presentation by the department of cooperative governance to the portfolio committee on cooperative...
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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
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Post -2005 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?
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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
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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.
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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
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“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]
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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
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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
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Performance Indicator Reporting Period Annual Target2011/12
2nd Quarter (July-September) 2011
Target Actual
6.14 Number of Advisory Councils
established
Biannually 10 5 3
6.15 Number of Catalytic Business Ventures (CBVs) supported
Biannually 10 5 4
• 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 ProjectBackground 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’) levelEmpowerment (social mobilisation) of communities with knowledge and information on cooperatives; training; access to markets and finances; mentoring and coaching until independent of state supportPartnership based approach: Working through an Implementing Agent
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Progress-to-dateProgress-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 2005. 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 6 317 job opportunities created
through cooperatives, to date, implementing agent reports 4 480 – 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 2005. 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 6 317 job opportunities created
through cooperatives, to date, implementing agent reports 4 480 – 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!!
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