Abstract

This research uses the concept of ‘urban scenes’ to explore and characterise the economy of the city of Makhanda (Grahamstown). It is argued that this framework can create a thorough situational analysis on which to plan for locally-appropriate Local Economic Development (LED). It does this through characterising a local economic context that situates economic activity within a framework that acknowledges the role and interactions of consumers, culture, clustered amenities and economic activities, and urban place. It thus adds to traditional situational analyses by focusing on the urbanisms, activities, and character of the city—making these factors indivisible from the local economy. The framework reveals that two prominent scenes exist within Makhanda: the Education and Tourism Scenes. Education institutions like top public and private schools and Rhodes University are located within the city, and a tourism product exists in the form of creativity and the arts, festivals, edutourism, heritage, and wildlife safaris and hunting. These scenes bring significant money into the local economy through tourism and temporary education-led migration. They are both, however, under significant threat from a dysfunctional local municipality that has consistently failed in its mandate to support the local economy, engage with local stakeholders, and create an enabling environment for business. Intermittent and unreliable water supply, sewerage spills, and the deterioration of existing infrastructure are just some of the issues faced within the city. Any successful LED programme needs to tackle this issue and others to succeed. In addition to creating an enabling economic environment, cooperation within and between stakeholders in the identified scenes needs fostering. The local municipality also needs to create employment and a more inclusive economy to tackle issues of high unemployment and inequality.

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