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Mavuso highlights municipality failures making business difficult and hindering economic growth

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BLSA’s Mavuso has stressed that the failures of municipalities through services is costing businesses on many fronts, which is only further contributing to the economic decline and hindering growth.

Business Leadership South Africa’s (BLSA) CEO, Busi Mavuso pointed out how municipalities are the country’s weakest link in the economic growth plans. This was noted in her weekly newsletter published on Tuesday, 2 November 2021.

Mavuso believes that this is the case by referring to the auditor-general’s annual report on the financial state of municipalities, noting this as a depressing reading. She also believes that service delivery failures hit businesses hard and make it expensive and difficult to conduct business. She further highlighted issues such as water and electricity interruptions being a burden on businesses.

According to Mavuso, high-profile businesses have had to close or move production because of unreliable local services from municipalities. She noted that another issue businesses face is the cost of substituting for failed municipal services, stressing that if there were to be efficient and effective municipal services, it would help to grow the economy.

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