Thesis (MA (Public and Development Management)--University of Stellenbosch, 2007. / 128 leaves printed single pages, preliminary pages i-ix and numbered pages 1-118. Includes bibliography and a list of figures in color and tables. Digitized at 300 dpi 24-bit Color to pdf format (OCR) using a Hp Scanjet 8250 Scanner, and digitized at 600 dpi grayscale to pdf format (OCR), using a Bizhub 250 Konica Minolta Scanner. / ENGLISH ABSTRACT: "The South African Constitution (1996) promotes the improvement of liVing environments and livelihoods for all constituents by means of a developmental approach to local governance" (IDASA, 2005:2). The development role of local government can be understood through the consideration of four basic drivers which includes planning for development, governance and administration, regulation and service delivery. The Drakenstein Local Municipality is committed to ensure sustainable economic growth and development by increasing national and provincial competitiveness as well as the reduction of poverty. Key to this process is the retention and expansion of existing businesses as well as the attraction of new investment. The main focus of this research study is the promotion of business development as it forms part of local economic development (LED) and is also an integral part of integrated development planning (IDP) at local government level. The introduction of proposed targeted investment incentives is aimed at facilitating the implementation of the Drakenstein Local Municipality's strategic development objectives. The proposed intervention options should be a special effort to attract investment to the study area which will result in a positive spill-over effect in the Drakenstein Local Municipality's local economy. Intervention options can be developed in terms of investment incentives that can bring about job creation, economic development and poverty alleviation in the study area as set out in their strategic deveiopment objectives.