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The activities of Local Economic Development Agencies (LEDAs) represent a channel for place-based development. In South Africa national government has supported the expansion of LEDAs to improve the weak performance of local economic development planning, one of the cornerstones of the developmental state. This article investigates the evolution and operations of a small town LEDA which is situated in one of South Africa’s peripheral regions. The local development facilitation and project work undertaken by the Blue Crane Development Agency (BCDA) in the small town of Somerset East in Eastern Cape Province is discussed. It is shown that this LEDA was innovative in development initiatives which were launched during the period 20042014 for Somerset East and its surrounds. In terms of the projects and operations of BCDA considerable effort was made to identify catalytic opportunities and to support the unlocking of projects in this small town through development facilitation and project management. Nevertheless, the evidence from this case study demonstrates that despite successes, development agencies in South Africa have a strong dependence on parent municipalities which can determine the future direction and sustainability of LEDAs.

Local economic development agencies and peripheral small town development: Evidence from Somerset East, South Africa