Page 59 - Research Report 2025.1

Local Economic Development (LED) Policies
Local Economic Development (LED) policies are recognised as essential for sustaining rural livelihoods by promoting the growth of small and medium enterprises (SMMEs). These policies aim to diversify income sources, increase employment opportunities, and build local economies that are more resilient to external shocks, such as economic downturns or natural disasters:
Participant 5 emphasised the existence of LED policies, which are designed to support SMMEs, especially during times of economic stress. This reflects an effort by local governments to ensure that rural communities have sustainable business models and can recover quickly from disasters or crises.
Participant 6 mentioned specific policy frameworks like the
informal trading policy and SMME development policy, which
recognise the critical role of informal economies in rural settings.
The informal sector comprising street vendors, small traders, and
local artisans represents a significant portion of economic activity
in rural areas, and these policies aim to formalise and support this
sector. Participant 7 emphasised the importance of developing
local economic nodes, such as causal precincts and secondary urban centers, to foster regional development. These urban nodes are intended to create economic hubs that bring services, markets, and employment opportunities closer to rural populations.
The findings highlight a disconnect between the availability of policies and the understanding of these policies among rural communities, which poses a significant challenge to effective implementation. Participant 4 pointed out that while policies are accessible through municipal websites and council offices, they are often not written in local languages. This creates a language barrier that prevents many rural residents from fully comprehending the information, especially in areas where literacy levels are
low and communities rely heavily on oral traditions or community leaders for information dissemination.
Moreover, Participant 1 expressed concern that many rural residents are unaware of the support services they are entitled to under existing policies. For instance, municipal business support services, which assist rural entrepreneurs in registering businesses or accessing funding, are often underutilised because the information is not effectively reaching those who need it most. This lack of awareness prevents communities from benefiting from
resources designed to foster economic resilience and disaster preparedness.
This gap in policy dissemination and public awareness has critical implications for the implementation of disaster management and local economic development (LED) policies. If communities are unaware of their rights or the resources available to them, they cannot take full advantage of disaster management plans or economic development initiatives. The lack of knowledge about disaster preparedness further exacerbates rural communities’ vulnerability to natural disasters and economic downturns, leaving them more exposed to potential crises.
The findings also show that various policies aimed at disaster management and local economic development exist at both municipal and district levels. Participant 1 and Participant 4 confirmed the presence of a disaster response strategy and a recently reviewed disaster management plan, which emphasise the importance of structured responses to crises. Participant 2 noted that the disaster management framework is available online and adopted by the council, providing a platform for rapid intervention during disasters. Similarly, Participant 5 discussed Local Economic Development (LED) policies that target small and medium enterprises (SMMEs), recognizing their essential role in supporting rural livelihoods.
These policies indicate a structured approach to both disaster response and economic development. However, despite their availability, issues of accessibility and awareness remain prevalent, particularly among rural populations. Participant 4 pointed out that while policies are accessible, they are not always written in local languages, which significantly limits public engagement and the ability to fully benefit from these policies.
Participant 5
“There are LED policies that are around that support SMMEs, especially during times of distress.”
Participant 6
“We have LED plan, how to develop this community economical. we have, informal trading policy. Starting with the people that sell on the street. Because the econ my starts with the people that sell apples. We have Formal trading policy that talks to about recognizing as the institution as government. Because our economy depends on informal people. The saloons. The people that cook on the street. We also have SMMEs development policy.”
Participant 7
“Local economic development policy, develop causal precinct, and develop secondary urban nodes...Monitored by council and reviewed annually.”
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