Is local economic development a job creation mechanism : a comparative study of Sicelo and Evaton 2015-2020

Abstract

This study aimed to explore the Emfuleni and Midvaal Local Municipality Local Economic Development, and outline its contribution to creating job opportunities, especially in Sicelo and Evaton townships. The municipalities, as mandated by the Constitution of RSA (1996) to promote social and economic development, utilize developmental policies such as Local Economic (LED) to execute the required mandate. LED policies in the municipality should entail specific procedures to implement the policy adequately. LED policies should consist of effective LED programmes and feasible strategies that advocate for that area’s developmental needs. The study employed a combination of qualitative and quantitative method fondly known as mixed method approach for data collection. Furthermore, the study compares the Sicelo and Evaton township existence of LED to develop the local economy. To explore the LED policies and its contribution to the creation of job opportunities through LED, the researcher collected data from a total of 37 participants utilizing semi-structured interviews and questionnaire surveys. The study starts with the theme of Local Economic Development and its contribution to job creation opportunities by outlining aspects such as orientation and background, problem statement, research questions and objectives, the hypothesis and significance of the study. The latter-mentioned aspects will be used to explore LED and its contribution to job creation by evaluating the effectiveness of the LED programmes for the promotion of SMMEs and job creation opportunities, and the feasibility of LED strategies in tackling the challenges of job creation through LED. The findings outlined that LED contributes to creating job opportunities only if LED policies are adequately implemented. The findings also outlined that the existence of LED programmes in places such as Evaton and Sicelo are proven to be a job creation mechanism, as there were 2179 jobs created through the Midvaal Local Municipality LED programmes. The findings further elaborated that the Emfuleni Local Municipality could not implement their LED policy due to the insufficient capacity in their LED department. This however was a disadvantage to the municipality as it was unable to create the envisioned job opportunities through LED programmes. The LED programmes were mainly from the province and other government and private sector departments. This is evident, as ELM partnered with the private sector in sourcing funds ii to create 1000 job opportunities and promote SMMEs as an alternative to the failure of their 2015 LED policy. The LED strategies primarily increased job creation opportunities as envisioned. Chapter five evaluated each research objective, utilizing semi-structured interviews, questionnaire surveys, existing policies and a reputable literature review. Chapter five incorporated the responses of the respondents and discussions of the findings of the study. Furthermore, chapter 6 gives possible solutions and recommendations for exhausting resources in developing the local economy for the creation of job opportunities. The study outlines that SMMEs should be capacitated with sufficient knowledge so that they actively participate in the growth of their local economy. The municipality should have relevant programmes that speak to the developmental needs and are an advantage of what already exists, such as for both municipalities, the promotion of the VAAL river and Henley on Klip to attract investors and create more job opportunities. The study also highlights that the promotion of SMMEs in areas such as Sicelo and Evaton is crucial for unlocking possible job opportunities It is crucial that the programmes are effectively implemented for the creation of job opportunities; hence, the study recommends sufficient capacity and competence in both LED and IDP departments.