i Exploring South Africa’s Renewable Energy Programme and its Potential Role in Khutsong Township Economic Development. Student Name: Phemelo Michelle Mashamaite. Student Number: 2386524 Module: PADM7213A. Supervisor: Dr Kagiso Pooe. Final Submission Date: 16 February 2024. This research was submitted to the faculty of Commerce, Law, and Management, University of Witwatersrand School of Governance, in fulfilment of the requirements for the Master of Management in Public Policy Degree. ii Student’s Declaration. I, Phemelo Michelle Mashamaite (Student Number: 2386524), hereby declare that this research dissertation, titled "Exploring South Africa’s Renewable Energy Programme and its Potential Role in Khutsong Township Economic Development," is my own work and has only been submitted to the University of Witwatersrand School of Governance in order to fulfil the Master of Management in Public Policy course requirements. iii Dedication. I, Phemelo Michelle Mashamaite, would like to dedicate this study to my late queen mother, Lorraine Mokabai Mashamaite, a.k.a Mother of All Nations. I was beyond blessed to have you as my mother, prayer warrior and confidant. I was privileged to have shared you with many other children you were responsible for educating. Thank you for all the sacrifices you made to see me succeed and the pearls of wisdom you ushered in my life to pursue my academic and career aspirations. iv Acknowledgements. This Master Research Report would not have been accomplished without the love and spiritual support of my heavenly father, who blessed me with peace, comfort and a believing heart, continuously enlightening my mind with the power of the holy spirit that enabled me to execute the purpose he has ordained me to fulfil on earth. I thank him for preparing me to be discovered as an intellectual. I am overwhelmed in all humbleness and gratefulness to acknowledge my lovely aunt Stacey Mpati Mashamaite indeed mmangwanaka o ne wa e tshwara thipa kafo bo galeng (translates as a younger version of my mother who went to many lengths protecting my siblings and me) and lovely grandmother Rinah Mannthebe Mashamaite for being our family anchor and your powerful prayers, to my three younger brothers, Reagoboka, Thebe, and Motheo Mashamaite, who have inspired me to keep pushing boundaries, I hope my accomplishment will inspire you all to become exceptional young men in the near future. To Bab’Khuboni, my partner, thank you for your understanding and never-ending words of encouragement, above all, for always being there for me in the highest and lowest moments in my life words cannot express my gratitude. I would love to acknowledge Dr T.K.(Kagiso) Pooe, my supervisor. Thank you for your unwavering support and guidance in helping me materialise my research interests into a reality. It would not have been possible without your constructive feedback, which helped structure and improve my master’s thesis. To the great Prof Cotsa Hofisi, thank you for being my mentor, enhancing my academic journey not for once doubting my intellectual capabilities and always encouraging me to pursue one degree further. I would also like to extend my appreciation to all the Khutsong township-based SMMEs who opened their doors and welcomed a stranger to delving into their business realities and the Merafong City Local Municipality who allowed me to conduct my research project amidst their operating hours. Their voluntary participation in this research project is highly appreciated; as to your participation, this project was successful. I am incredibly thankful to the Human Sciences Research Council (HSRC) for the financial assistance contributed towards my research; therefore, the opinions and conclusions expressed in this study are those of the author and cannot be credited to the HSRC. Lastly, I would like to thank the Wits School of Governance staff for their indirect help with this research project. v Abstract. The South African government has initiated the REI4P, a pioneering large-scale renewable energy competitive tender aimed at diversifying power generation through private sector involvement. This procurement strategy addresses the national service delivery of electricity insecurity by promoting alternative renewable sources. However, a notable gap exists in the planning and implementation systems of the REI4P, lacking a clear framework for integrating informal township-based SMMEs into the emerging renewable energy landscape. This study investigates how Merafong City can leverage the REI4P as a catalyst for LED to concurrently facilitate the seamless integration of Khutsong Township-based SMMEs. The research affirms the existence of regulatory frameworks that MCLM can leverage the REI4P into an LED initiative. Furthermore, it identifies the MCLM’s potential to transform into a Local Renewable Energy Development Zone, offering a strategic solution to challenges linked with the impact of electricity insecurity in Khutsong SMMEs business operations. Addressing these challenges is crucial for alleviating poverty, reducing unemployment, and mitigating social issues such as crime and drug abuse in the township. Despite these potential benefits, the study highlights barriers to successful implementation, particularly the absence of a clear framework for integrating informal township-based SMMEs into the renewable energy landscape. Additionally, challenges in MCLM audit performance pose substantial obstacles to both renewable energy integration and the development of Khutsong SMMEs and LED. This research demonstrates the need for comprehensive strategies to address these barriers and maximise the positive impact of the REI4P on both economic development and social well- being in Merafong City. Key Words: Renewable Energy Independent Power Procurement Producers Programme; Merafong City Local Municipality; Khutsong Township Economic and Skills Development; Local Economic Development. vi Table of Contents. Contents Student’s Declaration. ii Dedication. iii Acknowledgements. iv Abstract. v Table of Contents. vi List of Figures. xi List of Tables. xi Acronyms. xii Chapter 1. 1 Introduction and Background. 1 The Potential Role of South Africa's Renewable Energy Initiative for Khustong’s SMME Development and Township Economy. 1 1.1.Introduction. 1 1.2. Background. 2 1.3. Problem Statement. 4 1.4. Aim. 5 1.5. Research questions. 5 1.5.1. Main Research Question. 5 1.6. Research Objectives. 6 1.6.1. Main Research Objective. 6 1.6.2. Sub-Research Objectives. 6 1.7. Literature Review. 6 1.8. Central Theoretical Framework. 7 1.9. Research Methodology. 8 1.10. Research Ethical Considerations. 8 1.12. Report Chapter Outline. 9 1.13. CHAPTER SUMMARY. 10 Chapter 2. 11 Literature Review. 11 Local Economic Development and Township Economy: A Focus on the Role of Procurement and Renewable Energy Integration. 11 2.1. Introduction. 11 2.2. An Overview of Policy Incoherence and Its Effects on Local Economic Development. 11 vii 2.2.1. Historical Context, Foundational Principles, and the Crucial Role of Local Economic Development in Empowering Local Communities. 12 2.2.2. Challenges and Prospects for Inclusive LED in South African Municipalities: Insights from Policy Incoherence and Procurement Issues Local Government. 13 2.3. Partial Renewable Energy Integration and Procurement Practices on Local Economic Development. 15 2.3.1. Renewable Energy Integration and the Interconnectedness of Energy and Economic Sustainability in South African Municipalities. 16 2.3.1.1. An Overview of Renewable Energy Integration and Municipal Initiatives. 16 2.3.1.2. The Evolving Renewable Energy Landscape, Business Models, and Economic Sustainability. 17 2.3.1.2.1. Renewable Energy Integration Procurement Practices. 18 2.3.2. An Overview of The State of Public Procurement Practices in Local Government. 19 2.3.2.1. The State of Public Procurement in South Africa’s Municipalities. 20 2.3.2. Renewable Energy Integration Procurement Legislative Frameworks. 21 2.3.2.1. Key Renewable Energy Integration Legislative Frameworks. 23 2.3.2.1.1. The White Paper on Energy Policy, 1995. 23 2.3.2.1.2. The White Paper on the Promotion of Renewable and Clean Energy Development, 2002. 24 2.3.2.1.3. The White Paper on the Renewable Energy Policy, 2003. 24 2.3.2.1.4. The Integrated Energy Plan & the Integrated Resource Plan. 24 2.3.2.2. Key Public Procurement Legislative Frameworks. 25 2.3.2.2.1. The Public Finance Management Act, 1999. 25 2.3.2.2.2. Preferential Procurement Policy Framework,2000. 25 2.3.2.2.3. Local Government Municipal Financial Management Act,2003. 26 2.3.2.2.4. Broad-Based Black Economic Empowerment,2003. 26 2.4. Effects of Electricity Insecurity on SMMEs: Implications for the Local Economy and Development Profile of Merafong City. 27 2.4.1. Effects of Electricity Insecurity on South African SMMEs. 28 2.4.2. Contextualizing Khutsong Township: An Overview of Merafong City ‘s Economic and Development Profile. 29 2.5: CHAPTER SUMMARY. 31 Chapter 3. 33 Research Methodology. 33 3.1. Introduction. 33 3.2. Research Setting. 34 3.3. The Research Design and Methodology. 36 3.3.1. The Qualitative Research Approach. 36 viii 3.3.2. Case Study Method. 37 3.4. Research Population and Sample Criteria. 38 3.4.1. Population. 38 3.4.2. Sample. 39 3.5. Data Collection Strategy. 41 3.5.1. Semi-Structured Interviews. 42 3.5.2. Survey Questionnaire. 42 3.6. Data Analysis Approach. 42 3.7. Research Limitations, Delimitations and Feasibility. 44 3.7.1. Limitations. 44 3.7.2. Delimitations. 45 3.7.3. Feasibility. 47 3.8. The Research’s Ethical Consideration. 47 3.9: CHAPTER SUMMARY. 48 Chapter 04. 49 Presentation of Findings and Discussions. 49 Exploring the REI4P Potential in Khustong’s Township Economic Development: Leveraging REI4P for Inclusive Local Economic Development. 49 4.1. Introduction. 49 4.2. The Impact of Electricity Insecurity on Khutsong Township-based SMMEs. 49 4.2.1. Challenges of Electricity Insecurity in Optimising Khutsong Township-based SMME Business Operations. 53 4.2.2. Challenges of Electricity on Khutsong Townships' Local Economy and Development. 56 4.3. Exploring the Merafong City Leveraging the REI4P as a Catalyst for LED: Empowering Khutsong Township SMMEs. 58 4.3.1 The Role of Merafong City Local Government in leveraging the REI4P as a catalyst for LED. 58 4.3.2. Examining Merafong City's Rooftop Solar Radiation. 58 4.3.4. Amend the Merafong City Local Municipality Integrated Development Plan (IDP). 60 4.3.5. Craft a Climate Change & Renewable Energy Efficiency Strategy. 61 4.4. Contextualizing Merafong City ‘s Economic Development Profile and Potential Barriers of Renewable Energy Integration. 72 4.4.1. Merafong City ‘s Economic and Development Profile Contextualizing Khutsong Township. 72 4.4.2. An analysis of Potential Barriers of Renewable Energy Integration in Merafong City. 74 4.5. Key Legislative Frameworks that can operationalise the REI4P as an LED Initiative. 77 ix 4.5.2. Leveraging Existing Legislative Foundations to Drive REI4P as a Catalyst for Local Economic Development. 78 4.5.2.1. The Integrated Resource Plan,2003. 78 4.5.2.2. The Integrated Resource Plan,2019. 80 4.5.2.3. Electricity Regulation Act (ERA), No. 4 of 2006: Amendment to Schedule 2 & The Electricity Pricing Policy, 2008. 81 4.5.2.4. Energy Act, No 34 of 2008. 83 4.5.2.5. Integrated National Electrification Programme (INEP) 2012/2013. 84 4.5.2.6. The Draft National Energy Efficiency Strategy, 2016. 85 4.5.2.7. The Local Government Municipal Systems Act (MSA), No. 32 of 2000. 86 4.5.2.8. Preferential Procurement Policy Framework Act (PPPFA) 2000: Preferential Procurement Regulation, 2017. 88 4.5.2.9. Township Economic Development Act 2022. 89 4.4.2.10. A set of rules, standards, and regulations will govern the implementation of the REIPPPP at the micro-municipal level. 90 4.6. Fostering Skills Development and Economic Growth in Khutsong Township's Economy Through the REIPPPP Strategy. 92 4.6.1. Introduction. 92 4.6.2. Khutsong Township-based SMMEs Renewable Solar Energy Skills and Knowledge Gap. 93 4.6.3. Merafong City REI4P in Khustong’s Economic and Skills Development. 98 4.6.3.1. Khutsong SMME Education, 99 4.6.3.2. Khutsong SMMEs Skills Development: 100 4.6.3.3. Khutsong SMMEs Development and Employment Opportunities: 102 4.7: CHAPTER SUMMARY. 103 Chapter 5. 105 Conclusion and Recommendations. 105 5.1. Introduction and Conclusion. 105 5.2. Recommendations. 106 5.3 Research Contributions. 108 5.4 Knowledge Gaps for Future Research. 108 Reference List. 109 Appendices 126 Appendix 1: Township-based Small Micro-Medium Enterprises (SMMEs). 126 Appendix 2: Types of Roofing Infrastructure. 130 Appendix 3: Merafong Local Municipality Officials: 1) Local Economic Development, 2) Water & Lights 3) Finance, and 4) SMME Business Development. 131 x Appendix 4: Merafong Local Municipality Official :1) Skills Development. 132 Appendix 5: Participation Consent Sheet. 133 Appendix 6: Consent Form for Audio Recording of Study Participation. 134 Appendix 7: Merafong City Local Municipality Permission Letter. 135 136 Appendix 8: Ethics Clearance Certificate. 136 137 Appendix 9: Ethics and Title Approval Letter. 137 xi List of Figures. Figure 3.1: A snapshot of the research interest area Khutsong. ............................................... 34 Figure 3.2: A snapshot of the research interest area Khutsong. ............................................... 34 Figure 3.3: A snapshot of the research interest area Khutsong South. .................................... 35 Figure 3.4: Khutsong SMMEs Sample Population. ................................................................. 44 Figure 4.1: Khutsong SMMEs Business Operation Reliant on Electricity Security. .............. 50 Figure 4.2: The Merafong City Local Municipality Direct Normal Irradiation (DNI). .......... 58 Figure 4.3: The Gauteng Province and West Rand District Municipality Solar Radiation Map. .................................................................................................................................................. 59 Figure 4.4: Khutsong SMMEs' awareness and knowledge about the REI4P. ......................... 76 Figure 4.5: Khutsong SMMEs REI4P Knowledge and Awareness Gap. ................................ 95 Figure 4.6: Khutsong SMME Owner's Interest in Green Education and Skills Development. .................................................................................................................................................. 97 List of Tables. Table 4.1: Thematic Analysis: Electricity Insecurity on Khutsong SMMEs, Local Economy and Development. .................................................................................................................... 50 Table 4.2: The Merafong City Local Municipality Climate Change & Renewable Energy Efficiency Strategy Tactical Objective Number 1: Renewable Energy Development. ........... 62 Table 4.3: The Merafong City Local Municipality Climate Change & Renewable Energy Efficiency Strategy Tactical Objective Number 2: Local Energy Governance. ...................... 64 Table 4.4: The Merafong City Local Municipality Climate Change & Renewable Energy Efficiency Strategy Tactical Objective Number 3: Electricity service and Business Model. . 65 Table 4.5: The Merafong City Local Municipality Climate Change & Renewable Energy Efficiency Strategy Tactical Objective Number 4: Municipal Own Energy Efficiency. ........ 67 Table 4.6: The Merafong City Local Municipality Climate Change & Renewable Energy Efficiency Strategy Tactical Objective Number 5: Energy Efficiency in the Residential & Commercial Sector................................................................................................................... 69 Table 4.7: The Merafong City Local Municipality Climate Change & Renewable Energy Efficiency Strategy Tactical Objective Number 6: Energy Access for all. ............................. 70 Table 4.8: Thematic Analysis: Potential Barriers to Renewable Energy Integration in Khutsong Township. ................................................................................................................ 74 Table 4.9: Thematic Analysis: Empowering Township SMMEs through Renewable Energy Education and Skill Development. .......................................................................................... 93 xii Acronyms. AG Auditor General ATMs Automatic Teller Machines BA Bachelor of Arts B-BBEE The Broad-Based Black Economic Empowerment CBD Central Business District CEO Chief Executive Officer CIPC Companies and Intellectual Property Commission CO2 Carbon Dioxide CoJ City of Johannesburg's COP Conference of the Parties COVID-19 Coronavirus Disease CSI Corporate Social Investment CSM Case Study Method DFFE Department of Forestry, Fisheries and Environment DHET Department of Higher Education and Training DHET Department of Higher Education and Training DNI Direct Normal Irradiation DoE Department of Energy EEDSM Energy Efficiency Demand-Side Management EMEs Exempted Micro Enterprises EPWP Extended Public Works Programme ERA Electricity Regulation Act, No. 4 of 2006: Amendment to Schedule 2 ESI Electricity Supply Industry ESSP Environmental Sector Skills Plan ETA Experiential Thematic Analysis EWSETA Energy and Water Sector Education and Training Authority FBAE Free Basic Alternative Energy G20 Group 20 GCR Gauteng City-Region GDP Gross Domestic Product GGT Growing Gauteng Together 2030 GHG Greenhouse Gas GIS Geographic Information System GRAP South African Standards of Generally Accounting Practice IDP Integrated Development Plan IEP Integrated Energy Plan IPA Interpretive Phenomenological Analysis IPPs Independent Power Producers https://docs.google.com/document/d/1ccqKe7umLOnLQLDG7VM_jsxhgsISV6QL/edit#heading=h.kgcv8k https://docs.google.com/document/d/1ccqKe7umLOnLQLDG7VM_jsxhgsISV6QL/edit#heading=h.kgcv8k xiii IRP Integrated Resource Plan ISA International Standards for Auditing kW/h kilowatt per Hour LED Local Economic Development LEGS Local Government Equitable Share MCLM Merafong City Local Municipality, MEPS Minimum Energy Performance Standards MEPS Minimum Energy Performance Standards MerSETA Manufacturing, Engineering and Related Services Sector Education and Training Authority MES Minimum Emission Standards MFMA Municipal Financial Management Act MIG Municipal Infrastructure Grant MW megawatts NCCR National Climate Change Response NDP 2030 National Development Plan NERSA National Energy Regulator of South Africa OCM Optimum Coal Mine OECD The Organization for Economic Co-operation and Development PFMA Public Financial Management Act PPPFA Preferential Procurement Policy Framework Act 2000: Preferential Procurement Regulation, 2017. Q Quatre REDZs Renewable Energy Development Zones REI4P Renewable Energy Independent Power Procurement Producers Programmes SA South Africa SAGEN South-African German Energy Programme SALAG South African Local Government Association SAPIVA South African Photovoltaic Industry Association SAREM South African Renewable Energy Masterplan SARETEC South African Renewable Energy Technology Centre SBI The Small Business Institute SCM Supply Chain Management SDF Spatial Development Framework SDG Sustainable Development Goal SDM Sedibeng District Municipality SETA Sector Education and Training Authority SHMT Stakeholder Management Theory SHS Solar Home Systems SLA Service Level Agreement xiv SMEs Small Medium Enterprises SMMEs Small Micro-Medium Enterprises. SSEEG Solar Small-Scale Energy Embedded Generator Stats Statistics TA Thematic Analysis TER Gauteng Township Economic Revitalization strategy TNA The New Age UN The United Nations WRDM West Rand District Municipality WSSD World Summit on Sustainable Development 1 Chapter 1. Introduction and Background. The Potential Role of South Africa's Renewable Energy Initiative for Khustong’s SMME Development and Township Economy. 1.1. Introduction. The evidence highlighted in the final report of Eskom's inquiry (2018:12) indicates that the South African power parastatal's high operational capacity that undertook a massive electrification campaign in 1994, to perform public functions such as producing, transferring, and distributing approximately 95% of South Africa's power, providing essential service delivery needs of citizens as a result of high calibre leadership with a soaring moral compass is captured by administrative corruption, the culture of non-payment and electricity theft these claims supported by Eberhard (2001:06). Consequently, the key factors that have brought it to its dysfunction promoting mediocre governance have evolved into a national service delivery crisis known as load-shedding, influencing good service delivery while concurrently infringing on citizens' fundamental rights outlined in section 5(1) of the National Energy Act 34 of 2008. To provide reliable and affordable electricity, characterised by an extrapolating effect on the operation of township-based SMMEs of Khutsong. In an attempt to mitigate the shortfall in the grid demand power supply, the South African government proposed the adoption of the Renewable Energy Independent Power Procurement Producers Programmes (REIPPPPs) energy technology initiative as an attempt to address the national service delivery crisis, according to Eberhard (2001:06). However, the proposed Electricity Supply Industry (ESI) municipal business model and the 2019 IRP, critical renewable energy economic blueprints adopted by the South African government to operationalise the REIPPPP, have not stipulated how township SMMEs within the local municipality jurisdiction comprising of township-based SMMEs that suffer the downside of Eskom's problems will be factored into the model and REIPPPP planning systems. There are limited studies on the role of the REI4P in strategically integrating informal businesses, such as Khutsong township-based SMMEs, to stimulate Local Economic Development (LED). 2 This research aims to explore whether the Merafong City Local Municipality (MCLM) can leverage the REI4P as a catalyst for LED to yield a deep understanding of such parameters in academic research. 1.2. Background. According to Mbembe (2001:25) and Mamdani (1996: 05), South Africa was buttressed by the right of conquest, which overthrew and destroyed the political systems and native institutions in its crudest form to fulfil its instituting role to create an enabling environment to exercise colonial sovereignty by enacting the Native Land Act of 1913, which served as the first legislative prescript of territorial segregation, passed by the union of 1910 restricting native Africans into Bantustans comprising of rural and township communities characterised by grotesque living conditions, poor infrastructure and allocation of resource such as the case study area this research selected known as Khutsong. A township within the Carletonville Merafong City Local Municipality (MCLM), located on the outskirts of the West Rand District Municipality (WRDM), officially proclaimed as an African mining compound township in 1959 which can be conceptualised as a residential dwelling initially developed for a small population of mine workers. Characterised by the rapid growth of informal settlements and higher population densities, a local economy that has been predominantly sustained by a struggling gold and uranium mining sector is on the brink of collapsing. According to the West Rand District Municipality's development profile and model (2020:23) and the Gauteng Township Economic Revitalization Strategy (2018:15), this township's economic mainstream was historically entrenched with conservative fiscal regulation and a resistant culture to lending township entrepreneurs start-up capital, making it extremely hard for Khutsong township SMMEs to compete with well-established companies within a monopoly, due to the nature of economic policies that tend to ignore the potential of township- based SMMEs, which face a lack of access to business networking, skills development, mentorship, financial support, and human capital while simultaneously suffering the consequences of Eskom's problems. The freedom charter redeemed South Africa, granting it the authority to make its independent decisions to shift its policy-making. Therefore, the post- apartheid government of 1994 needed to address the massive gap of underdevelopment and inequality left by the apartheid legacy of systematic marginalisation deliberately sought to underdeveloped rural and peri-urban areas, maintains van Niekerk (2012). 3 In light of a democratic dispensation, the post-colonial government through the Reconstruction Development Programme (RDP), the first social democratic welfare policy intervention that was aimed at eradicating and redressing the grotesque social, economic and geographic patterns of deprivation and inequalities that were inherited from the apartheid regime, according to the South African History Online (2019:01). According to Mokoena (2019), Rogerson and Nel's (2016), Cohen's (2010:11), and Sibisi (2009:01), the RDP served as a cornerstone of government development policy, creating an environment for the democratic government to establish an essential tool aimed at creating an enabling and conducive environment to enhance South Africa's economic growth. Prioritising resource redistribution and promoting inclusivity by favouring previously disadvantaged groups, such as townships and their SMME businesses, in the national policy planning and implementation systems for local communities with a shared interest to form a collaboration working together. To improve the quality of their lives through activities that can help them achieve sustainable economic growth, conceptualised as Local Economic Development (LED) crafted to address the socio-economic injustices colonial sovereignty imposed on local communities in rural and township areas. It is crucial to highlight that most South African municipalities comprise the township-based SMMEs that comprise township economies. They trace their origins to colonial sovereignty, which segregated and displaced proletariat human settlements on the outskirts and peripheries of central business districts to supply cheap labour to core economic centres within cities. Therefore, 80% of Gauteng's population resides in townships and informal settlements confined to the periphery of the Gauteng economy. According to Scheba and Turok (2019), their economy is captured by the consequences of their apartheid predecessors' economic and social marginalisation and is therefore suffering from persistent socio-economic challenges such as concentrated poverty and the absence of economic transformation, which continue to widen the inequality gap in a free democratic government. These informal economies are located far from economic opportunities and need more access to entrepreneurial networks, restricting their access to the formal market value chain. The effect of low investment in socio- economic welfare drives and contributes to the high unemployment, poverty, and inequality rates in South Africa. 4 It is essential to highlight that these townships simultaneously suffer from an extrapolating effect that disrupts mining and SMME business operations, a chronic and grotesque national service delivery crisis regionally recognised as load-shedding. The consequence suffered by township areas hinders their potential role in contributing to the South African economy through creating employment opportunities, reducing poverty, and creating economic wealth because they account for 17% of the Gross Domestic Product (GDP) according to Statistics (Stats) South Africa (SA) Quatre (Q) 2 (2021). In 2008, the South African National Treasury conducted an extensive evaluation with the South African Network Infrastructure Review on electricity; therefore, Newbery and Eberhard (2008:05) highlight that the evaluation affirmed that more attention needs to be paid to reforming the South African energy sector, making it a significant issue of immense importance. According to Yuen (2014:12), the South African energy sector's current vertically integrated electricity supply industry model has been compromised by administrative corruption, a culture of non-payment and electricity theft. The White Paper on Energy Policy, 1998, and the White Paper on the Promotion of Renewable and Clean Energy Development, 2002, are a set of blueprints that acknowledge and inform the establishment of the IRP for 2010. An Energy Efficiency Demand-Side Management (EEDSM) resource plan was promulgated in 2011 in support of the voluntary pledge South Africa made to reduce its carbon dioxide emissions by 42% by 2025 at the Conference of the Parties (COP) 15 Climate Conference to combat climate change since Eskom is primarily dependent on a non-renewable resource such as coal, to produce and supply electricity maintains Zeng, Lui and Nan (2017). The reactive hybrid system of mixing energy is forecasted to provide a flexible grid power supply worth 8.5 billion dollars and financed by COP26 to mitigate the shortfall in the grid demand for power supply, according to Scholtz, Mulaudzi, Kitzinger, Mabaso, and Forder (2017:08) and the Renewables Global Status Report (2020:49). 1.3. Problem Statement. The South African government faces a national service delivery crisis of electricity insecurity estimated to cost the economy R4 billion daily. It is important to highlight that 80% of Gauteng's population resides in townships and informal settlements and comprises SMME's informal economies. 5 That are confined to the periphery and characterised by weak credit histories and cycles of income inequality and social injustice heavily embedded in historical policy planning. This has made it extremely difficult for SMMEs to access business networking, mentorship, financial support, and human capital. Electricity is a cornerstone of the operation of informal economies, accounting for 17% of South Africa's Gross Domestic Product (GDP). Electricity security plays an active role in creating local economic wealth and employment opportunities and reducing poverty in informal economies. In response to addressing the national service delivery crisis of electricity insecurity. The South African government has launched a Renewable Energy Independent Power Producer Procurement Programme (REI4P), South Africa's first large-scale renewable energy competitive tender valued at 8.5 billion dollars. This programme aims to mobilise private companies through procurement to diversify power generation using alternative renewable sources. The central problem to be explored in this study emanates from the apparent oversight of the REI4P planning and implementation systems, which lacks a clear framework for integrating informal township-based SMMEs such as those of Khutsong. To partner and participate in a complex emerging renewable energy monopoly to stimulate Local Economic Development (LED). 1.4. Aim. There are limited studies on the role of the REI4P in strategically integrating informal businesses such as Khutsong township-based SMMEs to stimulate local economic development. This research aims to explore whether the Merafong City Local Municipality (MCLM) can leverage the REI4P as a catalyst for LED. 1.5. Research questions. 1.5.1. Main Research Question. 1.5.1.1 How can Merafong City leverage the REI4P as a catalyst for LED and effectively integrate Khutsong Township-based SMMEs? 1.5.2. Sub-Research Questions. 1.5.2.1 How does electricity insecurity affect Khutsong township- based SMME development and the local economy? 6 1.5.2.2. What existing regulatory frameworks can Merafong City leverage to drive the REI4P as an LED initiative? 1.5.2.3. What economic and skills development opportunities can the REI4P as a catalyst for LED bring in Khutsong? 1.6. Research Objectives. 1.6.1. Main Research Objective. 1.6.1.1. Explore how can Merafong City leverage the REI4P as a catalyst for LED and effectively integrate Khutsong Township-based SMMEs. 1.6.2. Sub-Research Objectives. 1.6.2.1. Examine how electricity insecurity affects Khutsong SMME development and the local economy. 1.6.2.2. To analyse what existing regulatory frameworks Merafong City can leverage to drive the REI4P as an LED initiative. 1.6.2.3. Investigate what economic and skills development opportunities can the REI4P as a catalyst for LED bring in Khutsong. 1.7. Literature Review. According to Kumar (2014:48), a procedural evaluative report-literature review is the most integral part of conducting research. This consists of information reviewed by a researcher in the scientific discipline they selected to use for their area of study. It will assist the researcher to clarify their ideas and establish theoretical roots that fit their study. This study’s research agenda is centred around three critical broad themes, comprising an interdisciplinary nature as follows: The first theme, Local Economic Development and Township Economy centred around the impact of policy incoherence emanating from the past urban planning policies which informed the state of local economic development and its effects on township economies. 7 The goal is to argue the need to leverage the REI4P as a Local Economic Development activity to promote township economic development. The second theme analyses Partial Renewable Energy Integration and Procurement Practices on Local Economic Development. It stresses the importance of effective stakeholder engagement, risk management, and improved procurement systems to support sustainable energy development and economic growth. This theme aims to assess what the legislative and policy frameworks can leveraged to operationalise the integration of the REI4P as an LED activity. The third theme examines the multifaceted effects of electricity insecurity, particularly load shedding, on Small and Medium-sized Enterprises (SMMEs) and its implications for the local economy and development profile. 1.8. Central Theoretical Framework. Reed et al. (2018) and Freeman (2017) emphasise the significance of Stakeholder Management Theory (SHMT) in the realm of business ethics. Government organisations must consider this theory when establishing collaborations and partnerships. This study focuses on Merafong City's ability to leverage the REI4P to drive LED. According to Freeman, Kujala, Sachs, and Stutz (2017), the SHMT will provide valuable insights into how Merafong City, as a local government entity, can forge collaborative partnerships with diverse stakeholders to promote local economic benefits. It will also shed light on how Merafong City can involve Khutsong township-based SMMEs among other prospective stakeholders in the decision-making process, aimed at fostering effective communication and transparency and enabling these SMMEs and other stakeholders to influence the distribution of REI4P project benefits. Lane (2006), Basu (2005), and Akpanku and Asgowa (2018) argue that addressing the national electricity service delivery crisis requires local municipalities to restructure their business models to leverage the REI4P into an LED initiative. Khutsong township-based SMMEs have the potential to become strategically integrated into the REI4P as rooftop solar photovoltaic (PV) small-scale electricity-embedded generators (SSEEGs). To either generate solar energy to help mitigate the effects of electricity insecurity on their business operation or sell the electricity into the grid-tied system to generate additional revenue. In this context, the SHMT will assist in understanding potential complexities that may arise. In collaboration and partnership agreements between Merafong City and the REI4P program stakeholders. It's worth noting that procurement procedures often deviate from decisions made by key stakeholders, as exemplified by Eskom's procurement of coal service providers. These deviations were found 8 to be unfair, lacking transparency, competition, and cost-efficiency. Exceeding Eskom's Procurement and Supply Chain Management (SCM) policy, as outlined in the Report of the Portfolio Committee on Public Enterprises on the Inquiry into Governance, Procurement, and the Financial Sustainability of Eskom (2018). 1.9. Research Methodology. In exploring whether Merafong City Local Municipality has the potential to leverage the REI4P as a catalyst for LED. Strategically integrating Khutsong township-based SMMEs as beneficiaries aimed at helping them mitigate the effects of electricity insecurity on their enterprises. This study used a qualitative research method and adopted a Case Study Method (CSM). This study reviewed literature focusing on these critical themes: i) Local Economic Development and Township Economy, ii) Partial Renewable Energy Integration and Procurement Practices on Local Economic Development, and iii) Effects of Electricity Insecurity on SMMEs: Implications for the Local Economy and Development Profile of Merafong City. The study used bi-structured research instruments from primary data collection comprising a survey questionnaire and semi-structured interviews. The sample population for this research initially included i) 60 Khutsong township-based SMMEs aggregated per retail category, primarily dependent on electricity for their business operation. ii) Merafong City’s officials from various units align with the key themes of the above-mentioned research. It is important to highlight that the rationale behind selecting a qualitative research approach, data collection strategy, and other relevant research methodology sections will be covered and extensively discussed in the research methodology chapter (Chapter 3). 1.10. Research Ethical Considerations. The researcher obtained ethical clearance from the University of Witwatersrand School of Governance Research Ethics Committee before heading to the field to undertake the study. It is important to highlight that the researcher acquired verbal permission to interview officials in the interim, awaiting an institutional permission letter from the acting Municipal Manager of the Merafong City Local Municipality, Ms L. Mere. To authorise engagement with local government officials as participants in this study. Issued on the 27th of March 2023 due to Executive Director being on sabbatical due to health-related issues. 9 1.12. Report Chapter Outline. 1.12.1. Chapter One: The Potential Role of South Africa's Renewable Energy Initiative for Khustong’s SMME Development and Township Economy: This chapter provides an Introduction, Background, Research problem statement, objectives and rationale centred on exploring the potential role of South Africa's renewable energy initiative in Khutsong Township's economic development. It presented the study's problem statement, research questions, and objectives. This chapter also covered the appropriate research methodology to demonstrate how the researcher intends to collect and analyse data. This chapter concludes with a discussion of the ethical considerations that the researchers considered. 1.12.2. Chapter Two Literature Review: Local Economic Development and Township Economy: A Focus on the Role of Procurement and Renewable Energy Integration. This chapter presented an overview of policy incoherence and its effects on local economic development. Conducted a comprehensive documentary analysis of literature centred on the i) historical context, foundational principles, and the crucial role of local economic development in empowering local communities. ii) challenges and prospects for inclusive LED in South African municipalities to gain valuable insights about policy incoherence and procurement issues. iii)Partial Renewable Energy Integration and Procurement Practices on Local Economic Development. To delve into the intricate relationship between Renewable Energy Integration and the interconnectedness of Energy and Economic Sustainability within South African Municipalities. Providing an overview of the evolving Renewable Energy Landscape, associated business models, and their collective impact on Economic Sustainability. iv) The researcher explored the effects of electricity insecurity on South African SMMEs and contextualised these issues within the unique economic and developmental landscape of Khutsong Township, encapsulating an overview of Merafong City's broader economic context. 1.12.3. Chapter Three: Research Methodology: The goal of this chapter is to provide a detailed overview of how the researcher intends to answer the research questions and objectives, as well as to outline how the proposed methodological approaches and data collection instruments will be used to help this study achieve its goal. 10 1.12.4. Chapter Four Presentation of findings and Discussions-Exploring the REI4P Potential in Khustong’s Township Economic Development: The goal of this chapter is to present the findings on the objectives of this research: (i) Explore the potential of Merafong City to use the REI4P as a catalyst for LED and assess its strategic integration with Khutsong SMMEs to mitigate the effects of electricity insecurity on their enterprises; (ii)Examine the impact of electricity insecurity on Khutsong township-based SMMEs; (iii)Identify the strategic measures adopted by Khutsong township-based SMMEs to mitigate and cope with the impact of electricity insecurity; (iv) Assess the legislative and policy frameworks that can be leveraged to operationalize the integration of the REI4P as an LED; (v)Investigate how the REI4P, when integrated as an LED strategy, can contribute to economic and skills development within Khutsong Township and its economy; and (vi) Determine which Khutsong township-based SMME sectors could benefit from the integration of the REI4P as an LED initiative. 1.12.5. Chapter Five Conclusion and Recommendation: The goal of this chapter is to summarise the findings of this researcher in order to draw a conclusion as to whether Merafong City to use the REI4P as a catalyst for LED and assess its strategic integration with Khutsong SMMEs to mitigate the effects of electricity insecurity on their enterprises. Therefore, recommend necessary approaches Merafong City can adopt to leverage the REI4Pas a catalyst for LED to improve Khustong’s township economic development. 1.13. CHAPTER SUMMARY. This chapter outlined for the research work, discussing the introduction and background that informed the study's problem statement. This was followed by the research questions, statements of purpose, and conceptual framework. The chapter discussed the research methodology, the process of analysis the study will adopted, and the ethics taken into consideration. 11 Chapter 2. Literature Review. Local Economic Development and Township Economy: A Focus on the Role of Procurement and Renewable Energy Integration. 2.1. Introduction. The preceding section has played a crucial role as a foundational chapter, setting the tone by introducing the background and context of this study. This literature review chapter undertakes a comprehensive documentary review of existing literature, conducting a critical analysis of various components of the secondary body of knowledge that has been published. The primary focus of this literature review chapter is to delve into the overarching objective of this study. Centred around exploring key ideas and concepts related to "Exploring South Africa's Renewable Energy Programme and its Potential Role in Khutsong Township Economic Development. These are Policy incoherence from past planning and policy implementation of renewable Energy Integration, Local Economic Development, Procurement Practice and Electricity Insecurity, which formed an integral part of this research. This chapter will i) unpack the impact of policy incoherence stemming from historical urban planning policies and how they have influenced the state of local economic development, scrutinising their ramifications on SMMEs businesses; ii) navigate the intricate terrain of renewable energy integration, local economic development, and procurement practices, and iii) delve into the multifaceted effects of electricity insecurity, especially the spectre of electricity insecurity, on SMMEs and their far-reaching implications for the local economy and development landscape. 2.2. An Overview of Policy Incoherence and Its Effects on Local Economic Development. A brief overview of the literature on Africa’s urbanisation dynamics and the economic power of African cities. Highlighted a lack of alignment of developmental states' national economic policy priorities with local economic development remains a significant challenge. The OECD, United Nations Economic Commission for Africa, and African Development Bank (2022:28) literature used national economic development programs as an example of how they are centred around addressing education infrastructure and housing development issues. 12 Therefore, it indicated that their successful implementation fully depends on local government. Furthermore, the OECD, United Nations Economic Commission for Africa, and African Development Bank (2022:28) stipulated that many developmental states within Africa, fail to execute their desired economic development vision and often produce negative results due to centralised policy implementation that often overlooks awarding local government with responsibilities, funds, or resources. As a result, this practice limits their potential role and ability to play a significant role in helping their respective countries achieve local economic development after an initial overview of work relating to economic development in Africa. This study examines specific prior work about LED in South African municipalities. 2.2.1. Historical Context, Foundational Principles, and the Crucial Role of Local Economic Development in Empowering Local Communities. A systematic review of literature by the following scholars Mbembe (2001:25), Niekerk (2017:45), Mamdani (1996:10) discussed the right of conquest, which overthrew and destroyed the political systems and native institutions in its crudest form. To fulfil its instituting role of colonial sovereignty, native Africans were restricted into Bantustans, comprising rural and township communities characterised by grotesque living conditions, poor infrastructure and allocation of resources. The post-apartheid government of 1994 needed to address the huge gap of underdevelopment and inequality. Left by the apartheid legacy of systematic marginalisation, which deliberately sought to underdeveloped rural and peri-urban areas. In light of a democratic dispensation, there was a need for post-colonial government to establish an essential tool aimed at creating an enabling environment for local communities with a shared interest. To form a collaboration working together to improve the quality of their lives through activities that can help them achieve sustainable economic growth, which can be conceptualised as Local Economic Development (LED). An essential tool that the South African democratic government crafted to address the socio-economic injustices colonial sovereignty imposed on local communities in rural and township areas maintains, the literature of Mokoena (2019). According to Van Der Waldt, Khalo, Nealer, Phutigae, Van Der Walt, Van Niekerk, and Venter (2014:57), the enactment of this tool was informed by the White Paper on Local Government 1998. That served as a cornerstone to explore development in local government through municipalities committing to work with their local communities. To create sustainable human settlements. To improve their quality of life and meet the socio-economic needs of these 13 communities. The views of the scholars mentioned above are furthered by the literature of Govender and Reddy (2015), Sape (2018:26), and Van Der Walt (2014:57), who pursued research on the role of the White Paper on Local Government as a framework. It discovered that the act seeks to positively impact the livelihoods of communities within the municipal jurisdiction by offering substantive benefits to residents and communities by providing goods and services. A working paper by Sibisi (2009:01) on making local economic development work in South Africa. Identified that the purpose of LED was to build and improve the capacity of local governments, aimed at improving the livelihoods of township economies and creating an enabling environment to promote sustainable development, employment generation, and economic growth. Therefore, it identified typical LED interventions practised up to date in South Africa, which are: i) improving the investment in local businesses and ii) encouraging the growth and development of township-based SMMEs. Consequently, the study discovered that the failure of most municipal LED drive interventions emanates from an institutional gap. This indicates that national policy planning and implementation systems are centralised, thus neglecting the institutional capability of local government, which has led to the majority of national government priorities aggravating social and economic exclusion. In many cases, private sector-led development opportunities within township-based local communities often side line non-traditional SMMEs from benefiting from the project to generate profits they can feed into their local economy. 2.2.2. Challenges and Prospects for Inclusive LED in South African Municipalities: Insights from Policy Incoherence and Procurement Issues Local Government. An economic development specialist, Cohen (2010:18–26), conducted a comparative analysis of the first term of local government from 2000–2006 to the current term 2019–2022 to evaluate the key performance areas of LED. Namely basic service delivery, municipal transformation and organisational development, and municipal fiscal viability and management. The goal was to draw key lessons from implementing local economic development projects within South African local municipalities. Sibisi (2009:01) pursued similar work, conducting a brief comparative analysis of the various government administrations and their role in implementing initiatives. That can help the South African economy alter the structures of the apartheid predecessor in a democratic dispensation since 1994, from the Reconstruction Development Programme (RDP) to the Accelerated Shared Growth Initiative of South Africa (ASGI-SA). 14 Cohen’s (2010:11) literature revealed that LED was a relatively new development concept for South Africa in light of a democratic dispensation. The study presented an overview of the key challenges facing local municipalities to illustrate the state of local economic development in South African municipalities, which is as follows: i) a lack of agreement on the function of LEDs and LED processes; ii) the difficulty of precisely aligning an LED strategy within the broader scope of Integrated Development Planning procedures and SMME development; and, finally, iii) a scarcity of planning tools and expertise; many practitioners are either unaware of or dismissive of some of the modern theories surrounding their use and execution. Consequently, such conservative attitudes hinder the successful implementation of the LED to address poverty and inequality. Rogerson and Nel’s (2016) literature focused on identifying key trends in South Africa's local economic development and discovered. The state of LED in South Africa is weak, and it is difficult to inform and support municipalities' LED strategic plans. As in the case of the Sekhukhune District Municipality, which lacked access to adequate data to inform its LED planning. The Nkonkobe Local Municipality struggles to coordinate LED to employment opportunities and promote local economic activities. The Ngaka Modiri Molema District Municipality's LED was reportedly dysfunctional and unsatisfactory. All the challenges mentioned above hinder the ability to implement the LED successfully. As a result, these municipalities' challenges hinder their ability to implement the LED successfully. Resulting in a negative impact on overcoming spatial inequalities that offer minimal radical economic transformation for SMMEs. Due to adopting the pro-poor LED approach, which is often fostered by municipal budget constraints. When comparing the literature of Mokoena (2019), Rogerson and Nel (2016), Cohen (2010:11), and Sibisi (2009:01), their literary texts demonstrate a strong argument on the issue of poor policy coherence. Between the national and local spheres of government, which hinders local economic development. Therefore, the South African government needs to create a conducive environment. That will enhance economic growth, prioritising resource redistribution and promoting inclusivity. Favouring previously disadvantaged groups such as township SMME business owners in the national policy planning and implementation systems. To help the LED make a significant contribution to the growth of the South African economy through township economies. 15 The issues of poor policy coherence between national and local governments raised in Mokoena’s (2019), Rogerson and Nel’s (2016), Cohen’s (2010:11), and Sibisi’ s (2009:01) literature demonstrate consequences that stem from centralised procurement and its impact of LED. Therefore, it anchored us to this study's primary objective to explore Merafong City's potential in leveraging the REI4P as a catalyst for LED. Aimed at creating an enabling environment for non-traditional informal township-based SMMEs such as Khutsong to be strategically integrated into a complex monopoly. As partners and participants in an emerging Renewable Energy market can serve as a pro-poor LED approach which is people-centred and community-based. 2.3. Partial Renewable Energy Integration and Procurement Practices on Local Economic Development. The previous literature reviews sub-heading aimed to demonstrate how local governments' efficiency in implementing LED is captured by a plethora of challenges. That stems from historical planning where township economies were characterised by high unemployment and poverty rates, shortage of skilled workers, and lack of administrative, financial and resource capacity to drive LED. This mainly emanates from a lack of alignment between the two spheres of government. Namely national and provincial government's policy prescripts and frameworks, concerning creating an enabling environment for local municipalities to accelerate LED. In this study, the REI4P planning and implementation process and systems were contextualised from an angle of “Exploring whether the Merafong City can leverage The REI4P as a catalyst to drive LED as it appears that the South African government has not thoroughly considered how it will create an enabling environment for non-traditional informal township-based SMMEs such as those of Khutsong. To partner and participate in a complex pro-market-based Renewable Energy monopoly. Where private sector companies are participating in South Africa’s first large-scale competitive renewable energy tender process. This brings us to the next sub-heading, which will delve into legislative and policy frameworks for Renewable Energy integration and procurement practices that can be leveraged to operationalise the integration of the REI4P as an LED activity. 16 2.3.1. Renewable Energy Integration and the Interconnectedness of Energy and Economic Sustainability in South African Municipalities. The REI4P can be understood as South Africa’s first large-scale competitive tender process, designed by the government to help diversify the ESI capacity using private sector companies. Its goal is to generate 17,800 MW of electricity from renewable energy sources, such as solar PV, on-shore wind, and hydro. It is important to highlight that the key objectives of the REI4P are to i) promote sustainable development and climate action; ii) foster economic growth and attract Foreign Direct Investment (FDI); iii) ensure energy diversification and security; iv) reduce poverty and stimulate economic development; and v) promote good governance and service delivery. 2.3.1.1. An Overview of Renewable Energy Integration and Municipal Initiatives. In recent years, South Africa has witnessed a growing demand for partially integrating renewable energy into local government operations therefore, which has spurred collaborative efforts between municipalities and various companies. The World Wildlife Fund (WWF) Technical Report (2015: 36) underscores the importance of these collaborations. It reveals the increased interest in leveraging renewable energy within municipalities. Emphasising the need to foster local economic development, support SMMEs, and create employment opportunities. One notable observation from the report is the apparent lack of engagement with LED units within municipalities, representing a missed opportunity in the context of the REIPPPP. These LED units can potentially play a significant role in creating an enabling environment for non-traditional, informal, township-based SMMEs. Thereby allowing Khutsong SMMEs to participate in the emerging renewable energy market. A comprehensive review of case studies and an examination of various municipalities and regions. Mararakanye, Kritzinger, Steyn, and Rix (2018) highlight the innovative approaches adopted by municipalities to harness renewable energy, particularly from rooftop solar installations. A study conducted by Ntsoane (2017) was centred in the heart of the City of Johannesburg's (CoJ) Central Business District (CBD). This study aimed to assess the technological potential of the buildings within the CBD to harness solar energy through rooftop installations. The findings revealed a significant potential to generate solar energy, thus contributing to the electricity requirements of the CoJ. These findings emphasise the role of urban centres in shaping renewable energy integration strategies. 17 Makhathini's (2019) study demonstrates the viability of utilising rooftop photovoltaic (PV) potential across a spectrum of South African locations, encompassing residential, commercial, and industrial areas, to generate solar energy. These case studies emphasise the practical aspects of renewable energy integration into existing infrastructure. The role of municipalities in shaping renewable energy integration strategies is exemplified by the South African-German Energy Partnership Discussion Paper (2017). This paper underlines local governments' need to adapt their fiscal and operational models. To accommodate emerging renewable technologies within the domestic electricity system, such as the REIPPPP. The South African-German Energy Partnership Discussion Paper (2017:22), focusing on the role of South African municipalities in renewable energy, reviewed the business model structure for procuring electricity. It highlights the notable growth of this model in South Africa. However, during its pilot phase involving 18 municipalities across five provinces, the model faced challenges and was phased out. These challenges were linked to fiscal constraints associated with constructing large-scale power plant systems for electricity production. This model encapsulates two critical types of electricity generators available to municipalities: embedded generators (prosumers) and Independent Power Producers (IPPs). It is crucial to emphasise that IPP business models have been gradually integrated into South Africa's energy landscape, with a powerful presence in the Western Cape. These ongoing transformations within the energy sector and the diversification of energy sources underscore the holistic perspective on integrating renewable energy into the South African energy landscape, extending beyond technological aspects and business models. This literature review discussion highlights the evolving role of municipalities in renewable energy integration, the challenges faced by the procurement business model, and the ongoing diversification of energy sources. These insights contribute to the broader discourse on South Africa's renewable energy integration and procurement practices. 2.3.1.2. The Evolving Renewable Energy Landscape, Business Models, and Economic Sustainability. Beyond the technical aspects and business models associated with renewable energy integration. A comprehensive understanding of the South African energy landscape extends to the role of local governments in promoting sustainability. Nijaki and Worrel's study (2012) explored procurement as a sustainable local economic development tool. 18 Their research demonstrated the potential for local government entities, including municipalities. To strategically employ procurement plans to advance green local economic development, underscoring the interconnectedness of energy and economic sustainability. Furthermore, Mukwarami, Mukwarami, and Tengeh’s (2020) international business and globalisation publication used local municipalities as a case study. To shed light on the ramifications of ineffective local economic development on small businesses, often leading to their failure. This study emphasises the integral role of robust local economic development strategies in supporting small businesses' sustainability, thus reaffirming the interconnected nature of energy and economic systems. Collectively, these case studies paint a comprehensive picture of the multifaceted integration of the REIPPPP in various municipalities and regions. Highlighting the evolution of energy procurement, the role of municipalities, and the interconnectedness of energy and economic sustainability. As South Africa continues to navigate its energy landscape, these insights serve as valuable contributions to the ongoing discourse. 2.3.1.2.1. Renewable Energy Integration Procurement Practices. The South African government proposed adopting a municipal model to procure and produce 17800 MW of electricity from renewable resources, maintains the Renewables Global Status Report (2020:49). According to Winkler (2005), the key objectives of the Energy White Paper of 1998 are aligned with the 7th SDG. To secure power supply through diversifying the ESI utilising alternative renewable energy resources. To increase access to affordable electricity and stimulate economic growth by 2030 while managing the energy-related environmental impact to improve energy governance. A recent systematic peer-reviewed literature highlights the need to create an enabling environment for renewable energy technology. The South African government must adopt a non-discriminatory business model, which will enable prospective independent power producers and procurement businesses to equally compete as outlined in the South African Economic Recovery Plan (2021:15). The literature reviewed supports the studies of Le Cordeur (2015:01) and Khumalo (2021:01). That the South African government's REI4Ps, officially launched in 2011, are expected to inject R45 million into the South African economy and socio-economic development. Aimed at procuring 13813 megawatts (MW) of alternative and sustainable energy sources to boost Eskom's electricity supply constraint. 19 Recent work by the South African-German Energy Premiership Discussion Paper on the Role of South African Municipalities in Renewable Energy (2017:06) highlights the South African energy sector amidst a multifaceted energy mix transformation. This is in alignment with sustainable development goal number seven. To secure sustainable, efficient, reliable, and affordable electricity through adopting the REIPPPP. To address the national service delivery crisis of electricity insecurity. That has materially infringed on citizens' rights to provide reliable and affordable electricity, as outlined in section 5(1) of the Energy Act. Thus affecting business operations, Township-based small business owners in Carletonville-Merafong City Local Municipality are among the group. The literature consulted highlights the proposed business model of integrating power and energy mix, involving municipalities acting as IPPs. Indicates that the South African government has not thoroughly thought of creating an enabling environment for non-traditional informal township-based SMMEs. Such as those of Khutsong to partner and participate in a complex renewable energy monopoly. The literature consulted also indicates that the South African government needs to acknowledge and consider this. A set of implications can emerge from leveraging the REI4P to be operationalised as an LED activity in Merafong City, strategically integrating Khutsong- township-based SMMEs. Due to the apparent lack of engagement with LED units within municipalities. The South African-German Energy Premiership Discussion Paper on the Role of South African Municipalities in Renewable Energy (2017:06) highlighted that municipalities need to understand the operationalisation channels of IPPs fully. 2.3.2. An Overview of The State of Public Procurement Practices in Local Government. In this section, we briefly reviewed the body of work related to the South African public sector procurement systems by Fourie and Malan (2020), whose study focused on the dilemmas and challenges faced by the South African public procurement environment. They maintain that public procurement plays a crucial role in expanding an economy and can be used as an indicator to measure the government's success in providing services. Thus, maintain that public procurement, which plays a crucial part in the expansion of an economy, can be used as an indicator to measure the government's success in providing services. 20 The literature reviewed (Fourie and Malan (2020), Ambe and Badenhorst-Wessie (2012), and Odahiambo and Kamau (2003)) highlights that the current South African public sector procurement system is captured by a plethora of challenges attributed to the implementation systems. That needs to be reinforced to become resilient and strong to serve as an efficient tool to provide goods and services. The author's literature argues that the outbreak of the global pandemic amended the existing procurement frameworks to a certain extent. Adopting emergency procurement procedures that were re-prioritized to ensure that the South African government provides timely, effective, and efficient service delivery. Fourie and Malan (2020) highlight that public procurement can be conceptualised as an indicator of economic growth and development, reflecting government efficiency. Therefore, the scholar's literature indicates that governments across the globe are increasingly acknowledging the capacity and role of public procurement in the productivity of the public sector. 2.3.2.1. The State of Public Procurement in South Africa’s Municipalities. Several studies have been conducted focusing on procurement at the local government level in a developmental state such as South Africa. Nokele and Shohola’s (2022) study focused on procurement dynamics and threats in the South African government, including a practice-based approach. Recommending steps municipalities should take to strengthen their whistleblowing strategies and create independent institutions, with the primary purpose of preventing and combating procurement corruption at the local level of government. Sape (2018:1–136) conducted their research using the Emfuleni Local Municipality as a case study, investigating how effective the procurement systems used by the local municipality. Similarly, Motsiri’ s (2010: 1-22) study discovered that the Sedibeng District Municipality procurement systems require the incumbent Supply Chain Management (SCM) officials.To have a shortage of skills and need to attend several SCM workshops to acquire the capacity and knowledge to adequately handle local government procurement processes to improve service delivery within their jurisdiction. Pooe, Mafini, and Makhubele (2014) conducted a qualitative study investigating municipal procurement challenges in South Africa. Therefore, the study's findings demonstrate that municipalities in South Africa continuously struggle to meet their procurement goals. Irrespective of the existence of policies and strategic interventions adopted to support public procurement. 21 The study argues that four major obstacles capture the public sector procurement landscape: i) a lack of training, ii) a lack of capacity, iii) a lack of transparency, and iv) a failure to adhere to the rules and regulations governing public procurement. In that light, the scholar recommended ways to deal with the performance gaps in municipal procurement that were found. These claims were supported by the following scholarly literature by Fourie and Malan (2020) aimed at understanding the current dilemmas and challenges within the South African public procurement environment. Therefore, their research argues that public sector procurement systems are captured by many challenges attributed to the implementation systems. Therefore, it needs to be reinforced to become resilient and strong enough to serve as an efficient tool to provide goods and services. Fourie and Malan (2020) state that the South African public sector and local government procurement systems face multiple challenges. This claim is supported by findings outlined in the audit reports from the 2017 to 2019 financial years. Therefore, Pooe, Mafini, and Makhubele (2014) and Ambe and Badenhorst-Weiss (2012) literature identified common challenges. That hinders the effective and successful implementation of procurement systems and the provision of adequate service delivery in local government. These include but are not limited to: i) lack of appointing officials through a system of meritocracy. Hence, they lack the proper capacity, knowledge, and skills; ii) lack of consequence management emanating from non-compliance with key SCM regulatory frameworks and policies. That condones and promotes unethical behaviour and a lack of administrative accountability. Due to inadequate oversight, monitoring, and evaluation systems. These studies managed to provide insight into the government procurement landscape. The literature review informed the sub-research objective derived from the state of public procurement in South Africa’s municipalities. It illustrated a need to assess the legislative and policy frameworks that can be leveraged to operationalise the integration of the REI4P as an LED activity. This brings us to the sub-heading below. To understand the intricate relationship between renewable energy integration and the legislative frameworks governing procurement practices. 2.3.2. Renewable Energy Integration Procurement Legislative Frameworks. The purpose of this literature review is to provide a comprehensive overview of the field of public procurement and supply chain management in a South African context. 22 This review is the foundation for understanding the intricate relationship between renewable energy integration and the legislative frameworks governing procurement practices. The literature is organised into two sections. The first section focuses on Nyawo’ s Study on IPPs that speaks to Renewable Energy Integration in South Africa: Nyawo (2019) conducted a notable viability study of Independent Power Producers (IPPs). Operating within the South African electricity supply market. This study unveiled the significant role played by the South African government in recent years. Emphasising the importance of creating regulations to diversify primary energy sources and reduce the nation's reliance on fossil fuels for energy production. The findings from this study lay the groundwork for understanding the evolving landscape of renewable energy integration in South Africa. The second section examines procurement legislative frameworks and the government's role in South African procurement. It is derived from Eskom's Integrated report (2014), which highlights the rationale behind establishing legislative and policy frameworks in public procurement. It emphasises the need to prevent organisations from abusing their conferred legislative authority while performing public functions. These frameworks are designed to ensure government officials fulfil their duties without adversely affecting the constitutional rights of South African citizens. The legislative authority governing Eskom's operations is rooted in Section 217(1) of the Constitution of the Republic of South Africa Act No. 108 of 1996, which mandates a cost-effective, competitive, fair, equitable, and transparent public sector procurement system. Several studies by Selemo and Govender (2016), Sape (2018:39), Nyawo (2019:25) and Badenhorst-Wessie (2012) have explored the intricate dynamics of South African public sector supply chain management. Therefore, underscores the ongoing debate among public policy researchers and management practitioners, indicating the growing emphasis on public SCM's role in achieving socio-economic imperatives set by the government. The insights gained from these studies contribute to our understanding of the contemporary landscape of public procurement and supply chain management in South Africa. In 1995, the public procurement reform initiative focused on two key issues: the "promotion of the principles of good governance," and the establishment of a "preference system to achieve specific socio-economic objectives." 23 It is important to highlight that the reform was underpinned by the introduction of the following legislative measures: i) the Public Financial Management Act (PFMA) and the Preferential Procurement Policy Framework Act, which served as the foundation for the change (PPPFA), Fourie and Malan (2020). According to Vabaza (2015:14), in 2003, the South African government adopted a comprehensive policy strategy further to reform the public procurement process within government entities. This strategy sought to strengthen the policy frameworks that govern public procurement in South Africa. It also aligned with the five general procurement pillars applicable in the public sector, namely: 1) value for money; 2) open and effective competition; 3) ethics and fair dealing; 4) accountability and reporting and equity, recognised as the Public Procurement Act. The literature of Nyawo (2019:25) and Glazewski (2004) helped identify the regulations crafted by the government to create an enabling environment for renewable energy integration in the climate of public sector reform as alluded to by Vabaza (2015:14).. In contrast, the literature of Selemo and Govender (2016), Sape (2018:39), and Badenhorst- Wessie (2012) and Honiball (2013:42) provided a critical analysis of the legal framework for the promotion of renewable energy in South Africa. The literature consulted that speaks to legislative frameworks that inform renewable energy integration indicated crucial national government statutory frameworks to be used to enable the South African ESI to successfully implement the REIPPPP and those that can be leveraged to operationalise the integration of the REI4P as an LED activity are as follows: 2.3.2.1. Key Renewable Energy Integration Legislative Frameworks. 2.3.2.1.1. The White Paper on Energy Policy, 1995. The literature on sustainable development and investments undertaken by energy experts and researchers, Filipova and Boulle (2019:09), Eberhard (2001:06), Honiball (2013:42) and Nyawo (2019:25). Highlights that the White Paper on Energy Policy (1998) was created by a small group of academics and government officials, observing international power sector reform. The White Paper on Energy Policy in South Africa, 1998, can be conceptualised as a proactive strategy and a national energy policy prerequisite outlined in the constitution of South Africa. It was created to ensure that national energy resources are used adequately to cater to the nation's needs to provide affordable and reliable electricity. 24 The White Paper on Energy Policy in South Africa, 1998, can be conceptualised as a proactive strategy updated in 2003. 2.3.2.1.2. The White Paper on the Promotion of Renewable and Clean Energy Development, 2002. A body of literature reviewed by Newbery and Eberhard (2008:05), Yuen (2014:12), Scholtz et al. (2017:08) and the Integrated Resource Plan (2019:19) indicated the urgent need to eliminate coal-fired power generating capacity. It aimed to ensure that South Africa reaches a zero-per cent carbon emission goal. To secure a sufficient renewable energy supply in alignment with and support the international Climate Change Accord. Nyawo (2019:25) maintains that the South African government needed to develop a strategy outlining its vision, guiding principles, and tactical targets for promoting and implementing renewable energy. The White Paper on the Promotion of Renewable and Clean Energy Development was established in 2002 to demonstrate the nation's efforts to reduce greenhouse gas emissions, 2.3.2.1.3. The White Paper on the Renewable Energy Policy, 2003. According to the Renewable Energy Transition in Africa Report (2021), leaders of developmental states within the continent. Need to ensure that their government utilises renewable energy sources to promote socio-economic growth while reducing climate change. These claims are supported by the literature of Hsu et al. (2017:29) and Adhikari (2021), who maintain that this can be achieved by adopting a multifaceted energy mix transformation strategy. In alignment with sustainable development goal number seven, to secure sustainable, efficient, reliable, and affordable electricity by 2030. Therefore, the White Paper on the Renewable Energy Policy of 2003 can be conceptualized as a regulatory framework. That can enable the South African energy sector to diversify power supply and energy security. 2.3.2.1.4. The Integrated Energy Plan & the Integrated Resource Plan. A review of major studies relating to South African renewable energy by the following scholars, Ambe and Badenhorst-Wessie (2012), Honiball (2013:42) and Nyawo (2019:25) has confirmed that the Integrated Resource Plan 2010 is an economic recovery plan. It comprises three phases to overcome Eskom's load-shedding challenges and economic constraints. Mobilising all resources to a sustainable economic recovery trajectory through electricity wheeling or energy mix. 25 It is currently in the recovery and reform phase to help the government restore and build a sustainable, resilient, and inclusive economy. Prioritising energy security and diversifying energy sources to produce sufficient, reliable, and affordable electricity. To play a significant role in sustaining a stable economy as outlined in the South African Economic Recovery Plan (2021:15). 2.3.2.2. Key Public Procurement Legislative Frameworks. 2.3.2.2.1. The Public Finance Management Act, 1999. According to a review of academic literature, strict expenditure control methods defined the conventional budgeting system. That forced the South African government to introduce a fiscal reform across the three spheres of government. According to Mkhize & Ajam (2006:761) and Sape (2018:27), it led to the enactment of the PFMA in 2000. The PFMA played a significant role in local government. Addressing the key challenges facing local municipalities, such as limited knowledge of sound financial management among elected public officials, to help prevent poor procurement. Thus, ensuring that officials engage and make administrative decisions that adhere to the principles of integrity in public procurement. 2.3.2.2.2. Preferential Procurement Policy Framework,2000. Myer's (2017) study was centred on understanding the purpose of the government's enactment of the Preferential Procurement Policy Framework, 2000. Therefore, it was discovered that it was introduced as a regulatory measure. To ensure that state organs do not discriminate or exclude people from competitive tender as a prospective goods and services provider. These claims are supported by Ambe and Badenhorst-Weiss (2012), who maintain that this regulatory framework was established as an oversight instrument. To oversee how public procurement policies are to be implemented. Sape (2018:32) highlights that this legislation can be conceptualised as a tool that affects public procurement reform—to create an enabling environment for historically disadvantaged businesses and individuals to participate in the unfolding public sector tender bidding systems. 26 2.3.2.2.3. Local Government Municipal Financial Management Act,2003. According to Sape (2018:28), this legislation was enacted for local government public finance reform. Tucker and Kamukwamba (2020:02), literature on public procurement and government contracts. Highlights that municipalities and their entities are subject to being regulated by the MFMA, which requires these entities to establish and implement their supply chain management. To inform and guide micro-municipal procurement to ensure compliance with Section 112(i) of MAFA, which aligns with the constitutional requirements of public sector procurement. Outlined in Section 217(2) of the Constitution of the Republic of South Africa Act 109, 1996. Stipulating that procurement systems must be competitive and cost-effective, transparent, equitable, and fair when procuring goods and services by a local municipality. 2.3.2.2.4. Broad-Based Black Economic Empowerment,2003. Esser and Dekker's (2008) literature conceptualised Broad-Based Black Economic Empowerment (BBBEE) as an essential tool to enhance good governance and promote its principles. Therefore, this framework was created by the democratic government of South Africa aimed at addressing the grotesque racial imbalances fostered by colonial authorities. The BBBEE strives to ensure that when government institutions implement public policies or projects. They consider the interests of the communities they serve, thus empowering them to promote social investment. Ambe and Badenhorst-Weiss (2012) and Sape (2018:32) literature outlined that the purpose of the BBBEE is to create a good practice code.To guide the development of qualification criteria for the issuance of licences or concessions, the sale of state-owned enterprises, the formation of partnerships with the private sector, and the development and implementation of a preferential procurement policy. The policy review study on public procurement in the local government commissioned by the South African Local Government Association (SALAG) (2020: 04) revealed multiple local government regulatory challenges that have hindered public procurement's socio-economic developmental mandate. The challenges identified are areas of concern when looking into the need for partial renewable energy and procurement practices. These are as follows: i) the failure of municipalities to screen contracted businesses and suppliers; ii) a lack of competitive rotational tendering, which limits the ability to promote fair tender awards to a pool of SMMEs iii) a lack of an integrated relationship. 27 Between the national treasury and the Department of Trade and Industry, on the need to promote and expose SMMEs' potential to compete with well-established companies within a monopoly, and, lastly, iv) SMMEs' lack of compliance with procurement rules and regulations. 2.4. Effects of Electricity Insecurity on SMMEs: Implications for the Local Economy and Development Profile of Merafong City. In the South African context, electricity insecurity, in this study can be understood as a symptomatic policy approach adopted by the government, which initially introduced rotational power cuts. Over time, these power cuts have evolved into a nationwide service delivery crisis known as load-shedding. Drawing from the insights provided by Niselow (2019), Eberhard (2001), and Zeng, Lui, and Nan (2017), it is apparent that the effects of diminishing operational capacity within the electricity sector. Became evident to South Africa's commercial and industrial sector as early as 2007. These effects have had a pervasive impact on the fundamental rights of citizens, as outlined in Section 5(1) of the National Energy Act 3 of 2008.Particularly concerning the provision of reliable and affordable electricity. The repercussions of this insecurity have further extended to disrupt mining and business operations, while concurrently affecting South African households and SMMEs. This complex and interrelated set of challenges underscores the significance and urgency of addressing electricity insecurity in South Africa. Several scholars (Qhobosheane (2018:09), Niselow (2019:01), Scheba and Turok (2019), Eberhard (2001:06), and Mokoena (2017:05). Examined the effects of Eskom's national service delivery crisis of electricity insecurity on municipal revenue, service delivery, and SMMEs, which make up township economies within local government jurisdiction. According to Von Ketelhodt and Wocke (2008), SMMEs account for 97% of operating businesses in South Africa, employing approximately 60% of the national labour force, contributing significantly to GDP, and having the capacity to hire 10 to 50 people. Thus, playing a significant role in contributing to the socio-economic future of developing South African local economies. The paper by Mushongera, Nyuke, and Khanyile (2022:01) used secondary data associated with a question on energy in the sixth Quality of Life survey, which was carried out in Gauteng in 2020–21. Identifying the percentage of respondents who stated that they suffered weekly power outages in each geographic area. 28 In their recent literature on electricity interruptions in the Gauteng City Region (GCR), Mushongera, Nyuke, and Khanyile (2022:01) used a bar graph to illustrate a five-year analysis of respondents within a specified municipal jurisdiction within the Gauteng City Region experiencing frequent, lengthy rolling power cuts with an unreliable schedule. 2.4.1. Effects of Electricity Insecurity on South African SMMEs. The literature of Lang (2019:01), Von Ketelhodt and Wocke (2008), and Makhddom, Nawaz, and Najero (2017) highlights that power interruptions affect the production process if the operating machines of businesses are interrupted midway, resulting in waste costs. Causing businesses to be less profitable while forcing them to reprioritise their financial budgets to accommodate the grotesque effects of power cuts. Thus, it causes SMMEs to inflate product prices to maintain their profit margins. At the same time, consumers suffer the consequences of footing the extra costs and rolling power outages. Consequently, SMMEs must still pay operational expenditures, install additional security measures, and forfeit potential revenue. To acquire alternative power supplies during load shedding and pay for the repairs or replacements of damaged electronic equipment caused by electric surges. It is important to highlight the issue of power outages having the capacity to adversely influence SMME's profitability, efficiency, liquidity, and solvency. A significant number of authors, such as Vyas-Doorgapersad and Masibigiri (2022), Nelisiwe (2018:01), and Mtsahli (2014:20), Khumalo (2018:01), Qobo (2018:1) (Summer, 2011), Xhati (2016:27), and Moagi (2009:1), identified factors that have captured local municipalities' capacity to generate sufficient revenue and service delivery provision in the Gauteng City Region. Minnen's (2020: 01) inquiry during the national assembly supports the literature of Magubane (2019: 01), Arnoldi (2023: 01), and Eyewitness News (2022: 01), indicating that various municipalities are in a debt catastrophe. The audit report shows that as of July 31, 2020, the total debt owed by municipalities is R 46.1 billion. In contrast, the Merafong City Local Municipality accounts for R 700 million due to Eskom. Arnoldi's (2023:01) literature claims that excessive rolling power cuts have a negative impact on South Africa's local government revenue collection and growth. Due to the high input costs incurred by SMME owners mitigating the effects of load shedding. Adopting alternative power sources such as generators is expensive to maintain. Due to exorbitant fuel prices that erode their profitability and change their attitude towards paying for basic services that fail to be 29 delivered. Consequently, this behaviour perpetuates the culture of non-payment and metre- bypassing, which manifest as factors that exacerbate the municipality’s ability to generate revenue from rendering reliable service delivery such as electricity. Ryan's (2023:01) literature focused on how the excessive rolling of power cuts cripple’s electricity sales for the majority of local governments, which account for 80% of their revenue generation. Van Zyl's (2023:01) literature argues that residents and SMME business owners complain about the grotesque impact of load shedding, which frequently causes municipalities to lose millions of dollars in revenue because they rely on reselling electricity. Snigh (2022:01) literature indicates that blackouts have a devastating effect on communities, businesses, and households within the jurisdiction of local government; thus, they have an electroplating effect on the provision of water supply as the water reservoirs require electricity to generate sufficient pressure to push water and supply residential pipes. 2.4.2. Contextualizing Khutsong Township: An Overview of Merafong City ‘s Economic and Development Profile. This study only focuses on seven West Rand District Regional outcomes that are closely aligned with the purpose of this research, which is as follows outlined in the Merafong Local Municipality Draft Integrated Development Plan (2022:09): i) Economic development; ii) Institutional planning and transformation; iii) Sound financial management; iv) Environmental sustainability; v) Basic service delivery; vi) a skilled, capacitated, competent, and motivated workforce; and vii) ethical administration and good governance. This research’s main objective informed the selection of these outcomes to explore the potential of Merafong City to use the REI4P as a catalyst for LED and assess its strategic integration with Khutsong SMMEs to mitigate the adverse effects of electricity insecurity on their enterprises. The Merafong City Local Municipality case study area is classified as a category B municipality comprising 28 wards overseen by the executive mayor, municipal council chairperson, and chief whip. It is located in the south-western part of Gauteng province and falls within the scope of the outskirts of the West Rand District Municipality. It comprises Khutsong, which was officially proclaimed as an African mining compound township in 1959 and can be conceptualised as a residential dwelling originally developed for a small population of mine workers. 30 The West Rand District Municipality's development profile and model (2020:23), along with the Gauteng Township Economic Revitalization Strategy (2018:15), have outlined a set of characteristics that encapsulate Khutsong Township's economic landscape to be summarised as follows: Historical Fiscal Regulations: The township’s economic landscape is deeply rooted in a history of stringent fiscal regulations and a culture resistant to extending start-up capital to township entrepreneurs. This outcome created formidable obstacles for township SMMEs, making it exceedingly challenging to compete with well-established companies operating in a monopolistic environment. Mining-Centric Economy: Khutsong Township's economic foundation primarily relies on mining Gold and Uranium. Despite this historical reliance, efforts to diversify economic activities beyond mining have been limited. This over-dependence on mining poses a significant risk to the area, as local mines are projected to reach the end of their operational lifespan within the next decade, potentially transforming the township into a ghost town. Demographic, Education, Skills Development and Labour Profile: The Merafong City Local Municipality is home to a population of 197,520 individuals and exhibits an average household size of 2.8 people per household. This demographic trend is attributed to the inadequacy of the human settlements within the region, which is not a conducive environment for raising a family. This settlement originated from the historical framework designed to accommodate the working class in mine towns and township areas, as elucidated by Peberdy et al. (2017:230– 233). The Merafong educational profile needs improvement, with only 9.35% of the population holding tertiary qualifications, while 28% have completed matric, and 58% have not finished their secondary education. Consequently, the statistical analysis of the Merafong educational landscape indicates a potential shortage of highly qualified and skilled individuals, estimated at 16%, with 60% of the semi-skilled population engaged in the formal employment sector. Notably, 86.9% of the population has access to electricity, although there are frequent power cuts. 31 Impact of electricity insecurity: As reported by Peberdy, Harrison, and Dinath (2017:230–233), these rolling power cuts have adversely affected various aspects of life in the township. Therefore, Khutsong Township experiences severe power cuts, which have dire consequences for its infrastructure quality, service delivery, economic growth, and investment opportunities. These Merafong City Local Municipality, Khutsong township characteristics resonate with the literature of several scholars: Mbomvu, Hlongwane, Nxazonke, Qayi, and Bruwer (2021:02); Makhddom, Nawaz, and Najero (2017); Tamsyn (2019:08); and Agwa-Ejon (2015) maintain that township economies face a multitude of challenges characterised by weak credit histories and cycles of income inequality and social injustice heavily embedded in historical policy planning which made it extremely difficult for township-based SMMEs to access business networking, mentorship, financial support, and human capital, which stems from the conservative and resistant culture practised by traditional banks that exclude SMMEs from the start-up capital lending criteria. Apart from these shared challenges, township-based SMMEs suffer the consequences of Eskom’s national service delivery crisis—load shedding—a strenuous outcome that impacts their ability to contribute to the South African economy through creating employment opportunities, reducing poverty, and creating economic wealth. Niselow's (2019:01) literature stated that rolling power outages can hinder a developing state's agenda and economy because scheduled power outages affect 0.5% to 1.5% of the country's GDP on business investment groups. It thus argues that load-shedding has an extrapolating effect on SMMEs because their machinery takes time to start up and may consume more electricity. 2.5: CHAPTER SUMMARY. The chapter focused on three interdependent themes, namely Local Economic Development and Township Economy, providing a historical context for foundational principles and emphasising the crucial role of LED in empowering local communities. The chapter critically examined policy incoherence stemming from past urban planning policies, shedding light on how these policies have shaped the current state of local economic development and their impact on township economies based on the Challenges and Prospects for Inclusive LED in South African Municipalities. 32 This was followed by the second theme of Partial Renewable Energy Integration and Procurement Practices on Local Economic Development. The second theme shifts focus to Partial Renewable Energy Integration and Procurement Practices on Local Economic Development. It aims to assess the legislative and policy frameworks that can be leveraged to operationalise integrating the Renewable Energy Independent Power Producer Procurement (REI4P) as an LED activity. This includes an in-depth analysis of the interconnectedness of energy and economic s