From compliance to local economic transformation - new programme at WSG

The future of South Africa’s economy will not be won in national debates but it will be forged in the offices of our local municipalities. 

The Constitution of the Republic of South Africa (1996) establishes Local Economic Development (LED), and municipalities are responsible for facilitating it. Section 152 (c) and Section 153 (a) of the Constitution state that municipalities must promote social and economic development, and they must also structure and manage their administration, budgeting, and planning processes to prioritize the basic needs of the community. 

Through the LED Framework, 2018 – 2028, municipalities are expected to create a conducive business environment, stimulate employment, and foster sustainable development. A conducive business environment means, amongst other things, that municipalities provide basic and infrastructure services necessary to create a healthy investment climate. Further, they are expected to implement institutional structures and develop the institutional capacity and capability necessary to balance growth with development. Since the release of the first LED Framework 2006–2011, there has been notable progress, which includes:

• Integration of LED strategies into the municipal Integrated Development Plans (IDPs)
• More than 30 local economic development agencies (LEDAs) have been established

The implementation of LED continues to be hampered by several barriers, for example, the lack of a shared conceptual understanding of LED between political principals and municipal officials. Some see it as a pro-poor approach while see it as a pro-market approach to addressing socio-economic challenges. The skills deficit and human resource challenges remain major contributing factors. This is contributed to by high proportions of vacancies at the senior level, understaffed LED units, and a lack of capability from those employed to drive economic programmes. Project governance issues and an uncoordinated project approach to developing local economies have also been cited. Overall, there is a lack of institutional arrangements, institutional capacity, and capability necessary to balance growth with development in implementing LEDs. As a result, LED has been relegated to a peripheral function. 

It is for the above reasons that the Wits School of Governance, in collaboration with the Graduate School of Public Policy (GraSPP) at the University of Tokyo, and the South African Local Government Association (SALGA) have introduced an International Executive Education course titled the Local Economic Development Executive Programme. This program is a joint effort between Wits University, which is ranked third in Africa, the University of Tokyo, ranked 20th globally, and SALGA, which represents all 257 South African local governments. The programme aims to utilise the combined expertise of these institutions to improve local economic development skills and competencies.

The LED Executive Programme is designed to transform senior municipal officials into catalytic leaders capable of making LED the engine room of inclusive economic growth and enhanced service delivery. This two-week, high-impact block release journey - culminating in an exclusive study visit to GraSPP, which will equip you to move beyond basic planning. You will master the complex art of converting policy into bankable projects, professionalising LED units, designing resilient public-private partnerships, and applying global governance lessons to South Africa’s unique territorial challenges. The programme is designed to empower participants with the practical skills they need to deliver socio-economic development as enshrined within our constitution. 

"Local government is the first line of defense against poverty and unemployment, yet LED units often struggle with skills deficits, leading to stagnant investment and missed opportunities. This new programme represents a critical step to address this failure head-on. 

“By equipping senior officials with advanced strategic capabilities, we aim to strategically position LED as the engine room of inclusive economic growth, improve service delivery, and professionalise the LED function. This is about turning legislative compliance into economic command, ensuring every official can translate policy ambition into inclusive, sustainable growth for their jurisdiction. The goal for us is to move beyond the cycle of underdevelopment and empower a new generation of local leaders with the advanced tools needed to drive effective local government performance,” said Acting Executive Education Director Raesetsa Hopane.

“The Japan component of this programme is designed to provide global benchmarking through practical, transferable insights into Japan’s holistic vision of local economic development, one that goes beyond business growth and investment promotion. It is about nurturing safe, resilient, and thriving communities, where stakeholders come together to co-create them, said GraSPP Professor Naomi Aoki. 

“Participants will be encouraged to draw powerful comparisons that deepen their understanding, not only of Japan’s approaches to local and regional development, but also of their own systems, their strengths, challenges, and the opportunities that lie ahead. True insight often arises from witnessing and experiencing different models in action,” said Aoki. 

Who should attend?

This certificate is strictly targeted at Senior-Level Officials and Leaders within South African local government who are directly involved in or responsible for overseeing Local Economic Development (LED) and regional planning portfolios.

What you will master:

• Strategic transformation: Analyse LED as a contextual, strategic discipline for structural transformation, ensuring its role as a transversal municipal function.
• Executive leadership: Evaluate the critical role of the executive in professionalising LED units and building robust institutional capacity.
• Bankable projects: Design and implement inclusive growth opportunities through evidence-based decision-making and innovative financing partnerships.
• Resilient governance: Formulate sustainable public-private partnerships and regional infrastructure frameworks for resilient, long-term LED delivery.
• Global benchmarking: Analyse and translate Japanese local governance innovations and multi-stakeholder approaches into actionable LED strategies for the African context.

Apply now: https://courses.wsg.ac.za/c/local-economic-development