Institutional Capacity for Local Economic Development in the Karoo District Municipality


Botes, L (2002), Institutional Capacity for Local Economic Development in the Karoo District Municipality, Local Government Support and Learning (LOGOSUL) Programme, Northern Cape Department of Local Government & DFID (UK), Unpublished report.



1. The priority option that is proposed by Urban Econ to implement in the Karoo District Municipality is the temporary centralisation of the LED function at district level for an interim period, with the intention of decentralizing it to local level once they have built sufficient capacity to manage this function. Due to the capacity and resource problems of local municipalities it is proposed to transfer the LED function to the District Municipality. This option was taken as the underlying assumption of this study.

2. The work of the LED Unit will be complemented by a Development Forum or Association (“DDA”) representing the private sector. The DDA could be a Section 21 Company or a Development Corporation. The DDA would be strongly a-political, and would be driven by a delivery-oriented CEO. It should have a commercial approach to its activities. In the short- and medium-term, it will need government grants, but in the longer-term, it should become financially self-sustaining by claiming a percentage of profits of businesses established under its umbrella. It could also take out loans from agencies such as the DBSA. Local business and agriculture groups should be represented in the DDA.


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