Local Economic Development South Africa, Phase I

Local governments in South Africa face huge challenges in providing the necessary framework conditions conducive to local economic activity. Such framework conditions include a transparent and predictable legal, regulatory and tax environment as much as infrastructure and social services. Unless these framework conditions are in place, local businesses cannot develop to create jobs and income needed to increase opportunities and quality of life for all inhabitants.

The overall objective of the program is to contribute to sustainable growth, through the strengthening of economic framework conditions that should allow the creation of more, better and more inclusive employment and income generating opportunities in South Africa's Ilembe District. All of SECO/WE's four operational teams are involved, as follows: i) WEMU for the component on public finance management- ii) WEIN for the municipal infrastructure component- iii) WEIF for the private sector development component and iv) WEHU for the component on value chain development. This allows for a concerted, integrated and coordinated approach to Local Economic Development.

Private sector: 1.Improved business environment- 2.Enhanced access to finance- 3.Improved access to business & technical skills.

Infrastructure: 1.Reduced infrastructure constraints (improved scope & quality of basic infrastructure services)- 2. Increased planning capacity & financing strategies for an integrated & systematic expansion of urban infrastructure- 3.Enhanced planning & management of key infrastructure sectors.

PFM: 1.Empowered municipal councils with robust PFM oversight functions- 2.Increased revenue mobilization- 3.Improved budgeting for capital investment & maintenance of assets- 4.Legal, transparent & efficient management of procurement processes.

Value chain: 1.Integrated SMEs into selected value chains/clusters- 2.More productive (reduced waste & inefficiencies)- 3.More eco-efficient (reduced water & carbon footprint)- 4.Produce better quality products- 5.Engage in more sustainable business practices- 6.Comply with inter-/national standards and buyer requirements.

Resultados previstos:  

Private sector: 1.Elaboration of sub-national Doing Business Report&action plan- 2.Design of a access to finance project- 3.Mapping of Business Development Services Providers- 4.Identification of accessible support options for SMEs- 5.Test&piloting approaches development of tailored technical skills.

Infrastructure: 1.Established asset management plans&robust registers&life cycle costing- 2. Established Growth&Development Strategy- 3.Established investment master plans for water,electricity,solid waste management&roads- 4.Finalized feasibility study for innovative green infrastructure.

PFM: 1.Improved in-year budget formats- 2.joint audit unit established&officials trained- 3.joint call center for account queries- 4.special rating areas established- 5.trained treasury, budet&procurement officers.

Value chain: 1.Formalized collaborative ventures&joint actions- 2.Improvement plans prepared- 3.Market studies&marketing capacities developed- 4.Institutional capacity assessments prepared.

Fase 1 01.01.2013 - 31.12.2023   (Completed)