Metropolitan municipalities have entered a new political chapter after the local government elections, but for business, the coalition negotiations might prove just as important as the election results.
With no single party securing an outright majority in metros such as Johannesburg, Tshwane, Ekurhuleni and eThekwini, political parties will have to negotiate governing arrangements that will shape how the municipalities manage public finances, maintain infrastructure, support economic transformation and create opportunities for businesses.
Business organisations say their focus is not on which party claims the mayoral chains, but on whether coalition governments can provide the stability, governance and service delivery needed to attract investment, stimulate economic growth and create jobs.
Business Leadership South Africa (BLSA) chief executive Busisiwe Mavuso said the priority should be ensuring coalition governments translate electoral outcomes into stable and effective municipal administrations.
“Our interest is not in which political party governs. Our interest is in whether the government that emerges is capable of delivering basic services, maintaining infrastructure and creating an environment in which business can operate, invest and create jobs,” Mavuso said.
She warned that political instability comes at an economic cost, particularly when leadership changes disrupt municipal decision-making and delay infrastructure projects.
“Businesses are spending money on securing reliable electricity, water and infrastructure because municipalities are failing to provide these consistently. Those are resources that could otherwise be used to grow businesses and employ more people,” Mavuso said.
Best coalitions
Black Management Forum (BMF) president Mpho Motsei said coalitions should be evaluated not by which parties wield the most power but by the quality of their plans and ability to implement them.
“The best coalitions will be those where parties unite under a clear, public agreement that prioritises reliable services, economic transformation, ethical leadership and financial accountability … Businesses need municipalities that function, predictable decision-making and fair access to opportunities.
“A coalition that commits to these goals, hires competent administrators and handles disagreements professionally will create a much better environment for growth. Ultimately, our main concern is whether an agreement will truly expand meaningful black participation in the economy and remain stable enough to follow through on its promises,” Motsei said.
Procurement systems
He said municipalities should improve procurement systems to make them more transparent and accessible, adding that restrictive tender requirements often lock out capable emerging businesses from competing for municipal contracts.
Motsei called for procurement plans to be published well in advance, application processes to be simplified and large contracts, where practical and legally permissible, to be broken into smaller packages that allow small businesses to participate.
Late payments by municipalities also remain one of the biggest obstacles, he said.
“Getting paid on time is just as vital. Municipalities should commit to paying valid, undisputed invoices within 30 days and set up a real way to fix payment delays when they happen.
“Transformation also needs to go beyond just winning tenders. It should include access to municipal premises, trading spots, serviced land and quick business approvals. Success looks like black-owned businesses growing into sustainable, long-term enterprises,” Motsei said.
The BMF wants coalition agreements to include measurable transformation commitments, including opportunities for black women, young entrepreneurs and township businesses to participate in infrastructure investment and municipal development projects.
“Public reports should clearly show who is benefiting, the value of the work being done and the actual outcomes. Infrastructure investment should leave behind more than just roads and pipes; it should leave behind stronger businesses, skilled workers and lasting local economic strength,” he said.
Economic participation
Black Business Council chief executive Kganki Matabane said the business community was not advocating for specific political parties but for coalition partners committed to policies that advance economic transformation and inclusive growth.
He said municipalities have a responsibility to implement national policies, including B-BBEE, to ensure black South Africans participate meaningfully in the economy.
Matabane warned that unstable coalition governments undermine governance and transformation objectives.
“We have seen coalitions before where mayors and MMCs are changed every six months and that renders a municipality unstable. We should regulate coalitions to avoid such. In an unstable environment, transformation is less prioritised as people do as they wish.”
Matabane proposed that economic transformation targets be made public and progress be measured every six months.
Motsei warned that political instability often hurts small black-owned businesses the most because they typically lack the financial resources to absorb prolonged disruptions in municipal services, procurement processes and project implementation.
- No single party won an outright majority in metros like Johannesburg, Tshwane, Ekurhuleni, and eThekwini, necessitating coalition governments.
- Business Leadership South Africa emphasizes the need for coalition governments to ensure stable administrations that deliver basic services, maintain infrastructure, and foster business-friendly environments.
- The Black Management Forum advocates for transparent, accessible procurement systems with simplified application processes and smaller contract packages to support emerging businesses.
- The BMF calls for measurable transformation commitments in coalition agreements to increase participation opportunities for black women, young entrepreneurs, and township businesses in municipal projects.
- The Black Business Council stresses the importance of stable coalition governments committed to economic transformation policies and suggests regulating coalitions to prevent frequent leadership changes.
Metropolitan municipalities have entered a new political chapter after the local government elections, but for business, the coalition negotiations might prove just as important as the election results.
With no single party securing an outright majority in metros such as Johannesburg, Tshwane, Ekurhuleni and eThekwini, political parties will have to negotiate governing arrangements that will shape how the municipalities manage public finances, maintain infrastructure, support economic transformation and create opportunities for businesses.
Business organisations say their focus is not on which party claims the mayoral chains, but on whether coalition governments can provide the stability, governance and service delivery needed to attract investment, stimulate economic growth and create jobs.
Business Leadership South Africa (BLSA) chief executive Busisiwe Mavuso said the priority should be ensuring coalition governments translate electoral outcomes into stable and effective municipal administrations.
“Our interest is not in which political party governs. Our interest is in whether the government that emerges is capable of delivering basic services, maintaining infrastructure and creating an environment in which business can operate, invest and create jobs,” Mavuso said.
She warned that political instability comes at an economic cost, particularly when leadership changes disrupt municipal decision-making and delay infrastructure projects.
“Businesses are spending money on securing reliable electricity, water and infrastructure because municipalities are failing to provide these consistently. Those are resources that could otherwise be used to grow businesses and employ more people,” Mavuso said.
Black Management Forum (BMF) president Mpho Motsei said coalitions should be evaluated not by which parties wield the most power but by the quality of their plans and ability to implement them.
“The best coalitions will be those where parties unite under a clear, public agreement that prioritises reliable services, economic transformation, ethical leadership and financial accountability … Businesses need municipalities that function, predictable decision-making and fair access to opportunities.
“A coalition that commits to these goals, hires competent administrators and handles disagreements professionally will create a much better environment for growth. Ultimately, our main concern is whether an agreement will truly expand meaningful black participation in the economy and remain stable enough to follow through on its promises,” Motsei said.
He said municipalities should improve procurement systems to make them more transparent and accessible, adding that restrictive tender requirements often lock out capable emerging businesses from competing for municipal contracts.
Motsei called for procurement plans to be published well in advance, application processes to be simplified and large contracts, where practical and legally permissible, to be broken into smaller packages that allow small businesses to participate.
Late payments by municipalities also remain one of the biggest obstacles, he said.
“Getting paid on time is just as vital. Municipalities should commit to paying valid, undisputed invoices within 30 days and set up a real way to fix payment delays when they happen.
“Transformation also needs to go beyond just winning tenders. It should include access to municipal premises, trading spots, serviced land and quick business approvals. Success looks like black-owned businesses growing into sustainable, long-term enterprises,” Motsei said.
The BMF wants coalition agreements to include measurable transformation commitments, including opportunities for black women, young entrepreneurs and township businesses to participate in infrastructure investment and municipal development projects.
“Public reports should clearly show who is benefiting, the value of the work being done and the actual outcomes. Infrastructure investment should leave behind more than just roads and pipes; it should leave behind stronger businesses, skilled workers and lasting local economic strength,” he said.
Black Business Council chief executive Kganki Matabane said the business community was not advocating for specific political parties but for coalition partners committed to policies that advance economic transformation and inclusive growth.
He said municipalities have a responsibility to implement national policies, including B-BBEE, to ensure black South Africans participate meaningfully in the economy.
Matabane warned that unstable coalition governments undermine governance and transformation objectives.
“We have seen coalitions before where mayors and MMCs are changed every six months and that renders a municipality unstable. We should regulate coalitions to avoid such. In an unstable environment, transformation is less prioritised as people do as they wish.”
Matabane proposed that economic transformation targets be made public and progress be measured every six months.
Motsei warned that political instability often hurts small black-owned businesses the most because they typically lack the financial resources to absorb prolonged disruptions in municipal services, procurement processes and project implementation.
