When South Africans vote this week, the future of many municipal councils is likely to be decided through coalition negotiations. For businesses, those discussions will have consequences well beyond who occupies the mayoral office.
The latest polling suggests coalitions could govern most metropolitan municipalities. It also finds that 65% of South Africans favour parties working together in local government. Voters appear willing to accept compromise, provided it produces functioning councils.
Johannesburg illustrates the consequences of political instability. MISTRA’s 2026 Coalitions Barometer records six administrations in the city between the 2021 elections and February this year. Across 80 hung municipalities, it tracked 175 administrations. Repeated changes in leadership make consistent budgeting, planning and investment decisions harder.
The infrastructure figures underline what is at stake. Johannesburg’s own 2026 budget documents put the infrastructure renewal backlog across its water, electricity and roads entities above R185 billion. More than 40% of water is classified as non-revenue water (water lost through leaks), while electricity distribution losses stand at 27%.
These problems have developed over many years, but businesses experience their consequences daily. Interrupted production, unreliable roads, additional spending on generators and water storage, and uncertainty over municipal services all increase the cost of doing business.
With unemployment at 33.6% in the second quarter of 2026, South Africa needs municipalities that enable businesses to invest, expand and create jobs.
The Municipal Structures Act requires the first council meeting within 14 days after a council is declared elected. Although coalition agreements do not legally have to be finalised within this period, the timetable creates considerable pressure on political parties to negotiate workable arrangements.
Those negotiations must be principled and grounded in the pressing need for improvements in service delivery. Parties should communicate their priorities clearly and establish a clear programme of action for improvements in the provision of water, electricity, roads, waste management and sound municipal finances.
Clear communication also requires discipline. Agreed spokespersons, accurate progress updates and publicly accessible coalition agreements can build confidence among residents and investors. Commitments should include measurable targets and clear responsibility for delivery.
South Africa’s businesses need stability and reliable infrastructure to grow. They also need confidence that municipal decisions will survive the next political disagreement. Their challenge is to make sure they make their voice heard so that the newly constituted local governments are in no doubt at what needs to be done to create the conditions for economic growth and development.
The coming negotiations offer political parties an opportunity to demonstrate that cooperation can deliver effective government. Their success should ultimately be measured by properly functioning municipalities, renewed investment and the jobs that follow.
– Victoria Tompkins
Account Manager