Municipal service delivery has emerged as a key issue ahead of South Africa’s local government elections, with business organisations warning that unreliable infrastructure, poor service delivery and administrative inefficiencies continue to place pressure on small, medium and micro enterprises (SMMEs) across KwaZulu-Natal.
Business organisations say municipalities will be judged not only on election promises, but on their ability to provide reliable electricity and water, maintain roads, enforce municipal by-laws and implement Local Economic Development (LED) programmes that enable businesses to invest, grow and create jobs.
NAFCOC Deputy President Paulos Ngema said municipalities should become “enablers rather than barriers to business”, warning that poor service delivery continues to undermine entrepreneurship and economic growth.
“A municipality that cannot deliver water, electricity, roads and pay its suppliers on time cannot claim to support economic development,” said Ngema.
He said delayed payments to suppliers, excessive bureaucracy and weak implementation of local economic development programmes continue to place unnecessary pressure on small businesses. Ngema called for stricter enforcement of the 30-day payment rule, fair procurement processes and stronger municipal support for SMMEs.
On Tuesday, KwaZulu-Natal Premier Thamsanqa Ntuli presented an overview of service delivery in the province during the National Council of Provinces Report Back Session at the KwaZulu-Natal Legislature.
The session was held under the theme, Confronting the Challenges Facing the Timely Delivery of Viable Municipalities for Enhanced Delivery of Basic Services to Communities.
Ntuli noted the critical importance of ensuring that communities receive basic services timeously and efficiently.
“Service delivery deferred is dignity delayed,” Ntuli said.
He added that delays in the provision of basic services not only deepen existing backlogs, but also erode public confidence in government and undermine the dignity of communities.
He stressed that improving the timely delivery of services is essential to unlocking blockages, addressing long-standing backlogs and restoring trust between government and the people it serves.
Ntuli said municipalities remain at the frontline of service delivery and must be adequately supported, capacitated and held accountable to ensure that communities experience tangible improvements in their daily lives.
Recognising the importance of small businesses, eThekwini Municipality has announced several initiatives aimed at improving service delivery and supporting economic growth.
In June, the municipality adopted its R75.3 billion Medium Term Revenue and Expenditure Framework (MTREF) for the 2026/27 financial year, with investment focused on infrastructure renewal and improving the reliability of water, sanitation and electricity services.
Following public consultations with residents and business stakeholders, the municipality also approved lower tariff increases than originally proposed.
According to Mayor Cyril Xaba, the revised tariffs are intended to provide relief to residents and businesses while maintaining financially sustainable service delivery.
Beyond infrastructure investment, eThekwini continues to promote entrepreneurship through Local Economic Development initiatives, including the Lions’ Den Business Plan Competition, designated trading spaces for qualifying SMMEs and partnerships such as the KwaMashu Chemicals and Detergents Shared Manufacturing Facility, which aims to strengthen township manufacturing, support cooperatives and create employment opportunities.
The Durban Chamber of Commerce and Industry has also highlighted the importance of dependable municipal infrastructure.
In a recent stakeholder announcement, the Chamber invited businesses to participate in an Infrastructure Working Group focusing on eThekwini’s water infrastructure challenges and their impact on business operations. The Chamber said the engagement would focus on identifying practical solutions to improve infrastructure and strengthen the local business environment.
With South Africans set to vote in the upcoming local government elections, business organisations say municipalities will ultimately be judged on their ability to deliver reliable services, improve the business environment and create conditions that allow SMMEs to grow and contribute to economic development
