By Lehlohonolo Lehana.
The National Local Economic Development (LED) Summit 2026 has adopted a Declaration, marking a significant step toward coordinated local economic development.
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 will now be translated into a clear, actionable programme guiding implementation across all spheres of government and stakeholders to drive MSME growth, improve the ease of doing business, and unlock inclusive economic opportunities at local level.
It responds to persistent challenges of 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.
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.
The declaration recognises that local economic development is a critical lever for inclusive growth and positions municipalities as active drivers of economic transformation.
Ndabeni said her department 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.