The challenges facing the implementation of local economic development programmes: a case study of the Great Kei Local Municipality

In this study, Local Economic Development (LED) is defined as an outcome of processes aimed at building the capacity of local areas for sustainable economic development. The study intended to investigate the challenges faced by Eastern Cape municipalities in implementing the LED programme. A sample of ten participants was drawn from two LED projects. The sample was distributed evenly with five beneficiaries per LED project. Data was collected using qualitative research methods through questionnaires. The sampling technique used was purposive to enable the researcher to select specific beneficiaries from each project and to allow the LED official responsible for each project to participate in the study. Budgetary constraints and staff shortages were identified as the main challenges facing the Great Kei Local Municipality. These two challenges have made it difficult for the municipality to implement proficiently LED programmes that are meant to effectively eradicate poverty and create employment. It is therefore recommended that the municipality should form partnerships with the private sector to boost the local economy by way of cooperative delivery of services, funding of projects and the supplementing of the municipal budget. The private enterprise/sector in an economy includes all large, medium, small and micro-enterprises (SMMEs). For example, large mining companies and factories as well the smallest spaza shop or stall at a taxi rank are part of private enterprise in a local economy. Whilst regulating such companies by way of licenses and taxes to raise national revenue, the government has limited control in the determination of how these enterprises are run. The result of such partnerships between the municipality and private sector will hopefully be the realisation of “a better life for all” as local people will be employed through investment promotion