M.Tech. Business Administration. Business School. / he greatest challenge that the City of Tshwane is facing lies in achieving the target growth rate set by ASGISA (Accelerated Shared and Growth Initiative), the latter being a national initiative, by enabling communities to become active participants within the growing economy. One of the enablers that were identified by the Municipality was co-operatives. The successful implementation of the co-operative model within the City of Tshwane will depend on the correct guidance provided by the Municipality to the co-operatives as opposed to dictating the terms of business to the members. These findings will be based in best practice models as found world-wide. The primary objective of this dissertation is to research the legal impact of the Co-operatives Act of 2005 on the City of Tshwane Metropolitan Municipality's Co-operative Strategy as a vehicle for local economic development.