Interrogating the challenges of the Local Economic Development (LED) as an instrument of poverty alleviation, in the case of eThekwini Municipality, KwaZulu-Natal, South Africa.

Abstract

The study focused in interrogating the challenges of the Local Economic Development as an instrument for poverty alleviation in eThekwini municipality. LED serves as an engine for economic development and contributes to economic growth in the local economy. The eThekwini municipality is the economic centre of its residents and the people as far as in Zimbabwe and Mozambique. However, the municipality is challenged to put in place effective LED programmes that could alleviate poverty. This is worsened by the failure of the local economy to attract investment and create employment opportunities. The study followed a qualitative research methodology wherein keywords were used to identify and select Integral Development Plans (IDPs) from the eThekwini municipality also, articles that already exist in the public domain were used as to give meaning to the study. Additionally, the study utilized the interpretive research approach to interpret data collected from the secondary sources. The study finds the eThekwini municipality to have well-structured LED programmes however, ineffective to address poverty issues. The failure of the LED programmes to address socioeconomic challenges in eThekwini municipality was discovered to be due to poor leadership, corruption, the lack of community integration to LED initiatives and political affiliations. Indepth understanding and support of the municipal leadership in championing municipality’s LED trajectory has been discovered to be important for the LED programs to achieve positive outcomes. Key recommendations of the study include the involvement of communities and other key stakeholders to the LED projects, rooting out of corruption in the municipality, training, capacity and development, and appointing credible personnel to govern the eThekwini municipality. Through such engagements, much needed financial investment could be attracted resulting to the eThekwini municipality becoming a financial zone in which the residents could benefit from. Additionally, the multiple effects could be the creation of employment opportunities which could be essential in the alleviation of poverty in the municipality. Furthermore, it could also, promote skills development and socio-economic driven developmental programs that intends to combat poverty. The LED initiatives in the eThekwini municipality could be effective through the involvement of key stakeholders to participate in the LED programs. One of the key recommendations of the study is appointing credible personnel to govern the eThekwini municipality. This could promote accountability, proper planning of LED projects and good governance. Additionally, would benefit the community. The oversight structures such as the Corporative Governance and Traditional Affairs could also, play a vital role by holding the municipality executives accountable and ensures that the community benefit from the LED initiatives. The study also, recommends that it rest upon the community to hold the municipality accountable.