A critical assessment of how local municipalities implement local economic development: case studies of Bergrivier and Cape Agulhas local municipalities

dc.contributor.advisorNaidoo, Vinothan
dc.contributor.authorModise, Keabetswe Charmyne
dc.date.accessioned2026-01-06T07:30:19Z
dc.date.available2026-01-06T07:30:19Z
dc.date.issued2025
dc.date.updated2026-01-06T07:23:30Z
dc.description.abstractLocal Economic Development (LED) has been instrumental in the restructuring and transformation of local government in South Africa's new democratic dispensation. LED facilitates the process through which municipalities could achieve the ‘developmental' role they acquired to tackle socio-economic issues such as unemployment, inequality, and poverty. Despite its prominence in various legislative and policy frameworks, municipalities in small towns and semi-rural areas face several challenges in implementing LED initiatives. This study presents a comparative analysis of LED implementation between Bergrivier Local Municipality and Cape Agulhas Local Municipality located in the Western Cape province. The study evaluated internal and external factors influencing the design and implementation of LED strategies. The comparison focused on institutional arrangements, intergovernmental relations, access to resources, and community engagement. Additionally, the research critically assessed the institutional capacity, political commitment and stakeholder involvement which shapes the roll out of LED strategies. Although both municipalities operated in accordance with the prevailing legislative frameworks governing LED, they differed noticeably in their governance structure, collaborative governance, and stakeholder engagement. As a result, the implementation modalities for LED varied, and were shaped by municipality's socio-economic circumstances, operational structure, and resource availability. Therefore, LM 1 has an LED unit with limited capacity, and primarily focus on coordination with national and provincial frameworks. The unit face obstacles with institutional and systemic barriers, resulting in a delicate cross-governmental collaboration, and ineffective participatory approach. This is further aggravated by growing unemployment rate and limited proficiency. On the other hand, LM 2 have a more targeted approach. The municipality benefits from its integrated LED and Tourism unit and pursues local initiatives such as SMME support and mentorship. Also, the municipality showed a more collaborative approach, integrating with the district municipality. Besides, the LM2 recently restructured its governance structure and anticipates improved approaches effectively implement LED strategies and create jobs. The study findings revealed that the intuitional capacity, stakeholder engagement and distribution of resources, plays a pivotal role in shaping the effectiveness of LED. The study suggests that both municipalities should refine their LED strategies with well-defined objectives, realistic financial plans, and sustainable LED principles. Each municipality has the potential to strengthen their institutional capacity, improve stakeholder engagement, and implement strong financial and monitoring frameworks, to ensure effective LED implementation.
dc.identifier.apacitationModise, K. C. (2025). <i>A critical assessment of how local municipalities implement local economic development: case studies of Bergrivier and Cape Agulhas local municipalities</i>. (). University of Cape Town ,Faculty of Humanities ,Department of Political Studies. Retrieved from http://hdl.handle.net/11427/42494en_ZA
dc.identifier.chicagocitationModise, Keabetswe Charmyne. <i>"A critical assessment of how local municipalities implement local economic development: case studies of Bergrivier and Cape Agulhas local municipalities."</i> ., University of Cape Town ,Faculty of Humanities ,Department of Political Studies, 2025. http://hdl.handle.net/11427/42494en_ZA
dc.identifier.citationModise, K.C. 2025. A critical assessment of how local municipalities implement local economic development: case studies of Bergrivier and Cape Agulhas local municipalities. . University of Cape Town ,Faculty of Humanities ,Department of Political Studies. http://hdl.handle.net/11427/42494en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Modise, Keabetswe Charmyne AB - Local Economic Development (LED) has been instrumental in the restructuring and transformation of local government in South Africa's new democratic dispensation. LED facilitates the process through which municipalities could achieve the ‘developmental' role they acquired to tackle socio-economic issues such as unemployment, inequality, and poverty. Despite its prominence in various legislative and policy frameworks, municipalities in small towns and semi-rural areas face several challenges in implementing LED initiatives. This study presents a comparative analysis of LED implementation between Bergrivier Local Municipality and Cape Agulhas Local Municipality located in the Western Cape province. The study evaluated internal and external factors influencing the design and implementation of LED strategies. The comparison focused on institutional arrangements, intergovernmental relations, access to resources, and community engagement. Additionally, the research critically assessed the institutional capacity, political commitment and stakeholder involvement which shapes the roll out of LED strategies. Although both municipalities operated in accordance with the prevailing legislative frameworks governing LED, they differed noticeably in their governance structure, collaborative governance, and stakeholder engagement. As a result, the implementation modalities for LED varied, and were shaped by municipality's socio-economic circumstances, operational structure, and resource availability. Therefore, LM 1 has an LED unit with limited capacity, and primarily focus on coordination with national and provincial frameworks. The unit face obstacles with institutional and systemic barriers, resulting in a delicate cross-governmental collaboration, and ineffective participatory approach. This is further aggravated by growing unemployment rate and limited proficiency. On the other hand, LM 2 have a more targeted approach. The municipality benefits from its integrated LED and Tourism unit and pursues local initiatives such as SMME support and mentorship. Also, the municipality showed a more collaborative approach, integrating with the district municipality. Besides, the LM2 recently restructured its governance structure and anticipates improved approaches effectively implement LED strategies and create jobs. The study findings revealed that the intuitional capacity, stakeholder engagement and distribution of resources, plays a pivotal role in shaping the effectiveness of LED. The study suggests that both municipalities should refine their LED strategies with well-defined objectives, realistic financial plans, and sustainable LED principles. Each municipality has the potential to strengthen their institutional capacity, improve stakeholder engagement, and implement strong financial and monitoring frameworks, to ensure effective LED implementation. DA - 2025 DB - OpenUCT DP - University of Cape Town KW - Cape Agulhas KW - Western Cape LK - https://open.uct.ac.za PB - University of Cape Town PY - 2025 T1 - A critical assessment of how local municipalities implement local economic development: case studies of Bergrivier and Cape Agulhas local municipalities TI - A critical assessment of how local municipalities implement local economic development: case studies of Bergrivier and Cape Agulhas local municipalities UR - http://hdl.handle.net/11427/42494 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/42494
dc.identifier.vancouvercitationModise KC. A critical assessment of how local municipalities implement local economic development: case studies of Bergrivier and Cape Agulhas local municipalities. []. University of Cape Town ,Faculty of Humanities ,Department of Political Studies, 2025 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/42494en_ZA
dc.language.isoen
dc.language.rfc3066eng
dc.publisher.departmentDepartment of Political Studies
dc.publisher.facultyFaculty of Humanities
dc.publisher.institutionUniversity of Cape Town
dc.subjectCape Agulhas
dc.subjectWestern Cape
dc.titleA critical assessment of how local municipalities implement local economic development: case studies of Bergrivier and Cape Agulhas local municipalities
dc.typeThesis / Dissertation
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMasters
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