Local Economic Developmentbig hole



Local Economic Development (LED) is an unending course of action determined by local stakeholders from diverse communal sectors, which entails group effort and teamwork, with the co- responsibility of linking the public and private sector for economic development within the Sol Plaatje municipal area.

The purpose of local economic development is to:

  • build up the economic capacity of the area to improve its economic future and quality of life for all these done through the creation of unique advantage for the local and its social partners
  • tackle market failures, and
  • remove bureaucratic obstacles for local businesses.

The Council of Sol Plaatje through the LED Unit aims to enable local stakeholders to mutually devise and implement a development strategy which fully exploits local resources and capacities, and effectively utilise the area's comparative advantages.

The ultimate goal of LED Unit is to empower local participants to effectively utilise business enterprise, labour, capital and other local resources to achieve local priorities (e.g. promote quality jobs, reduce poverty, stabilise the local economy, and generate municipal taxes in order to provide better services).

The LED Unit will advise the local economy of risks and opportunities and increase pressure on local economies to participate internationally and become accustomed to global economic forces. It will also open prospects to attract new markets and investors. The LED Unit should not, however, be viewed only as an integration tool which provides access into external markets. While the integration into external markets is an important driving force, there are many areas, particularly in the Sol Plaatje municipal area, that have not yet been touched by the forces of globalisation. Nevertheless there are opportunities to strengthen the local economic cycles, make local opportunities visible, close gaps with regard to services or inputs into local economic activities, and stimulate interaction between local businesses.

The approach of the LED Unit to economic development takes place together with the global trend of decentralising power from national to local government. The SPM Council believes decentralisation is often a function of democratisation which encourages a broader participation of citizens on issues dealing with economic development that will determine the livelihoods of citizens within the area.

The LED Unit offers a non-traditional, inter-disciplinary blend of elucidation and advance which sheds new light on how to triumph over multiple inter-related obstacles, such as low skills levels, lack of entrepreneurial mind-set or culture, unsuitable or fragile support instruments, hindering regulatory surroundings and lack of access to financial and business development services. LED Unit combines these concepts and tools to improve an area's locality factors by tapping into the comparative and competitive advantages of Sol Plaatje’s region, the potentials of natural resources as outlined in both Provincial Growth Development Strategy (2004) and District Growth and Development Strategy (2007).

At hand, the LED Unit has a number of important potential areas of intervention - and intervention strategies that are used. Basically four fields of plan action are employed in the LED Unit for economic development initiatives:

  • SMME Support to create an enabling environment for businesses to sustain themselves,
  • Tourism Promotion for the development of the tourism sector and also support of the local tourism entrepreneur,
  • Area Based Development for creating and developing the jurisdiction of Sol Plaatje Municipality which aims at enhancing the image of the City of Kimberley and its surrounds in a sustainable way; and
  • Investment Promotion enabling both local and external role-players to develop the necessary capacities for Sol Plaatje Municipality through investment channels.

Sol Plaatje Municipality believes that the strengthening of its competitiveness is through development of "hard" or tangible factors such as the quality of business infrastructure to "soft" or intangible factors such as the general image of a town, however not all these aspects have the same relevance for all investors or companies.

The most relevant inventions to enhance the Sol Plaatje Municipality are amongst others:

  • Creating a favourable Business Environment (Red Tape Reduction, One Stop Shops, Business Climate)
  • Location Marketing and Investment Promotion
  • Utilising local natural resources to stop bleeding out of the region.



Urban Development Zone

UDZIn 2003, the Minister of Finance. Trevor Manual introduced a tax incentive an incentive to encourageinvestment in areas with high population carrying capacity, central business district or inner cityenvironments and areas with developed urban transport infrastructure.
This incentive has been effected by the insertion of section 13 quart into the act.
The tax incentives, where claimed, reduces the taxable income of taxpayer.

The UDZ Tax Incentive Presentation

Solplaatje Municipaliity UDZ Process

UDZ Dermacation



Contact: Person:
Mr. Phetole Sithole
General Manager
+27 53 830-6211
+27 82 784-7428
+27 86 557-8606