raymondparson

MEDIA STATEMENT · 6 NOVEMBER 2026

Prof Raymond Parsons
Economist, NWU Business School, North-West University

Commenting on the outcome so far of South Africa’s 2026 local election NWU Business School economist Prof Raymond Parsons says:

’The successful conclusion of South Africa’s 2026 municipal elections so far already sends a positive message that holding ‘free and fair’ elections can be good for the economy. For local and international investors, a predictable political process at various levels of government is a major pillar of business confidence. Municipalities have become engine rooms of the economy that drive outcomes at the local coalface. The latest election results also strongly affirm a definitive further shift and realignment towards multiparty coalitions at municipal level. But the ‘horse trading’ that now takes place over the next 14 days must nonetheless ensure political stability, if local economic development is to be maximised. Less partisanship and more progress will be needed.

For South Africa to now break out of its current narrow 1%-2% GDP growth corridor therefore greatly also depends on functional local governments and their ability to maintain a positive environment for business activity. Business cannot operate without dependable water, electricity, roads, and logistics. All parties have previously committed to urgently fixing municipal governance and service delivery as their overriding priority, and must now be held accountable. As the incoming political leadership now seeks to form new administrations, effective and stable governance at local level is tangibly needed to help improve the investment climate for job-rich growth.

It is also clear that the sheer scale of service delivery and infrastructural challenges now facing villages, town and cities in South Africa require a collective effort. Collaboration in local government is vital to ensure positive and sustainable outcomes. In the evolving political landscape business must therefore remain willing to act as a constructive partner, such as through effective public-private sector partnerships, to expedite delivery and job creation at local level. Through strengthened engagements with the new political leadership, the new municipal governments and business must mimic the advantages that have already become apparent from the existing cooperation between the Government of National Unity (GNU) and the private sector.’