to expand its role

Du Toit helped establish Investec’s asset management business in 1991. The operation became Ninety One, which Investec spun off in 2020. The asset manager overseeing more than $240 billion in assets is independently listed on the London and Johannesburg stock exchanges, with operations spanning developed and emerging markets.

Du Toit also served as joint chief executive of Investec from October 2018 until the demerger. He is a nonexecutive director of Naspers and its European subsidiary, Prosus.

For Ninety One, helping finance Johannesburg’s recovery would offer an opportunity to put capital to work while addressing infrastructure constraints that have weighed on South African businesses. Du Toit’s approach hinges on projects delivering tangible results, a condition he considers essential to unlocking larger pools of domestic and international investment.