The implementation and sustainability of pro‐poor local economic development initiatives in King Cetshwayo District municipality

• Published date: 01 May 2022
• Author: Nokukhanya N. Jili,Thokozani I. Nzimakwe
• Date: 01 May 2022
• DOI: http://doi.org/10.1002/pa.2424

ACADEMIC PAPER

The implementation and sustainability of pro-poor local

economic development initiatives in King Cetshwayo District

municipality

Nokukhanya N. Jili

1

| Thokozani I. Nzimakwe

2

1

Department of Public Administration,

University of Zululand, Richards Bay,

South Africa

2

Faculty of Commerce, Administration and

Law, School of Management, IT and

Governance, University of KwaZulu-Natal,

Durban, South Africa

Correspondence

Nokukhanya N. Jili, Department of Public

Administration, University of Zululand,

Richards Bay, South Africa.

Email: jilin@unizulu.ac.za,khanyo.jili@

gmail.com

The implementation of economic development policies seems to be a persistent

problem hindering local economic development (LED) in South Africa. The main aim

of this article was to assess the implementation and sustainability of pro-poor LED in

the King Cetshwayo District municipality. The need to address poverty and unem-

ployment is one of the most critical issues in this municipality. A qualitative approach

was adopted in this article whereby eight in-depth interviews were conducted among

municipal officials in uMhlathuze and uMfolozi local municipalities. The researchers

further conducted 14 focus group discussions with community members, which

included cooperatives. The findings show that LED in the King Cetshwayo District

municipality was conceptualised generally as a form of partnership or coalition under-

taken between the key players in a local municipality and involves the development

of partnerships between the private sector, government and civil society. Moreover,

the Richards Bay Industrial Development Zone (RBIDZ) together with other stake-

holders, including the municipality, has put measures in place to assist small and

medium business enterprises (SMMEs) to benefit from the RBIDZ activities. The arti-

cle recommends that partnership with young people, businesses and community

organisations must be strengthened in order to address the problem of unemploy-

ment. This will open a space for more stable job opportunities for the residents. A

certain percentage of outsourced work must be given to the youth who are qualified

to do the job, and youth must be able to access funding when they try to establish

cooperatives, SMEs and non-profitable organisations (NPOs).

1|INTRODUCTION

This article intends to contribute to the implementation and sustain-

ability of local economic development (LED) initiatives at local govern-

ment sphere with special reference to King Cetshwayo District

municipality. Local government is a sphere of government that is clos-

est to local communities and is so placed to identify, drive and imple-

ment programmes aimed at addressing unemployment, poverty

alleviation and developmental challenges facing local communities in

South Africa. The King Cetshwayo District (KCD) municipality is not

excluded from these challenges, which include the challenges of stim-

ulating pro-poor LED by creating jobs and promoting the growth of

small and medium business enterprises (SMMEs). A significant and

timely research on the impact of LED on poverty and unemployment

reduction was, therefore, conducted. Goldman (2005, p. 2) stipulates

that the purpose of LED is to build up the economic capacity of a local

area to improve its economic future and the quality of life for all. Pro-

poor LED is also a process by which public, business and non-

governmental sector partners work collectively to create better condi-

tions for economic growth and employment generation. Swinburn,

Murphy and Goga (2006, p. 1) highlight that pro-poor LED is increas-

ingly used by communities to fortify the local economic capacity of an

area, improve the investment climate and increase the productivity

and competitiveness of local businesses, entrepreneurs and workers.

Received: 24 January 2020 Revised: 22 May 2020 Accepted: 21 August 2020

DOI: 10.1002/pa.2424

J Public Affairs. 2022;22:e2424. wileyonlinelibrary.com/journal/pa © 2020 John Wiley & Sons Ltd 1of7

https://doi.org/10.1002/pa.2424