1. German – South African BDS / LED programme German - South African BDS / LED programme Some Innovations in the field of Local Economic Development

2. German – South African BDS / LED programme Challenges Lack of conceptual clarity Actors and their roles Capacity and competence Institutional support arrangements Implementation

3. German – South African BDS / LED programme Our strategy Introduce efficient, effective and low-cost system/approach to empower local municipalities to start LED processes

4. German – South African BDS / LED programme Strategy elements Intensive policy dialogue (contribution to the development of an LED Policy) Capacity training (in co-operation with InWENT) Development of a private sector led support structure to municipalities via commercial LED facilitators Introduction of tools and instruments, such as PACA (Participatory Appraisal of Competitive Advantages), Genesis, the Hexagon as an action planning tool, to mobilise stakeholders, to assess the competitive advantages of their locality and develop and implement action plans.

5. German – South African BDS / LED programme Innovation 1: market development of LED facilitation services as low cost support to municipalities Qualification of South African LED experts and facilitators (including a PPP initiative) Developing a network of LED experts, jointly refining concepts, instruments Marketing the LED facilitators to municipalities (municipalities requesting support have to finance South African facilitation input 100%)

6. German – South African BDS / LED programme Role of LED facilitators Initiate and accompany the process, carry out economic quick scans, identify opportunities, develop and sequence actions, access finance, develop appropriate organizational structures and clarify roles and responsibilities. link local initiatives to regional or national initiatives, agencies (such as the Development Bank of South Africa) and funds where appropriate.

7. German – South African BDS / LED programme Principles… Reduction of complexity Use what is there – no parallel structures Bottom up Subsidiarity principle Low cost

8. German – South African BDS / LED programme Principles Demand driven (LED is intrinsically opportunistic) Rapid intervention with sustainable impact Focus on opportunities rather than barriers Market driven Organic growth Empowering

9. German – South African BDS / LED programme LED Implementation Instruments PACA GENESIS HEXAGON as an action learning tool

10. German – South African BDS / LED programme Participatory Appraisal of Competitive Advantage (PACA) Refferred to as a Bottom-up LED approach Participatory and opportunity focused End objective is a series of activities by local actors towards the growth of the local economy. Can support existing LED strategy of local stakeholders, or can mobilise towards new approaches Strenghts: Very fast, very visible, high involvement & impact Weakness: Does not include formal research –Could be isolated if not linked to regional priorities –Limited geographic area, –Does not create a broader vision or strategy behind which all stakeholders can align themselves

11. German – South African BDS / LED programme Genesis Strategic LED approach Involves Local / District government, business and the community Combines research studies and participatory planning Identifies key LED projects (catalysts for growth) Addresses institutional arrangements with regard to key projects Overarching LED strategy as a result Strengths: Address planning, economic environment and vision. Creates a good framework for development Weakness: Takes too long –No visible or fast results –Focused on planning, not on implementation

12. German – South African BDS / LED programme Combining PACA, Genesis Combining PACA and GENESIS will allow for an integrated development approach at local level –Builds a common vision, mobilises towards opportunities Addresses top-down (strategic, planning, institutional arrangements) Addresses bottom-up (local action, fast, highly visible) Local stakeholder mobilisation Addressing key bottlenecks Identifying big and small opportunities Project / Activity management and co-ordination

13. German – South African BDS / LED programme Some Results The instruments and the private sector led LED facilitation approach received a lot of attention as a possibility to go beyond policy and strategy discussion and actually start implementation processes. Demand from Local and District Municipalities is increasing. Demand for cooperation with and technical input into DFID and EU Programmes. (Examples:EU inserted PACA into its tender documents for three large provincial LED programmes, GTZ IS in final round of tender. BDS-LED Programme, DFID and EU partner for the third Province).

14. German – South African BDS / LED programme GTZ BDS / LED programme Gabriele Trah - trah@gtzpsdp.co.zatrah@gtzpsdp.co.za Shawn Cunningham - cunningham@gtzpsdp.co.zacunningham@gtzpsdp.co.za