Local Economic Development Strategy 2011
HANTAM LOCAL MUNICIPALITY Urban-Econ Cape Town Suite 20-102F Building 20 The Waverley Business Park Wyecroft Road Mowbray 7700 Tel: (021) 447 3449 Fax: (021) 447 3459 Email:
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Hantam Local Municipality Local Economic Development Strategy 2011
Contents SECTION 1: INTRODUCTION .......................................................................................................... 1 1.1. Introduction ................................................................................................................................. 1 1.2. Goal & Objectives ........................................................................................................................ 1 1.3. Methodology ............................................................................................................................... 2 1.4. Concept of Local Economic Development ................................................................................... 2 1.5. Location of the Study Area .......................................................................................................... 3 SECTION 2: POLICY REVIEW .......................................................................................................... 6 2.1. Introduction ................................................................................................................................. 6 2.2. Policy Objectives .......................................................................................................................... 8 2.3. Policy Alignment ........................................................................................................................ 11 SECTION 3: SOCIO-ECONOMIC PROFILE....................................................................................... 13 3.1. Demography .............................................................................................................................. 14 3.1.1. Population Size and Distribution ............................................................................................ 14 3.1.2. Age and Gender Composition................................................................................................. 16 3.1.3. Population Growth Trend ....................................................................................................... 17 3.1.4. Household Income Structure .................................................................................................. 17 3.1.5. Education ................................................................................................................................ 20 3.2. Infrastructure............................................................................................................................. 21 3.2.1. Accessibility ............................................................................................................................ 21 3.2.2. Mode of Transport.................................................................................................................. 24 3.2.3. Access to Services ................................................................................................................... 25 3.3. Labour and Employment ........................................................................................................... 26 3.4. Economic Structure and Performance ...................................................................................... 31 3.4.1. Economic Production.............................................................................................................. 31 3.4.2. Sectoral Composition.............................................................................................................. 33 3.4.3. Comparative Advantage ......................................................................................................... 34 3.5. Summary and Conclusion .......................................................................................................... 35 SECTION 4: OPPORTUNITY ANALYSIS .......................................................................................... 38 4.1. Introduction ............................................................................................................................... 38 4.2. Integration of LED ...................................................................................................................... 38 4.3. SWOT Analysis ........................................................................................................................... 40
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Hantam Local Municipality Local Economic Development Strategy 2011 4.4. Potential Opportunity Analysis .................................................................................................. 42 4.5. Criteria for Determining Development Potential ...................................................................... 42 4.6. Sector Opportunities ................................................................................................................. 43 4.7. Agriculture ................................................................................................................................. 44 4.8. Mining ........................................................................................................................................ 47 4.9. Electricity, gas and water ........................................................................................................... 50 4.10. Community Services ................................................................................................................ 56 4.11. Tourism .................................................................................................................................... 59 4.12. Other Opportunities ................................................................................................................ 63 4.13. Addressing LED Constraints ..................................................................................................... 63 SECTION 5: INSTITUTIONAL FRAMEWORK................................................................................... 66 5.1. Introduction ............................................................................................................................... 66 5.2. Status of LED Structures ............................................................................................................ 66 5.2.1. Namakwa District ................................................................................................................... 66 5.2.2. Hantam Local Municipality ..................................................................................................... 67 5.3. Support Structures..................................................................................................................... 68 5.3.1. The Municipal LED Forum ....................................................................................................... 68 5.3.2. Namakwa District Municipality .............................................................................................. 69 5.3.3. Other Dedicated Vehicles ....................................................................................................... 70 5.4. Doing Business in Hantam LM ................................................................................................... 70 5.5. Conclusion ................................................................................................................................. 72 SECTION 6: VISION, OBJECTIVES & DRIVERS ................................................................................ 73 6.1. Introduction ............................................................................................................................... 73 6.2. Vision, Objectives and Goals...................................................................................................... 73 6.3. Key Drivers ................................................................................................................................. 75 6.4. Conclusion ................................................................................................................................. 77 SECTION 7: ACTION PLAN ........................................................................................................... 78 7.1. Introduction ............................................................................................................................... 78 7.2. Implementation Plan ................................................................................................................. 78 7.3. Monitoring and Evaluation ........................................................................................................ 86 REFERENCES .............................................................................................................................. 88 ANNEXURE A: PUBLIC PARTICIPATION ........................................................................................ 91
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Hantam Local Municipality Local Economic Development Strategy 2011 ANNEXURE B: POLICY REVIEW .................................................................................................... 94 ANNEXURE C: MINING INFORMATION ...................................................................................... 115 ANNEXURE D: ROLES AND RESPONSIBILITIES ............................................................................ 118 ANNEXURE E: SUPPORT ORGANISATION INFORMATION ........................................................... 122
List of Figures Figure 1 - Policy Integration ....................................................................................................... 7 Figure 2 – Horizontal and Vertical Policy Alignment ................................................................. 8 Figure 3 – Household Size, 2007 .............................................................................................. 15 Figure 4 - Age Profile, 2010 ...................................................................................................... 16 Figure 5 - Population Growth Rates, 1996 - 2010 ................................................................... 17 Figure 6 – Average Monthly Household Income Levels, 2007 ................................................ 19 Figure 7 - Mode of Transport, 2001 ......................................................................................... 24 Figure 8 - Employment Status, 2009 ........................................................................................ 27 Figure 9 – Skills Levels, 2009 .................................................................................................... 29 Figure 10 - GDP Growth Rates, 1996 - 2009 ............................................................................ 33 Figure 11 - Virtuous Circle of Economic Growth...................................................................... 39 Figure 12 - Agricultural Sector Growth Performance, 1995 to 2009 ....................................... 45 Figure 13 - Mining Sector Growth Performance, 1995 to 2009 .............................................. 48 Figure 14 - Electricity, Gas and Water Sector Growth Performance ....................................... 50 Figure 15 - Namakwa District Organogram ............................................................................. 67 Figure 16 – Hantam Municipal Organogram ........................................................................... 68
List of Tables Table 1 - Policy Alignment........................................................................................................ 12 Table 2 - Population Size and Distribution, 2010..................................................................... 15 Table 3 - Hantam LM Population Distribution on Main-place Level, 2001 ............................. 15 Table 4 - Average Monthly Household Income Categories, 2007 ........................................... 18 Table 5 - Grants, 2007 .............................................................................................................. 20 Table 6 - Adult Education Levels, 2007 .................................................................................... 20 Table 7 - Adult Education Levels, Main Places, 2001 ............................................................... 21 Table 8 – Household Service Levels, 2010 ............................................................................... 25 Table 9 - Household Service Levels on Community Level, 2001.............................................. 26 Table 10 – Employment Indicators, 2009 ................................................................................ 27 Table 11 – Main Place Employment Indicators, 2001 and 2009 .......................................... 28
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Hantam Local Municipality Local Economic Development Strategy 2011 Table 12 - Occupation Profile, 2007......................................................................................... 29 Table 13 - Sector of Employment, 2009 .................................................................................. 30 Table 14 – Main Place Sector of Employment, 2001 and 2009 ............................................... 31 Table 15 – Economic Production of the Namakwa District (GDP at current prices), 2009 ..... 32 Table 16 - GDP Contribution, 2009 .......................................................................................... 33 Table 17 - Locational Quotient Interpretation ........................................................................ 34 Table 18 - Comparative Advantage, 2009................................................................................ 35 Table 19 – Sector Performance Indicators .............................................................................. 37 Table 20 - SWOT Analysis ......................................................................................................... 41 Table 21 – Policy and Legislation Sector Focus Areas.............................................................. 43 Table 22 - Social Infrastructure (Hantam LM) ......................................................................... 57 Table 23 - Drivers identified for the Hantam Local Municipality............................................. 75 Table 24 – Implementation Plan .............................................................................................. 78 Table 27 - Operating Mines and Quarries and Mineral Processing Plants ............................ 115 Table 28 - Mineral Deposits in Hantam LM ........................................................................... 117
List of Maps Map 1 - Location of the Namakwa District Municipality ........................................................... 4 Map 2 - Hantam Local Municipality ........................................................................................... 5 Map 3 – New Municipal Demarcation as released July 2011 .................................................. 14 Map 4 – Infrastructure of the Hantam LM .............................................................................. 23 Map 5 – Perennial Rivers ......................................................................................................... 52 Map 6 - Solar Power Potential (SA).......................................................................................... 54 Map 7 - Wind Potential (SA) .................................................................................................... 55
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Hantam Local Municipality Local Economic Development Strategy 2011
SECTION 1: INTRODUCTION 1.1. Introduction Urban-Econ was contracted by the Namakwa District Municipality to prepare a credible Local Economic Development (LED) strategy for the Hantam Municipality. The purpose of this document is to collate all economic information and investigate the coordinated and integration options and opportunities available to broaden the economic base of the Hantam Local Municipality. The implementation of the strategy needs to facilitate the creation of employment opportunities, investment and business development and the resultant positive spin-off effects throughout the economy.
1.2. Goal & Objectives The goal of this document is to assist and support the Hantam Local Municipality within the Namakwa District Municipality to generate a LED Strategy to ensure incorporation of the most recent development changes in the local economy as well as the alignment with Provincial and National initiatives and to develop implementation plans. The LED study forms part of the IDP process and is one of the milestones toward achieving local economic development within the Hantam LM area. The purpose of the LED is for Hantam Local Municipality to create the enabling environment to allow economic development to occur. The following actions were undertaken to prepare the LED: Updated socio-economic and demographic information for the Hantam Local Municipality through the use of secondary information (existing data bases) To take Undertake an in-depth analysis of the real (but latent) development opportunities in the key economic sectors in the study area Capacity building of local LED officials Identify practical sectoral programmes that could be used as basis for pro-active economic development initiatives Undertake focused analysis of key sectors taking cognizance of the first and second economy constraints and opportunities To promote an inclusive, participatory process that integrates strategic planning, community participation, sustainability and good decision making with local economic development Emphasise local job creation, alleviation of poverty and redistribution of opportunities and wealth Focus explicitly on opportunities for SMME development in all economic sectors Promote the creation of an enabling environment conducive for economic development by addressing human resource development and an institutional framework as key components of programmes and projects © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011
Ensure that the development opportunities have a definite geographic and spatial orientation to provide guidance in terms of sustainable future spatial development planning Ensure that the strategy aligns with and add value to the existing policies, strategies and private sector initiatives To provide a strategic framework for implementation of LED initiatives Develop viable LED projects as per the revised strategy (carry out individual project development projections)
1.3. Methodology In undertaking the project, the following steps were undertaken: 1. A review of existing policy documents as well as other documents. As part of this step role players and stakeholders were also identified. 2. Workshops with the Hantam Local Municipality was undertaken to present the proposed study as well as to present opportunities once identified. Prior to these workshops interviews with stakeholder was also undertaken. Details of these meetings are provided in Annexure A. 3. Develop a socio-economic and economic profile for the study area as well as a review of the existing institutional capacity. 4. Undertake a sectoral potential review to identify economic opportunities and constraints in the area as well as to identify projects. 5. Package these project and opportunities around a vision for the area with focussed programmes. 6. Compile an Implementation plan for Hantam Local Municipality including an Action Plan.
1.4. Concept of Local Economic Development LED is an approach to sustainable economic development that encourages residents of local communities to work together to stimulate local economic activity that will result in an improvement in the quality of life for all in the local community. LED aims to increase standards of living create more and better jobs, advance skills and build sustained development for the future. LED is not a wish list but rather a practical understanding of what the local area does well and what it has to offer, what its weaknesses and gaps lie as well as where threats and opportunities exist considering the wants and needs of the local area. The characteristics of an LED are as follows: Attraction of both outward and inward investment Investment in both hard and soft infrastructure Making the business environment more conducive to business A participatory approach to LED Public Private Partnerships (PPPs) © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011
A move towards community based LED
The following aspects need to be considered in this regard: 1. Poverty alleviation needs to be addressed as an integral part of the local economic development strategy, due to high levels of unemployment and poverty. 2. Economic development programmes and project implementation needs to be consolidated and integrated with a strategic developmental approach aimed at sustainable local economic development. 3. Various research documents, policies and strategies for the study area have been compiled and as such data collation should be aimed at adding value and to use the existing knowledge base to focus the work, i.e. a vital issue approach will be followed. 4. The local community needs to be mobilised and included in an informative and participative parallel process to the analysis and strategy formulation. 5. Cognisance needs to be taken of strategic developmental guidelines as provided in Provincial and National strategic directives. 6. The economic enabling environment needs specific intervention to ensure that adequate and appropriate services and infrastructure planning and provision can be complementary to new investment. 7. The involvement and participation of stakeholders need to be encouraged through participative stakeholder mobilisation techniques and innovative LED approaches. 8. Skills development and capacity building are crucial human resource development interventions for improved service delivery. 9. The focus of the LED support will be to facilitate the establishment of channels and mechanisms to ensure that economic development reaches the true beneficiaries. 10. The internal co-operation and coherence for increased external competitiveness as well as to ensure economic activities in various parts of the area complement each other need to be facilitated.
1.5. Location of the Study Area The Namakwa District Municipality is located within the Northern Cape Province. It shares boundaries with Namibia (to the North, along the Orange River), the Siyanda DM (to the North East), the Pixley ka Seme DM (to the East) and the Western Cape Province to the South. The Atlantic Ocean forms the Western Boundary of the District. Map 1 below indicates all the Local Municipalities within the Namakwa District Municipality, namely: Richtersveld Local Municipality (to the North-West along the Coast, on the border of Namibia) Nama Khoi Local Municipality (to the North-West along the Coast, on the border of Namibia) Khâi-Ma Local Municipality (to the North-East, on the border of Namibia) Karoo Hoogland Local Municipality (to the South-East, on the border of the Western Cape Province) Kamiesberg Local Municipality (to the South-West along the Coast, on the border of the Western Cape Province) © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011
Hantam Local Municipality (to the South-West, on the border of the Western Cape Province)
Map 1 - Location of the Namakwa District Municipality
(Source: GIS Mapping 2011) The Map 2 below indicates the Hantam Local Municipal area.
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Hantam Local Municipality Local Economic Development Strategy 2011 Map 2 - Hantam Local Municipality
(Source: GIS Mapping 2011) The towns in Hantam LM include: Nieuwoudtville Calvinia Loeriesfontein Brandvlei Middelpos Swartkop
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Hantam Local Municipality Local Economic Development Strategy 2011
SECTION 2: POLICY REVIEW 2.1. Introduction In establishing an appropriate LED framework for the Hantam Local Municipality, it is essential to make reference to relevant policies at a local, district, provincial and national level. By reviewing the relevant policies, one can contextualize the environment in which the LED framework will exist and more importantly, provide guidelines and targets that will direct the LED framework in an appropriate manner. This will also ensure that the LED policy which is developed aligns with National, Provincial, District and Local initiatives. This policy analysis will be completed for national, provincial, district and local policies and legislation. More specifically the following policies were be reviewed: National Level 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.
The Constitution (RSA 1996) The White Paper on Local Government (1998) National Spatial Development Perspective (NSDP 2006) The New Growth Path Plan (NGP 2010) Industrial Policy Action Plan (IPAP2 2010) Comprehensive Rural Development Programme (CRDP 2009) The Municipal Systems Act (2000) and Municipal Structures Act (1998) Local Government: Municipal Finance Management Act (MFMA 2003) Joint Initiative on Priority Skills Acquisition (JIPSA 2006) The Broad-Based Black Economic Empowerment Act (2004) The National Local Economic Development Framework (2006 – 2011) Integrated Sustainable Rural Development Strategy (2000) National Industrial Policy Framework (NIPF 2007) Regional Industrial Development Strategy (RIDS 2006) National Strategy for the Development and Promotion of Small Businesses in South Africa (1995) Tourism Growth Strategy (TGS 2008 - 2010) Local Government Turnaround Strategy (LGTAS 2009) New Economic Growth Path Plan (2010)
Provincial Level 1. Northern Cape Provincial Growth and Development Strategy (NCPGDS 2005) 2. Northern Cape Provincial Spatial Development Strategy (NCSDS) 3. Northern Cape Local Economic Development Strategy (NC LED 2009) 4. The Northern Cape Municipal LED Framework (2010) 5. Northern Cape Agriculture & Agro-Processing Sector Development Strategy (AAPSDS) 6. Northern Cape Mining and Mineral Sector Strategy 7. Northern Cape Manufacturing Strategy © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 8. White Paper on the Development and Promotion of Tourism in the Northern Cape (2005) District Level 1. Namakwa District Municipality Integrated Development Plan (IDP 2006 – 2011) 2. Namakwa District Municipality Local Economic Development Strategy (LED 2009) 3. Namakwa District Biodiversity Sector Plan (2008) Local Level 1. Hantam Local Municipality Integrated Development Plan (IDP 2010) 2. Hantam Local Municipality Rural Spatial Development Framework/Land Development Plan (2010) The aim of this section is to ensure that the Hantam LED Strategy aligns with the goals and objectives as outlined within the national, provincial, district and local polices. It is important to note that this section will mainly focus on the alignment of the policies whereas Annexure B will focus on the explanation and outlining of the specific goals and objectives for each of the identified policies. These policies are all embedded within each other and their goals and objectives are all aligned with each other, as can be seen in Figure 1 below. Figure 1 - Policy Integration District & Local Frameworks
Provincial Frameworks
National Frameworks
Figure above shows that national policies provide the framework, guidance and approach which need to be implemented and adapted at national, provincial, district and local level. Further it is also important to note that national policies need to feed into provincial, district and local policies. From
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Hantam Local Municipality Local Economic Development Strategy 2011 a provincial perspective it is important that the province provides the framework, guidance and approach for policies which then need to be fed into district and local policies. It is important to understand how the policy environment aligned from a National, Provincial, District and Local level (refer to Figure 1 above). Yet it is also important to understand that there is also a vertical and horizontal alignment of policies which indicated that the various policies need to feed into one another in order to achieve a coordinated goal. Figure 2 below illustrates the horizontal and vertical alignment of the policy environment. Figure 2 – Horizontal and Vertical Policy Alignment National Frameworks, such as New Economic Growth Path Plan, IPAP2 and The Comprehensive Rural Development Plan Departmental Policies and Acts and specifies government mandates, such as LED.
Northern Cape PGDS
Northern Cape LED, SDF etc.
Namakwa DM IDP, LED etc.
Hantam LM IDP, SDF etc.
Sub Policies and strategies, e.g. SMME development strategies and sector specific strategies, such as tourism strategies, agricultural support programmes and funds and so forth.
Figure 2 illustrates that alignment of policy includes both horizontal alignment, i.e. alignment between the different policies and strategies of an area, as well as vertical alignment, between the different tiers of government. Therefore that National government and Province provides the overarching goals and objectives which need to be achieved and be adapted to the district environment as well as a more localised approach for the local municipalities.
2.2. Policy Objectives As indicated Annexure B provides a detailed overview of the policies listed above. As part of this sub-section only strategic policy objectives will be highlighted in order to provide some guidelines for economic development as shown in the various policy documents. From a national level the following policy objectives are important within the economic development environment:
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Hantam Local Municipality Local Economic Development Strategy 2011 1. The New Growth Path Plan (NGP, 2010) highlights job creation (number and quality of jobs created), growth (the rate, labour intensity and composition of economic growth), equity (lower income inequality and poverty) and environmental outcomes as the main indicators of success. With job creation as the overriding theme for the NGP, the Framework identifies the following job drivers: a. Public investment in infrastructure ; b. Targeting more labour-absorbing activities across the main economic sectors; c. Taking advantage of new opportunities in the knowledge and green economies; d. Leveraging social capital in the social economy and the public services; and e. Fostering rural development and regional integration. - In this regard, as a first step, the NGP prioritises efforts to support employment creation in the following key sectors: a. Infrastructure, through the massive expansion of transport, energy, water, communications capacity and housing, underpinned by a strong focus on domestic industry to supply the components for the build-programmes b. The agricultural value chain, with a focus on expanding farm-output and employment and increasing the agro-processing sector c. The mining value chain, with a particular emphasis on mineral beneficiation as well as on increasing the rate of minerals extraction d. The green economy, with programmes in green energy, component manufacture and services e. Manufacturing sectors in IPAP2 and Tourism and certain high-level services. 2. The National Spatial Development Perspective (NSDP, 2006) is based on four principles, namely: a. Rapid economic growth that is sustained and inclusive is identified as a pre-requisite for the achievement of other policy objectives, amongst which poverty alleviation is key b. Efforts to address past and current social inequalities should focus on people not places c. Beyond constitutional obligations identified in Principle above, Government spending on fixed investment, should be focused on localities of economic growth and/or economic potential d. Government has a constitutional obligation to provide basic services to all citizens (e.g. water, energy, health and educational facilities) wherever they reside 3. The Industrial Policy Action Plan (IPAP2, 2010) recommends a sector focussed approach identifying key sectors with potential to be developed. The sectors identified in the IPAP2 document comprise the following: a. green energy saving industries especially wind biomass, solar, thermal and green waste management; b. plastics, pharmaceuticals, chemicals and packaging; c. textiles and leather; d. fuels and biofuels; and e. agro-processing, food processing and organic food processing. 4. Comprehensive Rural Development Programme (CRDP, 2009) was developed by the Department of Rural Development and Land Reform to tackle issues such as underdevelopment, © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 hunger, poverty, joblessness, lack of basic services and other social ills which have become synonymous with rural areas and redistributing 30% of the country’s agricultural land. The Department has implemented the 21 CRDP sites throughout South Africa and aims to roll this out to 160 sites by the year 2014. There are currently no CRDP sites within the Hantam LM. The following provincial policy objectives are important within the economic development environment: 1. The Northern Cape Provincial Growth and Development Strategy’s main objectives for development planning in the Province are: a. Promoting the growth, diversification and transformation of the provincial economy b. Poverty reduction through social development c. Developing requisite levels of human and social capital d. Improving the efficiency and effectiveness of governance and other development institutions e. Enhancing infrastructure for economic growth and social development 2. Northern Cape Local Economic Development Strategy (NC LED 2009) investigated the options and opportunities available to broaden the local economic base of the Province in order to promote the creation of employment opportunities and the resultant spin-off effects throughout the local economy. Areas of opportunity include: a. Livestock products b. Game farming c. Horticulture d. Mariculture e. Ago-related industries f. Tourism g. Manganese and iron Ore h. Beneficiation of minerals i. Renewable energy From a district level, the following policy objectives are important within the economic development environment: 1. Namakwa District Municipality Integrated Development Plan (IDP 2006 – 2011) key performance areas: a. Municipal Transformation and Organisational Development b. Basic Service Delivery and Infrastructure c. Local Economic Development d. Municipal Financial Viability and Management e. Good Governance and Public Participation 2. The Namakwa District Municipality Local Economic Development Strategy (LED 2009) identifies various opportunities (projects and programmes) namely: a. Institutional Development for Investor Readiness © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 b. SMME Development c. Agricultural Sector Development d. Mining Sector Development (including the beneficiation projects, One-Stop Mining Centre and the implementation of new technologies. e. Industrial Development f. Renewable Energy Development (including wind, wave, solar, and biogas energy) g. Space Research and Development Spin-offs h. Tourism Development i. Quality of Life Improvement The following local policy objectives are important within the economic development environment: 1. Hantam Local Municipality Integrated Development Plan (IDP 2010) Objectives: a. Eradicating infrastructure backlogs with specific reference to housing and water provision. b. Upgrading of economic infrastructure c. Creation of new infrastructure d. Creation of sustainable jobs to assist with poverty alleviation e. Improvement of the social services environment of the community In terms of spatial development the Hantam LM has the following objectives: 1. The objectives of the Hantam Local Municipality Rural Spatial Development Framework/Land Development Plan (2010) are as follows: a. Exploit economic opportunities b. Create sustainable urban and rural settlements c. Protect the natural and built environment
2.3. Policy Alignment Within each level of government there are also sub-policies and strategies, for example, SMME development strategies, sector-specific strategies, support programmes, and funding programmes. National policies provide the framework, guidance and approach which need to be implemented and adapted at national, provincial, district and local level. Further it is also important to note that national policies need to feed into provincial, district and local policies. From a provincial perspective it is important that the province provides the framework, guidance and approach for policies which then need to be fed into district and local policies. (It is important to note that in order to obtain more detailed information as depicted by each of the policies one would need to read Annexure B in conjunction with this sub-section). Table 1 below provides a summary of the broad strategic objectives identified in the National, Provincial, District and Local policies outlined above. © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Table 1 - Policy Alignment Policy Objectives Economic Growth & Development Improving competition in the economy & creating an enabling environment to create opportunity Infrastructure and Institutional development (especially energy, transport, communication, water & housing) Job creation & human capital development
Expansion and development of businesses Access to opportunities & recognising the local character of economic need and of potential areas of growth Skills development Sustainable & environmental development Eradicate poverty Provision of basic services Social development Spatial Integration Public transport system & promote nonmotorised transport Effective Governance and institutional strengthening Minimise consumption of scarce resources
National
Provincial
District
(creating five million jobs over the next decade i.e. 2010 to 2020)
Local
As can be seen from the Table 1 above it is clear that the objectives of all the spheres of government align with each other. It is important to ensure that the objectives outlined within the LED Strategy are also aligned to these strategic objectives.
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Hantam Local Municipality Local Economic Development Strategy 2011
SECTION 3: SOCIO-ECONOMIC PROFILE The purpose of this section is to provide an overview of the current socio-economic situation within the Hantam Local Municipality. This is done mainly to provide an indication of the overall performance of the local economic and social characteristics.
TAKE NOTE: The Municipal Demarcation Board is an independent authority responsible for the determination of municipal boundaries. In 2011 the demarcation of municipal boundaries in South Africa were changed so that DMA’s (District Municipal Areas) could be incorporated into local municipal boundaries. Table below indicates the change in geographical areas of the various Namakwa LMs:
Richtersveld LM Nama Khoi LM Kamiesberg LM Hantam LM Karoo Hoogland LM Khâi-Ma LM Namakwa DMA
Old Demarcation Geographical % of Area (km 2) Namakwa DM 9 684 8% 14 921 12% 11 750 9% 28 001 22% 29 423 23% 8 310 7% 24 792 20%
New Demarcation (July 2011) Geographical % of Namakwa Area (km 2) DM 9 608 8% 17 989 14% 14 210 11% 36 128 28% 32 274 25% 16 628 13% n/a n/a
Map below indicates the old and new municipal demarcation of the Hantam LM, which now covers 2 28% (36 128 km ) of the Namakwa Districts total geographical area.
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Hantam Local Municipality Local Economic Development Strategy 2011 Map 3 – New Municipal Demarcation as released July 2011
(Source: Municipal Demarcation Board, http://www.demarcation.org.za)
TAKE NOTE: The statistics below are based on the old municipal demarcation. In order to include the new municipal demarcation Census 2011 data will need to be used (which will only become available in 2012/2013). For communities within the Hantam LM, only Census 2001 data is available at present. Where possible, more recent i.e. 2009 data (on Local Municipal level) has been incorporated and assumptions have been made to present a more recent profile. For reference, the 2001 data is also indicated where the 2009 data was incorporated.
3.1. Demography 3.1.1. Population Size and Distribution The Hantam LM covers a geographical area 28 001 km 2 which is approximately 22% of Namakwa’s total. The Municipality has a population density of 0.8 people per km 2 and a household density of 0.2 households per km 2. Approximately 17% of Namakwa’s population resides in the Municipality (see Table 2 below).
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Hantam Local Municipality Local Economic Development Strategy 2011 Table 2 - Population Size and Distribution, 2010 Population Households total total Northern Cape 1,103,918 277,551 Namakwa DM 135,415 39,272 Hantam LM (Old Demarcation) 23,101 6,576
Area Population Household 2 (km ) Density Density 373,186 3.0 0.7 126,880 1.1 0.3 28,001 0.8 0.2 (Source: Quantec Data 2010)
The size of households within the Hantam LM is illustrated in Figure 3 below. Figure 3 – Household Size, 2007 14 Members
1.3%
13 Members
0.2%
12 Members
0.0%
11 Members
0.0%
10 Members
0.0%
9 Members 8 Members
37.1% 0.0%
7 Members
2.4%
6 Members
2.7%
5 Members
1.7%
4 Members
5.2%
3 Members
41.0%
2 Members
5.0%
1 Member
3.3% 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
(Source: Quantec Data 2010) Figure 3 above indicates that 41.0% of households within Hantam consist of three members, while 37.1% consists of nine members. The population distribution of the main-places within the Hantam Local Municipality is depicted in Table 3 below. Table 3 - Hantam LM Population Distribution on Main-place Level, 2001 % of LM Population Brandvlei 12% Calvinia 43% Hantam NU 26% Loeriesfontein 12% Nieuwoudtville 7% © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Area (km 2) 208.9 26.9 27,730.6 8.4 26.1
Hantam Local Municipality Local Economic Development Strategy 2011 (Source: Census 2001) From Table 3 it is evident that the most significant portion of Hantam’s urban population resides in Calvinia. Hantam LM also has a large rural population, with 26% of its population residing in the non-urban (NU) regions within the Municipality which covers approximately 99% of the LMs geographical area.
3.1.2. Age and Gender Composition The age distribution of a population is important because the largest population age group inevitably dictates its own demands on the market. Figure 4 below indicates the age profile of citizens living in the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality. Figure 4 - Age Profile, 2010 8.1% 7.4% 6.0%
65+
48.0%
25-64
52.5% 46.8% 17.6% 17.4% 19.8%
15-24
26.3% 22.7% 27.4%
0-14
0%
10% Hantam Local Municipality
20%
30%
40%
Namakwa District Municipality
50%
60%
Northern Cape Province
(Source: Quantec Data 2010) The dependency ratio indicates the amount of individuals that are below the age of 15 and over the age of 64, that are dependent on the Economically Active Population (EAP) (individuals that are aged 15 – 64 that are either working or able to work). As can be seen from the Figure 4 above: 34.4% of the Hantam LM population are dependent on the EAP (65.6%) 30.1% of the Namakwa DM population are dependent on the EAP (69.9%). 33.4% of the Northern Cape population are dependent on the EAP (66.6%). These dependency ratio’s could be higher as not every individual in the EAP is employed (i.e. some could be studying full-time into their 20’s; some could of been retrenched, some may be housewives, etc.).
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Hantam Local Municipality Local Economic Development Strategy 2011 The Hantam LM’s population can be regarded as having a high dependency ratio, with 8.4% of the population over the age of 65 and 26.3% are under 15 years. The latter youth group will be demanding education, housing and jobs in the near future. The Hantam gender distribution is 47.2% males and 52.8% females. The gender ration can consequently be expressed as 89.2 males per 100 females.
3.1.3. Population Growth Trend Figure 5 below indicates the population growth levels within the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality. Figure 5 - Population Growth Rates, 1996 - 2010 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0%
Northern Cape Province
Namakwa District Municipality
Hantam Local Municipality
(Source: Quantec Data 2010) The average population growth rates between 1996 and 2010 were as follows: Northern Cape Province (0.6%) Namakwa District Municipality (0.4%) Hantam Local Municipality (0.2%)
3.1.4. Household Income Structure In order to determine the people’s living standards as well as their ability to pay for basic services such as water and sanitation, the income levels of the employed population are analysed. Generally © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 household income levels are one basis for determining poverty levels in a community. Additionally, the income levels of a particular area provide some insight into the economic behaviour of a particular community, i.e. the purchasing power of that community, the potential poverty levels that a community might be experiencing and vulnerability to changes in the economy. Households that has either no income or a low-income fall within the poverty level (R0 – R3,200 per month); indicating that they experience difficulty in meeting their basic needs. A high poverty level results in a social dependency on the government and could lead to great strain on the government budget. A middle-income is classified as earning R3,201 – R25,600 per month whereas and a highincome is classified as earning R25,601 or more per month. Table 4 below indicates the household income categories of the residents in the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality. Table 4 - Average Monthly Household Income Categories, 2007 Northern Cape Namakwa DM Hantam LM Low Income 66.6% 58.8% 63.0% Middle Income 29.7% 38.1% 32.8% High Income 3.7% 3.1% 4.2% (Source: Quantec Data 2007) From Table 4 above it is evident that 63% of Hantam LM households fall within the poverty level, (i.e. they earn R3,200 or less per month) which is higher than the District average (58.8%) but lower than the Provincial average (66.6%). Income categories will not improve unless the population’s skills improve through better education attainment opportunities and job creation in higher skilled economic sectors. Figure 6 below illustrates the household income levels of the residents in the Namakwa District Municipality and the Hantam Local Municipality.
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Hantam Local Municipality Local Economic Development Strategy 2011 Figure 6 – Average Monthly Household Income Levels, 2007 R204,801 or more
0.0% 0.1%
R102,401-R204,800
0.0% 0.2% 1.3% 0.5%
R51,201-R102,400
2.9% 2.4%
R25,601-R51,200
4.5% 5.3%
R12,801-R25,600
11.8% 13.9%
R6,401-R12,800
16.4%
R3,201-R6,400
18.9%
R1,601-R3,200
23.1%
R801-R1,600
19.5%
25.8%
22.3%
6.4% 6.6%
R401-R800 1.6% 3.2%
R1-R400
6.8% 6.3%
No income 0%
5%
10%
15%
Hantam Local Municipality
20%
25%
30%
Namakwa District Municipality
(Source: Quantec Data 2007) From Figure 6 above it is evident that 63% of the households residing in the Hantam LM fall within the poverty level (low income category). Of this 63%, 6.3% received no monthly income which is slightly lower than the District average of 6.8%. Hantam is characterised by low-income households, which has implications for the financial status of the Municipality and its ability to implement programmes. Further, household income has implications for the types of initiatives that would be feasible in terms of local market demand. Table 5 below illustrates the percentage of population receiving social grants within the the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality.
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Hantam Local Municipality Local Economic Development Strategy 2011 Table 5 - Grants, 2007 Old age pension Disability grant Child support grant (linked to child) Care dependency grant Foster care grant Grant in aid Social relief Multiple social grants Institutions (Source: Quantec Data 2007)
Northern Cape 14.6% 10.7% 36.1% 1.3% 0.2% 0.6% 0.2% 0.4% 35.8%
Namakwa DM 17.9% 9.4% 29.5% 0.9% 0.0% 0.1% 0.2% 0.4% 41.5%
Hantam LM 12.2% 6.8% 20.4% 1.8% 0.2% 0.5% 0.4% 1.3% 56.4%
In 2007, approximately 2.3% of Hantam’s total population received some form of government grant. Within the Hantam LM (refer to Table 5 above) grants for institutions (56.4%) was the most received government grant followed by the child support pension grant (20.4%) and the old age pension grant (12.2%). The Hantam LM received approximately 22% of the total grants issued by the Namakwa DM in 2007.
3.1.5. Education Education levels in any given market area will influence economic and human development. It is clear that low education levels lead to a low skills base in an area while high education levels have the opposite effect, producing a skilled or highly skilled population. There is also no doubt that household and personal income levels are either positively or adversely affected by education levels. Also, a population that is skilled does not necessarily aspire to employment but to entrepreneurship, which will add businesses to the area, increase economic activity and consequently increase the number of jobs available. Table 6 below indicates the adult education levels (individuals aged 20 years and over) of citizens residing in the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality. Table 6 - Adult Education Levels, 2007 Northern Cape Namakwa DM Hantam LM 12.2% 5.8% 16.4% 20.4% 19.4% 20.0% 7.4% 10.1% 7.2% 33.8% 41.4% 30.4% 16.7% 15.3% 19.9% 3.2% 2.1% 1.6% 3.6% 3.6% 1.4% 2.7% 2.4% 3.1%
No Schooling Some Primary Complete Primary (Grade 7) Some Secondary Complete Secondary (Grade 12) Some Secondary with Certificate/Diploma Complete Secondary with Certificate/Diploma Tertiary Education © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 (Source: Quantec Data 2007) Around 16% of the Hantam LM’s adult population has no schooling, which is higher than the overall of the Namakwa DM’s 5.8%. Only 6.1% of the Hantam’s adult population has a certificate/diploma or tertiary education. This means that the majority of the adult population have a low skill level and would either need job employment in low-skill sectors, or better education opportunities in order to improve the skills level of the area, and therefore their income levels. The adult education levels for the various main-places within the Hantam LM are indicated in Table 7 below. From Table 7 it is evident that highest portion of adults with no form of schooling resides in the non-urban (NU) regions within Hantam (33%), followed by Brandvlei (27%) and Loeriesfontein (25%). Table 7 - Adult Education Levels, Main Places, 2001 Adult (age 20+) Education level
Brandvlei
Calvinia
Hantam NU
Loeriesfontein
Nieuwoudtville
No schooling
27%
22%
33%
25%
17%
Some primary
23%
17%
25%
24%
20%
8%
8%
9%
9%
10%
Some secondary
29%
28%
14%
24%
37%
Std 10/Grade 12
10%
20%
10%
15%
10%
3%
6%
9%
4%
6%
Complete primary
Higher
(Source: Census 2001) There is a need for educational facilities, particularly post-matric training as well as accredited tertiary institutions that offer affordable and appropriate qualifications. There is also a need to attract and retain qualified professionals.
3.2. Infrastructure 3.2.1. Accessibility Calvinia is situated almost in the centre of the Hantam LM and links to the surrounding towns via the following roads (refer to Map 3 below taken from the Hantam SDF): R27 to Nieuwoudtville in the west and to Brandvlei in the north-east; R63 to Williston in the east; R354 to Middelpos which lies to the south-east; and R355 to Loeriesfontein which is situated to the north-west of Calvinia. The major roads linking Nieuwoudtville to the surrounding towns are as follows: R27 to Calvinia which is situated due east; and R357 to Loeriesfontein which lies to the north-west. Loeriesfontein has access to the surrounding towns via the following road network: © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011
R357 which links it to Nieuwoudtville in the south-west and to Brandvlei to the north-west; and R355 which links it to Calvinia in the south-east.
Low accessibility is a restriction to economic development in the area. Attracting investors is particularly restrained by the lack of airport facilities.
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Hantam Local Municipality Local Economic Development Strategy 2011 Map 4 – Infrastructure of the Hantam LM
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Hantam Local Municipality Local Economic Development Strategy 2011 3.2.2. Mode of Transport The modes of transport in use are a consideration in local economic development. This is because development projects need to take into consideration the mode of transport utilized by the labour force. New industrial developments should not be situated far away from the pick-up or drop-off points of various means of transportation. However, if the factory or office is far, the employer needs to consider means of transport for the workers from strategic points. The same applies for schools or education and training campuses. Figure 7 below indicates the mode of transport used by individuals in the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality. Figure 7 - Mode of Transport, 2001 0.0% 0.1% 0.2%
By train
1.4%
By bus
10.5% 6.2%
0.9% 2.8% 6.9%
By minibus/taxi
9.5% 8.1% 8.8%
By car as a passenger
11.1% 10.2% 9.2%
By car as a driver 0.3% 0.3% 0.3%
By motorcycle
2.9% 1.3% 1.7%
By bicycle On foot
66.7% 66.8% 0%
10%
20%
Hantam LM
30% Namakwa DM
40%
50%
60%
70%
73.8%
80%
Northern Cape
(Source: Quantec Data 2001) The majority of the Hantam LM’s population (73.8%) travel to school or to work by foot. Around 11.8% of the Hantam population make use of public transport (i.e. the bus, train, taxi, or lifts with other people); while 2.9% make use of bicycles and 11.4% use their own private transport. Donkeys and horses as well as donkey/horse carts are also widely used in the area. Most of Hantam’s population are living in small, dispersed settlements and have limited transport capacity to travel the often significant distances between urban centres. As many of these © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 households are also living in poverty, the lack of transport adds to the so-called “poverty trap”, as these people are less able to conduct, for example, informal activities to alleviate their circumstances. There is potential to expand this industry, particularly provision of public transport.
3.2.3. Access to Services Table 8 below summarises the service levels of households within the Northern Cape Province, Namakwa District and Hantam LM. Table 8 – Household Service Levels, 2010 Northern Cape House or brick structure on a separate stand or yard Informal dwelling/shack Electricity for lighting Refuse removal by local authority Appropriate sanitation (Flush or a Chemical Toilet) Piped Water (Less than 200m from dwelling) (Source: Quantec Data 2011)
Namakwa DM
Hantam LM
77.4%
81.4%
75.2%
16.1% 85.8%
8.9% 89.0%
5.2% 85.9%
71.9% 67.8%
87.1% 74.7%
83.2% 76.1%
87.2%
93.8%
93.3%
Housing According to standardised regional data (Quantec, 2011), the portion of households resident in informal dwellings in the Hantam LM (253 households according to the IDP 2010/11), is less than that of the District and Province. According to the Local IDP (2010/2011) Hantam has a housing backlog of 730 houses. Electricity – Only urban areas within the Hantam LM have access to electricity and rural areas thus have to rely on other means. In comparison with the District (89%), household’s resident in Hantam (85.9%) has less significant access to electricity. Households’ resident in Middelpos (26) have no access to electricity and are supplied with wood and lamp oil. Refuse Removal – The portion of households with access to refuse removal by local authority within the Hantam LM (83.2%) are less than those resident in the Namakwa District (87.1%). Appropriate Sanitation – The portion of households resident within the Hantam LM (76.1%) have a higher access to appropriate sanitation (chemical or flush toilet) than both the District (74.7%) and Province (67.8%). According to the local IDP (2010/11) there are still 55 bucket system toilets within the Hantam Municipal area. Piped Water – The portion of households resident in Hantam with access to piped water less than 200 meter from their dwelling is only slightly less (93.3%) than the District average (93.8%). According to the Hantam IDP (2010/11) all residents of the Hantam LM have access to water on their property.
Table 9 below summarises the service levels of the main-places within the Hantam Local Municipality.
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Hantam Local Municipality Local Economic Development Strategy 2011 Table 9 - Household Service Levels on Community Level, 2001 Brandvlei House or brick structure on a separate stand or yard Informal dwelling/shack
Calvinia
Hantam NU
Loeriesfontein
Nieuwoudtville
87%
78%
93%
93%
88%
7%
2%
1%
3%
5%
Electricity for lighting
88%
93%
39%
93%
91%
Refuse removal by local authority
99%
99%
2%
98%
94%
74%
79%
44%
49%
91%
97%
98%
88%
96%
95%
Appropriate Sanitation (Flush or a Chemical Toilet) Piped Water (Less than 200m)
(Source: Census 2001) From the Table 9 it is evident that: Brandvlei has the highest portion of households in Hantam residing in informal dwellings/shacks. Only 39% of households in the non-urban (NU) regions within the Municipality have access to electricity for lighting. The majority of Hantam’s households have their refuse removed by local authority, although non-urban (NU) regions have to make use of other means with only 2% of households in the NU regions having their refuse removed by local authority. Less than 50% of households in the non-urban (NU) regions and Loeriesfontein have access to appropriate sanitation (this refers to access to a flush or chemical toilet) The majority of households (88% or more) within the various main-places have access to piped water less than 200m from their dwelling.
3.3. Labour and Employment The employment profile of the study area is an important indicator of human development, but also of the level of disposable income and subsequently the expenditure capacity of the residing population. An employed person is a person who works for pay, profit or family gain. Such a person can be an employer, an employee, self-employed or a working family member. According to the (international) official or strict definition, the unemployed are those people within the economically active population who (a) did not work in the seven days prior to census night, (b) wanted to work and were available to start work within a week of census night, and (c) had taken active steps to look for work or start some form of self-employment in the past four weeks. The not economically active population are people who are not working, but are housewives, scholars/full-time students, pensioners, disabled people and people not wishing to work. Figure 8 below indicates the employment status of the individuals within the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality.
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Hantam Local Municipality Local Economic Development Strategy 2011 Figure 8 - Employment Status, 2009 38.6% Employed
45.8% 45.8% 14.7%
Unemployed
10.9% 13.0% 46.7%
Not economically active
43.2% 41.2% 0%
5%
10%
Northern Cape
15%
20%
25%
Namakwa DM
30%
35%
40%
45%
50%
Hantam LM
(Source: Quantec Data 2009) From Figure 8 above it is evident that 45.8% of Hantam LM’s population are employed, 13% unemployed and another 41.2% are not economically active. The various employment indicators are as follows: The labour force includes all the potential economically active population (age cohort of 15 to 64 years) who are employed and unemployed. Unemployment rate indicates the number of people unemployed as a percentage of the labour force. Labour Participation Rate (LPR) indicates the labour force as a percentage of the potential economically active population (age cohort of 15 to 64 years). The number of persons each economically active person has to support is measured by the labour dependency ratio (LDR). This ration not only includes the economically inactive part of the population, such as housewives and students, it also includes children and young people under 15, as well as older people over the age of 65. Table 10 below indicates the employment indicators for the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality. Table 10 – Employment Indicators, 2009 Unemployment Rate Labour Participation Rate Labour Dependency Ratio (Source: Quantec Data 2009)
Northern Cape 27.6% 53.3% 2.9
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Namakwa DM 19.3% 56.8% 2.6
Hantam LM 22.1% 58.8% 2.7
Hantam Local Municipality Local Economic Development Strategy 2011 The Hantam LM’s: Unemployment rate (22.1%) is higher than that of the Namakwa DM (19.3%) . The economic cost of unemployment include: o Loss of earnings to the unemployed o Stress and health problems of being unemployed o Increased government borrowing. Tax revenue will fall because there is less people paying income tax and VAT. Also the government borrowing will have to spend more on unemployment benefits. o Lower GDP for the economy, the economy will be below full capacity this is inefficient and will lead to lower output and incomes. o Increase in social problems. Areas of high unemployment (especially youth unemployment) tend to have more crime and vandalism. Labour participation rate (58.8%) is higher than that of the Namakwa DM (56.8%). Has a labour dependency ratio of 2.7 which is higher than the Namakwa DM (2.6) . Table 11 below indicates the employment indicators for the Hantam LM main-places. Table 11 – Main Place Employment Indicators, 2001 and 2009 Brandvlei Calvinia Hantam
Loeriesfontein
Nieuwoudtville
Unemployment Rate 2001 Unemployment Rate 2009
39% 43%
27% 30%
6% 7%
23% 25%
20% 22%
LPR 2001
63%
47%
66%
55%
46%
LPR 2009 67% 50% (Source: Census 2001 and Urban-Econ calculations)
71%
59%
49%
From Table 11 it us evident that the unemployment rate has decreased from 2001 to 2009 with labour participation increasing. Employment creation programmes are needed that target both the unemployed (those who seek work but cannot find it) as well as those who are choosing not to work. Education levels in any given market area will influence economic and human development. It is clear that low education levels lead to a low skills base in an area while high education levels have the opposite effect, producing a skilled or highly skilled population. A population that is skilled does not necessarily aspire to employment but to entrepreneurship, which will add businesses to the area, increase economic activity and consequently increase the number of jobs available. Figure 9 below indicates the skills level of residents residing in the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality.
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Hantam Local Municipality Local Economic Development Strategy 2011 Figure 9 – Skills Levels, 2009 60%
52.8%
51.5%
48.6%
50% 39.7%
40%
37.7%
36.3%
30% 20% 11.7%
10.9%
10.8%
10% 0% Northern Cape
Namakwa DM Highly skilled
Skilled
Hantam LM
Semi- and unskilled
(Source: Quantec Data 2009) Around 11% of the Hantam LM’s population is highly skilled, while 37.7% are skilled. The majority (51.5%) of Hantam’s population are semi- and unskilled and would either need job employment in low-skilled sectors, or better education opportunities in order to improve the skills level of the area, and therefore their income levels. A population with low skills won’t be able to improve their incomes and therefore it would be important to implement skills development programmes and job creation in higher skil led occupations. This is also important in order to leverage the economy from being primary sector (agriculture) based to being more diversified across primary, secondary and tertiary (more skills intensive) sectors. Furthermore, due to the high percentage of semi- and unskilled citizens professional services have to be “imported” from areas surrounding these areas, resulting in a leakage of expenditure from the local economy. Technological advances will however, in the near future reduce the need for unskilled and low skilled workers, but rather increase the need for a skilled and semi-skilled force workforce. The low skills levels of the population are cause for concern. The occupation profile is a strong indicator of the level of income generated by the local population. The occupation profile indicates whether the population has a skilled or unskilled labour force and in which professions people are absorbed into. Table 12 below indicates the different occupations that people are employed in, in the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality. Table 12 - Occupation Profile, 2007 Northern Cape 8.1% 8.6%
Legislators; senior officials & managers Professionals
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Namakwa DM 8.2% 8.8%
Hantam LM 2.7% 8.1%
Hantam Local Municipality Local Economic Development Strategy 2011 Technicians & associate professionals Clerks Service workers; shop & market sales workers Skilled agricultural & fishery workers Craft & related trades workers Plant & machine operators & assemblers Elementary occupations Occupations unspecified & not elsewhere classified Institution (Source: Quantec Data 2007)
Northern Cape 4.0% 8.0% 8.3% 6.9% 10.6% 6.1% 18.1% 14.3%
Namakwa DM 3.7% 7.8% 8.5% 5.6% 12.1% 6.9% 19.0% 12.7%
Hantam LM 3.8% 8.9% 6.5% 6.8% 11.6% 4.1% 18.4% 17.6%
6.9%
6.7%
11.5%
The majority of the Hantam LM’s population is employed in the following occupations: 1. Elementary occupations (18.4%) 2. Occupations unspecified and not elsewhere classified (17.6%) 3. Craft and related trades workers (11.6%) This indicates that there are limited professional skills in the area. The high proportion of semi-and unskilled workers has implications for the nature and quality of jobs created. To improve on the quality of jobs, household incomes and overall economic status of the area, skills development programmes are needed. Table 13 below indicates the sectors in which residents are employed within the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality. Table 13 - Sector of Employment, 2009 Agriculture, forestry & fishing Mining & quarrying Manufacturing Electricity, gas & water Construction Wholesale & retail trade, catering & accommodation Transport, storage & communication Finance, insurance, real estate & business services Community, social & personal services General government (Source: Quantec Data 2009)
Northern Cape 16.6% 8.2% 3.8% 0.6% 4.6% 16.1%
Namakwa DM 12.6% 16.3% 2.8% 0.4% 5.7% 14.6%
Hantam LM 21.3% 0.6% 4.5% 0.9% 5.1% 12.3%
3.2% 9.2%
3.3% 8.1%
2.6% 13.4%
15.5% 22.3%
17.7% 18.6%
21.8% 17.7%
The following sectors are the main employing sectors within the Hantam Local Municipality:
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Hantam Local Municipality Local Economic Development Strategy 2011
Community, social and personal services (21.8%) Agriculture, forestry and fishing (21.3%) General government (17.7%) Finance, insurance, real estate & business services (13.4%) Wholesale & retail trade, catering & accommodation (12.3%)
Table 14 shows the sectors in which the residents of the various main-places within the Hantam LM are employed. Table 14 – Main Place Sector of Employment, 2001 and 2009 Brandvlei
Calvinia
Hantam NU
Loeriesfontein
Nieuwoudtville
2001
2009
2001
2009
2001
2009
2001
2009
2001
2009
Agriculture
12%
6%
5%
2%
79%
61%
12%
6%
18%
10%
Mining
11%
4%
0%
0%
1%
0%
0%
0%
6%
2%
Manufacturing
8%
11%
3%
4%
2%
4%
2%
3%
5%
7%
Utilities
0%
0%
1%
1%
0%
1%
1%
1%
0%
0%
Construction
4%
3%
7%
5%
2%
3%
13%
11%
7%
7%
Wholesale and retail trade Transport; storage and communication Financial and business services Community and personal services
26%
22%
18%
12%
2%
3%
27%
21%
35%
32%
1%
2%
2%
2%
1%
2%
7%
7%
0%
0%
6%
16%
10%
21%
1%
3%
6%
14%
2%
7%
31%
37%
54%
54%
12%
22%
32%
36%
26%
34%
(Source: Census 2001 and Urban-Econ calculations) From Table 14 it is evident that: Community and personal services sector was the most significant employing sector within all the main-places of the LM, except for the non-urban regions where agriculture is the dominant employing sector (2001 and 2009), during 2001 and 2009. Although employment in the Wholesale and retail trade sector shows a decrease from 2001 to 2009, it was still the second most significant employer in Brandvlei, Loeriesfontein and Nieuwoudtville in 2009. In Calvinia the Wholesale and retail trade sector went from being the second most significant employer in 2001 to the third in 2009, being replaced by the Financial and business services sector.
3.4. Economic Structure and Performance 3.4.1. Economic Production
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Hantam Local Municipality Local Economic Development Strategy 2011 Gross Domestic Product (GDP) comprises the value of all final goods and services, produced during a year, within the boundaries of a specific region and is commonly used to measure the level of economic activity in a specific area. For analytical purposes, GDP is utilised as an important indicator of economic activity. Generally, if the economy as a whole is performing well, demand for residential and commercial property can be expected to increase, and vice versa. GVA (Gross Value Added) is linked as a measurement to GDP. The relationship is defined as: GDP = GVA + Taxes – Subsidies. As the total aggregates of taxes on products and subsidies on products are only available at whole economy level, GVA is used for measuring Gross Regional Domestic Product and other measures of the output of entities smaller than a whole economy. GVA (Gross Value Added) is the difference between output and intermediate consumption for any given sector/industry. That is the difference between the value of goods and services produced and the cost of raw materials and other inputs which are used up in production. TAKE NOTE: This data is based on “place of residence” and NOT “place of work”. Table 15 below indicates the economic production of the Local Municipalities within the Namakwa District. Table 15 – Economic Production of the Namakwa District (GDP at current prices), 2009 GDP (R'000 000) As % of Namakwa DM Current Prices, 2009 Namakwa DM R 8 526 Richtersveld LM R 1 457 17.1% Nama Khoi LM R 3 854 45.2% Kamiesberg LM R 810 9.5% Hantam LM R 974 11.4% Karoo Hoogland LM R 288 3.4% Khâi-Ma LM R 1 144 13.4% (Source: Quantec Data 2009) The Hantam LM contributed 11.4% to the total economic production of the Namakwa District in 2009. Therefore, out of the six Local Municipalities within the Namakwa District, Hantam rates fourth in terms of contribution to economic production. Figure 10 below indicates the annual GDP growth rates of the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality. From 2004 to 2005 Hantam experienced a spike in its economic production growth, while the District experienced a decline. This could largely be due to the fact that the mining sector, which is the main contributor to the Namakwa Districts’ economy (refer to Table 16 below), experienced a sharp decline during that period which made a large impact on the overall economic growth of the District. The reason the decline in the mining sector did not influence the Hantam LM is due to the fact that this sector is the least significant contributor to the Municipality’s economy. From 2006 to 2009 both the Northern
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Hantam Local Municipality Local Economic Development Strategy 2011 Cape and the Namakwa District annual economic production growth rates have been declining, with Hantam’s rate showing a decline from 2008 to 2009. Figure 10 - GDP Growth Rates, 1996 - 2009 12% 10% 8% 6% 4% 2% 0% -2% -4% -6%
Northern Cape
Namakwa DM
Hantam LM
(Source: Quantec Data 2009) The Northern Cape Province had an average annual GDP growth rate of 2.2% during 1996 and 2009, while the Namakwa District Municipality had an average annual GDP growth rate of 1.3% and the Hantam Local Municipality had an average annual GDP growth rate of 3.7% in the same period.
3.4.2. Sectoral Composition Table 16 below indicates the GDP contribution of each economic sector to the economies of the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality. Table 16 - GDP Contribution, 2009 Agriculture, forestry & fishing Mining & quarrying Manufacturing Electricity, gas & water Construction Wholesale & retail trade, catering & accommodation Transport, storage & communication Finance, insurance, real estate & business services Community, social & personal services © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Northern Cape 6.2% 23.4% 3.6% 2.1% 1.7% 11.7%
Namakwa DM 4.5% 34.9% 2.2% 1.1% 2.4% 9.5%
Hantam LM 11.0% 1.2% 4.5% 3.4% 3.0% 9.9%
10.2% 15.3%
10.7% 11.0%
10.8% 23.1%
10.7%
11.9%
14.7%
Hantam Local Municipality Local Economic Development Strategy 2011 Northern Cape 15.1% 100%
General government Total (Source: Quantec Data 2009)
Namakwa DM 11.8% 100%
Hantam LM 18.4% 100%
The sectors that contributed the most to the Hantam Local Municipality are: 1. Finance, insurance, real estate and business services (23.1%) 2. General government (18.4%) 3. Community, social and personal services (14.7%) 4. Agriculture, forestry & fishing (11.0%) 5. Transport, storage & communication (10.8%)
3.4.3. Comparative Advantage A comparative advantage indicates a relatively more competitive production function for a product or service in a specific economy (regional or sub-regional) than in the aggregate economy (provincial or national). It therefore measures whether a specific economy produces a product or renders a service more efficiently than another. One way to measure the comparative advantage of a specific economy is by way of the location quotient. A location quotient as a tool, however, does not take into account external factors such as government policies, investment incentives, and proximity to markets, etc, which can influence the comparative advantage of an area. The Locational Quotient is used to calculate the comparative advantage of the relevant study areas. The location quotient is a calculated ratio between two economies, in this case the metropolitan and local economies. This ratio is calculated for all industries to determine whether or not the district or local economy has a greater share or advantage of that industry. If an economy has a location quotient greater than 1, it means that economy enjoys a comparative advantage. The interpretation of the locational quotient is illustrated in Table 17 below. Table 17 - Locational Quotient Interpretation Locational Quotient Classification Less than 0.75 Low
Interpretation Regional needs are probably not being met by the sector resulting in an import of goods and services in this sector
0.75 to 1.24
Medium
Most local needs are being met by the sector. The region will probably be both importing and exporting goods and services in this sector
1.25 to 4.99
High
The sector is serving needs beyond the border, exporting goods and services in this sector to other regions or provinces
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Hantam Local Municipality Local Economic Development Strategy 2011 Locational Quotient More than 5.00
Classification Very High
Interpretation This is indicative of a very high level of local dependence on the sector, typically in a “singleindustry” community
(Source: Urban-Econ 2010) Table 18 below indicates the sectors where the Hantam LM has a comparative advantage in the Namakwa District Municipal area in terms of GDP and employment. Table 18 - Comparative Advantage, 2009 In terms of GDP Agriculture, forestry and fishing Mining Manufacturing Electricity, gas and water Construction Wholesale and retail trade, catering and accommodation Transport, storage and communication Finance, insurance, real estate and business services Community, social and personal services General government (Source: Quantec Data 2009)
2.46 0.04 2.03 3.05 1.27 1.04 1.01 2.09 1.24 1.56
In terms of Employment 1.69 0.04 1.62 2.23 0.89 0.84 0.77 1.65 1.23 0.95
In terms of GDP the Hantam LM has a comparative advantage within the Namakwa District Municipality in the following sectors: 1. Electricity, gas and water 2. Agriculture, forestry and fishing 3. Finance, insurance, real estate and business services And in terms of employment: 1. Electricity, gas and water 2. Agriculture, forestry and fishing 3. Finance, insurance, real estate and business services
3.5. Summary and Conclusion The Hantam LM’s demographics and access to services can be summarised as follow: Population Growth – Hantam’s average population growth rate from 2001 to 2010 is negative. Hantam’s average population growth rate from 2001 to 2010 (-0.7%) was lower than both the District (0.0%) and Provincial average (0.04%).
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Hantam Local Municipality Local Economic Development Strategy 2011
Dependency - The Hantam LM’s population can be regarded as having a high dependency ratio, with 8.4% of the population over the age of 65 and 26.3% are under 15 years. The latter youth group will be demanding education, housing and jobs in the near future. Household Income – A more significant portion Hantam’s households (63.0%) fall within the low income bracket than the District (58.8%). Approximately 6.8% of Hantam’s households have no monthly income. Income categories will not improve unless the population’s skills improve through better education attainment opportunities and job creation in higher skilled economic sectors. The monthly weighted average household income of Hantam is slightly higher than the District’s average, but lower than the Provincial average. Adult Education – Hantam has a higher portion of adults with no schooling (16.4%) than both the District (5.8%) and the Province (12.2%), indicating a need for skills development ain training. Housing – According to the Local IDP (2010/2011) Hantam has a housing backlog of 730 houses. According to standardised regional data (Quantec, 2011), the portion of households resident in informal dwellings in the Hantam LM (253 households according to the IDP 2010/11), is less than that of the District and Province. Electricity – Only urban areas within the Hantam LM have access to electricity and rural areas thus have to rely on other means. In comparison with the District (89%), household’s resident in Hantam (85.9%) has less significant access to electricity. Households’ resident in Middelpos (26) have no access to electricity and are supplied with wood and lamp oil. Refuse Removal – The portion of households with access to refuse removal by local authority within the Hantam LM (83.2%) are less than those resident in the Namakwa District (87.1%). Appropriate Sanitation – The portion of households resident within the Hantam LM (76.1%) have a higher access to appropriate sanitation (chemical or flush toilet) than both the District (74.7%) and Province (67.8%). According to the local IDP (2010/11) there are still 55 bucket system toilets within the Hantam Municipal area. Piped Water – The portion of households resident in Hantam with access to piped water less than 200 meter from their dwelling is only slightly less (93.3%) than the District average (93.8%). According to the Hantam IDP (2010/11) all residents of the Hantam LM have access to water on their property.
The labour, employment and economic structure of the Hantam LM can be summarises ads follow: Unemployment rate – Hantam has a higher unemployment rate (22.1%) than the Namakwa DM (19.3%). Skill Level – More than half (51.5%) of employed individuals in Hantam are classified as semiand unskilled, showing that skills training is a high priority. Economic Growth – From 2008 to 2009 Hantam experienced a more significant economic growth rate (1.0%) than both the District and the Province which experienced a negative growth rate (-2.1% and -0.8% respectively). From 2001 to 2009, Hantam’s average annual economic growth rate (4.6%) was more significant than both the District (1.0%) and Provincial (2.4%) average.
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Hantam Local Municipality Local Economic Development Strategy 2011 The Table 19 below depicts the Hantam LM’s economic sectors in terms of GDP contribution, employment contribution and comparative advantage (location quotient). Table 19 – Sector Performance Indicators Agriculture, forestry & fishing Mining & quarrying Manufacturing Electricity, gas & water Construction Wholesale & retail trade, catering & accommodation Transport, storage & communication Finance, insurance, real estate & business services Community, social & personal services
GGP 11.0% 1.2% 4.5% 3.4% 3.0% 9.9% 10.8% 23.1% 23.6%
Employment 21.3% 0.6% 4.5% 0.9% 5.1% 12.3% 2.6% 13.4% 33.1%
LQ 2.5 0.0 2.0 3.0 1.3 1.0 1.0 2.1 1.40
From Table 19 the following leading sectors were identified: Agriculture, forestry & fishing Finance, insurance, real estate & business services Community, social & personal services (including General Government Services) Wholesale & retail trade, catering & accommodation Transport, storage & communication The next section turns to identifying specific economic development and growth opportunities within the Hantam Local Municipality.
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Hantam Local Municipality Local Economic Development Strategy 2011
SECTION 4: OPPORTUNITY ANALYSIS 4.1. Introduction The purpose of this section is to identify potential local economic development opportunities in the Hantam Local Municipality, based on the current situation within the municipality, as detailed in the preceding situation analysis. A SWOT analysis and a local sectoral potential analysis will help create an understanding with regard to the sectoral competitive advantages of the local economy and this will be used to determine the development potential within the Hantam Municipal area.
4.2. Integration of LED LED is an approach to sustainable economic development that encourages residents of local communities to work together to stimulate local economic activity that will result in an improvement in the quality of life for all in the local community (as mentioned in Section 1 above). LED initiatives around the world have repeatedly failed due some common myths about LED, listed and deflated below: 1. LED can occur without regional linkages. Economic development needs cannot be met by individual communities alone – cognizance needs to be taken of regional context, which has implications for linkages, leakages, injections and comparative advantages of an area. 2. Economic development causes sprawl. Economic development can be managed within spatial and environmental frameworks. 3. Any new business is right for our community. Communities are characterized by varying skills, education levels, cultural and moral preferences, consumer preferences and income levels that all impact on which types of businesses are feasible on the one hand and socially appropriate on the other. In addition, climate, infrastructure and geographical characteristics impact on which businesses will be viable. 4. An economic development officer will turn our economy around. Economic development results from the processes of numerous public, private and civic sector actors within an enabling environment. While LED officers and LED units are needed to drive these processes, they alone will not transform an entire economy. 5. Industry will locate here if we provide enough incentives. While tax and other incentives are considered by industry role-players when deciding on where to locate, other factors also come into play, such as infrastructure, proximity to input sources, proximity to markets, quality of life, labour pool quality, overall business and banking environment and so on. Offering incentives without addressing the other factors will, at best, result in short-term investment until such a point as incentive schemes expire. 6. One big manufacturer will solve all of our economic problems.
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Hantam Local Municipality Local Economic Development Strategy 2011
Economic development must be sustainable and in order to be considered sustainable, a diverse economy should be the goal. A mature, strong and sTable economy is characterized by strength across a range of sectors, including primary, secondary and tertiary activities that cater for diverse consumer and business (value chain) needs
The Figure 11 below shows a basic virtuous circle of economic growth. It is based on the idea that investments in improving infrastructure, services, human capital and/or other physical assets contribute to the attainment of production efficiencies and a competitive market environment that assist the economy to grow through job creation and increased expenditure (household, business and government). Investments (injections) in this sense can be in the form of capital, skills or technology that is transferred from outside the local economy. Figure 11 - Virtuous Circle of Economic Growth Leakage Return on investment, increasing tax base, improved access to capital, growing purchasing power
More services, infrastructure facilities, business etc
High productivity, high efficiency
Injection/ Investment
Permanent job creation: Employment
Bio-psycho-social wellbeing, learning etc
Similarly, leakages occur. Leakages may be in the form of profits removed from the area in the form of return on investments made by outside investors. Another form of leakage is expenditure on imported goods and services. In order to increase the momentum of virtuous economic growth, two aspects need to be focused on, namely:
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Hantam Local Municipality Local Economic Development Strategy 2011
Attracting injections – attracting injections (monetary) into the local economy to increase demand for goods and services within the local economy is seen as demand side factors for maximising opportunities within the Hantam Municipality’s economy. The most common injection-seeking or demand-side LED strategies can be classified as two main groups: o The promotion of export-sectors. In order to unlock these sectors it is important to have a good understanding of local comparative advantages which enables the targeting of key economic sectors. o The attraction of spend within the area. For example linking various tourism activities such as a business tourist in the area for a conference spending the night and/or visiting some of the tourist sites within the area. Reducing leakages – this entails investing in further processing of primary sector produce and/or retaining and expanding local service and trade industries.
It is important to note that in order to attract investment one needs to know what the area has and what is still needed in order to make the area more attractive for investment. This is referred to as supply side factors which look at increasing the strengths of the area and minimising the weaknesses. Supply side factors typically addressed include: 1. Labour quality 2. Logistics and transport infrastructure 3. Ease of starting and operating a business (aimed at both SMME’s and big businesses) 4. Incentive schemes 5. Marketing and making available inputs (natural resources, land, etc) 6. Efficient government provision of goods and services 7. Focus on quality of life aspects (tourism, recreation, health, educational and retirement facilities)
4.3. SWOT Analysis A SWOT analysis is a commonly used tool used to facilitate a strategic review of a particular organisation. It is a high-level exercise that identifies strengths, weaknesses, opportunities and threats of the organisation. The strengths and weaknesses are internal factors that the organisation may control. Opportunities and threats are those factors external to the organisation and therefore the organisation has little or no control over these macro environment factors. The SWOT analysis does not identify what should be done. Rather, it provides a framework for identifying where strategic opportunities may exist and how to avoid weaknesses inherent in the organisation or external threats from limiting future expansion and growth. The purpose of the SWOT analysis is to identify and assess the strengths, weaknesses, opportunities and threats in the Hantam Local Municipality, in terms of local economic development (refer to Table 20). The identification of strengths, weaknesses, opportunities and threats within the municipal area provides the basis upon which the pillars of the LED strategy may be built.
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Hantam Local Municipality Local Economic Development Strategy 2011 Table 20 - SWOT Analysis
Weaknesses
Low institutional capacity (municipal workforce & LED budget) Limited water resources and low rainfall Arid to semi-arid land with low agricultural carrying capacity Economy mostly reliant on agriculture (sheep)- undiversified economy Availability of land for emerging farmers is a problem Seasonality of working opportunities Lack of support for emerging entrepreneurs Small dispersed towns – mostly marginally active economies (nodes classified as stagnating small towns) Increasing backlog of housing & basic services Accessibility - lack of tarred roads & poor road quality High poverty level Areas with low/no cellphone, TV & radio signals Lack of adequate skills Logistic problems Electricity shortages Land reform taking place too slowly Skills gap in skilled positions Municipal owned land is not being used for its best strategic uses Lack of jobs and economic development Lack of available land for local residents Fragmentation of tourism industry Lack of access to good health care Lack of sport and recreational facilities Poor quality of education High cost of land Poor public transport network Poor resourcing of LED strategies Increasing levels of poverty and drug related crimes High levels of teenage pregnancy
Strengths
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Scenic open land, nature reserves and heritage sites Local Nama cultures Rich in wildflowers in the spring Bulbs in Nieuwoudville Sufficient sunshine - Solar potential Abundant labour Strong agricultural sector in terms of sheep farming and rooibos cultivation R27 tar road connection the areas with the N7 to Western Cape (via Vanrhynsdorp) Mineral deposits – salt, copper, gypsum, quartzite, sandstone, silt & shale (possible small scale mining opportunities)
Hantam Local Municipality Local Economic Development Strategy 2011
High dependency on social grants and wage income by the poor Virtually non-existent manufacturing industry Low income levels and low spending capabilities Lack of Tourism information and marketing
Threats
Climate change that will impact on water resources and agricultural activities Water supply Water quality Political dynamics/uncertainties Narrowing agriculture profit margins Fluctuations in tourism industry Global uncertainty of economic conditions Fluctuations in Rand cycles Brain-drain as individuals from the Northern Cape migrate from scarcity of business, finance, technical skills, and so forth
Opportunities
Growth in tourism Unexploited mineral opportunities Brand development Strengthening local government spheres EPWP, SETAs and learnerships Renewable energy Opportunities for technology to fill gaps Agro-processing and technology innovations (i.e. drought resistant crops) Eco-tourism
4.4. Potential Opportunity Analysis The potential analysis is the process of identifying the areas strengths in order to develop bankable cross-cutting projects.
4.5. Criteria for Determining Development Potential Before commencing with the discussion of the relevant development potential criteria, it is deemed necessary to first clarify the meaning of potential. The Concise Oxford Dictionary (1990) describes “potential” as follows: Capable of coming into being or action The capacity for use or development Usable resources Therefore, potential refers to resources and/or capacity, which can be utilised or developed. In order to identify or determine this development potential and/or opportunities within an economy, a set of criteria is required against which to measure the resource and/or capacity to determine potential. The set of criteria serves as a tool to identify areas with potential for development and opportunities within each of the local economic sectors. The criterion for determining development potential therefore includes the following: a) Availability of raw materials and resources
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Hantam Local Municipality Local Economic Development Strategy 2011 b) c) d) e) f) g) h) i)
Economic linkages Market trends Gap analysis / agglomeration advantages Logistics / Nodal point function Regional service delivery function Availability of labour Technology change Enabling policy environment
The above criteria will be used to evaluate the leading economic sectors identified in the following sub-section.
4.6. Sector Opportunities The purpose of this sub-section is to provide an assessment of the economic activities within the leading economic sectors in order to determine their potential for economic development. To ensure alignment with National, Provincial, District and Local policy and legislation, their objectives and key focus areas as well as the leading sectors (in terms of contribution to GDP, contribution to employment and location quotient - refer to Table 19 in Section 3) within the Hantam LM are illustrated in Table 21 below: Table 21 – Policy and Legislation Sector Focus Areas National Focus Provincial Focus District Focus
Infrastructure Agriculture and agro-processing Mineral beneficiation & increasing the rate of minerals extraction The green economy Manufacturing sectors: green energy saving industries plastics, pharmaceutic als, chemicals and packaging textiles and
Livestock products Game farming Horticulture Ago-related industries Tourism Beneficiation of minerals Renewable energy
Institutional Development for Investor Readiness SMME Development Agricultural Sector Development Mining Sector Development Industrial Development Renewable Energy Development Tourism Development Quality of Life
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Local Focus
Agriculture Mining Tourism Infrastructure
Leading Sectors
Agriculture, Finance & business services Community, social & personal services (including General Government Services) Wholesale & retail trade Transport, storage & communication
Hantam Local Municipality Local Economic Development Strategy 2011 National Focus
Provincial Focus
leather fuels and biofuels agroprocessing, food processing and organic food processing Tourism
District Focus
Local Focus
Leading Sectors
Improvement
From Table above the following leading sectors were identified: Agriculture and agro-processing Tourism Electricity, gas and water - Renewable energy Small scale mining and mining beneficiation Community, social & personal services The economic potential for each of the above leading economic sectors will be analysed in the following sub-section.
4.7. Agriculture The agriculture sector incorporates establishments and activities that are primarily engaged in farming activities, but also includes establishments focusing on commercial hunting, game propagation, forestry, logging and fishing.
Figure 12 below indicates the year on year growth performance of the agricultural sector for the period 1995 to 2009 in the Northern Cape Province, Namakwa District and the Hantam Local Municipality.
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Hantam Local Municipality Local Economic Development Strategy 2011 Figure 12 - Agricultural Sector Growth Performance, 1995 to 2009 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20%
Northern Cape
Namakwa DM
Hantam LM
(Source: Quantec Data 2010) Figure 12 shows that the agricultural sector’s annual growth varies year-by-year, indicating vulnerability to external shocks such as climate and currency fluctuations. Between 2001 and 2009, the Agriculture Sector averaged an annual growth rate of just 1.3% Hantam LM consists largely of non-arable, low potential grazing land and is therefore ideally suited to sheep farming, which is characteristic of this municipal area. Other than the flowers in spring and pristine Karoo desert environment, there has been minor growth in most of the towns inside Hantam LM. Calvinia has developed more convincingly over the last few decades and forms the heart of one of South Africa’s largest wool-producing districts, but the other towns have not developed further than the existing resources could take them. Most growth therefore has been associated with the wealth created by the commercial farmers and with a few other sectors of economic activity that have more recently emerged out the flower, bulbs and rooibos tea industries. The agriculture activities that take place within Hantam LM include: Sheep farming for meat (70%) and wool (30%) Goat farming Game farming Farming of flower bulbs for export to Holland (job creation of approx. 30) Rooibos tea production o Rooibos tea is farmed productively on the sandstone soils and is famous for its fine quality. Recently, a state of the art rooibos tea facility was built at Nieuwoudtville, which is likely to increase the demand for rooibos production in the surrounding
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Hantam Local Municipality Local Economic Development Strategy 2011
area. If it is successful this project will be extended to include a pasteurizing facility for the tea to be exported. o Approximately 1500 – 1800 tonnes of rooibos are being produced per annum and are currently in the process of expansion towards 3000 tonnes. There are 30 commercial rooibos farmers and 55 emerging rooibos farmers in Hantam. Seed potato production (50ha in Nieuwoudtville) Lucerne and wheat production in Calvinia along the river bank
In the past few years, farmers have been experiencing the severe impacts of drought and higher temperatures, which are affecting soil conditions and an already limited water supply. If the future of the Rooibos industry is to be guaranteed, farmers will need to adapt their farming practices to survive in these new conditions. The Hantam LM does not have sufficient water supplies to host any fishing & mariculture projects. In the Hantam LM there are: 564 commercial farmers Emerging farmers o Total of 143 in Hantam LM o 55 in Nieuwoudtville o 30 in Brandvlei The following is a list of LED projects/opportunities identified in the Hantam IDP and SDF as well as additional identified opportunities within the Agricultural Sector: Projects and Opportunities Identifies in the IDP and SDP
Opportunities
Establish a hide processing plant Rooibos Tea Processing Plant in Nieuwoudtville Rooibos Tea Emerging Farmers Development in Nieuwoudtville Job creation programme - garlic farming, eradication and processing of Prosopis, etc in Middelpos Develop chicken project (eggs) in Brandvlei Establish tunnel farming in Loeriesfontein Flower bulb project (exports; job creation) in Nieuwoudtville Abattoir in Calvinia Potato project in tunnels – Nieuwoudtville, Loeriesfontein Expansion of commonage and development of emergent farmers – Nieuwoudtville, Calvinia, Loeriesfontein, Brandvlei
Support is needed for the expansion of agricultural opportunities and agro-processing projects. Some agro-processing opportunities include: Wool processing Tanning industry Meat production New agricultural ventures should take cognisance of the trends in the market and feasibility studies need to be conducted to determine the viability of these new ventures. Potential new ventures include: Tropical crops along the Doring, Hantams, Klein Vis, Vis and Renoster Rivers Citrus Grapes
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Hantam Local Municipality Local Economic Development Strategy 2011 Projects and Opportunities Identifies in the IDP and SDP
Business hive, for marketing of proteas and flowers – Nieuwoudtville Wool processing – Calvinia Cultivation and sale of olive trees – Calvinia Wheat mills – Calvinia Hides and skins project – Loeriesfontein Chicken project – Brandvlei
Opportunities Apples Quavas New technological techniques should also be researched, such as drought resistant crops, water saving techniques and so forth There is also the need for better support of SMMEs and emerging farmers to start their own farms and continual support to ensure the sustainability of these ventures. The possibility of establishing a primary agricultural co-operative should be considered. A primary agricultural co-operative is a cooperative in which all the members are individuals. The purpose of a primary agricultural cooperative is to provide employment or services to its members and to promote community development. It takes a minimum of five natural persons to form a primary cooperative. The benefits of farming co-operatives include: Achieve what one cannot achieve on your own Provide easy access to needed services Pay less for inputs, marketing, distribution and selling of produce Process products if necessary Transportation costs are very high and therefore the local businesses in each town should focus on working together and sharing costs. This will have to be linked to the availability of basic infrastructure. Eradication and processing of Prosopis trees Agave cultivation and possible processing. Expansion of the rooibos tea production and its by-products Bulb farming near Nieuwoudtville Community gardens (food security)
4.8. Mining
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Hantam Local Municipality Local Economic Development Strategy 2011 The Mining sector includes the extracting and beneficiating of minerals occurring naturally in the environment (including solids, liquids and crude petroleum and gases). It also includes underground and surface mines, quarries and the operation of oil and gas wells and all supplemental activities for dressing and beneficiating for ores and other crude materials.
Many of the towns have benefited from mining-related infrastructure, such as hospitals, schools, sport facilities, and other infrastructure such as roads, reticulation systems for water and electricity, and a range of recreational sites such as dams. With almost the entire economy in towns such as Carletonville or Westonaria somehow dependent on the mines, ranging from suppliers, craftsmen and consultants to supermarkets, cafés and hairdressers, the (inevitable) closure of mines is perceived as a fundamental threat to the economic future of these municipalities. Figure 13 below indicates the year on year growth performance of the mining and quarrying sector for the period 1995 to 2009 in the Northern Cape Province, Namakwa District and the Hantam Local Municipality. Figure 13 - Mining Sector Growth Performance, 1995 to 2009 15% 10% 5% 0% -5% -10% -15%
Northern Cape
Namakwa DM
Northern Cape
(Source: Quantec Data 2010) Figure 13 shows that the mining and quarrying sector’s annual growth varies year-by-year, indicating vulnerability to external shocks such as climate and currency fluctuations. Between 2001 and 2009, the Hantam LM mining and quarrying sector averaged an annual growth rate of just -5.5%
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Hantam Local Municipality Local Economic Development Strategy 2011 There are some mining activities in Hantam LM, which includes salt and gypsum mining, but neither contributes much in the way of jobs or economic growth in these areas. The geological composition of the Hantam area does not lend itself to large-scale mining operations. The unexploited mining potential for Hantam lies largely in the north of the municipal area. The mining activities that take place within Hantam LM include: Salt (around Brandvlei and Loeriesfontein) - salt are packed into 50kg and 1 tonne packs on salt mine premises Gypsum (around Brandvlei and Loeriesfontein) o The demand for gypsum is dependent on the demand for cement (7% of a bag of cement constitutes gypsum) Ceramic clay (around Calvinia) Quartzite, sandstone, silt and shale (around Nieuwoudtville)
Annexure C contains additional information regarding operating status of mines and quarries as well as mineral deposits.
The following is a list of LED projects/opportunities identified in the Hantam IDP and SDF as well as additional identified opportunities within the Mining Sector: Current Projects and/or Opportunities Identified in the IDP and SDP Establish stone project in Loeriesfontein Salt processing – feasibility study required in Brandvlei Salt production project – Loeriesfontein, Brandvlei Gypsum production in Loeriesfontein Stone mason’s project - Loeriesfontein, Brandvlei
Opportunities Some of the minerals within the Hantam LM have never been exploited, these include: Salt, gypsum, cobalt, copper and lead deposits west of Brandvlei Copper west of Loeriesfontein Salt and gypsum around Brandvlei and Loeriesfontein Feasibility studies would need to be conducted if these opportunities were to be taken forward. Careful planning needs to be done with regard to water provision and upgrade of roads if these mining ventures are to be explored further. The limited amount of skilled people in Hantam may pose a threat to the sustainability of smallscale. Beneficiation of raw mining materials should be considered as a future prospect, as well as aiding small-scale mining SMMEs
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Hantam Local Municipality Local Economic Development Strategy 2011 4.9. Electricity, gas and water This sector includes the supply of electricity, gas and water, the production, collection and distribution of electricity, the manufacture of gas and distribution of gaseous fuels through mains, supply of steam and hot water, and the collection, purification and distribution of water.
This sector includes the supply of electricity, gas and water, the production, collection and distribution of electricity, the manufacture of gas and distribution of gaseous fuels through mains, supply of steam and hot water, and the collection, purification and distribution of water. Figure 14 below indicates the year on year growth performance of the electricity, gas and water sector for the period 1995 to 2009 in the Northern Cape Province, Namakwa District and the Hantam Local Municipality. Figure 14 - Electricity, Gas and Water Sector Growth Performance 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20%
Northern Cape
Namakwa DM
Hantam LM
(Source: Quantec Data 2010) From Figure 14 it is evident that the electricity, gas and water sector’s annual growth varies year-byyear, indicating vulnerability to external shocks such as climate and currency fluctuations. Between 2001 and 2009, the Hantam LM’s electricity, gas and water sector averaged an annual growth rate of just 10.9%. The Hantam LM has experienced a higher annual growth rate than both the District and Province since 2001.
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Hantam Local Municipality Local Economic Development Strategy 2011 The average annual precipitation for Hantam LM is 198.36mm per year as measured at Loeriesfontein Debrak rainfall station over the period 2005-2010. The western part of Hantam LM consists of rugged, mountainous terrain where the Bokkeveld and Roggeveld escarpment veers upwards towards the interior and winter rainfall patterns deliver up to 600mm per year. However, this feature does not extend across the entire area as the south western corner consists of a portion of the Tanqua-Karoo area which is characterised by low lying rocky plains that receive as little as 50mm rainfall per year (HLM SDF 2010). Groundwater is the main water source for this region: Calvinia’s water supply is primarily from the Karee Dam with seven boreholes for emergency water provision. However, water quality from these boreholes is poor. The maximum potential abstraction from the three boreholes with better water quality is 1.171 Ml/day but this is unsustainable. The town also has a 1.3 megalitre reservoir with a 10 hour storage capacity. Nieuwoudtville obtains water from four boreholes. The borehole yields range from 0.5 to 4.5 l/s for 12 hours a day. Unfortunately, the water supply is primarily via asbestos pipes which frequently break and as a result the upgrading of the towns internal water network is a priority. Loeriesfontein obtains water from seven boreholes via a 0.45 and a 0.50 megalitre reservoir. The combined yield capacity of these boreholes is 150 kl/day, minimum, or 0.055 million m 3 per annum. There is sufficient water supply for the next 5-10 years depending upon growth of the town. Brandvlei obtains water from four boreholes which lie approximately 45km to the south-east of town. The annual abstraction is reported at 0.13 million m3 per annum with borehole yields of 1 to 1.3 l/s for 24 hours per day. An additional borehole which lies approximately 52km south east of town pumps water to a reservoir from which water gravitates to the town. There are two reservoirs on the northern boundary of the town which have a combined storage capacity of 0.43 megalitres Water is a scarce commodity in Hantam and effective water management is essential. The effect of agriculture along river banks (refer to Map 5 below), in the form of extensive vegetation clearance and overgrazing, has paved the way for the incursion of alien trees (red river gum, black wattle, oleander, mesquite, grasses), which clog up the catchment area and use up much of the meager water resources. It is important for the Hantam LM to focus upon its river systems and water catchment areas that are found in high lying region, in order to safeguard water availability for all who depend upon it.
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Hantam Local Municipality Local Economic Development Strategy 2011 Map 5 – Perennial Rivers
(Source: GIS Mapping, Department Water Affairs 2011)
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Hantam Local Municipality Local Economic Development Strategy 2011 Innovative water saving technologies should be implemented and the storage of water should be a priority. A rainwater tank “is a water tank which is used to collect and store rainwater runoff, typically from rooftops via rain gutters” (Wikipedia: Rainwater Tanks 2009). This can reduce the amount of water used from a household’s main water supply, thereby reducing a household’s water bill and conserving the environment by putting less pressure on scarce water supplies. Rainwater is also less salty than dam water and therefore is much better for the garden and appliances like washing machines (Rainwater Tanks Direct 2009). In South Africa the cost of rainwater tanks can be quite high therefore households can receive rebates (between R1,800 – R7,000) from government for their rainwater tanks (SA Water 2009). Eskom is the main supplier of electricity in Hantam LM and electricity is provided in all the towns although the electricity networks require attention, particularly in the smaller towns of Nieuwoudtville, Loeriesfontein and Brandvlei. Nieuwoudtville is the only town in which the Hantam LM provides electricity. The rural areas are, to a large degree, dependent on power from Eskom. Almost all households are supplied with electricity, with the exception of Middelpos where the Hantam LM supplies indigents with paraffin and wood. The Namakwa DM has a competitive advantage in the energy sector, with wind, solar, wave, nuclear and natural gas energy plants all having been identified for the area. Renewable energy has become a global priority and there is potential for both wind and solar power within the Hantam Local Municipality: Eskom is the main supplier of electricity in Hantam LM and electricity is provided in all the towns although the electricity networks require attention, particularly in the smaller towns of Nieuwoudtville, Loeriesfontein and Brandvlei. Nieuwoudtville is the only town in which the Hantam LM provides electricity. The rural areas are, to a large degree, dependent on power from Eskom. Almost all households are supplied with electricity, with the exception of Middelpos where the Hantam LM supplies indigents with paraffin and wood. The Namakwa DM has a competitive advantage in the energy sector, with wind, solar, wave, nuclear and natural gas energy plants all having been identified for the area. Renewable energy has become a global priority and there is potential for both wind and solar power within the Hantam Local Municipality: Map 6 below indicates solar power potential of South Africa.
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Hantam Local Municipality Local Economic Development Strategy 2011 Map 6 - Solar Power Potential (SA)
According to the Energy Outlook SA Report (2002:XV) the Northern Cape has some of the world’s best conditions for solar power. A small 6.1 KW solar energy system will provide 8,721 KW hours of energy per annum, saving 6.6 tons of carbon from going into the atmosphere and would be the equivalent of planting 4.4 acres of trees. The only disadvantage is that the solar power system is expensive (around R22 per watt) and would need some form of battery storage to ensure energy during heavy winter periods (Eskom: Solar Power 2009). Solar water heaters can save up to 4.5 kWh per household per day; which works out much cheaper than a geyser in the long run (a saving of up to 90% of your water heating costs). Solar water heaters are very expensive (R6,000 – R20,000 per household) but they save 6,500 GWh per year, which will save money in the long-term. The solar water heaters use the sun’s energy to heat the water but they still contain an electric element if there is insufficient solar power. Solhart South Africa has partnered up with Eskom to provide rebates for households that purchase a solar water heater (up to R4,917). Besides energy replacement with a solar energy system you can also get a solar cooker. These cookers don’t need full sunlight and can even work at night. The only foods that you can’t be made in a solar cooker are pasta dishes and any deep-fried meals, so a person should not replace their conventional cooking appliances. Solar cookers take much longer to cook your food but they can cut your cooking energy costs by one-third The Map 7 below indicates the wind potential of South Africa.
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Hantam Local Municipality Local Economic Development Strategy 2011 Map 7 - Wind Potential (SA)
(Source: Wind Watts Turbines 2011) Wind power is one of the cleanest energy resources of electrical energy, but it also requires a place to store its energy (i.e. in batteries) and it usually needs a constant wind that comes from one direction at a time. Before wind farms can be constructed the following issues need to resolved: Site location Legal rights – up to 22.2 km distance from a countries shore belongs to the national authorities. Coastal Zoning The following is a list of LED projects/opportunities identified in the Hantam IDP and SDF as well as additional identified opportunities: Projects and Opportunities Identifies in the IDP and SDP Eradication of the Prosopis tree – Werk vir Water Project. Prosopis wood can then be processed into charcoal (Nieuwoudtville) Storm water project – temporary job creation
Opportunities
Alien vegetation should be removed from along river banks (specifically Prosopis). Effective water management is essential. Water sources and water infrastructure within the Hantam LM area should be improved
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Hantam Local Municipality Local Economic Development Strategy 2011 Projects and Opportunities Identifies in the IDP and SDP Solar Energy Facility – the site proposed for the solar energy facility is located on the farm Kaalspruit (Portion 8 of the farm Kaalspruit 283) on the outskirts of Loeriesfontein.
Biodiesel from alien trees
Opportunities Innovative water saving technologies should be implemented and the storage of water should be a priority (rainwater tanks & grey-water recycling) The Hantam LM has the opportunity to position itself strategically within South Africa’s renewable energy production. Pre-feasibility studies have shown that wind, and solar energy plants are suitable given the climate and geography of the Municipality. There is potential for the roll-out of solar cookers and solar water geysers within communities of Hantam. It is difficult for labour to access job opportunities with no transport and, in terms of skills; there is a need for greater education and training.
4.10. Community Services
The community services sector includes public administration and defense activities, activities of government, government departments and agencies; education, public and private; health and social work; sewage and refuge disposal, sanitation and similar activities; activities of membership organisations; recreational, cultural and sporting activities; washing and drycleaning of textiles and fur products, hairdressing and other beauty treatment, funeral and related activities
Services such as health, social work and educational services are prioritised in local and district IDPs and through the Moral Regeneration Movement. Throughout all local and the district IDPs government services are prioritised, particularly to address backlogs in basic services, transport, as well as safety, security and correctional services. Over-dependence on the services sector is risky, however, as a strong tax base is a pre-requisite for funding for many of these services, and a strong tax base, in turn, requires a strong and growing private sector economy. The Expanded Public Works Programme (EPWP) is proving very successful in the Namakwa DM, with roads undergoing resurfacing and/or tarring for the first time. There is an
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Hantam Local Municipality Local Economic Development Strategy 2011 expressed need for the EPWP concept to be expanded to meet other infrastructural and servicedelivery objectives. There are a total of 17 schools in the municipal jurisdiction area of Hantam LM and these include primary and secondary level schools. There are skills development and training/tourism centres (i.e. tourism guides, utilisation of libraries for UNISA, training, communication, internet facilities) in Nieuwoudtsville and Calvinia. Table 22 below indicates the social infrastructure found in Hantam LM. Table 22 - Social Infrastructure (Hantam LM) Social Infrastructure Calvinia Nieuwoudtville Crèche 2 0 Primary Schools 3 1 Secondary Schools 2 1 Tertiary Education 0 0 Police Station 2 1 Hospital 1 0 Clinic 1 1 Mobile Clinic 1 0 Libraries 1 1 Cemeteries 2 1 Sports & Recreation 8 1 Arts & Culture 1 0
Loeriesfontein Brandvlei 1 1 2 2 0 0 0 0 1 1 1 1 1 1 0 0 1 1 2 2 4 3 1 0 (Source: Hantam IDP 2010)
Calvinia is the largest town in the Hantam LM. Facilities in Calvinia include a police station, and medical facilities, i.e. hospital, clinic and mobile clinic. Nieuwoudtville, which is situated on the western boundary of the Hantam LM, has facilities in the town which include a police station and a clinic. Loeriesfontein lies to the north west of Calvinia and offers various facilities which include a police station, hospital and medical clinic. Brandvlei is a small town situated on the north-eastern boundary of Hantam LM and has facilities in the town which include a police station, medical facility (hospital) and a mobile clinic.
Strategically located community health care centres bring some relief to the health sector; however a definite need exists for an additional clinic and mobile clinic, as well as the need for a community centre in Calvinia. According to the information highlighted in the Socio-Economic Analysis (as part of this report) the following can be highlighted:
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Hantam Local Municipality Local Economic Development Strategy 2011
Housing – According to the Local IDP (2010/2011) Hantam has a housing backlog of 730 houses. According to standardised regional data (Quantec, 2011), the portion of households resident in informal dwellings in the Hantam LM (253 households according to the IDP 2010/11), is less than that of the District and Province. Electricity – Only urban areas within the Hantam LM have access to electricity and rural areas thus have to rely on other means. Households’ resident in Middelpos (26) have no access to electricity and are supplied with wood and lamp oil. In comparison with the District, household’s resident in Hantam has less significant access to electricity. Refuse Removal – The portion of households with access to refuse removal by local authority within the Hantam LM (83.2%) are less than those resident in the Namakwa District (87.1%). Appropriate Sanitation – The portion of households resident within the Hantam LM (76.1%) haveve a higher access to appropriate sanitation (chemical or flush toilet) than both the District (74.7%) and Province (67.8%). According to the local IDP (2010/11) there are still 55 bucket system toilets within the Hantam Municipal area. Piped Water – The portion of households resident in Hantam with access to piped water less than 200 meter from their dwelling is only slightly less (93.3%) than the District average (93.8%). According to the Hantam IDP (2010/11) all residents of the Hantam LM have access to water on their property.
The Hantam IDP 2010/2011 identifies the following top priority areas in terms of infrastructure: 1. Housing 2. Supply of sufficient, good quality water 3. Maintenance of roads and storm water systems 4. Street lighting The following is a list of LED projects/opportunities identified in the Hantam IDP and SDF as well as additional identified opportunities within the Sector: Planned Projects in the IDP and SDP
Opportunities
Middelpos – Planning and measuring of 40 erven. There are opportunities then to focus on better educational opportunities, better health services, upgrading roads and communication infrastructure, and increasing job opportunities to improve the tax base of the municipality. Nieuwoudtville – Planning, measuring and Nieuwoudtville – Upgrading of bulk electricity servicing of 72 erven. and water network. Service of vacant erven for housing. Development of new/additional water sources. Calvinia – Plannning and measuring of 300 erven, Calvinia – Plannning, measuring and servicing of service of vacant erven for housing. Upgrading of erven. Upgrading of bulk electricity and water bulk electricity and water network. network. Loeriesfontein – Upgrading of Sports Hall Loeriesfontein –– Upgrading of bulk electricity © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Planned Projects in the IDP and SDP
Opportunities
and water network. Service of vacant erven for housing. Brandvlei – Upgrading of bulk electricity and high Brandvlei –– Upgrading of bulk electricity and mass lighting (phase 1) water network. Upgrading of roads. Service of vacant erven for housing. Middelpos – Develop to same standard of surrounding towns. Electrification of households. Development of new/additional water sources. Upgrading of roads. Skills Training Centre with a database of local labour & skills that can be used by outside contractors or local businesses. The old Voortrekker Hospital in Calvinia can be used as a base. There are some projects that are already taking place within the Hantam LM area: Training Centre in Calvinia, for basic life skills, care of the elderly, catering, crèches Driving school – Calvinia Multi-purpose Community Centre in Calvinia Loeriesfontein housing project – ASLADEFCO o This has been a project since 1999, but the contract to construct 307 houses was signed in February 2011
4.11. Tourism Tourism is not an economic sector on its own (as classified by the SIC), but forms part of other sectors especially the trade, transport and finance sectors. However, due to its increasing importance as an income and employment creator in South Africa, it is believed that this industry should be discussed separately from the other sectors.
Defining the tourism industry is therefore difficult as it includes many different sources of goods and services. The World Trade Organisation’s definition of tourism states that ‘tourism comprises the activities of persons travelling to, and staying in places outside their usual environment, for not more than one consecutive year, for leisure, business and other purposes. The usual environment of a person consists of a certain area around his / her place of residence, plus all other places he / she frequently visits” e.g. the workplace.
A significant economic factor of the Namakwa DM’s economy is “flower” tourism that is based on Namaqualand’s fantastic annual wildflower displays that cover regions in a kaleidoscope of colour © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 each spring July – October). This is a distinctly seasonal aspect of the economy, lasting only eight to ten weeks, and being highly dependent on the timing and duration of the previous winter rains. However, there are indications that in recent years the regional ecotourism industry is diversifying (e.g. 4x4 and nature tourism) with greater numbers of tourists arriving throughout the year. The Namakwa DM has tourism potential in terms of the following niche markets: Eco-tourism – vast open land, unique natural flora and a number of national parks and conservancies. Adventure tourism – 4X4 trails, hiking & fishing, particularly if linked to the south-north route from the Western Cape into Namibia. Historical and cultural tourism – the rich heritage of the Khoi San/Nama people, as well as the mining museums which showcase the history of Diamond Mining and settlement in the area. Technological tourism – the South African Large Telescope (SALT) at the South African Astronomical Observatory in Sutherland, as well as the SKA radio telescope project. Energy tourism – if the wind and solar farms are developed. Calvinia lies at the foot of the Hantam Mountains and is the region’s key growth point and one of the country’s largest wool-producing areas. Calvinia hosts the annual Hantam Meat Festival which is a celebration of the sheep farming activities that are the predominant livestock farming activity in the Municipality. The festival also showcases Afrikaans culture with music shows and an array of local food specialities. Attractions in Calvinia include Anglo-Boer war remnants, Hantam House, Khoisan rock paintings, the museum, a historical trail, and various 4x4 routes along the escarpment with breath-taking views. There are also bushman paintings along the riverbed and huge Namaqua fig trees clinging to rock surfaces. The following natural features are found in the area: The Hantam Mountain outside Calvinia is the highest peak in the Northern Cape Province. The Akkerendam Nature Reserve is a 2,750 ha reserve located at the foot of the Hantam Mountain and contains both Mountain Renosterveld and Western Mountain Karoo vegetation types. The reserve was established in 1962 and serves as an important catchment area for the nearby town of Calvinia. Although it is a Type 2 conservation area, it is a key area for conservation owing to the many endemic plant species located on the mountain within the reserve. Near the town of Calvinia you can find the Tankwa Karoo National Park with a wide range of endangered plant specifies distinctive to this area. The park provides a unique birding experience and a variety of other wildlife. The Tanqua Karoo National Park is 121,000 ha in size. i.e. Anglo-Boer war remnants, rock paintings, a museum, historical trail, meat festival, 4x4 routes etc Nieuwoudtville is both unique for its spectacular wild flower display during spring and autumn and it also has the richest concentration of bulb species in the world, hence its designation as “The Bulb Kingdom of the World”, Nieuwoudtville therefore attracts nature lovers and botanists alike. Other interesting sites in Nieuwoudtville include the Neo-Gothic sandstone church, which is a national
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Hantam Local Municipality Local Economic Development Strategy 2011 monument, local historical sandstone ruins, aloe forest and glacial rock striations dating back to the Permian Era of 280 million years ago, abundant rock art, the Nieuwoudtville Wild Flower Reserve, Oorlogskloof Nature Reserve and the Waterfall Reserve. Outdoor activities include bird watching, hiking, cycling, 4x4 routes, hand and paragliding and stargazing. The following natural features are found in the area: The Kokerboom Forest just outside Nieuwoudtville is a one of a kind phenomenon, and is the largest collection of Kokerboom’s in the world. The Nieuwoudtville waterfall is a remarkable feature in such an arid area. The Bokkeveld Plateau contains the greatest diversity of geophytes in the world – the autumn lily flower display on the dolerite soils around Nieuwoudtville is particularly unusual. The Oorlogskloof Nature Reserve is located 6km west of Nieuwoudtville, and just on the peak of the escarpment, is 4,789 hectares in size and a renowned hiking destination, with an extensive network of trails running throughout. The Hantam National Botanical Gardens are approximately 8,000 hectares in size and it is the first botanical garden in the country that retains its natural landscape, and contains a remarkable concentration of bulbous plant diversity – 309 species of Geophytes have been confirmed in the area. Loeriesfontein is also best known for its beautiful spring flowers which characterise the region during August and September. If rains are good, the flower season will last into October and this is the month for the “vygies” which cover large areas in a spectacular lilac, pink and red carpet. Loeriesfontein also boasts a unique Windmill museum, one of only two in the world. This quaint little town offers the Windmill Museum, which exhibits the culture and historical way of life of Trek Farmers in the region and a farm museum on the farm Rheboksfontein which includes a “perdemeul” (horse-mill) which is still in working order. Another unique attraction of Loeriesfontein is the Gannabos or Quiver Tree Forest which is home to the largest and most southern colony of Aloedichotoma. These giant aloes reach a height of 4 metres and store water in their trunks enabling them able to resist drought indefinitely. The town of Brandvlei is dominated by a large Dutch Reformed Church built in the Neo-Gothic style. The larger region is known as “The Thirstland”, it is flat and interspersed with huge salt pans which are transformed into bird sanctuaries after the summer rains (Nov-March). Local attractions in Brandvlei are the salt pans after summer rains and Lekkerlê and Kans, two farms which exhibit splendid San rock engravings. The proposed !Xam Tentative World Heritage Site could have huge tourism potential for Brandvlei in the future. Tourism should be viewed as the main growth point for the region as it is the main driver behind boosting the money supply of marginalized towns. Tourism in the region can be catalyzed by the natural environment that provides for unique landscapes rich in wildflowers in the spring. Because the flower season is short, however, more sustainable tourism activities should be promoted that can ensure a continuous stream of travellers to the region.
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Hantam Local Municipality Local Economic Development Strategy 2011 Towns that are part of the commuting route between Cape Town and Upington should also adopt more proactive strategies to attract more passing tourist trade by focusing on consolidating tourist related shops and restaurants in a closely defined area. This might, in turn, inspire long distance travellers to stay overnight at local guesthouses, in particular around Calvinia and Nieuwoudtville, but even as far as Brandvlei where the town lags very far behind in terms of promoting touristrelated activities. Identified transport corridors include the: 1. Nieuwoudtville-Calvinia-Williston corridor consisting of the R63 tar road and railway link between Calvinia, Williston and Carnarvon. 2. Nieuwoudtville-Calvinia-Brandvlei-Kenhardt corridor consisting of the R27 tar road leading from Cape Town to Upington The “Rooibos Heritage Route” between Nieuwoudtville and Wuppertal along the R364 road, offers experiences ranging from guided hikes to exploring rock art and medicinal plants, courses on baking of traditional bread and harvesting your own wild Rooibos tea. This is a typical agri-tourism initiative that will play a major role in edu-tourism, providing information on the natural environment, culture and conservation of the region and the community. The R355 linking Calvinia to the south with Ceres and the Western Cape is also the link to the Tankwa National Park via the Hex River Mountain and the possible upgrade of this road could unlock the tourism potential of Hantam LM. Commuter tourist behaviour suggests that most commuters will only break their commute once in any one town, which points to the need to locate restaurants and shops within walking distance of the fuel stations. In terms of tourism development, it should be noted that tourism marketing of the region is extremely weak. Websites associated with the floral kingdom, rooibos routes, etc., make little reference to the actual driving directions to reach the region and ways to contextualize the drives in terms of time and distance and logical points to stop over. Destination marketing approaches should be taken for key towns on these routes and resources should be focused there to promote tourism facilities. The tourism sector in Hantam LM is not fully developed. Marketing of the area is poor and most of the attractions do not keep tourists in the towns for longer as 1 or 2 days. The following is a list of LED projects/opportunities identified in the Hantam IDP and SDF as well as additional identified opportunities within the Tourism Industry: Projects and Opportunities Identifies in the IDP Opportunities and SDP Holiday resort – caravan park, day visitors & A tourism strategy for the Hantam LM that is linked to tourism strategies of the other chalets (integrate dam) for Nieuwoudtville Namakwa DM areas will improve the linkages between attractions. Through linkages with tourist destinations in the Western Cape and © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Projects and Opportunities Identifies in the IDP and SDP
Opportunities Namibia there is potential to create hubs and joint initiatives in the area.
Development of the Nieuwoudtville Waterfall
Clustering tourism initiatives in the area is important. The tourism industry needs to become more unified and offer more to tourists in order to encourage long-stay visitors to the area. Compile a local events calendar to link tourism initiatives in the District and Province.
Establish a bakery in Middelpos Arts and crafts Recreation resort in Calvinia, including Museum in Brandvlei empowerment of new tourism operators Research the possibility of establishing a Planetarium in Hantam. Holiday resort in Nieuwoudtville, including It is difficult for labour to access job opportunities empowerment of new tourism operators with no transport and, in terms of skills, there is a need for greater education and training. Rooibos Tea Route (Agri-tourism). The Hantam LM will need to implement strategic plans to attract tourists through target marketing, the improvement and expansion of tourism services and facilities, and to facilitate collaborative agreements with Cape Tourism and Namibia Tourism. Upgrade of the Oorlogskloof Reserve (in process) Better support of SMMEs to start their own businesses and continual support to ensure the sustainability of these ventures is vital.
4.12. Other Opportunities The above opportunity scan only focussed on four of the nine economic sectors as well as the Tourism Industry. The fact that the other sectors were not included in the opportunity analysis does not mean that these sectors have no potential for development within the Hantam LM but rather that these five sectors have less potential for development.
4.13. Addressing LED Constraints Some of the weaknesses identified in the SWOT analysis are not controllable, such as climate. Others, however, can be managed and improved as part of a comprehensive strategy to address supply-side factors and attract investors. Furthermore, many of the threats identified are similarly not easily controllable. They can, however, be monitored and, for example, attempts can be made at halting degeneration (that is gradual decline and closing of certain economic activities). This section, © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 thus, deals with addressing internal constraints to LED, and with regenerating sectors suffering decline. In order to support and enhance the viability of LED projects in the Hantam Local Municipal area an “integrated development platform” or a generally enabling environment is needed. This will require addressing, where possible, major constraints to economic development, such as: The state of municipality in terms of service provision. This includes human and financial capacity to deliver basic services to the population. This cuts across the roles of the Namakwa District Municipality, the Hantam Local Municipality, and the other local municipalities. The status of institutions. The Hantam LM is extremely willing to undertake LED initiatives but none-the-less, there remains much room for improvement in terms of the human and financial capacity to undertake feasibility studies, draw up business plans and attract suiTable investors for LED projects. Available infrastructure. Infrastructure is a major constraint to LED in the Hantam Local Municipality. Efforts to improve road, rail, and transport are essential. This can continue to be achieved through the EPWP, thus ensuring that local benefits of any infrastructural construction work are maximised. Spatial orientation. The large geographic area covered by Hantam Local Municipality is an inherent challenge to LED in the area. The effect of this can, however, be limited to a certain extent through the use of modern technology (i.e. improved telecommunications infrastructure and skills are needed) and through improved transport infrastructure and services. Environmental constraints. There are a number of Protected Areas in the Hantam Local Municipality. These are, however, seen as valuable tourism and environmental assets. Land availability. Land reform is seen to be failing in the area, as claims take years to be processed and many land claim beneficiaries have failed at attempts at farming, for example. These are issues that require creative, collaborative solutions that ensure that land use patterns reflect the economic and social goals of the Hantam Local Municipality. Supporting institutions. This is an area which is a severe inhibiter of economic development in the Hantam Local Municipality, which lacks tertiary education and research and development institutions. Those who can afford to, leave the area for other provinces with better educational facilities, many of whom do not return. This has a negative impact on the quality of labour in the Hantam Local Municipality. If the Hantam Local Municipality is to realise its goal of diversifying the economy by incorporating more secondary and tertiary economic activities, tertiary education needs to be prioritised through bursary programmes. Water supply potential. Water supply in the area is limited and any developments need to take cognisance of this limitation and implement environmentally friendly and water-efficient building, manufacturing and farming technologies. Power supply. The Hantam LM faces the same energy constraints as the rest of South Africa, placing a limitation on any extremely energy intensive projects. Furthermore, the dispersed nature of the area is reflected by the energy distribution grid and new developments in previously underdeveloped areas will need to take cognisance of costs related to extending distribution systems. Degenerating industries. The mining sector is under constant threat from local factors (such as the Eskom crisis and Rand volatility) and international demand factors (with 2008/9 seeing a
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Hantam Local Municipality Local Economic Development Strategy 2011 decline in demand for commodities, for example). Furthermore, natural resources are finite and all mines reach a point where it is no longer viable to continue extracting the few deposits that remain. The Namakwa DM has a number of projects that aim to support overall LED within the District, including a Business Database which is up and running, an active LED Forum, and an active SEDA. There are plans in place to undertake road shows aimed at informing the public of available business development and business support services available to local SMMEs and entrepreneurs.
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Hantam Local Municipality Local Economic Development Strategy 2011
SECTION 5: INSTITUTIONAL FRAMEWORK 5.1. Introduction This section is an overview of the current status of institutional arrangements as well some guidance on moving towards an ideal structure for the Hantam Local Municipality. This section will present practical recommendations for attracting investment in and steering the successful implementation of prioritised projects (Section 6). LED is a cooperative developmental effort between government, the private sector and civil society. It is not a specific action or programme, but occurs when a spectrum of stakeholders harness their individual resources and ideas to strive for a better economic status within a locality. Thus, all the stakeholders have responsibilities and roles to play in the process. The roles and responsibilities of the various tiers of government, as well as civil society, in the Hantam LED Strategy are outlined in Annexure D.
5.2. Status of LED Structures 5.2.1. Namakwa District Every municipality has an organised structure in which all the different Departments are classified. Figure 15 below provides a graphic illustration of the Namakwa District Municipality’s organisational structure.
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Hantam Local Municipality Local Economic Development Strategy 2011 Figure 15 - Namakwa District Organogram Senior Tourism Officer (1)
Tourism
Municipal Manager
Economic Development
Tourism Officers (3)
Economic Development and Marketing
Marketing Officer (1)
Law Enforcement
Law Enforcement Offcers (2 Vacant)
Work for Water Social Development
Project Manager (1)
Community Services
Assistant Project Managers (1 Filled, 1 Vacant) Administrator (1)
Roads
Infrastructure Development
Projects Human Resources
Institutional Development
Administration
Planning
Finance
From Figure 15 it is evident that the Namakwa DM as an organisation is structured into five main Departments, namely Economic Development, Social Development, Infrastructure Development, Institutional Development and Planning. The Department of Economic Development can further be broken down into four main areas which include Tourism, Economic Development and Marketing, Law Enforcement and Working for Water.
5.2.2. Hantam Local Municipality The Hantam Local Municipality consists of the following departments: • Financial Officer • Infrastructure Development • IDP/LED • Social Development • Institutional Development © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Figure 16 provides a basic illustration Hantam Local Municipality’s organisational structure. Figure 16 – Hantam Municipal Organogram Municipal Manager
Financial Officer
Infrastructure Development
IDP/LED
Social Development
Institutional Development
The Hantam Local Municipality’s LED/IDP Department functions directly under the Municipal Manager and employed one individual, namely the IDP/LED Manager. In terms of funds, the Hantam LM has no funds allocated to LED projects and all projects are therefore reliant on funding. Due to a number of constraints it is difficult for Hantam to undertake activities beyond service provision. These constraints include the lack of funds, a shortage of skilled staff, and lack of experience with LED. Hantam lack the resources to establish a dedicated LED unit or department and should as an alternative consider the establishment of LED committee, which could oversee the economic development process. Current capacity should be optimised through capacity building within the Municipality, which would entail either Training Programmes or Capacity Building Programmes. Training programmes educate and update the knowledge of the LED committee, whereas Capacity Building Programmes are aimed at providing support and guidance for the LED committee.
5.3. Support Structures Support structures play an important role in the development of an institutional blue print of the Local Economic Development Strategy. These support structures will help facilitate the various programmes in LED implementation processes and initially clarify the different roles and responsibilities. This will ensure that there is an understanding of the institutional implication for the further development of the LED Strategy within the Local Municipality and assist with the process of spatially referencing economic development in the long run.
5.3.1. The Municipal LED Forum Hantam Local Municipality does currently have an LED Forum, although currently non-functional. The Municipal LED Forum should ideally consist of Municipal Departments and Directorates, Organised Businesses in the Municipality, Civil Society, representatives from the District Municipality and the Local Municipal LED Manager. © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 The following will be the main objectives of the LED Forum in Hantam: 1. To maintain an effective partnership with Provincial government sector Departments as well as the Namakwa District Municipality and neighbouring Local Municipalities. 2. To ensure private and public inclusion within public development programmes, plans, initiatives and strategies. 3. To define LED in the context of Hantam’s local context towards the end of establishing ownership of the Forum and its activities among all role players and stakeholders. 4. To ensure equal support by all members for development programmes being planned for and implemented by the Public and Private sector. 5. To establish functional and professional relationships between all the members of the Forum. 6. To identify the challenges of managing, implementing and sustaining LED locally and thereby prioritising the Forum’s responses to these challenges. 7. To promote LED within Hantam towards the benefit of all its citizens. 8. To manage the Forum in such a way that it would serve as a conduit for information sharing relating to LED in the area. Members of LED Forum will include (but not limited to) the following entities: Hantam LED Committee Representatives from various government departments (ideally District and/or Provincial Departments are important) Business Chambers Sector Committees Private Sector Community Groups The LED Forum needs to meet on a quarterly basis, or when required on a more regular basis. The following are the responsibilities of the Hantam LED Committee: Coordinating the meetings Ensuring communication between the various stakeholders The LED Forum meetings need to be held at various venues (to ensure that stakeholder in various parts of Municipality do not travel all the time and use this as an excuse not to attend the meetings). These meetings will also be coordinated according to a set agenda, which will guide the LED Forum meeting. The issues raised and decisions made at the various meetings need to be recorded in order to keep a record of all decisions made regarding economic development in the Municipality.
5.3.2. Namakwa District Municipality The Namakwa District LED Unit is responsible for coordinating LED Planning across the district and providing assistance to the Local Municipalities within its area of jurisdiction. This includes: © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 1. Providing assistance in co-ordinating and integrating the Hantam LED with district planning. 2. Providing Hantam with assistance in LED planning and implementation. This is especially so with regards to district LED Anchor Projects. 3. Provide Hantam with the necessary assistance to coordinate regional role players and other Local Municipalities. 4. To lobby Provincial and National Government for additional LED support on behalf of Hantam. 5. To avail technical and financial resources to Hantam for LED implementation. 6. To market the investment opportunities of the district domestically and internationally. 7. To ensure that proper communication protocols exist between the District Municipality, Hantam LM and the Hantam LED Forum.
5.3.3. Other Dedicated Vehicles The projects identified in the opportunity analysis are a mixture of public and private sector projects. However some projects would require a dedicated vehicle other than the possibilities mentioned in the above subsections. Other vehicles would include Social and Labour Plans; Public-Private Partnerships PPP’s and Trusts. These will be discussed in more detail when once the projects have been identified.
5.4. Doing Business in Hantam LM Investors will look at aspects such as: 1. The quality and extent of hard infrastructure such as road and rail networks, airports and harbours. These factors will impact on the direct input/start-up costs, as well as the operational costs of business, and therefore impact on the overall potential for financial return on investment. 2. The sophistication of local telecommunications, banking and finance services similarly impact on the input and operational costs of doing business. This is also an indicator of the area’s ability to keep “up-to-date” with innovative technological and other developments, which has implications for the long-term desirability of an investment in the NDM. 3. The extent to which spatial and land planning policies and documents are flexible to the needs of businesses and the relative ease of following land planning processes, such as rezoning applications. The existence of sufficient and appropriate types of land and/or buildings and the ease (time and cost) of administrative processes relating to land planning are key factors influencing the attractiveness of an investment. Appropriate incentives and/or support for suitable land rezoning and development must be clear to potential investors, while at the same time the NDM’s ongoing dedication to ensure the sustainable use of its key natural resources and heritage should not be undermined. 4. The sophistication of the public sector. Overall, the general status of public sector services, including healthcare, education, safety and security impacts on the “quality of life” aspect, as well as the quality of labour, In addition, investors desire of municipalities professional © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 services delivered by suitably qualified, efficient and informed officials. Access to information such as medium and long term planning documents (spatial, infrastructural, economic and others) is crucial in showcasing what the area will offer investors in the longer-term. 5. The quantity and quality of available labour and training programmes, in relation to the specific human resource requirements of investors. This relates to the health, education and skills levels of the local workforce. Connected to this is the community’ openness to entrepreneurship – the existence of and potential for local SMMEs to be integrated as part of the supply chain of larger investment projects during development and/or operation. 6. Quality of life factors, such as the supply of housing and personal lifestyle facilities (such as educational, cultural and recreational services) also have an impact on the attraction of particular investment. The main inhibiter to doing business in Hantam relates to the geographic nature of the Municipality, which limits access to services such as telecommunications, transport (especially of cargo, but also of labour), finance and banking services, educational and health facilities and so forth. Small communities fail to provide economies of scale for such services. The Figure below shows an oversimplified view of the scenario. Little/no investor interest (no markets, no skills, no suppliers)
Small dispersed, isolated communities
No access to services and products to grow economy internally
Poor and subsistencebased households No economies of scale to retailers and service providers
Much of this relates to “improving quality of life” within the Municipality. With a growing and diversifying economy, each of the above factors will gradually begin to improve: Interventions aimed at providing households with transport (public transport programmes) bring communities closer together.
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Hantam Local Municipality Local Economic Development Strategy 2011
Economies of scale can now be reached with some basic services and goods, as communities are more connected. As a result, clinics, schools, colleges, shopping malls, banks and telecommunication service providers’ operations become more feasible. Households now have increased access to educational, health, personal and financial services. SMMEs can tap into new/emerging markets, supported by a growth in local financial services. Investors have access to a more mobile and better educated/trained labour force. Demand for further improvements to services and goods in the area increases as investors enter the area. So the cycle continues with incremental increases in demand and supply for various public and private sector goods and services.
As can be seen, initial interventions are needed in order to catalyse changes in the economy of the Municipality. This requires deliberate efforts to market the area as an investment destination. These efforts are on-going – as economic development does not reach an “end point”, but is itself ongoing.
5.5. Conclusion This section provided an overview of the current status of institutional arrangements as well as providing some guidance on moving towards an ideal structure for the Hantam Local Municipality.
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Hantam Local Municipality Local Economic Development Strategy 2011
SECTION 6: VISION, OBJECTIVES & DRIVERS 6.1. Introduction The previous sections have given the policy context that mandates the Hantam LM as a developmental local government and the baseline socio-economic context against which needs and opportunities have be identified. These need to be tailored to the specific context of the Hantam LM as an institution. This is done by looking at the specific vision, objectives and goals of the Hantam LM, as well as the opportunities identified, which can then be compiled into “drivers” or key areas of focus for LED. Opportunities identified in the previous section are then translated into projects and prioritised.
6.2. Vision, Objectives and Goals It is important that the vision used in the Hantam LM LED Strategy is aligned with the vision for the Hantam LM IDP Strategy. One of the main roles of the Municipality is to create an enabling environment for economic development to take place. Therefore the aim of the vision, objectives and goals is to achieve this role as creating an enabling environment. Creating an enabling environment is thus not highlighted as one of the objectives but rather that the vision and objectives need to achieve the role of the Municipality in creating an enabling environment.
Vision: To create a safe, healthy, friendly and economically sustainable environment for all residents of the Hantam Municipality.
Objectives: Poverty alleviation through effective basic service delivery and job creation Improve the living standards of the LMs residents through infrastructure maintenance and development Facilitate skills development and capacity building within the local economy Promote business and investment attraction and retention Assist with economic interventions in sector development (agricultural, mining, tourism and renewable energy) Figure below outlines the vision, objectives and goals as identified for the Hantam Local Municipality.
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Hantam Local Municipality Local Economic Development Strategy 2011 Vision To create a safe, healthy, friendly and economically sustainable environment for all residents of the Hantam Municipality.
Objective 1
Objective 2
Objective 3
Objective 4
Objective 5
Poverty alleviation through effective basic service delivery and job creation
Improve the living standards of the LMs residents through infrastructure maintenance and development
Facilitate skills development and capacity building within the local economy
Promote business and investment attraction and retention
Assist with economic interventions in sector development (agricultural, mining, tourism and renewable energy)
Goals Improve access to health care & education Overcoming backlogs in service delivery Need to consider renewable energy options
Implement innovative water saving technologies Implement opportunities for bulk infrastructure development
Ensure capacity within the Municipality
Play an active role in mitigating obstacles hindering Identify skills gaps economic within key development economic sectors Providing training Facilitate training and support for programmes leadership and available management development Implementation of mentorship programmes for SMME’s Source funding for emerging businesses Strengthen marketing platform for SMME’s to market good & services
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Conduct feasibility studies to determine the viability of new agricultural and small scale mining ventures. Support for emerging farmers Facilitation and development of shopping centres. Identify available land & ensure that it is serviced & zoned correctly; & allow equal access to this land for local communities. Determine opportunities for renewable energy development
Hantam Local Municipality Local Economic Development Strategy 2011 6.3. Key Drivers Key “drivers” aimed at regenerating Hantam’s economy can be formulated from the economic opportunities and public sector interventions identified throughout the report. From a strategic development facilitation point of view, it is necessary to ensure that the appropriate linkages and interactions between programmes and projects be established. Such an integrated approach is needed to ensure the optimal rate of implementation and economic development in the Municipality. A driver can be defined as: “Planned actions aimed at creating an impetus and a critical mass in the local economic environment in order to generate momentum in the economy” Drivers identified for the Hantam Local Municipality are discussed in Table 23 below: Table 23 - Drivers identified for the Hantam Local Municipality Driver Description Institutional This is dealt with throughout this Development section, and informed by the capacity that remainder of the Drivers necessitate.
SMME & Business Support
This includes information and support services as well as training, mentorship and skills development
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Tasks and Projects Establish an LED Committee Hantam LED Forum in currently non-functional and should be reviewed and made functional. Identify appropriate LED Training and Capacity Building programmes for various staff members Providing training and support for leadership and management development Source funding for emerging businesses Identify skills gaps within key economic sectors Identify available land & ensure that it is serviced & zoned correctly; & allow equal access to this land for local communities. Strengthen marketing platform for SMME’s to market good & services Implementation of mentorship programmes for
Hantam Local Municipality Local Economic Development Strategy 2011 Driver
Agriculture and AgroProcessing Development
Mining Development Tourism Development
Renewable Energy Development
Quality of Life
Description
Tasks and Projects SMME’s Ensure training programmes provided are relevant and accredited Facilitate training programmes available Generate a SMME Database This includes all agriculture and agro- Determine the viability of new processing activities. agricultural ventures. Release land to local farmers Source funding for farmers Community gardens Water capacity needs to be extended. This includes the small scale Determine the viability small scale mining/excavating projects (private). mining ventures. Including the specific projects/SMME Formulate a well-developed business opportunities and the Tourism Strategy for the enabling public sector interventions Hantam LM such as the various tourism Investigate possible linkages developing and marketing projects. and joint initiatives with other Namakwa Local Municipalities, the Western Cape and Namibia Clustering tourism initiatives Establish Tourism Information Centres in all Towns Training of tour guides. Marketing and promotion of the Hantam Meat Festival Development and promotion of the Rooibos Tea Heritage Route (Agri-tourism) Development of Oorlogskloof Nature Reserve in Nieuwoudtville The portfolio of renewable energy Determine opportunities for plants is at reference here, along with renewable energy development the associated enabling public sector interventions. This is seen as an all-encompassing Overcome backlogs in service
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Hantam Local Municipality Local Economic Development Strategy 2011 Driver Improvement
Description driver with specific programmes in the Expanded Public Works Programme aimed at improved infrastructure, overcoming backlogs in service delivery, providing education, health and safety services and so on. It should deal with the attractiveness of the area to investors in terms of quality of life and quality of labour and resources on the one hand, and the ability of locals to take advantage of economic opportunities on the other.
Tasks and Projects delivery Implement opportunities for bulk infrastructure development Improve access to health care & education
6.4. Conclusion The above has identified a vision, objectives, goals and drivers and for the Hantam Local Municipality. Section 6 provides for the necessary institutional structures and relationships to do so.
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Hantam Local Municipality Local Economic Development Strategy 2011
SECTION 7: ACTION PLAN 7.1. Introduction The above sections (Section 2 – 6) have provided an overview of the current situation within the Hantam Local Municipality. The last section (Section 6) has provided some insight on ideal arrangements for institutional structures in order to improve the levels of project implementation. This Section aims to provide detailed steps for the implementation of the LED Strategy as well as outlining some implementation guidelines for the identified Drivers. This Section is then concluded by providing a potential monitoring and evaluation strategy.
7.2. Implementation Plan Table 24 below provides the Implementation Plan for the Hantam LED Strategy. Table 24 – Implementation Plan Deliverable
Actions
Responsibility
Support
Time Frames
Strategic Integration Obtain support for contents Communicate the document to relevant of this document stakeholders, including the Municipal Manager and Councillors
LED Manager
Driver Implementation
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Municipal
December 2011
Hantam Local Municipality Local Economic Development Strategy 2011 Deliverable
Actions
Support
Responsibility
Time Frames
Institutional Development Establish an LED Committee Establish an LED Forum Identify appropriate LED Training and Capacity Building programmes for various staff members
Establish an LED Committee Hantam LED Forum in currently non-functional and should be reviewed and made functional. Local Municipal elections were held on the 18th of May and a new Counsel was appointed. Identify potential LED Training Programmes for new Council Members. Provide new elected Council with LED Training
LED Manager LED Manager LED Committee LED Manager and LED Committee would need to identify and market the training programmes to the new Councillors
Municipal Municipal
December 2011 December 2011
Municipal
Ongoing
December 2011 Ongoing
SMME & Business Support Skills development and training
1. Conduct a skills audit 2. Identify skills gaps within key economic sectors (skills audit) 1. Ensure training programmes provided are relevant and accredited 2. Facilitate training programmes available
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Hantam LM
Small Enterprise Development Agency (Seda) National Empowerment Corporation (NEC)
Hantam Local Municipality Local Economic Development Strategy 2011 Deliverable
Form Business support unit
Actions
Support
Responsibility
3. Provide training and support for leadership and management development 4. Implement mentorship programmes for SMME’s 5. Establish a Skills Training Centre – Investigate the possibility of using the old Voortrekker Hospital building in Calvinia 1. Link local SMMEs as service providers by generating a SMME Database 2. Source funding for emerging businesses 3. Identify available land & ensure that it is serviced & zoned correctly; & allow equal access to this land for local communities.
Hantam LM
Time Frames
NAMAC Khula
December 2011 Ongoing
Agriculture and Agro-Processing Development Determine the viability of new agricultural ventures. This includes the possibility of cultivating new crops using technology techniques, the cultivation of tropical crops along river banks as well as agroprocessing opportunities.
1. Conduct a feasibility study to determine the viability of new agricultural ventures. 2. Release land to local communities. 3. Provide information on funding sources for the local farmers. 4. Ensure necessary infrastructure is available to potential investors e. g tarred roads and storm water, sanitation and water. 5. Market to potential investors
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Hantam LM
January 2012 National Development Ongoing Agency (NDA) Northern Cape Department of Agriculture DWA Department of Environment and Nature
Hantam Local Municipality Local Economic Development Strategy 2011 Deliverable
Release land to local farmers
Funding for farmers
Extend water capacity
Community gardens
Actions
Support
Responsibility
1. Identify land that can be released (this could include municipal land, buying private land). 2. Release land to local farmers 3. 3Link with training and mentorship programmes to ensure that the sustainability 1. Source funding for local farmers. 2. Make this information available to the public. 3. Research the possibility of establishing a primary agricultural cooperative between emerging farmers. Assist emerging farmers in establishment of cooperative. 1. Increase efforts to remove alien vegetation along rivers banks (specifically Prosopis). 2. Consider other options for water saving techniques, water capturing & harvesting. A Water Study for the area should be conducted. 1. Assist community in obtaining plots 2. Give guidance on what to farm 3. Help to find markets for the excess produce that is not used in the community 4. Promote the usage of rain water tanks (link with water capacity extension action)
Hantam LM
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Conservation NCEDA Ongoing SPP Comprehensive Rural Development Programme
Hantam LM
CASP LRAD MAFISA
Ongoing
Hantam LM
Working for Water DWA NCEDA
Jan 2012 - Ongoing
Hantam LM
Household Food December 2011 Production, Food Ongoing Security & Starter Packs MAFISA NDA NC Department of Agriculture DWA
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Time Frames
Hantam Local Municipality Local Economic Development Strategy 2011 Deliverable
Actions
Support
Responsibility
Department Environment Nature Conservation NCEDA
Time Frames of and
Mining Development Develop small scale mining ventures
1. Conduct feasibility studies to determine the viability of small scale mining ventures. 2. Assist small scale miners in the application of mining authorisation from the Department of Minerals and Energy (DME) – Submission of an Environmental Management Plan (EMP) 3. Assist small scale miners in the application of a water use licence from DWA
Hantam LM
Department of Ongoing Minerals and Energy Department of Water Affairs and Forestry (DWAF) GeoScience Mintek’s Small Scale Mining (SSM) Division SEDA NCEDA
Tourism Development Formulate a welldeveloped Tourism Strategy for the Hantam LM
1. Formulate a well-developed Tourism Strategy that creates information for tourists on attractions, activities and accommodation options.
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Hantam LM
The Northern Cape Department of Economic Affairs and Tourism
2012
Hantam Local Municipality Local Economic Development Strategy 2011 Deliverable
Actions
Support
Responsibility
2. This strategy should also identify opportunities that can be marketed to investors or what projects locals can take ownership of.
Link tourism initiatives with surrounding areas.
Compile a Events Calendar and investigate possible linkages and joint initiatives with other Namakwa Local Municipalities, the Western Cape and Namibia
Establish Tourism Information Centres in all Towns
1. Source a building for a tourism information centres. 2. Project should be run by a community member that establishes & keeps a close relationship with stakeholders, tourism businesses/establishments, & the municipality. Source funding and assist marketing.
Promotion of the Hantam Meat Festival
Western Cape Province Northern Cape Province Namakwa DM Hantam LM Hantam LM
Hantam LM
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The Tourism Learnership Project (TLP) Tourism Enterprise Partnership (TEP) Tourism Business Council of South Africa (TBCSA) TradeInvestSA NCEDA The Northern Cape Department of Economic Affairs
The Northern Cape Department of Economic Affairs and Tourism Edge Growth NCEDA The Northern Cape Department of Economic Affairs and Tourism NCEDA
Time Frames
Jan 2012 - Ongoing
2012
Ongoing
Hantam Local Municipality Local Economic Development Strategy 2011 Deliverable
Actions
Support
Responsibility
Development and promotion of the Rooibos Tea Heritage Route (Agritourism)
1. Conduct a feasibility study. 2. If feasible, assist in marketing
Develop and upgrade the Nieuwoudtville Waterfalls
1. Conduct a feasibility study. 2. If feasible, assist in marketing
Hantam LM
Hantam LM
NDA TradeInvestSA The Northern Cape Department of Economic Affairs and Tourism NCEDA NDA TradeInvestSA The Northern Cape Department of Economic Affairs and Tourism NCEDA NDA TradeInvestSA
Time Frames
June 2012 - on going
June 2012 - ongoing
Renewable Energy Development Determine opportunities for renewable energy development
1. Partner with Eskom to promote rebates & incentives for renewable energy options & the roll-out of solar water geysers. 2. Conduct a pre-feasibility study for water-saving options and solar/wind facility development 3. Ensure necessary infrastructure is available to potential investors e. g tarred roads and storm
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Hantam LM
The Energy Development Corporation (EDC) NCEDA DME TradeInvestSA
2012 - Future
Hantam Local Municipality Local Economic Development Strategy 2011 Deliverable
Actions
Support
Responsibility
Time Frames
water, sanitation and water. 4. Zoning of land (review by-laws and amend where necessary) 5. Market opportunities to investors. Quality of Life Improvement Overcome backlogs in service delivery Implement opportunities for bulk infrastructure development
Address backlogs in service delivery Plannning, measuring and servicing of erven. Electrification of Middelpos households 1. Identify infrastructure gaps within key economic sectors 2. Build, upgrade & maintain infrastructure addressing the needs of the industry
Hantam LM
Municipal EPWP
2012 - Ongoing
Hantam LM
Municipal EPWP
Ongoing
Monitoring and Evaluation Review the success of the newly capacitated structures after a period of one year
Review success of project
1. Review the performance of the LED Committee, LED Forum and Project leaders 2. Review staff capacity 3. Determine strengths and weaknesses in the new approach and identify mechanisms to enhance performance 1. Review status of projects
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Municipal Manager
Municipal
Hantam LM
Municipal
Ongoing
Hantam Local Municipality Local Economic Development Strategy 2011 Deliverable implementation Review & update LED Strategy on a regular basis.
Actions
Responsibility
2. Determine if projects are on track or not (if not indicate why) The LED Strategy is an evolving document that changes with the economy and the environment. It will need to be updated regularly to ensure optimal use of resources, an enhanced enabling environment, and to take advantage of new opportunities.
Hantam LM
Support
Municipal
Time Frames
On-going
7.3. Monitoring and Evaluation Monitoring and evaluation (M&E) should be considered during each step of both the LED strategy and project implementation process and not as a specific “add-on” conducted only at the end of the process. Monitoring is a continuous process of collecting information using key performance measures (or indicators) to gauge the process or project. Monitoring identifies successes or failures as early as possible. Evaluation is the process that “uses the information from monitoring to analyse the process, programmes and projects to determine if there are opportunities for changes to the strategy, programmes and projects.” Evaluation, like monitoring, should promote learning. In the implementation stage of a LED strategy, evaluation is used to determine if the actions are meeting the strategic objectives, efficiently, effectively and/or at all.” M&E should be used to: Enhance learning and capacity building throughout all steps of the LED; To empower the participants to do a better job; and © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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To help promote implementation partnerships as partners work through the process together. Inform decision making on project implementation. Analyse the current situation Identify problems and find solutions Discover trends and patterns The monitoring program should regularly collect data on the performance measures that are indicators for the original objectives.
Monitoring ensures that limited resources for economic development can be put to ‘“best use’” and that negative or unintended impacts can be identified and minimised. One way to formalise M&E is identifying performance indicators. Performance Indicators can be identified for each Driver, as well as on a project-by-project basis. Project objectives should be formulated in such as away so as to quantify measurable outputs and targets (deliverables). This is made easier by identifying a specific and appropriate purpose, location and role-players for the project; anticipated (and realistic) impacts (jobs created, GGP growth, return on investment ratios and so forth) and by assigning time-frames for the various stages of implementation (each with its own tangible set of outcomes).
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REFERENCES
ACDP Calls for Wind, Solar Investment. 27 May 2011. Online: http://www.news24.com/SciTech/News/ACDP-calls-for-wind-solar-investment-20110527 Ashley, C. & Haysom, G. 2006. Strategies and Challenges in Integrating Pro-Poor Approaches into Tourism Business. Boom Times Coming for Rough Diamonds. 26 May 2011. Online: http://www.miningmx.com/news/diamonds/boom-times-coming-for-rough-diamonds.htm. CDS. 2007. Arid Areas Report. Chamber Dismisses Beneficiation Plan. 23 May 2011. Online: http://www.miningmx.com/news/markets/Chamber-dismisses-beneficiation-plan.htm. Chamber of Mines. 2011. Mining Community Development News. CWCI. 2006. Findings on Urban and Rural Pro-Poor LED in South Africa. De Beers. Sustainability Initiatives in Namaqualand. De Beers. 2009. Report to Society. Department of Minerals and Energy. 2011. Draft Beneficiation Startegy. Department of Public Works. 2010. Expanded Public Works Programme. Department of Science & Technology. Technology for Sustainable Livelihoods. Feike Natural Resource Management Advisors. 2008. Potential for a South African Aquaculture Gopaul, M. 2006. The Significance of Rural Areas in South Africa for Tourism Development Through Community Participation. Group Five Mulls R5bn Solar Project. 29 March 2011. Online: http://www.fin24.com/Companies/Industrial/Group-Five-mulls-R5bn-solar-project-20110329. Hantam Local Municipality. 2010. Integrated Development Plan (IDP) Hantam Local Municipality. 2010. Rural Spatial Development Framework/Land Development Plan Hinderink, J. & Titus, M. 2001. Small Towns and Regional Development: Major Findings and Policy Implications from Comparative Research. Hoffman, M., Allsopp, N. & Rohde, R. 2007. Sustainable Land Use in Namaqualand, South Africa: Key Issues in an Interdisciplinary Debate. Holm, D. & Agert, C. 2002. Job Creation Potential of Renewable Energies in South Africa. ESI Africa, Issue 3. Human Sciences Research Council. 2004. Rural Development: The Provision of Basic Infrastructure Services. Huyssteen, E., Oranje, M. & Meiklejohn, C. 2010. An Appreciative and (More) Nuanced Reading of Rural Settlements in South Africa: A Key to Unlocking the Nation’s Rural Development Challenge? Industry on the Northern Cape’s Namaqualand Coast. International Conference on Energy Sustainability. 2010. Learnable Lessons on Sustainability from the Provision of Electricity in South Africa. IUCN. 2003. Extractive Industries in Arid and Semi-Arid Zones. Mining Magazine. 2010. An In-depth Discussion of Mining Issues in South Africa.
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Namakwa District Municipality. Namakwa District Municipality Integrated Development Plan (IDP 2006 – 2011) Namakwa District Municipality. 2009. Local Economic Development Strategy (LED) Namakwa District Municipality. 2008. Biodiversity Sector Plan Ndhlovu, T. 2011. Impact of Prosopis (Mesquite) Invasion and Clearing on Ecosystem Structure, Function and Agricultural Productivity in Semi-Arid Nama Karoo Rangeland, South Africa. Northern Cape Province. 2005. Provincial Growth and Development Strategy (NCPGDS) Northern Cape Province. Provincial Spatial Development Strategy (NCSPS) Northern Cape Province. 2009. Northern Cape Local Economic Development Strategy (NC LED) Northern Cape Province. 2010. The Northern Cape Municipal LED Framework Northern Cape Province. Northern Cape Agriculture & Agro-Processing Sector Development Strategy (AAPSDS) Northern Cape Province. Northern Cape Mining and Mineral Sector Strategy Northern Cape Province. Northern Cape Manufacturing Strategy Northern Cape Province. 2005. White Paper on the Development and Promotion of Tourism in the Northern Cape North South Tourism Route. 2011. Online: http://www.south-north.co.za/. Northern Cape Business. 2011. Online: www.northerncapebusiness.co.za. Proposed Construction of a Concentrating Solar Power (CSP) Plant and Related Infrastructure: Northern Cape Province. 2006. EIA Scoping Phase. Odendaal, F. Incremental Value of Poverty Alleviation Funding for Sustainable Development – A Case Study From Namaqualand, South Africa. Eco-Africa. Quantec Data. 2011. Online: www.quantec.co.za. Rennie, J. & Singh, N. 1996. Participatory Research for Sustainable Livelihoods. Republic of South Africa. 1995. National Strategy for the Development and Promotion of Small Businesses in South Africa Republic of South Africa. 1996. The Constitution of the Republic of South Africa Republic of South Africa. 1998. The Municipal Systems and Municipal Structures Act Republic of South Africa. 1998. The White Paper on Local Government Republic of South Africa. 2000. Integrated Sustainable Rural Development Strategy Republic of South Africa. 2003. Local Government: Municipal Finance Management Act Republic of South Africa. 2004. The Broad-Based Black Economic Empowerment Act Republic of South Africa. 2006. Accelerated and Shared Growth Initiative for South Africa (AsgiSA 2006) Republic of South Africa. 2006. Joint Initiative on Priority Skills Acquisition (JIPSA 2006) Republic of South Africa. 2006. National Spatial Development Perspective (NSDP 2006) Republic of South Africa. 2006. Regional Industrial Development Strategy Republic of South Africa. 2006. The National Local Economic Development Framework (2006 – 2011) Republic of South Africa. 2010. New Economic Growth Path Plan
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South Africa Finally Sets Renewables Bidding Process in Motion. 31 July 2011. Online: http://www.engineeringnews.co.za/article/sa-finally-sets-renewables-bidding-process-in-motion2011-07-31. South Africa Sticks to Ambitious CO2 Target. 2 August 2011. Online: http://www.fin24.com/Economy/SA-sticks-to-ambitious-CO-target-20110802. Statistics South Africa. Census Data 2001 Statistics South Africa. Community Survey 2007 The Development Bank of South Africa. 2007. A Revitalisation Strategy for Dying Mining Towns. Thiyagarajah, R. 2007. Sustainable Wastewater Reuse Through Private Sector Participation. Toerien, D. & Seaman, M. 2011. Ecology, Water and Enterprise Development in Selected Rural South African Towns. TPE Energy Development Pty Ltd. 2007. Namakwa Wind Energy Program. UNDP. 2005. Sustainable Management of Arid and Semi-arid Ecosystems to Combat Desertification. Working For Water. 2010. Feasibility and Benefits of Veld Rehabilitation Following Control of Invasive Prosopis in the Calvinia Area.
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ANNEXURE A: PUBLIC PARTICIPATION This section indicates the public participation that took place during the compiling of this report. The Tables below indicate the meetings and the attendees in each town. The introduction meeting was held in Springbok on 9 December 2010 where the following were discussed: Purpose of the Study Goal and Objectives of the Study Methodology Role Player Identification Way Forward The second meeting was held in Springbok on 27 January 2011, where all the Local Municipalities were present. The following were discussed: Progress to date Work Plan Timeframe Set up of consensus workshops in the each of the Local Municipalities Calvinia, 14 February 2011 Name A Bergh IG Valentein M Dyers Riaan Van Wyk Noel Viljoen Gert Steenkamp Loeriesfontein, 15 February 2011 Name F Brand CL van Jaarsveld A Tieties A Januarie G Vyver JM Koose H Van Zyl
Organisation Hantam Municipality Hantam Municipality Hantam Municipality Hantam Municipality Hantam Municipality Department of Agriculture
Organisation Wykskomitee (Wyk 5) Wykskomitee CDW CPA Hantam Municipality Hantam Municipality Solek Ing
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Hantam Local Municipality Local Economic Development Strategy 2011 Nieuwoudtville, 15 February 2011 Name C Rust L Vyver JA Louw MM Beukes M Baard C Koopman N Viljoen Gerrie Jansen Johannes Galandt EK Nc Leam JA Markus Johannes Mathys AJ Burger Noel Viljoen Nico Jantjies Calvinia, 16 February 2011 Name I Van Niekerk C Rhode MW Adam J Crous DC Coetzee Brandvlei, 17 February 2011 Name A Pieterse FJ Sterkse JB Miella N Viljoen
Organisation SANBI Hantam Municipality Hantam Municipality BEC E Beuaezer Boere Hantam Municipality Hantam Municipality Wykskomitee Slagpale Brandvlei Brandvlei Interm Wykskomitee Opkomende Boere Opkomende Boere Brandvlei Boerevereniging Hantam Municipality Wykskomitee
Organisation Calvinia Slagters Forumlid Voorsitter LED Namakwa District Municipality (Water) LED Forum Voorsitter
Organisation VGK Brand Wyksraadslid Brandvlei Kompei Boerdery BK Hantam Municipality
During these consensus workshops the following points were discussed: The work plan Existing information base Policy and relevant documentation Current LED projects and status © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Institutional capacity Funding Potential projects Problems and constraints in the area Economic sectors and trend (agriculture, mining, manufacturing etc.) Tourism Infrastructure Social-economic issues
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ANNEXURE B: POLICY REVIEW Policy
Description
Implications
National – South Africa
The Constitution (RSA 1996)
The White Paper on Local Government (1998)
The Constitution (Act 108 of 1996) is the cornerstone for all legislation and policymaking in South Africa. In particular, Chapter 7 defines the role of local government in its community. Five objectives of local government are described in section 152: 1. To provide democratic and accounTable government for local communities 2. To ensure the provision of services to communities in a sustainable manner 3. To promote social and economic development 4. To promote safe and healthy environment 5. To encourage the involvement of communities and community organizations in the matter of local government. Furthermore, section 153 stipulates the following developmental duties of all municipalities: 1. A municipality must structure and mange its administration and budgeting and planning processes to give priority to the basic needs of the community, and to promote social and economic development. 2. A municipality must participate in national and provincial development programmes. According to the White Paper on Local Government, local authorities have the following responsibilities in terms of their obligation to economic development: Provide marketing and investment support in order to attract potential support to their locality. Small business support services should be provided to assist small entrepreneurs. To support the Local Business Support Centres Programme launched by the Department of Trade and Industry. The purpose of these centres is to assist
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The Namakwa District’s Local Municipality’s are legally bound to promote social and economic development within their communities. This implies that public investment should largely focus on developing the municipal areas in terms of local economic development and providing for the basic needs of the community. Thus it is important that the Local Municipalities provide services, infrastructure provision, community services, educational components and business support to areas that lack these services or in areas where improvements of these services are required.
The White Paper has a direct impact on the development, policy formulation and human resource development projects of the local municipality. It emphasises the need and importance of local municipal support to business through training and development of support centres. It is important that the local municipality provide the local businesses with the required support structures
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
National Spatial Development Perspective (NSDP 2006)
Description
Implications
local entrepreneurs with issues relating to skills, premises, information, networking, marketing and credit. To provide targeted assistance (such as market research and technology provision) to a particular sector in the local economy that has the potential to expand. By supplementing and tailoring to local needs, the services provided by the Department of Labour in the supply of training and placement services. This is necessary towards ensuring that people acquire skills and find jobs. The National Spatial Development Perspective (NSDP) was produced by the Policy Co-ordination and Advisory Services (PCAS) in the Presidency as was endorsed by Cabinet in March 2003. The four principals in this document include the following: Rapid economic growth that is sustained and inclusive is a pre-requisite for the achievement of other policy objectives, amongst which poverty alleviation is key Government has a constitutional obligation to provide basic services to all citizens (e.g. water, energy, health and educational facilities) wherever they reside Beyond constitutional obligation identified in Principle 2 above, Government spending on fixed investment, should be focused on localities of economic growth and/or economic potential in order to: o Gear up private sector investment o Stimulate sustainable economic activities o Create long-term employment opportunities Efforts to address past and current social inequalities should focus on people not places: o In localities where there are both high levels of poverty and development potential, this should include fixed capital investment beyond basic services to exploit that potential o In localities with low development potential, Government spending should focus on providing social transfers, human resource
but also providing the local communities with the required skills in order to obtain job opportunities through the implementation of training programmes.
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The NSDP states that economic growth should be a pre-requisite for the achievement of other policy objectives, key among which would be poverty alleviation (providing basic services and job opportunities). It further states that efforts to address past and current social inequalities should focus on people not places, where local municipalities should focus on fixed capital investment, human resource development, and social transfers.
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
The Municipal Systems Act (2000) and Municipal
Description
Implications
development and labour market intelligence which would enable people to make choices: become more mobile and migrate to localities that are more likely to provide sustainable employment or other economic opportunities In order to overcome the spatial distortions of Apartheid, future settlement and economic development opportunities should be channelled into activity corridors and nodes that are adjacent to or link the main growth centres o Infrastructure investment should primarily support localities that will become major growth nodes in South Africa and the SADC region to create regional gateways to the global economy The NSDP has identified areas of potential, however, it recognises that these are general guidelines from a National perspective and more detailed analysis needs to be undertaken at a Provincial and Local Level. The Provincial Growth and Development Strategies (PGDSs) and the municipal Integrated Development Plans (IDP) therefore takes on a greater importance in terms of achieving economic and spatial goals. The NSDP identified six categories of potential and these include the following: Innovation and experimentation The production of high-value differentiated goods Labour intensive mass-production Public service and administration Tourism Commercial services and retail The NSDP does however recognise that these potentials are spread across a range of urban and rural localities. The Municipal Structures Act of 1998 defines types and categories of municipalities, division of functions and powers within municipalities, and the regulation of internal systems. Great emphasis is placed on the need for co-operation between different levels of government to better achieve goals and targets. Alternatively, the Municipal
According to the Municipal Structures Act Local Municipalities are responsible for the delivery of municipal services. If a given local municipality does not have the requisite capacity to provide municipal
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Hantam Local Municipality Local Economic Development Strategy 2011 Policy Structures Act (1998)
Local Government: Municipal Finance Management Act (MFMA 2003)
Description
Implications
Systems Act of 2000 provides municipalities with guidelines which ‘enable municipalities to move progressively towards the social and economic upliftment of local communities’ so that basic services may be met. Duties of the municipal council (within financial and administrative capacity) are given in section 4(2): Exercise the municipality’s executive and legislative authority and use the resources of the municipality in the best interests of the local community Provide, without favour or prejudice, democratic and accounTable government Encourage the involvement of the local community Strive to ensure that municipal services are provided to the local community in a financially and environmentally sustainable manner Consult the local community about the level, quality, range and impact of municipal services provided by the municipality, either directly or through another service provider: and the available options for service delivery Give members of the local community equiTable access to the municipal services to which they are entitled Promote and undertake development in the municipality Promote gender equity in the exercise of the municipality’s executive and legislative authority Promote a safe and healthy environment in the municipality Contribute, together with other organs of state, to the progressive realisation of the fundamental rights contained in sections 24, 25, 26, 27 and 29 of the Constitution. In addition, Section 26 stipulates that every municipality is bound by law to produce an integrated development plan (IDP) of which LED is a core component. The Municipal Financial Management Act (MFMA) aims to modernise budget and financial management practices by placing local government finances on a sustainable footing. It also aims to put in place a sound financial governance framework by clarifying and separating the roles and responsibilities of the mayor, executive and non-executive councillors and officials. It consequently serves to
services the District Municipality can provide municipal services directly until the local capacity is developed. The Municipal Systems Act legally bounds the Local Municipality to fulfil its duties and produce an IDP and LED strategy to guide economic development within the local municipal area.
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Implementation of the MFMA is a collective learning experience for all municipalities and they are encouraged to build internal capacity to deliver these reforms rather than employ external consultants. Municipalities are also reminded to
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Joint Initiative on Priority Skills Acquisition (JIPSA 2006)
The Broad-Based Black Economic Empowerment Act (2004)
The National Local
Description
Implications
maximise the capacity of municipalities to deliver services to all its residents, customers, users and investors. The MFMA will be phased in to allow municipalities and other stakeholder’s adequate time to fully implement the reforms.
ensure training courses attended have been approved by the National Treasury. National Treasury in association with SALGA and the SETA, are in the process of finalising unit standards and setting minimum norms and standards for training. The Hantam Local Municipality is responsible to identify the scarce skills within the area and to consider long-term fundamentals for the skills needed in order to achieve sustained economic growth. The Local Municipality will need to develop training programmes in order to promote human resource development in the area.
As part of ASGISA, the Joint Initiative on Priority Skills Acquisition (JIPSA, 2006) seeks to equip people with skills so that they can participate in accelerated growth. JIPSA is a high-level task team that will identify urgent skills needs and advise on how they can be met. The government has acknowledged that the single greatest impediment to its public infrastructure programmes - as well as private investment programmes is the country's shortage of skills. JIPSA has already identified several interventions in need of urgent attention, such as mentoring programmes and overseeing the placement of trainees to fast-track their development. Others include special training programmes, bringing back retirees and expatriate South African’s, and drawing in new immigrants. Also planned are a major upgrade of Further Education and Training (FET) colleges and a revamp of the Adult Basic and Education Training programme, based on models developed in New Zealand and Cuba. In order to uproot inherited social imbalances, progressive legislature has been passed. One example is the Broad-Based Black Economic Empowerment (BBBEE) Act of 2004 where systematic measures are in place to uplift the previously disadvantaged community. Those included in the ‘broad-based black’ definition are Africans, Coloured’s, Indians, women, workers, the youth, disabled persons and those that live in rural communities. The main objective of the BBBEE Act is to transform the South African economy so that it better reflects the South African society whereby commercial enterprises are largely owned and managed by previously disadvantaged individuals. This Act also aims to support the ‘broad-based black’ population through promoting public and private investment in relevant communities and providing easier access to financial assistance. Local Economic Development (LED) has become a fundamental responsibility for all
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The Hantam Local Municipality is responsible for addressing the issue of transformation in its community. Therefore, sector strategies and development policies established by the Local Municipality must be compliant with the BBBEE legislation.
The Framework sets out the following three key
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Description
Implications
Economic Development Framework (2006 – 2011)
levels of government. In order to achieve consistency and uniformity in LED strategies, a national framework has been established in which specific outcomes over a 5 year period are defined. Based on the White Paper on Local Government (1998) the framework deduces that ‘Local Economic Development is about creating a platform and environment to engage stakeholders in implementing strategies and programmes’. In other words it is the responsibility of local government to create an environment that is conducive to development. Furthermore, local government is expected to create a local economy that ‘… [Exploits] local opportunities, real potential and competitive advantages, [addresses] local needs and [contributes] to national development objectives’. Great emphasis is placed on municipalities being managed in an efficient manner in order for local economic development to be successfully achieved – ‘everything a municipality does, does impact on the local economy’. The Integrated Sustainable Rural Development Strategy (ISRDS: 2000) aims to transform rural South Africa into an economically viable sector, which can make a significant contribution to the GDP of South Africa. The strategy attempts to coordinate existing initiatives and programmes towards the end of achieving greater impacts over the short term. The ISRDS is designed to realize a vision that will “attain socially cohesive and sTable rural communities with viable institutions, sustainable economies and universal access to social amenities, able to attract and retain skilled and knowledgeable people, who are equipped to contribute to growth and development”. According to the ISRDS (2000:19) the strategic intent of the ISRDS is to transform rural South Africa into an economically viable and socially sTable and harmonious sector that makes a significant contribution to the nation’s GDP. The strategy will benefit the rural poor generally, but particular efforts will be made to target women, youths, and the disabled. A successful strategy to achieve integrated sustainable rural development will reflect each of its three key elements: 1. Rural Development – rural development is a multi-dimensional concept, encompassing improved service provision, better opportunities for income
roles, which Local Government can play in the LED process: 1. To provide leadership and direction in policymaking. 2. To administer policy, programmes and projects. 3. To be the main initiator of economic development programmes through public spending, regulatory powers and their promotion of industrial, small business development, social enterprises and cooperatives.
Integrated Sustainable Rural Development Strategy (2000)
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The Hantam Local Municipality is responsible for transforming local rural areas into economically viable communities. To facilitate positive change, an in depth understanding of local rural areas is required along with an excellent relationship with the local businesses. Any economic development will need to be sustainable, distributed equally and take cognisance of the environment.
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Description
Implications
generation, Local Economic Development, improved physical infrastructure, social cohesion and physical security within rural communities. The concept also adheres to democratic principles such as the level of representation of local communities in the political process. The concept places emphasis on facilitating change in rural environments to enable poor people to earn a higher level of income and to invest in themselves and their communities. 2. Sustainability – sustainability in this context refers to the increased participation of local communities in development projects and initiatives to ensure their success at a local level. Social sustainability is an important dimension of a successful development strategy. The participation process should be designed to be as transparent and broadly inclusive as possible. A portion of the benefits should be targeted to particular groups that might otherwise be underrecognised, such as women and young people. 3. Integration – the integration of rural development is a comprehensive task because it involves all of the economic sectors that necessities effective coordination between the various spheres of government. The primary focus of integration is at municipal level through the Integrated Development Planning (IDP) process. Implementation of decisions arrived at, through the IDP process, is achieved through an amalgamated resource envelope comprised of the municipal budget, the commitments of the line departments and other sources. The cost of living for poor rural people is generally higher than it need be because of their lack of access to transport and communications infrastructure, basic amenities such as water and electricity, and social services such as health and education. The ISRDS should therefore not only be aimed at integrating only rural development actions, but it should also incorporate actions to integrate rural and urban areas. The reform of municipal government places organs of local government in a central role in integrating programmes to achieve synergistic rural development. Many will need assistance and guidance to develop capacity, but their role and responsibilities are clearly established. They are required to clearly identify local development needs © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Policy
National Industrial Policy Framework (NIPF 2007)
Regional Industrial Development Strategy (RIDS 2006)
Description
Implications
and opportunities and to plan to respond to these. In addition the ISRDS states that any strategy for development should be based on the socio-economic realities in the province and the country as a whole. This framework recognises the strong link between economic, social and physical factors. The National Industrial Policy Framework (NIPF) is a framework that aims to provide strategic direction for South Africa’s industrial development. It follows the principles of the Reconstruction and Development Programme and plays a fundamental role in achieving ASGISA’s goals. The NIPF aims to contribute to the integration of the second economy into the local economy by, firstly, encouraging and creating quality and sstable employment and, secondly, by assisting people to become entrepreneurs in the economy. The NIPF identifies the following four main sets of policies as necessary conditions for industrial development: 1. A stable and supportive macroeconomic regulatory environment 2. Skills and education for industrialisation 3. Traditional and modern infrastructure 4. Innovation and technology. The Regional Industrial Development Strategy (RIDS) presents a comprehensive framework for industrial development in South Africa and builds on the outcomes of the National Spatial Development Perspective (NSDP). The NSDP acknowledges the fact that the landscape of economic development is not equal across all regions in the country. The main intentions of the RIDS is to: 1. Help to achieve the national industrial development objectives as set out in the NSDP 2. Further the goals of the Accelerated and Shared Growth Initiative of South Africa (ASGISA) 3. Conform to the principles of the Integrated Manufacturing Strategy (IMS), the Microeconomic Reform Strategy (MRS) and the current draft National Industrial Policy Framework 4. Enhance the capacities and potentials identified in the Urban Spatial
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The Hantam Local Municipality needs to provide strategic direction to industrial development and unlock economical constraints that will benefit the entire economy. In order to integrate the second economy the Hantam Local Municipality will need to focus on BBBEE, provision of appropriate infrastructure and the appropriate placement of this infrastructure.
The RIDS aims to bridge the first and second economy gap. The RIDS also presents a comprehensive framework for industrial development in South Africa. Industrial development is also needed in the Local Municipality. Support funds will be launched by the DTI that will support local industrial development projects, which will contribute thus to the industrial development of the Hantam Local Municipality.
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
National Strategy for the Development and Promotion of Small Businesses in South Africa (1995)
Description
Implications
Competitive Framework and the Local Economic Development (LED) framework that seek to address spatial constraints and opportunities related to industrial development in municipalities 5. Conform to principles of enterprise development and Black Economic Empowerment (BEE) 6. Conform to the government’s environmental and other relevant policies Small businesses can help South Africa in two significant ways: first, these enterprises are potential engines of growth for the national economy and second, they can aid the transformation process. Four categories of small businesses can be defined: small, medium, micro- and survivalist enterprises, known collectively as SMME’s. Survivalist enterprises are typically made up of individuals that are unable to find employment in a conventional manner. Level of skills and generated income are both extremely low and opportunities for growth are mostly non-existent. Micro enterprises are often informal in nature and typically run by the owner and his/her respective family members. Although skills are limited and incomes levels vary, growth is possible and it is not uncommon for micro enterprises progress into small enterprises. Small enterprises are considerable more formal in nature, commonly managed and the owner and typically consist between 5 and 50 employees. These enterprises are found in a wide range of sectors. Finally, medium enterprises are similar to small enterprises but have a larger employee base (+200) and a greater value of capital assets. It is common for these businesses to have reached their upper-limit of growth due to resource constraints. This strategy aims to create an environment where SMME’s can exist and make use of opportunities presented to them. This in turn will create employment and investment prospects. In addition, this environment will encourage entrepreneurship by offering assistance to potential entrepreneurs – especially those individuals
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In promoting local economic development, it is essential for the Local Municipality to promote the growth of its business sector. In order to do this the Local Municipality needs to facilitate an environment where SMME’s can flourish. This can be done by increasing investment in infrastructure that encourages a competitive business environment, increased productivity, opportunities for employment and entrepreneurialism.
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Tourism Growth Strategy (TGS 2008 - 2010)
Local Government Turnaround Strategy (LGTAS 2009)
Description
Implications
designated by the BBBEE Act. The Tourism Growth Strategy (TGS) provides a three year plan (2008-2010) to boost South Africa’s competiveness in the global tourism and travel market. Through increasing global competitiveness, the tourism industry aims to contribute significantly to AsgiSA’s growth target. There are, however, some key challenges which include the following: 1. Transformation of the tourism industry through increased participation of the previously disadvantaged community. 2. Increased distribution of the industry through promoting less traditional tourism routes and activities. 3. Creating an industry that is sustainable. In order to address these challenges, the TGS stresses the need for South Africa to identify and pursue opportunities in the international, domestic and business tourism market while simultaneously developing its existing market. The Local Government Turnaround Strategy recognises a number of indicators that profile municipalities in respect to basic services, GVA, audit reports, and spatial baselines. The aim therefore is to implement a comprehensive but differentiated programme of action to reach the objective of ensuring that municipalities can meet the basic service needs of communities. Five strategic objectives are identified that will guide the LGTAS interventions and support framework. These are aimed at restoring the confidence of the majority of the people in local municipalities, as the primary expression of the developmental state at a local level. These are: 1. Ensure that municipalities meet the basic service needs of communities 2. Build clean, effective, efficient, responsive and accountable local government 3. Improve performance and professionalism in municipalities 4. Improve national and provincial policy, oversight and support 5. Strengthen partnerships between local government, communities and civil society These objectives have been identified as the key drivers in order to rebuild and
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The Hantam Local Municipality is expected to contribute to the TGS (and ultimately ASGISA) through developing and expanding its existing market in a way that promotes transformation, distribution and sustainability in the industry. This suggests that a local tourism strategy is essential for boosting economic development in the area.
In achieving these objectives there will be a need to mobilise government and society to protect and enhance the Local Government system by addressing the forces undermining the system and addressing relevant areas for improvement. This objective requires that Local Government support interventions in performance and professionalism, process efficiencies, and clean government. It will also require that partnerships between local government, communities and civil society are strengthened.
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
New Economic Growth Path Plan (2010)
Description
Implications
improve the basic requirements for a functional, responsive, effective, efficient, and accountable developmental local government. The Municipal Systems Amendment Bill (2011) aims to professionalise the administration of municipalities to improve service delivery and development. It prohibits officials fired from one municipality being employed by another for a specified length of time. In the case of fraud and corruption charges the prohibition period is 10 years. This Amendment will also stop municipalities from employing people in senior positions who do not have the requisite skills. Once the Bill becomes Law, employment contracts of officials without the requisite skills will be rendered null and void. It will also be illegal for councillors to pass votes through council that aim to circumvent due process. Top management will be banned from holding official positions – such as chairman or treasurer – in political parties. The New Economic Growth Path Plan aims to create five million jobs opportunities within the next ten years which will reduce unemployment by 15-25%. This growth plan is in response to the jobs lost during the global economic recession where more than a million jobs were lost in the 2008/2009 economic crisis in South Africa alone. The centrepiece of the New Economic Growth Path Plan is to promote investment into infrastructure and human development through skills development. It is also important to note that the plan indicates that the overall goal will only be achieved if there is better co-ordination between the public sector, private sector and labour organisations. The aim of the plan is to: 1. Promote Economic Growth 2. Employment Creation 3. Enhance Equity The new growth path will now seek to place the economy on a production-led trajectory with growth targeted in ten ‘jobs drivers’. As a first step, government will focus on unlocking the employment potential in six key sectors and activities. These are: Infrastructure, through the massive expansion of transport, energy, water,
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The centrepiece of the New Economic Growth Path Plan is to promote investment into infrastructure and human development through skills development. This will require better co-ordination between the private and public sector. Six key sectors will be looked at to achieve these goals: infrastructure, agriculture, mining, green economy, and manufacturing.
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Description
Implications
communications capacity and housing, underpinned by a strong focus on domestic industry to supply the components for the build-programmes The agricultural value chain, with a focus on expanding farm-output and employment and increasing the agro-processing sector The mining value chain, with a particular emphasis on mineral beneficiation as well as on increasing the rate of minerals extraction The green economy, with programmes in green energy, component manufacture and services Manufacturing sectors in the Industrial Policy Action Plan (see list below) Tourism and certain high-level services The following provides a list of the priority sectors as identified within IPAP2 (Industrial Policy Action Plan Sectors 2010/11 – 2012/13): 1. Metal fabrication, capital equipment and transport equipment 2. Green' and energy-saving industries 3. Agro-processing 4. Automotives, components and medium and heavy commercial vehicles 5. Downstream minerals beneficiation 6. Plastics, pharmaceuticals and chemicals 7. Clothing, textiles, leather and footwear 8. Biofuels 9. Forestry, paper and pulp, and furniture 10. Cultural industries: crafts and film 11. Tourism 12. Business Process Services 13. Advanced manufacturing Province – Northern Cape Province Northern Cape
The core purpose of the NCPGDS is to enable stakeholders from public, private and
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The
NCPGDS
has
identified
the
following
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Description
Implications
Provincial Growth and Development Strategy (NCPGDS 2005)
parastatal sectors together with labour and civil society to determine a plan for sustainable growth and development of the Northern Cape. The NCPGDS sets the tone for development planning and outlines the strategic planning direction in the Province. The main objectives set by the NCPGDS for development planning in the Province are: Promoting the growth, diversification and transformation of the provincial economy Poverty reduction through social development Developing requisite levels of human and social capital Improving the efficiency and effectiveness of governance and other development institutions Enhancing infrastructure for economic growth and social development
interventions as the key to promoting economic growth in the Province: 1. Agriculture and agro-processing 2. Mining and mineral processing 3. Manufacturing 4. Fishing and mariculture 5. Tourism Besides focusing on these sectors, the Local Municipality needs to meet basic needs, target vulnerable groups, focus on urban and rural development, and crime prevention. Other strategic interventions include strengthening local government. inter-governmental relations and PPP, promoting an efficient and effective transport system, enhancing competitiveness through costeffective transport, improving Information and Communication Technology, and identifying and developing critical infrastructure. The NCSDS is still being formulated/established but when it becomes policy it will have the following implications for NDM: (1) NDM will have to designate spatial development initiatives in the District; (2) the District will have to provide direct support to catalyse the flagship economic development projects along transport/ development corridors and within identified special resource areas; and (3) the District will have to make provision of necessary infrastructure and services to support economic development along the same
Northern Cape Provincial Spatial Development Strategy (NCSDS)
As part of the development planning process that underlies the formulation of the NCPGDS, it is necessary to produce a Provincial Spatial Development Strategy (PSDS). The PSDS must not only give effect to national spatial development priorities but it must also set out a series of provincial, district and local development priorities for the space economy of the Northern Cape. In so doing, the PSDS will provide a means to guide strategic decisions relating to the location and distribution of resources in time and geographic space. TAKE NOTE: The Northern Cape is currently still formulating/establishing a PSDS.
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Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Northern Cape Local Economic Development Strategy (NC LED 2009)
The Northern Cape Municipal LED Framework (2010)
Description
Implications
The NC LED is intended to build a shared understanding of LED in the Province and put into context the role of local economies in the provincial economy. It seeks to mobilise local people and local resources in an effort to fight poverty. The NC LED Strategy investigated the options and opportunities available to broaden the local economic base of the Province in order to promote the creation of employment opportunities and the resultant spin-off effects throughout the local economy. Areas of opportunity include: Livestock products Game farming Horticulture Mariculture Ago-related industries Tourism Manganese and iron Ore Beneficiation of minerals Renewable energy The LED experience in the Northern Cape (and elsewhere) has indicated that local economies do not change when they need to. The Northern Cape Municipal LED Framework was developed in the wake of the NCLED Strategy to provide municipalities with a dedicated support tool to develop or review their own LED Strategies. The broad aim of the Framework is to provide a common understanding of LED in the Province, a shared format for LED Strategies and structured support mechanisms. LED encompasses a range of disciplines including physical planning, economics and marketing. It also incorporates many local government and private sector functions including environmental planning, business development, infrastructure provision, real estate development and finance. the following LED Strategy Framework for municipalities in the Northern Cape:
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transport/ development corridors and within special resource areas. The NDM LED provides the Local Municipality’s with leadership and direction in policy making, in order to administer policy, programmes and projects, and to be the main initiator of economic development programmes through public spending, regulatory powers and their promotion of industrial, small business development, social enterprises and cooperatives. The Local municipality’s need to create an enabling environment for their communities.
The purpose of LED is to build up the economic capacity of a local area to improve its economic future and the quality of life for all. It is a process by which public, business and nongovernmental sector partners work collectively to create better conditions for economic growth and employment generation. At the end of each year every NC LED manager should ask her/himself two questions: 1. How many new jobs have I facilitated this year? 2. How much new investment have I facilitated this year?
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Northern Cape Agriculture & Agro-Processing Sector Development Strategy (AAPSDS)
Northern Cape Mining and Mineral Sector Strategy
Northern Cape
Description
Implications
Phase 1: LED Visioning Phase 2: Situational Analysis Phase 3: LED Strategy Formulation Phase 4: Implementation Plan Phase 5: Monitoring and Review The NC AAPSDS is one in a series of economic sector development strategies that aims to provide for a more accurate prioritization of effort and resource allocation by the public sector generally and provincial government in particular in its endeavours to deliver on its mandate to promote the economic development of the Northern Cape province. The NC’s traditional strength is in the production of a wide range of primary commodities. Adding value to the commodities could make a significant contribution to the transformation of agriculture in the province and, by extension, rural and national development. Agro-processing can increase the viability, profitability and sustainability of production systems through their impact on increasing incomes of primary producers, create employment and foreign exchange earnings, and address the market risks associated with primary agricultural production. The challenge facing the Northern Cape Government is how to broaden and encourage the opportunities presented by a variety of mineral resources. With the inability of this sector to yield sufficient jobs and the fact that mining has a limited lifespan, diversifying the economy is perceived to be of utmost importance to the Province. Important points regarding beneficiation that are highlighted include the facts that the decision to beneficiate is dependent on economic and market factors, however, raw material prices paid locally should not place beneficiators at a disadvantage. It is important to note that although the Mining Sector contributes largely to the GGP of the Northern Cape the sector is in decline and as part of this strategy the Northern Cape Province are looking at better job creation opportunities by diversifying the Mining industry. It is important to note in this regard that individual firms are the smallest and most
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Each Local Municipality within the NC will need to identify agricultural constraints in order to determine, prioritise and create an environment that is conducive to agricultural and agro-processing development. The NCs Local Municipality’s will also need to identify opportunities for private investments and public interventions to respond to these new opportunities in the agricultural and agroprocessing sector.
The local municipal areas have the availability of adequate mineral resources, the Hantam Local Municipality just needs to continually support the mining sector by ensuring an enabling environment for business investment and protecting the local markets (demand and supply) by creating comparative advantages in the area. The Hantam Local Municipality should also facilitate ways in which local small miners will be able to participate in the market. The Hantam Local Municipality needs to create an
Hantam Local Municipality Local Economic Development Strategy 2011 Policy Manufacturing Strategy
White Paper on the Development and Promotion of Tourism in the Northern Cape (2005)
Description
Implications
basic (that is to say foundational) level of competitiveness. Without firms raising their operational performance and moving towards a frontier of manufacturing excellence there can be no possibility of increasing competitiveness in any economy. The NC Manufacturing Strategy takes an in-depth look at the Northern Cape’s manufacturing sector and shows that Kimberly and Upington are the strongest manufacturing towns in the NC. The Strategy suggests that one-stop-shops be established (and a NC Manufacturing Cluster), as well as the tertiary educational base required to provide local citizens with the skills required. It also stipulates that manufacturing companies upgrade their production activities in order to compete nationally and internationally. This tourism white paper has been developed within the context of the Northern Cape Provincial Growth and Development Strategy which is underpinned by the following principles namely: integration, sustainability and customer service and satisfaction through Batho Pele. The tourism white paper stems from the realization that a dedicated tourism policy was needed to promote integration of tourism management in order to harness provincial natural and cultural resources for sustainable tourism growth. The vision of the Northern Cape in terms of tourism is to be the preferred adventure and ecotourism destination in South Africa that is recognized for its cultural heritage and special interest tourism offering through the responsible development of natural and cultural resources. The following factors are considered as critical to the achieving the vision: Tourism declared a provincial priority. Meaningful involvement of marginalised communities; Improved funding for tourism development and destination marketing; Co-ordination and synergising of public tourism resources; A safe and peaceful tourism environment; Constant innovation of the provincial product portfolio in the areas of conservation and ecotourism, cultural tourism, entertainment and shopping
enabling environment for the manufacturing sector through supply side support measures, and ensuring that the necessary infrastructure is put in place.
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It is well known that tourism experiences happen at a local level and local communities and towns are the points where tourists require facilities and services. A well-organized tourism industry at local level is crucial to the tourism success of the province. The establishment of local, membershipbased Tourism Associations (LTA’s) and local Visitor Information Centres (VIC’s) in towns/municipal areas are important vehicles for tourism advancement at a local level.
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Description
Implications
goods such as crafts, jewellery, etc.; Crafty and innovative marketing and promotion; Improved service levels, product quality and value for money; Greater involvement of other (supportive) sectors of the economy; Improved awareness of tourism and accessibility to training opportunities, advisory services and finance for tourism enterprises; Sustainable environmental practices The vision of the Northern Cape being the preferred adventure and ecotourism destination in South Africa is supported by the following objectives towards 2015: To be visitor focused; To match products to markets; To strengthen and expand the product portfolio; To define and strengthen tourism spatial components and experience clusters; To develop a unique destination positioning; To customize experiences through packaging; To tailor the marketing message to chosen segments; To make it easy to get there and move around; To streamline the institutional structure; To optimise human and financial resources; To partner for success. District – Namakwa District Municipality
Namakwa District Municipality Integrated Development Plan (IDP 2006 – 2011)
The 2006-2001 IDP as well as the first revision, 2008-2009, contains certain strategic and long term information (strategies, goals, targets, etc) and are therefore an integral part of the development process of the District. During the past year several development activities were initiated through analysis reports, economic potential identification and an improved Sector Department involvement in the District. These initiatives are presently in progress, although in different stages. Identified projects
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The Namakwa District Municipality must promote local economic growth and social development in order to provide a better life for their communities. A sTable and safe environment is essential for prosperous growth and development, thus creating an enabling environment for communities.
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Namakwa District Municipality Local Economic Development Strategy (LED 2009)
Description
Implications
were divided into 5 KPA’S namely: Municipal Transformation and Organisational Development Basic Service Delivery and Infrastructure Local Economic Development Municipal Financial Viability and Management Good Governance and Public Participation The NDM LED is intended to build a shared understanding of LED in the District and put into context the role of local economies in the provincial economy. It seeks to mobilise local people and local resources in an effort to fight poverty. Various opportunities (projects and programmes) are identified in this strategy, namely: Institutional Development for Investor Readiness (this is essentially a human capital development and municipal service delivery improvement strategy). SMME Development (cutting across sectors, this is reflected in specific SMME opportunities identified, as well as, for example, the One-Stop Mining Centre). Agricultural Sector Development (including the Hoodia and Mariculture projects, the enabling public sector interventions and the implementation of new technologies as they become viable (such as new biotechnologies, irrigation techniques and so on). Mining Sector Development (including the beneficiation projects, One-Stop Mining Centre and the implementation of new technologies. Industrial Development (programmes relating to the manufacturing projects identified and general improvement in living conditions, infrastructure (particularly transport) and overall economic growth) Renewable Energy Development (including wind, wave, solar, and biogas energy) Space Research and Development Spin-offs (prioritising the identification of spin-offs and enabling local entrepreneurs to exploit these opportunities). Tourism Development (including the specific projects/SMME business opportunities and the enabling public sector interventions).
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The NDM LED provides the Hantam Local Municipality with leadership and direction in policy making, in order to administer policy, programmes and projects, and to be the main initiator of economic development programmes through public spending, regulatory powers and their promotion of industrial, small business development, social enterprises and cooperatives. The Hantam Local municipality needs to create an enabling environment for its communities.
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Description
Implications
Namakwa District Biodiversity Sector Plan (2008)
Quality of Life Improvement (this is seen as an all-encompassing thrust with specific programmes in the Expanded Public Works Programme aimed at improved infrastructure, overcoming backlogs in service delivery, providing education, health and safety services and so on. It should deal with the attractiveness of the area to investors in terms of quality of life and quality of labour and resources on the one hand, and the ability of locals to take advantage of economic opportunities on the other). Integration and cooperation between the spheres of government, among neighbouring local municipalities, and between local municipalities and their encompassing district authorities is essential to ensure that the developmental mandate is fulfilled in an efficient and effective manner, with neither duplication nor gaps in the development of communities. This Strategy serves to help guide land-use planning, environmental assessments and authorisations; and, natural resource management in order to promote development which occurs in a sustainable manner. It has been developed to further the awareness of the unique biodiversity in the area, the value this biodiversity represents to people as well as the management mechanisms that can ensure its protection and sustainable utilization. The purpose of this strategy is to ensure that biodiversity information can be accessed and utilized by local municipalities within the Namakwa District Municipality to inform land use planning and development as well as decision making processes within the NDM.
The Hantam Local Municipality can use this strategy to make sure local economic development does not infringe on biodiversity and critical biodiversity areas. The strategy also includes projections for sustainable development that can be included in development plans and future planning reports.
Local – Hantam Local Municipality Hantam Local Municipality Integrated Development Plan (IDP 2010)
The vision of the Hantam LM is: “To create a safe, health, friendly and economically sustainable environment where all inhabitants of the Hantam LM will be benefited through effective municipal service delivery.” The mission statement of the HLM is: Continued professional training of personnel in order to ensure quality and purposeful service.
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Hantam LM must create an environment that will enhance economic development with specific focus on social, economic and infrastructure development. Specific projects are outlined for each town that needs to be prioritised and implemented.
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Description
Implications
Hantam Local Municipality Rural Spatial Development Framework/Land Development Plan (2010)
Creation of effective maintenance programs in terms of existing infrastructure and development. To implement and maintain the principles of Batho Pele. To insure client satisfaction through transparent, friendly and credible service delivery. Creation of opportunities for economic growth and development. Promotion of social service delivery in the Hantam LM. Key performance areas include: Municipal transformation and organizational development Infrastructure development and service delivery Local economic development Effective Municipal Financial Management Effective management and public participation The main economic sectors of Hantam LM are agriculture (primarily livestock), mining and tourism (but tourism marketing of the area is very weak). Through its vision, the Hantam LM strives to create a safe, healthy and economically sustainable environment where all residents will benefit from effective and efficient service delivery. In ensuring the spatial fulfilment of its vision, the Municipality has identified projects that are spatially related to the above-mentioned aspects: Provision of engineering service infrastructure Provision of social service infrastructure Providing a healthy and safe environment Climate change is expected to have a bigger impact on groundwater resources than weather variables do as groundwater is buffered against short-term variations. In dryer areas like the Hantam municipal area where annual rainfall is less than 500 mm, a 10% decrease in rainfall could translate into as much as a 40% decline in recharge. Hantam consists largely of non-arable, low potential grazing land (84.42%) and is therefore ideally suited to sheep farming, which is characteristic of this municipal area. This land is ideally suited for cultivation of Rooibos plantations.
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There are thus three key perspectives: The need to develop the economy for the benefit of its residents and to alleviate the societal problems, such as substance abuse and problems among youth, as well as to provide it with its basic needs; The need to manage the resources of the area in order that these are sustainable for future generations that may choose to stay there; and The need to protect natural resources, which if over-exploited, may result in damage to other biospheres and irreversibly upset the ecology of the environment.
Hantam Local Municipality Local Economic Development Strategy 2011 Policy
Description
Implications
Maintenance of existing tar and gravel roads is essential for sustainable economic development. The objectives of the SDF are as follows: Exploit economic opportunities Create sustainable urban and rural settlements Protect the natural and built environment
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ANNEXURE C: MINING INFORMATION Table below shows all the mines and quarries that were operating in 2006. Table 25 - Operating Mines and Quarries and Mineral Processing Plants Name of Mine Owner Commodity Operational Status and Type of Mine Brandvlei Brandvlei Clay Mine Steenwerke Steenwerke CC Aggregate Opencast Boesmanland Gypsum Mine Dikpens
BPB Gypsum (Pty) Ltd United Salt (Pty) Ltd
Gypsum
Mine Opencast Mine Surface
Salt
Dwaggas Salt Dwaggas Salt Salt Works Works (Source: Department of Minerals and Energy, 2006) Map below indicates the mining activities within Hantam LM.
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Mine Surface
Name of Farm or Area Brandvlei Munisipale Meent Waterkuil 185 Calvinia 182/2 Dikpens Loeriesfontein Dwaggas-Oos 190/3
Hantam Local Municipality Local Economic Development Strategy 2011 Map - Mining Activities in Hantam LM
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Hantam Local Municipality Local Economic Development Strategy 2011 The following Table indicates the commodities found in the Hantam LM, the size of the deposits, where they are located, and whether they are being exploited or not. Table 26 - Mineral Deposits in Hantam LM Commodity
Deposit Status
Location: Farm Name
Gy (Gypsum)
Deposit Never Exploited
BRAK PAN
Gy (Gypsum)
Deposit Never Exploited
KAMAS
Gy (Gypsum)
Deposit Never Exploited
KARREE DOORN PAN
Gy (Gypsum)
Deposit Never Exploited
KARREE DOORN PAN
Gy (Gypsum)
Deposit Never Exploited
UIL KLIP
Na (Salt)
Deposit Never Exploited
KAMAS
Zn (Zinc) Pb (Lead) Cu (Copper) RM (Road Metal)
Deposit Never Exploited
KOPOAS FONTEIN
Intermittently Producing
OLYVENBOSCH
(Source: GeoSience)
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Hantam Local Municipality Local Economic Development Strategy 2011
ANNEXURE D: ROLES AND RESPONSIBILITIES LED is a cooperative developmental effort between government, the private sector and civil society. It is not a specific action or programme, but occurs when a spectrum of stakeholders harness their individual resources and ideas to strive for a better economic status within a locality. Thus, all the stakeholders have responsibilities and roles to play in the process. The roles and responsibilities of the various tiers of government, as well as civil society, in the Hantam LED Strategy are outlined below: National Government: The role of National Government in the Hantam LED Strategy includes the following: 1. To co-ordinate and align support to the Municipality for LED through its IDP process. 2. To provide support to the Municipalities to implement its developmental mandate. 3. To provide the overall legislative and regulatory framework for LED. 4. To maintain strong inter-governmental relationships with the Municipality. 5. To provide the necessary resources to the Municipality to implement LED. 6. To disseminate information to the Province, District and the Municipality about LED. 7. To broadly monitor the outcomes and impact of municipal-led LED activities. Provincial Government: 1. To align LED initiatives with National and local priorities. 2. To strengthen and support the capacity of the Municipality. 3. To make available financial and technical resources to implement and sustain LED in the Municipality. 4. To share information (provincial economic trends, land use, investment, new developments) with the Municipality. 5. To monitor and evaluate the impact of LED initiatives provincially. District Municipalities: District Municipalities are better positioned to provide a co-ordinating and supporting role to the local municipalities within their administrative areas. They have the following direct responsibilities: 1. Plan and co-ordinate LED strategies within the framework of IDP. 2. Establish the LED structure comprising of the district and local municipalities, to foster cooperation and co-ordinate LED policies, strategies and projects within the District. 3. Identify lead LED sectors that can kick-start development within districts by undertaking economic research and analysis. 4. Promote joint marketing, purchasing and production activities. 5. Promote networking of firms within the District (e.g. tourism routes). © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 6. 7. 8. 9.
Collect and disseminate information to assist Local Municipalities with LED policies. Identify resource availability (e.g. grants, land, infrastructure, etc.). Maintain a strong relationship with the Province. Provide the necessary training to municipalities.
Local Municipalities: Local Municipalities are the key LED implementation agencies of government. They have a more direct impact on LED in terms of their potential influence on issues and factors such as by-laws, tender and procurement procedures and other regulations. They also have a more direct influence on access to land and the necessary infrastructure and services, promoting a positive image of their area, making their environment more appealing and welcoming investors and visitors, facilitating skills development and being responsive to the needs of the local and potential business concerns. The Hantam Local Municipality, therefore, need to be proactive in promoting economic development. In view of the above, LM has the following responsibilities: 1. Ensure that social and economic development is prioritised within the municipal Integrated Development Plans. 2. Conduct local economic regeneration studies as part of the IDP. 3. Establish capacity within the municipality to promote interdepartmental collaboration. 4. Establish an LED Forum within the community to mobilise the efforts and resources of local stakeholders around a common vision. 5. Build and maintain an economic database to inform decisions and act as an early warning system for the Municipality. 6. Identify and market new economic opportunities. 7. Create an enabling environment for local businesses through efficient and effective service and infrastructure delivery. 8. Improve the quality of life of, and facilitate economic opportunities for the local population by addressing infrastructure and service delivery backlogs. 9. Develop an understanding and communicate the complex local economic relations, limitations and advantages to role players. 10. Network with key sectors and role players to create partnerships and projects. 11. Motivate and support individuals, community groups and local authorities to initiate and sustain economic initiatives. 12. Mobilise civil society to participate in LED and encourage public participation. 13. Establish sector linkages and clustering of economic activity. The Municipality is thus the “connector” that links Local, Provincial, National and International spheres; facilitates growth of social capital; incorporates local role players in partnerships; and accesses funds. Furthermore according to the National Framework on LED (DPLG, 2006) Local Governments are the © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 primary, but not exclusive, institution for LED. Within this context, the Hantam LM has three key roles to play: 1. To provide leadership and direction in policy making (by-laws and processes to regulate land in manner that reduces the costs of doing business and maximises the involvement of people in the local economy). 2. To administer policy, programme and projects (the core function of anybody or structure responsible for LED is to co-ordinate and maximise the impact of programmes and projects with respect to growth and development). 3. To be the main initiator of economic development programmes through public spending, regulatory powers, and the promotion of industrial, small business development, social enterprises and cooperatives. Furthermore, in promoting the local economy, the primary focus of the Hantam LM should be upon the: 1. Provision of infrastructure and quality and reliable services. 2. Managing spatial policies. 3. Land-use regulation and development applications. 4. Managing service tariff policies. 5. Managing a progressive property tax system. 6. Marketing the area’s investment opportunities. Alongside the above is the important aspect of regulating and implementing the compliance of land use and environmental regulations. There is a need to ensure that these processes of regulation are administered in a way that does not impair business start-up and growth and inhibit job creation. CoGTA encourages municipalities to use regulatory impact assessment tools in measuring the balance between the need for regulation and competitiveness. Beyond this, Municipalities can actively provide support to local enterprises by linking up with the relevant Provincial and National tasked with this responsibility in different economic sectors. Civil Society: The new developmental form of local government puts emphasis on civil society involvement in local government activities. For civil society involvement to have the desired effect, however, representatives should have the legibility and respect of the people or organisations they represent. Civil society should also share a common LED vision with the local municipality within which they reside. Civil society has the following responsibilities: 1. A community must have a core of local, capable and respected leaders who are prepared to commit time and energy to LED. The active engagement of women and young people in the leadership is essential. 2. Community leaders need to have or acquire the necessary skills, knowledge and attitudes necessary to manage economic change. 3. Leaders must operate in a transparent manner and be accounTable. © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 4. Leaders must be willing to report, listen and ensure the support of the community. 5. Leaders should provide inspiration and participate in developing new layers of leadership. 6. The community must adopt a practical development agenda which focuses on realistic and sustainable goals, long-term plans and achieving small visible improvements by getting people involved. 7. The goals must be realistic and address the community's needs. To achieve this, there needs to be constant evaluation and adjustment of the action plan. As such, civil society should participate in decision making and implementation of public programmes that create local employment, they should encourage successful entrepreneurship, get organised to deal with collective issues, and play watchdog roles to ensure that public resources are used to advance social priorities. The private sector needs to get effectively organised in business chambers and sectoral associations, it needs to organise effective collective action to undertake LED initiatives, and it should interact with local government to identify win-win opportunities.
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Hantam Local Municipality Local Economic Development Strategy 2011
ANNEXURE E: SUPPORT ORGANISATION INFORMATION
Private Investors
Local Equity
Support Organisations A wide variety of private investors could be attracted, with private investors coming in either as partners, equity share holders or as funders through their respective Corporate Social Investment (CSI) programmes. A package of investment opportunities in the Nama Khoi LM should be developed. This should outline the nature of the investment opportunity, its feasibility in the context of the macro and micro economic climates and the expected benefit to the investor in terms of return on investment. This package of opportunities should then be publicised and targeted at potential anchor tenants and other investors. The local communities are the intended beneficiaries of many of the projects, and the Hantam should investigate the idea of local ownership. This can be done in a number of ways, which require further investigation4, including: Selling share options directly to the public Selling larger equity shareholdings to local businesses Establishing local investment companies jointly with existing informal savings groups (stokvels or “gooi-goois”) and local businesses and facilitating them to invest in opportunities, while maintaining a stable current account to service the usual needs5 of investment members Establishing investment partnerships with LMs, Local businesses and Section 21 companies Funding
IDC The IDC (Industrial Development Corporation) is a national development finance institution Address: Block D, Sanlam Business Complex, 13 Bishops set up to promote economic growth and industrial development. Target beneficiaries include Avenue, Kimberley. previously disadvantaged groups, including women, people with disabilities, low income Tel: 053 807 1050 worker groupings and marginalised communities. Projects that are supported include: Fax: 053 832 7395 Developing small and medium enterprises Email:
[email protected] Developing rural areas and underdeveloped provinces & regions © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Web: http://www.idc.co.za
DBSA Address: Headway Hill, 1258 Lever Road, Midrand. Tel: 011 313 3911 Fax: 011 313 3086 Web: http://www.dbsa.org
Support Organisations Boosting Broad-based Black Economic Empowerment & empowering people who were previously excluded from participating in the economy The different funds include: Gro-E Scheme (focused on green industries; agricultural value-chain; manufacturing; mining value chain; tourism; media; & the knowledge economy) Risk Capital Facility Programme (focused on providing risk finance to companies owned by historically disadvantaged people) Support Programme for Industrial Innovation (focused on providing financial assistance to projects that create innovative products & processes) Transformation & Entrepreneurship Scheme (includes five funds: women entrepreneurial fund; people with disabilities fund; equity contribution fund; development fund for workers; & community fund) The DBSA (Development Bank of South Africa) Development Fund provides grant funding and co-funding for project-level capacity building projects in South Africa. The Development Fund achieves its mission by delivering the following products and services: Funds: capacity building funding through grants Expertise: mobilization and deployment of technical and financial experts for infrastructure project implementation Development facilitation: technical support and sharing of knowledge Capacity building projects enhance the institutional capability of the DBSA’s clients to identify, define and solve challenges that prevent them from managing functions, performing tasks and rendering services effectively, as well as those that develop their local economy. Grants are also approved for feasibility studies and BEE initiatives. The DBSA provides various options of support: Lending – lending products include a range of financial instruments and other lending related services that are available to the Bank’s public and private clients. The Bank offers numerous combinations of financial instruments structured to fit the needs of the client, and lending focused on infrastructure and commercially viable projects. Long-term lending is generally for more than five years.
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DTI Address: 77 Meintjies Street, Sunnyside, Pretoria. Tel: 0861 843 384 Fax: 0861 843 888 Email:
[email protected] Web: http://www.thedti.gov.za/
Support Organisations Investing – the Bank’s financing role entails the provision of a range of financial products to private and public sector organizations. The Bank’s financing role will be determined primarily by the need to play a catalytic role in leveraging private sector investment for infrastructure. Investing products include Equity Funds, BEE financing of equities, and private funding. Underwriting guarantees – as a development orientated financial institution, the Bank is committed to assume risk for development and improve the borrowing capacity of our clients in South Africa and in the SADC region. The Bank underwrites guarantees and its credit enhances projects and/clients to attract better financing terms and conditions. Underwriting guarantees is central to capital markets development strategies. Arranging of Finance – the Bank partners with international development and finance institutions to enhance integrated economic development and growth in SADC and South Africa. The Department of Trade and Industry's (DTI) vision is of a South Africa that has a vibrant economy, characterised by growth, employment and equity, built on the full potential of all citizens. To achieve this, the DTI has become an outwardly focused, customer-centric organisation. The purpose of the DTI is to: Provide leadership to the South African economy through its understanding of the economy, its knowledge of economic opportunities and potential, and its contribution to ASGISA. Act as a catalyst for the transformation and development of the economy and respond to the challenges and opportunities of the economic citizens, in order to support the government's economic goals of growth, employment and equity. Respond to the challenges and opportunities in the economy and society. Provide a predictable, competitive, equitable and socially responsible environment for investment, enterprise and trade. In addition to its internal capacity, the DTI relies on a group of specialised, regulatory and financial development agencies and institutions in supporting its economic growth, employment and equity ideals, and in delivering products and services to the economic
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations citizens of the country. These agencies or Council of Trade and Industry Institutions (COTII), include the following: Small Enterprise Development Agency (SEDA) Companies and Intellectual Property Commission (CIPC) National Empowerment Fund (NEF) Estate Agency Affairs Board (EAAB) Export Credit Insurance Corporation (ECIC) South African Bureau of Standards (SABS) National Credit Regulator (NCR) National Lotteries Board (NLB) National Gambling Board (NGB) South African National Accreditation System (SANAS) National Consumer Tribunal (NCT) National Consumer Commission (NCC) National Metrology Institute of South Africa (NMISA) National Regulator for Compulsory Specifications (NRCS) Through the collective efforts of the DTI group, the Department seeks to achieve the following objectives: Increase the contribution of small, medium and micro-sized enterprises (SMMEs) to the South African economy, via financial, administrative and other support; Ensure the implementation of Broad-Based Black Economic Empowerment (B-BBEE) across all sectors of the economy; Increase the levels of foreign direct investment into the country; Expand market access opportunities for the exportation of South African goods and services; and Contribute towards building skills, technology and infrastructure platforms in the economy, from which enterprises can benefit. Some of the more appropriate manufacturing sector support programmes and funds include: Sector Partnership Fund (SPF) © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations Small Medium Enterprise Development Programme (SMEDP) Black Business Supplier Development Programme (BBSDP) Critical Infrastructure Fund (CIF) Foreign Investment Grant (FIG) Skills Support Programme (SSP) Strategic Industrial Projects (SIP) Export Marketing Investment Assistance (EMIA) Project Funding for Emerging Exporters incentive scheme (PFEE) Khula Enterprise Finance Ltd To provide finance, mentorship services and small business premises to SMEs through a Address: 72 Long Street, Business Partners Building, network of partnerships and to encourage the sustainable development of SMEs. The various Kimberley loans include: Tel: 053 832 2275 or 053 832 9713 Enablis-Khula Loan Fund (for ICT) Fax: 053 832 9585 Khula-Akwandze Fund(for agriculture) Web: http://www.khula.org.za/ Land Reform Empowerment Facility (for agriculture) Khula Credit Indemnity Scheme (for mining) Anglo-Khula Mining Fund (for mining) The Credit Indemnity Scheme (for SMMEs) Business Partners-Khula Start-up Fund (for SMMEs) Khula Enablis SME Acceleration Fund (for SMMEs) Retail Financial Intermediaries (for SMMEs) The Khula Mentorship Programme (for SMMEs) Khula Emerging Contractors Fund (for contractors) The Khula Property Portfolio (to rent property) NDA The NDA (National Development Agency) aims to contribute towards the eradication of Address: 2nd Floor, Grosvenor Building, 195 Jan Smuts poverty and its causes by granting funds to civil society organizations (CSOs) for the purposes Avenue, Parktown North. of: Tel: 011 018 5500 Implementing development projects of poor communities; and Email:
[email protected] Strengthening the institutional capacity of other civil society organisations that provide Web: www.nda.org.za services to poor communities. © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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NCEDA Address: 227 Du Toitspan Road, Belgravia, Kimberley Tel: 053 833 1503 Fax: 053 833 1390 Email:
[email protected] Web: http://www.nceda.co.za/
SCAT Address: 3rd Floor, 19 Loop Street, Cape Town Tel: 021 418 2575 Fax: 021 418 6850 Email:
[email protected] Web: http://www.scat.org.za/
Support Organisations The NDA provides grant funding to CSOs which implement development projects of poor communities, and those who strengthen the institutional capacity of other CSOs who provide services to poor communities. The NDA also looks at the different stages of development in particular communities and come up with various models of interventions. This means that the NDA has a pro-active approach to funding based on the following: Request for Proposals (RFP); & Programme Formulation. Core Areas of Funding include: Food security Local economic development/social entrepreneurship NGO consortia and networks for policy and advocacy for the poor Capacity building for CSOs NCEDA (The Northern Cape Economic Development Agency) focuses its attentions on providing the following services to the people of the Northern Cape, concentrating on key projects and the creation of spin-off and down-the-line opportunities: Focus on key projects with the creation of spin-off and knock-on effects Identification, prioritisation, facilitation of planning and implementation of projects Advise potential business owners on their business proposals Facilitation for funding of projects Facilitation of feasibility studies Facilitation of partnerships Linkages of potential role-players to follow-up opportunities NCEDA focuses on specific sectors in the Northern Cape’s provincial economy, including agriculture and agro-processing, mining and mineral beneficiation, and tourism infrastructure. The Social Change Assistance Trust (SCAT) is an independent fund-raising and grant-making development agency. SCAT works within a partnership context to support such local agencies in development and human rights work in rural communities of the Northern, Eastern and Western Cape and the North West Provinces. The focus is on human rights, gender equity, HIV, AIDS and local economic development. Programmes include: Financial support (including grants; fundraising incentive scheme; development fund for
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RDSP Address: Cathedral Place, 12 Bouquet Street, Cape Town Tel: 021 462 4555 Fax: 021 465 8338 Email:
[email protected] Web: http://www.rdsp.co.za/rdsp/
Support Organisations training; & HIV/AIDS fund for development) Field support & general organizational capacity building Brokering partnerships HIV and AIDS activator programme LED Gender equality Recognising the high levels of rural poverty, RDSP (Rural Development Support Programme) supports rural CBOs, development initiatives and sports groups to bring about positive change in their communities. RDSP works primarily with rural community based organisations (CBOs) and small groups in need of skills training, organisational development, mentorship and exposure. According to RDSP’s way of working, rural organisations are the implementing agents and RDSP are the support program or service providers with the common aim of alleviating rural poverty. Our programs are our tools for achieving this. RDSP programmes include: Rural Training & Mentorship Programme The 7 Habits Rural Leadership Training Course Small Business Unit Open Learning Programme Discovery Exchange & Exposure Programme Education / Training
SETA’s Tel: 012 309 4000 or 012 309 4573 Web: http://www.labour.gov.za/ 1. FASSET (Financial and Accounting Services) – Tel: 086 101 0001 2. BANKSETA (Banking Sector Education and Training Authority) – Tel: 011 805 9661
Department of Labour – There are 21 SETAs (Sector Education and Training Authority) in South Africa who are concerned with learnerships, internships, unit based skills programmes, and apprenticeships. The functions of SETA’s include: the development and implementation of a sector skills plan, registering and promoting learnerships and applying to SAQA for accreditation as an Education and Training Quality Assurance body (ETQA) for qualifications in its sector. A learnership is a training programme that combines theory at a college or training centre with relevant practice on-the-job. The idea is that people really learn the “in’s and
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Hantam Local Municipality Local Economic Development Strategy 2011 3. CHIETA (Chemical Industries Education and Training Authority) – Tel: 011 726 4026 4. CTFL (Clothing, Textiles, Footwear and Leather Sector Education and Training Authority) – Tel: 031 702 4482 5. CETA (Construction Education and Training Authority) – Tel: 011 265 5900 6. DIDTETA (Diplomacy, Intelligence, Defence and Trade and Industry Sector Education and Training Authority – Tel: 012 663 6983 7. ETDP SETA (Education, Training and Development Practices Sector Education and Training Authority) – Tel: 01 807 5621 8. ESETA (Energy Sector Education and Training Authority) – Tel: 011 689 5300 9. FOODBEV (Food and Beverages Manufacturing Industry Sector Education and Training Authority) – Tel: 011 802 1211 10. FIETA (Forest Industries Sector Education and Training Authority) – Tel: 011 712 0600 11. HWSETA (Health and Welfare Sector Education and Training Authority) – Tel: 011 607 6907 12. ISETT (Information Systems, Electronics and Telecommunications Technologies) – Tel: 011 805 5115 13. INSETA (Insurance Sector Education and Training Authority) – Tel: 011 544 2000 14. LGWSETA (Local Government, Water and Related Services Sector Education and Training Authority) – Tel: 011 456 8579 15. MAPPP (Media, Advertising, Publishing, Printing and
Support Organisations out’s” of an occupation by practising all its aspects under the guidance of an experienced and qualified person. There are incentives to assist in funding learnerships. These take two principal forms: Cash Grants – Employers who pay the skills levy can claim cash grants when they provide training. These grants can be used to offset learnership costs. SETA’s (Sector Education and Training Authorities) may also provide grants for the implementation of learnerships. These learnership grants are “discretionary” so check with your SETA about this grant which can be paid in addition to the levy repayment for drafting and/or implementing a work place skills plan. Tax Incentives – Following the registration of your learnership with a SETA you are eligible to claim a tax incentive from SARS (South African Revenue Service). There are two tax incentives, one at the beginning of teh learnership and one at the successful conclusion of the learnership: o Learners already employed by you – 18(1): Once you have entered into a learnership agreement with a learner and have registered the agreement with a SETA, you may deduct 70% of the annual wages paid to that learner up to a maximum of R17,500.00 during the relevant year of assessment. o Unemployed learners – 18(2): Once you have entered into a learnership agreement with a learner and have registered the agreement with a SETA, you may deduct 100% of the learnership allowance paid to that learner up to a maximum of R25,000.00 during the relevant year of assessment. o On completion of the learnership you can claim again. Your claim can be up to 100% of the annual wage paid to an employee (18.1) or 100% of the allowance paid to an ‘unemployed’ learner (18.2) of up to a maximum of R25,000.00 during the relevant year of assessment.
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations Packaging) – Tel: 021 949 1463 16. MQA (Mining Qualifications Authority) – Tel: 011 630 3500 17. MERSETA (Manufacturing, Engineering and Related Services Education and Training Authority) – Tel: 011 484 9310 18. POSLECSETA (Police, Private Security, Legal and Correctional Services) – Tel: 011 805 0084 19. PAETA (Primary Agriculture Education and Training Authority) – Tel: 012 325 1655 20. PSETA (Public Service Sector Education and Training Authority) – Tel: 012 314 7251 21. SETASA (Secondary Agriculture Sector Education and Training Authority) – Tel: 012 365 2827 22. SERVICES (Services Sector Education and Training Authority) – Tel: 011 715 1800 23. THETA (Tourism and Hospitality Education and Training Authority) – Tel: 011 803 6010 24. TETA (Transport Education and Training Authority) – Tel: 011 781 1280 25. W&RSETA (Wholesale and Retail Sector Education and Training Authority) – Tel: 012 452 9200 NRF Address: Meiring Naudé Road, Brummeria, Pretoria Tel: 012 481 4000 Fax: 012 349-1179 Email:
[email protected] Web: http://www.nrf.ac.za SEDISA
As an independent government agency, the NRF (National Research Foundation) promotes and supports research in all fields of knowledge. The objectives of the NRF includes: Promote & support research through funding, human resource development and the provision of the necessary facilities in order To facilitate the creation of knowledge, innovation and development in all fields of science and technology, including indigenous knowledge To contribute to the improvement of the quality of life of all the people of the Republic SEDISA (Soicio-Economic Development Initiative South Africa) is an organization that
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations Address: Sherbourne Square, 5 Sherbourne Road, facilitates and manages socio-economic development for and on behalf of South African Parktown. businesses. At SEDISA we pride ourselves in or ability to create sustainable access to the Tel: 011 726 3052 economy for those beneficiaries that we assist. Fax: 086 510 5849 The Teacher Enhancement Programme helps South African teachers to obtain the skills Web: http://sedisa.co.za/ necessary to offer the best possible education to students. We help teachers to understand classroom management & OBE and provide resources and support. The School Resource Program provides scarce resources to under-resourced South African Schools. This includes Infrastructure; classroom; student and human resources necessary for schools to provide quality education. Student Support Services provides Student bursaries and loans to historically disadvantaged South Africans in order to make sure that all South Africans have access to tertiary education. Artitisan SA helps historically disadvantaged South Africans to obtain skills and qualifications as Artisans. This provides employment opportunities for beneficiaries and scarce skills for Contributors. NYDA The National Youth Development Agency (NYDA) aims to initiate, facilitate, implement, Address: 1 Church Street, Okiep, Springbok coordinate and monitor youth development interventions aimed at reducing youth Tel: 027 744 1654 unemployment and promoting social cohesion. The mandate of NYDA include: Fax: 027 744 1654 Advance youth development through guidance and support to initiatives across sectors of Web: http://www.nyda.gov.za/ society and spheres of government Embark on initiatives that seek to advance the economic development of young people Develop and coordinate the implementation of the Integrated Youth Development Plan and Strategy for the country. The two documents serve as guiding instruments in advancing youth development at all levels of government The functions of NYDA include: National Youth Service and Social Cohesion Economic Participation Policy, Research and Development Governance, Training and Development © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Clover Mama Afrika Address: 200 Constantia Drive, Constantia Roodepoort. Tel: 011 471 1400 Email:
[email protected] Web: http://www.mama-afrikanews.co.za/
Rally to Read Address: 203 North Ridge Road, Durban Tel: 031 268 9298 Cell: 079 528 6766 Email:
[email protected] Web: http://www.rallytoread.co.za/ Microsoft Citizenship
Support Organisations Youth Advisory and Information Services National Youth Fund The Clover Mama Afrika – Ukwakha Isizwe (Building and nurturing our nation) project is a Kloof, national social upliftment project which seeks to assist and support communities at grassroots level in an enabling and empowering manner so they can help themselves and those around them. The project’s main involvement is with women who look after abused, abandoned, orphaned and HIV/Aids children as well as the elderly. Training and Skills Development: Cooking and Baking Courses Bread Oven Project Sewing Project Food Gardens Quilting Crocheting Workshops Added Value Workshops/Self-Help Projects Vodacom Phone Shops and Mobile Public Phones Save a Child – First Aid Course Basic Finance Management Beadwork Art workshop Flower arrangement The Rally to Read provides rural schools with educational resources. Organisers and participants of the Rally have visited the most remote and needy schools in rural areas to deliver books, teaching aids, science kits, sports equipment, educational toys and other material – all of which are taken for granted at urban schools.
As a global leader in technology, Microsoft has a unique opportunity and responsibility to
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Hantam Local Municipality Local Economic Development Strategy 2011 Address: 3012 William Nicol Drive, Bryanston, Johannesburg. Tel: 011 990 5000 Fax: 011 361 7004 Email:
[email protected] Web: www.microsoft.com/southafrica/citizenship
Khulisa Social Solutions Address: 7th Floor, Rosebank Gardens, 33 Bath Avenue, Rosebank. Tel: 011 788 8237 Fax: 011 788 3353 Email:
[email protected] Web: http://www.khulisa.org.za/ EPWP Northern Cape Dept. of Transport, Roads and Public Works (
[email protected]) Dept. of Economic Affairs, Environmental Affairs & Tourism (
[email protected]) Web: http://www.epwp.gov.za
Support Organisations apply its expertise in helping people. The corporation shares Government’s priorities and supports its efforts to execute plans that will address these priorities. At the same time, they recognise the potential of technology to enable people to 'realise their potential'. Microsoft Citizenship focuses on three key pillars that support addressing South Africa's priorities: Education: Expanding education opportunities through technology and training. This is done by supporting the education system (Grade R-12) with technology software donations, training of teachers and establishing IT Academies. Innovation: Supporting different communities to innovate in the technology sphere. This is done by supporting three innovation centres, together with the Imagine Cup (an annual technology competition for university students), developing Microsoft software in Afrikaans, isi-Zulu, Sesotho sa Leboa, isiXhosa and Setswana, and supporting the local software industry. Skills for Employability: Establish IT training opportunities at various levels (basic digital literacy to certified Microsoft engineers) and work with partners and others to support employment of the trainees. One of Khulisa’s fundamental values/strategies is to view all compatible stakeholders as partners in achieving a greater impact through increased service delivery. In the areas where we operate all local resources are included in the implementation process. Khulisa works in diverse environments ranging from prisons and schools to large-scale projects that we engage with using a systemic approach. This enables different role-players to work effectively and collaboratively. Our services include the design and development of learning programs, diversion programs, remediation and learning processes. The Expanded Public Works Programme (EPWP) is one of government arrays of programmes aimed at providing poverty and income relief through temporary work for the unemployed to carry out socially useful activities. The EPWP involves creating temporary work opportunities for the unemployed, using public sector expenditure. It builds on existing best-practice government infrastructure and social programmes either by deepening their labour absorption or extending them. All of the work opportunities generated by the EPWP are therefore combined with training, education or skills development, with the aim of increasing the ability of people to earn an income once they leave the programme. The following sectors
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations are focused on: infrastructure; environment; social; and economic. SAAA SAAA (South African Agri Academy) is a Section 21 company providing market information, Tel: 021 880 1275 training and business advice/coaching and strategic market linkages to the emerging farmers Website: http://www.agriacademy.co.za/ in the agricultural sector. SAAA’s core business is focused on the commercialization of the new SME farmer sector (as beneficiaries of the LRAD programme). These new entrants do have an existing product but they do lack the business, marketing, financial and management expertise as well as access to markets. Training and business advice is based on all the components of a market driven value chain. Sustainable market access is the measurable outcome of such interventions through training, business coaching and strategic linkages. CSIR The CSIR (Council for Scientific and Industrial Research) is one of the leading scientific and Address: Meiring Naudé Road, Brummeria, Pretoria technology research, development and implementation organisations in Africa. The CSIR Tel: 012 841 2911 undertakes directed and multidisciplinary research, technological innovation as well as Fax: 012 349 1153 industrial and scientific development to improve the quality of life of the country’s people and Email:
[email protected] to improve national competitiveness in the global economy. Science and technology services Web: http://www.csir.co.za/ and solutions are provided in support of various stakeholders, and opportunities are identified where new technologies can be further developed and exploited in the private and public sectors for commercial and social benefit. Red Door The Red Door (Real Enterprise Development Initiative) is an initiative of the Enterprise Address: 6th Floor, Waldorf Building, 80 St George's Mall, Development sub-directorate within the Department of Economic Development and Tourism. Cape Town The sub-directorate aims to promote the development of small and/or black-owned Tel: 021 483 2628 enterprises. The RED Door is a one-stop shop for new and existing businesses looking for help Fax: 021 483 4892 and advice, from the most basic to the most sophisticated. Red Door helps businesses: (1) Web: http://www.capegateway.gov.za/reddoor write a business plan; (2) identify and fix the weak points in your business; (3) find access to finance; (4) get affordable support from our network of business service providers; (5) find accountants and lawyers; (6) improve your business skills; (7) learn how to apply for and win government tenders; (8) find out about government incentives; (9) find out about client relations, marketing and research; and (10) learn about how to import and export. Agricultural Support © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations CASP The aim of CASP (Comprehensive Agricultural Support Programme) is to provide postAddress: Department of Agriculture, Private Bag x250, settlement support to the targeted beneficiaries of land reform and to other producers who Pretoria, 0001 have acquired land through private means and are, for example, engaged in value-adding Tel: 012 319 7553 enterprises domestically or involved in export. The programme will make interventions in six Web: http://www.nda.agric.za/docs/CASP/casp.htm priority areas: Information and technology management Technical and advisory assistance, and regulatory services Marketing and business development Training and capacity building On/off farm infrastructure and product inputs Financial support Beneficiaries include: the hungry, subsistence and household food producers, farmers, & agricultural macro-systems within the consumer environment. Objectives and allocation criteria for the CASP grant include: Community involvement and ownership Target beneficiaries should be from the previously disadvantaged group Enhances national and household food security One-off grant and not committing the Government to any form of direct recurrent operational or maintenance projects grants Long-term sustainability and economic viability Project finance support will only be provided for agricultural activities having the required level of institutional and technical support Projects that will generate employment opportunities should be given priority LRAD The LRAD (Land Redistribution for Agricultural Development) is designed to provide grants to Tel: National – 012 319 7654 or Northern Cape – 053 831 black South African citizens to access land specifically for agricultural purposes. The objectives 4090 of the Programme include: Web: http://www.services.gov.za Helping previously disadvantaged people in rural areas to improve their living standard, by enabling them to run their own large or small farms effectively Broadening the opportunities available to young people who live in rural areas Stimulating agricultural production – which will be to the benefit of the entire country. © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations The applicant identifies the land he/she wishes to buy. Alternatively, the applicant might already have access to land, such as communal land or land belonging to Amakhosi. The size of the grant is intended to help applicants with small resources to become farmers. If the applicant can afford to make a bigger input to buy a larger piece of land, the proportional size of the grant in relation to his/her input will be smaller than that provided to help the less welloff person. People who already live on agricultural land in communal areas, and who need a grant only to develop the land (not to buy it), may also apply for an LRAD grant. Small farmers may apply in groups for grants for the purpose of buying agricultural land. Land Care Programme Land Care is a community-based & government supported approach to the sustainable Tel: National – 012 319 7553/7685 or Northern Cape – management and use of natural agricultural resources. The goal of the National Land Care 049 842 1113 (Ext. 2320) Programme is to develop and implement integrated approaches to natural resource Web: http://www.agrinc.gov.za/ & management in South Africa, which are efficient, sustainable, equiTable, and consistent with http://www.daff.gov.za/ the principles of ecologically sustainable development. LandCare provides an umbrella for coordinated and co-operative actions to improve land management across the broader community. Local government has a role through: Assisting information exchange and with the co-ordination of community activities Acting as a community advocate Providing resources to help local groups Developing and applying local conservation strategies’ Exercising statutory planning responsibilities. In summary, LandCare South Africa is a community-based programme supported by both the public and private sector through a series of partnerships. SPP Surplus People Project (SPP) advocates for pro poor agrarian reform and food sovereignty. We Address: Unit B102, Hopley Centre, Cnr Van Riebeeck & believe that the rural economy can be transformed through land, water and agricultural Van Der Stel Streets, Sprinbok. reform. SPP support and build grassroots organisations & movements of small-scale farmers, Tel: 0277 181370 farm dwellers and women in the Western and Northern Cape, through a process of political Fax: 0277 181302 education, social mobilisation, institutional and agricultural development and research. SPP Email:
[email protected] programmes include: Web: http://www.spp.org.za Agrarian reform for food sovereignty (which includes a small scale farmer programme & a © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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MAFISA Tel: 053 838 9100 Fax: 053 838 9169 Email:
[email protected] Web: http://www.agrinc.gov.za
Support Organisations farm dweller programme) Agro-ecological farming (which includes workshops, training, methods & practices, & horizontal learning exchanges) Research & information (research that would assist in and complement popular education and information needs of communities) Advocacy & lobbying (contribute towards the development of an alternative pro poor agrarian policy framework and support the awareness raising of the landless men and women) The Micro Agricultural Finance Institute of South Africa (MAFISA) will contribute to assisting the working poor to run existing agricultural businesses, starting new agricultural businesses and be able to develop these into fully commercial operations. The Scheme does not cover all fields of intervention and cannot be mechanically applied. It needs to be adapted to the socioeconomic setting of each area and leave room for financial innovations beyond the scope of this Scheme. Government’s desire to establish MAFISA is driven by the following policy objectives: To re-establish an agricultural credit scheme through the department of agriculture targeting the micro and small agricultural and related business To provide capital to increase agricultural and other forms of related activities Government set up MAFISA to drive and facilitate the development of financial services, which will contribute to develop very small and micro level farmers, farm workers, farm tenant, small landholder, landless, emerging farmers, processors, micro-entrepreneurs, and the working poor. The people who could qualify for MAFISA financial assistance must: Be active within the agricultural sector, whether it be in the rural or peri-urban areas Be able to embark on self-help initiatives to: (i) improve their livelihoods, (ii) reduce poverty, (iii) develop viable businesses, and (iv) show potential to graduate into larger commercial businesses Be able and willing to repay the money they borrow Farmer businesses, which qualify, will be able to borrow up to R100 000, at an affordable rate. Application forms are available at the Land Bank and local Provincial Department of
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations Agriculture. CRLS The Centre for Rural Legal Studies (CRLS) is committed to the redistribution of power and Address: 39 George Blake Avenue, Plankenbrug, resources in rural areas of the Western, Northern and Eastern Cape provinces of South Africa. Stellenbosch. The CRLS has developed considerable expertise in training, research and advocacy in the land Tel: 021 883 8032/3 and labour sectors with a specific gender emphasis. The CRLS promotes the land and labour Fax: 021 886 5076 interests of men and women farm workers through: Email:
[email protected] Training courses (includes: employment equity; basic conditions of employment for farm Web: http://www.crls.org.za/ workers; understanding unfair labour practices; HIV/AIDS in the workplace; training rural legal literacy trainers; alternative dispute resolution skills; training for community researchers; & organisational rights skills training) Information dissemination (information on legislation and policies related to the agricultural labour and land sector) Research (in development facilitation, advocacy and training and information dissemination programmes) Advocacy (in gender equity, employment conditions, land rights, enforcement of legislation, housing) Legal intervention (legal advice & support services) Development facilitation (facilitating development processes that typically occur on farms) Household Food Production, Food Security and Starter This is an intergovernmental project aimed at providing interim relief measures to households Packs and beneficiaries severely affected by food insecurity and the price escalation of basic food Tel: (012) 319 6736/6741/7950/6692 items by providing agricultural input and equipment for own food production. Web: http://www.info.gov.za The programme: Provides agricultural input and equipment to the existing food security campaign and Special Programme for Food Security Projects (SPFS) and the National Food Emergency Scheme (NFES) beneficiaries Encourages household food production through improvement of crop intensification, diversification, adoption of simple and affordable technologies Promotes home (backyard mix farming) and where appropriate, school gardens and urban © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations agriculture, using sustainable technologies and encouraging the sustainable utilisation of unused or underutilised resources. The project is mainly targeted at groups or individuals in rural and urban areas. RMAA The RMAA (Red Meat Abattoir Association) is a representative forum for abattoir owners in Address: CSIR, Meiring Naude Road, Brummeria, Building South Africa. RMMA serve abattoir owners by: 4, Room 179. Providing specialised training and technical support, Tel: 012 349 1237/8/9 Distributing relevant information and Fax: 012 349 1240 Representing owner’s interest to secure standards of meat safety and quality to the Email:
[email protected] benefit of the red meat industry and the consumer Email:
[email protected] Training programmes include: routine training; alternative training; correction of slaughter Web: http://www.rmaa.co.za/ methods; starting-up of new abattoirs; operational investigations; hygiene management; good manufacturing practices & hazard analysis critical control point; & hygiene awareness. Training courses need to be paid for. Regional workshops will be held in the Northern Cape on 9 September 2011. SAPPO The South African Pork Producers’ Organisation (SAPPO) is the mouthpiece of commercial Address: P.O. Box 36207, Menlo Park. pork producers in South Africa. The organisation serves the South African pork producer by Tel: 012 361 3920 co-operating within the organised agricultural fraternity and by liaising with various sectoral Fax: 012 361 4069 organisations, role-players within the supply chain of the meat industry, the government and Email:
[email protected] international interest groups. SAPPO’s developing programme for new producers mainly Web: http://www.sapork.com/ focuses on training, which takes place on developing pig units, at farmers’ days and by means of study groups among developing farmers. Farmers who are on the brink of becoming commercial producers receive intensive mentorship that mainly takes place at pig units. Those already farming commercially receive regular and more focused attention. Provincial pig veterinarians, who keep a close watch on the disease status of the units, regularly visit them. SAPPO pays for these veterinarian visits. Department of Agriculture, Fisheries & Forestry Department of Agriculture, Fisheries & Forestry – will soon be launching a call-centre where Agriculture, Land Reform and Rural Development, people with an interest in becoming commercial farmers can get useful information, including Northern Cape how to access finance. George Street, Themor House, Kimberley Tel: 053 838 9158 © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations Fax: 053 832 4328 Email:
[email protected] Web: http://www.agrinc.gov.za ARC Address: 1134 Park Street, Hatfield, Pretoria Tel: 012 427 9700 Fax: 012 342 3948 Web: http://www.arc.agric.za
The objective of the ARC (Agricultural Research Council) is the conducting of research, development & technology transfer in order to: Promote agriculture & industry Contribute to better quality of life Facilitate/ensure natural resource conservation This function is carried out through 11 research institutes whose activities are grouped under five divisions: Field Crops (Grain and Industrial Crops), Horticulture, Animal Production and Health, Natural Resources and Engineering as well as Technology Transfer. The ARC is also responsible for maintaining national assets and undertaking programmes or rendering services that are required from time to time by the department and other stakeholders. RUDNET RUDNET (Rural Development Network) is a network of non-governmental organizations Address: Room 201, Libri Business Centre, Libri Avenue, (NGO’s) committed to enhancing the quality of life of farm-working communities through the Somerset West. provision of a cohesive and sustainable programme of integrated and quality development Tel: 021 8500 790 services. RUDNET was established to address, among others, the following problems: Fax: 021 8500 791 Farm workers are a marginalized group whose needs have been overlooked Email:
[email protected] 71% of people in rural areas live below the poverty line; Social conditions are poor including alcoholism, limited education, poor health (HIV/AIDS, TB) The threat that conditions poses to the Wine Industry and agricultural sector in general if these conditions and problems are not addressed. RUDNET aims to alleviate these problems by positioning a network of NGO’s that will work together ensuring no duplication of work. Funding is acquired through the PAWC. RUDNET operates within the Western Cape but they aim to establish a branch within the Northern Cape. SAMSA South African Marine Safety Authority’s (SAMSA) objective is to lead and champion South Port Nolloth (Atlantic Ocean Port) Africa’s maritime interests as custodians and stewards of maritime policy, vigorous promoters © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Old Post Office Building, Kus Road, Port Nolloth. Tel: 027 851 7695 Fax: 027 851 7699 Web: www.samsa.org.za
Support Organisations of the maritime sector and giving full and complete effect to our obligations for the benefit of all stakeholders. Services on behalf of Government include: (1) advice to the Minister of Transport on maritime issues affecting South Africa; (2) maintenance and proposals on legislation and policy; (3) liaison with other governments and international institutions on behalf of Government; (4) liaison with other state departments and South African institutions on behalf of the Minister of Transport; (5) flag State Implementation; (6) providing a maritime Search and Rescue (SAR) capability in the South African area of responsibility through the management, on behalf of the DOT, of the Maritime Rescue Coordination Centre (MRCC); (7) Port State control; (8) accident investigations and Emergency Casualty Response; (9) administration of government maritime contracts; (10) management of the DOT contracted pollution prevention and response capability; and (11) representation at international forums. Technical services to the maritime Industry, locally and abroad include: Statutory surveys and Safety certification of ships Certification of Seafarers Assistance and advice on maritime legislation Advice and approval for the construction and refitting of vessels Evaluation and approval of fittings and equipment used in the construction and fitting out of vessels Consultancy to industry on technical matters, safety and qualifications Services to stakeholders include: Safety equipment approval Port State Control Inspections Inspections of ships and cargoes of timber, grain and hazardous goods Accreditation of maritime training institutions and maritime training programmes Examination of Seafarers Monitoring of South African seafarers’ welfare and conditions of service Registration of Ships Provision of maritime safety information to shipping Ensuring a reliable radio service to shipping in respect of maritime safety information Casualty investigation and management
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Support Organisations Oil pollution incident response and investigations Ensuring that navigational aids are in place around the South African coastline Maintenance of a maritime Search and Rescue organisation in co-operation with the Department of Transport Promoting seafarer training in South Africa Collection and maintenance of shipping information and statistics Pro-active development and promotion of maritime safety in South Africa’s territorial waters Mining Development
DMR Tel: (027) 712 8160 Fax: (027) 712 1959 Email:
[email protected]
The Department of Mineral Resources deems the role of small-scale mining in community upliftment, job creation and poverty alleviation as critical. The small-scale mining sector is faced with many challenges such as lack of access to finance and markets, shortage of skills and inadequate or non-compliance with regulatory requirements, all of which the Department of Mineral Resources is working towards addressing. The small-scale mining sector has historically mainly comprised alluvial diamond and in-land salt mining, but lately the bulk of the demand for small-scale mining ventures is associated with industrial commodities, such as slate, sand, clay, sandstone, dolerite and granites for the production of infrastructural development products such as tiles, clay and cement bricks, aggregates and dimension stone for cladding. The department assists aspiring small-scale miners in: • establishing legal entities • guiding towards the identification of mineral deposits • doing environmental impact assessments, and feasibility and market studies • legal and contractual arrangements and mineral rights • developing mining equipment.
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Mintek’s Small Scale Mining (SSM) Division Manager Small-Scale Mining and Beneficiation Division: Tel +27 11 709 4942, Fax +27 11 709 4581, Email:
[email protected]
Support Organisations The Small-Scale Mining Board has been set up as a point of delivery for the services required by the small-scale mining sector. It coordinates a substantial amount of expert capacity and experience and specialises in planning and developing a viable mining project through prefeasibility stages. Mintek’s Small Scale Mining (SSM) Division was established with the aim of assisting entrepreneurs to apply for mining licences, conducting the test work required to draw up feasibility studies, and in some cases commissioning their plants for value-adding operations. The overall purpose is to assist artisanal and small-scale miners (ASSMs) to operate more efficiently and economically, to ensure sustainability, and to improve the informal and environmentally unsound practices that prevail in this sector. Tourism Development
The Department of Economic Affairs and Tourism in the Northern Cape Tel: (053) 839 4015 Fax: (053) 831 3668
The Department of Economic Affairs and Tourism in the Northern Cape offers: Encourage the start-up of new ventures by marketing the services offered by the department Facilitate exposure to tourism SMMEs at national and international tourism exhibitions SMME are also referred to other relevant institution by making contact on their behalf and assist in ensuring that the relevant information is disseminated to SMMEs Market of their products and services within the overall marketing plan of the Province and major activities like the Northern Cape Expo which is held annually To ensure that SMMEs participate in all services offered by National Government, e.g. the TEP programme The local business service centre assists SMMEs with the drawing up business plans Mentorship is given to SMMEs to ensure that their businesses succeed
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TEP Address: 543 Voortrekker Street, Springbok Tel: 027 712 1687 Fax: 027 712 1685 Email:
[email protected] Web: http://www.tep.co.za
Support Organisations General advice on the business selection and feasibility TEP (Tourism Enterprise Partnership) offers a portfolio of services and solutions for small tourism businesses, Corporate South Africa, Government institutions as well as local and international tourists. TEP's role in the tourism industry becomes more clearly defined as a necessary and active participant in the tourism service chain. It develops people (skills) and products (quality and diversity), in a combined format, for the purpose of creating an 'alternative face' to the traditional tourism experience of South Africa. Exposing this undiscovered element of South Africa brings these products, a combination of room inventory and rich heritage experiences that are lying dormant and under-utilised, into the mainstream of tourism. TEP offers the following services: Small tourism business development Tourism skills development Enterprise development portfolio South African hidden treasures Research SMME Development
SEDA Namakwa Branch Address: 8922 Voortrekker Rd, Springbok Tel: 082 883 8560 Email:
[email protected] Web: http://www.seda.org.za/
SEDA (Small Enterprise Development Agency) supports and promotes co-operative enterprises, particularly those located in rural areas. The work of SEDA is carried out in line with the Department of Trade and Industry's Integrated Small Enterprise Development Strategy, which aims to: Strengthen support for SMMEs' access to finance Create an enabling regulatory environment Expand market opportunities for specific categories of small enterprises Localise small business support through a grid of seda-coordinated information and advice access points Initiate a national entrepreneurship drive and expand education and training for small business
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations Co-fund minimum business infrastructure facilities in local authority areas across the country The core of SEDA’s clients are predominantly start-ups or survivalist entrepreneurs. SEDA offers non-financial assistance to SMME’s with the emphasis on assisting people at grass root level. Aurik Business Incubator Supporting emerging entrepreneurs with sound business skills to develop their businesses Address: 3rd Floor, 132 Jan Smuts Avenue, Rosebank, into sTable, sustainable SME’s as well promoting entrepreneurship on a mass scale are key Johannesburg priorities of national importance. The Aurik Incubator will develop crucial business skills to Tel: +27 (0)11 447 5575 identified entrepreneurs, thereby increasing the success of government initiatives to build Fax: 086-517-7809 sustainable SMEs. Email:
[email protected] Web: http://www.aurik.co.za/ Nedbank The group’s qualifying Enterprise Development contributions include: Address: 21 Schodder Street, Upington Grant contributions, which comprise overhead costs (salaries, direct costs incurred in Tel: 054 3384400 supporting ED and other direct costs incurred, such as the Small Business Services free Fax: 054 3384437 banking seminars). Email:
[email protected] Loans and related contributions in the form of black EME and QSE loans from Nedbank Web: http://www.nedbank.co.za Business Banking and Nedbank Retail, and standard loans to other beneficiary entities, such as agriculture financing. Contributions made towards human resource capacity building, such as the free service that Nedbank Small Business Services consultants provide for QSEs. Shorter payment periods in procurement. Siyakha Consulting Siyakha works closely with the private and public sector in managing and developing Address: 337 Bryanston Drive, Bryanston Enterprise Development initiatives across the regions to support and develop emerging, Tel: 011 706 9006 qualifying black-owned enterprises. Each business is given support, guidance, training and Web: http://www.siyakha.co.za/ development to enhance the business itself, the sustainability of the entity in the future and the opportunities for the individuals involved to support their ongoing development. Entrepreneurial Training: Siyakha’s Entrepreneurial Training Programme is a 5 day intensive workshop that is provisionally accredited by the Services SETA. Mentorship and Incubator Assistance Individuals have access to a team of specialists to support them whilst they © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations establish their business initiative. Standard Bank Enterprise Development Unit Standard Bank South Africa has established an Enterprise Development team to support small Address: 9th Floor, Standard Bank Centre, 5 Simmonds enterprises. This team reviews the bank’s existing offerings to small and medium enterprises Street, Johannesburg. (SMEs) and provides new and supportive services to meet the needs of this market. This Tel: 011 299 4701 includes leveraged finance, contract finance and franchising; business advice seminars, Email:
[email protected] research sponsorships and customer guides. Web: http://www.standardbank.com/ Identity Development Fund Managers (Pty) Limited IDF is targeted solely at black-owned businesses, with an emphasis on businesses based in Address: 22 Oxford Road, 1st Floor Etana House, Hollard rural and peri-urban areas, as well as enterprises owned by youth and women. Their services campus, Parktown. include: Tel: 011 351 2900/2910 Management of funds aimed at SME investment and development; Fax: 011 351 8091 Advisory services for management of existing SME investment portfolios; and Email:
[email protected] Advisory services on strategy and implementation of new projects aimed at investment in Web: www.idf.co.za and development of SMEs. Business training On-going business advisory services Coaching and mentorship Technical support Market access FABCOS FABCOS (The Foundation for African Business and Consumer Services) is a membership-based Address: Gleetway House, 6th Floor, Cnr. Martin organization promoting the development of Black business in South Africa. FABCOS has Hammerschlag Way & Cross Street, Foreshore, Cape Town established offices in all nine provinces and they actively participate in formal business and Tel: 021 421 0157 governmental initiatives, campaigning for the continual improvement of South Africa’s socioWeb: www.fabcos.co.za economic climate for the benefit of its members. As one of only four national business chambers, FABCOS actively lobbies and creates new growth opportunities for its members and businesses through their participation in the national associations it has established in nine business sectors. Anglo American SME Fund Anglo American Zimele – Anglo American’s enterprise development and investment fund – Address: P.O. Box 61587, Marshalltown, Johannesburg. creates and develops commercially viable and sustainable small and medium enterprises Tel: 011 638 4172 (SMEs) by providing empowerment opportunities for previously disadvantaged South © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Fax: 011 638 5321 Email:
[email protected] Web: http://www.angloamerican.co.za/ Telephone numbers: Supply Chain Fund: 011 638 5520 Khula Mining Fund: 011 638 3716 Communities Fund: 011 638 2749 Olwazini Fund: 011 638 2621
SBP Address: 79 Oxford Road, Saxonwold, Johannesburg Tel: 011 486 0797 Fax: 011 486 0810 Email:
[email protected] Web: http://www.sbp.org.za/
Support Organisations Africans. Over the past 20 years, the initiative has become a catalyst for emerging black business, with the knock-on effect being sustainable job creation and socio-economic development in predominantly rural and peri-urban mining communities. Through Anglo American Zimele, four funds are operated: The Supply Chain Fund focuses on procurement and business development opportunities for black-owned and managed SMEs within our supply chain. The Anglo American Khula Mining Fund manages mining-related investments as a joint initiative with Khula Enterprise Finance Limited, a government-owned entity that promotes SME development. The Communities Fund supports entrepreneurs and small businesses in the communities in which we operate. This is achieved by means of loan finance and hands-on guidance and support from our network of Small Business Hubs. The Olwazini Fund is designed to assist women, the disabled and young people to establish and run their own small businesses in our mining communities. Entrepreneurs undergo skills training prior to establishing their enterprises. SBP (Small Business Project) is focused on promoting a policy, regulatory and operating environment that supports business growth. We also design and implement business development solutions. In this context we have a wealth of experience in facilitating strategic partnerships. SBP works with a wide range of partners and clients, from large corporates to small businesses, organised business associations, national governments and government agencies, and international donor agencies. SBP’s work covers a number of distinct but interrelated areas: Baseline research and intelligence Better regulation projects - our 'cutting red tape' projects and regulatory impact assessment Enabling environments for business including design of the Investment Climate Facility for Africa (ICF) Enterprise development business linkages and SME development
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Support Organisations Programme evaluations and impact assessments Renewable Energy
EDC Telephone +27 10 201 4700 Fax: +27 10 201-4820 Email:
[email protected] Web: http://www.cef.org.za/
The Energy Development Corporation (EDC) a division of State-owned Central Energy Fund (CEF) which is controlled by the Minister of Minerals and Energy. The focus of this division is to invest in renewable energy and alternate energy fields. The EDC supports energy development through commercial, developmental and social projects. EDC focuses on a number of areas including solar energy, wind energy, hydro energy, biomass, biogas and low-smoke fuels. It supports energy development through commercial, developmental and social projects. EDC supports the development of an energy economy in which modern renewable energy provides affordable access to energy, thus contributing to sustainable development and environmental conservation. EDC providing equity funding for commercial projects and development funding for developmental and social projects.
These organisations below will help SMMEs but the Municipality will need to help market their SMMEs to these organisations so that these organisations will partner them with investors Edge Growth Address: 3rd Floor, 82 Grayton Drive, Sandton Tel: 011 292 7974 Fax: 2711 292 7911 Email:
[email protected] Web: http://www.edgegrowth.com
Edge Growth provides corporate investors with a number of products to enable effective and impactful use of their ED Spend. Our solutions are tailored to our client’s unique needs and requirements, ensuring the greatest possible return on their ED spend (social returns, BEE points and financial returns). Services include: Vumela Enterprise Development Fund Solution (includes strategy design, selection & structuring SMME investments, SMME growth support, & ogoing SMME portfolio management) ED Strategy Design & Management (includes design of ED/PP strategy & organizational model & implementation & ongoing management of strategy)
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations SMME Growth Supoort (includes sourcing of high potential deals; structuring of SMME investments; provision of SMME support services; & ongoing monitoring & management of SMMEs) The Hope Factory The mission of The Hope Factory is to create opportunities for people from previously Tel: 011 621 6643 disadvantaged communities to be trained in business, technical and life skills, to gain practical Email:
[email protected] experience and to be financially productive. To provide training in: Web: http://www.thehopefactory.co.za Small Business & Entrepreneurial Skills Technical skills including sewing and patternmaking, basic beadwork, paper product manufacturing, and crocheting Life Skills (including HIV/AIDS, Time Management, Presentation, CV Writing). Once the learners have graduated, they can choose to start their own business, seek formal sector employment, or join The Hope Factory's Job Creation Project. Within this job creation project, graduates manufacture a wide range of beautiful, handmade corporate gifts and conference materials. Tshikululu Social Investments Tshikululu Social Investments is a bridge between the interests of corporate clients who are Address: Block B, Metropolitan Office Park, 8 Hillside committed to community grantmaking, and the realities found at the heart of development. Road, Parktown. Tshikululu advises, creates, implements and manages all-in-one corporate social investment Tel: 011 544 0300 solutions. Fax: 011 484 5997 Web: http://www.tshikululu.org.za/ Marketing TradeInvestSA The TradeInvestSA website was launched in 2007, offering investors and business people free Address: 3rd Floor, SunClare Building, 21 Dreyer Street, access to specific investment and trade opportunities in South Africa. The fully searchable Claremont, Cape Town database enables users to quickly access opportunities relevant to their sector or region. The Tel: 021 657 6200 TradeInvestSA newsletter is distributed monthly via email to a targeted database of over Website: www.tradeinvestsa.co.za 50,000 recipients in South Africa and internationally. The newsletter highlights on a monthly basis the key opportunities, investment features and information, and news updates, and in so doing serves to drive potential investment and trading partners. © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 TISA Tel: 0861 843 384 Website: www.thedti.gov.za
Support Organisations TISA (Trade and Investment South Africa) works under the umbrella of the DTI and provides investment facilitation services for inbound investors. TISA focuses on promoting sectors of the South African economy that show the biggest growth potential and marketability, and coordinates provincial initiatives to match investors’ requirements with opportunities in the provinces. TISA has three business units, namely: Investment Promotion and Facilitation Export Development and Promotion International co-operation Other
LASS Department of Rural Development and Land Reform Tel: 0800 0070 95 Web: http://agritv.co.za/
The objective of the Land Acquisition for Sustainable Settlements (LASS) is two-fold: Commonages for Agricultural Development: to enable municipalities to acquire land to extend or create a commonage for the purpose of establishing schemes involving the productive use of the land resources Urban Settlements: to enable municipalities to acquire land for residential development but within the confines of the resources allocated to the Department and the conditions set by the Department The LASS grant that can be made available to municipalities that have a dire need for land for settlement purposes. The LASS approach calls for Municipalities to actively identify the settlement needs in their communities before approaching the DRDLR for funding for land acquisition.
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Hantam Local Municipality Local Economic Development Strategy 2011 NDPG Address: National Treasury Tel: 012 315 5459 Fax: 012 315 5779 Email:
[email protected] Web: http://ndp.treasury.gov.za/
Support Organisations The Neighbourhood Development Partnership Grant (NDPG) is tasked with supporting economic development and quality of life improvements in targeted townships. The NDP uses two tools to do this: The Technical Assistance (TA) fund intended for strategic and project planning and a Capital Grant (CG) for investment into catalytic township projects. A knowledge sharing and learning function aimed at (i) providing peer-learning opportunities for all municipal officials involved in townships renewal; (ii) facilitating more credible and indepth practical research on townships; and (iii) deepening and broadening the skills of township development practitioners. Typical projects are nodal and precinct developments; linkage projects and general improvement initiatives. In general, NDP funds interventions that are within municipal mandate or directive, therefore speeding up delivery. NDPG does not fund private sector developments, but provides foundations or preconditions for these to occur.
The Arid Areas Programme The programme focuses on socio-economic development in the arid areas of the Western Centre for Development Support Cape, the Northern Cape, the Eastern Cape, and the Free State. It is totally interdisciplinary, University of the Free State including economics, sociology, politics, demographics, urban planning, and agriculture. The Bloemfontein programme creates a space for academic research and unpublished consultancy work (“grey Tel: 051 401 9111 research”) to interact. The programme actively promotes the dissemination of information, by Email:
[email protected] means of a website, as well as focus groups and workshops. Web: http://www.aridareas.co.za CRDP The CRDP (Comprehensive Rural Development Programme) is focused on enabling rural Address: Northern Cape Provincial Land Reform Office, people to take control of their destiny, with the support from government, and thereby George Street, Themor House, Kimberley. dealing effectively with rural poverty through the optimal use and management of natural Tel: 053 838 9100 resources. This will be achieved through a co-ordinated and integrated broadbased agrarian Fax: 053 838 9169 transformation as well as the strategic investment in economic and social infrastructure that Email:
[email protected] will benefit the entire rural communities. The three pronged strategy includes: Web: http://www.agrinc.gov.za/ Agrarian transformation Rural development © 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
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Hantam Local Municipality Local Economic Development Strategy 2011 Support Organisations Land reform In 2011 there were 9 pilot sites, spanning 21 wards in South Africa. The Namakwa District is not included here but it may be in the future.
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