Business warns political instability could undermine investment in major metros
Johannesburg is of particular concern, having already experienced a decade of political instability, frequent mayoral changes, underspent budgets and deteriorating infrastructure.
Rafiq Wagiet
Busisiwe Mavuso, CEO of Business Leadership SA. Image:702
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Stephen Grootes speaks to Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), about the business community's response to last week's municipal elections and what political parties should prioritise as coalition negotiations get underway.
Listen to the interview in the audio player below.
South Africa’s business community is urging political parties to put stable leadership and service delivery at the centre of coalition negotiations following last week’s municipal elections.
With hung councils in key economic centres including Johannesburg, Tshwane, Ekurhuleni and eThekwini, the shape of the next municipal administrations will have significant implications for investor confidence and business operations.
Business Leadership South Africa (BLSA) CEO Busisiwe Mavuso says businesses need capable municipal leadership and coalitions built to last, rather than fragile political arrangements that leave administrations unable to function.
Johannesburg is a particular concern, with Mavuso highlighting a decade of political instability, frequent mayoral changes, underspent budgets and deteriorating infrastructure.
The economic consequences extend beyond municipal boundaries: unreliable electricity, water, sanitation and roads raise operating costs, undermine investment decisions and can threaten jobs.
Mavuso says the business sector cannot continue to bear the brunt of immature political leadership, which ends up being detrimental to the millions of ordinary people.
"...it would serve the country well, if the politicians were for once to place less emphasis on the political composition of a coalition and rather focus on the quality of governance that the coalition needs to deliver."
- Busisiwe Mavuso, CEO - BLSA
"...when municipalities fail because of these stupid games they continue to play, businesses are forced to spend money providing those services for themselves and those that cannot afford to do so incur additional costs."
- Busisiwe Mavuso, CEO - BLSA
"Municipal instability is not simply a political problem. As they play these games, it becomes an economic problem with consequences and for investment, with consequences for jobs, with consequences for cost of living, and obviously we cannot continue to compensate for the failure of municipalities as business. And I hope, you know, they have that as top of mind as they get into these engagements."
- Busisiwe Mavuso, CEO - BLSA
Scroll to the top of the article to listen to the full interview.