President Cyril Ramaphosa told delegates at the 2026 National Local Economic Development Summit in Ekurhuleni on 15 April 2026 that cutting red tape is essential to unlock township economies and enable informal traders and small entrepreneurs to succeed. The summit, convened by the Department of Small Business Development at the Birchwood Conference Centre, ran from 15 to 16 April and focused on practical solutions for inclusive local economic growth.
According to a Presidency statement, Ramaphosa said municipalities must use procurement and disciplined supplier payments to support local small businesses. He framed township economies as a growth engine rather than a welfare issue, linking them to procurement reform, local infrastructure development, and targeted support for micro, small and medium enterprises (MSMEs).
“Cutting red tape is crucial both to attract large scale investments and also to enable informal traders and small township entrepreneurs to succeed,” Ramaphosa said, according to SA News.
The summit’s theme, set by the Department of Small Business Development, was “Re-engineering Local Economies: A Collaborative Blueprint for Small Enterprise Growth and Ease of Doing Business.” Government said the gathering aimed to strengthen local economic development, improve intergovernmental coordination through the District Development Model, and unlock opportunities for MSMEs, particularly in townships and informal sectors.
Ramaphosa also announced that government is formalising the District Development Model’s One Plan as a binding economic transformation compact. The District Development Model, introduced in 2019, is designed to coordinate planning and delivery across national, provincial and local government within each district or metro.
For communities across the Cape Flats, where informal trading and small business activity are central to household incomes in areas such as Khayelitsha, Mitchells Plain, Philippi and Gugulethu, the policy direction signals potential changes in how municipalities handle permits, procurement and support for street traders and home-based businesses. The Western Cape has historically had lower levels of red tape compared to other provinces, but traders in Cape Town have long complained about inconsistent by-law enforcement and limited access to municipal contracts.
Ramaphosa has previously pledged expanded support for township and rural enterprises through incubators, digital hubs, industrial parks, business centres, special economic zones and the Township Entrepreneurship Fund, which he first announced at the South Africa Investment Conference in Soweto in November 2019. A draft Township and Rural Economy Development and Revitalisation Policy completed its public comment period in July 2026, according to CNBC Africa, indicating that the township economy is being formalised within national economic strategy.
An SABC News report quoted Ramaphosa as saying townships must transition from being residential “dormitory” settlements. This specific phrasing could not be independently verified from Presidency or government sources, and the full transcript of the keynote address has not been checked against the SABC report. Cape Flats News is seeking the original speech text from the Presidency.
What remains unclear is how the binding nature of the One Plan compact will be enforced at municipal level, and whether specific funding allocations for township enterprise support will follow. This article will be updated once the Presidency responds to the request for the full transcript, expected by 20 April 2026.