{
  "id": 13026391,
  "title": "Stable government is key to restoring Johannesburg's business confidence",
  "url": "https://urgent.news/2026/10/09/stable-government-is-key-to-restoring-johannesburgs-business",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-09T04:00:00.000Z",
  "source": {
    "name": "IOL",
    "slug": "iol",
    "url": "https://iol.co.za/the-star/city-watch/2026-10-09-stable-government-is-key-to-restoring-johannesburgs-business-confidence/"
  },
  "original_language": "en",
  "account": "On November 4, Johannesburg voters will finally decide on their future government. For businesses, the critical question is whether this city can become a place where it once again makes sense to do business. The answer hinges on good governance, encompassing policy certainty, reliable service delivery, functional infrastructure, and a commitment to fighting corruption. Unfortunately, the city's track record suggests little optimism. Since late 2019, Johannesburg has experienced seven mayoral changes, driven by shifting coalition deals and self-interest. Recurring water and electricity outages, coupled with deteriorating infrastructure, have become central issues in the election. Investors require stability for long-term investments, which is only possible through good and stable governance.\n\nAccording to the 2026 Enabling Development Environment Index (EDEI), Johannesburg scored 38.1 in 2026, a slight improvement from 34.9 in 2023, but still considered a weak enabling environment. Cape Town, in contrast, showed significant improvement, scoring 59.5 in 2026, up from 42.1 in 2023. The gap between the two cities has roughly tripled, from about 7 points to more than 21 points. A survey of 440 Johannesburg respondents revealed several concerning factors. Firstly, the weakness is systemic, with all 12 factors scoring between 36.2 and 39.8, indicating an overall unsupportive governance system. Secondly, the four weakest factors closely relate to business operations: services and infrastructure (36.2), entrepreneurial opportunities (36.8), partnership formation (36.9), and local economic development initiatives (37.3). These factors define how businesses experience a city. Thirdly, leadership and safety are weak, with effective leadership scoring only 37.7, compared to 59.8 in Cape Town, a 22-point gap. Safety and security ranked seventh at 37.8. Despite these shortcomings, Johannesburg will likely maintain its coalition government. The question for businesses is not only who wins but whether the governing party can deliver stable, accountable, and responsible governance. To address these concerns, businesses will judge the next administration on five priorities: a stable coalition built on rules, fixing the basics such as infrastructure budgets and service reliability, restoring financial credibility, partnering with businesses and entrepreneurs, and improving safety in the inner city. Cape Town's improvement indicates that local governance matters for business confidence. With the same economic potential as Johannesburg, the city has lacked a stable government focused on the basics. On November 4, Johannesburg's business community and every voter should ask every party: Will you provide Johannesburg with five years of stable, competent, financially sound government? Investors are not seeking a perfect Johannesburg but rather a well-governed one.",
  "summary": "A new business-environment index ranks Johannesburg well below Cape Town, highlighting the cost of political instability, weak services and unreliable infrastructure ahead of the November 4 local elections.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}