The Sourcefin Brief week ending 9 November 2026
More than half of South Africa's councils are hung. What the coalition talks mean for municipal payments, budgets and tenders, and how to protect cash flow.
On this page
Hung councils may slow municipal payments and budgets, so chase invoices, plan cash flow and get tender-ready now. This week’s Brief covers funding conditions, open tenders on the radar, new Knowledge Hub articles, a tip of the week and a worked example of Sourcefin funding.
This week’s theme
DA, ANC or ActionSA – what the coalition talks mean for your business
Where things stand
The IEC declared the final results on Sunday night. More than half of the country’s 213 municipal councils are hung, which means no party holds a majority of seats. Cape Town is the only metro where one party won an outright majority. In Johannesburg, Tshwane and Ekurhuleni, the DA came first but fell short of a majority. One analyst sees ActionSA as a potential kingmaker in all three. For your business, the big question isn’t who wins. It’s how long it takes to get a working council, and what that does to your cash.
Sources: SAnews via AllAfrica · IOL · EWN · Business Day
What happens next
Each new council must be convened within 14 days of being declared elected. At that first sitting, councillors elect a speaker, and then the council elects a mayor. Whoever wins the council vote governs, so coming first doesn’t guarantee the mayor’s office. The Coalitions Bill, which would make written coalition agreements mandatory, wasn’t finalised before the elections. If a council can’t do its job, the province can step in, for example by issuing directives. As a last resort, it can dissolve the council and appoint an administrator. Voters then go back to the polls within 90 days. Tshwane went through this in 2020, until the courts set the dissolution aside.
Sources: SAnews · SAnews · EWN · Constitution of South Africa, s139 · Constitutional Court [2021] ZACC 34 · Municipal Structures Act, s25(3) · Parliament – CoGTA committee
Why your cash flow comes first
By law, municipalities must pay their creditors within 30 days of getting an invoice. Many don’t. The Auditor-General found that more than half of municipalities paid late in 2024-25, taking 113 days on average. In Gauteng it was 165 days. Newer Treasury figures show the debt is growing. At the end of June 2026, municipalities owed their creditors R185.2 billion, up from R156.1 billion a year earlier. Most of it was more than 90 days overdue, and R43.1 billion of it was owed to trade creditors such as suppliers. If you sell to a municipality, that gap is money you carry yourself. Coalition politics can make this worse. Research on coalition councils found delays in council decisions and approvals, and budgets that get disrupted. So plan for slow money, not fast promises.
Sources: Auditor-General – MFMA 2024-25 general report · Dullah Omar Institute, Local Government Bulletin · National Treasury – Section 71, Q4 2025/26
Where the money is likely to go
Look past the politics and the spending priorities are clear. National Treasury is offering the eight metros up to R54 billion over six years to fix electricity, water and waste services. To get it, metros must hit performance targets they set for themselves. The DA has promised that every rand collected for water and electricity stays with those services. The ANC has promised to pay every compliant supplier within 30 days, and to buy more from local businesses. Whoever ends up governing, maintenance and repair work on these services is where to look.
Sources: National Treasury · National Treasury – DG Duncan Pieterse · Daily Maverick · ANC 2026 Local Government Manifesto
What to do next: Six moves for the months ahead. One, chase every municipal invoice that’s due before the new councils sit. Two, diarise 28 February and the end of March. Adjustments budgets are tabled by 28 February, and draft 2027/28 budgets by the end of March. Three, map where you fit in electricity, water, waste and maintenance work. Four, get tender-ready. Find the main contractors who’ll need subcontractors, and vet your own subcontractors, because funders will. Five, line up funding before you win the contract, not after. Six, plan your cash flow for slow payment, not promises.
Which funding does your business need? Take the 90-second test
Two questions place your business in one of four funding types. Jedd explains how to find the right fit first time, before weeks go into the wrong application.
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Funding conditions
What the market looks like this week
Yahoo Finance · 9 Nov 2026, 11:57 CAT
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Tender radar
Open tenders relevant to your business
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Supplies: General
Service Provider for Printing Paper Supply and Delivery
City of Tshwane · Gauteng · Closes 12 November 2026
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Administrative and support activities
Uniform Supply and Delivery for NLC Facilities Staff
National Lotteries Commission · Gauteng · Closes 12 November 2026
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Other service activities
Procurement of VMware Licenses for 24 Months
The Department of Planning, Monitoring and Evaluation · Gauteng · Closes 12 November 2026
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Supplies: Clothing/Textiles/Footwear
Ceremonial Dress Uniforms Supply for Emergency Services
City of Tshwane · Gauteng · Closes 12 November 2026
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Services: General
NMC/RMC Atmos Maintenance and Support
ESKOM · Gauteng · Closes 12 November 2026
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Supplies: General
Supply and Delivery of Lab Cuvettes and Sample Cups
Johannesburg Water · Gauteng · Closes 12 November 2026
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Supplies: Stationery/Printing
Supply and Delivery of Stationery for 36 Months
Northlink TVET College · Western Cape · Closes 12 November 2026
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Supplies: Clothing/Textiles/Footwear
Supply and Delivery of Security Uniforms for Eskom Facilities
ESKOM · National · Closes 13 November 2026
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New on Sourcefin’s Knowledge Hub
Top picks from this week’s articles
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2026-11-06
MEGA funding: a practical guide for Mpumalanga SMMEs
MEGA offers business loans to Mpumalanga SMMEs and co-operatives. See the sectors it funds, its lending criteria and how to apply.
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2026-11-05
Construction purchase order financing: a practical SA guide
How Purchase Order Financing (POF) pays for materials and plant on a confirmed construction contract, and how the FNB referral route works for SMEs.
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2026-11-04
Wesgro funding: an honest guide for Western Cape SMMEs
Wesgro funding is a referral, not a loan. See how Western Cape SMMEs use free funder matching, SME Rise and national funders to find finance.
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Tip of the week
Before the new council sits, send each municipal client a statement of every unpaid invoice, with order numbers and due dates, and ask for a payment date in writing.
When officials and portfolios change, a clear paper trail stops your invoice getting lost between the old team and the new one.
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This week’s case
Sourcefin funding · Deal size: R850k
Maintenance contractor keeps paying staff while a metro pays late
A maintenance contractor finished a job for a metro and invoiced on time. Then the payment date came and went, and the council was tied up in leadership changes. Wages and the next job’s materials couldn’t wait. With invoice discounting, the business was paid upfront against the approved invoice. It kept its team working and took on the next order while the municipality settled.
This is a fictional illustration of how Sourcefin’s products are typically used. Names and figures are not real.
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Sourcefin exists to help South African entrepreneurs deliver on real opportunities. When you win confirmed work, funding should never be the reason you can’t deliver. We look at the strength of your order, so you can focus on building your business.
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Sourcefin is a South African alternative finance provider that offers purchase order funding and invoice discounting to SMMEs, enabling businesses to fulfil confirmed purchase orders or tenders and unlock cash flow without collateral. Unlike traditional lenders or banks, Sourcefin also provides end-to-end support including supplier sourcing, logistics, project management, and risk oversight.
