The impact of local economic development projects funded by the Department of Health and Social Development on poverty alleviation in Bakenberg area of Mogalakwena Municipality, Limpopo Province

Abstract

The study investigates the impact of LED projects funded by the DHSD on poverty alleviation in the Bakenberg area of the Mogalakwena Municipality. The DHSD established more than ten different types of projects in the area to alleviate poverty in the local area. The Bakenberg area is part of the Mogalakwena Municipality and is characterized by high poverty rate and unemployment. It is also regarded as one of the rural areas of the Municipality. The study used a case study methodology and a mixture of quantitative and qualitative research designs. The stratified random sampling method with a sample size of sixty (60) was used to collect data from various projects in the six categories. Data were collected by using the unstructured face-to-face interview method. The data were then analysed using the Moonstats Windows 14.0 to describe frequency tables, plotted pie and bar graphs for the quantitative study and the thematic method of analysis for the qualitative study. The key findings of the study were based on core issues, such as the profiles of the respondents that indicated that the majority of the research participants were females. Most of the LED projects had a problem of marketing their products, and this needed urgent attention. LED projects make an impact on job creation, sustainable livelihoods and social capital among project members and their communities. The study recommends that committed individuals who take part in poverty alleviation should be considered for funding rather than to provide state grants only to groups of people. Resources such as transport should be provided to projects in local areas to access any type of market. LED projects should install palisade and electric security fences around projects to prevent theft within the projects. The study also recommends that a stipend of R500 should be paid to each youth who joins the LED projects to encourage the youth to participate in LED projects.