Municipal financial pressures in Mpumalanga are putting small businesses under strain, with unreliable basic services and delays in municipal processes making it harder for SMMEs to operate, grow and create jobs.
The issue was highlighted during the 2026 South African Local Government Association (SALGA) Mpumalanga Provincial Members’ Assembly, held ahead of the 2026 Local Government Elections. Discussions focused on strengthening local government, financial sustainability and consistent service delivery.
Service disruptions hit businesses
SALGA Mpumalanga Chairperson Cllr Walter Mngomezulu said municipalities are facing increasing consumer debt, rising bulk-service costs, ageing infrastructure and growing pressure to deliver services in difficult economic conditions.
Mngomezulu said municipalities need to strengthen revenue collection, modernise billing systems and improve debt management to ensure that money collected translates into improved services.
For SMMEs, these financial pressures can directly affect daily operations. Water and electricity interruptions can force businesses to stop trading or find costly alternatives, while poor roads can increase transport and vehicle maintenance costs.
Angel Nkosi, director of Angel Network, said financial pressure at municipal level could have a ripple effect on the business community, particularly when it affects service delivery and municipal processes.
“One area we encounter is the difficulty that entrepreneurs can experience when they need to navigate municipal requirements, licensing, compliance and other processes necessary to operate formally,” Nkosi said.
She called for stronger coordination between municipal departments and businesses, so entrepreneurs know where to go, what is required, and how long processes are expected to take.
Infrastructure affects business growth
The SALGA assembly acknowledged that many municipalities are dealing with ageing infrastructure and increasing service delivery demands.
Mngomezulu said communities judge municipalities by whether water flows from taps, electricity remains reliable, potholes are repaired and refuse is collected. These services are equally important to businesses, particularly smaller enterprises operating with limited cash flow.
Senzo Kgaladi, owner of Zenzelayo Pty Ltd, from Kwamhlanga, said municipal challenges have a significant impact on SMME growth and employment.
“When a small business is constantly dealing with unexpected operational costs or interruptions, the owner becomes focused on survival rather than growth,” Kgaladi said.
He said money that could have been used to hire employees, purchase equipment, expand premises or invest in marketing could instead be diverted towards operational challenges.
“This can ultimately affect job creation. A business that could potentially employ five or ten people may remain a one-person or very small operation because the owner doesn’t have enough stability to expand,” Kgaladi said.
Kgaladi said supporting SMMEs is about protecting livelihoods, creating employment and strengthening the township economy.
Businesses want stronger engagement
Nkosi said businesses need a stronger and more structured relationship with municipalities, including regular engagements where SMMEs could raise challenges and receive clear feedback.
“The business community needs regular communication, not only when there are challenges,” Nkosi said.
He said municipalities should work with business forums and SMME-support organisations to help entrepreneurs understand compliance, licensing, opportunities and available support.
SALGA’s address highlighted the City of Mbombela and Govan Mbeki Municipality as examples of municipalities pursuing revenue enhancement, infrastructure development, governance and economic activity.
The assembly also noted that well-managed municipalities can attract investment, create businesses and generate jobs.
Mngomezulu said municipalities need to be “responsive, ethical, financially sustainable” and capable of delivering quality services consistently.
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