The municipality has not yet managed to package and implement high impact programmes with a capacity to create and attract strategic investments. The review of the LED Strategy is expected to undertake a detailed research and analysis on key areas namely, rural development and industrialization, niche tourism, promotion and marketing, agricultural development, SMME’S and informal economy. The review should then identify the challenges and opportunities that will culminate to a credible and implementable strategic plan with suggested intervention areas; programs and most importantly identify catalytic projects that will transform the municipal’s economic landscape.
It is against this backdrop that Jozini Municipality appointed NANGA Development Consultants (Pty) Ltd to review its LED Strategy. The review will include a detailed analysis as prescribed by the terms of reference.
LED Functionality and Capacity
REVIEW OF LED STRATEGY
The municipality has appointed a service provider to review and develop a comprehensive LED Strategy. The LED Strategy is expected to present a detailed research and analysis on key areas namely, rural development and industrialization, niche tourism, promotion and marketing, agricultural development, SMME’S and informal economy. The LED is expected to identify the challenges and opportunities that will culminate to a credible and implementable strategic plan with suggested intervention areas; programs and most importantly identify catalytic projects that will transform the municipal’s economic landscape. The review of this strategy is expected to take one year from the day of appointment.
LED / SECTOR SPECIFIC FORUMS
An LED forum is a group with representatives from local stakeholder groups working together to utilise their intimate knowledge of the area in proposing developments. It is involved in the actual development and implementation of LED and liaises with the broader community through various sub‐forum clusters.
Currently there is no LED Forum in Jozini. However, there is a Business Chamber of Commerce. The business chamber of commerce is a group / society comprising of aspiring as well as established businesses within Jozini. It comprises of several members from different sectors of the economy. The chamber plays the role of advising the municipality on what to do to foster business conditions. The chamber also advises / updates its members on legislation as well as business opportunities available.
In terms of the LED Forum, the municipality has developed the terms of reference (TOR) for the LED Forum. The forum will be developed during the LED Review process. The LED forum will provide an external mechanism for the implementation, monitoring and evaluation of the Jozini LED Strategy. A functional LED forum will facilitate integrated mobilisation of capacity (technical skills, time, etc.) and resources (human, financial, etc.) that may be leveraged in the implementation of the LED strategy. Furthermore, stakeholders that make up the LED forum will perform an oversight function geared towards monitoring and evaluating success in achievement of the goals and vision of the LED strategy. The LED forum will thus serve as a useful platform from which the development process may be driven forward through meaningful interaction between relevant stakeholders.
- It is anticipated that the LED forum will support:
- The retention and growth of existing businesses,
- The development of new businesses,
- Inflows of investment to the area,
- The deployment and management of infrastructure and resources in key economic sectors,
- Implementation of LED through the provision of strategic management in line with the TOR,
- The fostering of cooperation and coordination towards the sharing of strategies, priorities, activities and information with various stakeholders (municipal departments, other municipalities, within the forum and with service providers).
MUNICIPAL PARTICIPATION IN DISTRICT FORUMS
The HOD and LED Manager attend to all LED meetings that are organized by the district. The municipality through the Municipal Manager and the Mayor do participate in various LED and other business forums that are organized by the district.
Policy / Regulatory Environment and Alignment
ALIGNMENT WITH PGDS AND DGDP STRATEGIC GOALS
The Municipal LED Strategy understands and acknowledges the key national and provincial
policies. To ensure alignment with these key policy / regulatory environment, various
programs and projects have been identified and are in the process of being implemented to
meet the goals and objectives of these policies. The table below reflects the key PGDS and
DGDP goals applicable / relevant to the LED with associated programs / intervention /
projects that have been or will be initiated to achieve the goals.
Core and Enabling Pillars of the National Framework on LED
The National Framework presents the following five pillars for sustainable Local Economic Development. These pillars are as follows:
- Building a Diverse Economic Base
- Developing Learning and Skilful Local Economies
- Developing Inclusive Economies
- Enterprise Development and Support
- Economic Governance and Infrastructure
These pillars are deconstructed and explain in the figure below:
Informal Economy Policy / Informal Trading Policy
The municipality has an adopted Informal Economy Policy that manages and supervises operation street vendors operating within the municipal jurisdiction.
The informal economy provides a form of livelihood to the poor and makes an important contribution to the economic and social life of residents in Jozini Municipality. The informal economy in Jozini is diverse, ranging from street traders and shebeen owners to child careers and domestic workers. It is often characterized by its flexibility, creativity, resilience to absorb shocks, and its ability to adapt to changing external environments. This activity is quite widespread and accounts for a significant proportion of the employment and income of the municipality.
The retail facilities in Jozini CBD play a significant role in promoting small business development and prevention of leakage of buying power to neighboring towns. The services of the informal economy in Jozini not only address selling of food and beverages but also extend to tertiary services such as plumbing and catering. The issue of lack of finance and appropriate business skills hinder entrepreneurs from developing their businesses into fully-fledged formal operations.
The issues affecting our informal traders and strategies to enhance their performance and participation in the municipal economy is documented in in details in the informal traders’ strategy.
EPWP Policy
The municipality has developed an EPWP policy that is aligned with EPWP phase 3. The EPWP Policy was adopted by Council in June 2020.
Business Retention Strategy
Currently the municipality does not have a Business Retention Strategy and a budget to develop one. As alluded earlier, the municipality has appointed a service provider that is currently busy reviewing the municipal LED Strategy. The LED Strategy will amongst its scope of work identify the need for the strategy and recommend allocation of the budget for the development of the strategy.
The Green Economy
A green economy is an economy that aims at reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment. It is closely related with ecological economics. The Jozini Recycling Centre is one of the green economy initiatives that is currently operational. The centre is used for recycling and is a source of job creation opportunities, particularly the youth. Other green economy initiatives that the municipality intends to encourage and promote within the municipal area are, renewable source of energy and rain water harvesting, to mention but a few. The LED Strategy that is being reviewed will identify and package all potential or feasible green economy projects and initiatives around Jozini Municipality.
Red Tape Reduction / Ease of Doing Business
Restrictive legislative and regulation conditions are considered critical impediments to business growth and development. Stringent regulations often harm businesses in particular, emerging enterprises. There has been a cry across the province that the current business regulations are not conducive for business growth. Similarly, spatial planning processes such as SPLUMA is considered be expensive and a slow and lengthy process. This discourages or causes a decline of new business entrants into the municipal economy. The SPLUMA processes is beyond the municipal capacity since it involves several other government departments. However, the municipality is planning to restructure this process by engaging and encouraging other departments to hasten the process should an application reach their desks. Political influence will be key in actualizing this process.
Potential Employment / Job Creation
Job creation is done through EPWP and LED projects.
The municipality also has a ward upliftment programme which contributes to job creation.
EPWP INDICATORS
- The EPWP is implemented in all 20 wards (23 wards after the Local Government Elections (LGE)
- The number of Jobs created through the programme is 290
- The reference group as a coordinating body is in place and it sits once a month
- Capacity building initiatives to participants are done as to meet some of the objectives for the programme
Mobilization of Private Sector Resources
The municipality has developed an investment and promotion strategy and it was approved in May 2019. This strategy will assist the municipality with initiatives that will attract private investors, etc.
SWOT Analysis
