The Ministry and the Department of Provincial and Local Government (the dplg), in partnership with the Business Trust, officially launched a local economic development framework under the theme 'Stimulating and Developing Sustainable Local Economies' in Boksburg, Gauteng, in October 2007.

At an Indaba on Shared Economic Growth Partnerships for the Presidential Nodes, the Minister for Provincial and Local Government, Sydney Mufamadi, alongside the Chief Executive Officer of the Business Trust, Brian Whittaker, introduced economic profiles that are aimed at addressing intelligence issues on economic challenges in nodal municipalities. 
Although government has recorded significant progress with regard to development, particularly in the nodal areas, challenges continue to persist in removing poverty and creating employment.
 
'According to the impact assessment studies conducted in 2006/7, the Urban Renewal Programme and Integrated Sustainable Rural Development Programme have contributed significantly to the fast-tracking of service delivery and changing the lives of the people for the better' said Minister Mufamadi.

The economic profiles of the 21 nodal municipalities will provide government and business with the opportunity to create an environment for the development of local economies. Minister Mufamadi explained that the economic profiles being launched would provide the necessary ingredients for success. 'They give us a sense of how these rural and urban nodes feature in the national spatial perspective,' he added.

The Minister acknowledged the input and contribution of the Business Trust and the business community at large for their effort in developing local economies. He noted that the shared growth perspective for local economies can only be made possible through a wide spectrum of stakeholders. This is not limited to local municipalities but trans-local and regional actors as well. He called on government, its agencies and business to see these economic profiles as a mobilising instrument that will help bring together government-wide resources and direct them towards the achievement of the goal of sustainable service delivery and economic development. 

The Director-General of the dplg, Ms Lindiwe Msengana-Ndlela, acknowledged the role of partnerships in the development of communities and their local economies. 'In the context of economic development, good governance entails effective partnerships between and within communities, the civic and non-governmental sector, the business sector, government and other local key actors in order to achieve stated development outcomes,' said Msengana-Ndlela, and then went on to add, 'Government is but one of the important actors in development.'

This initiative is intended to introduce a fresh economic development dimension to urban renewal and rural development. It is envisaged that the success of this initiative should provide a platform and a model for application in other parts of the country that face similar development dynamics and challenges such as those in the identified nodes.

Contact the dplg

Tel: +27 12 334 0600
Fax: +27 12 334 0603