3.8 Precedents of Local Economic Development within Rural Areas in South Africa . 78
3.8.5 Some Reflections on Local Economic Development Projects
In a quest to eradicate the challenges Eastern Cape Province is faced with, it resorted to adopting Local Economic Development as an approach to dealing with such. The “purpose of LED is to create an enabling environment in which local people and institutions can make realistic and practical decisions to strengthen the local economy, create more jobs, promote new enterprises, including self-employment, and to improve the quality and prospects of life for all” (DPLG, 2010)67. Consequently; for the Local Economic Development Unit in Eastern Cape, set about creating an enabling environment for projects. They were largely driven by a more pro-poor approach, and a quest to promote socio-economic development which would create opportunities for sustainable and inclusive employment as well as increased economic activity68. For this to be realised a number of advances were made through the establishment of projects. These will be briefly discussed below.
67 See Eastern Cape LED information booklet (2010).
68 LED unit in EC involved public and private partnership from local and international, a factor that is seldom present in many LED initiatives and which indirectly ends up compromising the quality and sustainability of such. MEC: Mr. P. Masaulle argues in line with the latter, stating that “since 2006,
Table: 2 below presents a summary of some of the projects that the Local Economic Development Unit in Eastern Cape was engaged in. These projects bear testimony to the variety of opportunities that can be created if there is the correct approach and an institutional agency and that can implement them efficiently. A few of these projects will be discussed to highlight the different components of Local Economic Development that they focused on. Some of the lessons learned from practice and these specific case studies will also be discussed69.
the Department has worked with Thina Sinako (EU supported LED programme for the Eastern Cape) to develop new funding instruments for local economic development. Members of the LED Unit have been closely involved with Thina Sinako in promoting worthwhile and feasible projects and have been key players in the project selection, monitoring and evaluation process” (Eastern Cape LED booklet, 2010: 2).
69 The case studies presented are not exhaustive, but rather highlight what can be achieved through local initiative and to encourage other local groups to organise themselves for local economic development.
Table 2: A Summary of Some of the Projects of the Local Economic Development Unit in the Eastern Cape (EC)
Municipality Total Projects per
Municipality in
Manufacturing
Total projects per
Municipality
in Agri-
processing
Total
projects per Municipality in Tourism
Total Projects
Nelson Mandela Bay
1 3 1 5
Cacadu DM 3 8 1 12
Amathole DM 6 7 4 19
Chris Hani DM 6 11 6 21
Ukhahlamba DM
2 0 5 8
O.R. Tambo DM 9 4 5 15
Alfred Nzo DM 3 4 9 16
Total 30 40 32 102
Source: Adapted from Eastern Cape LED information booklet (2010)
3.9 “MICRO-MANUFACTURING CENTRE IN THE MATATIELE LOCAL MUNICIPALITY IN THE ALFRED NZO DISTRICT MUNICIPALITY (ANDM)”
This manufacturing project was funded by the Department of Economic Development and Environmental Affairs (DEDEA) and required an expenditure of R140 000 in the 2006/07 financial year. The objective of the project was to utilise the locals’ skills and nurturing them to develop sustainable small business, while decreasing the rate of high un-employment rate and poverty (E.C. LED, 2010). The Micro-Manufacturing Centre Project is mainly involved with the manufacturing of pottery, crafts, and upholstery. These products already have a market in Eastern Cape and elsewhere in the country as they are part of the African culture, especially during traditional ceremonies. The project as alluded early on uses local talent and skills, hence a large proportion of the people that are beneficiaries in the project are
from the community. Approximately twenty (20) members of the community are directly involved and benefit from the project. The two pictures below are illustrating the variety of products that are manufactured and later sold in the local market70.
Plate 1: Examples of the Manufactured Products
Source: Eastern Cape Local Economic Development Information Booklet (2010).
3.10 “SIVUKILE FURNITURE AND REFURBISHMENT CO-OPERATIVE LTD IN AMATHOLE DISTRICT
MUNICIPALITY”
The furniture and refurbishment project is spearheaded by Sivukile Company, which is a registered co-operative, consisting of ten members (E.C-LED, 2010). The member is spilt along genders lines with 30% women, and 70% men. Of the total 20% are people living disabilities and 10% are young people. The aim of the co-operative is to provide services in the refurbishment of school furniture and manufacture new furniture for schools and other institutions (E.C-LED, 2010). A business of this nature has lot of potential to grow and to make an impact on people’s lives in the Eastern Cape. There is lot of demand for the
70 The LED “Booklet produced by the Department of Economic Development and Environmental Affairs, is intended to provide information on the LED Unit services within DEDEA and to showcase some of the Department’s interventions in the local economies of the Eastern Cape through a series of case studies”.
services it renders especially in schools and other government departments in the province.
This project like all the previously discussed projects received funds from Department of Economic Development and Environmental Affairs (DEDEA), to a value of “R300, 000 in 2006/07 financial year and is still performing well”71.
Plate 2: The Training of the Members of the Co-operative
Source: Eastern Cape Local Economic Development Information Booklet (2010).
71 Case sourced from the Eastern Cape Local Economic Development Information Booklet (2010). For more in-depth analysis of the case study of co-operatives in the Eastern Cape Province; see the report titled compiled by Amathole District Municipality, titled: “Cooperating For Transformation:
Cooperative Case Studies From Amathole District, Eastern Cape”
3.11 “AMALINDA FISH FARM IN AMATHOLE DISTRICT MUNICIPALITY”
The Amalinda Fish Farm project is a micro fish farming venture that deals specifically with
“growing and selling fresh water crayfish (Marron) and Koifish”(E.C-LED, 2010) . This project has benefited from the existing local infrastructure, since it uses facilities of the Fish Research Station located within the Amalinda Nature Reserve. The project specialises in various fields, such as; the “upgrading the existing infrastructure, rehabilitating dams, building, hatching and fencing, stock breeding and fish farming, training on managing small businesses, environmental awareness, Marron and Koi fish farming and marketing” (E.C-LED, 2010). The project has created various job opportunities for locals, especially women and the youth. There are approximately thirty permanent jobs that have been created by the Amalinda Fish Farm Enterprise.
Plate 3: Marron and Koi Fish
Source: Eastern Cape Local Economic Development Information Booklet (2010).
3.11.1 Lessons from Amathole District Municipality Case Studies in the Eastern Cape