South Africa faces difficulties related to the provision of services, which stem from
common challenges related to globalisation, urbanisation, and the divide between the rich
and poor. The country also has to take account of other factors which impact negatively on
economic development. Various stakeholders in the public and private sector, NonGovernmental
Organisations (NGOs) and even communities engage in Local Economic
Development (LED) initiatives. Such efforts include job creation and economic stimulation,
the creation and support of enterprise establishment and development, infrastructure
investment, and attempts to increase the competitiveness in a local area, through the use of
the available physical and intellectual resources. The aim of this theoretical paper is to
focus on the role of LED in addressing the local and global challenges that impact on
service provision and economic development in South Africa. The specific challenges will
be outlined, and LED in South Africa will be discussed in some detail, along with
recommendations to address areas of concern