The Role of Local Economic Development Agencies in the South African Local Economic Development Landscape

Local economic development agencies (LEDAs) have been initiated to support the goals of local economic development (LED) in several developed and developing countries. In South Africa, LEDAs have become established as part of the LED landscape in the country. This article analyses the establishment, existing state and challenges that confront LEDAs in South Africa. It is argued that the development agency model potentially has a pivotal role to play in managing, directing and coordinating economic development activities in certain local spaces. The success of LEDAs is challenged, however, by several factors including local economic potential, capacity and resource challenges and the institutional readiness of both the agency and parent municipality to manage local development outcomes.