UNIVERSITY OF KWAZULU-NATAL UNLOCKING LOCAL ECONOMIC DEVELOPMENT IN THE INGONYAMA TRUST LAND THROUGH LAND SCHEME DEVELOPMENT. THE CASE OF DUDUDU, KZN. By Malusi Cyril-Innocent Mzotho 213572396 A dissertation submitted in partial fulfilment of the requirements for the degree of Master of Commerce in Leadership Studies Graduate School of Business and Leadership College of Law and Management Studies Supervisor: Dr Jennifer Houghton 2015 DECLARATION I Malusi Cyril-Innocent Mzotho declare that: (i) The research reported in this dissertation/thesis, except where otherwise indicated, is my original research. (ii) This dissertation/thesis has not been submitted for any degree or examination at any other university. (iii) This dissertation/thesis does not contain other persons‟ data, pictures, graphs or other information, unless specifically acknowledged as being sourced from other persons. (iv) This dissertation/thesis does not contain other persons‟ writing, unless specifically acknowledged as being sourced from other researchers. Where other written sources have been quoted, then: a) their words have been re-written but the general information attributed to them has been referenced: b) where their exact words have been used, their writing has been placed inside quotation marks, and referenced. (v) This dissertation/thesis does not contain text, graphics or tables copied and pasted from the Internet, unless specifically acknowledged, and the source being detailed in the dissertation/thesis and in the References sections. Signature: ………………………. ii ACKNOWLEDGEMENTS I would like to express my heartfelt thankfulness to the following people, who made this research study possible through their support and encouragement: First and foremost, I would like to thank God the Almighty for granting me the strength and patience to complete the research study even when at times it would feel near impossible. The Department of Economic Development, Tourism and Environmental Affairs‟ Regional and Local Economic Development (RLED) for granting me the bursary to undertake the UKZN Masters Programme. My employer, Ugu District Municipality, for granting me leave of absence to allow me to attend lectures and supervision blocks. My research supervisor, Dr. Jennifer Houghton, thank you for your guidance, encouragement and constant reminders. The respondents, who sacrificed their time to provide me honest and valuable inputs, I can never thank you enough. You were the main ingredient of this research and without you it would have never been possible, God bless you abundantly. My classmates and colleagues with whom I undertook the programme, it has been a pleasant journey only because of the support and encouragement we gave each other and the moments we shared during our supervision blocks. Lastly but not least, I would like to thank my family especially my mother Hlengiwe Mzotho and my grandmother Mavis Hlongwa, for their tireless support, encouragement and prayer which saw me through. My new young family, my fiancée, daughter and son, for the patience you have shown when at times I had to cut down on our quality family time. iii ABSTRACT The purpose of this study was to investigate a land development system that is most appropriate for unlocking LED potential in the Ingonyama Trust Land for the community at Dududu Village. The land under the Ingonyama Trust Board administration holds huge potential in unlocking Local Economic Development in the rural areas. However, it is believed that the lack of both tenure security and access to Ingonyama Trust Land has been the barrier of economic and social development for rural areas within the Ugu District. What prompted the study was the fact that there had been very little research conducted around the area of Dududu as to why the LED focused projects in the area are not implemented. The common challenge that was usually given during the IDP development process was the issue of land security and availability. Furthermore, there were many feasibility studies that had been conducted in the area but projects were never implemented because of the unavailability of land, even though they have proven to be feasible. The majority of the land in Dududu falls under the Ingonyama Trust Land and with the feasibility studies proving LED projects viable, the issue of land as a driver of LED needed further investigation. The theoretical approach of the research is based on three broad theories which are namely, Local Economic Development, Land Tenure and Traditional Leadership. The qualitative methodology approach was employed and purposive sampling was used. Sixteen, in-depth, face-to-face interviews were conducted with respondents from the Traditional Authority, Government Sector, Community and Business Community. Data was analysed through the application of thematic analysis. The key findings indicated the challenges faced when it comes to land development and control in rural / traditional areas and recommendations of the options that are available to mitigate these challenges were made. The key findings have been grouped into eight themes which are namely; land potential in Dududu; access to Ingonyama Trust land; land tenure security; administration of Ingonyama Trust land funds; indigenous land use management in Ingonyama Trust Land; the land use management system and getting the community involved; key stakeholders and responsibilities; and stimulating local economic development in Ingonyama Trust land. iv CONTENTS DECLARATION ............................................................................................................ ii ACKNOWLEDGEMENTS............................................................................................ iii ABSTRACT ................................................................................................................. iv CONTENTS .................................................................................................................. v CHAPTER ONE: INTRODUCTION ............................................................................. 1 1.1. Introduction .................................................................................................... 1 1.1.1. Local Economic Development (LED) ..................................................... 2 1.1.2. Land Tenure and Traditional Leadership ............................................... 3 1.1.3. Land Use Management .......................................................................... 5 1.2. Aims and Objectives....................................................................................... 6 1.3. Rational .......................................................................................................... 7 1.4. Background to the Study Area ....................................................................... 8 1.5. Land Tenure ................................................................................................... 9 1.6. Dududu Demographics ................................................................................. 10 1.7. The Structure of the Dissertation .................................................................. 14 1.8. Conclusion ................................................................................................... 15 CHAPTER TWO: LOCAL ECONOMIC DEVELOPMENT.......................................... 16 2.1. Introduction .................................................................................................. 16 2.2. What is LED? ............................................................................................... 17 2.2.1. Inequality Reduction ............................................................................ 18 2.2.2. Minimum Living Standard .................................................................... 21 2.2.3. Sustainable Resource Use and Production ......................................... 23 2.3. International Trends in LED .......................................................................... 25 2.4. The General Context in which LED is Implemented Internationally and in South Africa ........................................................................................................... 31 2.5. South Africa‟s Response to LED Legislative Mandate ................................. 38 2.6. Conclusion ................................................................................................... 42 CHAPTER THREE: RURAL LAND TENURE AND LAND USE MANAGEMENT SYSTEM.................................................................................................................... 44 3.1. Introduction .................................................................................................. 44 v 3.1.1. Characteristics of Rural Areas ............................................................. 44 3.1.2. Why is Land Tenure so Contentious? .................................................. 46 3.1.3. Communal Land Tenure Systems ........................................................ 48 3.1.4. History of Land Tenure in South Africa ................................................ 53 3.1.5. The Ingonyama Trust Land .................................................................. 55 3.1.6. The Role of Amakhosi in Ingonyama Trust Land ................................. 58 3.2. Land Use Management in South Africa ........................................................ 60 3.2.1. Implementing Land Use Management ................................................. 64 3.2.2. The Link between LED