What's Happening?
Businesses in Cape Town, South Africa, are expressing greater confidence in the city's services, according to the 2025/26 Business Satisfaction Survey (BSS). The survey, part of the City's Ease of Doing Business Index, aims to gather both quantitative
and qualitative data on business interactions with the City of Cape Town. The index tracks nine business-facing indicators, including land use rights, building plan approvals, and energy connections, assessing procedural steps, timelines, and costs. Digitization is also a key cross-cutting indicator. The 2025/26 BSS revealed an overall Public Service Quality (PSQ) score of 92 for the City, an increase from 86 in 2023/24. This score places the City's performance in the 'good performance' band. The PSQ score is derived from business responses across four measures: overall City performance, trust in the City, its role as a municipal service provider, and its performance compared to other public institutions. Customer service and the City's E-services platform received strong positive ratings, particularly for ease of logging in, signing up, and navigation. Improvements were noted in the complexity, affordability, additional costs, and turnaround times for obtaining business licenses, informal trading permits, electricity and water connections, and wayleaves.
Why It's Important?
The increased confidence among Cape Town businesses in the city's service delivery signifies a positive shift in the local business environment. This improvement, as highlighted by Alderman James Vos, Mayoral Committee Member for Economic Growth, indicates that reforms driven by the Ease of Doing Business program are having a tangible impact. A more efficient and responsive municipal service directly translates to reduced operational hurdles and costs for businesses, as 'time is money' in the business world. This enhanced business satisfaction can attract new investments, foster local economic growth, and encourage existing businesses to expand. When businesses perceive the city as supportive and efficient, it creates a more favorable climate for job creation and overall economic prosperity. The positive ratings for customer service and digital platforms also suggest that the city's investment in modernizing its administrative processes is yielding benefits, making it easier for businesses to interact with municipal services. This can serve as a model for other urban centers looking to improve their business ecosystems.
What's Next?
Despite the overall positive results, the survey also identified areas requiring further improvement. Land use rights, building plan approvals, and public land transfers remain the most challenging processes for businesses, primarily due to their complexity, the number of required approvals, and longer turnaround times. Processing time continues to be the single biggest concern, contributing to increased costs and uncertainty. Alderman Vos has stated that the City will continue to focus on simplifying high-impact development processes, strengthening inter-departmental coordination, and providing businesses with greater certainty and visibility regarding their application statuses. These efforts aim to maintain Cape Town's position as the easiest place to conduct business in South Africa. Future initiatives will likely involve further digitization of these complex processes and enhanced communication channels to keep businesses informed. The City will need to address these specific pain points to sustain and further improve business confidence and operational efficiency.
Beyond the Headlines
The ongoing efforts by the City of Cape Town to enhance its 'Ease of Doing Business' index reflect a broader global trend among municipalities to create more business-friendly environments. This initiative goes beyond mere administrative efficiency; it touches upon the fundamental relationship between local government and the private sector. By actively seeking feedback through surveys like the BSS and implementing reforms based on that feedback, the City is fostering a culture of accountability and responsiveness. This proactive approach can lead to a more dynamic and resilient local economy, capable of attracting diverse industries and talent. Furthermore, the focus on digitization not only streamlines processes but also promotes transparency and reduces opportunities for bureaucratic inefficiencies. The success of these reforms in Cape Town could provide valuable insights and best practices for other cities grappling with similar challenges in urban governance and economic development, highlighting the importance of continuous improvement and stakeholder engagement in public service delivery.
