Local Economic Development
Local Economic Development (LED) is perceived as a continuous process that enables the utilization of localized resources by various investors, key stakeholders and the community to create sustainable formal and informal trading businesses that enable wealth generation together with the creation of jobs. It is further viewed as a mechanism that reduces poverty within an area while reducing or removing economic & social imperatives that hinder both economic and social development and growth. LED further enhances the Gross Domestic Product contribution to the District, Province and National Economies.
The council of Dannhauser, together with its Executive Management, conducted its strategic session which amongst other key service delivery aspects, undertook to assess the performance of its Local Economic Development KPA with the intention of developing a strategic direction upon which clear objectives and key deliverables would be formulated in order to improve its performance on this aspect. The strategic session was undertaken in the 2018/19 financial year, and implementation of the agreed outcomes of the session commenced.
1.In 2018/19 the session resolved that LED would be one of the main key drivers of the council’s service delivery mandate. Based on this resolution, the main objectives of LED were identified as follows:
♦ Council has resolved to make LED a priority for this term;
♦ Increased capacity within LED department;
♦ Council to allocate more resources to fulfill the desired objectives of LED;
♦ To enhance investment attraction and retention of businesses;
♦ To focus and support on agricultural programmes;
♦ To persuade a viable industrial park with necessary resources;
♦ To promote the Informal Economy;
♦ To promote partnership with private sector in ensuring job creation; and
♦ To ensure that Municipal Safety is prioritized.
During 2016/17 financial year, the municipality reviewed its Local Economic Development Strategy in compliance and response to the MEC’s comment and in full recognition of the current turbulent economic environment. The strategy undertook a holistic and more practical approach in setting the new tone and new developmental economic agenda for the town and its rural surroundings. It further integrated some of the initiatives and strategic thrusts from the district plans that are relevant to Dannhauser in order to ensure vertical and horizontal alignment. The review report was submitted to the Land and Resource Portfolio Committee as part of the stakeholder consultation process. Further stakeholder consultation has commenced through the advertisement of the draft review report for public inputs and comments in the local newspaper as well as the municipal website.
1.In 2018/19 the MEC of KZN – Cogta reviewed the IDP, and the findings of the review were as follows;
♦ The municipality is requested to include the Informal Economy Policy and Investment Retention Policy and other regulatory policy environment as per the IDP guidelines;
♦ The formulation of a land ownership database;
♦ Ensure full alignment with the District Growth and Development Plan (DGDP) and priorities referring to some Provincial Growth and Development plan (PGDP) goals;
♦ Identify and source funding for projects emanating from the PGDP and DGDS;
♦ Review and amend municipal by-laws and policies that inhibit economic growth;
♦ Assessment of municipal jurisdictional economic drivers; and
♦ Give attention to the Municipal Safety Plan
1.The proposed actions by the municipality to address the 2018/19 above comments of the MEC are as follows;
♦ The municipality to adopt the Informal Economy Policy in 2019/2020;
♦ The municipality to develop an Investment Retention Policy and other regulatory policy frameworks that unlock investment in the 2019/2020 financial year;
♦ Process for alignment with the PGDP, and DGDP has been prioritised and prioritisation of the Catalytic projects will be listed in the current review.
♦ Identify various sources of funds to enable the development of the economic projects identified;
♦ Ensure that the municipal by-laws are reviewed and amended in 2019/20 financial year;
♦ Incorporation of the municipal jurisdictional economic drivers in the IDP 2019/2020; and
♦ Develop the Municipal Safety Plan and adopt it in 2019/20 financial year.
The strategic focus is on high potential sectors and initiatives in order to limit the over planning on unachievable programmes. As a result, there is more biasness to Agricultural, Industrial and mining sectors. The municipality has further deemed it necessary to develop and growth the tourism sector due to the available biological assets and other related assets, and the inclusion of the informal trading sector as more community households are partaking in it. The predicament currently faced by the business community is to witness the dwindling fortunes and prospects of the town without any formal response from government to present economic stimulating measures; this is further demised by the poor dilapidating public and economic infrastructures.