The sustainability of Local Economic Development projects : case study of Mutale Local Municipality, Limpopo Province

Abstract

This study focuses on a critical analysis of sustainability of Local Economic Development (LED) projects in Mutale Municipality in Limpopo Province of South Africa. It furthermore investigates the extent to which the projects sustain project members. Based on an extensive review of the literature, the study explains an understanding of the emerging trends and challenges in sustainability of LED projects nationally and internationally. A mix of quantitative and qualitative research methods is used. The data were collected by means of unstructured interviews and questionnaires from purposively sampled project members and local economic development officers who came from randomly selected projects. The study demonstrates that while there are some benefits derived by LED project members, to a large extent, the projects are not sustainable. LED is not prioritized in terms of resource allocation by the Municipality. In addition, inadequacies of members‘ capacity in leadership and management also retard sustainability. It is therefore recommended that the Municipality has to prioritise LED in terms of resource allocation and building capacity of beneficiaries in management and other business-related competencies.