Local Economic Development & Tourism

Mentioned LED Framework

According to the mentioned LED Framework considerable attention has to be given to the following activities and the development potential of Municipality:

Review its LED Strategy

The Municipality has to review its Local Economic Development (LED) Strategy. This exercise will be facilitated by the Department of Economic Development and Tourism, but can only commence in the next financial year

LED Framework

As outlined in the LED Framework it is important to highlight the unique economic and geographical characteristics of the Municipality in order to arrive at the final prediction of the economy at the local level

Located in Namakwa District

Being located in the centre of the Namakwa District it is further located between the main economic centres of the Northern Cape, i.e. Springbok and Upington.

Mineral Deposits

Mineral deposits and mining related development in the area – Mining related legislation also presents other economic opportunities through Social and Labour Plans

Challenges and Dilemmas

There are total 8 Current Challenges and Dilemmas for LED

01. Shortage of Appropriate Labor Skills

The shortage of appropriate labor skills in the area is a central constraint to investment and development.

02. Economic and Cash Flow Situation

The economic and cash flow situation of the Municipality is under pressure at present.  The necessary steps and precautionary measurements should be identified and implemented.  The poor payment culture by some Residents contributes to the problem and was analyzed during this phase.

03. Operational Budget Availability

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04. LED Officer

The LED Officer has been appointed and the forum will be established.

05. Establishment of the LED Forum

After establishment of the LED Forum, one of their focuses will be to solve functional challenges such as the non-participation of the private sectors and government.

06. Develop an LED Policy

The municipality still needs to develop an LED Policy to ensure that council takes a principle position on how it commits to LED.

07. Skills Development Policy

Skills Development Policy should be developed, looking at the Municipality’s response to the big skills challenge they face.

08. Other Current LED Stimulating Policies

The municipality also needs to look at other current LED stimulating policies such as the Property Rates Policy and Land Policy.


Public Private Partnerships

According to the MFMA regulations, Public-Private Partnerships (PPP’s) are commercial transactions between a Municipality and a private party in terms of which the private party

01. Performs a Municipal Function

Performs a municipal function for or on behalf of a municipality, or acquired the management or use of the municipal property for its own commercial purposes, of performs both a municipal function for or on behalf of a municipality and acquired the management or use of the municipal property for its own commercial purposes.

02. Assumes Risk

Assumes substantial financial, technical and operational risks in connection with:

  • The Performance of the Municipal Function
  • The Management or use of the Municipal Property
  • Both
03. Receives a Benefit

Receives a benefit from performing the municipal function, from utilizing the municipal property or from both, by way of

  • Consideration to be paid or given by the municipality or a municipal entity under the sole or shared control of the municipality
  • Charges or fees to be collected by the private party from users or customers of a service provided to them
  • A Combination

LED Opportunities

Strategically, partnership contracts enhance accountability by clarifying responsibilities and focusing on the key deliverables of a service. Our managerial efficiency can benefit significantly as existing financial, human, and management resources can be refocused on strategic functions.


  • Involve local farmers in LED Forum
  • Invite Ornamental Plant Institute of the ARC to provide information and assistance to local farmers
  • Make land available for agricultural cooperatives and emerging farmers
  • Establish informal trading areas for agricultural produce
  • Provide skills training and support programmes. Investigate the role of Agri-SETA
  • Establish a permanent working group between the Municipality and the mine managers responsible for developing Plans
  • Develop a database of available labour and skills to encourage the employment of local people
  • Provide skills training and support programmes
  • Instigate mining procurement opportunities in consultation with the mines, develop a database of such opportunities and ensure that this information is made available to local businesses and communities
  • Develop a small scale Mining Strategy
  • The Municipality should develop and implement an aggressive marketing strategy
  • Tourism opportunities should be packed and marketed accordingly
  • New Tourism Opportunities should be explored and communicated through the LED forum.
  • Local Economic Development


    Strategic Objective

    Create an environment that promotes the development of the local economy and facilitate job creation.

    Intended outcome

    Improved municipal economic viability.

    Availability and Status of Local Economic Strategy

    The LED strategy is out of date and has to be revised. Assistance is needed from
    Department of Economic Affairs and Tourism to develop the strategy. The LED strategy should on the follow the National LED Framework which has its focus focuses on the following LED Policy Pillars/Thrusts:

    Building a Diverse Economic Base

    • Sectoral development (Manufacturing, Agriculture, Tourism, Green Economy, etc.)
    • Metropolitan Economic Development
    • Regional Economic Development
    • Regional Industrial Development Programme
    • Industrial Cluster Development Programme

    Developing Learning and Skillful Local Economies

  • Tackling basic skill Gap
  • Developing workforce skills
  • Developing an Enterprise and Entrepreneurship Culture
  • Developing Leadership and Management Skills
  • Developing Inclusive Economies

  • Informal Economy Support
  • Inner City Economic Revitalization
  • Township Economic Development
  • Inclusive Rural Economy
  • Youth and Woman Economic Development
  • Expanded Public Works Programme and Community Works Programme
  • Enterprise Development and Support

  • Small, Medium and Micro Enterprises
  • Cooperative Enterprises
  • Broad Based Black Economic Empowerment (B-BBEE) Support
  • Youth and Woman Enterprises
  • Business Development Support
  • Economic Governance and Infrastructure

  • Improving Economic Leadership and Management Capacity
  • Administrative Economic Development Capacity
  • Access to development Funding/ Finance
  • Developing Local Economies as District Brands
  • Economic Infrastructure
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    Unemployment Rate


    Level of Current Economy

    Khâi-Ma LM

    Rich in Minerals Deposits

    South Africa’s main source of lead production is from Aggeneys. The main zinc deposits in the Northern Cape Province can be found at Gamsberg near Aggeneys.
    The graph indicates that the highest contributing mining sector with a 56% contribution, followed by the community services at 12%.
    Khâi-Ma’s mining and quarrying sector averaged a positive annual growth rate of 3.8%, which is more significant than the Provincial and District average (-1.2% and -4.3% respectively).

    by the Municipality

    Job Creation Initiatives

    The Municipality could create the following temporary jobs through during the 2017/2018 and 2018/19 financial year



    KhâI-Ma Municipality can benefit a lot out of tourism through aggressive marketing. Inhabitants have to be motivated and assisted to develop their interest and skills to promote this industry. All attractions such as canoeing, 4 x 4 routes, hiking trails, Pella R.C. Cathedral, the Nama culture, art should be packed well for tourists to be guided properly.


    Tourism opportunities should be packed and marketed accordingly


    The Municipality should develop and implement an aggressive marketing strategy

    New Tourism

    New Tourism Opportunities should be explored and communicated through the LED forum