Abstract
Most South African municipalities have established departments of local economic development (LED) to propel efficiency, effectiveness, productivity and greater competitiveness in service delivery. Considering this, the Thaba Chweu Local Municipality also established an autonomous agency known as the Thaba Chweu Local Economic Development Agency (Pty) Ltd (Thaleda) to build up the economic capacity of the local area. The study used the Agencification theory in conceptualising the operationalisation of LED programmes at Thaleda. In light of this, the study examined the nexus between local economic development and the agencification of the Thaba Chweu Municipality in Mpumalanga. By so doing, the study unpacked the operationalisation of LEDs through the agencification of Thaba Chweu Municipality. Using the case study approach with data being collected from the extensive review of literature as well as analysed using thematic and content analysis techniques, the study established that Thaleda, as an LED agency, is preferred because it is efficient, effective, competitive, politically neutral and productive. However, Thaleda has been affected by political patronage and lack of robust and adequate municipal by-laws among others. The study, therefore, recommended that Thaleda must generate wealth through purchasing sizeable shares in local industries rather than simply being clients of the national government through grants and annual budget allocations.