Public and Private Sector Collaboration as a Catalyst for Local Economic Development in South Africa: Advancing Sustainable Employment Creation, Reducing Youth Unemployment, and Promoting Inclusive Economic Growth
DOI:
https://doi.org/10.51137/wrp.ijarbm.918Keywords:
Collaborative Governance, Inclusive Economic Growth, Local Economic Development, Public-Private Collaboration, Youth Unemployment.Abstract
South Africa continues to face persistent structural unemployment, widening socio-economic inequality, and exceptionally high youth unemployment despite successive local economic development (LED) policy interventions. This article examines how collaboration between the public and private sectors strengthens LED by promoting sustainable employment creation, reducing youth unemployment, and advancing inclusive economic growth. A qualitative systematic literature review was conducted using peer-reviewed journal articles, government reports, and international development publications published primarily between 2020 and 2026. Relevant literature was identified through structured database searches, screened against predefined inclusion and exclusion criteria, and synthesised using thematic content analysis. The findings indicate that collaborative governance enhances investment mobilisation, enterprise development, innovation, infrastructure provision, and workforce skills development by improving institutional coordination and stakeholder engagement. However, fragmented implementation, limited municipal capacity, regulatory uncertainty, inadequate monitoring, and weak stakeholder integration continue to constrain collaborative initiatives. The review further shows that successful partnerships depend on transparent governance, clearly defined institutional responsibilities, policy certainty, and sustained participation by businesses, communities, and educational institutions. The study concludes that strengthening collaborative governance offers a practical framework for advancing sustainable employment creation, reducing youth unemployment, and promoting inclusive economic growth while aligning public policy objectives with private sector investment to support long-term local economic transformation in South Africa.
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