The assessment of the local economic development agency as a trade and investment enabler in iLembe District.

Abstract

Below optimum trade and investment levels are core economic aspects which negatively affect KwaZulu Natal communities and municipalities. In iLembe District Municipality, Enterprise iLembe is the Local Economic Development Agency tasked with the mandate of enabling and promoting trade and investment. There are concerns that Enterprise iLembe is nor performing its mandate satisfactorily. This study investigate how effective Enterprise iLembe has been in enabling trade and investment in ILembe District. Qualitative and quantitative interviews were conducted to obtain information and evaluate Enterprise iLembe in terms of trade and investment promotion, its challenges and what should be done to improve. The results showed that Enterprise iLembe was working to create and enabling environment by engaging all concerned parties, marketing and forming partnership. To some extent Enterprise iLembe is successful in being a trade and investment enabler. Several external factor, chief among them political interference and lack of funds has been identified as limiting Enterprise iLembe in achieving its mandate. However, there are key flaws in how Enterprise ILembe operates. The staff at Enterprise iLembe is not adequately informed on the mandate and policy guiding Enterprise ILembe hence some become ineffective. Interview results seemed to lack uniformity of information levels, thus pointing to poor communication or general employee ignorance, both have negative outcome on performance. The interviewer after probing in the qualitative interviews, failed to get a pro-active plan of action to tackle the problems facing Enterprise iLembe. The recommendations for Enterprise iLembe are that it should adopt a more pro-active approach and best practices of Local Economic Development Agency practises should be benchmarked against developed countries. Furthermore, Enterprise iLembe should be more empowered as sometimes, it is given a mandate without the financial and political resources to deliver on the mandate. The findings of this study is not only beneficial and applicable to the case study institution, but to all District Municipalities, Development Agencies and public sector institution.