Thapelo Matlala

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PROVINCIAL LED STRATEGY (TILS PERSPECTIVE)

Thapelo Matlala Manager Municipal Capacity
Building Trade and Investment Limpopo
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PREAMBLE

• Derived from the objectives of Limpopo Growth
  and Development strategy as reviewed and adopted
  in Oct 2004 where cluster development was
  recognized as a key component for future
  industrial development in Limpopo.
• Section 153 of the Constitution Act of 1996
  stipulates that Municipalities are to promote
  local economic development in their areas of
  jurisdiction.
• The Municipal Systems Act of 2000 requires local
  authorities to develop Integrated Development
  Plans of which LED is a key component.
• The Municipality Structures Act of 2000
  delineates the structures governing
  municipalities with authority to initiate
  development activities.
• A White paper on local government make it
  mandatory for municipalities to develop a
  coherent infrastructure investment plan with
  targets through mobilizing public and privaTe
  funding for capital expenditure.

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LED INVESTMENT MARKETING PERSPECTIVE

• Key performance Areas
• Derived from micro-economic reform strategy
  (MERS) adopted by national government
• Economic Growth
• Employment creation
• Competitiveness
• Broad based empowerment
• Appropriate geographic spread of economic
  activity

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LED INVESTMENT MARKETING PERSPECTIVE

• MERS focuses on identified input sectors as well
  as growth sectors
• Input sectors will focus on better macro-economic
  planning to ensure more appropriate and targeted
  investment projects across district
  municipalities. These investments will mainly be
  into infrastructure for water provision, energy,
  transport and telecommunications.
• Growth sectors will be on further enhancement
  in performing sectors, within the competitive
  advantages of the province, agro- business,
  mining, tourism as well as service sectors.
• Both the input and growth sectors will be
  integrated within the value chain development
  efforts and are critical success factors
  of emerging clusters

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LED DEFINITION
Local Economic Development (LED) is the process
by which public, business and nongovernmental
sector partners work collectively to create
better conditions for economic growth and
employment generation. The aim is to improve the
quality of life for all (The World Bank)
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TILs STRATEGIC OBJECTIVES

• Seek increased added value from existing and new
  projects
• Increase the Limpopo added value content of
  exported products
• Create sustainable new jobs and maintain
  existing jobs
• Increase equity and black economic empowerment
• Create a competitive environment in Limpopo
  through improved capacity and by removing
  obstacles to competitiveness

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LED STRATEGIC OBJECTIVES

• Seeking to improve the business environment in
  local government spheres through constantly
  applying tailor- made solutions to existing and
  potential investors
• Reducing costs for doing business through
  facilitating and introducing appropriate
  measures
• Seeking to facilitate establishment of vibrant
  and sustainable local enterprises
• Integrating IDP investments projects into
  provincial clusters
• Creating capacity for further value chain
  analysis and development along provincial
  clusters
• Sustainable job creation and retention
• Broad Black Economic Empowerment

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TIL LED STRATEGY

• Creating a framework for cooperation in
  mobilising resources and expertise towards
  implementation of provincial as well as IDP
  identified flagship projects.
• Local business promotion and facilitation of
  enterprise development through working closely
  with relevant key-players within the municipal
  spheres
• Assisting in image building and branding
  initiatives
• Integrating provincial LED initiatives to EU-LED
  funding schemes

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TIL LED STRATEGY

• Identifying projects which would result in major
  economic impact in terms of job creation, equity
  and investment within IDPs.
• Facilitating access to wide range of funding
  options available in the financial sector
  including grants.
• Assisting with creating capacity for selected
  projects to meet the required funding criteria.
• Create capacity for value chain analysis and
  development within emerging clusters
  in municipalities.

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• Fostering public-private partnerships through
  mobilisation of key players in the local
  municipalities and facilitating access to
  funding for infrastructure development projects.

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BETTER LED SERVICE DELIVERY

• Strengthening institutional and strategic
  planning framework for LED to take place
• Increasing local ownership through participation
  of LED stakeholders
• Improving Business environment via incentives for
  investment and removing obstacles
• Providing more effective delivery to SMMEs
• Developing capacity of government to effectively
  facilitate LED

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IMPROVE BUSINESS ENVIRONMENT

• introduce incentives for business development
• remove administrative barriers
• improve access to land and buildings for biz dev
  
• improve regulatory requirements, transparency and
  practices for SMME development
• improve access and dissemination of information
  on local economic development
• Establish closer linkages with the private
  sector
• Link LED plans and activities with the activities
  of the Municipal Infrastructure Grant

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CAPACITY BUILDING

• Strengthen the capacity of municipalities to
  support local economic development through such
  activities such as
• Training LED officers and other target groups to
  improve understanding of LED as a core function
  of municipalities
• Training of municipal cadre and LED officers on
  Human resources development, organization, Budget
  and Project Management
• Creating a more effective integration of LED unit
  into the Municipal activities

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BETTER LED SERVICE DELIVERY

• Improve access to information on biz
  opportunities
• Strengthen biz support services
• Promote and support development of biz
  incubators, industrial parks, processing zones.

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TARGET GROUP WHO CAN APPLY?

• Provincial Government
• District Government
• Local Municipalities
• Government entities and para statals supporting
  economic development
• Economic Development Agencies

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WHAT CAN FUNDS CAN BE USED FOR?

• Research
• Technical Assistance
• Training study tours
• Twinning projects with EU municipalities
• Limited capital expenditure
• Project management costs

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RECOMMENDED ACTION PLAN

• Need for integrated approach for key players
  within the three spheres of government including
  related parastatals at national and provincial
  level towards
• Facilitating the development of standardised LED
  strategies at each of the 32 district and local
  municipalities under pinned by the following
  recommended building blocks
• Prioritizing projects within clusters with huge
  potential for economic impact in terms of job
  creation and local wealth creation and retention
• Identifying and mobilizing resources and
  expertise towards implementation of priority
  projects

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RECOMMENDED ACTION PLAN

• Creating investor friendly environment within the
  municipal sphere with vibrant image building and
  branding campaigns
• Integrating IDPs and LED strategies to the
  objectives and strategies of the PGDS (Clusters)
• Through the EU-LED funding programme, increase
  awareness around investment opportunities arising
  from provincial structures
• Facilitating access to EU-LED funding programmes
• Adopt at least one-mega project for each
  municipality