Johannesburg's Metropolitan Tech Company (MTC), the city's main digital infrastructure provider, is facing significant operational challenges. With a mere 26 network employees tasked with maintaining 1,200km of fibre, the company is struggling under crippling budget constraints, skills shortages, and debt. This has resulted in critical positions being left vacant, affecting its ability to function optimally and service customers.
MTC's 2026/27 business plan aims to expand public Wi-Fi, improve digital access, and introduce connected technologies across Johannesburg, particularly in underserved communities. However, the plan also acknowledges that the company is "currently under-capacitated" with critical positions vacant due to budget constraints. An internal skills assessment identified gaps in network operations, business development, and performance management, highlighting the need for urgent attention.
The staffing breakdown at MTC reveals a concerning picture, with only 26 employees in network operations, alongside eight in finance, six in supply chain management, five in audit, risk and compliance, and just one in legal services. The company relies heavily on a subsidy from the city, with over 60% of the subsidy used to service its shareholder loan balance. MTC recorded R169m in subsidy revenue and warns that any reduction in the subsidy could leave it unable to meet expected loan repayments.
MTC's budget for 2026/27 provides for around R570m in operating expenditure but only R20.7m in capital expenditure. The company acknowledges that insufficient capital budget allocations have affected its ability to maintain existing network infrastructure and equipment, as well as its ability to grow and expand the network. Ageing and dilapidated equipment, power outages, and vandalism are among the reasons MTC has struggled to meet its network availability targets.
The entity describes itself as operating within a "constrained funding environment" shaped by liquidity pressures, intercompany debt, and a growing shareholder loan against a depreciating asset base. Maintenance, security, repairs after vandalism and cable theft, and power-related disruptions have reduced MTC's ability to reinvest in network modernisation and expansion. The plan cites "high corruption levels and inefficient bureaucratic processes" as driving up operational costs and deterring potential investors.
Questions hang over one of MTC's most visible smart city services, with the entity recording 1,574,979 connections to the city's free Wi-Fi network in 2024/25 but setting a target of just 200,000 connections for 2026/27. The business plan does not explain the sharp difference between the two figures. In Slovo Park, where MTC launched a "smart Wi-Fi" pilot in March, residents have expressed concerns about the effectiveness of the service, with some reporting poor signal quality and unfinished work.
Despite these challenges, MTC remains committed to its goals, with transport MMC Kenny Kunene emphasising that access to the internet is a human right. The company plans to progressively expand the smart Wi-Fi model to other communities, depending on continued budget prioritisation by the city. However, the experiences of residents in Slovo Park raise questions about whether the pilot is delivering everything that was promised and whether Johannesburg can expand increasingly sophisticated digital infrastructure while the entity responsible for maintaining it says it lacks sufficient funding and is under-capacitated.
Key points
- MTC faces significant operational challenges due to budget constraints, skills shortages, and debt.
- The company's 2026/27 business plan aims to expand public Wi-Fi and digital access, but acknowledges critical vacancies and under-capacitation.
- The smart Wi-Fi pilot in Slovo Park has raised concerns about effectiveness and unfinished work, despite initial enthusiasm from residents.
