Local Economic Development, Phase I


SECO is supporting a local economic development programme in selected municipalities in South Africa located in the Kwa-Zulu Natal Province.

Country/region Topic Period Budget
South Africa
Economic and financial policy
Sustainable trade
Private sector and entrepreneurship
Urban infrastructure and utilities
01.01.2013 - 31.12.2023
CHF  7’253’000
Background

Local governments in South Africa face huge challenges in providing the necessary framework conditions conducive to local economic activity. Such framework conditions include a transparent and predictable legal, regulatory and tax environment as much as infrastructure and social services. Unless these framework conditions are in place, local businesses cannot develop to create jobs and income needed to increase opportunities and quality of life for all inhabitants.

Objectives

The overall objective of the program is to contribute to sustainable growth, through the strengthening of economic framework conditions that should allow the creation of more, better and more inclusive employment and income generating opportunities in South Africa's Ilembe District. All of SECO/WE's four operational teams are involved, as follows: i) WEMU for the component on public finance management- ii) WEIN for the municipal infrastructure component- iii) WEIF for the private sector development component and iv) WEHU for the component on value chain development. This allows for a concerted, integrated and coordinated approach to Local Economic Development.

Medium-term outcomes

Private sector: 1.Improved business environment- 2.Enhanced access to finance- 3.Improved access to business & technical skills.

Infrastructure: 1.Reduced infrastructure constraints (improved scope & quality of basic infrastructure services)- 2. Increased planning capacity & financing strategies for an integrated & systematic expansion of urban infrastructure- 3.Enhanced planning & management of key infrastructure sectors.

PFM: 1.Empowered municipal councils with robust PFM oversight functions- 2.Increased revenue mobilization- 3.Improved budgeting for capital investment & maintenance of assets- 4.Legal, transparent & efficient management of procurement processes.

Value chain: 1.Integrated SMEs into selected value chains/clusters- 2.More productive (reduced waste & inefficiencies)- 3.More eco-efficient (reduced water & carbon footprint)- 4.Produce better quality products- 5.Engage in more sustainable business practices- 6.Comply with inter-/national standards and buyer requirements.

Results

Expected results:  

Private sector: 1.Elaboration of sub-national Doing Business Report&action plan- 2.Design of a access to finance project- 3.Mapping of Business Development Services Providers- 4.Identification of accessible support options for SMEs- 5.Test&piloting approaches development of tailored technical skills.

Infrastructure: 1.Established asset management plans&robust registers&life cycle costing- 2. Established Growth&Development Strategy- 3.Established investment master plans for water,electricity,solid waste management&roads- 4.Finalized feasibility study for innovative green infrastructure.

PFM: 1.Improved in-year budget formats- 2.joint audit unit established&officials trained- 3.joint call center for account queries- 4.special rating areas established- 5.trained treasury, budet&procurement officers.

Value chain: 1.Formalized collaborative ventures&joint actions- 2.Improvement plans prepared- 3.Market studies&marketing capacities developed- 4.Institutional capacity assessments prepared.


Directorate/federal office responsible SECO
Credit area Development cooperation
Project partners Contract partner
  • Foreign Consultants
  • Konsulententeam LED


Budget Current phase Swiss budget CHF    7’253’000 Swiss disbursement to date CHF    0 Budget inclusive project partner CHF    8’453’000
Project phases Phase 1 01.01.2013 - 31.12.2023   (Current phase)