Provincial Innovation in LED

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Provincial Innovation in LED
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This presentation

• .provides background information on three
  local economic development programme being
  delivered by three South African provinces..

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Intro

• Three Provinces (Limpopo, Eastern Cape and Kwa
  Zulu Natal) have launched significant LED
  programmes which are supported by the Delegation
  of the European Commission

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Overall Objectives

• To provide demand responsive LED support which
  allows beneficiaries to identify solutions to
  their own needs in developing growth and
  combating poverty
• To identify and facilitate the replication of
  effective approaches to local economic
  development

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Mafato a Kgoale - LIMPOPO

• Supports the unemployed, marginally employed
  or under-employed, the landless, survivalist
  entrepreneurs and the emerging enterprise sector
  by
• Assisting three spheres of government by
  enhancement of their capacity to adopt a more
  pro-active role in reducing poverty by
  facilitating viable local economic activities.
• The business sector, by creating meaningful
  partnerships and linkages between emerging
  businesses and established formal enterprises
• Contracting Authority is the Provinces
  Department of Local Government and Housing

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Gijima-Kwa Zulu Natal

• Formulating a pipeline of sustainable projects
  developed in local partnership linked to
  provincial government priorities that can attract
  private and public sector investment to promote
  pro-poor local economic growth and development
• Programme is managed through four district
  learning centres and the Contracting Authority is
  the Provinces Department for Economic
  Development

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Thina Sinako- Eastern Cape

• Four Results areas
• Local Government supported to minimise barriers
  to enterprise establishment and growth
• Local partnership groups supported to exploit
  local competitive advantage
• Private sector enterprises supported to undertake
  private investment
• Experiences in LED arising from the programme
  disseminates locally, provincially and nationally
  

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Examples of work from Programmes (I)

• Gumbi Land Claim helping this community in KZN
  to develop a business plan and model to make
  productive of land recently restored to it
• Assisting Letsitele farmers cooperative in
  Mopani, Limpopo, to develop a packhouse for
  citrus that conforms to European Union Health
  regulations

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Examples of work from Programmes (II)

• Upgrading of facilities on the Midlands Railway
  in KZN to improve its attraction as an
  international and local tourist attraction.
• Assist small businesses to win sub-contracts from
  mining companies through the Palabora Foundation
  in Limpopo

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Value of Funds (Rand Million)

• Limpopos Mafato-A-Kgoale R 300 m
• KZNs Gijima R 300 m
• E.Capes Thina Sinacko R 300 m

Programmes are of six year duration, Limpopo
commenced in 2001, KZN in 2002 and Eastern Cape
in 2004
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How Communities, Municipalities can access the
challenge funds

• Awareness creation by project management units
• Call for proposal through the media
• Application form and guidelines issued
• Technical assistance provided to help submit
  applications
• Assessment of eligibility
• Selection based on fund criteria
• Signature of grant contract

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Type of Funds

• Local Government Support (or business enabling)
  Fund
• Local Competitiveness Funds
• Marginalised Communities Fund
• Financial Innovation Fund
• Networking and Cooperation Fund
• Technical Assistance Fund

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Management Issues

• Contracting authority provides leadership
• Project coordinating unit provides day-to-day
  administration and support
• Programme steering committee appointed by the
  contracting authority advises on implementation
• An evaluation committee approves projects in
  accord with the criteria for each fund and
  compliance with EC rules

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Sustainability Issues

• Have the systems and procedures used to deliver
  LED in provinces evolved ?
• Has the knowledge and capacity of people in
  provincial departments been enhanced?
• Did the initiatives supported through the funds
  contribute to the alleviation of poverty?
• Has the work in these three pilot Provinces
  influenced LED in the rest of South Africa?

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Monitoring, Learning and Research for LED

• Monitoring, learning research centres are being
  set up in the three provinces
• A national monitoring, learning and research
  facility is to be established at the dplg

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Further information and discussion and with
programme representatives and the dplg