Assessing the impact of the coronavirus pandemic on Local Economic Development (LED) initiatives in Thulamela Local Municipality

Abstract

In its Integrated Development Plan (IDP), the Thulamela Local Municipality stipulates that its core mandate is to provide a climate that will attract investment and reduce unemployment through the promotion of economic development. In line with the Municipality’s mandate, it has to be pointed out that the most pressing questions that remain are whether local municipalities have in place the plans to revive some defunct infrastructure projects and to make sure that the newly constructed projects are used for the maximum benefit of the local communities. This study assesses the impact of the coronavirus pandemic on Local Economic Development (LED) initiatives in Thulamela Local Municipality. Thulamela Local Municipality is classified as a Category B Municipality and for this study, indicators of economic growth were used as a measure. The variables that were considered are: Growth Rate of National Income Per Capita Income PCI, Per Capita Consumption PCC, Physical Quality Life Index PQLI, Human Development Index HDI, Industrial Progress and Capital Information. Health and Education were used to assess the impact of the coronavirus pandemic on LED initiatives in Thulamela Local Municipality. Purposive sampling, a type of non-probability sampling, was used in this study. Data was collected from the community members and traditional leaders in Budeli Mphireleni Village, SANCO members from Thohoyandou Block F, Traditional leaders from Thulamela Local Municipality, and the people working at Thulamela Local Municipality. A qualitative research methodology was used in this study was used where a desktop review was utilized for data gathering. The Statistical Package for Social Sciences SPSS Version 28 was used for analysing quantitative data and Atlas ti Version 22 was used for analysing qualitative data. The views gathered from participants in this study show that LED programs that were operational in Thulamela Local Municipality during the pandemic included fishing, mining, farming, and services provision. Findings in this study show that the outbreak of Covid-19 greatly affected LED objectives. Thulamela Local Municipality failed to achieve its intended purposes during the pandemic as some resources ended up being diverted to meet other life-saving immediate needs by the national government. Another significant finding from this study is that the municipality alone cannot create jobs or meaningful economic initiatives without partnering with external players and businesses. In proposing recommendations, the strategies that were formulated in this study were informed by v the participants' views. Some of the recommendations are that Thulamela Local Municipality has to strengthen its relationship with stakeholders such as communities and local businesses because it is through these partnerships that the lives of people can be changed. Further, it is recommended that the Municipality must ensure proper management of the projects in the area.