The Department of Small Business Development (DSBD) has reaffirmed its commitment to supporting small businesses and transforming local economies.
This follows the adoption of a new declaration at the National Local Economic Development (LED) Summit 2026.
The DSBD, alongside the South African Local Government Association (Salga) and the Department of Cooperative Governance and Traditional Affairs (CoGTA), endorsed the LED Summit Pledge and Declaration on 17 April.
The declaration sets out a coordinated plan to turn policy into real economic results at the municipal level.
It aims to tackle persistent challenges. These include high unemployment, inequality, spatial divides, infrastructure backlogs and weak institutional capacity.
What the declaration means for small businesses
For small business owners, the declaration signals potential relief from red tape and barriers to entry.
One of the key commitments is to overhaul the business licensing system. The government plans to introduce one-stop service centres in all districts and metros.
These centres will be supported by digital systems, regulatory reforms and the fast-tracking of the Business Licensing Bill.
The declaration also aims to expand access to finance for micro, small and medium enterprises (MSMEs).
It proposes scalable financing models across all spheres of government. It also includes new funding mechanisms for infrastructure and local economic development projects.
Authorities say this could improve project readiness and unlock investment opportunities.
Focus on coordination and data
The government also plans to improve coordination between municipalities.
A new digital information and data-sharing platform will track economic activity in real time.
This is expected to support better decision-making and ensure resources are directed where they are needed most.
The declaration further calls for stronger monitoring and evaluation. It includes clear indicators, regular reporting and measurable outcomes.
Integrated approach
Small Business Development Minister Stella Ndabeni said the declaration marks a shift in how local economic development will be implemented.
“This Declaration represents a collective commitment to act boldly and collaboratively to unlock local economic potential,” said Ndabeni.
“By simplifying regulatory processes, strengthening municipal capability, supporting MSMEs, and improving coordination across government and key partners, we are laying the foundation for vibrant local economies that create jobs and opportunity for all.”
The declaration also recognises municipalities as key drivers of economic transformation. It highlights the role of traditional leadership in promoting local opportunities and social cohesion.
Implementation to focus on delivery
The DSBD said it will work with the government, the private sector, development finance institutions, organised labour and civil society to implement the plan.
The focus will be on practical reforms and measurable delivery.
Officials say transparent reporting will be key to ensuring accountability.
The ultimate goal is to drive inclusive growth, reduce poverty and build more resilient local economies across South Africa.
