The government, together with key small business ecosystem stakeholders, has reaffirmed its commitment to accelerating inclusive, sustainable, and enterprise-led local economic development following the conclusion of the National Local Economic Development (LED) Summit 2026.
This commitment has been expressed in the LED Summit Pledge and Declaration, which was formally adopted at the summit, outlining a clear and coordinated programme of action to translate policy intent into measurable economic outcomes at the local level.
The declaration responds decisively to persistent challenges facing communities and municipalities, including high levels of unemployment, inequality, spatial disparities, infrastructure constraints, and limited institutional capacity.
Minister of Business Development Stella Ndabeni emphasised that the declaration signals a shift from fragmented interventions to a more integrated, results-driven approach to local economic development.
“This declaration represents a collective commitment to act boldly and collaboratively to unlock local economic potential. By simplifying regulatory processes, strengthening municipal capability, supporting micro, small, and medium enterprises (MSMEs), and improving coordination across 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:
- Overhauling the business licensing system to reduce red tape and improve the ease of doing business through the establishment of one-stop service centres across all districts and metropolitan areas, supported by digitalisation, regulatory reform, and the expedited finalisation of the Business 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 across municipalities.
- Introducing 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 spheres of government.
- Enhancing accountability and impact through a coordinated monitoring and evaluation framework, including clear indicators, regular reporting, and measurable outcomes.
The summit was convened 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 declaration recognises that local economic development is a critical lever for inclusive growth and positions municipalities as active drivers of economic transformation.
It further acknowledges 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 will work closely with national, provincial and local government, the private sector, development finance institutions, organised 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
