External economic arrangements and South African cities as agents of local development: Illustrations from the City of Cape Town

Abstract

The paper examines the role of South African metropolitan cities (metros) in advancing local economic development (LED) through engagements with external actors. Globalization is increasingly changing the roles and players in international affairs. Cities are increasingly affected by global issues such as COVID-19, the global financial crisis of 2008, and climate change, and they have had to step up and engage with external actors, especially in recent years. In order to shield local economies from devastating declines, local governments have become more actively involved in pursuing LED initiatives. Furthermore, due to the increasing interconnectedness arising from globalization, cities have become more integrated into global markets, and have increased their efforts to become more competitive in order to attract foreign investment, and to establish themselves as ideal places for head offices and outsource services. In light of the economic decline caused by the COVID-19 lockdown measures, it is now, more than ever, pertinent for South African local governments to become active participants in the global arena as agents of economic cooperation and development.