The Government, together with key small business ecosystem stakeholders, has reaffirmed its commitment to accelerate inclusive, sustainable and enterprise-led local economic growth following the conclusion of the National Local Economic Development (LED) Summit 2026.
This commitment is expressed in the LED Summit Pledge and Declaration, which was formally adopted at the Summit, outlining a clear and coordinated program of action to translate policy intent into measurable economic outcomes at the local level.
This declaration responds decisively to the persistent challenges facing communities and municipalities, including high levels of unemployment, inequality, spatial disparities, infrastructure constraints and limited institutional capacity.
Business Development Minister Stella Ndabeni stressed that the announcement signals a shift from fragmented interventions to a more integrated, results-driven approach to local economic development.
“This announcement represents a collective commitment to act boldly and collaboratively to unlock local economic potential. By simplifying regulatory processes, strengthening municipal capacity, supporting micro, small and medium enterprises (MSMEs), and improving coordination between government and key partners, we are laying the foundation for vibrant local economies that create jobs and opportunities for all,” Ndabeni said on Friday.
Key commitments outlined in the declaration include:
- Overhaul the trade licensing system to reduce red tape and improve ease of doing business through setting up of one-stop service centers in all districts and metropolitan areas, digitization, regulatory reforms and early finalization of the Trade Licensing Bill.
- Repositioning local economic development as a strategic, innovative and entrepreneurial system that actively supports enterprise creation, investment attraction and sustainable job opportunities.
- Strengthening coordination and data-driven decision making through the development of a comprehensive digital information and data-sharing platform to capture real-time economic development activities in municipalities.
- Introduction of innovative financing mechanisms for LED and infrastructure related projects, supported by dedicated technical assistance and project preparation to improve project bankability.
- Expanding access to finance for micro, small and medium enterprises by developing appropriate and scalable financing models across all sectors of government.
- Enhance accountability and impact through a coordinated monitoring and evaluation framework, including clear indicators, regular reporting and measurable results.
The summit was organized by the Department of Small Business Development in partnership with the South African Local Government Association (SALGA) and the Department of Cooperative Governance and Traditional Affairs (COGTA).
The manifesto recognizes that local economic development is a key lever for inclusive growth and positions municipalities as active drivers of economic transformation.
It recognizes the important role of traditional leadership as a strategic partner and enabler in advancing local economic opportunities, social cohesion and community-based enterprise development.
The Department of Small Business Development said it would work closely with national, provincial and local government, the private sector, development finance institutions, organized labour, traditional leadership structures and civil society to give effect to the commitments contained in the declaration.
Implementation will focus on practical reforms, measurable delivery and transparent reporting to ensure that local economic development contributes meaningfully to inclusive growth, poverty reduction and economic resilience across South Africa. –sanews.gov.za