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 -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?

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 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

13

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!!

14