Issued by: Government and Communication Information
National government has demonstrated its commitment to support local initiative and innovation, through the establishment of the Local Economic Development Fund and the Social Plan Fund. Municipalities taking forward the developmental mandate through actively promoting economic development, may be assisted by these Funds. These Funds are open for immediate application, and are dependent on projects meeting the set criteria, funds will be approved within a month of receipt of business plans. The LED Fund
The LED Fund provides financial support (up to a maximum of R 1.5 million) to particular municipalities engaging in projects that will impact on job creation and poverty alleviation. Those qualifying for the fund are Municipalities:
For this financial year 42 million rands will be made available for this fund to be a success.
The Social Plan Fund
The Social Plan is a direct outcome of the 1998 Job Summit, formalizing a collective response by government, organized business and organized labour, to large-scale retrenchments in South Africa. The Social Plan has three 3 phases namely :
PHASE 1 : Save Jobs;
PHASE 2: Manage Retrenchments
PHASE 3: Regeneration of Local Economies.
The aim of the Social Plan Fund is to provide financial assistance to municipalities to undertake a 'Local Economic Regeneration Study'. A Guideline Document on the required content of such a study is available from the Department of Constitutional Development and will be distributed to municipalities once assistance from the Social Plan has been approved. Grants of R50 000 will be transferred to municipalities for this Study. The main outcome of this Study will be a `business plan' for the municipality that can be submitted to the 'Regenerating Local Economies' programme steering committee which has representation from key government departments.
For this financial year 3 million rands will be set aside for phase 3 of the fund managed by DCD.
We believe that this initiative goes a long way in making the vision of accelerated delivery a reality. We hope that municipalities will embrace this opportunity and put to good use the funds that will be allocated to them. At the end of it all our people must feel the impact of this intervention in poverty relief and improved servicedelivery, if we are to lay claim to any success.
Issued by the Ministry For Provincial and Local Government
Friday 27 August 1999
For More Information:
Please Contact Onkgopotse JJ Tabane 082 4656166