The performance of Local Economic Development (LED) offices located at district and local municipalities has been woefully inadequate. Some of the reasons I have identified for this are as follows:
- Confusion and lack of clarity between the mandates of the district and local municipalities leading to duplication and poor execution of projects
- Severe lack of capacity in departments
- Over-reliance on external service providers to conceive and manage projects
- Little advantage taken in comparative and competitive advantages when designing projects
Municipalities are at the heart of local economies, through their provision of basic services, collection of rates and taxes, and their management of by-laws and enforcement of regulations.
Efficient mining and analyses of their databases should enable them to identify and design effective projects and programmes to enhance LED. What we find instead is an attempt to duplicate projects from other localities – much of this a result of the ‘cut and paste’ mentality that has been utilised by consultants.
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What is needed is a dramatic change in mind-set that:
- Identifies that LED is a cross-cutting discipline that needs to be factored into every activity of the local authority
- Requires local government structures to take ownership of LED activities and provide capacity and resources to enhance the functioning of departments
- Needs stakeholder partnerships to created and leveraged
The face of LED can be transformed in our district if local authorities acknowledge the failings of the past, and redefine their approach, taking into account some of the suggestions proposed above.

After matriculating, Vijay Naidoo studied Economics in the UK. Upon his return, hejoined the family construction business as MD for 10 years.
He subsequently joined his sister in their furniture manufacturing business as director for quality assurance and operations. He was responsible for all quality aspects of their products, and led the project to the business achieving an ISO 9000 quality accreditation. As an export focused business, this was important for our international competitiveness.
Mr Naidoo has an abiding interest in quality management and productivity improvement, particularly in manufacturing.
More recently, he has focused a lot of his time on giving back to the community by way of mentorship of small businesses and sitting on the executive of the South Coast Chamber of Commerce. He also sits on the Board of the Ugu South Coast Development Agency.
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