The Department of Science, Technology and Innovation (DSTI) has commissioned the Human Sciences Research Council (HSRC) to establish the Innovation for Local Economic Development (ILED) Centre. In March 2025, a project inception meeting outlined the strategic agenda for the centre for the upcoming year. Following this, the HSRC team began developing a tailored capacity development plan for local economic development (LED) practitioners.

The ILED Centre aims to strengthen LED capacity in municipalities and includes two additional workstreams. One workstream focuses on generating and disseminating knowledge through research, monitoring, and evaluation to infuse innovation into municipal economic development initiatives. The second workstream will act as an advisory hub, enhancing ILED practices and policies through periodic reviews of LED strategic plans. Activities in each workstream will be reviewed annually to maximise collaboration and synergy.

The policy rationale for the ILED Centre is grounded in the National Framework for Local Economic Development (NFLED) 2018–2028, which positions innovation as the driving force behind LED, reshaping how municipalities plan for meaningful impact.

While aspirations for inclusion, improved living standards, and economic sustainability are central to South Africa’s LED policies, these promises have often gone unfulfilled. However, a bold new approach is emerging through the NFLED 2018–2028, placing innovation at the forefront of efforts to combat inequality, unemployment, and poverty at the municipal level. Figure 1 below represents the schematic snapshot of ILED centre strategic workstreams

Figure 1: Schematic snapshot of ILED Centre strategic workstreams