The central objective of the research study was to evaluate the 2020 Citywide Economic Growth and Development strategy, with reference to the Nelson Mandela Bay Municipality (NMBM). The Citywide Economic Growth and Development strategy for the NMBM was developed in 2004 in relation to the need for Local Economic Development. The need for Local Economic Development (LED) has been mandated by the national government of South Africa as prescribed in the direction toward developmental local government post - 2000. The National Framework for Local Economic Development in South Africa serves as a strategic implementation guide for municipalities. The National Framework for Local Economic Development provides a supportive foundation to assist municipalities such as the Nelson Mandela Bay Municipality in improving its economic development through concentrations on suggested actions. Through support for municipal Local Economic Development strategies, the objective of Local Economic Development was to offer local government, private sectors, non - profit organisations and local communities the opportunity to work together to improve the local economy. The aim has thus been to enhance competitiveness and encourage inclusive sustainable growth. The 2020 Citywide Economic Growth and Development strategy for the Nelson Mandela Bay Municipality includes its strategic approach to promote sustainable growth within its specified municipal environment. Formulation of the strategy includes descriptions of sector strategies as a mechanism to promote transformation and improved economic development in a sustainable manner. Content Analysis and the case study methods were utilised to evaluate the 2020 Citywide Economic Growth and Development strategy in the undertaking of the research study as a way of examining the formulation of the Local Economic Development strategy of the Nelson Mandela Bay Municipality, in order to determine v the shortcomings in Local Economic Development as brought about by ineffective policy formulation process. Discourse Analysis was also used to understand the policy foundations as influenced by the previous apartheid regime and its accompanied injustices on the citizens of South Africa. The brief descriptions of major economic developments and sector strategies for the Nelson Mandela Bay Municipality shows the detachment of policy content from clear strategic action plans has depicted an incongruence in efficiency and sustainable development. This has placed developmental policy formulation under scrutinisation and evaluation. The findings indicate that there is a need for revision and/ or reformulation of the current 2020 Citywide Economic Growth and Development strategy of the Nelson Mandela Bay Municipality in promotion of effective sustainable development and an improved local economy. The impact of a failure to revise and rework the strategy has detrimental effects on the promotion of an effective and efficient economy in the Nelson Mandela Bay Municipality. Therefore, the lack of detail within the 2020 Citywide Economic Growth and Development strategy must be tackled by policy formulators to ensure economic growth and an alignment with the objectives as contained in the national mandate for economic development.

The post-apartheid developmental state of South Africa had a challenge of turning around an economy that was on deficit which it inherited in 1994, to a positive growth that will be sustainable and shared. The process followed in creating a sustainable economic development was first establishing a constitutional democratic government which was constituted in terms of the provisions of the Constitution of the Republic of South Africa, 1996, as three equal spheres of government, viz: the national, provincial and local spheres of government. Initiatives on innovative economic development become a reconstruction programme not only of the national and provincial spheres of government, but also of the local sphere of government which is closest to the people it governs and deliver municipal goods and services to. For an example, section 152 (1) (c) of the Constitution of the Republic of South Africa, 1996, provides that the local sphere of government which is constituted by 283 wall-to-wall municipalities must “improve social and economic development” of the people. Out of the 283 municipalities, 6 are metropolitan municipalities, and are the: City of Cape Town, City of Johannesburg, City of Tshwane, Ekurhuleni, Ethekwini, and Nelson Mandela Bay Municipality. This research project is limited to the City of Cape Town (CCT) and the Nelson Mandela Bay Municipalities (NMBM). In the second process, a number of legislations and policies providing for external mechanisms to be used to improve local economic development (LED) in an inclusive, shared and equitable manner were introduced. Policies that were introduced by the democratic government and serve as policy directive for economic development are: the Reconstruction and Development Programme (RDP) of 1994; the Growth, Employment and Redistribution (GEAR) of 1996; and the Accelerated and Shared Growth Initiative of South Africa (ASGISA) of 2006. The relevant legislations to the local sphere of government which were introduced and provided for the appropriate mechanism for enabling sustainable growth of local economies by developmental local government in partnerships with other stakeholders such as private sector and civil society movements are: the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000); Municipal Service Policy of 2000; Guidelines on Municipal Service Partnerships of 2006-2010; and the National Framework for Local Economic Development in South Africa (NFLED) of 2006-2010. The above xviii legislations provide the following external mechanisms to improve local economic development in municipal areas, viz: public-private partnerships; public-public partnerships, and public-community partnerships. This research project is about the first external mechanism which is the public-private partnerships (PPPs) to enable municipalities to improve local economies that provide for job creations and employment for the local inhabitants. According to the National Treasury Regulation 16 (2004:1), PPP means a “commercial transaction between an institution, for example a metropolitan government, and a private party in terms of which: 1. The private party either performs an institutional function on behalf of the institution [in this regard a metropolitan government] for a specified or indefinite period or acquires the use of a state property for its own commercial purposes for a specified or indefinite period. 2. The private party receives a benefit for performing the function or by utilising state property, either by way of compensation from a revenue fund, or by charges or fees collected by the private party from users or customers of a service provided for them; or a combination of such compensation and such fees”. The first goal of this research project is to develop the most appropriate public-private partnership model for South African metropolitan government with special reference to the City of Cape Town (CCT) and the Nelson Mandela Bay Municipality (NMBM) in enabling and guiding them to improve and sustain local economic development (LED) in their respective areas of jurisdiction. The application of public-private partnerships (PPPs) as a policy strategy to achieve local economic development (LED) in CCT and NMBM was investigated, in order to determine whether these activities can be improved. Followed is the development of a conceptual framework for optimal PPP implementation in order to improve local economic development in the CCT and NMBM and other metropolitan and municipal areas in South Africa. A more appropriate PPP model called the Participatory Development Systems Model (PDSM) has been constructed for this purpose from a number of sources and proven good practices both locally in South Africa and internationally. The PDSM model uses the strategic prioritisation and management by a municipality of the integrated development of physical, economic, human and social capital in its region in a more participatory way, as a point of departure for PPPs. The PDSM model for PPPs also emphasises consistent systematic assessment of these strategies against the strategic LED goals of the municipality concerned in order to ensure that lessons are learnt from these experiences and used to refine or revise future LED and PPP strategies accordingly. This thesis makes an original contribution to the existing body of knowledge about the promotion of LED through PPPs in metropolitan municipalities in South Africa and elsewhere, by conceptualising PPPs in a clear and coherent way as an integrated dimension of strategic management processes in municipalities that need to be implemented in a more participatory way in order to achieve the overall strategic goal of sustainable LED.

There is an on-going debate in South Africa whether municipalities are an effective vehicle for deepening participatory democracy or not. Due to serious backlogs on services, the role of municipalities has largely been reduced to service delivery, to the detriment and total neglect of fundamental functions of local government. These are (Act 200, 1996):(a) To provide democratic and accountable government for local communities;(b) To ensure the provision of services to communities in a sustainable manner;(c) To promote social and economic development;(d) To promote a safe and healthy environment; and (e) To encourage the involvement of communities and community organisations in the matters of local government. On the other hand Haveri, Stenvall & Majoinen (2011) argue that if the municipalities are a government sphere closest to the people, they are therefore best placed to, and should, lead and support the deepening of participatory democracy, what they call self-government. As the debate rages on, there are indications that most of thechallenges that face the municipalities are related to the distance that has been developing between municipal institutions and the citizens.

Business Chambers worldwide strive to promote trade and investment. These chambers act on behalf of businesses in an effort to enhance economic growth and development. The Port Elizabeth Regional Chamber of Commerce and Industry (PERCCI) was established in 1994 with a view to fostering, encouraging, promoting, protecting, developing and establishing commercial and industrial enterprises within the Port Elizabeth and Uitenhage Metropole (now Nelson Mandela Bay). Thus PERCCI has since changed its name to Nelson Mandela Bay Business Chamber (NMBBC). The NMBBC focuses on the provision of services to business in the form of information, communication, seminars, task teams, networking functions and a strong international trade focus. Lobbying, representation and strategic interventions are also key focus areas, with the objective of facilitating an environment which is conducive to economic growth. The vision of the NMBBC is to be a leading and dynamic business chamber that contributes effectively to the economic growth of Nelson Mandela Bay. The vision, mission and objectives of the NMBBC are delivered through the following task teams, each its own specific mandate: Crime Task Team, Corporate Social Investment (CSI) Task Team, Environment, Health & Wellness, Human Capital Development, Industrial Development Strategy, International Trade & Investment, Mentorship Programme, Service Excellence, SME Task Team, Strategic Projects/Infrastructure, Strategic Resources Forum, Tourism Task Team and Transport Task Team. Currently, only four of these task teams are in operation and the effectiveness of their functioning is currently not well established. Therefore, the present study investigated the factors which influence the effective functioning of the task teams, with a view to improving their performance and overall contribution to the organisation. A literature study was conducted on factors influencing the effectiveness of teams and a hypothesized theoretical model developed. Thereafter, an empirical study was conducted within a positivist paradigm using primarily a case study approach. Initial focus group interviews with 17 task team members were followed up by a questionnaire survey distributed amongst 75 NMBBC task team members. The factors investigated were: Clear Purpose, Clear Roles, Open Communication, Shared Leadership, Motivation and Commitment and their influence on team effectiveness. The empirical results indicate that relationships exist amongst all the factor variables investigated with the most significant relation found to be between commitment and motivation. The results further indicate that all the measured factor variables exert an influence on the effectiveness of the task teams with commitment being the most influencing variable and motivation the least. The study concludes that while the task teams are making a significant contribution to the performance of the NMBBC, they are nonetheless not functioning optimally. As there is room for improvement, the study makes a number of recommendations to the NMBBC in an effort to increase the effectiveness of their task teams.

Crime in South Africa has been escalating over the past few years. Crime affects all societies in South Africa. It occurs amongst the rich and the poor, in the suburbs as well as in the townships. Serious and violent crimes are reported in most of the national newspapers almost on daily basis. There is no single satisfactory answer as to the causes of crimes and its impact on the economy of South Africa. The aim of this research report is to assess the impact of crime in the South African economy. In order to formulate a conceptual and theoretical framework of the study, growth theories, namely neoclassical growth theory, Harrod-Domar growth model classical growth theory and endogenous growth theory were presented. Although all these growth theories relate to this study as crime cuts-across all sectors of the economy the endogenous growth theory was chosen as a theoretical framework on which to base this study. Endogenous growth theory deals with domestic absorption. Crime interferes with this absorption as it constitutes a cost to the economy. Firms lose profits whilst the opportunity cost of running prisons using a tax payers’ money continues to grow. This study is based on a quantitative research technique, using a vector error correction model (VECM) on a quarterly time series data over a period 2003 to 2011. The variables used to explain variations in economic growth over this period are crime, real interest rates, real exchange rates, unemployment and poverty. The findings of this study suggest that crime exerts a negative impact on economic growth in a long run in South Africa. However, this relationship is not statistically significant both in a short run and a long run. . However, no evidence of short run adjustments between crime and economic growth were found. There is a long run negative relationship between real interest rates and economic growth. This relationship is also statistically significant in a long run but not in a short run. However, the relationship between real interest rates and economic growth is positive in a short run. This can be explained by the fact that high interest rates attract foreign investments causing a rise in economic growth but in a long run high interest rates dampen domestic investments thereby aggravating the unemployment problem. Rising unemployment is likely to lead to increase levels of crime in South Africa. The results also show that unemployment has a negative relationship with economic growth both in the short run and a long run. However this relationship is not statistically significant in a short run but in a long run. Poverty has a negative relationship with economic growth in a short run but a positive relationship in a long run. However, in both instances the relationship between poverty and economic growth is not statistically significant. Real exchange rate has a positive relationship with economic growth in a long run but a negative relationship in a short run. This relationship is statistically significant in a long run but not in a short run. This means that the benefits of a weak currency in South Africa are realised in a long run. The implications of this study with regard to the variable of interest namely crime, is that crime constitutes a cost to the economy of South Africa. The econometric modelling used in this study suggests a negative relationship between crime and economic growth. This means that the problem of crime in South Africa goes beyond just simple counts on a number of offenses. Based on the findings of this study it is recommended that crime prevention is better than cure. Crime prevention should use a wide range of ideas and abilities found throughout the society. Community planning, neighbourhood action, juvenile advocacy, security planning, education and training are some of the ways in which crime actions can be mitigated in South Africa.

In this study Official Development Assistance (ODA) is defined as resource flows from international community in the form of grants, technical assistance, support and financial co-operation. Government is held partially responsible or accountable for the management of these resources but not accountable for utilization of direct support to NGOs and private sector. According to the National Treasury’s Official Development Assistance (ODA) 2010 Review Report, the Eastern Cape is the second largest recipient of ODA in relation to other provinces. The province of KwaZulu Natal, ranked number one, and the province of Limpopo was recorded as the third largest recipient of ODA. As such it is recorded that European Union is the greatest funder in the provincial government focusing in the areas of Health, Urban renewal and Local Economic Development source (National Treasury ODA 2010 Review Report). To date, no analysis has been done on ODA in the Eastern Cape. This study seeks to analyse Official Development Assistance in Eastern Cape with a view to identifying constraints and gaps that may be contributing towards the ineffectiveness of ODA in the Eastern Cape.

This study examined the impact of crime on socio-economic development in Mdantsane Township which is an urban area under Buffalo city Municipality. The study is concerned with the growing rate of crime, which is perceived to have affected community development. A survey was conducted for this study and questionnaires were administered for data collection. The study found that Mdantsane area is fraught with problems of high unemployment, high crime levels and lack of physical infrastructure. It was shown that the levels of crime like robbery and assault cases are the order of the day. Many crimes are committed either during the day or at night. This study made several recommendations relating to what should be done to ensure that local residents, potential developers and investors feel safe in Mdantsane. Amongst other recommendations put forward are the establishment of community relations with the police, namely community policing forums (CPFs) and development community safety centres.

Since 1994, with many of its sanctions lifted, South Africa became a stronger economic power house in Africa leading the continent‘s industrial output and mineral production and generating a large proportion of Africa‘s electricity. The South African economy has since been growing at a fast pace which has also led to an increase in the demand for electricity. South Africa‘s generating capacity has remained constant through a consistently increasing demand, leading to an electricity shortfall. An immediate threat to South Africa‘s continued economic growth is a capacity constraint in terms of energy supply. Increasing economic growth coupled with the rapid industrialisation and mass electrification programme of the last decade, as well as planned and unplanned maintenance and coal stock pile problems led, in January 2008, to demand out stripping supply. With electricity being an important component of economic development, it is vital that the impact of the supply of electricity on the economic growth of the country be well understood. Currently few studies have been done on the analysis of this relationship in South Africa specifically and how this relationship impacts specific sectors of the economy that contributes to the total GDP of the country. This study has assumed rigorous application of Granger technique with proper statistical verification of assumptions, selection of relevant variables and provides trusted statistical forecasts. In an attempt to understand this relationship, an Econometric model has been developed to assess the impact of electricity supply and price on the economic growth of South Africa. In the empirical analysis section of this study it was found that with a forecast for GDP, past values of electricity prices and coal sales may be used to forecast electricity supply. It was also found that if we have a forecast value of future electricity price we can use past values of electricity supply and coal sales to forecast GDP for the next quarter. We also found that electricity supply is granger caused by GDP; electricity price; and total coal sales. And that economic growth is granger caused by electricity supply; electricity price; and total coal sales. It was concluded that in order for government to improve the economic growth of South Africa, a major focus on the energy industry is needed to ensure sustainable supply capacity. The energy sector, as was shown in the study, has a major impact in the functioning of the Gross Domestic Product of the country.

Tourism is gradually recognized and acknowledged as an important sector to drive economic growth across many nations. It is by no coincidence that the South African government took a bold decision to elevate the importance of tourism in the economy through the establishment of a dedicated tourism ministry in 2009. Tourism derives its mandate from the Constitution of the Republic of South Africa 108 of 1996, which outlines tourism function as an area of concurrent competence between the three spheres of government that is national, provincial and local government. According to Tsatsire (2008:1), the new mandate given to local government post 1994 implies that local government is no longer expected to render basic services only, but is also required to serve as an agent of development. The main objective of the study is to identify the challenges faced by the municipalities in the implementation of tourism functions, using UMgungundlovu District Municipality as a case study and pursued the following specific objectives: To establish the roles and responsibilities of municipalities in tourism; To assess whether these responsibilities are adequately performed and to understand the reasons for deficiencies, if there are any; To highlight the contribution of tourism to local economic development; To ascertain the status of the implementation of the tourism strategy for the UMgungundlovu District Municipality (UMDM); To highlight the significance of the role of municipalities in achieving national and provincial tourism objectives and; To recommend appropriate actions to overcome the challenges pertaining to implementation of tourism at a local government level. The study is premised upon the acknowledgement that there are many developmental challenges facing municipalities and tourism is one of them. With tourism being recognised more and more as an essential component of local economic development, municipalities are required to play a central role in ensuring the implementation of national and provincial priorities to boost the sector’s contribution to the economy. The study explores various pieces of legislation upon which tourism mandate on local government is embedded. This has enabled to provide clarification with regards to the roles and responsibilities of local government in tourism. The connection between tourism and local economic development is succinctly discussed to ascertain the benefits of tourism and its contribution in local economy. The study took a form of qualitative research and therefore employing the use of qualitative research techniques in terms of data collection, analysis and interpretation process. Data were collected through the review and analysis of strategy documents including the Local Economic Development Strategy, Tourism Strategy and the Integrated Development Plan of UMgungundlovu District Municipality. Interviews were also conducted with the officials responsible for tourism within UMDM and other local tourism stakeholder organization within the study area including uMsunduzi Pietermaritzburg Tourism Association, Howick uMngeni Community Tourism Association, Pietermaritzburg Business Chamber of Commerce, KwaZulu Natal Department of Economic Development and Tourism and Tourism KwaZulu Natal. The methodology that was followed in the study has enabled the researcher to address all the study objectives and to compile the findings report presented in chapter four. Tourism is one of the functions of local government; however, municipalities are faced with a variety of challenges in the implementation of tourism function. Challenges that are pertinent to UMDM are discussed and articulated in this report. The study concludes by documenting the recommendations conferred by the respondents with the objective to overcome the challenges pertaining to implementation of tourism at a local government level. These recommendations are further discussed to explore practical actions on how the UMDM can overcome the identified challenges to enhance local economic development through tourism.

The effect of real exchange rate volatility on export performance: evidence from South Africa (2000-2011) This study sought to investigate the relationship between exchange rate volatility and export performance in South Africa. The main objective of the study was to examine the impact of exchange rate volatility on export performance in South Africa. This relationship was examined using GARCH methods. Exports were regressed against real effective exchange rate, trade openness and capacity utilisation. The research aimed to establish whether exchange rate volatility impacts negatively on export performance in the manner suggested by the econometric model. The result obtained showed that exchange rate volatility had a significantly negative effect on South African exports in the period 2000-2011.