Analysis of rural local economic development in the Mthonjaneni local municipality.

Abstract

Local government has a constitutional mandate to promote social and economic development for its citizens within the available financial capacity. The sphere of local government is therefore charged with the responsibility of influencing the shape and direction of local economic development (LED) in its area if the government in general is to attain the national objectives and service delivery targets aimed at creating more job opportunities and eliminating poverty. Effective and constructive local economic development initiatives are needed especially in rural areas to deal with unemployment and poverty that have an adverse effect on society. The rural people of Mthonjaneni Municipality are also affected by these socio-economic challenges hence the study analyses the municipality’s role and capability in assisting its communities. The study indicates that with the advent of democracy people within all communities of South Africa wish to see evidence of local government changing their lives for better through LED projects. This expectation becomes a challenge and a perfect opportunity for local government to make meaningful impact by developing LED strategies aimed at improving the standard of living for its citizens. The LED strategy is a locally driven process through which all LED stakeholders work to create a conducive and sustainable environment that enhance economic stability. The research looks at the concept of rural LED as defined by many scholars and investigate its implementation with the Mthonjaneni Municipality as well as the impact it has on its community. The study provides a background of the Mthonjaneni Municipality by looking at the demographic factors and its geographic location; the current state of rural LED in the municipality together with any other future LED initiatives. Further, by using qualitative research methods, the study analyses whether rural LED initiatives especially municipal funded projects, are successful in alleviating poverty in the Mthonjaneni Municipality. The study established that there are gaps requiring special attention by the Mthonjaneni Municipality in terms of deploying more financial and human capital resources.