Ortdm Gds Profile
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c o n t e n t s
I N T R OD U C T I O N . . . . . . . . . . . . . . . . 4
O B J EC T I V E S O F T H E S U M M I T . . . . . . . . . 5
B A C K GR O U ND . . . . . . . . . . . . . . . . . 6
M E T HO D O L OG Y . . . . . . . . . . . . . . . . 6
D I S T R I C T S N A P S HO T . . . . . . . . . . . . . . 7
D E L I V E R Y O F B A S I C S E R V I C E S . . . . . . . . 1 0 Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Sanita tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Electr icity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
I M P R O V E P U B L I C S E R V I C E S . . . . . . . . . 2 0
Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
HIV & AIDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Skills Upgrading . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
J O B C R E A T I O N A N D
L I V E L I H O O D O P P OR T U N I T I E S . . . . . . . . 2 8
Livestock Farming . . . . . . . . . . . . . . . . . . . . . . . . 29
Dryland Farming and Irrigated Horticulture . . 29
Forestr y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Manufac turing . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Construction And Mining . . . . . . . . . . . . . . . . . . 31
Trade and Business Services/ic t . . . . . . . . . . . . . 31
Tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
B U I L D A N D M A I N T A I N I N F R A S T R U C T U R E . . 3 2
Strategic Infrastructure Project:
Kei Development Corr idor . . . . . . . . . . . . . . . . 37
F I G H T P O V E R T Y . . . . . . . . . . . . . . . 4 0
M U N I C I P A L C A P A C I T Y A ND C O O P E R A T I O N . . 4 1
C O N C L U S I O N . . . . . . . . . . . . . . . . . 4 4
A C R O N Y M S . . . . . . . . . . . . . . . . . . 4 6
G D S AG R E E M EN T . . . . . . . . . . . . . . 4 8
3
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4
Building on the results of the National Growth and
Development Summit in June 2003, government
proposed that all District and Metropolitan Mu-
nicipalities hold Growth and Development Summits
(GDS) in their area of jurisdiction.
The summits should provide oppor tunities forbuilding partner ships with social partners by bringing
together represent ati ves from the broadest sec tions
of society: labour, business, community sector and
government (local, Province and national).
I N T R O D U C T I O N Government has identied distric t and metropolitan
areas as the pivotal sites on which to build an
understanding of the nature and distribution of
regional economic potential across the country.
Collaborative action between government and
social partners across all the three spheres is vital inforging a common vision for promoting rising levels
of growth, investment, job creation, and people-
centred development.
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The aim of the GDS is to reach broad agreement on:
A development path and development programme
for the district and
What each social partner (government, business,
labour and community sector) should contribute to
the implementation of the programme.
Strengthening the strategic thrust of the district IDPto ensure planning and implementation ali gnment
between the spheres of government, as well as
public entities
In this regard the GDS should seek to address the
following specic questions and issues:
1. The OR Tambo Distric ts economic potential and
which sectors of the economy should be promoted
(this would need, where applicable, to be informed
by the IDP, LED and the RIDS)
2. Commitments by government, business, labour
and community sector to ensure investment in
each of the sectors
3. Actions required by government and each partner
to deal with const ra int s to such inves tments,
including dealing with bureaucratic delays, EIA
processes and land use management
4. Social and economic infrastructure programmes
required to improve investments and provide basic
services to communities
O B J E C T I V E S O F T H E S U M M I T 5. Contribution by each partner to the construction
of such infrastructure, including possibility of PPP
6. Second Economy interventions (EPWP including
roads & ECD, co-operatives, micro-credit,
procurement, land reform, etc) and the role of
each sector in such interventions
7. Promoting local procurement what interven-
tions are requir ed?
8. Improving capacity of local government and
contribution of each social partner: including role
of public sector unions in ensuring efciency, role
of all in ghting corruption, contribution by private
sector and professionals to skills required by the
district/metro
9. Establishing a partnerships and/or regional growth
coalitions which will act as a mechanism for coop-
erative action at all levels and a robust framework
for monitoring and evaluating progress
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6
The document presents the socio-economic
dynamics of the OR Tambo District Municipality.
It is a resultant of a consultative process involving
a number of stakeholders and interest parties
within the district. The stakeholders were required
to compile the ir respec tive interpretations of
the economic conditions and soc ial elementsof the district, and an attempt has been made
at synchronising, aligning and harmonising their
inputs.
In this compilation, the information presented is an
effort to achieve the following objectives:
To ensure that discussion on the above issues takes
place on an informed basis
To present a coherent picture of the social, demo-
graphic, and economic prole and service levels of
the area
To present a picture of the challenges facing local
government especially in relation to capacity
To sugges t the mechanisms & processes for moni-
tor ing progress on the dec isions reached and the
governance framework for ongoing dialogue and
feedback among social partners.
The district GDS presents a unique opportunity
for constructing partnerships and harnessing the
collective energies and contributions of a range of
actors and role players with a view to enhancing
accelerated and shared growth.
The district GDS has the potential to unlock the
potential of all localities, and ensur e that all sectors
of society identif y their role and contribute to the
common national objective to build a better life
for all.
This prole for OR Tambo is based on a number of
documents and information from a range of sources.
These broadly include the following:
ECSECC data, publications and reports
Monitor Group report
District and local municipal IDPs (& other ofcial
documents)
Data from the Rapid Assessment of services in the
Eastern Cape conducted in 2006)
Various research reports
B A C K G R O U N D
M E T H O D O L O G Y
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The OR Tambo Distr ict stretches from the Indian
Ocean coastline in the southeast (the Wild Coast)
to the Mah lah lane and Basiya mountains in the west,
and from the Umthamvuna River in the nor th to the
Mbashe River in the south. The entire District was
part of the former Transkei Bantustan.
D I S T R I C T S N A P S H O T
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The District has a population of about 1.7 million
people. The Distric t is rather densely populated (more
than 100 people per square kilometre , predominantly
rural (93%), with dispersed homesteads (making
basic services provision expensive). Access to basic
services such as potable water, sanitation, electricity
and access roads is relatively low. Sewage owsinto the Mthatha and Tsolo rivers, and outbreaks of
cholera and t yphoid occur.
The GGP per capita of the Distric t is only 30% of
the Provincia l aver age , and rates of unemployment
and poverty are very high. Rates of economic
growth are low and the District lacks an economic
hub. Private sector activity is largely restricted to
the trade sector and a smal l timber i ndust ry. Pr iva te
investment in the Distric t is hindered by a backward
(communal) land tenure system and a physical
planning system still in its infancy (the District will
nalise its Spatial Development Framework later
thi s year, and this wil l form the bas is of a land-use
management system).
On the other hand, because of its poverty prole,
the Dis tr ic t was, and is , a focus of many Sta te
development initiatives. These include:
Wild Coast SDI
Presidential Projec t Team (in the 1990s)
Integrated and Sus tainable Rural Development
Programme (ISRDP)
Urban Renewal Programme (Ngangelizwe)
Increasing scal allocations to address infrastructure
backlogs Project Consolidate
Proposed N2 Toll road
Proposed Pondoland National Park
Kei rail
PGDP Massive Food Programme
Proposed AsgiSA programmes, such as Forestry
Cluster, Umzimvubu Irrigation Project, biofuels, call
centres etc
Ntinga OR Tambo Development Agency
DEAT programmes (Working for Tourism, Working
for the Coast, Working on Waste, Sustainable land-
based livelihoods. Total annual budget presently
nearly R150 million).
The District is divided into seven local municipal
areas, each with at least one urban service centre:
King Sabata Dalindyebo (Mthatha and Mqanduli),
Nyandeni (Libode), Port St Johns, Mhlontlo (Tsolo
and Qumbu), Ntabankulu, Mbizana and Qaukeni
(Flagstaff and Lusikisiki).
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The eight municipalities of OR Tambo had a
combined capital expenditure budget of R692million in 2005/06. This amounts to a capex per
capita of R412, slightly below the provincial average.
70% of this total capex is budgeted by the District
Municipality. One municipality (PSJ) has a capex
budget of just R1 million. 93% of the total capex
budget is to be funded from grants and subsidies.
This is the highest ratio in the Province.
The combined municipalities have an operating
budget of R718 million, equivalent to R428 per
capita, which is very low by provincial standards.
54% of operating revenue is grants and subsidies
(much higher than provincial average). Income
from property rates accounts for nearly 10% of
total operating revenue. 84% of total ra tes income
is budgeted to come from King Sabata Dalindyebo
(KSD) Municipality. Personnel costs account for
about 45% of budgeted operating expenditure
(above average). KSD accounts for 42% of budgeted
personnel costs. The D istrict Municipality accountsfor 23% of total personnel costs.
To address Provincial development challenges
and opportunities, the Provincial Growth and
Development Plan (PGDP) was launched in 2004,
and PGDP nds expression in all the Districts
IDPs. More recently, AsgiSA has been launched
to accelerate economic growth throughout Sou th
Africa. The present document aims to outline the
elements of a development strategy for the OR
Tambo Distric t. Specically, this document considers
how to:
Speed up delivery of basic services
Improve public services (schools, clinics etc)
Create jobs and livelihood opportunities
Build and maintain infrastructure
Fight poverty
Augment Municipal capacities and co-operation
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This section briey outlines servi ce delivery with
respect to water, sanitation, electricity and housing,
drawing mainly on a provincial household survey
conducted in 2006 (RSS). These trends are evaluated
against the benchmark of the 2001 census.
WAT E R The percentage of households in Or Tambo still
relying on natur al water sources (62%) is more than
twice the provincia l Average of 28% . Households
in Mbizana (94%), Qaukeni (82%) and Nyandeni
(66%) reect the highest levels of those suffering
the vulnerabil it y of natur al water sources . All of the
remaining local municipal areas are well above the
provincial average and suggest a crisis in household
water access within the district if RDP standards are
used as the norm.
D E L I V E R Y O F B A S I C S E R V I C E S
Water access by household for the Eastern Capeand loca l Municipalities in OR Ta mbo for 2001 - 2006
Water on Site Borehole/Tank Community Stand Natural water/dam Water Vendor/other
Census2001
RSS 2006Census2001
RSS 2006Census2001
RSS 2006Census2001
RSS 2006Census2001
RSS 2006
% % % % % % % % % %
Eastern Cape 37.4 41.8 4.0 3.8 25.3 25.1 31.4 28.0 1.9 1.4
O.R.Tambo 10.0 10.2 5.9 4.1 17.9 21.1 64.1 62.4 2.1 2.2
Mbizana 2.9 0.7 2.9 0.0 14.9 3.8 77.6 94.2 1.8 1.2
Ntabankulu 3.4 2.3 3.7 9.7 16.1 44.5 75.0 43.5 1.8 0.0
Qaukeni 8.0 4.1 3.8 1.0 13.8 12.6 72.4 81.9 2.0 0.4
Port St Johns 5.7 6.5 5.1 2.7 13.7 39.2 73.8 50.8 1.7 0.8
Nyandeni 3.9 9.3 7.4 5.8 18.7 18.0 67.2 66.0 2.8 0.9
Mhlontlo 6.4 5.3 5.7 7.1 27.5 27.9 58.7 46.8 1.7 12.9King Sabata
Dalindyebo24.1 27.8 8.5 5.3 18.6 21.8 46.4 44.1 2.4 0.9
Source: SSA 2001 and RSS 2006
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S A N I T A T I O N Investment s in household sanitation in the OR
Tambo district over the period 2001 2006 have
clearly not yet begun to address the needs of local
households. Every local municipality in Or Tambo is
way above the provincial norm (22%) for househo lds
not having any formal sanitation and way above RDP
requirements.
Type of sanitation by household forlocal municipalities in OR Thambo and the Eastern Cape for 2001 2006
Flush Toilet(connected to sewerage system)
Flush Toilet(with septic tank)
Chemical ToiletPit Latrine
(with ventilation)
Pit Latrine(without ventilation)
Bucket Latrine None
Census2001
RSS 2006Census2001
RSS 2006Census2001
RSS 2006Census2001
RSS 2006Census2001
RSS 2006Census2001
RSS 2006Census2001
RSS 2006
% % % % % % % % % % % % % %
Eastern Cape 30.9 31.1 2.2 1.3 2.0 0.6 5.6 7.2 23.1 33.9 5.6 4.0 30.6 21.8
O.R .Tambo 7.4 5.8 0.9 0.5 2.8 0.4 6.0 11.0 29.9 44.0 1.4 0.4 51.6 38.0
Mbizana 1.5 0.0 1.1 0.0 5.6 0.0 7.5 0.7 44.8 70.5 0.7 0.0 38.7 28.8
Ntabankulu 1.4 0.5 0.7 0.5 2.7 0.0 3.5 2.3 24.6 29.2 2.0 0.6 65.0 67.0
Qaukeni 2.6 0.0 1.0 0.7 3.1 0.0 5.5 10.0 40.4 61.4 1.8 0.6 45.6 27.3
Por t St Johns 2.8 0.0 1.7 0.0 2.0 0.4 1.7 35.5 16.7 39.0 1.2 0.4 73.9 24.7
Nyandeni 2.0 0.4 0.8 0.0 1.9 2.0 4.7 8.2 28.2 37.5 0.6 0.0 61.7 51.9
Mhlontlo 2.2 0.0 0.5 0.0 3.7 0.0 9.2 11.8 31.9 46.8 1.6 0.0 50.9 41.5
King Sabata
Dalindyebo22.7 24.8 0.7 1.1 1.7 0.3 7.1 13.1 22.1 24.2 1.7 0.2 44.2 36.4
Source: SSA 2001 and RSS 2006
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T H E C O S T S O F E L I M I N A T I N G B A C K L O G S
The estimates for eliminating the backlogs for water
and sanitation are pegged at R1 billion. Almost all
of these backlogs are rural (98% for water and 94%
for sanitation). The greatest proportion of water
backlogs in OR Tambo are in Mbizana (21%), KSD
(19%) and Nyandeni (18%). The remaining local
municipalities all account for at least 10% of the backlog
each reinforcing the point that the district as a whole
suffers from under investment in household water
access. In terms of sanitation backlogs Qaukeni (19%),
Mbizana (18%) and KSD (17%) recorded the greatest
proportion overall.
costs of eliminating backlogs for Water and sanitation
Category Water Sanitation
R % R %
Mbizana Urban 2 362 950 4 291
Rural 194 813 550 186 293
Total 197 176 500 21.0 190 584 17.9
Ntabankulu Urban 4 145 850 5 413
Rural 87 228 450 102 637
Total 91 374 300 9.8 108 050 10.1
Qaukeni Urban 2 023 650 5 269
Rural 114 043 550 191 563
Total 116 067 200 12.6 196 832 18.5
Port St Johns Urban 645 750 3 761
Rural 95 996 550 61 690
Total 96 642 300 10.3 65 451 6.1
Nyandeni Urban 4 082 850 5 330
Rural 160 231 950 160 887
Total 164 314 800 17.5 166 217 15.6
Mhlontlo Urban 0 2 610
Rural 97 245 450 151 400Total 97 245 450 10.4 154 010 14.4
King Sabata Dalindyebo Urban 2 511 000 41 881
Rural 171 647 550 143 742
Total 174 158 550 18.6 185.623 17.4
O.R. Thambo Urban 15 772 050 1.7 68 555 6.4
Rural 921 207 050 98.3 998 212 93.6
Total (approx. R 1 billion) 936 979 100 1 066 767
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C L E A R I N G T H E B A C K L O G
According to DWAFs National Information System
for Water Services (accessed on the DWAF web
site, October 2006), it will require R 1 billion to
eradicate the water supply backlogs and R700m to
eradicate the sanitation backlog. This will mean an
annual expenditure of R500m to achieve the 2008water supply target and an additional R175m per
year to achieve the 2010 sanitation target.
In the next nancial years, the Municipal Infrastructure
Grant (MIG) will allocate:
R295 million for 2006/2007
R363 million for 2007/2008
R380 million for 2008/2009
Even if the total of R 1.6 billion was used by
municipality for basic services and infrastructure
investment in the water and sanitation areas, this
amount falls far short of that necessary to meet
the required target s. There are also many other
areas that make financial demands on MIG funds
(roads, stormwater, electricity, waste management,
community facilities, etc).
E R A D I C A T I N G T H E B U C K E T S Y S T E M
Bucket sanitation has never been widespread in
OR Tambo and consequently bucket eradica tion is a
relatively insignicant priority in terms of sanitation
investments in the District.
Municipality Total No of Buckets Approx Value toReplace (R000)
1,011 9,099
Mbizana 0 0
Ntabankulu 735 6,615
Qaukeni 0 0
Por t St. Johns 0 0
Nyandeni 0 0
Mhlontlo 276 2,484
King Sabata
Dalindyebo
0 0
O.R. Tambo District
Municipality
0 0
Source: DHLGTA September 2005
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M U N I C I P A L I N F R A S T R U C T U R E G R A N T ( M I G )
The National Government provides infras truc ture
subsidies to ensure tha t all households have access to
a basic level of infrastructure services. The benets
of this intervention are well known, particularly
in relation to the public good characteristics of
many municipal services. The key objectives of theMunicipal Infrastructure Grant are to:
fully subsidise the capital costs of providing basic
services to poor households: this implies that
priority must be given to meeting the basic
infrastructure needs of poor households, through
the provis ion of appropriate bulk, connec tor and
internal infrastructure in key services;
distribute funding for municipal infrastructure in an
equitable, transparent and efcient manner, which
support s a co-ordinated approach to local development
and maximises developmental outcomes;
assist in enhancing the developmental capacity
of municipalities, through supporting multi-year
planning and budgeting systems; and,
Provide a mechanism for the co-ordinated pursuit
of national policy priorities with regard to basic
municipal infrastructure programmes, while
avoiding the duplication and inefciency associated
with sectorally fragmented grants.
An amount of over R1.6bn in MIG funding has been
allocated within the OR Tambo District over the
current medium term expenditure framework. O f
thi s amount, app roximately R646m is alloca ted to
addressing water infrastructure requirements, and
over R323m is allocated to sanitation. The balance
of just above R100m is allocated to other socialinfrastructure services.
The allocation of the MIG in OR Tambo sugges ts a
concerted effort to address the social infrastructure
backlogs in the District. However, given the
magnitude of the backlogs in some of the local
municipalities (see earlier section on improving
social services); these signicant infrastructure
allocations are necessary but not sufcient to
eradicate the backlogs in line with Provincial and
National targets.
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The OR Tambo Distr ict Municipality has identied
and prioritised the following water and sanitation
projects that are listed below.
water and sanitation projects: ortdm
Projects Strategy/Activity Amount Time Frames Responsible Department
Water
Umzimvubu Dam Feasibility Study R300 million 2007 2026 Premiers Ofce
Rural Water Supply
(backlog removal)Three-year Infrastructure Plan 2007 2014 ORTDM / DPLG
Regional Water Scheme (bulk) Master Plan R6 billionNot
establishedORTDM
Ten Towns
Refurbishment ProgrammeTen Towns Audi t Repor t R10 0 million
Not
establishedORTDM
Working fo r Water Programme Thr ee-year Act ion Plan R7 m ill ion 2007 2009 DWAF
Zaulu Hill DamFeasibility Study
BP PreparationR11 Million 2007 2011 DWAF
SanitationRural Sanitation Three-year Infrastructure Plan 2007 2016 ORTDM / DPLG
Ten Towns
Refurbishment ProgrammeTen Towns Audi t Repor t R40 0 million
Not
establishedORTDM
OR Tambo District Municipality, 2007
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E L E C T R I C I T Y
Except for KSD (70%) the remaining local municipalities
in OR Tambo fall signicantly below the provincial
average for those who have access to electricity at
least for lighting (67%), worst off is Ntabankulu with
only 18% of households using electricity for lighting.
As is the case in the rest of the country, electri city
supply nation-wide from ESKOM cannot increasesignicantl y until the new R40bn power stations come
online in 2010. It is therefore quite unlikely that there
will be any further electrications in OR Tambo until
the stabili ty of power supply has been sor ted out by
ESKOM. There is a good opportunity for ESKOM or
ay other service provider (if possible) and exploit the
hydro-electric potential of the Mzimvubu Dam and
Catchment area.
energy sources for lighting in the Eastern Capeand loca l Municipalities in OR Ta mbo for 2001 - 2006
Electricity Gas Para n Candles Solar and other
Census2001
RSS 2006Census2001
RSS 2006Census2001
RSS 2006Census2001
RSS 2006Census2001
RSS 2006
% % % % % % % % % %
Eastern Cape 49.7 67.1 0.3 0.4 23.3 14.0 25.9 18.3 0.8 0.2
O.R.Tambo 28.1 49.6 0.3 0.2 12.1 8.0 58.4 41.6 1.2 0.5
Mbizana 25.0 37.0 0.3 0.0 2.9 4.1 69.7 57.7 2.1 1.2
Ntabankulu 14.5 18.4 0.1 0.0 3.4 1.8 80.1 79.4 1.9 0.5
Qaukeni 13.6 42.7 0.2 0.4 8.0 5.8 76.3 50.0 1.8 1.0
Port St Johns 17.2 45.6 0.3 0.4 10.5 1.9 70.8 52.1 1.1 0.0
Nyandeni 32.2 58.4 0.2 0.2 11.5 19.7 55.0 21.7 1.0 0.0
Mhlontlo 30.1 47.1 0.2 0.6 8.8 2.4 60.0 49.1 0.9 0.9
King Sabata
Dalindyebo41.7 70.1 0.4 0.2 24.3 11.5 33.1 18.1 0.6 0.2
Source: SSA 2001 and RSS 2006
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H O U S I N G
The provision of formal housing for low and
middle income residents is a core function of local
municipalities. Within the urban areas, housing
development is generally occurring, however,
within the rural or communal areas, the provision
of housing is only beginning to be addressed.
The primary const raint with regards to the provision
of housing in rural areas relates to issues around
land ownership and registration of title. The current
housing regulations also fail to make provision for
adequate land for making food gardens that these
poor households need for survival.
With the promulgat ion of the Communal Land
Rights Act the process of addressing problems
surrounding land rights commenced. The table
below provides an insight on the current status of
housing delivery in the District.
level of informal housing
Census 2001 RSS 2006
% %
Eastern Cape 10.9 5.7O.R .Tambo 2.7 1.1
Mbizana 1.6 1.1
Ntabankulu 1.6 0.7
Qaukeni 2.3 1.8
Por t St Johns 1.2 2.3
Nyandeni 1.5 0.0
Mhlontlo 4.2 0.0
King Sabata Dalindyebo 4.6 2.0
Source: SSA 2001 and RSS 2006
Low-cost housing backlogs are less prevalent than
those for water and sanitation in OR Tambo, and
the oppor tunit ies provide good st imulus for local
economic activity.
There is an obvious link between housing plans and
existing backlogs with the EPWP and its related
forward-backward linkages to the construction and
mining/quarrying industry and job creation.
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C U R R E N T M U N I C I P A L H O U S I N G P R O J E C T S
The projects listed below are currently implemented
and were approved in the previous nancial years.
No new funding to be allocated until completion of
the cur rently imp lemented projects .
Committed funds to be utilised to complete the
existing project.
For 2007/08 only one new project to be nanced
i.e. Urban Renewal Upgrading Project
(NGANGELIZWE Breaking New Ground)
LocalMunicipality
ProjectTotalUnits
Units Units Total BudgetExpenditureTo Date
Date Of Approval Subsidy Quantum
KSDM MpekoEagertonLindilePrestonUpper CentuleUpper TabaseOld PayneNew PayneKwenxurhaNdlunkukuNtshabeniNcambeleNgqwala
ZidindiWater fal l Phase 4Water fal l Cons Phase 1Water fal l Cons Phase 2Zimbane ValleyIlithaZimbane KuyasaMaydene FarmMqanduli
25045035040 0300300300300300300300300300
3004505004951482463477969500
24437029935413716015046196442810
123
733934880.00635013
889500
780514616314015025410425619
300177
2275712
495847463464800
5 428 493.2210 925 417.007 211 452.009 223 193.009 623 454.009 639 253.009 629 503.0011 000 361.799 539 192.0010 758 016.0 09 506 227.0011 460 117.009 931 437.58
9 090 621.038 853 000.009 700 000.00
0.0044 422 600.0018 506 125.0 07 155 000.0016 731 050.0 08 437 500.00
5 585 745.948 883 663.197 198 976.448 531 493.907 609 650.867 312 486.517 674 280.53
57 476.007 871 217.20
3 256 393.238 420 118.48
0.006 987 244.62
4 214 066.348 758 950.005 450 000.00
0.0021 990 012.3412 571 329.324 830 281.3315 818 375.008 437 500.00
21/09/200221/09/200221/09/200221/09/200209/07/200409/07/200409/07/200409/07/200409/07/200409/07/200409/07/2004
09/07/2004
09/07/200409/07/200401/09/1999
23/03/200025/09/200213/06/199623/04/199819/01/1999
20 300.0020 300.0020 300.0020 300.0025 800.0025 800.0025 800.0025 800.0025 800.0025 800.0025 800.00
25 800.00
25 800.0025 800.0015 000.0 0
8 000.0016 000.0 015 000.0 015 000.0 015 000.0 0
Nyandeni HadiniLibode Rl 3Ngqeleni Ext4
80 0500420
371069
429500351
22 141 206.0014 684 250.0011 086 926.30
15 170 199.065 390 308.006 064 988.17
21/09/2002
19/01/1998
20 300.00
15 000.0 0
Port StJohns
Psj Rural (Caguba)Mthumbane TownshipPsj Rural (Caguba & Maneng)
200425
1000
195383
1000
5420
6 008 370.0014 141 250. 0026 937 000.0 0
5 998 370.006 595 319.50
26 937 000.0 0
21/06/200517/10/199720/08/2003
25 800.0015 000.0 023 100.00
Mhlontlo Qumbu Ext 5Tsolo
504425
179425
3250
11 322 398.0 06 360 000.0 0
8 468 590.625 624 747.11
14/07/1998 15 000.00
Qaukeni NkozoMantlaneniFlagstaffLusikisiki
3003005031117
116762411117
1842242620
9 262 555.009 412 555.0013 708 753.6618 430 500.00
5 439 595.574 758 954.458 623 826.0717 162 149.41
09/07/200409/07/200401/06/200012/12/1997
25 800.0025 800.0016 000.0 015 000.0 0
Ntabankulu Ntabankulu Ext 5 471 113 358 12 254 424.00 10 851 746.65 01/04/2000 16 000.00
Mbizana Mbizana Ext 3Mbizana Ext 4
18880 0
0400
188400
4 850 400.0024 023 687.00
4 368 300.6016 386 174.34
19/08/199928/01/2004
16 000.0 023 100.00
Total 17739 10079 7660 441 890 060.60 309 299 530.80
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19
In conclusion, the housing backlogs need to be
understood in the context of the predominantly rural
nature of the OR Tambo District. Informal housing1
does not include rural dwellings, and therefore
although the District has a very low informal housing
problem, it has a huge rural housing problem
underscoring the continued need for RDP housing inrural communities.
1Informal housing is dened as shacks, and othernon-concrete structures in urban centres.
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The data in the table below are perceptions of those
surveyed in the RSS survey in 2006
i m p r o v e p u b l i c s e r v i c e s
Access toClinics
Access toPrimary Schools
Access to Roadsin good Condition
Access toAmbulance Services
InformalHousing
% % % % %
Mbizana 54.0 92.4 51.7 26.8 0.7
Ntabankulu 36.7 77.3 17.6 32.0 0.4
Qaukeni 69.1 72.1 46.0 31.4 1.8
Port St Johns 38.8 88.5 27.7 22.7 2.3
Nyandeni 62.2 87.3 9.5 39.0 0.0
Mhlontlo 44.4 89.1 15.0 32.0 0.0
King Sabata Dalindyebo 86.6 89.5 22.4 62.1 2.0
Source: RSS 2006
H E A L T H
Access to health care has improved considerably in
the OR Tambo However, major challenges remain .
There are 169 clinics in the District resulting in a
ratio of 10 300 people per clinic. According to
national norms of one clinic per 10 000 people, the
OR Tambo District has less clinics than a re needed.
The distribu tion of human resources at health facilities
across the District is however, biased in favour of
the lar ger centres . The national aver age gure fornurses per 100 000 people, is 12 nurses. OR Tambo
appears to be under-resourced showing gures like
4.5 nur ses per 100 000 people, and in some areas (
Ntabankulu) as low as 2.7 nurses per 100 000 people.
Reported access to health care is greater in KSD,
Nyandeni and Qaukeni, and lowest in Ntabankulu
and Port St Johns.
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H I V & A I D S
OR Tambo District had an antenatal prevalence
rate1 of 33.8% in 2004, up from 23.6% in 2002,
which is above the provincial average for the Easter n
Cape (28.03% in 2004). It can be assumed that
remnants of the Apartheid migrant labour system
play a role in this high prevalence rate. HIV is often
more prevalent in mobile populations, and migrant
workers return to their homes when they are ill.
This will increase both the number of new infections
and the total number of people living with HIV inthe dist rict .
HIV Prevalencein OR Tambo district
2002 2003 20042
OR Tambo 23.60 % 29.20 % 33.80 %
Eastern Cape 23.60 % 27.10 % 28.03 %
Source: Dept of Health antenatal survey, 2004
Estimates for the total population of the Eastern
Cape, estimate that 10% of the total population
is HIV positive, and 19.2% of adults (20-64 years)
(ASSA 2003 Model). For the province as a whole,
women have higher HIV prevalence than men, the
African population is at higher risk, and the epidemic
is growing fastest among youth (15-25 years). It is
particularly young women that become infected.
Prevalence for males exceed that of women in the
30-34 age group (ECAC, 2005). Early sexual debut,age difference between partners and transactional
relationships is reported to plan a role in driving the
epidemic (ECAC, 2005). Hence, prevention programs
should be targeted towards young people.
1Antenatal prevalence refers to the percentage of pregnant women attending
public clinics who test positive for HIV. Data is only availab le per district, a nd
it is difcult to extrapolate this data for the entire populat ion.2Eastern Ca pe Department of Health has not yet made the provincial 2005
Antenatal survey available.
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According to the HSRC 2003 household survey,
HIV prevalence is generally higher in urban informal
and urban formal settlements and lower in farm
and tribal settlements. There is not a signicant
difference in HIV prevalence among those working
and those unemployed, however, HIV and AIDS is
still closely linked to povert y in its many dimensions.The epidemic in the province is expected to reach
a peak by 2010, at about 16% of the population,
before the number of new infections even out
(ECAC, 2004).
Knowing your status is an important weapon in
curbing the spread of HIV. Most public clinics offer
Voluntary Counselling and Testing (VCT) and in
2006 69.26% of those attending public clinic s opted
for VCT (men and women). Only 24.53% of males
who visited clinics opted for VCT. However this
gure does not tell us about the percentage of the
total population who have undergone VCT, the
quality of the services, or whether patients came
back to get their results.
VCT Test r ate (% of peopleattending clinics undergoing VCT)
%
OR Tambo DM King Dalindyebo LSA 65.92
Mhlontlo LSA 75.97
Nyandeni LSA 68.41
Qaukeni LSA 66.73
Total 69.26
Source: District Health Information System, Januar y 2006
The Nelson Mandela Academic Hospital in opened
in Mthatha in 2004, and provide the people of the
district with a new state of the art tertiary health
facility, albeit with some challenges. The hospital
is one of the provincial sites piloting the use of
telemedicine. The H IV and AIDS centre at Walter s
Sisulu University (WSU) is a resource beyond thedistrict, both for research and training of health
professionals and community health workers, and
receives funding from Department of Health.
The Depar tment of Health has embarked on a range
of prevention, care and treatment interventions.
In OR Tambo 9 service points are accredited for
dispensing anti-retroviral treatment, treating a total
of 4934 patients in November 2006. However,
the re is st ill a need to accredit add itiona l point s
and increase the number of people on treatment.
Increasing number of people on TB treatment
and partner treatment for people with STIs is also
a challenge. Attraction and retention of health
professionals is a challenge, at primary as well as
ter tiary facil ity level .
The pioneering ARV program in Lusikisiki, as
collaboration between Doctors without Borders
(MSF), the Department of Health (ECDOH) and
the Treatment Action Campaign (TAC), is now being
handed over to ECDOH. The program provides an
internationally heralded model of ARV rollout in
resource poor setting s, and possibilities for scale up
should be investigated.
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In the distric t, HIV and AIDS is given the highest
priority, being placed in the ofce of the Executive
Mayor Programs include awareness, research
capacity development. One of the awareness and
prevention programs that the district support is the
cultural practice of Inkciyo.
The Non Governmental Organisations (NGOs),
Community Based organisations (CBOs) and Faith
Based Organisations (FBOs) play a major role at the
community level. However, integrated approaches
and cooperation between actors need to be
strengthened across the district. The AIDS councils
play a major role here. Among NGOs, CBOs and
FBOs there is also a need for focus on quality and
specialisation in the response to HIV and AIDS
(ECAC, 2004).
The district should develop a multisectoral HIV
and AIDS plan that is integrated into the IDP witha dedicated budget. This should include a response
to what is sometimes called the orphan ep idemic:
the growing numbers of chi ld headed households,
vulnerable children and orphans.
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E D U C A T I O N
According to the Education Management Information
System (EMIS), there are a total of 1892 primary
and secondary institutions in the ORTDMA. There
is one University in the ORTDMA, which is the
Walter S isu lu Univers it y of (WSU), which is si tua ted
in Mthatha.
It is estimated that 95% of all the learners walk
to school , of which 36% walk for longer than
30 minutes. This means that there are 245 000
Percentage of OR Tambo, rural nodal and non-noda lpopulations (aged 524) attending educational institutions
children who walk for more than an hour a day
getting to and from school
Compared to the rest of SA and especially to the
other rur al nodes the education level in OR Tambo
District is very low.
Percentage of OR Tambo, rural nodal and non-nodalpopulations (aged 524) attending educational institutions
0%
24% 25%
None Pre-School &
School
Technikon/University/
College/Adult Education
OR Tambo
Rural Nodes
Rest of South Africa
(non-nodes)
30%
75% 74%
67%
1% 1%3%
20%
40%
60%
80%
0%
38%
29%
No Schooling Some Primary/
Secondary Schooling
S td 10/Grade 12 Highe r Educat ion
OR Tambo
Rural Nodes
Rest of South Africa
(non-nodes)
15%
49%53% 53%
9%13%
22%
5% 5%9%
20%
40%
60%
80%
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S K I L L S U P G R A D I N G
The District has launched a Human Capital Devel-
opment Approach tha t is based on the following key
areas:
Baseline Research and Benchmarkingon government
impact on lives of local community members.
Government has invested a lot of money over the
years in the various communities around the district.
The challenge is that there is no baseline information
that the government intervention can been measured
against. This makes it extremely difculty to measure
progress and the impact of government services in the
lives of the people of the region. The lack of baseline
information is also not helping future planning as future
budgeting and planning relies on past performance.
The Baseline and Benchmarking programme is aimed
at correcting this dilemma and help provide local
government with the information tools that local
government need for proper planning.
Priority Skills Acquisition -The huge backlog in the
distric t and the need to change the situation around
requires a workfo rce in local government that posses
the right sk ill s. The bui lding of roads, br idges, etc
requires engineers, nancial experts, architects, etc.The Priority Skills Acquisition initiative is a critical
component of service delivery.
Life Skills Acquisition members of the community
need to be trained on life sk ills in order to cope with
the difcu lt s ituations they are confronted wi th on a
daily basis. Some of the skills that are needed are:
Conict management
Dealing with HIV/AIDS
Family values
People relations
Personal hygiene
Community Skilling (CS) the community need
skills that will help them manage community
projects. They need the skills to play their role as
monitors of public service performance.
B U S I N E S S D E V E L O P M E N T S E R V I C E S
One of the key trends in small enterprise develop-
ment has been a move away from direct-market
substitution by international donors and local govern-
ments towards a focus on facilitating private business
development service (BDS) market development.
This approach emphasises the limited ability of the
public sector and/ or donor organisations to deliver
services to small enterpr ises effectively.
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This approach is premised on the fact that the
Municipality should encourage and promote
private service providers of business development
services, instead of the municipality itself trying to
be a provider of such services. So this approach
emphasises the need to promote the private sector
suppliers of business services, with the attendant
benets of efciency and efcacy.
Facilitating BDS market development means
conducting an assessment of the BDS market,
identifying weaknesses and opportunities, and
identifying interventions that could stimulate
the provision of more and more relevant BDS
product offerings1.
The OR Tambo Distric t Municipality needs to
strengthen partnerships with the Small Enterprise
Development Agency (SEDA), the ECDC and other
national institutions in the delivering of nancial
and non nancial support to SMMEs. The following
products and services should be offered at dedicated
business support centres:
Information, advice and referrals
Business registration
Business plans Tender Information and advice
Import and Export training
Trade Information
Business assessment and technical support
Business mentoring and
Market access and business linkages
1Oxford 2005
T R A N S P O R T
Despite some investments in new roads and
maintenance in the district many local communities
remain trapped in isolated and disconnected local
communities with very poor road infrastructure.
This disconnection has signicant consequences in
terms of local economic development as wel l as
services deliver y, most evident from the accessibility
to emergency ambulance services .
Currently the process of maintenance and upgrade
is severely hampered by the lack of clarity with
regards to roles and responsibilities between
various roads role players. The process is currently
under discussion at all levels, thus providing some
hope for a resolution in the near future.
Transport whether motorised or non-motorised
experiences many problems within the OR Tambo
District. These can be summarised as follows:
Poor conditions of roads especially rura l
roads and within former urban townships
Stray animals
Inadequate pedestrian signs and markings and off
loading areas especially within the few urban areas
Limited trafc calming measures within areas of
high accidents Low visibility of trafc ofcials and law
enforcement
Non-availability of trafc lights,
let alone at major intersections
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Unavailability of adequate public transport facilities
especially for the disabled
Lack of cooperation between public transport
operators and the municipal authorities
Lack of institutional capacity at Local and
district Municipal level to manage transport
planning and implementation
Insufcient supply of taxi related infrastructure
Outdated/non-existent information
at the taxi registrar
Lack of pedestrian and non-motorised
transpor t fa cil iti es
The road network s in the O. R. Tambo area consists
of the following categories:
National Road = 136km (National Roads Agency)
Provincial Road = 497km (Provincial Department of
Roads and Public Works)
District Road = 2792km (Regional Department of
Roads and Public Works)
Access Road = 2957km (DM, LMs)
Street & Internal Road (Local Municipalities)
In support of Road Construction & Development
of SMMEs, the O.R. Tambo District Municipality has
embarked on an emerging contractor development
programme. Through this programme emerging
contractors are trained formally on site and in
classroom to develop to the status of established
contractors. The initiative commenced with the
purchasing of road construction plant to the value
of R15million funded by the then CMIP. The Plant
items are currently used in the on-site construc tion-
train ing progr amme. The Leng thman system of road
maintenance is currently implemented with a view
of creating employment opportunities.
A I R P O R T S
The Mthatha airport needs to be upgraded and
revitalized in the most cost-effective manner that
will promote socio-economic activity and tourism
for this region. In order to achieve improved air
transport and emergency response in times of
natural disasters there needs to be upgrading of
airelds at key nodes.
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Working Age& not working
Unemployedand lookingfor work
Householdincome< than
R1500/month
% % %
Eastern Cape 78.1 32.6 65.2
O.R.Tambo 84.6 34.6 71.6
Mbizana 89.5 39.5 84.9Ntabankulu 82.1 30.1 73.0
Qaukeni 87.2 32.8 76.7
Port St Johns 89.6 44.7 5.2
Nyandeni 85.0 33.7 67.9
Mhlontlo 83.2 30.5 71.5
King Sabata
Dalindyebo79.3 34.2 56.6
Source: RSS 2006
In the context of the very high unemployment and
poverty rates mentioned above, there is clearly anurgent need for new investments to create jobs and
improve livelihoods in the OR Tambo Distr ict. Ba sed
on existing economic activity, market opportunities
and present resource/assets/sk ill bases the particular
industries offering potential include:
J O B C R E A T I O N A N DL I V E L I H O OD OP P O R T U N I T I E S
Livestock farming
Dryland farming and irrigated horticulture
Forestry
Manufacturing
Construction and Mining
Trade and Business Services/ICT
Tourism
Each of these industries requires a detailed Action
Plan, specifyi ng investments to be packaged, timelines
and milestones, stakeholders and responsibilities.
Preparatory work has already taken place for all
these industr ies in the OR Tambo Dis tr ic t, and the
main challenge is to galvanise industry role-players
to ensure acceler ated and shared grow th, and good
quality investments.
It is notable that only about 13% of the District s
working-age population have matric or above. This
points to the critical importance of education and
train ing for future employment growth.
Each of the seven industr ies listed above is briey
proled in the following sections:
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L I V E S T O C K F A R M I N G
Livestock farming (primarily cattle, sheep and
goats) is very important in the District, but
generally provides very low incomes compared
to commercia l livestock farming elsewhere in the
Province. Livestock farming is being supported by
the Provincia l Depar tment of Agriculture through
construction of stock dams, dipping tanks, shearing
sheds, fencing (under CASP) and veterinar y services
etc. The challenge is to increase incomes from
communal livestock farming. An industr y action plan
would probably include:
Expansion of the effective
NWGA model of support
Improve existing programmes designed to
facilitate skills transfer between commercial
and emerging farmers
Improved Agricultural Extension Services
Improved market access (e.g. drawing on
experience of USAID-funded project in the
Chris Hani District; Middle Eas t goat market)
Building animal feeds industry
Improved veld management
Move to formal land administration
Upgrading access roads/farm logistics
Ntinga Development Agency, in addition to theProvincial Department of Agriculture, is also
supporting livestock farming.
While the Distric t is suitable for dairy farming (and
there is a local market) it is capital and sk ills incentive.
D R Y L A N D F A R M I N GA N D I R R I G A T E D H O R T I C U L T U R E
Rainfall and soil quality make much of the District
well-endowed for agricultural production. Rainfall is
more than 800mm a year (and signicantly higher
in the coastal zone). Dryland farming is generally
of a subsistence nature, and there are large tracts
of uncultivated arable land. There are two large
farming projects in the District: Magwa Tea and
Pondoland Sugar.
There are several initiatives to suppor t increased
production by small-scale subsistence farmers:
PGDP Massive Food Programme
PGDP Siyazondla Programme (to increase
homestead garden food production)
District Municipality programme to support an
additional 30,000 ha of maize production
AsgiSA Biofuels initiative
AsgiSA Umzimvubu Initiative
There needs to be effective co-operation
between the Department of Agriculture and
the Dis tr ic t Munic ipa lit y in supporting inc reased
maize production, and support measures should
be thoroughly evaluated, to identify methods of
improved support.
The Umzimvubu project contains a cropping
component, but this project is very large-scale and
will inevitably take many years to come to fruition.
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Irrig ated horticulture is both capital and skills
intensive, indica ting that the growth of the subsector
will require bankable projects, experienced
management and thorough training. Several small-
scale irrigation schemes in the District have failed.
The District also contains larger-scale irrigation
schemes of the former Bantustan (for example,
Ncora) that are being rehabilitated.
Market access for crop-producers has been
improved as a result of the Mthatha Fresh Produce
Market, and will be assisted by the Kei Rail Project.
F O R E S T R Y
The District contains 30,000 ha of forestry
plantations (mainly around Langeni and Ntabankulu).
There is estimated to be a fur ther 50,00 0 ha suitable
for forestry in the District (the greatest potential
in South Africa). AsgiSA has identied forestry as
a priority area for intervention, and the District
Municipality will be working closely with AsgiSA to
develop this sector.
Infrastructure investments for the sector includethe new Langeni-Ugie road and Kei Rail.
M A N U F A C T U R I N G
This is a very small sector of the District economy,
but it does offer growth potential. For example:
Ntinga Development Agency is suppor ting the
development of the timber-using industries at
Langeni (and elsewhere)
There are many small-scale garment manufacturers
(e.g. occupying old Transido workshop premises)
tha t would benet from s tronger business suppor t.
The existing crafts subsector is not insignicant.
For example, a basket-making enterprise in Port St
Johns employs 2,500 home-worker s in the area .
Craft workers would benet from more support
with product development and marketing, and from
growth of the tourism industry in the District.
The agro-processing subsector has the potential
to grow on the bas is of inc reasing its pr imary
production. Examples include the Mthatha Abattoir
and maize milling.
There needs to be good co-operation between
Ntinga, SEDA, ECDC and the Thina Sinako LED
Programmes to realize growth oppor tunities.
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C O N S T R U C T I O N A ND M I N I N G
The construction industry in the District is presently
small, but is likely to provide more job opportunities
in the future, based on:
Rapidly increasing scal allocations for public
infrastructure (see section on Building and
Maintaining Infrastructure)
Expansion of the EPWP (there needs to be a
District EPWP Plan, with an M&E capability)
Increased house-building and retail infrastructure.
The District Municipality has initiated a Emergent
Contractor Development Programme.
Mining is presently restricted to quarr ying related
to cons truc tion ac tiv ity. There is also the possi bil ity
of a heavy sands mining project at Xolobeni on
the Pondoland coast , which would provide 250
direct jobs over a 22-year mining period, with an
investment cost of 220 million US dollars.
T R A D E A N D B U S I N E S S S ER V I C E S / I C T
Employment in this sector could be boosted by new
investment in Business Process Outsourcing and
call centres. District agencies need to work withAsgiSA to ensure that this takes place. ICT services
support protable business/co-op growth in all
other sectors.
T O U R I S M
This sector has obvious potential, primarily based on
the 120 km Wild Coast and home of Nelson Mandela.
Development initiatives include the following:
Regional Tourism Organisation established
Tourism Development Plan in place
Proposed new N2
Proposed Pondoland National Park
Wild Coast Spatial Development Initiative
EU Pondoland Community Tourism Programme
Upgrade of Mthatha Airport
Upgrade of access roads to the coast
Hluma Development Local Investment Agency (a
R500 million JV of DBSA and Old Mutual
to prov ide venture capit al for Wild Coast
private investments)
Nelson Mandela Museum/Qunu/Mvezo
Nelson Mandela Freedom Route from
Port St Johns to Aliwal North
Commercialisation of Nature Reserves
(Mkambati, Hluleka, Silaka etc)
Efforts to eradicate coastal illegal cottages.
Despite all these initiatives , potential investors have
frequently been frus trated in their efforts to develop
coastal tourism accommodation facilities, due to
difculties and delays surrounding land acquisitionand planning permission.
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It has been repeatedly suggested that one of the
major factors contributing to the low level of
economic competitiveness and social cohesion, and
in a sense result in a failure to exploit economic
potential, has been the poor state of infrastructure
and infrastructure-related services. This section
of the district prole attempts to summarise thephysical infrastructure development plans that have
been budgeted for over the medium term , and that
are likely to contribu te to a more enabling social and
economic environment in the OR Tambo District.
Like all other regions in the province, OR Tambo
District suffers from acute backlogs in social and
economic infrastructure. The vas t natural land, forest
and water resources that exist within the district,
and the existing albeit limited infrastructure base,
provides the basis for socio-economic development,
but it is well-planned, prioritised, strategic and
complementary infrastructure investments that
will promote social development, and stimulate
sustainable economic growth.
Provincial Department Infrastructure expenditure
plans from 06/07 08/09 in the OR Tambo DistrictMunicipality:
The total infrastructure spend directed towards the
OR Tambo District by the Eastern Cape provincial
government departments amounts to a whopping
total of approximately R2.9bn over the current
medium term expenditure cycle. This represents
signicant public sector infrastructure investment
that hopefully crowds in private investment.
b u i l d a n dm a i n t a i n i n f r a s t r u c t u r e
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P R O V I N C I A L D E P A R T M E N T O F E D U C A T I O N
Education is a key element of social and economic
development. The Provincial Department of
Education has planned and budgeted up to R710m
on education infrastructure in the OR Tambo
District over the current medium term expenditure
cycle (06/07 08/09). The Provincial Depar tment is spending R190m
in 06/07, R200m in 07/08 and R320 in 08/09,
representing slightly above 25% of total departmental
education infrastr ucture investment over the current
medium term cycle.
The bulk of the spending is targeted at rehabilita tion
and upgrading (R520m) with recurrent maintenance
budgeted at R120m emphasizing a focus on improving
the qua lit y of the education inf ra structure. Up to
214 schools have been targeted in the District for
thi s upgrade through prov inc ial government funding,
involving the eradication of mud-structures and
general routine maintenance of existing concrete-
structures. Therefore a shift towards quality as
opposed to quantity (quantity has been the norm
for previous medium term expenditure cycles).
These upgrading and maintenance amounts are crucial
in two respects, 1) by maintaining and protecting
existing assets ensuring guarantee of returns well into
the future , and 2) direc t and indirec t cash injec tions
boost local economies, as routine maintenance
activities are generally labour-intensive.
A total of approximately R70m over the medium
term is budgeted for New Const ruct ion of ve
schools public special schools in Mbizana, Mthatha,
and Lusikisiki.
Provincial government education infrastructure
spending per capita in the OR Tambo District over
the three year per iod , in total, is R405 per per son .
P R O V I N C I A L D E P A R T M E N T O F H E A L T H
The provincial health department has planned and
budgeted for a total health infrastructure spending
of R685m in the current medium term expenditure
cycle for the OR Tambo Distric t rising from R190m
in 06/07 to R265m in 07/08, before falling to R230m
in 08/09. This provincial health infrastructure expenditure
in OR Tambo amounts to 30% of total health
infras truc ture spending by the provincial government
over the medium term cycle.
The allocation to the District is divided into New
Construction (R106m), Rehabilitation and Upgrading
(R484m), and routine and recurrent maintenance
(R95m). Rehabilitation and upgrading will involve
over 40 clinic revamps and 7 hospital revitalizations
within the District.
The allocation for new construction will target
23 clinics and 5 hospitals. These large allocations
to relati vely few hea lth ins titut ions in the Dis tr ic t
suggests a strategic shift to focus more on
improving the quality of health services, as opposed
to improv ing access to hea lth ser vices . So the issue
is one of quality, not necessarily access.
The provincial health infrastructure spending per
capita in the OR Tambo District over the medium
term amounts to an approximate R390 per per son .
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P R O V I N C I A L D E P A R T M E N T O F A G R I C U L T U R E
The OR Tambo Dis trict has huge untapped
agriculture, forestry and water resources, and these
resources are at the heart of any sustainable growth
potential and economic activity in the Distric t.
Given this existing natural r esource base, the
Provincial Department of Agriculture plays animportant catalyst role in promoting subsistence
farming (food security) and small and large scale
commercial agriculture.
Over the current medium term pe riod (06/07
08/09), the Prov inc ial Depar tment of Agr icu ltu re
will spend approximately R23m on infrastructure
in the OR Tambo District, representing 11% of the
total inf ra structure spend (R200m over the medium
term) by t he prov inc ial depar tment in the D istr ic t.
The allocation rises from R5.5m in 06/07 to R8m
in 07/08 and to over R9m in 08/09 and is targeted
largely at fencing, stock water, irrigation, storage
and shearing sheds, tunnels, dip-tanks, and soil
conservation works..
The Provincial Agriculture infrastructure spend per
capita amounts to approximately R13 per person in
the OR Tambo Dis tr ic t.
P R O V I N C I A L D E P A R T M E N T O F P U B L I C W O R K S
The OR Tambo District is set to receive up to R75m
from the Provincial Department of Public Works.
This amount represents about 17% of the total
provincial allocation to all Districts and the Metro.
The per capita spending on public works amounts
to R43 per per son .
It is not clear what projects the budgeted money
will be spend on.
P R O V I N C I A L D E PA R T M E N T O F R O A D S A N D T R A N S P O R T
Another key element of required infr astructure
development in the District is the road network.
The OR Tambo Distric t suffers from quite signicant
road infrastructure backlogs given the largely r ural
character of the District.
In light of these backlogs, and recognising the keyenabling role that transport infrastructure has for
economic and social development, the provincial
roads and transport department has allocated
approximately R1.4bn to road infrastructure in the
OR Tambo District area, rising from over R327m
in 06/07 to R551m in 07/08 and then a drop to jus t
under R521m in 08/09.
This total allocation over the medium term represents
approximately 27% of the total provincial alloca tion
towards road inf ra structure, and representi ng a per
capita spend of R800 per person in total over the
medium term expenditure framework.
The major transport projec ts envisaged in OR
Tambo are: Kei Rail phases 3, 4 and 5 (R334m),
Isilimela Hospi tal road (R147m), Madwaleni hospita l
road (R136m), Greenville Hospital road (R132m),
Zithulele Hospital road (R130m), and Ugie-Langeni
phase 3 (R95m).
Some of the other spending on road infrastructure
in OR Tambo by the Provincial Department will be
on recurrent and routine maintenance (including
the Vukuzakhe Programme) of R300m, and access
to resor ts , and access to Great Places (R50m).
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P R O V I N C I A L D E P A R T M E N T O F H O U S I N G ,
L O C A L G O V E R N M E N T & T R A D I T I O N A L A F F A I R S
The department has announced expenditure plans
of R76m in OR Tambo for the 07/08 nancia l year.
This amount will result in the construction of a
tota l of 3058 houses in L ibode Ny andeni , Mthatha
Ilitha, Mthatha Zimbane Valley, Mthatha, WaterfallPark, Mantlaneni Village, Nkozo Village, and
Ncambele Village.
P R O V I N C I A L D E P A R T M E N T O F
S P O R T , R E C R E A T I O N , A R T S A N D C U L T U R E
The total Provincial Department allocation to OR
Tambo amounts to just over R12m over the current
medium term expenditure cycle.
The OR Tambo District is receiving a tad above
R4m in the 06/07 financial year for the new
construction of, 1) Mthatha Archives in KSD
(R3m), and 2) the Bumbane Cultural Village in KSD
(R1m). An amount of R5m is allocated for 07/08
for the continuation of the Mthatha Archives in
KSD (R2.5m), and the construction of the new
Flagstaff Arts Centre (R2.5m). Finally, in 08/09, an
amount of R3m is allocated for the completion of
the h is tor ic Mthatha Archives .
The OR Tambo allocation of the Depar tments
infrastructure budget represents 15% of total
departmental infrastructure spending throughout
the Province .
The infra struc ture per capita spending for the
department in the district lies at R7 per person of
infrastructure spend.
Expenditure on the new Mthatha Library (at an
estimated cost of R1.4m) has been planned, but
not budgeted for in the current medium term
expenditure cycle. P R O V I N C I A L D E P A R T M E N T O F S O C I A L D E V E L O P M E N T
The provincial department has allocated almost R16m
in infrastructure spending over the current medium
term expendi ture cyc le to the OR Tambo Distric t.
The expenditure is targeted at new construction of
the Flags taff Service Ofce (R4 .6m over the medium
term), the Qumbu Secure Care Cen tre (R11m over
the med ium term)
A further R0.3m is allocated for maintenance and
upgrade of parkhomes, and routine maintenance of
existing social development infrastructure.
The department has planned, but not yet budgeted
for, phase 2 of the Qunu Day Care Centre (est. cost
of R0.8m), and in addition, several service ofces
(Libode, Port St Johns, Mqanduli and Mbizana at
an estimated cost of R3m each) have been planned
but not budgeted for in the current medium term
expenditure cycle.
The total infrastructure spending in OR Tambo
represents 25% of total Social Development
infrastructure spending in the province.
The social development infrastructure per capita
spending over the medium term is approximately
R9 per person.
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P R O V I N C I A L G O V E R N M E N T
I N F R A S T R U C T U R E E X P E N D I T U R E S : C O N C L U S I O N S
The signicant provincial infrastructure expenditure
plans in the OR Tambo District Municipality will
provide a meaningful platform for social and
economic growth and development arising from the
opportunities such spending opens up in both therst and second economies.
Compared to other Districts and the Metro in the
Eastern Cape, OR Tambo District Municipality will
receive approximately 22% of the total provincial
infrastructure spend, making it the Distr ict with the
highest Provincial infrastructure allocation over the
current medium-term cycle.
It is import ant for social and economic infrastr ucture
to complement each other, thereby mutua lly
reinforcing the sum total of benets derived from
the inf ra st ructure expend itu re and its economy-
wide linkages.
It is necessary, but not sufcient, to just build new
infrastructure. Maintenance of existing infrastructure
needs to also be priori tised. Current ly, maintenance
of the Departments immoveable assets is poor
inevitably leading to rapid deterioration of buildings
and other assets. Maintenance funds have always
and may probably remain limited. Much of thelimitations with respect to maintenance can be
attributed to poor levels of denition with respect
to the respons ibi li ty for maintenance budgeting.
The distinc tion between levels of respons ibility
between Public Works and User departments as
reected by the infrastructure plans will go a long
way towards regularizing maintenance planning.
Finally, it is commendable that a paradigm shift is
evident through the infrastructure allocations,
with the focus on the quality of infrastructure
and services, as opposed simply to the quantity,
especially in education and health.
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S T R A T E G I C I N F R A S T R U C T U R E P R O J E C T :K E I D E V E L O P M E N T C O R R I D O R
The Kei Development Corridor is an initiative
instigated by the Provincial Department of Roads
and Transport to promote economic development
in an area surrounding the Kei Rail link from East
London to Mthatha. Such is the importance of the
Kei Development Corridor that over R300m is
being earmarked for the Kei Rail by the Provincial
Government over the medium term.
It is envisaged that the implementation of the
Kei Rail project will stimulate development of a
development corridor by:
Stimulating economic ac tivities where transpor t
constraints are the primary reason for the
unsustainability and/or non-viability of the projects;
Providing an improved transport option for existing
economic activities and thereby allowing for increased
prot and sustainability and greater efciency;
Providing a general economic catalyst to promote
and develop economic initiatives and improvement s
in social welfare throughout the economy;
Creating other forward-backward linkages with other
major projects (e.g. Bio-fuels, Forestry and Timber)
The Kei Development Corridor falls predominantly
within three Distric t Municipalities, namely: Amat-
hole, Chris Hani and OR Tambo District Municipali-
ties (ORTDM). ORTDM encompasses seven local
municipalities, including three (KSD, Mhlontlo and
Nyandeni) that lie within the KDC project area. The
main urban centres within the ORTDM that fall in-
side the KDC area are Libode, Mthatha, Mqanduli,
and Ngqeleni.
Mthatha is a rst order node of the KDC, which means
that it must form the backbone of the KDC and there-
fore the focus is on industrial and transport related
infrastructure. Libode, Mqanduli and Nqeleni are sec-
ond order nodes in KDC. Second order nodes are
smaller towns or commercial focus points providing in
the basic needs of the sur rounding set tlements.
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It is recognized that stimulating economic develop-
ment in the area surrounding the Kei Rail will be
important in ensuring the viability of the Kei Rail.
Within thi s contex t, the pr inc iple objectives of the
KDC Economic Initiative are:
Identication of the economic acti vities whose
viability (and hence implementation) are solelydependent on the rail corridor or that would
substantially benet from the rail development;
Identica tion of the general economic development
potential within the hinterland serviced by the Kei
Rail Development Corridor (KDC) and
Assessment of potential linkages and benets that
could accrue from the proposed improvements to
rail (and supporting transport) infrastructure.
Identication of key infrastructure investments
required to support the KDC
For the OR Tambo Distr ict, the Kei Development
Corridor provides a unique opportunity for
focused investment in the Corridor area, as the
significant provincial investment in this project
provides a platform for further municipal
interventions to realize the full potential of the
Kei Development Corridor.
Linkages between the KDC and potentially mega
agship projects in OR Tambo:
Bio-Fuels Industry:
The proposed project involves the establishment
of an integrated food crop and canola bio-diesel
industry as an economic anchor for accelerated
agrarian transformation in the Eastern Cape.
The proposal is to develop extensive integrated
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rotational cropping (canola & maize or equivalent)
to supp ly a new canola bio -diesel process ing fac ili ty
in the East London IDZ.
Canola biodiesel is a potentially attractive product
in Europe due to its low freezing point and the
fact that European legislation requires that the
proportion of bio-fuel consumption (in relation tototal fuel s) ri se to 5.75% by 2010.
Forestry & Timber Processing Industry:
Development of timber processing activities around
the Langeni area to ser ve the proposed development
of the Ugie/Matiwane forestry area . Facilities include
saw mills, chipboard manufacturing and potentially
furniture manufacture. The key anchor is the PG
Bison/Steinhoff initiative in Ugie-Maclear.
Essentially, the conservation and efcient utilization
of Kei Rail can only succeed as a partnership between
local communities, government and private sector.
Growth and development in the East London to
Mthatha corridor will succeed if it is government
driven (provincial, district and local), private sector
funded, labour conscious, community based andenvironmentally friendly
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f i gh t p o v e r t y P O V E R T Y I N D I C A T O R S
Levels of household grant dependence in Or Tambo is
signicantly higher that the provincial average of 64%
with three quarters (75%) and more of households
receiving social grants. The exception is KSD where
63% of households rely on social grants.
Household member is receiving social grant
Yes No
% %
Eastern Cape 63.6 36.4
O.R.Tambo 75.1 24.9
Mbizana 80.2 19.8
Ntabankulu 81.3 18.7
Qaukeni 81.7 18.3
Port St Johns 77.7 22.3
Nyandeni 74.5 25.5
Mhlontlo 77.4 22.6
King Sabata
Dalindyebo62.9 37.1
Source: RSS 2006
Unemployment levels in the OR Tambo District are
higher than the provincial average, underscoring
the levels of chronic pover ty and inequali ty withi n
the dis tr ic t. As a result, household incomes in the
district are generally low.
Working Age& not working
Unemployedand lookingfor work
Householdincome< than
R1500/month
% % %
Eastern Cape 78.1 32.6 65.2
O.R .Tambo 84.6 34.6 71.6
Mbizana 89.5 39.5 84.9
Ntabankulu 82.1 30.1 73.0
Qaukeni 87.2 32.8 76.7
Por t St Johns 89.6 44.7 5.2
Nyandeni 85.0 33.7 67.9
Mhlontlo 83.2 30.5 71.5
King Sabata
Dalindyebo79.3 34.2 56.6
Source: RSS 2006
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M U N I C I P A L - M U N I C I P A L C O O P E R A T I O N
Engagement meetings between the ORTDM and
the LMs have rai sed is sues about how municipal ities
can be brought up to speed to address the prior ities
interventions required to unlock the social and
economic potential in the their local areas.
It was identied that the Municipalities need to
address by-laws, policies and performance governing/
in relation to, amongst other issues, trade regulation,
procurement, land use, zoning, plans for the sector s,
resources like staff and funding/budgets required to
implement the priorities.
I D P A L I G N M E N T
All Municipal IDPs in OR Tambo give attention to
building their own delivery capacities. The filling
of critical vacancies (e.g. Municipal Managers etc)
is critical, as are measures to attract and retain
critical skills.
IDPs have improved over the last few years and
are generally aligned to PGDP in terms of agrarian
transformation , public sector transformation, human
resource development, economic diversication
and tourism, infrastructure provision, and ghting
poverty.
However, there are some impor tant gaps in the
context of provincial alignment (e.g. housing, EPWP,
malnutrition).
IDPs do not yet integrate the activities of all three
levels of Government (such as Biofuels (ASGISA).
The OR Tambo IDP devotes considerable attention
to bui lding its own capacit y and tha t of the local
municipalities. Perhaps more attention could be
given to how to improve co-operation with otherarms of Government
M U N I C I P A L B U S I N E S S C O O P E R A T I O N
The ORTDM together with the regional ofce of
the bus iness chamber (NAFCOC) held a work shop
tha t sought to iron out and remove any existing and
potential barriers to economic development in the
region. Studies undertaken indicate hat ORTDM as
the mos t poorest r egiona l economy in the countr y
and the major challenge faced by these two par tners
is turning around this economy.
In a continuous effor t to promote municipal -
business cooperation, the key areas of engagement
were identied as:
Establishment of a partnership between ORTDM
and the regional business chamber (NAFCOC).
Exploration of oppor tunities like, Umzimvubu water
catchment, N2 toll road, the bio-fuels industry etc.
Branding of ORTDM as an economic engine of the
province.
Establishment of an investment centre in the region
by NAFCOC.
m u n i c i p a l c a p ac i t y a n d c o o p e r a t i o n
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Establishment of business incubator and business
advice centers by NAFCOC.
A business ownership/leasing survey to be
undertaken and submitted by NAFCOC.
Expansion of business afliation networks by
NAFCOC to the inclusion of all sectors in business.
The joint development of a regional programme ofaction by the two par ties
Coordination of departmental programmes for the
identication of business opportunities therein.
Development of strategies for business
development advocacy.
The development and submission of factory
occupancy database and submission by ECDC to
the par tne rship programme.
Precise role denition of each partner to the
marriage.
The creation of an enabling business environment
by the DM for the business community to thrive.
Development of by-laws by the DM/LMs
Council business outreach programme.
LED forum meetings for coordination, experiences
and information sharing.
Observer status accorded to business in the LED
standing committee.
Infrastructure development monitoring.
Establishment PPPs to stimulate growth.
Business database establishment.
Business service and advice centre establishment.
Joint planning and programme setting for strategic
infrastructure development and rehabilitation
(airport, transport system, 2010 readiness, airport
conference facility, umzimvubu water cathment,
N2 tool road)
M U N I C I P A L / P R O V I N C I A L
D E P A R T M E N T / A G E N C I E S C O O P E R A T I O N
Among the key issues raised at the OR Tambo
District is the limited participation of provincial
government in the IDP planning processes. As such,
efforts to build participative government at the
local level are being undermined by the provinceoften sending junior ofcials without decision
making powers. The district expressed concern
about the role of the Departmen t of Housing, Local
Government and Traditional Affairs. This revolves
around the department not providing adequate
support and guidance to municipalities.
Other key issues emerged were the provincial
governments inadequate ability to plan spatially
(DMs and LMs) and the absence of alignment with
respect to planning, budgeting and even execution
between the two spheres. These need to be
addressed as they curtail the acceleration of service
delivery wh ich appears to be the major issue need to
be tackled in OR Tambo among other things . On that
score, close cooperation of spheres of government
remains critical as the delivery of social services is
not an exclusive local government competence but
depends on other spheres performance.
It is no doubt that the current Provincial IDP
Engagement process is the step in the right direction,
however the challenge would be to factor into results
of the district GDSs, IDP engagements to feed into
planning and review of both IDPs and PGDP.
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M U N I C I P A L / N A T I O N A L
D E P A R T ME N T S / S O E S C O - O P E R A T I O N
In the case of OR Tambo the Depar tment of Land
Affairs, Department of Housing, Department of
Labour and Department of Roads, Department of
Agriculture is among other key national departments
that the distric t needs to work with besides theDepartment of Trade and Industry. Although the
Department of Water Affairs and Forestry has by
and large been participative at local government level,
the scale and pace of eradicat ing water and sanitation
backlogs in the district leave a lot to be desired.
It goes with out saying that in order to address the huge
electrication and telephone backlogs particularly in
the former homeland areas, close cooperation with
Eskom and Telkom remains critical.
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c o n c l u s i o n The ORTDM is clearly grappling with very
entrenched problems of poverty and unemployment,
and progress seems to have been quite slow so far
in addressing these problems. It is of concern that
while public investment in the District is increasing,
there seem to be ver y few substantial pr ivate sector
projects in the pipe-line.
The Summit is potentially very important for
setting in motion processes to improve municipal
planning and management capacities, particularly
with respect to co-operation with other arms of
Government, and with Business. The private sector,
business-support agencies and the municipalities
need to work together to develop the detailed
priority industry action plans mentioned earlier.
The outcome of the Summit should be the
development of a Framework Agreement that
outlines institutional roles and responsibilities to
accelerate growth and development in the District.
This Agreement should also suggest the mechanisms
and processes for monitoring progress on the decisions
reached and the governance framework for ongoingdialogue and feedback among the social partners.
The district GDS presents a unique opportunity
for constructing partnerships and harnessing the
collective energies and contributions of a range of
actors and role players with a view to enhancing
accelerated and shared growth.
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The district GDS has the potential to unlock the
potential of all localities, and ensur e that all sectors
of society identif y their role and contribute to the
common national objective to build a better life
for all.
Generally speaking, there are six key drivers tounlocking economic potential and job creation
as well as enhancing competitiveness in the
OR Tambo Distric t:
1. Agriculture and agri-business remains at the heart
of the district economy in spite of its stagnant and
even declining contribution to the district economy.
And its importance could not be more emphasised
than through its potentia l to contr ibu te towards
two mega pro jec ts that a re be ing rolled ou t by both
National and Provincial government:
a) Forestry and Timber Industries Development,
b) Bio-fuels,
c) Umzimvubu Basin
2. Processed agricul tural goods offer signicant ly
more economic value than the non-processed
products. It is therefore important to consider the
encouragement of the processing and manufacturing
of goods within the District
3. Tourism is an untapped resource within the District. An
integrated approach must be taken in the promotion
and development of potential tourism sites.
4. Massive infrastructure roll-outs (including enhance-
ments and developments in ICT) envisaged under
ASGI-SA, the PGDP and the district and local in-frastructure development plans to address backlogs
and maintain existing and refurbish aging infrastruc-
ture, could be used to st imulate economic activ ity
throughou t the construc tion value chain .
5. Local procurement cou ld offer a wide range of
economic opportunities throughout all sectors of
the local economy.
6. Investing in , and aligning skills development to the
identied key growth sectors will further enhance
the locationa l compet it ivenes s of the OR Tambo
District Area.
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A C R O N Y M SASGISA Accelerated Shared Growth
Initiative of South Afr