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View/Open - University of Zululand Institutional Repository

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in such a way that they lead to the establishment <strong>of</strong> self-help activities. An awareness<br />

exercise aimed at explicitly educating the Ulundi community about the said matter will put<br />

the available state funds into its rightful use. The ward councillors, community based<br />

organisations and non-governmental organisations should carry the information to their<br />

respective wards to speed up the process <strong>of</strong> information dissemination. The local radio<br />

station and the print media are also relatively reliable and an efficient means <strong>of</strong><br />

communicating these opportunities to the community.<br />

7.5.4. Other strategies<br />

It is the mandate <strong>of</strong>the Ulundi Local Municipality to attract investors and entrepreneurs. The<br />

municipal authority must also ensure that contracts are awarded to service providers on the<br />

basis <strong>of</strong> merit, otherwise'bona fide' entrepreneurs may back <strong>of</strong>f when it is already a 'fait<br />

accompli' that tenders may only be awarded on the basis <strong>of</strong> race, political affiliation, and<br />

family. It must however be pointed out that preferential procurement with the aim <strong>of</strong><br />

encouraging local companies would be instituted to avoid leakages the economy <strong>of</strong> the area<br />

may experience. All local municipalities compete with each other to attract big businesses.<br />

Ulundi local authority ought to <strong>of</strong>fer inducements to attract business ventures to the area.<br />

Special rebates or tax concessions on rates, for example, on waste and sewerage are some <strong>of</strong><br />

the incentives that need careful and constant scrutiny <strong>of</strong>the municipality. The prices charged<br />

for some <strong>of</strong> these 'factors <strong>of</strong> production' could ultimately determine where an entrepreneur<br />

will establish a business. The Ulundi Local Municipality should therefore go out <strong>of</strong>its way to<br />

accommodate businesses in a mutually beneficial manner. Tax incentives (tax breaks) may<br />

be an excellent way <strong>of</strong> attracting entrepreneurs to one particular local authority area in<br />

preference to another. In the absence <strong>of</strong> a deliberate proactive strategy to influence the<br />

industries into this area, the Ulundi municipality in collaboration with the <strong>Zululand</strong> District<br />

Municipality should therefore constantly review its approach towards new business ventures<br />

with a view to large scale job-creation programmes.<br />

237

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