In Umdoni Municipality, Provincial Government the District Municipality all have an important role to play in the successful implementation of local economic development initiatives. All these spheres have established principles and provide a framework for the formulation of localized economic development strategies. They create a range of opportunities for funding, institutional development and initiatives for economic growth and development in Umdoni. Based on these, Umdoni found it important to focus on the following areas: Addressing local development needs, crises, and job creation requirements; A partnership between all key stakeholders, the local authority, communities and the private sector by reviving the Umdoni Municipality LED Forum; Local leadership; Initiative and entrepreneurship; The use of local resources and skills; Appropriate external support, advice and facilitation; and Creating an environment that facilitates economic growth and diversification. Umdoni Local Municipality Integrated Development Plan (IDP) identifies local economic development as one of the municipality¡¦s strategic goals. as well as sustainable community investment programs. It emphasizes the integration of support to the local economy from various agencies and spheres of government, and the linkages of the non-local relationships to local economic development. The need for local economic development in Umdoni Municipality arises from a number of factors. Firstly, Section 152 of the Constitution of the Republic of South Africa states that one of the objects of local government is to promote social and economic development. This mandate is developed further in Section 153 of the said Constitution which states that developmental duties of municipalities require them to structure and manage their administration, 101 budgeting and planning processes to give priority to the basic needs of their communities. This includes local economic development. Secondly, the municipality has given effect to this mandate through the IDP which identifies local economic development as one of the priority service delivery programmes. The South African White Paper on Local Government (1998) introduces the concept of developmental local government which is defined as: local government committed to working with citizens and groups within the community to find the sustainable ways to meet their social, economic and material needs, and improve the quality of their lives.