The effectiveness of local economic development unit in improving South African local economies : a case of Polokwane Local Municipality in Limpopo Province

Abstract

The purpose of the study was to assess the impact of Local Economic Development (LED) in South African municipalities. LED is meant to address socio-economic injustices inherited from the apartheid regime and provide economic emancipation for all in South Africa. It has been two decades since the inception of LED in South Africa; however, the objectives of LED are seemingly declining. The country is currently experiencing weak economic growth with high unemployment and poverty rates in its communities. The study investigated the nature and role of LED unit as well as strategies in place for implementing LED in local economies. It also investigated the challenges that LED official encounters in the implementation process of LED. The opportunities of the local economy have been identified in order to provide a platform for local economic policy reforms that can be used to recover economic bottlenecks. The study is empirical and used Polokwane Local Municipality as its study area. Both qualitative and quantitative research methodologies were employed in the study in which interviews and questionnaires were used to collect primary data. The target population of the study included LED officials in Polokwane Local Municipality and individuals who benefit from LED strategies. The population was sampled randomly and purposefully based on the participants' contextual experience on the objectives of the study. The study found that LED unit in Polokwane Local Municipality is not effective in its implementation of LED. There are LED initiatives in place; however, such initiatives are not entirely effective. The study argues that the role and strategies of LED unit are sound on the paper; however, it lacks maximum impact. The study therefore, provided a number of recommendation that could enhance the effectiveness of LED. The following are some of the recommendation: the LED unit should establish LED awareness that will educate and inform community members of LED; the LED unit needs to have adequate measures to regulate informal trading that is inclusive of foreign traders; LED unit formulates LED policies and strategies in line with opportunities of LED in the municipality; sufficient skills development programmes in the LED unit; the LED unit must provide adequate infrastructure that is suitable for economic growth and should undertake available economic opportunities in each community.