Local economic development strategies for employment creation in Amajuba District Municipality

Abstract

South Africa has a rapidly increasing unemployment rate which has been identified as a national crisis that urgently needs to be addressed. Unemployment is seen as a structural constraint that leads to significant issues of poverty and inequality which results in the deterioration of the quality of life of people. Given this, the South African government has placed a heavy emphasis on local economic development (LED) as a tool for employment creation and poverty alleviation. LED is understood as local initiatives that are driven by local stakeholders with local government in the forefront of driving local economic activity and employment creation within local economies. This study assessed the available LED strategies and/or tools available for employment creation using the Amajuba District Municipality as a case study. Employment creation has been specifically identified as the primary tool through which transformation can occur within the Amajuba District Municipality. This study employed a qualitative research approach in which semi-structured interviews were undertaken with 10 key participants within the Amajuba District. On this score, the study found that the Amajuba District is focusing on developing and promoting the agricultural sector, mining sector and textile sector as a LED strategy to create employment. In addition, the Amajuba District is also focused on the creation and facilitation of a conducive business environment as a LED strategy for employment creation. The findings suggest that there is room for improvement in regard to LED implementation and employment creation as the Amajuba District suffers from relatively high levels of poverty and unemployment. Given this, the study recommends that the Amajuba District Municipality should work on improving its collaborative efforts with the private sector, civil society and other relevant stakeholders. In addition, the Amajuba District should work on the promotion of a culture of entrepreneurship within the district. This can be in the form of supporting small, medium and macro enterprises (SMMEs), local farmers and aiding in the formalisation of the informal sector which could lead to better employment creation in the Amajuba District.