On 15 April 2026, President Cyril Ramaphosa delivered a keynote address at the National Local Economic Development Summit, hosted by the Township & Rural Economic Development Agency (TREDA). The summit brought together ministers, local government leaders, business representatives, and community stakeholders to chart a path for inclusive growth and small business empowerment.
Context: Building on Investment Momentum
The President opened by noting that the summit followed the sixth South Africa Investment Conference, which secured a record R890 billion in pledges across provinces. He emphasized that investment translates into real impact at the local level—in metros, towns, and villages—where entrepreneurs and municipalities drive development.
Challenges Facing Local Economies
Ramaphosa acknowledged persistent obstacles undermining local economic development:
- Weak financial management and revenue collection in municipalities.
- Poor infrastructure maintenance leading to unreliable electricity, water insecurity, and unsafe trading environments.
- Bureaucratic barriers that slow down business licensing and hinder SMME growth.
- Limited integration of township and rural enterprises into larger value chains.
He stressed that fixing governance is essential to improving service delivery, which in turn unlocks local economic potential.
Four Action Areas Proposed
1. Unblocking Service Delivery Constraints
- Prioritize infrastructure maintenance and investment in energy, water, roads, and logistics.
- Municipalities must budget adequately for infrastructure upkeep (Treasury guidelines recommend 8%, but many allocate less than 1%).
- Leverage private investment to strengthen local infrastructure.
2. Ease of Doing Business
- Cut red tape to support both large investors and township entrepreneurs.
- Address backlogs in issuing business licenses and permits.
- Implement reforms under the Business Licensing Bill and Red Tape Reduction Framework.
- Encourage continuous engagement with local business forums.
3. Operating System of Growth
- Treat local economic development as a systemic outcome, not isolated projects.
- Ensure reliable basic services, transparent approvals, and disciplined procurement.
- Formalize the District Development Model’s One Plan as binding compacts for regional growth.
- Promote structured regional economic partnerships that integrate township and village economies into broader markets, including the African Continental Free Trade Area.
4. Capacity and Professionalisation
- Professionalise municipalities with merit-based appointments and strong ethical standards.
- Strengthen governance structures to be capable, accountable, and inclusive.
- Mobilize development finance institutions to de-risk municipal infrastructure and expand MSME financing.
- Call on established businesses to partner with municipalities, develop local suppliers, and open value chains.
Call to Action
President Ramaphosa concluded by urging all stakeholders—government, business, academia, civil society, and traditional leaders—to commit to a national compact for Local Economic Development. He emphasized:
“South Africa is a country of entrepreneurs. Our task is to unleash their potential and, in so doing, to build an inclusive economy that creates opportunities for all.”
Significance of Day One
The keynote set a clear agenda for the summit: shift from diagnosing problems to implementing solutions. By focusing on infrastructure, ease of doing business, systemic growth, and capacity building, the President outlined a blueprint for municipalities to become true incubators of economic activity and engines of inclusive growth.
