The increasing realization that macroeconomic policies and approaches are limited when addressing grassroots developmental imperatives has placed local economic development (LED) at the center of local strategies to stimulate development (Khumalo, 2014; Nel and Rogerson, 2016; Khambule, 2019). Despite its potential role in local development, LED strategies in South Africa have been criticized for being inadequately resourced due to lack of political will (Chomane and Biljohn, 2023; Khomo et al., 2025). Despite this observation by many scholars over the years, there has not been a solid improvement in the status quo, necessitating further investigation into why this is so. The geographic location of the study is the West Rand City Municipality in the Gauteng province of South Africa. The geographic scope is of interest, as the country bears the notorious record of being the most unequal in the world (World Population Review, 2025). Furthermore, the depletion of mineral resources, which are key for the local economy, has worsened unemployment levels in the area, necessitating alternative economic activities to boost the local economy. The inequalities in the main follow race, gender, and age (Khumalo, 2014). The country's apartheid history largely accounts for racial inequalities despite the post-apartheid government's efforts to address this.

It is important to note that while South Africa tops the list of unequal countries, Southern African countries such as Namibia, Zimbabwe, Botswana, Eswatini, Zambia, Angola, and Mozambique, along with two other Global South countries, Brazil and Colombia, make up the top 10 unequal countries in the world (World Population Review, 2025). An effective LED may provide a possible avenue of lessening these high levels of inequalities by focusing on locality and partnership as drivers for socio-economic development.

This study is a derivative of a broader and ongoing community engagement work where academics learn about and work with communities to find solutions to societal challenges. Previous publications from the project covered issues of waste management, one of which looked at the assessment of contributions of informal small business to environmental pollution in the Rand West City Municipality (Hlongwane et al., 2025). The focus of the engagement is co-designed by the researchers and is guided by what the community deem to be their primary concerns that are within the academic expertise of the researchers. The ongoing project seeks to address four key objectives, which include establishing the types of LED initiatives in the municipality, dissecting their levels of effectiveness, establishing the nature of support provided to LED initiatives, assessing limitations and challenges facing LED, and proposing innovative ways to support LED initiatives. This paper therefore covers part of the broader objectives, which are to evaluate the extent to which LED initiatives are supported and their place and importance in the locality. It seeks to unravel some of the limitations and hindrances to the success of LED in the municipality. Furthermore, the study seeks to underline the importance of sustainable resource management in the pursuit of LED. The economic background of the area is presented in order to underline the justification and the significance of the study. The job losses in the surrounding mines and the already high unemployment rate, especially among the youth and women, amplify the need to strengthen the LED contribution to the economy of the area.

Over the years, sustainability in all its facets has grown to be an important aspect of development and has found expression in the global pacts on sustainable development goals. This study emboldens the need to ensure that in strengthening the LED contribution, the role players should consciously ensure safe and just utilization of local resources such as arable land. In other words, sustainable resource management should form part of strategic considerations in the implementation of LED. The overall goal is to have a people-owned model of LED support that considers the prevailing socio-economic and other environmental realities of the locality.

It is important to briefly look at the contextual factors of the study area, as it has a bearing on the nature of LED. Some LED challenges are also linked to the particulars of the municipality (Rand West City Local Municipality, 2024).

The Rand West City Local Municipality (RWCLM) is a Category B municipality (Department of Cooperative Governance Traditional Affairs, 2020) in the West Rand District, one of six in Gauteng province, comprising the cities of Randfontein and Westonaria, together with the adjacent residential neighborhoods, mining villages, and privately owned farms. According to 2021 Statistics South Africa, the RWCLM is home to an estimated 300,890 people (Statistics South Africa, 2021). Unemployment is at 24% and mostly affects the youth population, which is the largest population group within the RWCLM.

Mining is the primary economic sector, while business and government services are the secondary sector. Additionally, manufacturing has a significant impact on the economy. One of the key issues facing South Africa is unemployment. The West Rand economy experienced a recession in 2018, resulting in a 1.4% decrease in growth from 2017. The slowdown in economic expansion was due to a decline in mining production (Rand West City Local Municipality, 2023a). In 2018, the mining industry, which accounts for around 30% of West Rand's economic activity, shrank by 8%. The drop in mining production was the cause of the slowdown in economic expansion. Manufacturing and construction output also decreased. This situation suggests that there is a need to support LED to counter the decline in the performance of key sectors of the municipality's economy. The depletion of the mineral resources necessitates a clear socio-economic plan to promote alternative sectors to provide work to those who lose their jobs in the mining sector, and LED has the potential of being that alternative.

According to the West Rand District Municipality, WRDM 23/24 integrated development plan (IDP), the West Rand labor market lost a significant number of jobs in 2019 as economic conditions deteriorated [West Rand District Municipality (WRDM), 2023]. The number of employed persons declined by 4% (12,476 workers). This increased the district's official unemployment rate to 32.3%, up 3.1 percentage points from the figure in 2018. Other metrics of labor market health reveal that employment circumstances in West Rand have deteriorated over time. The labor absorption rate, which measures the proportion of the working-age population that is employed, fell from 51.6% in 2018 to 48.2% in 2019.

It is legally obligatory for municipalities to have IDPs to pursue LED. The main objective of the Spatial Planning and Land Use Management Act 16 of 2013 (SPLUMA), for example, is to give all branches of government a framework for establishing planning and land use management policies and processes. Effective land development, social inclusion, economic growth, and minimal impact on natural resources, the environment, and public health are the goals of the single land use management plan that all municipalities must approve and implement starting 1 July 2015 (Dykes Van Heerden Group of Companies, 2020).

The Rand West City Municipality is legally compelled to promote social and economic development in its area of jurisdiction as outlined in the objectives of the Constitution of the Republic of South Africa (Act 108 of 1996). Section 152(1) and other national policies and programmes guide municipalities to effectively implement LED initiatives such as the National Framework for Local Economic Development 2018–2028. This programme seeks to promote community access to economic initiatives, support programmes and provide information for the coordination of economic development planning and implementation across government and between key role players (Cogta, 2011). The Local Government Municipal Systems Act 2000, Section 26(c), further specifies that the IDP of a local municipality must contain its LED aims (Republic of South Africa, 2000).

The IDP should also address sustainable resource management, incorporating environmental as well as other aspects of sustainability. This is addressed by ensuring that water infrastructure and waste management systems are enhanced to ensure environmental protection and service delivery [West Rand District Municipality (WRDM), 2023]. Second, the support and promotion of small, medium, and micro enterprises has to be anchored by energy efficiency, and there is a drive to diversify energy sources by investing in renewable sources. Third, the municipality has a responsibility to protect agriculture and the conservation of natural resources, and this has a bearing on the approaches followed in optimizing land use.

Figure 1 shows the regional context of the study area within Gauteng province, while Figure 2 depicts the spatial development framework of the municipality, which shows the main economic activities including mining, industrial, and agriculture.

In this section, theoretical perspectives on LED are presented. This literature review section broadly encapsulates literature on the following: LED support its coordination, the challenges and limitations in implementing LED, and possible solutions to address the identified challenges. The thematic literature review presentation provides an international perspective, capturing important lessons from selected case studies.

LED has emerged as a cornerstone of global development initiatives, particularly as countries aim to empower communities, alleviate poverty, and promote inclusive prosperity (Khumalo, 2013). In light of this, Enaifoghe and Durokifa (2023) suggest that effective LED can minimize inequities between wealthy and poor communities, increase the number of locally produced jobs, strengthen local businesses, boost confidence in the local economy, and promote coherence in the local development strategy. LED is generally seen as a solution to a myriad challenges, including the improvement of quality of life, unemployment, and poverty (Khumalo, 2014; Blakely and Leigh, 2009).

Khambule (2019) defines LED as the sum of all economic activities within a specific geographical area, undertaken by all the relevant parties toward the creation of economic development and betterment of the standard of living of all who reside in the area (cf. Mensah et al., 2018). Abutabenjeh et al. (2022) describe LED as the use of resources available to a government to create wealth. Abutabenjeh et al. (2022) further describe economic development, promoted by local governments, as the means through which individuals' standard of living is improved at a lower cost through innovative ways. Ivonchyk (2022) emphasizes that business expansion in a local community has the potential to result in increased employment and production, which may stimulate economic growth. This could lead to “positive spillover effects such as improved income, higher property values and tax revenues and potentially more capital infusion” (Ivonchyk, 2022, p. 94).

LED is considered to be an important catalyst for the inclusion of communities in economic activities, especially those communities that were previously marginalized, in the South African context. Its prominence rose as a result of the failure of top-down strategies to resolve local needs and address local economic hurdles (Rogerson, 2018).

In theorizing about LED, Malizia et al. (2021) identify four approaches: industrial recruitment, small business development, industrial clusters, and the creative class. The recruitment approach covers efforts to make the local area attractive for industries and more competitive to draw business investments into the locality with the related effect of job creation. The target has been manufacturing undertakings that have made a big contribution to LED (Malizia et al., 2021). Small business development and expansion strategies entail inward-looking business promotion where the support of local ventures or factories is a key driver for job creation (Malizia et al., 2021). Industrial clusters are the third approach. This approach involves drawing internationally competitive industries, which in turn attracts a group of interrelated companies (Malizia et al., 2021). This approach's effectiveness is hinged on strategic economic development planning. The fourth aspect of LED is known as the creative approach. According to Malizia et al. (2021), this is informed by the urban and regional theory originally advanced by James Stuart in 1776. The logic of this approach is that populations follow employment. Creative class also entails the strategy of “talent attraction” to carry out industry recruitment and development. In practice all the strategies are employed to various extents.

It is worth noting that urban and regional theory has undergone significant shifts to address the limitations of Western-centric frameworks when applied to the Global South context such as post-apartheid South Africa and informal economies (de Santos, 2006). Scholars such as Watson (2016) have noted the necessary shift from adopting unrevised neoliberal models to a context-considerate approach and adapting these to the peculiar realities of South Africa. This is possible through a participative approach which then captures both growth and pro-poor imperatives (Khumalo, 2014). Considering this, Enaifoghe and Durokifa (2023) definition is a brief synopsis of the preceding research; their perspective is that LED is a process in which local governments and community-based organizations collaborate to develop or maintain economic activities and jobs.

Xaba and Jili (2024) note that the success of LED projects in countries such as South Africa has been scant and unsustainable over time. Accordingly, Khambule (2019) is of the view that the challenge of LED funding is “the most under-researched area of LED in South Africa,” especially when it comes to the role that LED agencies (LEDAs) can play in tackling the issue of deficiencies in development finance. The study by Khambule found that there are systematic challenges that face municipalities hindering the successful implementation of LED and that LEDAs are inadequately funded by district municipalities. Furthermore, there is a lack of cooperation between local and district municipalities to fund LEDAs. This quagmire is a setback in strengthening the capacity of LEDAs.

One of the challenges of LED at a global scale is the lack of consensus on the approaches and theories that inform its practice (Enaifoghe and Durokifa, 2023). This should, however, be understood on the grounds of the importance of context in the promotion of LED. Different countries have unique advantages and disadvantages; for example, most Southern African countries will gravitate toward a pro-poor LED approach to bridge the huge inequalities as presented at the opening of this article. Within the same countries, different subnational areas will present with unique features that give them a competitive edge in one area that is different from the next. Rogerson (2018) observes the success of cluster-based LED approaches in Germany with thriving biotech in cities like Munich and successful automotive in Stuttgart. One of the observable strengths of Germany is the strong partnerships between industry, government, and academia (Rogerson, 2018).

The Palestinian LED success story is anchored on a cooperative model that provides opportunities for informal workers and underserved communities. The challenges impacting this Palestinian experience are inadequacies in institutional capacities and governance fractures [International Labour Organisation (ILO), 2023]. An inevitable challenge for Palestinian LED is the instability due to the ongoing conflict with Israel.

One case comparable to South Africa is the Philippines, where Mphahlele (2024) records that decentralization has given the local authorities tailored approaches to local needs. Public–private partnerships have been forged in sectors including agriculture, ICT, and tourism. However, the challenges impeding its success are the disparities across regions in terms of capacity and resources (Mphahlele, 2024).

In consonance with the Philippine experience, Khambule (2019) argues that although LED programmes could play a significant role in addressing the challenges within communities (Shava and Hofisi, 2019), capacity constraints within the local sphere of government and a lack of understanding of LED initiatives have led to the failure of LED programmes. Similarly, Chomane and Biljohn (2023, p. 2) point out that the lack of capacity in municipalities manifests itself in the form of inadequate skilled officials that must, among other duties, carry out economic analysis in municipal areas to provide the necessary insights for decision-making in LED. Such analysis, which is imperative for strategic planning for LED initiatives, includes trends on the economy and forecasting thereof and population and labor force trends. Chomane and Biljohn (2023:2) further point out that LED initiatives do not seem to be adequately funded in municipalities. It is concerning, however, that these LED challenges are not a new phenomenon, as scholars such as Nel (2001), Nel and Rogerson (2005), Rogerson (2010), and Khumalo and Thakhathi (2012) articulated similar challenges in their writings more than a decade ago. Perhaps Malizia et al. (2021) articulation helps with the appreciation of this enduring LED handicap as they aver that within LED processes, problems are resolved and not solved. What the authors imply by this statement is that the LED process is ongoing such that when solutions are found to problems and circumstances change, this gives rise to new problems that require new solutions. LEDAs were thus established to address challenges that impede LED and to attract investment in communities. Khambule (2019) lists the following as issues that LEDAs must address in South Africa:

Abutabenjeh et al. (2022) endorse the use of the following to measure LED: quality of life, as measured through a country's per capita income, and job creation, through which the necessary resources to raise people's standard of living can be provided. The impact of LED interventions should thus be measured through the improved living standards of people in local communities. Denhardt and Catlaw (2015) describe new public management (NPM) as “a global management revolution” (Denhardt and Catlaw, 2015, p. 155), which has impacted most governments. At the core of NPM is the use of private sector management styles in the public sector. This entails, along with other activities, the decentralization of provision of services from national to local government and the enhancement of accountability (Denhardt and Catlaw, 2015). Similarly, Abutabenjeh et al. (2022) assert that NPM borrows solutions that have worked in the private sector and applies them to the public sector. Included among these solutions are decentralization, public–private partnerships, and competition. Abutabenjeh et al. (2022) thus highlight the importance of innovative technological solutions within the context of NPM (cf. Phan et al., 2020). Xaba and Jili (2024) list the following as solutions to the challenges around LED:

Munzhedzi and Makwwmbere (2019) emphasize the importance of good governance in LED, arguing that when there is good governance, resources can be deployed for the benefit of communities.

Makhavhu et al. (2022) offer the following solutions in addressing bottlenecks in and around the implementation of LED: linking with partners who have access to resources and capacitating officials in municipalities with the necessary skills to promote LED.

From the presented literature it is apparent that the successful implementation of LED initiatives is incumbent on various stakeholders working together to achieve a common goal. These stakeholders include local communities, government, private businesses, and NGOs. The roles of these stakeholders can be explained using the network and co-production theories. These theories are described below.

Figure 3 illustrates the theoretical underpinning of the paper; that is, the network theory and co-production outcomes at local government to achieve LED. Malecki (2018) posits that economic development is a complex process, often involving many role players such as the private sector and various spheres of government. Malecki (2018) further emphasizes the important role played by the government in creating a conducive environment for businesses to thrive, such as through adequate policies. Therefore, economic growth and development take place through the interactions of businesses, local government, and other stakeholders at local, regional, and national levels. Poocharoen and Ting (2015) highlight that studies on “collaboration, co-production and networks” have largely emerged from the United Kingdom and that these studies have also started to emerge from the United States of America. The current study is located in Africa and aims to contribute to the literature on networks and co-production from an African perspective.

Poocharoen and Ting (2015) posit that the study of collaborative management concerns itself with the processes of facilitating multi-organizational arrangements that aim to solve challenges that would otherwise not be solved by a single institution. Brix et al. (2020) highlight that “the changing role of citizens from clients or customers to co-producers greatly affects how present and future local governments will be designed, redesigned, and managed” (p. 169). Poocharoen and Ting (2015) therefore describe co-production as a collaboration between various stakeholders such as the public sector, community members, and NGOs in the production and consumption of public services. Similarly, Mitlin and Bartlett (2018) emphasize that co-production is based on the notion that the government alone cannot succeed in the provision of good-quality services and that inputs are required from users of such services, who have an important role to play in determining the final outcomes of the services. However, Vanleene et al. (2020) caution that the extent to which citizens as co-producers are willing to take part in the co-production of public services, as well as the extent to which they cooperate with the so-called street-level bureaucrats, determines the success or otherwise of the co-production.

Uster et al. (2025) refer to inter-organizational networks that comprise local government, NGOs, members of the public, and private companies as having taken up an important role in the delivery of public services. Combining the resources, skills, and capacities of these stakeholders has the potential to improve service delivery. Deliberative and networking democracy theories thus regard citizens as equal partners within the networks. Pike et al. (2015) refer to the important role played by institutions in economic growth. Pike et al. clarify that, within LED, both formal and informal institutions have an important role to play. The former is responsible for the system of governance, while the latter includes cooperative work between the public and private sectors. It is therefore important to understand these roles in the implementation of LED initiatives. Kim et al. (2019) refer to “interlocal economic development networks,” which are regarded as conduits for economic development efforts. It is therefore apparent from the literature and the theoretical discussion that the success of LED initiatives hinges on various stakeholders co-producing within networks.

The context of the local sphere of government in South Africa is narrated in chapter seven of the Constitution of the Republic of South Africa (RSA), 1996. The chapter outlines, among other things, the objectives of local government. One such objective is the promotion of social and economic development (Republic of South Africa, 1996). Chomane and Biljohn (2023, p. 2) highlight that LED initiatives should be pro-poor and ought to support informal, small, medium, and micro businesses as well as local tourism. Pro-poor LED initiatives must implement regulatory frameworks aimed at reducing poverty through creating jobs. Mashamaite and Lethoko (2018, p. 122) emphasize that it is not the role of government to create jobs. The role of government is to create a conducive environment and support for businesses to thrive (Department of Provincial Local Government, 2006). The role of local government in this regard is the development and implementation of policies and frameworks to support the success of LED. Similarly, Kim et al. (2019) state that the local government's primary role in economic development matters centers on its policies, which are a cornerstone for growth and development.

In this regard, South Africa's national Department of Cooperative Governance is tasked with overseeing and coordinating the implementation of LED initiatives in municipalities. In 2018, the department published a 10-year (2018–2028) national framework for LED. The framework provides a vision toward planning and implementing LED in South Africa. The framework emphasizes the importance of intergovernmental coordination between all stakeholders in achieving the goals of the LED framework, which are to harness the potential of local economies such that their growth has a meaningful impact on the growth of the national economy as well as to stimulate decent employment for residents (Department of Cooperative Governance and Traditional Affairs, 2018). As far back as 2011, South Africa developed a framework for good LED practices; these are depicted in Figure 4.

The Department of Cooperative Governance and Traditional Affairs (2018) further states that significant progress has been made in South Africa since the implementation of the 2006–2011 National LED framework; however, challenges remain, and are explored later in the preceding paragraphs. The Republic of South Africa (2024) lists the areas that are supported by the national government within the framework of LED as, inter alia:

Abutabenjeh et al. (2022) aver that regulatory and financial assistance to local businesses, as well as the development of business innovation incubators, has a positive impact on LED. According to Ivonchyk (2022), the theory of business locations asserts that businesses that seek to achieve high returns make investment and location choices based on the returns they expect (less production costs) to make. One of the incentives for big businesses to invest in LED could be lower production costs that ensure increased profits for such businesses, thus making the local community attractive to business. Chomane and Biljohn (2023, p. 2) highlight the important role of non-governmental organizations (NGOs) in LED. NGOs can provide technical expertise, information, and advice to local businesses, thus contributing to sustainable development in communities.

Khambule (2019) underscores the importance of LED in the South African context. The high unemployment rate of 32.1% as of the fourth quarter of 2023 and 31.9% as of fourth quarter of 2024 (Statistics South Africa, 2024, 2025; Khumalo, 2013), high inequality (the highest in the world), and poverty are the main reasons that the local sphere of government, which is closer to the people, is under pressure to come up with sustainable programmes for community members to address these socio-economic challenges (cf. Juta, 2023).

To understand the challenges that negatively impact the implementation of LED initiatives, it is necessary to situate these within the broader framework of the local government sphere in South Africa. The National Development Plan, a vision for the country to be realized by 2030, paints a picture of a dysfunctional local government mired by challenges such as “poor capacity, weak administrative systems, undue political interference in technical and administrative decision-making, and uneven fiscal capacity” [Republic of South Africa (The Presidency), 2012, p. 45; cf. Phan et al., 2020].

The study sought to explore the state of LED in the West Rand District Municipality in terms of policy, strategy, and, importantly, the nature of support accorded to it. It took a qualitative approach and an exploratory design. The choice of methods is informed by the participatory action research to capture the experiences of the participants in their own words and understand their own interpretation of their circumstances.

In recognition of the importance of ethics in research, the researchers received ethics clearance from the university's College of Economic and Management Sciences for the engaged scholarship project (CH5200) in the region before beginning the study. The observed ethics included obtaining municipal clearance to conduct the study. Participants were advised that their participation was voluntary and that they had the right to withdraw at any time. The purpose of the engaged scholarly work was explained, as was the anonymity of their responses. The principle of doing no harm to those involved was observed throughout the study, and the researchers committed to sharing the consolidated and published findings with the LED office for further engagements.

The researchers utilized a purposive sampling method that entailed visiting LED initiatives and engaging the owners, the LED officials in the municipality, and the community leaders. The data for this paper was collected through key informant interviews with LED officials and other municipal officials directly or indirectly involved in LED promotion. The participating LED ventures were chosen following discussion with the LED office on the nature of the LED initiatives in the area that have been supported, and the nature of support received is detailed in the succeeding paragraphs. The owners and participants from the selected LED initiatives were interviewed. For this article, 19 respondents were engaged, comprising three officials and LED venture owners. The three officials included in the study were directly involved in the LED space; two were involved in facilitation and promotion, and the third was managing an important LED-supporting establishment. The LED entities that participated in the interviews included eateries, hair and beauty shops, fresh produce ventures, vendors, motor mechanic shops, and retailers. These were included to ascertain the nature of support they have received and how this is impacting their businesses with an aim of identifying areas of improvement.

After 16 business owners were involved in interviews and discussions, common issues were picked, and this provided the initial data that was triangulated with the LED officials' responses as well as the findings from the analysis of relevant documents. The document analysis included municipal official reports, LED plans, the LED policy framework, and legal and policy documents, as well as relevant scholarly literature. In the main, the analysis of documents provided the background data on the theories, approaches, and policies that directly or indirectly shaped the LED strategies obtained.

The responses from respondents 10–15 had very little immaterial difference despite the line of business to warrant further enquiry. The engagements with the business owners reached saturation, making it unnecessary to continue with the enquiry. This was critical, as it provides necessary rigor for a qualitative study of this nature (Saunders et al., 2017). At this point the management side of LED had to be investigated, and the three officials' responses were confirmed by the data from the LED initiative owners, which also provided an insight into the issues relating to LED support and management. A thematic analysis of the data collected was undertaken, and the study objectives formed the main themes. The first theme dealt with the nature and type of LED and the effectiveness thereof, the second theme related to the support leveled to LED initiatives, and the third theme addressed the challenges facing the different players in successfully implanting LED. The discussion also brings in the possible innovative ways that can be employed to improve the efficacy of LED initiatives.

The main objectives of the study were

The findings are presented in a chronological order as outlined in the methodological section. First, we present the findings that came out from the literature review, and second, the primary data from the interviews conducted with the LED officials of the RWCLM.

It remains uncontested that LED entails the use of available resources to create wealth. Some of the issues that came out from the analysis of the reviewed literature are that LED initiatives seek to improve the standard of living of individuals through various innovative ways. Moreover, LED initiatives tend to increase employment opportunities, improve income, and boost tax revenues. This is important in the current study area, where there has been growing unemployment as depicted in the background presentation. Another issue that has emerged from the literature is that LED strategies could incorporate lessons from public–private partnerships and shift focus to the use of private sector management styles. It was also found that in South Africa there is an LED framework that assists in setting up funding mechanisms, building capacity, and providing guidelines to support local businesses with technical support for planning purposes. The literature also unearthed a number of LED challenges that need to be addressed; for instance, lack of proper planning by the municipalities, capacity issues for officials responsible for LED in the municipalities, and lack of adequate funding for LED initiatives.

Some of the key issues which came out are captured in line with the study objectives in the following paragraphs.

The study shows that there were LED initiatives in various sectors. Several LED ventures were located within the agricultural sector, from production to retail to processing. There was a growing interest in agriculture even among the youth, which is a plus given the high level of unemployment among this group. A number of the initiatives were found in the beauty sector. There were also several businesses in the food industry, with some providing hot meals near taxi ranks and other strategic points in the municipal area. Discussions with LED officials and business owners showed that there were also some players in carpentry, baking, and motor repairs.

The efficacy of the LED initiatives could not easily be quantified due to a lack of readily available evaluative data, though it is possible to do so over a longer period. At this initial stage of the study, the assessment is related to capturing the participants' take on how LED is addressing socio-economic aspirations. The responses indicated that LED in the municipality was effective in providing much-needed employment given the scaling down of some mining operations resulting in a number of people losing jobs (Rand West City Local Municipality, 2023b). This was important, especially from the work done by Agri-park. The smaller ventures were important in providing owners and a few of their employees with income; the same time these ventures provided them with a space to learn and grow, as some interviewees confirmed that they needed more space to service their customers. The paragraphs below briefly present and discuss the types of initiatives and their contribution to the socio-economic development of the municipality.

Although the authors admit that the literature shares some insights into the types of LED initiatives, such as supporting small businesses, especially informal businesses, our study notes that it does not speak broadly of the types of support required. The literature revealed that the role of the government is to create a conducive environment and provide support for businesses to thrive (Mashamaite and Lethoko, 2018). Our study showed that local communities are engaged in LED initiatives to provide for their families, considering the high level of unemployment in Rand West Local Municipality. This point is also confirmed in the literature, which states that South Africa has high levels of unemployment; for example, in 2023, Statistics South Africa reported 32% unemployment in the country. These statistics highlight the impact of inequality and poverty, which make it difficult for the Rand West Local Municipality to come up with sustainable programmes for community development. On this point, our study closes the gaps in other studies such as Khambule (2019).

Agriculture is an important sector in terms of LED in the study area. Our study also found that different players used the Agri-park to grow fresh produce, and this has seen the youth developing interest and getting involved in agriculture. We also observed, during the data collection phase, that the Agri-park produced high-value produce such as tomatoes, chillies, cucumbers, and green peppers. The facility also catered for local businesses within a 30-kilometer radius. Although the literature confirms the role played by private companies such as Sibanye-Stillwater (Uster et al., 2025), our findings confirmed the effectiveness of LED initiatives in addressing socio-economic challenges, though there is a big room for improvement as most of the LED-supported initiatives remain small and are focused on pro-poor local development with less pro-market intervention, which has been a critique leveled at LED for a long time (Nel and Rogerson, 2016). The contextual factors, such as high unemployment and poverty, as shared under the background of this study, could help justify the leaning toward the pro-poor LED approach. This is in line with Chomane and Biljohn (2023) observation that the tendency to lean on the pro-poor approaches is influenced by unemployment and poverty considerations.

In addition to the Agri-park, our study found that within the facility there was a hall that was available to the community for different development activities. Our contribution to the existing body of knowledge is extremely valuable because, to our knowledge, no literature has been published on Agri-park utilization in the Rand West Local Municipality in South Africa. The literature also supports results that emanate from collaboration between regional, local, and national spheres, as alluded to by Poocharoen and Ting (2015).

Besides agricultural LED initiatives, there are players in the retail, carpentry, beauty and cosmetics, car repair, and eatery sectors, as shown in the data presentation section. The current study, which is in progress, has started with the LED initiatives that are mainly within the small enterprise sector, some of which are informal.

The findings of the study showed that the local municipality, together with other players such a local mining businesses, support LED initiatives through the provision of structures to do business. An example of this is the business hubs/stalls by the taxi ranks that are rented by the business owners. The researchers observed that the business stalls possessed a locational advantage and provided decent spaces to do business. One of the LED officials anonymized here as B1 indicated that, “Every quarter we are out in the townships together with government agencies such as SEDA, NYDA… to make them aware of the services we offer to support businesses…”.

Periodic visits to the townships are made to inform them of available support for start-ups, such as company registrations and tax registrations. These visits are done together with government agencies and sister departments that directly or indirectly support small businesses. The small businesses are assisted to ensure they stay compliant with the regulations, and this makes them eligible for support. It also came out from the LED officials that Westonaria town seeks to ensure that all small businesses are properly registered and possess the necessary documentation. Additionally, it was stated that the South African Revenue Service conducts regular visits every 2 weeks to ensure that the businesses follow regulations. The officials have stated that there have been interventions made by the minister of small businesses to support street vendors, which has been done through the provision of a Nedbank bank grant.

These joint visits cover different groups. Those interested in start-ups and those seeking to formalize their work have all the relevant support. Support is also offered through providing business knowledge; for example, in the agricultural sector, extension officers are available to assist farmers with relevant advice. The Department of Small and Medium Enterprises provides 5-year incubation opportunities to new entrants in various business interests, and when the 5 years lapse, a new cohort is taken in. Additionally, we found that the Gauteng Department of Arts and Sport, SEDA, and the Department of Agriculture are collaborating to register and rebuild informal buildings and businesses in the area that had previously been demolished.

Another example of infrastructural support is the Agri-park that provides rented greenhouses with the technology that allows high production in a small area. The importance of this infrastructure is that it links fresh produce and the market. The facility is leased to people who want to venture into agriculture but do not have the land to do so. The different players grow fresh produce, and this has seen youth getting involved in agriculture. At the time of the visit, the facility was producing high-value produce such as tomatoes, chillies, cucumbers, and peppers. The facility caters for participants within a 30 km radius and provides skills related to agriculture and business management, which are key for boosting LED in the area. The hall is also available to the community for different developmental activities.

The study covered the municipal jurisdiction of Rand West Local Municipality, South Africa. Regarding the first objectives, the study found that the Rand West Local Municipality provided local communities with support for LED initiatives, for instance, the provision of structures in the form of stalls to conduct businesses in taxi ranks. This kind of LED support allowed local communities to rent out business structures from the Rand West Municipality at a monthly fee. The reviewed literature on this point somewhat confirms that the municipalities have a legal obligation to support local communities in promoting economic development. Again, on this point, the contribution and uniqueness of our study is that it is specific about the type of LED support the Rand West Local Municipality provides to the local community as far as economic development is concerned. As previously mentioned, renting out stalls at taxi ranks proves this point.

The study shows that the Rand West Local Municipality teams up with local mining companies such as Sibanye-Stillwater Mine and the Gauteng Provincial Department of Agriculture to support the local community to engage in LED initiatives. The Gauteng Agriculture Department supports the Rand West Local Municipality Agri-park by providing rented greenhouses. Our study revealed that this type of LED initiative support is effective. One of the LED officials confirmed that the infrastructure assisted in linking the fresh produce to the market. The technology used by the Agri-park helped to boost production in a small area. The innovative approach to agriculture makes it possible to have high volumes and quality products within a small piece of land. Furthermore, the Agri-park approach is important in supporting sustainable use of land, as it ensures high-quality output in a small piece of land as opposed to traditional methods that may take more than 10 times the land area to produce an equivalent yield. Despite the high cost of setting up this LED support infrastructure, once it is established, the benefits far outweigh the cost, and it can be replicated in other areas.

Furthermore, the LED unit worked closely with other government agencies in reaching out to LED initiatives quarterly, providing business support, bringing an awareness of the available assistance, and attending to concerns. It is important to note that some of the ventures supported by the municipality were running and working on expansion despite a negative track record of high attrition rates of funded LED start-ups in the literature.

Recent technological innovations suggested by the South African Local Government Association include the 2022 Strategic Agenda: Inspiring Spatial Justice and Social Cohesion through the Integrated Management of Space, Economies and People; Innovation OpenIX and Global Benchmarking. This presents an avenue to optimize LED, and the success thereof hinges on the preparedness of the municipalities to tap into this potential.

The respondents whose stalls were by the terminus indicated that high rentals were eating into their profit, yet the space was insufficient: “As you can see, the space we have here cannot accommodate a big fridge and stove for my business; besides, I feel the rentals are a bit high for this small space,” Respondent A2 said. Two more business owners in the eatery space shared similar concerns, adding that there was also a challenge relating to toilets, where they had to walk to the public toilets because those in the business facility were not in use, having been locked up.

Respondents A2 and A3 stated that maintenance was a challenge, especially in their line of business. They pointed the researchers to flowing sewage a few meters away from their eateries. They acknowledged the importance of the facility; however, they also noted that there was no signage to inform passersby of the business taking place in the stalls. They added that the lighting in the stalls was poor, and maintenance of the whole establishment was wanting, with a portion of the roof having been damaged by strong winds and yet to be fixed.

Respondent A5, who employed two ladies in her establishment, commended the municipality's LED unit for helping her access start-up capital to run her small business. She indicated that failure to secure employment motivated her to venture into business, and R3000 in funding enabled her to start an eatery that sells hot meals to passengers at a nearby taxi terminus. She shared her plans to expand her business but was currently limited by funding.

Respondent C1 in the motor repair industry lamented the lack of suitable space to do their business decently: “We have approached the municipality for assistance with a formal place to do business; however, we have not yet received help.”

The discussions with official B2 indicated that the businesses in the area, particularly the Agri-park, were facing challenges of crime. Thieves had previously broken in, and in some cases, they came to rob at gunpoint. In response to this, security had to be strengthened. Another challenge brought forward by official B1 was the scantily resourced LED office. It emerged that the woodwork project, which once contributed to LED, was shut down in September 2023 due to inadequate machinery and the poor condition of the building. At the time of our visit, officials were occupied with the renovation process.

In terms of policy and practice, it is concerning that even though LED is one of the five key result areas of local government, it was the least resourced in terms of budget as well as in terms of personnel. Official B1 lamented the fact that the LED unit had less than 50% of the required personnel for it to operate optimally as per the existing structure. Unfortunately, this trend is not unique to this municipality, as lamented by B1: “…all over the country LED units are not taken seriously…”.

The third objective dealt with the challenges, which were found to be many. The question of space was shared by eateries by the stalls at the taxi rank as well as the motor mechanics and beauty shops. Linked to space limitations is the challenge of high rentals, which eats into the profit margins of these ventures. The inadequacy of the infrastructure also meant that some hazardous waste from some of the undertakings, for example, that from motor repairs, led to pollution, as the used oil would find its way into the streams when it rained, with the long-term effect of negatively affecting aquatic life.

A service delivery challenge in the form of management and maintenance of infrastructure was raised by the respondents; in particular, the eateries had concerns about waste management. This was reportedly deterring potential customers from coming to their stalls.

In terms of policy and practice, it was concerning that the LED unit was the least resourced in terms of budget as well as in terms of personnel. Official B1 lamented the fact that the LED unit had less than 50% of the number of personnel required to operate optimally as per the existing structure. Unfortunately, this trend is not unique to this municipality, as lamented by Official B1: “…all over the country LED units are not taken seriously…”.

It was disappointing to note that the challenge of inadequate resourcing of LED units in municipalities raised by many scholars, such as Khumalo and Thakhathi (2012), has persisted despite the changes in the LED framework. It also emerged that the woodwork project, which once contributed to LED, was shut down in September 2023 due to inadequate machinery and the poor condition of the building, which further confirms the serious nature of the funding and infrastructure challenges negatively impacting the success of LED.

The final objective of our study speaks to the innovative ways to address the identified challenges and limitations. Our study found that, just like other LED initiatives in South Africa and internationally, the Rand West Local Municipality has challenges and limitations that require innovative interventions. The respondents whose businesses were at the stalls by the terminus indicated that high rentals were eating into their profits, yet the space was insufficient. There is room to repurpose certain underutilized structures in the area and accommodate these businesses after some renovation. This would allow new businesses that are still small to also occupy the stalls and move on when their merchandise no longer fits. Alternatively, considering locational advantage, the local municipality and other players could optimize the available space by constructing a multi-story structure that would allow for bigger spaces and accommodate more businesses.

The challenges of maintenance may be turned into an opportunity where unemployed youth can be mobilized, trained, and contracted to carry out maintenance.

The discussions with Official B2 indicated that businesses in the area, particularly the Agri-park, were facing challenges relating to crime. Thieves had previously broken in, and in some cases they robbed at gunpoint. In response to this, security had to be strengthened. The municipality could invest in technologies that would assist in deterring potential criminals from coming near the establishment.

Another challenge brought forward by official B1 was the scantily resourced LED office. This is a long-standing challenge requiring primarily political will and forging more public–private partnerships to resource the LED support structures.

This innovation objective draws from document analysis and the challenges and limitations. generated from the other three objectives. It focuses on the possible ways by which identified challenges can be addressed. Innovative strategies can better contribute to enhancing LED efforts in South African local government by confronting challenges and providing more opportunities; for instance, incorporating advanced technology and digital platforms can assist in streamlining municipal services and improving economic growth.

Electronic services can develop transparency, cut down on bureaucratic inefficiencies, and provide easy access to services for citizens. Digital marketplaces can create a strong interaction between local businesses and larger markets, encouraging trade and entrepreneurship. In addition, social innovation, which allows more community involvement, can empower community members to take part in economic growth. Programmes that focus on skill development, such as vocational training and mentorship, can improve citizens' skills and give them the tools they require to contribute meaningfully to the local economy. The support of grassroots innovations and social enterprises can create inclusive growth, particularly within underserved areas.

An alternative effective approach is to establish public–private partnerships to pool resources and expertise for LED projects and programmes. Collaborations between municipalities, community groups, and private companies can lead to sustainable initiatives such as renewable energy projects and urban renewal programmes. The case of Germany's success in LED is instructive on the importance of partnerships that include key players: universities, industries, and local governments. Furthermore, these collaborations can bring in the funding and technical expertise that local governments might not have on their own. Finally, using data and analytics can provide guidelines to evidence-based decisions in LED planning in local authorities. By studying economic trends, demographic information, and market conditions, municipalities can pinpoint key areas for action and design strategies that fit local needs. These data-driven methods ensure that resources are used wisely and that initiatives tackle the most urgent economic issues in the regions.

Drawing from the findings, the study makes four main recommendations that tackle capacity in terms of resources and skills, coordination by way of a one-stop shop to harness the different players' efforts, and LED budgets in municipalities.

Rand West Local Municipality requires sustained capacity-building support to effectively manage LED initiatives within its jurisdiction. One of the areas of intervention is the LED officers' management skills development. Training in coordinating multiple interventions and managing complex stakeholder relations. Different spheres of government work together in a number of initiatives, such as the Agri-park, and there are also big businesses who, through corporate social responsibility, support LED programmes, and all these players need a comprehensive system of coordination to ensure their inputs and efforts are coordinated. One of the takeaways from the study is that smart agriculture through the Agri-park project holds significant potential for food security, youth employment, skills development, and myriad other socio-economic benefits. The recommendation from this study is that similar projects be rolled out in other municipalities across the country, and other developing countries may benefit from adapting similar projects to their contexts.

As shown in the literature and empirical data, LED managers find themselves with a lot of work to do with a thinly resourced office. There is therefore an urgent need to ensure the LED office is resourced and prioritized like the rest of the key performance areas within the local sphere of government. Perhaps minimum budget guidelines could be set to ensure that the LED unit gets a meaningful fraction of the municipality's budget.

The capacity that needs to be enhanced should also entail the development of data management capacity, technical support for small businesses, and the maintenance of monitoring systems. It is challenging to establish how the LED initiatives are performing due to the lack of a proper information management system. There is a need to mobilize the necessary resources to arm the LED units in municipalities, and to establish a one-stop shop for all the support mechanisms to ensure there is a comprehensive support system for LEDs for both start-ups and those businesses that are running successfully. The study recommends a one-stop shop within the LED unit to coordinate the support from different players from the government, non-governmental, and private sectors. An equipped LED unit will go a long way in resource mobilization, providing proper guidance to local communities on accessing and optimizing various funding sources. This move will enhance partnership development to build and maintain effective collaborations with various stakeholders.

The discussion on the different inflections of LED necessitates an investment in technology and green path transitions to ensure the sustainable and safe utilization of available resources in a locality.

The global macroeconomic dynamics, such as conflicts and concerns about climate and environment, which make LED key for development, have been discussed. Theoretically, the various inflections of LED on a broad scale are outlined, including place marketing, industry clusters, and small company development, all of which may manifest at varying levels in a locale depending on contextual conditions. The limitations of the urban and regional theory are discussed, and the adaptation of this with participatory approaches directing focus on contextual factors is underscored. The literature study presented international examples of successful types of LED and their limitations, and importantly, the article discusses how these challenges can be overcome. Technological advances and sustainability concerns were identified as holding the key to the future of LED. The literature study has underlined the importance of using technological advances to unleash LED opportunities. This article has presented a snapshot of an ongoing community engagement project involving an evaluative exploration of LED in the RWCLM in the Gauteng province of South Africa.

The study adopted a qualitative approach to establish the type of LED initiatives in the municipality, the kind of support provided for these initiatives, and the challenges of promoting LED in the area. The findings show that there are different types LED initiatives, from beauty shops and eateries to motor repairs and agriculture. The significance of LED in this municipality cannot be overemphasized because the scaling down and closure of mines are negatively impacting levels of employment. Support rendered to LED ventures includes the provision of business stalls, start-up funding, training, links to markets, the introduction to new technologies, and the maximization of available resources such as land.

However, the municipality continues to face various problems, the most significant of which are a lack of a proper budget for LED and insufficient personnel to provide the necessary support, which demonstrates the lack of political will to support this cause. The report observed with concern that most of the present difficulties are not new in LED conversation but have featured over the years in studies covering different localities in the country, suggesting very little improvement in the practice. Business owners have faced the challenges of inadequate space with which to do business and issues of poor maintenance of infrastructure. The challenge of crime was discussed by both officials and business owners. The ongoing study will investigate possible ways of ensuring LED gets the attention it deserves as well as look into the work done by LEDAs. It will also be of interest to the ongoing enquiry to investigate the new District Development Model and how it can be leveraged to promote optimal utilization of available resources in the promotion of LED. While the findings of the study cannot be generalized based on the case study approach taken, the findings are relevant to comparable municipalities in the country. Smart agriculture through the Agri-park makes a very important contribution to optimum utilization of space, promoting high yields per square meter, and the model can be replicated elsewhere, especially in developing economies, to boost LED. The Agri-park provides an important model of optimization of space, thereby contributing to sustainable resource management.