The Gijima KZN Local Economic Development Support Programme, embodying our partnership with the European Union, has made significant progress towards stimulating economic development. Since the last LED Conference, almost all of the grant funds available (R162-million) have been committed to 197 projects. The Local Competitiveness Fund is fully subscribed while there is R11-million that remains in the Business Enabling Fund. This will be absorbed in a final call for proposals next year – should the EU agree.

The programme has leveraged over R80-million in co-funding from the private and public sectors. The excellent partnership we have had with all our stakeholders, especially the commercial banks, district municipalities and the business sector, has enabled the leveraging of co-funding.

With regard to the Local Competitiveness Fund Implementation, more than 3 000 sustainable jobs and 7 000 temporary jobs will be created directly, excluding any multipliers.

The programme has enabled the development of a pipeline of LED projects through the use of the grant instruments. The emphasis in the Business Enabling Fund and Local Competitiveness Fund has enabled many different groups to engage in detailed planning for their projects. It is expected that many of these projects will be seeking implementation funding or finance in the open market place.

We are currently examining the future of Gijima KZN in terms of its continuation and sustainability after the European Unions funds have been exhausted. Proposals on the modalities regarding its future form and resources required are currently being prepared. It is expected that a revised programme will be ready for implementation in the 2009/2010 financial year.

Contact the KwaZulu-Natal Department of Economic Development:
Boyce Mntambo, Manager for Information & Communication Technology

Postal address:
Private Bag X001
Bishopsgate
4008

Physical address:
270 Jabu Ndlovu Street
Pietermaritzburg
3201

Tel.: +27 33 264 2500
Fax: +27 86 679 6404
Email: mntambob@kznded.gov.za

Website: www.kznded.gov.za