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Minister of Small Business Development Stella Ndabeni delivered a firm call for stronger Local Economic Development on 27 November 2025. She said municipalities must put MSMEs at the heart of economic planning and service delivery.
What Happened
Ndabeni told delegates that small businesses remain the backbone of local economies. She said MSMEs drive innovation, stimulate local value chains and create jobs. Because of this, municipalities must integrate MSME empowerment into every development strategy.
The Minister also explained that the national repeal of the 1991 Businesses Act and the introduction of a new licensing bill will simplify processes for entrepreneurs. She said the reforms will remove red tape and give municipalities a clearer role in supporting business growth.
She emphasized the importance of local procurement. Municipalities can direct up to 70% of their procurement spending to local enterprises, far above the national minimum of 30%. She said this approach keeps money circulating in communities and strengthens township and rural markets.
Ndabeni added that municipalities must improve alignment between planning, infrastructure and finance units. Better coordination will allow LED programmes to target growth more effectively and support long-term economic development.
She also referenced upcoming national initiatives, including the Township and Rural Economic Development policy, a national entrepreneurship strategy and an LED Summit in partnership with SALGA.
Broader Impact
The Minister acknowledged persistent challenges such as legislative gaps, limited revenue tools and slow digitisation. However, she said these issues can be addressed through stronger policy implementation and collaborative planning.
Ndabeni urged municipalities to use every tool available to attract investment, empower small businesses and build resilient communities. She said this work supports the broader national effort to professionalise and strengthen local government.
