The movement of people is not a new phenomenon; it has always been associated with economic growth as foreign nationalities play a significant role in the local economic development of the area of destination. The increase in foreign migration from Mozambique is a true reflection of the important role that foreigners play in the local economic development of Kwa-Ngwanase District Municipality, UMhabuyalingana. This study seeks to assess the role played by foreigners from Mozambique towards the local economic development of UMhlabuyalingana, which is situated in the northeastern corner of the Province of KwaZulu-Natal, South Africa. In particular, the study investigates the attitude of the local people towards foreign nationals from Mozambique. The main hypothesis advanced in this study is the positive relationship extant between the influx of foreign nationals from Mozambique to Kwa-Ngwanase and the local economic development of the area. The empirical data for this study was generated through the use of questionnaires. The findings of this study reveal that the local people of UMhlabuyalingana believe that the South African government can rely on foreign nationals for economic growth and skills transfer in the LED projects. It was evident from the fieldwork conducted that the majority of the foreign nationals are not employed in the LED projects, but are instead are involved in trading/business ventures for themselves. The study further established that the foreigners spend their financial returns locally rather than at home/area of origin. Finally, the recommendations advanced by the study highlight that the local municipality should strive towards ensuring that foreign nationals are included in the local economic development of the Kwa-Ngwanase District Municipality. / Thesis (M.A.)-University of KwaZulu-Natal, Durban, 2012.