Weak municipalities are choking jobs and investment, says Ramaphosa

By Johnathan Paoli

President Cyril Ramaphosa said on Wednesday that weak municipal services and red tape were stifling entrepreneurs and deterring investment.

Delivering the keynote address at the 2026 National Local Economic Development Summit in Ekurhuleni, Ramaphosa said municipalities must reposition themselves as “incubators of economic activity” if the country is to turn investment commitments into inclusive growth.

“South Africa has a burgeoning entrepreneurial sector that continues to increase its contribution to economic activity and job creation. Yet the entrepreneurship ecosystem as a whole still faces challenges with funding, skills training, bureaucratic barriers and integration into larger value chains. It also faces challenges within local government that constrain economic opportunity and potential,” Ramaphosa said.

He said the R890 billion secured at the sixth South Africa Investment Conference would deliver little unless municipalities were able to support business activity on the ground.

“When investors build their business in