The Dr AB Xuma local municipality claims the most youthful population, as well as the highest rates of poverty and unemployment, in the district of Chris Hani, coupled with a high dependency ratio.
The economy is underperforming and failing to create needed jobs and revenues.
A dedicated local economic development strategy has been developed to guide interventions in turning this situation around.
The municipality’s low productivity points to the low GDP per worker be it formal or informal, a relative shortage of skills available to the economy, old spatial set-up and low economic growth.
I give this background to applaud the rural municipality on the giant steps taken to bring the shopping mall in Ngcobo to reality.
A recent sod-turning event for the much-anticipated Ngcobo Mall has been viewed by local business pundits as a transformative chapter in the economic and social development of this small Eastern Cape town.
The mall, orchestrated by the municipality and championed by Dr Sisa Ngebulana’s Billion Group, is valued at R200m and will surely provide a much-needed economic facelift for the town.
The project is set to bring far-reaching benefits to the local community, including job creation, SMME development, economic growth and expanded retail access, all while positioning Ngcobo as an emerging hub for future infrastructure investment.
At the sod-turning event, Ngebulana gave insight into the enormous development which is scheduled to house 41 tenants, with 34 spaces already secured by a mix of international brands and established local businesses.
The purpose of a public-private partnership is to leverage private sector expertise, innovation and capital to deliver public services and infrastructure more efficiently and effectively.
These partnerships aim to transfer financial and operational risks to the private party, provide budgetary certainty for the government, and improve the quality and efficiency of public services.
Building shopping malls can increase economic development by creating jobs, stimulating local business growth and attracting further investment in an area.
These centres act as economic engines which provide employment opportunities during construction and operation, serve as platforms for retailers to thrive, and can boost the overall appeal of the surrounding community for future commercial and residential development.
Since 1994, from the RDP through the Growth Employment and Redistribution strategy to the Accelerated Shared Growth Initiative of SA, the government has embarked on several initiatives aimed at altering the structure of the SA economy and addressing the legacy of apartheid.
However, the articulation between these structural change interventions and the spatial dimensions of poverty and economic exclusion have seldom been explicit.
Historically, this has had a major and detrimental impact on how local economic development is conceptualised and practised within the rural municipalities, more like Dr AB Xuma in the Greater Ngcobo, Mbhashe and Mnquma local municipalities.
The purpose of local economic development in the small rural towns is to build up the economic capacity of an area to improve its economic future and the quality of life for all.
It is a process by which public, business and non-governmental sector partners work collectively to create better conditions for economic growth, employment generation and sustainable development.
Infrastructure growth and new retail developments often lead to road upgrades, better public transport accessibility, and improved utilities.
Increased property value areas surrounding thriving shopping centres often see higher demand and value appreciation, benefiting homeowners and investors.
Shopping centres today are more than just retail spaces — they include dining, entertainment, healthcare services and community gathering points.
While national brands and anchor tenants are essential for foot traffic and visibility, local businesses bring character and authenticity to retail spaces.
Local businesses retain money within the community, supporting local suppliers, artisans and service providers.
They create a unique shopping experience which differentiates a centre from others.
They foster community loyalty, with shoppers preferring to support home-grown brands.
To maximise benefits and mitigate harm, it is crucial for municipalities and developers to consider the specific context and implement strategies to support local businesses and ensure equitable outcomes for all residents.
Mzontsundu Ngceba is a public servant and ward 05 inhabitant of the Dr AB Xuma local municipality, Ngcobo. He writes in his personal capacity.
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