OPINION| Hyper-Local: Reappraising growth within South Africa’s local municipalities

By Richard Morrow

South Africa has an economic growth problem. And while there has been no shortage of strategic and policy interventions from the national government aimed at remedying this issue, there has been little to show for it.

Addressing the country’s economic growth challenge requires greater focus on the local municipal level given that this is the coalface of South Africa’s economy: local municipalities are home to 67% of the country’s population; roughly half of its labour force; and contribute towards a quarter of the nation’s GDP.

While businesses within each local municipality are responsible for driving economic growth, it is the local municipality that is responsible for enabling them.

The challenge, however, has been the inability or unwillingness among local municipalities to create this enabling environment for business.

One need only look to the Auditor- General of South Africa’s 2022/23 report for an illustration of this reality: 18