Local economic development of rural communities in Maluti-a-Phofung Local Municipality

Abstract

Sustainable service delivery and local economic development (LED) are legally required in South African local government. This developmental role is however, often constrained by limited resources, weak institutional capacity, and governance tensions. With this background, the purpose of this research was to analyses how the Maluti-a-Phofung Local Municipality in the Free State Province contributes to the LED of rural communities. Investigating the role, the local government plays in rural areas' economic development was the overarching issue that drove the study. A qualitative design was used, employing 14 purposively selected interviews with municipal officials, and the resulting information was organised into thematic codes. The findings revealed that while policies and structures for LED exist, their effectiveness is undermined by weak revenue collection, financial mismanagement, limited institutional capacity, poor implementation, and insufficient community participation. Opportunities in agriculture and tourism remain underutilised due to infrastructural deficits and strained relations between councillors and traditional leaders. Skills shortages among both officials and community members further undermine project sustainability. The research, which conceptually relies on co-production theory, establishes that governance failure at Maluti-a-Phofung is fundamentally a breakdown in co-productive capacity stemming from institutional mistrust and skills deficits. To manage rural areas sustainably and activate Maluti-a-Phofung's developmental mandate, the study recommends a shift toward a formal co-productive governance framework. Specific recommendations include three aspects that need to be addressed: (1) investing in core infrastructure in order to unlock economic sectors; (2) developing personnel and addressing skill deficits among both authorities and community members; and (3) increasing community involvement in budgeting and planning processes.