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• Strengthening the LED enabling environment;
• Promoting learning and knowledge exchange; and
• Establishing effective and innovative LED management functions.
The programme comprises a number of LED funding and technical assistance instruments,
which fundamentally include:
• The Business Enabling Fund (BEF), an application-based fund aimed at assisting
provincial and local government creates an enabling envimnrnent for LED.
• The Local Competitiveness Fund (LCF) which encourages partnerships which
facilitate private sector investment in sustainable LED projects;
• Networking and Cooperation Funding (NCF) aimed at generating, learning and the
exchange ofknowledge; and
• Technical Assistance provided by the Programme Coordinating Unit to support the
roll out of the programme as a whole fwww.selda.org.za/directory.igad.htm.
(2007)].
This research embraces the KwaZulu-Natal Provincial Development Plan as a significant
contribution to rural and urban growth and development, and necessary for the diversification
ofthe economy ofthe study area, Ulundi.
The South African government in pursuance of rural development and urban renewal, as key
strategies to counter the legacy of uneven development in the country, aims to suppon all
municipalities in South Africa This is to be achieved by focusing on the participation of big
business and SMMEs with a view of addressing the needs of the poor and marginalised
people and local communities (Local Economic Development, 200 I). Among the key
principles underlying the LED process are that:
• Strategies must prioritise job creation and poveny alleviation.
• They must target the previously disadvantaged people, marginalised communities
and geographical regions, black empowerment enterprises and SMMEs to allow
them to participate in the economic life ofthe country. Each locality may develop
an approach that is best suited to its local context.
• They promote local ownership, community involvement, local leadership and joint
decision making, in collaboration with outside investors.
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