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The Democratic Alliance (DA) in Maluti-a- Phofung (MaP) Local Municipality in the Free State province says the municipality in its draft budget proposal has omitted a budget for local economic development, which is a grave mistake that threatens economic growth in the municipality.
MaP is currently making headlines for wrong reasons in the media, the municipality has been plagued with a plethora of challenges ranging from services delivery, administration irregularities and economic development coupled with a high unemployment rate just to mention a few.
According to Cllr. Richard Khumalo, a DA Councillor in Maluti-a-Phofung Local Municipality, the party will submit formal comments and proposals calling on the Maluti-a-Phofung Local Municipality to amend its 2026/2027 draft budget to include funding for Local Economic Development (LED), SMMEs, agriculture, tourism and rural development, as the current omission threatens economic growth, job creation and business support across the municipality.
Khumalo says without investment in these sectors, communities will continue to face rising unemployment, limited economic opportunities and worsening poverty levels.
“We note that the 2026/2027 draft budget for Maluti-a-Phofung Local Municipality makes no provision for Local Economic Development (LED), SMMEs, Agriculture, Tourism and Rural Development. This department is important for job creation, business support and economic growth.
The omission means there is no funded plan to support small businesses, tourism projects or rural development. This comes at a time when unemployment remains very high across the Free State. Maluti-a-Phofung has economic potential through tourism sites such as the Drakensberg region and Sterkfontein Dam, as well as agriculture and local SMMEs,” said Cllr. Richard Khumalo.
“The DA further notes that municipalities can apply for conditional grants to support economic development projects. These include the Municipal Infrastructure Grant (MIG), the Expanded Public Works Programme (EPWP) Incentive Grant, the Neighbourhood Development Partnership Grant (NDPG), the Comprehensive Agricultural Support Programme (CASP), and the Ilima/Letsema Grant. These grants can assist with tourism infrastructure, agricultural projects, market facilities, rural roads and job creation programmes.
The DA believes that economic development must be prioritised to stimulate investment, create jobs and strengthen the local economy through available conditional grants and partnerships with provincial and national government departments,” he continued.
The Business Weekly has sent a media inquiry to MaP, the municipality is yet to respond.
