City rankings are of limited use to an individual business, because the things they measure in aggregate affect firms very differently. What matters when you choose where to operate is narrower and entirely checkable: how long permits take, whether staff and customers can reach you, whether utilities are reliable, and what premises actually cost once every charge is counted.
Those four questions are worth answering before signing anything.
How long the municipality takes
Zoning approvals, business licences, health certificates and building plan approvals vary considerably between municipalities, and the delay is a real cost if you are paying rent while waiting.
Ask the municipality directly what the current turnaround is, and speak to a business already operating nearby. A location with cheaper rent and a nine-month approval queue is not cheaper.
Whether people can get to you
Staff need affordable, reliable transport or you will struggle to hire and keep them. Customers need to reach you easily or you are competing against convenience you cannot match.
For retail and service businesses this usually matters more than rent per square metre, because a cheaper site with poor access produces less turnover.
Utilities and connectivity are operating costs
Electricity reliability, water availability and restrictions, and fixed-line connectivity differ by area and directly determine whether you need backup power, water storage or a more expensive connection.
Those are permanent additions to your cost base, so establish them before committing. Water scarcity in particular has become a genuine business continuity question in several regions.
Count the full occupancy cost, then the support
Base rent is the smallest part: operating costs, rates recovery, utilities, marketing levies and escalation all follow. Work out the total monthly figure and what turnover it requires.
Then check what local support exists. Provincial and municipal economic development programmes are less contested than national ones, and free business support is available nationally through the Small Enterprise Development and Finance Agency. Comparative data by region is published by Statistics South Africa.
Frequently asked questions
Are city business rankings useful?
Only broadly. They measure aggregates that affect individual businesses very differently, so check the specific factors that affect you.
What should I check with the municipality?
Current turnaround times for zoning, business licences, health certificates and building plans, since delays cost rent.
What matters more than rent?
Access for staff and customers. A cheaper site with poor transport links usually produces less turnover than it saves.
Why do utilities matter when choosing a location?
Because unreliable electricity or restricted water means backup power or storage, which is a permanent addition to your cost base.
Where is local support available?
Provincial and municipal economic development programmes, which are less contested than national ones, plus free national business support.
Originally published in May 2018. Updated September 2026 into guidance on comparing locations rather than reporting a city ranking.
