President Cyril Ramaphosa urged parties to put communities first in coalition talks, warning that essential services must not be held hostage by political disagreements.
'People have spoken': Ramaphosa reacts to outcome of local govt polls
"The people have spoken. Their verdict must be respected. Their concerns must be heard and their expectations must now be met," he said on Sunday.
The parties face a tight timetable, with newly elected councils required by law to hold their first meetings within 14 days of the formal declaration of results, when councillors elect mayors and other office-bearers.
All but one of South Africa's eight major cities face coalition negotiations, with the DA securing the only outright majority in Cape Town.
The African National Congress, which has dominated South African politics since the end of apartheid, took 30.76 percent of votes in municipal elections, its worst-ever electoral performance, the electoral commission said Sunday.
With no party winning outright in many municipalities, the results set the stage for fraught multiparty coalition negotiations to govern several major cities.
The liberal Democratic Alliance (DA), the ANC's closest challenger and main partner in the national unity government, took around a quarter of the vote, the final count showed.
Voter turnout stood at 52 percent, up six percentage points from the Covid-hit 2021 municipal elections, said Electoral Commission of South Africa chairperson Mosotho Moepya.
One municipality will rerun its vote after party supporters stormed a polling station and destroyed ballot papers, he said.
The result marks a dramatic reversal for the party of late liberation icon Nelson Mandela, which captured nearly two-thirds of the vote in South Africa's first democratic elections in 1994.
While still the largest party, its support has since dwindled as unemployment topped 34 percent, among the world's highest, while crime and corruption scandals dogged the party.
Water shortages, electricity outages and poor service delivery were among the issues that dominated Wednesday's ballot, as voters weighed the performance of the parties running their towns and cities.