LOCAL ECONOMIC DEVELOPMENT STRATEGY IMPLEMENTATION WITHIN BUSHBUCKRIDGE LOCAL MUNICIPALITY BY LAZARUS LUCKY NKUNA A dissertation submitted in fulfilment of the requirements for the degree of Master of Development Studies in the Department of Anthropology and Development Studies at the University of Zululand Supervisor: Dr PT Sabela Co-supervisor: Dr E.M Isike 2016 i DECLARATION I, Lazarus Lucky Nkuna, hereby declare that this dissertation submitted to the University of Zululand for the Degree of Master of Development Studies, has never been previously submitted by me for a degree at this or any other University, and that this is my own work and the material contained therein has been dully acknowledged and cited using the Harvard style of referencing. ___________________ _________________________ Signature Date ……………………………………. Lazarus Lucky Nkuna 2016 ii DEDICATION This dissertation is dedicated to my late father, Moses Nkuna, to my daughter Mikhenso Miranda Nkuna, and to the entire Nkuna family. iii ACKNOWLEDGEMENTS I thank the Almighty God for taking me from nowhere, and for guiding me throughout my academic achievements. God has been the source of my strength, my pillar, my spiritual inspiration and has built and shaped my character throughout the study. I would like to take this opportunity to extend my deepest gratitude and acknowledgements to the following people for their valuable contributions in various ways which made it possible for me to complete this dissertation. My Supervisors, Doctor Primrose Thandekile Sabela and Dr Effe Marry Isike for the belief you had in me, motherly love, guidance provided and for reviving my hope and igniting the desire in me to finish this project. I thank you for challenging my thoughts and character to reveal the hidden potential in me. I value your comments, guidance, leadership and critical contribution, without which I would not have completed the study. Dr. E.M. Mncwango and Professor C.T. Moyo, thank you for the editorial work and making the document reader friendly. My classmate and academic sister, Mthabiseng Ngwamba, we have walked the same walk and talked the same talk, and have both earned the Elephant stripes. Thank you for being there for me and may God our Father keep His eyes on you like a Hawk watching a sparrow. My late and initial supervisor, Mr Maxwell Nkosi, for laying the foundation for this study and the support you gave me when I started working on the document, though you sadly departed before completion of the study. The Threshing Floor Bible Church, for the unwavering, moral, prayers and support you provided throughout the study. A special appreciation is extended for being there for me and for the calls the Intercession ministry gave to strengthen me through prayers - the prayers gave me courage and strength to soldier on till the end. The LED unit in Bushbuckridge, specifically, Mr Solomon Nyembe, for clearing your busy schedule to accommodate and assist me with my enquiries. The staff and lecturers at the department of Anthropology and Development Studies at the University of Zululand, for encouraging words and believing in my farfetched dreams. May God inspire you to do so to other students coming after us. A special appreciation to my siblings, Amos, Grace, George and Xoliswa for the sacrifice you made, sometimes you were forced to spend the little you have to see that I have something to sustain myself during my study and thanks for all you have done. iv Gratitude from the bottom of my heart goes to my mother, Dephney Ndlovu, for all the sacrifices you have made and for helping me to carry my late father’s wish to study further. Thank you. v ABSTRACT Local government structures have a particularly important role to play in harnessing national and regional resources to promote their areas and in facilitating strategic local partnerships to enhance and sustain economic growth. The study sought to examine the implementation of Local Economic Development Strategy implementation in Bushbuckridge Local Municipality (BLM) in the Mpumalanga Province of South Africa. The sample comprised of BLM LED officials and at least 5 respondents selected from10 projects and these included the project management team and workers. The Chosen projects were chosen based on proximity and availability but maintaining balance to cover the entire municipality. This allowed the researcher to have a balanced view from both the municipal officials and people at the project sides. A purposive sampling method was used to select the sample for the study. The primary data was collected using interviews and structured observations. Secondary data was collected using the document analysis method. SPSS and the content analysis methods were used in the study. The study found that BLM has an LED strategy as prescribed in the municipal IDP and projects have been implemented to promote local economic development in the region. However, there is a knowledge gap from project participants as some have no access to information and cannot access and use the services from the LED offices to enhance their economic activities, due to their peripheral location. The BLM LED strategy is implemented following the Location Theory, projects were planned and positioned in places where they will maximise profit and minimise production costs by employing local ideas and resources, packing them to attract outside interest. The participatory model adopted by the municipality in planning and implementing LED activities does not yield the desired results due to some projects that are unable to be part of the participatory planning processes. The consultative activities during the conception and planning should target the poor. The study recommends therefore, that LED in BLM has to be a participatory model which is based on a holistic approach to incorporate different activities from different areas based on their local potential and available resources to create economic Spin- offs. The study also makes a number of specific recommendations to facilitate the planning and implementation of LED strategy in BLM: vi First, participatory processes such as the IDPs at local municipal levels should be used to facilitate people’s participation in the whole process, from conception, planning, implementation and evaluation of all LED activities in the local municipality. The beneficiaries have to be active participants in their own development, hence this will ensure full and active participation. The study also discovered that there is lack of coordination among the stakeholders to create viable establishment of cooperatives development and to formalise their economic participation in order to promote sustainable SMME development, growth and sustainable cooperative movement. Challenges of LED strategy implementation in BLM included that the municipality, like many others in the country, do not have adequate economic growth strategies, and if they do, it will only sound good on paper but the implementation on the ground does not happen as depicted in the strategy. This further perpetuate the triple challenges of poverty, unemployment and inequality. vii ACRONYMYS LED Local Economic Development SMME Small Medium and Micro Enterprise RSA Republic of South Africa SALGA South African Local Government Association SETA Services Sector Education and Training Authority SEDA Small Enterprise Development Agency LEDA Local Economic Development Agency IDP Integrated Development Plan BLM Bushbuckridge Local Municipality NGO Non-governmental Organization ILO International Labour Organization GTZ Gesellschaft Technische Zusammenarbeit KNP Kruger National Park DBSA Development Bank of South Africa DPLG Department of Provincial and Local Government KPA Key Performance Area UN United Nations RDP Reconstruction and Development Program ANC African National Congress NSDP National Spatial Development Perspective PGDS Provincial Growth Development Strategy HIV Human Immunodeficiency Virus AIDS Acquired Immune Deficiency Syndrome BOT Based Operative Transfer Principle PR Public Relations MEGA Mpumalanga Economic Growth Agency CPP Community Private Partnership M&E Monitoring and Evaluation GDP Gross Domestic Product DTI Department of Trade and Industries BDS Business Development Services SDF Spatial Development Framework viii HSRC Human Sciences Research Council IDO International Development Organization DEDET Department of Economic Development, Environment and Tourism COGTA Department of Cooperative Governance and Traditional Affairs MRDP Mpumalanga Regional Development Programme MABEDI Maruleng and Bushbuckridge Economic Development Initiatives ix CONTENT Page DECLARATION i DEDICATION ii ACKNOWLEDGEMENTS iii ABSTRACT v ACRONYMYS vii LIST OF FIGURES ix APPENDICES ix Chapter 1 1 1.0 Introduction to the study 1 1.1 Introduction 1 1.2 Background and context of the study 2 1.3 Statement of the problem 6 1.4 The purpose of the study 7 1.5 The objectives of the study 7 1.6 The research questions 7 1.6.1 The main research question 8 1.6.2 Sub-research questions 8 1.7 Study Area 8 1.8 Intended contribution to the body of knowledge 8 1.9 Research Layout 8 1.10. Definition of Operational terms 9 1.11. Chapter Summary 10 x Chapter 2 2.0 Local Economic Development Strategy Implementation 11 2.1 Introduction 11 2.2 Conceptual framework 11 2.3 Policy and Process of Local Economic Development 17 2.3.1 Local Economic Development at the Global level 17 2.3.2 Theories informing Local Economic Development 19 2.3.2.1 Location Theory 19 2.3.3 Processes of Local