AS part of efforts to strengthen partnerships that encourage economic growth, job creation and service delivery through the District Development Model, the Minister of Cooperative Governance and Traditional Affairs (CoGTA), Velenkosini Hlabisa (pictured), met with the Nelson Mandela Bay Business Chamber.
According to CoGTA, the engagement brought together representatives from the Business Chamber, Business Leadership South Africa (BLSA), the Association of South African Chambers (ASAC), civil society, Treasury, CoGTA, and other stakeholders.
The minister commended the Chamber’s leadership for engaging. Highlighting the central role of municipalities, Minister Hlabisa emphasised that functional municipalities create the enabling environment for investment and growth. “When water flows, refuse is collected, and sewage does not run down the streets, investors are eager to invest. But when the opposite becomes the daily reality, no investor wants to take that risk. Service delivery is not about pointing fingers; it is about creating an environment where businesses and communities can thrive,” he said.
Hlabisa raised concerns about instability in municipal leadership, poor service delivery, and infrastructure decay in Nelson Mandela Bay, noting that the Metro has had several City Managers since 2016, mostly in an acting capacity. “Instability creates uncertainty. Every time you meet a new official, you wonder if they will still be in office next time. That environment is not conducive to investment,” he cautioned.
He said that metros are home to nearly 62% of South Africa’s population, and their decline has a direct impact on national growth and development. He suggested mobilising expert teams, drawn from both government and the private sector, to craft turnaround strategies for cities monitored through clear timelines and accountability mechanisms. “I know that business leaders are willing to put resources into solutions if they can see accountability, transparency, and measurable progress. Treasury is here, and together we can ensure proper resource allocation where it is needed most,” he said.
The minister also pointed to ongoing national interventions, including an inter-ministerial focus on the 10 worst-performing municipalities and 38 others flagged for urgent attention. However, he emphasised that Metros require special focus given their central role in driving growth.
Hlabisa called for unity of purpose between business, government, and civil society. He proposed a national two-to-three-day engagement of all metros and business chambers to define problems, find solutions, and mobilise expert teams to drive turnaround strategies. “Our cities are collapsing. We must not work in silos. If we go alone, we may go faster, but if we go together, we go further,” he said.
The minister thanked the Nelson Mandela Bay Business Chamber for its proposals and pledged support from CoGTA. He committed to rebuilding broken relationships between metros and business, strengthening accountability, and ensuring that Metros function as true engines of the economy.
According to CoGTA, the meeting was welcomed by the Nelson Mandela Bay Business Chamber and stakeholders as a step towards stronger accountability, collaboration, and restoring confidence in local governance.
