Business Groups Demand Municipal Accountability
Business bodies say failing municipal services are raising operating costs and threatening competitiveness ahead of the new council term.
Updated on Nov. 10, 2026 in City Hall
Live Poll
Is the water and electricity service in your area getting better or worse?
Business Unity South Africa, Business Leadership South Africa and Business for South Africa called for accountability from municipalities after unreliable water, electricity and road services raised business operating costs. The Electoral Commission of South Africa has since declared the 2026 local government elections free and fair.
Why it matters
Deteriorating municipal infrastructure adds costs and risks production, jobs and investment for businesses. Incoming administrations will need to show they can address the problems affecting businesses and communities.
The Electoral Commission recorded 52% national voter turnout, and 127 of the 213 municipal councils ended up hung, meaning parties must now negotiate coalitions. It remains unclear how those negotiations will affect the funding and maintenance of municipal infrastructure.
The players
Business Unity South Africa (BUSA)
BUSA is an umbrella body representing business interests across South Africa's economy, often engaging government on policy and governance matters.
Business Leadership South Africa (BLSA)
BLSA is an association of leading South African CEOs that advocates on economic policy and public-sector performance.
Electoral Commission of South Africa
The Electoral Commission is the independent constitutional body responsible for managing and certifying national and local elections in South Africa.
The details
Agribusinesses report spending millions of rand each year on functions municipalities should fulfil, and some producers have contributed to or taken over local water supply management to keep operations running. In June, the three business bodies issued a joint statement calling for Johannesburg's infrastructure to be funded and maintained.
Timeline
February 2026: Agbiz chairperson Sean Walsh said failing municipalities add costs for businesses.
June 2026: BUSA, BLSA and B4SA issued their joint statement on municipal governance.
8 November 2026: The Electoral Commission declared the local government elections free and fair.
Political Context
Business groups frame their demands within the constitutional duty of municipalities to deliver water, electricity and roads. Their criticism shows how service delivery shortfalls are now shaping the expectations placed on newly elected councils.
Residents and businesses in affected areas may see continued disruption to water, electricity and road services until new councils address infrastructure. Businesses may face higher operating costs in the meantime.
The takeaway
Failing municipal services are a direct cost to businesses and households, so the performance of incoming councils will be measured by how well they restore basic infrastructure.
What happens next
Coalition negotiations in the 127 hung municipal councils will determine which administrations take office and how service priorities are set.
Further reading
Explore more on City Hall for context on how municipal councils and their administrations operate.
Source note: This article includes information reported by Vutivi.
Live Poll
Is the water and electricity service in your area getting better or worse?
