Abstract
M.A.
South Africa has more than 450 rural towns where 10% of the population, comprising about 80% of the
country's poorest of the poor, live. To promote development and prevent the residents of these towns
and the surrounding rural areas from migrating to the larger towns and cities in search of jobs (thereby
putting more strain on the resources available there), it was imperative that these towns and the rural
areas be developed.
This was the ideal aspired to in the seventies and eighties. After two previous attempts the government
stepped in and launched the S.A. Regional Industrial Development Plan (RIDP) in 1982. The plan
identified several smaller towns as potential recipients of special government incentives, to attract
investments from the cities to these communities. Nkowankowa was one of these towns that was
declared as an industrial development point (IDP).
The plan had both economic and political objectives. On the economic side the plan was an attempt at
fostering economic growth and job creation to the benefit of the local communities, while at the same
time alleviating the pressure of urban growth experienced by larger cities. On the political side, it was an
attempt to contain the Black population within the Homelands.
As in the case of similar programmes implemented in other countries, this programme was less
successful in South Africa. Most of the IDP's that showed some early success, soon failed.
Nkowankowa was one of them, It started off well but soon stagnated and even declined.
Data collected from industrialists and Gazankulu Development Corporation (GDC) were analysed using
a frequency and tabulation programme. Most industries were established between 1982 and 1985.
From 1986 the rate of industrial establishment declined, This show that industrial development in
Nkowankowa was less than originally planned.
The high failure rate of industries at Nkowankowa is due to the heavy dependence on incentives,
agricultural and wood inputs. Periods of protracted droughts negatively affected processing industries in
Nkowankowa. The decrease in the amount of incentives also forced firms to close or relocate to
metropolitan areas.
It is recommended that the community in Ritavi district should be assisted with necessary skills to
enable them to gain control over their own economic future. They should become more involved in the
economic development and job creation of this area. More jobs can also be created by expanding
agricultural activities and enlisting the help of tertiary institutions in supporting, training and advising this
community.