The role of local economic development in King Sabata Dalinyebo Municipality

The study sought to investigate the role of local economic development initiatives in rural areas of the King Sabata Dalindyebo Municipality in the Eastern Cape. This is the area which is mostly rural where poverty and unemployment take place every day. In South Africa, local economy is a critical success factor in addressing poverty and inequity .The South African Local Government White Paper on local government defines local government as a sphere of government that is committed to working with citizens and groups within the community to find sustainable ways to meet their social, economic and material needs and improve their quality of life. The study evaluates the participation of local people in small business to contribute in economic development of South Africa. Skill development and access to business information is also assessed to understand the knowledge the locals possess so that the able to own businesses. The research was conducted among the municipal officials, Ward Councillors, Municipal Managers and local economic development directorate. Government of South Africa has promoted LED through the concept of the “developmental state” and offers practical and financial support to local groups organized for the purpose of developing the local economy. Although most of the participants were educated people who have knowledge about the local economic development, people at grassroots level are struggling in being involved in different programmes funded by the government. The level of empowerment is low. Documents which are written in foreign language contribute to this challenge of not participating in local economic initiatives. There are few professionals who have experience and who can assist in planning and implementation of LED strategies and policies. Strengthening of already existing business association and partnering with business sector will promote active participants of the local people. The Department of Economic Development and Environmental Affairs argues that a critical part of local government’s leadership role in the area of LED rests within its ability to draw other key stakeholders into the development process. Effective and sustainable local economic development has been associated with the emergence of strong local partnerships, bringing together key stakeholder from both public and private sectors along with local community interest groups. Although there were studies that were conducted before the locals are unable to play active role in determining their own economic paths. The aim of local economic development to empower the local communities to identify their local resources to create opportunities for economic growth and employment. The objective to of this study is to create such opportunities so that the people at grass root level are able to understand their potentials in order to participate and promote the economic development of South Africa. Successful Local Economic Development depends on local participation as well as on national and regional structures to provide and…