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Ten years after the demise of apartheid, South Africa still faces significant development challenges. Government policy has focused mainly upon the macro‐economy, which has not necessarily helped address the plight of marginalized communities. One parallel mechanism designed to empower communities has been through the encouragement of Local Economic Development (LED). However, local government action has been prioritised and other role‐players marginalized, thus reducing the overall effectiveness of such interventions. This paper examines three cases of successful LED in the Western Cape province which have not been directed by local government. In all cases there have been clear socio‐economic dividends. The paper critically examines factors which have contributed to the success of these development initiatives.

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