Browsing by Author "Houghton, Jennifer Alice."

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An analysis of the effectiveness of the Public Private Partnership (PPP) procurement process for tourism projects.
(2018) Chiliza, Sthabiso Hernold.; Houghton, Jennifer Alice.
Although the South African government has implemented a range of infrastructure delivery programs that have significantly increased access to services, large backlogs remain. Within the same context, National Treasury concedes that it would be wrong to assume that government can meet this challenge alone. The state is expected to complement its budgetary capacity with investment capital and the wealth of innovative and special skills available within the private sector, through public private partnerships. Two out of ten government entities, who applied to go through the public private partnership procurement process, reach the end of this process. This increasing failure rate of public private partnership procurement initiatives was the motivating factor to conducting this study. Therefore, the objective of the study was to evaluate the effectiveness of the public private partnership procurement process and to better understand the reasons for Treasury Approval Phases being passed or not passed with the intention of formulating more effective guidelines to assist in guiding organisations as they embark on this process. This was a qualitative study conducted among 36 participants who were managers and coordinators of tourism PPP projects within KwaZulu-Natal and Mpumalanga Provinces of South Africa. They were selected purposefully. There were individual interviews conducted and a focus group discussion consisting of twelve (12) people. Data was analysed thematically. This study revealed that there is an understanding of the meaning of the public private partnerships and of the theories that influence or should influence the process. However, the study further revealed that there are gaps with the implementation of the process. The guidelines provided through the Treasury Department, are unable to regulate the process to ensure that the stages are finalized timeously. The biggest challenge was with the project initiation stage. Gaps in managing the project initiation stage contribute to the reason why most organization struggle to proceed beyond the Treasury Approval 1 stage. Other areas identified as critical contributors to the failures within the process were capacity building on PPPs, ensuring that the enabling environment is ready for PPPs and the financial support for project facilitation process. The study concluded that the public private partnership procurement process is a very good policy tool that, if managed and structured correctly, can create many positive benefits. However, the gaps within the enabling environment and practice, renders it ineffective. Hence the proposed model’s focus on the PPP project initiation stage.
Conceptualisations and experiences of the presence of informal settlements into formal residential areas : a study of the residents in formal housing of the Clare Estate area, Durban, KwaZulu-Natal.
(2010) Nadasen, Naadira.; Houghton, Jennifer Alice.
Cities across the globe are characterised by inequality. Within South African cities the marginalised population has unequal access to certain resources and opportunities, one such resource that the research is centred upon is the access and occupation of land. Many South African formal residential neighbourhoods are characterised by their proximity to informal settlements. This is largely due to the fact that local government has not adequately addressed the issue of occupation and land; this is clearly evident in Clare Estate in which the study was undertaken. The thesis refers to literature that is critical of the notion of the ‘divided city’ concept and draws on other concepts such as justice, social inequalities, politics of space, sense of place and NIMBY to name but a few. The research adopted a quantitative and qualitative approach, where questionnaires and indepth interviews with relevant stakeholders structured the basis of the research, respectively. This thesis investigated the experiences and understandings of formal residents of Clare Estate, in regard to the informal settlement which is encroaching on their neighbourhood boundary. The majority of the formal residents were not satisfied with the presence of the informal settlers and requested the relocation of the informal settlements to another location. The thesis shows how the informal settlers have been stereotyped with negative images and therefore the formal community has socially excluded them. Furthermore, most formal residents interviewed emphasised that the presence of the informal settlements only attracted negative consequences, such as the increase in criminal activity, the hampering of social activities and the reduction of property values. In addition, this thesis reveals that there existed a strained relationship between the formal and informal communities in Clare Estate. It was also evident that the formal residents have attached a personal meaning to their residential area. This sense of place was seen to be threatened by the informal settlement in their neighbourhood. However, it should be stated that the local government authorities were re-addressing the issue of the encroachment of the informal settlement and there have been some attempts to relocate these settlements. Where the relocation initiative has not been successful, the government provided better building materials to the informal community to improve their housing situation in Clare Estate. However, this latter initiative was not accepted by the residents in formal housing who want the informal community ‘out’ of their residential area.
An examination of business perspectives on the role of Umhlosinga Development Agency as an economic development agency.
(2015) Mthimkhulu, Sinethemba Nkosinokwazi.; Houghton, Jennifer Alice.
Local Economic Development Agencies (LEDAs) are fast becoming the norm in South Africa and other developing countries. LEDAs have proven in many states to bring great development and rehabilitation in post-war time; hence their popularity and adoption in so many countries. However, despite their popularity, LEDAs are still imprecisely understood. This study documents the Umhlosinga Development Agency in Umkhanyakude district, situated in Northern KwaZulu-Natal in South Africa. The main aim of the study is to examine the business perspectives on the functionality of the Umhlosinga Development Agency as a mechanism for economic development. To address this, research questions included the extent to which local business is aware of the agency’s role; and to explore the relationship and communication chain between the agency, its parent district municipality and the business community. The study adopted a qualitative, interpretative research design. The sample consisted of the Umhlosinga Development Agency managers, district municipal, local municipal LED units and Mjindi Farming members. A total of 11 interviews were conducted, which were then transcribed, and thematically analysed. The findings show that the relationship between the district, the agency and the business community is not at its best but is a work in progress currently. The agency is constantly in search of funding as this seems to be a big barrier in reaching their objectives. None the less the actual objectives of the agency are still to be realised as many of the projects are in developmental phases. The perspectives of the business community reveal that the agency is slowly beginning to be understood by some of the local municipalities, and this has helped the agency in that their projects receive support from local stakeholders. However, where the agency has not yet undertaken projects in a particular area, the officials’ lacked knowledge of the role of the agency. This showed that the agency has not been marketed enough; in fact even at the very introductory phase of the agency there was little awareness on the then potential work of the agency within the district municipality. The communication chains are minimal, transmitted only where it was compulsory. However no communication existed at all between the agency and the community at the lowest level, despite having some interactions with Mjindi Farmers as an intermediary organisation and being a customer to the Mjindi farmers. With regards to the Public-Private-Partnership between the three stakeholder groups of government, business and the community, there seems to be a consensus on what the broader role of the agency should be. However, in practice, the roles of the agency are relatively different than anticipated by partners, because they are directly impacted by available resources and infrastructure and relationships between the stakeholders. Local Development Agencies are fairly new and the product of their work takes between five to ten years to be discernible. Umhlosinga was established in 2008 and cannot be seen to be any different from other Development Agencies. The agency has had some successes in contributing to Local Economic Development; one therefore can still remain optimistic on the current projects needing implementation. This however can only be obtained if a LEDA such as the Umhlosinga Development Agency works more collaboratively with local stakeholders and there is a constructive understanding between all partners in development that can be converted into practical actions.
An examination of the contribution of corporate social responsibility in a resource extraction industry to social sustainability: a case study of Lafarge Mining South Africa (Pty) Ltd and Ridgeview Quarry.
(2010) Nadasen, Naadiya.; Houghton, Jennifer Alice.
Corporate social responsibility is increasingly becoming an important component of the business world. With growing scrutiny of commercial operations, businesses are increasingly being driven to satisfy the expectations of society in order to thrive. In essence, businesses adopting corporate social responsibility believe that by operating ethically and responsibly, they have a better opportunity of success. This thesis examines Lafarge Mining South Africa and its Ridgeview Quarry located in Durban, South Africa, in order to assess the contribution to social sustainability of corporate social responsibility practices in the resource extraction industry. Literature used for this research is compiled from concepts such as sustainable development, social sustainability, social justice, public participation, vulnerability and well-being and furthermore evaluates conventional arguments for corporate social responsibility. The methodology used for this research was based on a qualitative approach, where both secondary and primary data were used. The empirical materials needed for this research was collected through in-depth interviews conducted with stakeholders involved within the social upliftment programmes as well as discussions forums. Furthermore, purposive sampling was used for this study, as the study was concerned with individuals involved with the discussion forum and the social responsibility programmes. The thesis investigates the nature of public participation in the discussion forum with respect to social sustainability. With regards to the discussion forum, meetings were held intermittently, on an ad hoc basis, therefore affecting the degree to which total social sustainability was achieved in the decision-making process. However, it was found that when meetings were convened that the discussion forum was inclusive and in no way discouraged any form of participation from the community, hence contributing to some form of social sustainability. The research encompassed aspects of evaluation research, whereby summative evaluation and impact evaluation was used to summarise information and examine the outcomes of the two corporate social responsibility initiatives, namely; the education-related and the skills-related social upliftment programmes. The research evaluated these two programmes, in order to assess the degree to which social sustain ability was achieved. However these initiatives are a small part of the broader corporate social responsibility agenda. The key findings of the research were that social sustainability was very weak. Minimal difficulties were experienced by participants in the education-related social upliftment programme, where one of the challenges was to uplift learners from grassroots level (primary school level). However, with regards to the skills-related social upliftment programme, individuals participating in the project, experienced more difficulties than compared to those participating within the education-related social upliftment programme. Difficulties that arose with regards to the skills-related social upliftment programme were that Lafarge Mining South Africa reneged on certain material promises and showed no interest in monitoring how the programme was facilitated. Furthermore, participation in the programme did not secure any employment opportunities for the women. Thus corporate social responsibility has become a major focus of interest in society. Corporate social responsibility is not just a buzzword for businesses, it has developed into an invaluable tool for exploring ways to reduce and manage social and bio-physical costs, as well as provide many businesses with the opportunity to be successful. However, achieving corporate sustainability is not an easy task and is accompanied by a number of challenges
An exploration of the conceptualisation and enactment of regional economic development through an analysis of the Durban aerotropolis in KwaZulu-Natal, South Africa.
(2017) Luthuli, Nomkhosi Hlengiwe.; Houghton, Jennifer Alice.
This study explores the conceptualisation and enactment of regional economic development (RED) through an analysis of the Durban Aerotropolis in KwaZulu-Natal, South Africa. The study is undertaken during a time where the process of globalisation is progressively increasing the importance of regional processes and the role of local actors in shaping development trajectories (Ascani, Crescenzi & Iammarino, 2012). These regional processes imply practical action going beyond the limits of traditional local economic initiatives (Amin, 1999) commonly referred to in the South African context and in other parts of the world as local economic development (LED). In this regard, the major problem prompting the enquiry in this study is the tendency of vagueness and ambiguity in the discourse of policy documents and government strategies relating to regionally inclined processes. More specifically, while the Durban Aerotropolis Strategy alludes to the impact of the Durban Aerotropolis on the development of the region and connecting regional economies, the conceptual vagueness of such allusions has consequences for both theoretical and empirical RED research as well as implications for economic development policy development and implementation. This calls for deconstruction of the relevant development discourse to provide a clearer conceptualisation of RED. The problems just mentioned are further compounded by a nomenclature shift in South African practitioner circles with incorporation of issues pertaining to the ‘region’ and associated difficulties, in what was hitherto confined to more specifically local issues of economic development. These difficulties relate to the way economic development practitioners proceed with their work in the absence of a context-specific conceptualisation of RED, coupled with lack of understanding of the nature of RED projects and of how they are implemented. To find solutions to these problems, the study examines the conceptualisation of the region inherent in RED through the Durban Aerotropolis. It seeks to understand the enactment of RED through collaborative and cooperative governance mechanisms and through agglomeration and clustering of business activity, and it explores coordinated investments for regional marketing within the Durban Aerotropolis. This was done using exploratory qualitative research within a social constructivist paradigm in which respondents were selected using a purposive sampling approach. The data was collected through in-depth, face-to-face interviews and analysed using a thematic analysis technique. The findings of the study reveal that function, form and scale are central characteristics of the way that the region is conceptualised in the case of the Durban Aerotropolis as an instance of RED. Here, function is the purpose of a RED project, form refers to the kind of economic development mechanism or strategy that could assist in fulfilling that purpose, and the scalar characteristics establish the extent, reach and magnitude of the project—factors that have a direct bearing on the practical enactment or implementation of RED projects. It also emerged from the study that regional conceptualisation should be done by the various stakeholders of the project who have a responsibility to see it succeed through collaborative and cooperative governance. Furthermore, RED enactment entails agglomeration and clustering of business activity which can be achieved by attracting people and investment. This, however, requires coordination of efforts for regional marketing in which stakeholders work on the competitive advantage of their region through development of infrastructure, skills development and capacity building, and provision of incentives. Overall, the study establishes that conceptualisation of RED entails defining the objectives of RED and that it precedes RED enactment. However, RED enactment requires two facilitative mechanisms which are collaborative and cooperative governance, together with coordinated investments and collaborative efforts for regional marketing – to achieve the desired outcome of RED, which is an agglomeration and cluster economy with its associated externalities. The study has thus contributed to the conceptual clarification of regionally inclined processes of the Durban Aerotropolis. This will subsequently assist in theoretical and empirical RED research as well as economic development policy development and implementation. The study will also help to establish clearer and simpler nomenclature shift and will impact the work of economic development practitioners by making provision for a context-specific conceptualisation of RED and will provide new knowledge that will add significantly to understanding of the nature of RED projects and their implementation.
The intricacies of local governance in local economic development : a case study of uThukela's traditional authority.
(2015) Mdlalose, Methembe Ziphozonke.; Houghton, Jennifer Alice.
The study investigated the role of traditional leadership in local economic development in contemporary South Africa. Utilizing the purposive sampling methodology, interviews were administered to the relevant participants in the uThukela District. LED Managers representing the six municipalities under the uThukela District were sampled alongside traditional leaders and respective mayors. The data collected was analysed by means of grounded theory analysis, which entails finding new meanings in the texts and linking the context into substantive formal literature. The research was motivated by the need for more literature on South Africa’s traditional leadership institution and its impact on development. Specific emphasis was placed on KwaZulu-Natal, which is a province crippled with a significant density of rural areas that have high indicators of unemployment and poverty and is therefore a good example to explore. The study further narrowed the scope, focusing on uThukela District; a region with a constituency in which three out of its five local municipalities are rural based, have an estimated unemployment rate of 68.5%, and also a ratio of 75% of the population residing in rural areas. The findings of this research therefore confirmed how relationships between traditional leaders and councillors affect progressive economic development in rural areas. The extensive need for the two to coexist in local government has been echoed by many; therefore the findings of this study will serve to inform whether developmental growth in rural areas requires active intervention from government in order to resolve the issues. Furthermore, the findings will hopefully contribute towards a better understanding of how the relationships between the two stakeholders impact economic development in rural areas.
Perspectives on emergency wealth distribution in South Africa's previously disadvantaged households: a systems thinking approach.
(2015) Musyoka, Jason Muthama.; Houghton, Jennifer Alice.
Abstract available in PDF file.
Renewable energy production as means for local economic development in eThekwini Municipality.
(2015) Radebe, Nokukhanya Thobeka.; Houghton, Jennifer Alice.
Given South Africa’s increasing demand for energy, insufficient generation capacity, dependence on imported oil, and sensitivity to global economic shocks, the need for renewable and sustainable energy systems is clear. The South African government recognizes that substantial opportunities exist for electricity and energy generation through the production and use of renewable energy resources. In recognizing that local authorities are primary agents for electricity service provision, the national treasury has committed to supporting local renewable energy programs. Renewable energy resources are widely seen as means to address the challenges of climate change and energy insecurity; and can be of key importance in the development of a sustainable society. Renewable energy resources can provide new economic opportunities, contribute to higher standards of living and reduce the impacts of society on ecosystems, among other things. South Africa is ranked as the country with the high potential for the use of renewables. Great pressure is placed on the national government to initiate a way of achieving greater economic growth as well as alleviating poverty. A mandate has therefore been given to local government to play a role in achieving this, Local economic development, a relatively new approach to development, is currently seen as a prominent strategy to tackle the problem of unemployment in South Africa. A literature review is thus presented in the study that addresses the different type’s renewable energy resources available and the links between local economic development and employment creation through renewable energy resources provision. The study used the Ecological Modernisation theory that can be used as a theoretical lens to examine the phenomenon of renewable energy adoption, it addresses the theoretical framework. An investigation into the background of the eThekwini Energy Office is provided and serves as a departure point from which to critically examine the ways in which renewable energy initiatives of the eThekwini Municipality contribute to local economic development. The findings address the ways in which renewable energy adoption can play a part in the reduction of greenhouse gas emissions. Furthermore, an assessment of renewable energy production is provided based on the results of the qualitative data analysis. Key Words: Local economic development, green economy, renewable energy, ecological modernisation.
The role of informal trading in economic development : the case study of Mtubatuba.
(2015) Khumalo, Sakhile Mandlenkosi Siyathokoza.; Houghton, Jennifer Alice.
This study assessed the role of informal trading in the economic development of small towns in KwaZulu-Natal’s local municipalities using the case study of Mtubatuba. The following objectives were crucial in reaching this aim; to assess the contribution of informal trading to the livelihoods of traders, to assess the role of informal trade in employment, to examine the relationship that exists between traders and local authorities and to examine the relationship between informal traders and formal businesses. The study used a mixed methods approach in order to obtain information from informal traders and municipal officials. In recent years, small towns in South Africa have become important hubs for service delivery and the economic activity involved in the receipt and processing of produce (Donaldson and Marais, 2012). As such these towns are viewed as critical to the implementation of the goals of South Africa’s developmental local government. In relation to this view, from a theoretical perspective, the established strand relates to the small town growth and development potential with the core theme of local economic development. In Mtubatuba informal trading has become an economic alternative for some community members. Informal trading is further supplemented by tourism as Mtubatuba is a tourism gateway to Ismangaliso Wetlands Park and Hluhluwe Umfolozi Game Reserve. The motivation for the study was thus to understand the role of informal trading in the economic development of small towns. In order to ensure optimal efficiency of informal businesses there is a need to understand the needs of informal traders and the contributions made by the informal sector in their lives. There is tremendous potential within the informal business sector for it to become a major role player in sustaining the livelihoods of many people, but the efficiency of these informal businesses needs to be improved by removing some of the constraints which hinder their functioning. These constraints include crime, transport, municipal service and abuse. This research therefore assesses the role played by informal trading in the economic development of small towns. In addition, the findings will be useful for local municipalities within small towns to fully comprehend the views of municipal officials and informal traders with regards to policies and practices, as well as their impact on enabling the development of small towns through the informal economy. Lastly, the research findings will enrich the knowledge base on informal trading in small towns and may be useful input into the development of a more sustainable regulatory approach to informal trading in small towns.
SMME access to funding: challenges experienced by SMMEs in uMzimkhulu Municipality.
(2015) Cele, Christopher Robert Thulani.; Houghton, Jennifer Alice.
The purpose of this study was to investigate whether or not the SMMEs in the area of rural UMzimkhulu Municipality do access funding from the banking institutions as well as other funding organisations, government and agencies. This research looked at the challenges they have in accessing the funding for both start-ups and business development. The research method used was qualitative and interviews conducted from a sample of SMMEs in UMzimkhulu. These challenges are viewed as possible reasons why most SMMEs are failing as a result of financial difficulties and therefore should be investigated. This kind of situation persists despite the available support by government who developed policies and strategies for support. As a result of these policies, development bodies such as DTI, SEDA and Khula enterprises and other government departments (Economic Development) in the provinces and locally (LED) to assist and give support to SMMEs. It is intended that the study of SMME challenges in relation to finance access will provide recommendations to improve their livelihood and life cycle of these businesses. The research findings highlight some of the challenges for SMMEs such as those of being unable to provide some of the requirements of funding bodies. Furthermore, the funding bodies were found to favour those businesses that were already doing well over smaller, fledgling or struggling businesses which required funding to continue their operations. The research also found that most SMMEs do not access funding that is available because they do not know of the funding available from government agencies and also because the offices for these institutions are based in big cities far away from them. The findings from this research can be used to assist in policy development and turn-around strategies in the funding of the SMME sector. It will also potentially contribute towards addressing the challenges faced by SMMEs in other rural areas as it will reflect challenges not only in UMzimkhulu but also similar rural areas. The research also highlights the recommendations and scope for further research.
Understanding the relationship between neoliberalism and the negotiation of urban development imperatives within public private partnerships in Durban.
(2010) Houghton, Jennifer Alice.; Scott, Dianne.
As neoliberalism has risen into ascendancy, cities have shifted their development approach, often in ways that produce problematic and heavily critiqued outcomes (Bond, 2005a; Leitner et al, 2007). In many instances, cities have taken on a development agenda characterised by the prioritisation of economic growth and improving the quality of life in cities (Pieterse, 2008). Thus, cities, often with limited resources and skills, face the challenge of negotiating between these imperatives. In this context, public private partnerships (PPPs) have emerged as a development mechanism through which local, redistributive, and global, economic, urban imperatives can be negotiated. Building on the theorisation of neoliberalism and urban development in the contemporary city, this thesis draws on the concepts of the ‘ordinary city’ (Amin and Graham, 1996; Robinson, 2002; 2006) and ‘entanglement’ (Sharp et al, 2000; Nuttall, 2009). The adoption of this theoretical approach facilitates an understanding of the relationship between neoliberalism and the negotiation of competing urban development imperatives in public private partnerships. This understanding is relational and freed from the constraints of developmentalist or global cities approaches, which have come to dominate theorisations of urban development. The empirical research concentrates on two public private partnerships in Durban, South Africa, namely; the Durban Growth Coalition and the eThekwini Municipality-Moreland Developments Joint Venture. These partnerships have produced significant interventions in the urban landscape since their inception in 1999 and 2002, respectively. In addition, the empirical investigation includes the Riverhorse Valley Business Estate and the Bridge City mixed use development. These projects have been implemented through the eThekwini Municipality-Moreland Developments Joint Venture. The empirical study predominantly relies on a qualitative analysis of semi-structured interviews with key stakeholders involved in these partnerships, their projects, and within the broader urban development arena of Durban. Documentary evidence and observation has further contributed to the empirical material examined in the research. The research findings reveal how actors in Durban enmesh and co-constitute the competing priorities of economic growth and post apartheid redress through a range of discourses. This discursive inter-relating of the imperatives produces their entanglement. In turn, this entanglement produces an ‘actually existing neoliberalism’ (Brenner and Theodore, 2002a). The form of this local version of neoliberalism is shown to be strongly shaped by the contingent conditions in Durban and the broader context of transition in South Africa. Furthermore, the examination of the two PPP projects brings to light the nuanced character of the ‘actually existing neoliberalism’ and how variably it is materialised within urban development. Through these findings, the thesis gives evidence of the active agency of places in the production of neoliberalism, and thereby challenges the assumption that cities, especially in the developing world, are simply passively responding to the global impulse of neoliberalism (Hart, 2002). As such, it responds to the need for new insight into how neoliberalism is produced at the local level, and addresses concerns for the lack of agency ascribed to cities in theorisations of neoliberalism (Larner, 2000, 2003; Brenner and Theodore, 2002a; Castree, 2005; 2006; Hart, 2002; 2006). Finally, conceptualisations of the binary relationship between the global and the local, and between competing urban development imperatives, are challenged (Hart, 2002).
Unlocking local economic development in the Ingonyama Trust Land through land scheme development. The case of Dududu, KZN.
(2015) Mzotho, Malusi Cyril-Innocent.; Houghton, Jennifer Alice.
The purpose of this study was to investigate a land development system that is most appropriate for unlocking LED potential in the Ingonyama Trust Land for the community at Dududu Village. The land under the Ingonyama Trust Board administration holds huge potential in unlocking Local Economic Development in the rural areas. However, it is believed that the lack of both tenure security and access to Ingonyama Trust Land has been the barrier of economic and social development for rural areas within the Ugu District. What prompted the study was the fact that there had been very little research conducted around the area of Dududu as to why the LED focused projects in the area are not implemented. The common challenge that was usually given during the IDP development process was the issue of land security and availability. Furthermore, there were many feasibility studies that had been conducted in the area but projects were never implemented because of the unavailability of land, even though they have proven to be feasible. The majority of the land in Dududu falls under the Ingonyama Trust Land and with the feasibility studies proving LED projects viable, the issue of land as a driver of LED needed further investigation. The theoretical approach of the research is based on three broad theories which are namely, Local Economic Development, Land Tenure and Traditional Leadership. The qualitative methodology approach was employed and purposive sampling was used. Sixteen, in-depth, face-to-face interviews were conducted with respondents from the Traditional Authority, Government Sector, Community and Business Community. Data was analysed through the application of thematic analysis. The key findings indicated the challenges faced when it comes to land development and control in rural / traditional areas and recommendations of the options that are available to mitigate these challenges were made. The key findings have been grouped into eight themes which are namely; land potential in Dududu; access to Ingonyama Trust land; land tenure security; administration of Ingonyama Trust land funds; indigenous land use management in Ingonyama Trust Land; the land use management system and getting the community involved; key stakeholders and responsibilities; and stimulating local economic development in Ingonyama Trust land.
The use of strategic partnerships as the driver of local economic development (LED) : a case study of the eThekwini Municipality and Shanduka Black Umbrellas (SBU) partnership.
(2016) Ngcobo, Nhlanhla Floyd.; Musyoka, Jason Muthama.; Houghton, Jennifer Alice.
This research examines the use of strategic partnerships or public-private partnerships (PPPs) as a driver of Local Economic Development (LED). The main objective of this study was to understand the role of partnerships in SMME related LED, to understand the effectiveness of the partnership between the eThekwini municipality and Shanduka Black Umbrellas (SBU) on SMME related LED. The specific goals were to determine the role of LED partnerships in creating employment and developing skills for SMMEs and to examine the level of sustainability of LED partnerships using the case of the eThekwini Municipality and SBU partnerships. The objectives of the study were operationalized within the broad Public-Private Partnership (PPP) discourse. This framework gave currency to the study in that in South Africa PPPs are legislated and used by all the three spheres of government. The study premises from the fact that eThekwini municipality entered into a plethora of strategic partnerships (PPPs) with a number of private sector companies with the purpose of promoting SMMEs and LED with the SBU forming part of the private sector stakeholders. The dissertation then looked at the role played by the partnership between the eThekwini Municipality and the SBU in LED. The study used qualitative research method where in depth interviews were conducted among participants consisting of senior managers drawn from the eThekwini Municipality and the SBU and six beneficiaries from the SBU. The study found that public-private partnerships do play a key pivotal role in LED and therefore recommends more public-private partnerships. Relationships provide support to SMMEs and SMMEs gain from the programs that are derived from relationships. The study also found that partnerships grow SMME turnover and help in instilling confidence. SMMEs grow and gain strength from partnerships. Partnerships also provide job creation and provide business support. The study also found that partnerships provide capacity building, business linkages, skills development and other LED related benefits to SMMEs.