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A Policy Review of Rural and Township Economies in Local Economic Development in KwaZulu-Natal, South Africa

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  • Londeka Thandokuhle Mimi Nxumalo

Abstract

The South African government has shifted socioeconomic policy paradigms from focusing solely on attracting Foreign Direct Investment to Small and Medium Enterprises’ development since they promise to provide a base for the emergence of dynamic and efficient large-scale firms and, consequently, a more flexible and competitive domestic economy. The newly adopted KwaZulu-Natal Township and Rural Economies Revitalization Strategy (2022) is an application of the popular acclaim that Small and Medium Enterprises are engines of economic development. Therefore, there is a need for policies and strategies geared towards promoting local economic development that corresponds with the socioeconomic climate of host communities. The main objective of this paper was to explore the role of rural and township enterprises in implementing Local Economic Development in KwaZulu-Natal. The study utilised a systematic research approach in which data was gathered from journal articles, conference papers, reports, and all the relevant research material was managed. Findings indicate that Small and Medium Enterprises are a characteristic of successful economies. Despite the theoretical shift in economic policies, poverty, inequality, and unemployment plague South Africa. Rural and township areas are still behind urban areas in terms of structural capacity, technology, and economic development. This study highlights the need for the provincial government to revise policies specific to the host area because issues faced by rural economies are peculiar to township economies.

Suggested Citation

  • Londeka Thandokuhle Mimi Nxumalo, 2025. "A Policy Review of Rural and Township Economies in Local Economic Development in KwaZulu-Natal, South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 17(2), pages 40-57.
    • Handle: RePEc:rnd:arjebs:v:17:y:2025:i:2:p:40-57
    DOI: 10.22610/jebs.v17i2(J).4547
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