THE LOCAL GOVERNMENT SUPPORT FUND (LGSF)

Creating An Investor-Friendly Climate in Limpopo

The Local Government Support Fund (LGSF) assists municipalities to improve the business environment and service delivery capacity related to local economic development. LGSF priorities include:

* Creating sustainable jobs, particularly for the poorer communities of Limpopo;
* Supporting projects which are aligned with the priorities of the Provincial Growth and Development Strategy (PGDS); and
* Supporting projects which are identified in existing LED Strategies and Integrated Development Plans (IDPs).

Examples of the types of projects supported by the LGSF are:

* Strengthening strategic planning and local ownership of LED stakeholders.

- Providing support for design and implementation of LED strategies;
- Integrating LED strategies more effectively into the IDP process and spatial planning.
- Linking LED plans and activities to Municipal Infrastructure Grants.
- Adopting a cluster approach to the LED work of municipalities, which is consistent with the PGDS.
- Facilitating effective participation and consultation of key stakeholders in the planning and implementation of economic activities: for example, through LED Forums.

* Removing obstacles and streamlining business development;
- Streamlining bureaucracy and removing administrative barriers: for example, reducing the time for business registration.
- Improving access to land and buildings for business development.
- Introducing incentives for business development.

* Strengthening the capacity of municipalities to implement LED.
- Training municipal cadres in LED, project management, HRD, organisation and financial management.
- Creating a more effective integration of LED units into municipal activities.
- Improving LED co-ordination between the different levels of government and between government, the private sector and civil society.

* Providing more effective delivery of LED services.
- Improving transparency, access and dissemination of information related to local economic development.
- Providing hard and soft business support infrastructure for SMMEs and start-ups. Examples include business incubators, pack houses, markets, export processing zones, one-stop shops, training.
- Strengthening capacities of organisations providing LED services.

Financial Allocations

The total estimated funds available under the LGSF is R18.3 million. Grants will be awarded to projects for a minimum grant of R500,000 and a maximum amount of R3 million.
The programme can fund up to a maximum of 90% of the total eligible costs of the project, with the remaining balance being funded by another demonstrated source of funding.

Who can apply?

The main target groups are local government bodies and include the following organisations:
- District Municipalities.
- Local Municipalities.
- Provincial government and government-funded bodies (as defined by the PFMA and MFMA/2003).

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