DEPARTMENT OF SMALL BUSINESS DEVELOPMENT NATIONAL LOCAL ECONOMIC DEVELOPMENT (LED) CONFERENCE RESOLUTIONS AND TRANSVERSAL AGREEMENTS 28 FEBRUARY 2018

Presentation Outline background Objectives of the Conference Theme of the Conference Conference Declarations Agreement with COGTA Led resolutions and activities Conclusion

background The mandate of the Department of Small Business Development (DSBD) entails the coordination of efforts towards a strong and sustainable community of SMMEs and Cooperatives to enable to contribute positively to economic growth and job creation in South Africa As Municipalities are a critical sphere of government in driving this mandate and ensuring that Radical Economic Transformation happens, DSBD initiated the National Local Economic Development Conference In pursuit of the objectives of the Intergovernmental Relations Framework Act DSBD invited the Department of Cooperative Governance and Traditional Affairs to co-host the inaugural 2017 National Local Economic Development Conference which took place on 9 to 10 November 2017 The Conference was positioned as a strategic platform to engage on critical issues on stimulating local economies through proper implementation of Local Economic Development (LED), which is understood to be : The development and/or expansion of formal economic activity and employment at sub- national level spatial level; A process in which partnerships between local governments, community based groups and the private sector are established to manage existing resources to create jobs and stimulate the economy of a well-defined territory Focused on local control using the potential of human, institutional and physical resources

background The Concept Note was developed by a Technical Team led by the Directors General of DSBD and COGTA Ministers were briefed, provided strategic direction and approved the objectives, themes and focus areas The Conference was well-received and attended. Political leadership in attendance included: Ministers DSBD and COGTA Deputy Ministers DSBD, EDD and COGTA Chairpersons of Portfolio Committee (SBD and COGTA) MECs Mayors and Councillors Other participants included 400 LED Practitioners from various municipalities The South African Local Government Association (SALGA) World Bank National Planning Commission Centre for Municipal Research and Advice Commonwealth Local Government Forum, various government departments

Objectives of the Conference   Adopt a new inclusive local government agenda for LED; Reflect on radical socio-economic transformation and implications for stimulating local economies; Explore how the Back-To-Basics Programme can be a tool for creating a conducive environment for economic development; The launch of the Economic Development Council of South Africa (EDCSA).

Theme of the Conference “Positioning Local Economic Development for Radical Social and Economic Transformation’’. The areas of focus were: The National Development Plan The Integrated Urban Development Framework Radical Socio-Economic Transformation

Conference Declaration ACKNOWLEDGING the importance of achieving radical and inclusive socio-economic transformation in order to respond and meet the needs, as well as the aspirations, of local communities and accelerating service delivery. RECOGNISING the vital role of enterprise development in LED in bringing about radical socio-economic transformation, especially in the achievement of inclusive economic development at local government level. REAFFIRMING the role that local government can play, as stated in the White Paper on Local Government, in promoting job creation and boosting the local economy by providing reliable basic services, reviewing existing policies and procedures to promote LED, and the provision of special economic services. RECOGNISING the critical role that SMME’s and Co-operatives can play in the provision of good quality and cost effective services, thereby opening new doors and opportunities for emerging entrepreneurs and thus contributing to the reduction of high unemployment , income inequality and poverty. CONVINCED that dialogue between the public and private sectors, and multiple stakeholders is needed on issues relating to stimulating local economies. Conference Declaration

Conference Declaration BELIEVING in the importance of special transformation, including redefining the role of townships in economic development. RECOGNISING the important role of science, technology and innovation in extending economic benefits to marginalized spaces, creating new economic opportunities, developing competitive regions and enterprises as well as enhancing inclusion of all in the 4th industrial revolution. NOTING that the youth is backbone and the future leaders to drive the economic growth and development of the country and the need to reap the demographic dividend. REAFFIRMING the significant role of women as the catalytic agents of enterprise and economic development. GUIDED by the mandates of the Departments of Cooperative Governance and Traditional Affairs (COGTA) and Small Business Development (DSBD) to provide support to municipalities in the creation and promotion of an enabling environment for economic growth and job creation. RESOLVED to adopt the new South African LED agenda aimed at contributing towards achieving radical economic transformation.

Agreement with COGTA The Conference assisted in further focusing the Memorandum of Agreement with COGTA. The Agreement that is currently being discussed will cover the following: Red tape reduction implementation Co-location initiatives Regulation/legislative review LED Strategies development and implementation Monitoring and evaluation of supported enterprises IDPs development and assessment support Cooperatives support Local procurement implementation Database development

Led Resolution LED Resolution Activities Ensure centrality of LED in the implementation of Back to Basics programme and Integrated Urban Development Framework Agreement: COGTA (Draft) Public Works Designation of these opportunities for local enterprises targeting youth and women-owned enterprises Manage rapid urbanisation and effect spatial transformation to stimulate local economies Department of Rural Dev and Land Reform Participate and influence municipal spatial planning and promote role of SMME development in IUDF processes

Led Resolution LED Resolution Activities Red Tape Reduction and addressing other inhibitors Agreement: COGTA & SALGA(Draft) Review applicable legislation that impedes SMME development

Led Resolution LED Resolution Activities Address enablers to growth and development of Small Enterprises Agreement: COGTA (Draft) Services Seta Create a virtual database for effective monitoring of SMMEs and Cooperatives and Informal Business Encourage the SMME sector to register on the database Utilize the database for promotion and up-liftment of SMMEs, Cooperatives and Informal Businesses Clarification of Role of Local Government on Radical Socio Economic Transformation Create a framework for participation, monitoring and evaluation

Led Resolution LED Resolution Activities Implementation of the revised National Framework for Local Economic Development Agreement: COGTA (Draft) Develop an action plan for DSBD pillars Establish new financial arrangements for innovation capability and capacity building in local spaces Department of Science and Technology (DST) Promote and advocate the role of innovation in LED Develop mechanisms for accessing support for innovation in LED Establish mechanisms for accessing the LED fund for innovation In collaboration with DST increase accessibility of Technology Platform Stations to local enterprises Monitor and evaluate the local/regional impact of DSBD’s funded incubators

Led Resolution LED Resolution Activities Strengthen the role of traditional leaders in economic development Agreement: COGTA (Draft) National House of Traditional Leaders (Draft) Encourage municipalities to involve traditional leaders in LED Planning Knowledge Sharing on Local Economic Development good practice Department of Higher Education & Training-DHET Minister’s roundtable with Universities Create support systems for replication of best practice

Led Resolution LED Resolution Activities Dedicate effective and efficient support for SMMEs, Cooperatives and Informal Business particularly on education Agreement: DHET Afford educational opportunities to employees of SMMES Delineation of roles and responsibilities between spheres of government on driving the LED Agenda COGTA (Draft) National Treasury (Draft) Clear delineation across sector departments to address duplication and misalignment

Led Resolution LED Resolution Activities Explore establishment of LED Fund and ensure that local government provides adequate resources for LED processes Agreement: COGTA (Draft) National Treasury (Draft) Draw lessons from the previous LED fund Develop Terms of Reference for establishment of LED fund Participate in municipal planning sessions and engagements on specific projects and advice on budgetary and resource allocation Identify potential sources of funding e.g. National Treasury, international donors, private sector, etc Engage relevant stakeholders on resourcing the funds Increase collaboration between researchers and policy makers in the design and programmes to address migration challenges DHET Engage with Universities to assist with research as they are always looking for research topics and are willing to offer it for free

Led Resolution LED Resolution Activities Facilitate sharing of national and international models on good practices in developing and promoting cooperatives Agreement: COGTA (Draft) Use international events like International Cooperatives Day to share best practices Support the Economic Development Council of South Africa (EDCSA) in strengthening and enhancing capacity of LED practitioners Facilitate interaction between ECDSA and targeted municipalities

Led Resolution LED Resolution Activities Build and strengthen collaboration between local government, the scientific community and agents of innovation to foreground innovation in LED Agreement: DST DHET & Universities Promote and advocate the use of science and technology to advance LED Create mechanisms and structures to link science and technology providers with municipalities

Led Resolution LED Resolution Activities Dedicate effective and efficient support for SMMEs, Cooperatives and Informal Business particularly on education Agreement: LGSETA: This Agreement was signed at the Conference Services Seta To provide business management training skills to Cooperatives, SMMEs and informal businesses by end of the 2019/20 financial period.

Conclusion Municipalities are at the core of economic development and transformation More effort should be dedicated towards supporting this sphere of government Closer collaboration with other government structures in supporting municipalities is critical DSBD will drive the agenda of ensuring proper community economic development through strategic partnerships The department depends on support and cooperation from other stakeholders including the private sector, tertiary institutions, labour, faith-based organisations, etc Appropriate skills at the local government level is critical