Document: REDI Case Study: Theewaterskloof Local Municipality

Theewaterskloof Local Municipality in the Western Cape is an agricultural region with growing tourism, construction, financial and business services sectors. Historically, Theewaterskloof has been economically stagnant, with population growth exceeding economic growth rates. There are high levels of inequality in the area with a big divide between farmers, most of who have lived and farmed in the area for generations, and the large pool of unskilled migrants from the Eastern Cape who flock into the area in search of work and a better life. Consequently, the number of unemployed people has grown.

Theewaterskloof was chosen as one of three pilot sites of the DBSA's Rural Economic Development Initiative (REDI), which provided support to develop and implement an economic stimulus plan. In the long term, this will be a diversified and multi-faceted plan. However in the short-term, the plan is focused on a quick win which would build investor confidence while stimulating aspects of the local economy. The intended development impact over the long term is to:

• Increase the financial sustainability of the Municipality by stimulating the local economy and growing the number of rate payers
• Strengthen the tourism sector, seen as a catalyst for growth in the retail, residential and construction sectors
• Strengthen the agricultural sector directly and indirectly through the development of tourism, seen as a complementary sector and diversification strategy for many farmers
• Strengthen the partnership between the local Municipality and its private sector stakeholders and investors
• Unlock private sector investment in the local economy
• Broaden participation in the local economy.

For feedback, comments or to propose your municpality for another LED case study, write to: contact@led.co.za.

Further case studies on the REDI of the DBSA are available for Ugu and Cacadu District Municipalities.