The Provincial LED Support Programme

1
The Provincial LED Support Programme
ECDC Board Presentation 3 February 2006
Thinasinako!
Christian Weltzien
2
The Programme context

• The national LED policy framework
• Conditions in the Eastern Cape
• The Provincial Growth and Development Plan (PGDP)

3
Project Objectives

• Overall Objective
• A significant reduction in the number of
  households living below the poverty line
• Relates to PGDP Objective of 60-80 reduction of
  no.of households below poverty line by 2014
• Project Purpose
• The creation of significant levels of
  sustainable employment (including self
  employment) in EC, especially PDIs

4
How will the programme ensure successful LED?

• It will provide support to local actors engaged
  in economic activity
• It brings to the Province total resources of more
  than R250m over a 5-year period from 2005 to 2010

5
What kinds of support will the Programme provide?

• Technical assistance
• Information on the way the local economy works in
  the context of the provincial and national
  economies
• Information on institutions supporting LED work
• Information on finance for economic development
• Support to organisations (incl. enterprises and
  municipalities) who wish to apply for finance
  through one of the programme funds
• Finance
• For municipalities to improve their support and
  facilitation role
• For creating partnerships for local economic
  development
• For enterprises to take advantage of partnership
  and other business opportunities on commercial
  terms
• For financial institutions to meet their
  obligations and targets in terms of the Financial
  Sector Charter

6
Institutional architecture
EXCO
Economic Growth Infrastructure Cabinet
Committee Cluster
Programme Steering Committee
Advisory Coordination Groups
DMs, NMMM, BCM, SALGA, Chambers of Business,
COSATU, ECNGOC, DoA
Programme Coordination Group
DTI
DHLGTA
Provincial Treasury
Office of the Premier
DEAET
ECDC
ECSECC
IDC
Project Generation Team (incl. Regional Offices
linked to DMs)
Finance Contracts Unit
Long-term Programme Coordination Unit
7
Long-term Programme Coordination Unit
Finance Contracts Unit
Hosted by DHLGTA
Hosted by ECDC
Hosted by Provincial Treasury

• Regional office staff (12)
• Fund Advisor x 6
• Administrator x 6

8
Who can benefit from the programme?

• Provincial government departments institutions
• Municipalities development agencies
• Local entrepreneurs stakeholders
• Economic development business support agencies
• Financial institutions

9
Funding Instruments
LCF
LGSF
Fast Track
Fast Track
Commonly Held Good
CAP Support
CAP
CAP
CAP
CAP
CAP
Privately Held Good
FIF
10
What is a CAP?A Competitiveness Action Plan
Based on Competitiveness of the area
Non-Governmental Sector
Public sector
LED Initiative
Informal Business
Formal Business
Or any combination
11
Milestones 2006