UMZIMVUBU LED REVIEW STAKEHOLDER
ENGAGEMENT WORKSHOP
PRESENTED BY MS THATO BOPAPE
DATE: 20/02/2020
PRESENTATION OUTLINE
1. Introduction
2. Legislative Framework for LED
3. Status Quo
4. The Revised LED Framework
5. Factoring Science Technology And Innovation
INTRODUCTION
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• Local government is a key sphere to promote sustainable
development and change the quality of life of the people.
• Section 152 of the Constitution mandates local
government to structure and manage its administration,
budgeting and planning processes to promote the
social and economic development of the community.
• Fulfilling this task requires it to have the right “pillars and
tools” to enable it not only to start activities, but to
maintain those activities.
LEGISLATIVE AND POLICY CONTEXT
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Legislative and policy environment clearly
outlines the role of local government
Constitution of the Republic of
SA
Municipal Structures
Act and Municipal
Systems Act
White Paper on Local
Government
CONSTITUTIONAL PROVISIONS FOR LOCAL GOVERNMENT
Provide democratic and accountable government for local communities.
Ensure the provision of services to communities in a sustainable manner.
Promote social and economic development.
Promote a safe and healthy environment.
Encourage the involvement of communities and community organisations in the matters of local government.
SCHEDULE 4B AND
SCHEDULE 5B
Outlines the functions of
local government.
Promoting social
development and
economic growth
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Maximising social
development and
economic growth.
Integrating and
coordinating.
Democratising development.
Leading and learning.
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WHITE PAPER: DEVELOPMENTAL LOCAL GOVERNMENT
Role of local govt is not
to create jobs ; but
To ensure that the overall
economic and social
conditions of the locality
are conducive to the
creation of employment
opportunities.
Through among others,
• Provision of
infrastructure
• Regulation
• Price and quality of
water, electricity and
• Planning and land-use
management
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STATUS QUO
1. Within municipalities there is confusion about the LED
department’s role.
2. LED is not considered a high priority.
3. LED Units lack capacity & resources & produce strategic
plans that are rarely updated.
4. The LED plans tend to be disconnected from reality, lack
economic rationale or make simplistic assumptions about
the economic value chains.
5. Assume that funding will come from other spheres of
government.
6. The private sector is also not aligned with the municipality
& economic analysis & intelligence are lacking.
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STATUS QUO
1. Municipalities depend heavily on national grants but have
little or no say in the plans developed & policy decisions
taken by national (& provincial) government although these
plans & decisions affect their local economies.
2. The dependency on national grants means that
municipalities are not compelled to think about or utilize their
infrastructure in economic terms & it also reduces local
accountability.
3. There is a need for the LED function at local level needs to
be re-imagined.
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THE REVISED LED FRAMEWORK
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THE VISION
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Vision for Local Economic Development:
“LED will seek to create competitive, sustainable,
diverse, innovation-driven inclusive local economies
that are vibrant places in which to live, invest, and
work, which maximise local opportunities, address
local needs, and contribute to South Africa’s national
development objectives, including sustainable ways
of utilising local resources and expand learning
capabilities”.
WHAT IS LED IN THE SA CONTEXT?
1. Maintains the approach of the White-Paper on LG: LG is not
directly responsible for creating jobs, the responsibility of LG
is to create an enabling environment. The pillar on Local
Economic Governance focuses on the LG role in creating
an enabling environment. This has a number of implications:
➢ Municipalities should spend their limited resources on
unlocking economic development opportunities, and not
directly on job creation.
➢ Municipalities must lead LED: a clear vision and a clear
strategic agenda.
➢ Stronger emphasis on understanding key role players to
drive the vision, and therefore strategic collaboration and
partnerships.
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DEFINING THE LED ACCORDING TO THE
FRAMEWORK
A consensus of stakeholders arrived at the following
definition:
“LED is the process by which public, business and non-
governmental sector partners work collectively to create
better conditions for inclusive economic development
that is characterised by employment generation,
economic capacity building for a local area, investment
attraction and retention, image enhancement and
revenue generation in order to improve its economic
future and the quality of life for all”.
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OBJECTIVES OF THE FRAMEWORK
1. To launch a radical fight against poverty, inequality, unemployment and
enhancing quality of all through the development of innovative and
inclusive and competitive local economies;
2. To support the potential of local economies to grow and develop the
national economy;
3. To raise greater awareness of the significance of regions, metropolitan
municipalities and localities as focal points in generating national
prosperity;
4. To intensify the support for local economies in realising and building their
economic potential, their diversity, levels of employment and the creation
of decent work for their communities;
5. To strengthen intergovernmental coordination for planning of inclusive
economic development between government and non-governmental
sectors.
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1. CONTEXTUAL ENVIRONMENT
2. REVISED CORE PILLARS
2.1 Building a diverse &
innovation driven local economies
2.4 Developing learning and
skillful economies
2.2 Developing inclusive
economies
2.3 Enterprise development
& support
2.5 Economic Governance
and Infrastructure
1.1 National Economic Development Context
1.2 LG & LED Context
3. LED SUPPORT (ENABLING) PILLARS
3.5 Planning, Research and
Strategy
3.2Funding
3.3 Organisational& Institutional
3.5 Capacity Development
3.1 Monitoring
& Evaluation
SCHEMATIC OVERVIEW OF THE FRAMEWORK
1.3 SA Policy Environment1.4 International Contemporary Issues In
LED
2.6 Strengthening
Local Innovation
Systems
LLED Core Pillars
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Bu
iild
ing
a D
ive
rse
& In
no
vati
on
-dri
ven
Lo
cal E
con
om
ies
•Local sector development
•Metro economic development programme
•Link to Regional Economic Development
•Link to Regional industrial development
•Advancing primary, secondary and tertiary sectors
•Exploiting STI to advance sustainability, competitiveness and productivity
•Linking LED to corridor development & sub-national cross boader programme
De
velo
pin
g I
ncl
usi
ve E
con
om
ies
•Development of informal economies
•Inner city economic revitalisation
•Township economic development
•Inclusive and integrated rural economies
•Expanded public and community works programmes
•Small town economic development programme
De
velo
pin
g L
ear
nin
g &
Ski
lfu
l Eco
no
mie
s
•Improving economic and management capacity
•Leadership and management skills
•Addressing skills gaps
•Enhancing capacities to innovate
•Enhacing capacities to foster innovation-driven LED
•Enhacing capacities to foster
•Workplace skills
•21 Century skills
•Strengthening linkages between knowledge organisations and LED actors
En
terp
rise
De
velo
pm
en
t an
d S
up
po
rt
•Support businesses of women, youth owned and people with disabilities
•SMME support
•Techno-entrepreneurship
•Co-operatives support
•Business incubation
•Business linkages
Eco
no
mic
Go
vern
ance
an
d In
fras
tru
ctu
re
•Improving LED planning capacity
•Improving economic and management capacity
•Enhance Administrative economic development capacity
•Improve access to development funding/finance
•Strengthening LED agencies
•Improve the ease of doing business, i.e. red tape reduction
•Improve business attraction, retention and expansion
•Image enhancement, beutification and marketing of local spaces
•Faciliate and coordinate investment
Str
en
gth
en
Lo
cal I
nn
ova
tio
n S
yste
ms
•Strengthen municipality-university and municipality-science council linkages
•Strengthen capacities of municipalities to promote innovation & techno entrepreneurship
•Provide support for science and technology infrastructure
•Provide support for innovation infrastructure
•Strengthen capacities of municipalities to undertake mapping of local innovation systems
INSTITUTIONAL PRINCIPLES FOR LED
1. A functional economic development unit can exist on a
small budget.
2. A functional LED Unit needs to be involved in both pro-
growth and pro-poor projects.
3. LED needs to occupy centre stage within a municipality &
economic thinking must be integrated into the other
functions performed by a municipality.
4. A functional LED Unit should furnish the rest of the
municipality with robust economic intelligence.
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STRATEGIC ISSUES IN REIMAGINING LED
• LGs should mainstream economic considerations into their sectoral
departments & also into the accompanying strategies of those
departments.
• LGs need to use municipal levers, such as land-use planning, to
support their economies.
• Municipalities should do more to build economic intelligence, with the
assistance of other spheres of government.
• LGs should strengthen economic strategies that are appropriate for
their specific economic context and based on solid economic intelligence.
• LGs should develop economic partnerships, as municipalities need to
facilitate, not drive economic development.
• LGs should create appropriate institutional arrangements that support
economic development.
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ISSUES TO RESOLVE
1. Economies often dependent on a single sector.
2. Old economies.
3. Economies vulnerable to national decisions.
4. Important regional role within their rural hinterlands.
5. Links with the larger urban areas.
6. Aging infrastructure & poor municipal finances.
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AREAS OF CONSIDERATION
Longer-term strategies include helping sector departments to understand
local economic drivers & consequences/ risks fore their areas.
To achieve this LED units can take the following actions:
• Develop narratives to explain the current economic situation, future
risks & implications so municipal management & other departments
understand
• Identify economic assets & assess the municipality’s competitive
advantages, which might (for example) be linked to a city’s regional
services function
• Develop long-term plans & visions & ensure these plans are included
in the IDPs
• Link IDPs and SLPs more effectively in mining towns
• Develop appropriate intergovernmental relations to support a local
development strategy.
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WHAT DOES THIS MEAN PRACTICALLY?
• Employ more people with economic & business skills.
• Educate other departments to understand the relationship between
the services they deliver & economic development.
• Develop long-term plans & vision, based on the municipality’s
competitive advantages & economic assets.
• Tackle the business red tape.
• Introduce proactive rezoning & more flexible land-use regulations,
especially during the times of economic decline.
• Develop a database of business closures, changes & confidence
levels.
• Build a comprehensive understanding of local economic drivers &
assets.
• Appoint an economic development advisory body.
• Use municipal information (e.g. land use applications, clearance
certificates ) to build economic intelligence.
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LED SUPPORT TO BUSINESSES
A local business enabling environment survey should be conducted and
should aim to achieve several outcomes . They should seek to:
• Find out about individual businesses, how long they have been
established, number of employees, skills, products produced, exports
and supply chain information;
• Establish what the business community thinks are the major strengths,
weaknesses, opportunities and threats that face the area;
• Establish the types of problems that are faced by businesses when
dealing with municipalities and other tiers of government;
• Enquire as to what needs businesses have, what ideas they can bring to
the LED agenda; and,
• Establish contact with local businesses to ensure that an ongoing
business relationship is formed with the LED team.
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Thank You!