NASIPHI MOYA | South Africa’s eight metros: the untapped economic steroids for recovery

As South Africa enters its second 30 years of democracy, a growing sense of disillusionment is evident among citizens.

The early years of democracy were defined by optimism and reconstruction after decades of apartheid. Yet today, the promise of prosperity feels increasingly distant.

Economic growth has slowed to 0.9% in 2025, from 1.4% in 2017 and 4.9% in 2008. Unemployment has soared from 13.4% in 2008 to 33.2% in 2025, while 46% of South Africans aged 15–34 remain jobless. These figures tell a stark story of a nation struggling to sustain its development vision and meet the expectations of a young and restless population.

The post-Covid recovery remains a thorny issue, but I think metropolitan municipalities can assist the country.

While the first three decades of democracy delivered progress in rebuilding institutions and expanding access to basic services, economic momentum has faltered. Infrastructure backlogs, policy uncertainty and low investor confidence have slowed growth.

The challenge now is to identify where and how South Africa can reignite its economic engine and one of the most promising avenues lies in its eight metropolitan municipalities.

The country’s metros ― Johannesburg, Tshwane, Ekurhuleni, eThekwini, Cape Town, Mangaung, Nelson Mandela Bay and Buffalo City ― already serve as South Africa’s economic backbone. Collectively, they contribute over 60% of national GDP and almost half of all employment.

For the 2025/26 period, more than R40bn has been allocated to infrastructure investments within these areas, signalling their strategic importance to national recovery.

As development economist Paul Collier (2018) reminds us, “Cities are where ideas, talent, and capital converge; their performance determines whether nations prosper or stagnate.”

Globally, cities have become the engines of growth and innovation. From Shenzhen in China to Bangalore in India, strategic urban planning and targeted investment have transformed metropolitan regions into dynamic hubs of production, technology and opportunity. South Africa’s metros can follow suit, but only if they are empowered and supported by coherent policies and forward-thinking leadership.

For the metros to assist in the economic recovery, I propose three critical priorities that can guide the agenda for metropolitan revitalisation.

First, the metros need to develop realistic and targeted economic strategies. This will include each metro designing its own evidence-based economic revitalisation plan that builds on its unique strengths and competitive advantages.

The Covid-19 pandemic exposed deep vulnerabilities but also opened pathways for localised innovation and economic renewal. Tshwane’s service-driven economy in finance and government, Cape Town’s tech and creative sectors, Ekurhuleni’s industrial and logistics base and eThekwini’s diverse economy spanning manufacturing and tourism each offer distinct opportunities.

Harnessing these specialisations through targeted investment attraction, innovation partnerships and sectoral clustering can reignite local growth and create jobs.

Second, there is a serious need to strengthen intergovernmental coordination and fiscal empowerment. This simply means that local government cannot drive economic transformation in isolation. The relationship between the national, provincial and metropolitan spheres must be reconfigured to enable cities to lead.

Economic recovery must also promote inclusivity and social cohesion. Cities cannot become islands of prosperity surrounded by poverty.

—  Dr Nasiphi Moya, executive mayor of Tshwane

Currently, fragmented planning, unfunded mandates and bureaucratic fiscal systems limit local innovation, slow implementation and working in silos make it difficult for us to achieve that. Metros need greater fiscal autonomy, flexible funding mechanisms and performance-based grants that reward effective project delivery.

Policy coherence across government levels would ensure that metros are not merely service administrators, but strategic economic actors capable of shaping growth trajectories.

Third, let us invest in sustainable infrastructure and innovation. Infrastructure is the foundation of any thriving economy, yet South Africa faces a staggering backlog: R30bn in maintenance, R197bn in roads, R400bn in water and sanitation, and a R1.7-trillion gap in energy infrastructure. Most of this deficit lies within metropolitan areas.

Innovative financing is needed to bridge these gaps from public–private partnerships and municipal bonds to climate finance for green projects. Investment should not only address immediate needs but also position metros for the future: renewable energy, digital connectivity and smart transport systems must be prioritised.

Infrastructure investment is not just an economic necessity; it is a social and developmental imperative and I recently announced R86bn in investment pledges aimed at key sectors, including tourism, construction, property development and road infrastructure in the City of Tshwane as a way to economic recovery. Imagine all metros pursuing the agenda, we surely can play a pivotal role in the recovery.

Economic recovery must also promote inclusivity and social cohesion. Cities cannot become islands of prosperity surrounded by poverty.

The next generation of urban strategies must ensure that growth benefits all residents, particularly those historically excluded from economic opportunity. Inclusive metros foster participation, equity, and a sense of shared destiny. They bridge divides between formal and informal economies, between the employed and the marginalised, between the urban core and the township periphery.

A truly developmental city is one where economic growth and social justice are inseparable. The time has come to reposition metropolitan municipalities at the centre of the country’s economic recovery agenda.

Dr Nasiphi Moya is the executive mayor of the City of Tshwane Metropolitan Municipality. She writes in her personal capacity

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