Nothini Pholoholo, pictured, of Boitekong in Rustenburg, lost her baby a few hours after giving birth last week. She has accused nurses at Boitekong Medical Centre of negligence.
Pholoholo's problems were compounded by the fact that her family had no money to bury the baby.
The mortuary where the baby had been kept wanted R1,000 before it would release the body.
Businessman Rita Hlungwani donated R1,000 to the family yesterday for the mortuary expenses.
Rustenburg mayor Mpho Khunou said they would take full responsibility for the burial.
Their response followed a Sowetan story highlighting Pholoholo's plight.
Hlungwani, the brother of late gospel singer Jay Hlungwani, said yesterday she felt sad after reading the story in Sowetan.
"I am doing this in honour of my late brother Jay Hlungwani, who was a giver and who taught us to do so in his absence. God the holy spirit had a hand in my behaving the way I did," he said.
Khunou said: "We will pay all the funeral costs and we will also assist the mother where-ever we can."
Pholoholo could not hold back her tears as she thanked Hlungwani and Khunou.
"Finally my baby will have a decent burial," she said.