Local economic development as a tool for job creation: a case of Mafube Local Municipality

Abstract

Importance is being placed on local economic development (LED) by the South African government, given the paradigm shift away from viewing local government as simply delivery agents to the concept of developmental local government. LED is essentially an ongoing process, based on local initiatives and driven by local stakeholders (especially the local government) to arouse economic activity and to create jobs in a specific locality. In an attempt to evaluate the impact of job creation and poverty alleviation, this study investigated the role played by LED as a tool for job creation: a case of Mafube local municipality. Participants included the community members, business people, Mafube local municipality members, especially members of the LED unit. The study found that, undoubtedly, LED plays an important role since it contributes towards job creation and poverty alleviation. The study recommends that for local governments to be effective in the process of LED, the local government must put in pragmatic and relevant strategies and involve all potential stakeholders in all the stages of the LED process. This should be complemented by efforts of the provincial government to strengthen the local government in the process of LED.