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

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

3. 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

4. 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

5. 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).

6. 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

7. 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

8. 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.

9. 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

10. 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

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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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.

20. 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