The results point to a further shift towards multiparty coalitions, placing the focus on the stability and effectiveness of incoming municipal administrations.
NWU Business School economist Raymond Parsons says political co-operation, improved municipal governance and reliable service delivery will be essential to strengthening investor confidence, unlocking local economic growth and creating jobs.
"The ‘horse trading’ that now takes place over the next 14 days must ensure political stability, if local economic development is to be maximised. Less partisanship and more progress will be needed," says Parsons.
"For South Africa to break out of its current narrow 1%-2% GDP growth corridor, much will depend on functional local governments and their ability to maintain a positive environment for business activity.
"All parties have previously committed to urgently fixing municipal governance and service delivery as their overriding priority, and must now be held accountable. As the incoming political leadership now seeks to form new administrations, effective and stable governance at local level is tangibly needed to help improve the investment climate for job-rich growth."
Beyond political stability and improved municipal performance, Parsons highlights the importance of collaboration between government and business in addressing the country's infrastructure and service-delivery challenges.
"It is also clear that the sheer scale of service delivery and infrastructural challenges now facing villages, town and cities in South Africa require a collective effort. Collaboration in local government is vital to ensure positive and sustainable outcomes.
"In the evolving political landscape business must therefore remain willing to act as a constructive partner, such as through effective public-private sector partnerships, to expedite delivery and job creation at local level.
"Through strengthened engagements with the new political leadership, the new municipal governments and business must mimic the advantages that have already become apparent from the existing co-operation between the Government of National Unity (GNU) and the private sector."
The Council for Scientific and Industrial Research (CSIR) projects the ANC will secure about 31% of the national vote in the final tally, with the DA taking 24.5%.
