Local development took centre stage on Wednesday, 16 April 2025, as the Newcastle Municipality’s Directorate of Local Economic Development (LED) and Tourism relaunched the LED Forum with renewed ambition.
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Bongi Nxumalo, from the Municipality’s LED and Tourism Department, highlighted the forum’s vital role in driving community prosperity through collaboration.
He stressed the need for the municipality and stakeholders to create an environment that fuels economic growth and sustainability. “This process is not only for the municipality, but it is a process that involves the municipality and other stakeholders. It has also been noted, that as part of the enablers of economic development, we should have a properly arranged, organisational and institutional build up that assist in participation,” said Nxumalo, praising the diverse group of stakeholders who joined the meeting.
The attendees included business leaders, banking representatives, educational and medical institutions, community forums, business chambers, logistics firms, Newcastillian News and municipal officials.
Noting that the last LED Forum occurred in April 2024, Nxumalo admitted this gap had slowed Newcastle’s economic momentum.
“Hence, the purpose of this meeting is to revive the LED Forum and have meetings as regular as possible, hopefully, one meeting per quarter,” he told the audience, calling for active engagement to spark local economic growth.
The conversation then turned to ArcelorMittal South Africa (AMSA) and its R1.6 billion financial facility from the Industrial Development Corporation of South Africa SOC Limited (IDC). This funding has delayed the wind-down of AMSA’s Long Steel Business for six months, until 31 August 2025.
To read more on the extension of the wind-down process, click here.
Nxumalo outlined the potential fallout from the closure of AMSA’s Newcastle Works Long Steel Business. “We are looking at approximately 2 500 to 3 000 people who will be losing their jobs. This will then affect the spending power in Newcastle, and this will also affect the Municipality, as we will not be able to collect rates from those people, it affects the businesses in town because of the low spending power,” noted Nxumalo.
He added that small, medium, and micro-enterprises (SMMEs) and contractors tied to AMSA would also face challenges. To counter this, the Newcastle Municipality and local stakeholders are working together on solutions to soften the impact of AMSA’s potential closure.
Furthermore, Nxumalo shared that the Strategic Executive Director of the LED Department has reached out to the IDC to explore funding or programs to encourage businesses to expand or launch new ventures in Newcastle, easing the economic strain.
A recent meeting with SMMEs and corporates discussed funding opportunities, and applications remain open through the LED Department.
While it may seem unusual for the Municipality to promote corporate funding, Nxumalo clarified that large companies can apply if their plans focus on job creation to offset AMSA’s job losses in Newcastle. Corporates seeking more information can contact the LED Department at the Municipality.
With uncertainty looming over AMSA’s Newcastle Works, Joe Nowbath of AMSA declined to comment on the company’s future but suggested that, if operations continue, AMSA would partner with the LED to involve more businesses. He confirmed ongoing talks with the South African Government and the steel giant.
As the Newcastle Municipality strives to breathe new life into the LED Forum to tackle potential challenges and drive economic growth, the next meeting date is yet to be set. Still, the forum is committed to ensuring Newcastle thrives, supporting both local SMMEs and major corporates.
What are your thoughts on the above? Share your views in the comment section below.
Comments 6
Until we agree and support that SMMEs are solely drivers of any developing economies, small business drives both formal and informal economy ultimately creates local employment. The municipality should be involved in logistic and construction value chain that take place within its boundaries. Until we buy local products when we engage in huge project and stop sourcing outside for products we can produce we will not defeat unemployment.
You need to expedite the functioning of our airport.
With that mentioned in previous post, I have a strong believe to SED Development Planning and Human Settlement. She is an astute public servant, well educated on this sphere of government. Initiative she has started will bear desired fruits. LED forums and other provincial stakeholders should play their role too.
Maybe the municipality should focus their efforts on tackling slightly more important matters….Like the fact that parts of Newcastle are without water for the 3rd consecutive day now; without water tankers being dispatched.
The matters on the table are very important too. There is no way that a responsible citizen can trivialise economic revitalisation agenda.
You need to expedite the functioning of our airport.