Presentation by the Department of Cooperative Governance to the Portfolio Committee on Cooperative Governance and Traditional affairs 15 November 2011

 LED is not new and at first concentrated on urban centres  Since then LED has been elevated from isolated local development intervention, mainly in cities, to an obligatory intervention for all local authorities in terms of the Constitution and the Municipal Systems Act.  Period Post-2005 represents an evolution in terms of both a new policy maturity as well as greater involvement of a range of different stakeholders in supporting LED – from national departments, through provinces, the private sector, local governments and civil society 2

 Post release and finalisation of a draft of national policy initiatives linked to LED:  Policy Guidelines 2005  National Framework Document 2006  5 year Local Government Strategic Agenda and Implementation Plan 2006  2006 RIDS  2006 NSDP  2009 Local Government Turnaround Strategy  2010 New Assessments on LED – Policy Shift? 3

 Developed through a long process of negotiation and discussions with key central stakeholders (the Presidency, DTI,…)  Contestations about the role of DPLG in guiding economic development  The Framework tried to accommodate aspects of both pro-market and pro-poor approaches 4

 Developed around 4 strategies identified as essential for the successful achievement of the overall goals of the Framework:  First, to improve good governance, service delivery, public and market confidence in municipalities;  Second, to identify and exploit the competitive advantage of municipal regions;  Third, to intensify enterprise support in local area; and  Four, to introduce Community Investment Programming. 5

 The Framework is not widely used at local level by LED related stakeholders  LED commitment seems to have decreased throughout the years (reflected in budgetary allocations)  Need to increase coordination between sector departments, provinces, municipalities and stakeholders  Very few lasting partnerships have been created between municipalities and the private sector as well as other stakeholders  LED projects do not have sufficient scale  LED still remains a priority 6

“Refers to the approach … to encourage investment by big business, small local business development, tourist industries or large-sector economy management in mining, manufacturing or farming.” [Local Government Turnaround Strategy 2009 – 2014] 7

 Critical component of LGTAS and Outcome 9  Department of Cooperative Governance to serve as single window of coordination for LED  Alignment with New Growth Path, IPAP II and Comprehensive Rural Development Programme  Creating functional partnerships between municipalities and the local private sector as well as civil society  Facilitate the unlocking of local investment opportunities of scale that will lead to sustainable private sector job creation  Leverage local procurement 8

 Good governance and democratic participation  The availability of economic infrastructure at local level  Municipal land and property  Reducing red tape  Local competitive and competitive advantage  Skills development 9

10 Performance IndicatorReporting PeriodAnnual Target 2011/12 2 nd Quarter (July-September) 2011 TargetActual 6.14 Number of Advisory Councils established Biannually Number of Catalytic Business Ventures (CBVs) supported Biannually1054 July 2011 Cabinet Lekgotla Resolution to establish Business Development Forums in every district and to develop three CBVs per district Focus has been on process issues – specifically, engagement with stakeholders on the increased role of the private sector as the main drivers of LED and job creation at the local level. A number of engagements have been held with the private sector, some provinces and sector departments A partnership approach has been adopted to augment capacity. For instance, the GIZ is currently assisting with some work A request for funding has been prepared for submission to the DBSA’s Jobs Fund Partnership with GIZ and DBSA being formalised to drive this work TORs developed for the establishment of business development forums Concept document developed CBV criteria developed In some districts, it is not feasible to establish all four structures as conceptualised in the project plan due to different circumstances on the ground Some District Municipalities already have business forums in one form or another and the Dept. is exploring ways to tap into these Service providers with appropriate skills to be appointed Strategic Goal: To facilitate Economic Development at local level. Strategic Objective: To create jobs through a system supportive of Private Sectors Sustainable Employment at local level in all District Municipalities.

Background to the Project LGTAS  Facilitation and implementation of ward-based economic planning  Each ward to have at least one economic development product  Enhance the municipal contribution to job creation and sustainable livelihoods through Local Economic Development. LGTAS  Facilitation and implementation of ward-based economic planning  Each ward to have at least one economic development product  Enhance the municipal contribution to job creation and sustainable livelihoods through Local Economic Development. Outcome 9  Ward-based programmes to sustain livelihoods  As a ward-based programme – 30% of work opportunities created through CWP to be linked to functional cooperatives by 2014 Outcome 9  Ward-based programmes to sustain livelihoods  As a ward-based programme – 30% of work opportunities created through CWP to be linked to functional cooperatives by 2014 Ward Based Cooperatives Programme:  Driven by the objectives of economic empowerment, inclusivity and participation primarily targeted at the under-privileged, unemployed citizens at a grassroots (hence ‘ward’) level  Empowerment (social mobilisation) of communities with knowledge and information on cooperatives; training; access to markets and finances; mentoring and coaching until independent of state support  Partnership based approach: Working through an Implementing Agent

13 Progress-to-date  Project is being implemented through the services of the South African National Apex Cooperative (SANACO) - a registered apex co-operative, in terms of the Co-operatives Act, Act No. 14 of A member of NEDLAC representing all co-operatives  Providing the following services on behalf of the Dept: Social mobilisation; assistance with registration; facilitation of training; facilitation of access to markets and to finance.  To date, 520 cooperatives have been supported  Against an annual target of job opportunities created through cooperatives, to date, implementing agent reports – note, ‘job opportunities’ relates to assistance provided to cooperatives to help them become functional and seize opportunities available in the market  Challenges presently relate to capacity constraints in relation to the vastness of this projects: i.e. funding  Project is being implemented through the services of the South African National Apex Cooperative (SANACO) - a registered apex co-operative, in terms of the Co-operatives Act, Act No. 14 of A member of NEDLAC representing all co-operatives  Providing the following services on behalf of the Dept: Social mobilisation; assistance with registration; facilitation of training; facilitation of access to markets and to finance.  To date, 520 cooperatives have been supported  Against an annual target of job opportunities created through cooperatives, to date, implementing agent reports – note, ‘job opportunities’ relates to assistance provided to cooperatives to help them become functional and seize opportunities available in the market  Challenges presently relate to capacity constraints in relation to the vastness of this projects: i.e. funding

Thanks You!! 14