The dplg June 20071 PRESENTATION TO THE PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT...

the dplg June 2007 1

PRESENTATION TO THE PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL

GOVERNMENT

BRIEFING ON THE NODES

12 June 2007


PRESENTATION OUTLINE

1. NATIONAL AND PROVINCIAL SECTOR SUPPORT(slides 3-

5)

2. FINDINGS OF STUDIES DONE:a. impact assessments of 4 nodes (slides 6-24)

b. economic profiling research (slides 25-45)c. URP lessons learnt (slides 46-51)

3. KEY ISSUES FOR INTERVENTION (slides 52-53)


NATIONAL AND PROVINCIAL SECTOR SUPPORT

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National level:

Coordination through the inter departmental task team

Consists of representatives of the three spheres of government

Well represented: challenges with DTI, DST, DSR

Clear contribution at nodal level from Agriculture, Health, DWAF, DME, DSD, Housing, DOL,DOT,DEAT, DOC.

Idea of the Financing Protocol introduced in 2005, to encourage sector to have MTEF plans and resource allocation for each node



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PROVINCE COMMENTS

Limpopo Office of the premier involved

In principle agreement to coordinate through the provincial Planning forum , PCF, Mayors’ coordinating forum and municipal coordinating forum

Most provincial sector departments and office of the premier made financial commitments to the nodes

Change in the provincial coordinator- created gap and has implication for continuity

No political champion visit recently

Mpumalanga Provincial/technical support weak

No coordinating structure- IGR for a explored and recommendations made to coordinate through some existing structures at both provincial and municipal level

Political champion changed recently – has to be oriented

Few departments made financial commitments

No political champion visit recently

Northern Cape New provincial coordinator

No coordinating structure- meeting with HODS To explore structures pending

Political champ visits monthly- technical and political meeting



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PROVINCE COMMENTS

Western Cape Good technical and political support from province.

Political champion visits regularly in rural nodes. Urban nodes: no visits

Office of the premier participates in M&E Structures

Eastern Cape Coordinating structure exists and meets in the nodes

Designated official per node appointed and supportive of the programme: dplg has placed a technical advisor in the unit.

Office of the premier participates in M&E sessions

Financial resources allocated to all the nodes also to address the PGDS priorities

GDS held in all the nodes

All nodes had at least one political champ visit between February and April 2007

Free state Coordinating structure exists

Official appointed and located in the node

Provincial coordinators changed six times since 2003: implications for continuity

Official from the office of the premier assigned responsibility to contribute to ISRDP

Had one political champion visit in April

KwaZulu Natal Programme moved to rural development unit

Coordinators changed in 2004

Efforts made to reestablish coordinating structure in 2006

Challenges of aligning with national approach to implementation of the programme and reporting.


RESEARCH DONE IN THE NODES.

IMPACT ASSESSMENTS IN 2 RURAL AND 2 URBAN NODES : SUMMARY OVERVIEW OF KEY FINDING

- BASIC SERVICES- HOUSING- ECONOMIC DEVELOPMENT- JUSTICE CRIME PREVENTION, SAFETY- COOPERATIVE GOVERNANCE


RESEARCH DONE IN THE NODESPRELIMINARY IMPACT ASSESSMENTSPRELIMINARY IMPACT ASSESSMENTS

SUMMARY OF KEY FINDINGSSUMMARY OF KEY FINDINGS Delivery Of Basic ServicesDelivery Of Basic Services• Generally an improvement in all 4 nodes eg. 80% improvement in access to water

in Maluti-a-Phofung, electricity access in Alexandra improved from 72% in 2001 to 88% in 2005.

• Limited household incomes constrains the use of services such as electricity, and the free 50Kw is deemed to be inadequate for families with no source of income.

• Expectations shift and increase as soon as basic delivery takes place – communities then expect higher levels of services and are unhappy about costs and quality (power outages, taste of water).

• In urban nodes, most of funding spent went on extending and upgrading bulk infrastructure & maintenance of old and neglected infrastructure – this “under-the-ground: investment is not appreciated by communities.

Implications• The Housing programme and infrastructure investment programme can hinder or

help the rate and pace of service delivery.• Communities are concerned with quality and affordability and we are not

measuring these aspects of service delivery.• More attention is needed to improve incomes and ability to pay for services


RESEARCH DONE IN THE NODES. PRELIMINARY IMPACT ASSESSMENTS:PRELIMINARY IMPACT ASSESSMENTS:

SUMMARY OF KEY FINDINGS: SUMMARY OF KEY FINDINGS:

HousingHousing• Blockages caused by lack of land, eligibility of communities, the need for relocations can take

up to 5 years to resolve, resulting in a slow down of the entire development processes.• The current funding model for building rental housing meant that rental housing was

constructed but is unaffordable to the community.• Poor quality construction in Motherwell meant that of the 6000 houses built, 1000 were unfit for

habitation.• In Maluti-a-Phofung some felt the housing programme undermines traditional family structures

and lifestyles.• Housing was communicated as the key deliverable, while in most cases this not deliverable at

the scale and pace promised.

Implications• Communicating clear, consistent and realistic delivery targets are key for managing community

expectations. If housing targets are not met it affects negatively the community views of the entire development programme.

• The housing policy may have unintended consequences of fragmenting traditional homesteads and families.

• Land transfers and land redistribution delays delivery.• In urban nodes where infrastructure upgrading and land purchases must take place, housing

delivery has a long lead-in time.


RESEARCH DONE IN THE NODES. PRELIMINARY IMPACT ASSESSMENTSPRELIMINARY IMPACT ASSESSMENTS

Summary of key findingSummary of key finding

Economic DevelopmentEconomic Development

• LED support has made no significant impact on long-term livelihoods and sustainable job creation.

• Short term improvements in income has been facilitated through the infrastructure programmes and through programmes aimed at improving food security (food gardens etc).

• Capacity of district and province to plan and stimulate economic growth is poor – most projects are “poverty-alleviation” in nature and relies heavily on the municipality for subsidies to ensure sustainability.

• No clear distinction and variable plans for viable economic development interventions and social welfare interventions.


RESEARCH DONE IN THE NODESPRELIMINARY IMPACT ASSESSMENTSPRELIMINARY IMPACT ASSESSMENTS

Economic Development: Economic Development: implicationsimplications

• Very high expectations from communities in the nodes to obtain jobs through the development programme – these cannot be me and puts pressure on the development programme.

• Communities could take more responsibility for management of LED projects with a social welfare focus, with government reducing its involvement, focusing more on oversight and start-up support.

• Economic development strategies for the nodes need strengthening, with more focus on skills development and business growth.

• A comprehensive plan needed by government to intervene to change the skills profile of nodal communities.

• Integration is needed at nodal level, to provide one point where potential

entrepreneurs can come for a range of support services.


RESEARCH DONE IN THE NODES PRELIMINARY IMPACT ASSESSMENTSPRELIMINARY IMPACT ASSESSMENTS

SUMMARY OF KEY FINDING:SUMMARY OF KEY FINDING:

Justice, Crime Prevention And SafetyJustice, Crime Prevention And Safety• No consistent downward trend in crime in urban nodes.• Safety is still seen as a high priority concern for nodal residents.• Positive support from national and provincial in the form of construction of

new police stations and magistrate courts.• Interviews of beneficiaries show concerns with quality of service: perceived

lack of professionalism from local police, understaffing, poor response time.

Implications• Upgrading of policing and justice infrastructure has made some impact, but

has made not significant impact on community perceptions of safety.• Crime prevention initiatives are uncoordinated and duplicated by a range of

stakeholders (national, provincial, municipality, NGOs).• Cooperation between various agencies are needed, with more focus on

community awareness, confidence building, crime prevention.


RESEARCH DONE IN THE NODES PRELIMINARY IMPACT ASSESSMENTSPRELIMINARY IMPACT ASSESSMENTS

SUMMARY OF KEY FINDINGSUMMARY OF KEY FINDING

Cooperative GovernanceCooperative Governance• National and provincial line functions coordination with nodal priorities remain

weak.• Positive results with the linkages between CDW, Ward Committees and Community

Liaison Officers (in Alfred Nzo and Motherwell.• Lack of role clarification and the linkages of the CDW programme to the province

cause some conflict (Maluti-a-Phofung, Alexandra).• It took at least 2 years to put in place the frameworks, systems and processes for

effective implementation, impacting on the delivery targets.

Implications• The multiple forums and engagements to facilitate coordination must be streamlined

– formal IGR structures, in line with IGR Act, must become the forum where sector departments plan with and support the nodes.

• Performance contracts of officials to be used as a tool to ensure commitments are made to the nodes and are met.

• Role clarification needed for CDWs, Ward Committees, ward Councilors, CLO’s, in some cases.

• Ward committees need support and training to assist them in their communication function.



PRELIMINARY IMPACT ASSESSMENTS PRELIMINARY IMPACT ASSESSMENTS ::

DETAILS PER NODE:DETAILS PER NODE: MALUTI-A-PHOFUNG MALUTI-A-PHOFUNG


PRELIMINARY IMPACT ASSESSMENTS: MALUTI-A-PRELIMINARY IMPACT ASSESSMENTS: MALUTI-A-PHOFUNGPHOFUNG

Key findings for service delivery achievement: Maluti-A-PhofungKey findings for service delivery achievement: Maluti-A-Phofung

• Water, sanitation and electricity: Backlogs in water, sanitation and electricity have been halved between 2001 and 2006 – 46000 new water connections, 50200 sanitation connections and 30400 new electricity connection. (these figures from the municipality do not in some cases talk to figures from DWAF and STATSSA).

Difficulties with connecting rural communities to the grid as well the need for more capacity in the grid is limiting new connections at the moment.

• Housing:7688 houses have been delivered to date, with 4400 new subsidies approved. The housing backlog is still significant – of the 35 860 backlog, 25 000 is in the deep rural areas.


PRELIMINARY IMPACT ASSESSMENTS: MALUTI-A-PHOFUNG

Key findings for Economic Development achievements: Maluti-A-PhofungKey findings for Economic Development achievements: Maluti-A-Phofung

• Projects to date have been mainly of a “poverty alleviation” nature, requiring significant investment from the municipality and ongoing subsidization. These are communal gardens, small community poultry and livestock projects.

• A LED directorate has been established in the municipality in 2005 and will assist in placing more focus on strategic economic development and the role of the municipality.

• But, it is clear that interventions to date have not made any significant impact on the economic well being and the skills profile of the community.




DETAILS PER NODE:DETAILS PER NODE:ALFRED NZOALFRED NZO


PRELIMINARY IMPACT ASSESSMENTS: ALFRED PRELIMINARY IMPACT ASSESSMENTS: ALFRED NZONZO

Key findings for service delivery achievement: Alfred NzoKey findings for service delivery achievement: Alfred Nzo

• Water, sanitation and electricity: 72000 (57%) of hhs has benefited from provision of water, with the backlog standing at 54000 hhs in 2006 – the R108m currently being spent on 25 water projects will not be sufficient to eradicate the backlogs. As of 2006, 47% of hhs receive sanitation services below RDP standards. The rural sanitation programme currently delivers 10 000 VIP toilets per annum – but to eradicate the backlogs this programme will have to be accelerated to 30 000 units per annum.

• Electricity:10710 connections made between 2003 and 2005. 69% benefit from FBW; FBE has improved from 5% to 33%

• Housing: 4521 units at the cost of R82.9billion were planned for 2006. 76% of housing project had been completed benefiting 4332 hh; Additional 1006 disaster relief houses were built 2001-6.


PRELIMINARY IMPACT ASSESSMENTS: ALFRED NZO

Key findings for Economic Development achievements: Alfred NzoKey findings for Economic Development achievements: Alfred Nzo

• LED projects being implemented are creating jobs and are well received by community.

• But, these initiatives are not set up to deliver jobs at scale – the majority of new employment being created is still through the infrastructure investment programme.

• Most projects are in a healthy state, with some support from stakeholders such as Dpt Agriculture. Early signs are that poor business management skills may limit the success of these projects.




DETAILS PER NODE:DETAILS PER NODE:ALEXANDRAALEXANDRA


PRELIMINARY IMPACT ASSESSMENTS: PRELIMINARY IMPACT ASSESSMENTS: ALEXANDRAALEXANDRA

Service delivery achievement: AlexandraService delivery achievement: Alexandra

• Water and sanitation: In Alexandra, 79% of households have direct water connections within the stand and 21% use communal taps. Access to flush toilets now stand at 97% (an increase from 86% in 2001).

• Electricity: Electricity connections in Alexandra has improved from 72% (2001) to 88% (2005), with 17000 new pre-paid connections installed since 2001. No significant improvement in the use of electricity for heating, but the use of electricity for lighting increased dramatically from 62% to 88% and for cooking from 55% to 84%.

• Health services: Alexandra has 4 clinics as well as access to Edenvale hospital. Upgrading of all these facilities have been undertaken and staff in these facilities have benefited from skills development interventions. 20 people have been trained as Community care workers. Three ambulances recently purchased have improved emergency services.

• Housing: large scale housing delivery in Alexandra has been constrained by the need for relocations (de-densify), challenges with acquiring private owned land for housing, need for affordable rental housing, overcrowding of hostels, difficulties with formalising backyard shacks, the need to upgrade and extend the capacity of bulk infrastructure. In spite of this, to date, 1200 units have been built and plans in place for 11 000 units. 3000 units were built for relocated families. 5434 stands are being transferred to qualifying households. After 5 years of negotiations, an MOU and some funding is now in place to acquire private land for new housing development.


PRELIMINARY IMPACT ASSESSMENTS: ALEXANDRA

Economic Development achievements: AlexandraEconomic Development achievements: Alexandra

• As of 2005, only 7% of hhs earn more than R5000/month, with 20% existing on less than R1000/month.

• In 2005, 33% of people were employed full-time, while 18.5% working part-time or doing piece work.

• Given the poor skills profile, low incomes and high unemployment in the area, the economic interventions are now starting to focus on access to employment information, training of entrepreneurs and assisting with job placing.

• To date, 17 000 short-term job opportunities have been created, mainly through the construction processes in the node.

• A Business Support Centre and Employment information Centre have now been established and the Dpt of Labor has committed R25m to fund training of residents for the next 5 years.




DETAILS PER NODE:DETAILS PER NODE:MOTHERWELLMOTHERWELL


PRELIMINARY IMPACT ASSESSMENTS: PRELIMINARY IMPACT ASSESSMENTS: MOTHERWELLMOTHERWELL

Service delivery achievement: MotherwellService delivery achievement: Motherwell

• Water and sanitation: 48% of households are benefiting from FBW and 85% of hhs are benefiting from basic and above sanitation services. The bucket system is still in use at a limited scale. At 2006 all hhs are receiving some form of refuse removal service (up from 88%). A community-cooperative is being formalised to [provide this service in the informal settlement.

• Electricity: 29 108 hhs have access to electricity as of 2005 (out of 32000 hhs), of which 48% benefit from FBE.

• Health services: 7 facilities are operating, with the all the fixed clinics having active community health committees. Lack of staff, equipment and integration between metro and province services is a challenge.

• Housing: 6000 houses have been delivered to date, with projects for 4551 houses are in various stages of completion. Quality construction is a challenge – of the 6000 houses built, 1000 were declared unfit for habitation and corrective action has been undertaken.


PRELIMINARY IMPACT ASSESSMENTS: MOTHERWELL

Economic Development achievements: MotherwellEconomic Development achievements: Motherwell

• 2004 research shows that of the 630 local small businesses, the majority are survivalist and operate to meet basic household needs, with very limited labor absorptive capacity.

• To date, 6000 short term jobs have been created through the infrastructural programme. 394 SMMEs were hired and 180 trained through the programme.

• A small business incubator, Hydroponics project, ploughing fields and car wash projects has been established, subsidized with municipal funding – anticipated impact of these project is small.

• Most of the projects to date have been more “poverty alleviation” focused, relying on continues subsidization from the municipality.

• A SMME Development Strategy and a Skills Audit has now been completed – as these areas are not the competency of the municipality, strong support is needed from the province, DTI, Dpt Labor to change the poor skills profile and low levels of economic activity in this node.



ECONOMIC PROFILING OF THE 21 RURAL AND URBAN NODES


THE NODAL ECONOMIC DEVELOPMENT PROBLEM

Insufficient and unreliable economic information Project-specific approach vs strategic, nodal-wide advantages Deficiencies of economic inputs into IDPs and nodal business plans Limited economic productive capacity in the nodes (eg. business capital,

infrastructure, marketing info etc) Absence of specified role for, specifically sector department.

In response to these challenges, a Programme of Action for BuildingProductive and Sustainable Nodal Economies was developed. This POAis intended to:

provide an understanding of the economic potential in the nodes

identify opportunities for public and private sector investment

identify barriers and constraints to economic activity

recommendations on strategic interventions to improve the nodal business climate (including aspects of current public agencies/institutions tasked with supporting local entrepreneurs)


NODAL ECONOMIC PROFILES:CONTENT OF EACH NODAL ECONOMIC PROFILE

SnapshotSnapshot

Area SummaryArea Summary

Key ChallengesKey Challenges DemographyDemography

Income and EmploymentIncome and Employment

HealthHealth

Development ScorecardDevelopment Scorecard

GovernanceGovernance

IDP AssessmentIDP Assessment

EducationEducation

IntroductionIntroductionIntroductionIntroduction Key Data PointsKey Data PointsKey Data PointsKey Data Points Current ActionCurrent ActionCurrent ActionCurrent Action

Introduces the node; summarizes key issues

Lists pertinent acts and figures

Describes current interventions

Geography, Vegetation, Climate, Soil

Geography, Vegetation, Climate, Soil

Spatial DevelopmentSpatial Development

Development ProjectsDevelopment Projects

Local People PortraitLocal People Portrait


Rural Nodes: What needs to be done? Solutions to Constraints / Investment Opportunities (1/5)

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A large, landmark tourism investment is needed to increase the profile of the area substantially. This will have positive spin-offs for small businesses as well

The agricultural potential of the area needs to be realised through provision of funding for local subsistence farmers to upscale to commercial ventures, and upgrading of infrastructure such as irrigation systems, market access routes, storage facilities, etc.

Investments which provide direct revenue for the municipality will help to address public service backlogs. The proposed hydro-electric plant at the Jozini Dam is a prime example of this, since it will address electricity backlogs, and will also generate revenue through the sale of electricity to other parts of the country and neighbouring states

Investments in the tourism sector need to be supported and fast-tracked because this is the sector that provides the multiplier effect for growth in the rest of the economy. Black entrepreneurs need to be educated and trained to be able to participate in this sector and reap rewards from it. This must be done in conjunction with creating new tourism initiatives in the rural area

The district municipality needs to provide incentives for new investment, for example, by waiving reticulation fees, lowering planning fees, providing rates holidays (e.g. for the first 5 years), reducing the cost of water, electricity and waste removal to be more competitive, etc.

Build a larger Chamber of Commerce, and possibly become more integrated with the Durban Chamber of Commerce, to allow members to have better visibility on investment opportunities and to work together to capitalise on them

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Improve basic road, water and electricity infrastructure

Create a public-private sector model to incentivise private sector investment in agricultural value added processing

Buy in from a provincial level

Collective marketing strategy for the node and neighbouring nodes

Create a forum for all types of farmers to share experiences, knowledge and networks

Incentive structure for small and large farmers to form co-operatives or joint ventures between themselves



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The area has the opportunity to produce a range of crops, livestock, and forestry products - national demand conditions are particularly strong for meat and forestry products; however, there is strong local demand for grains, fruits and vegetables

Investment opportunities in the area generally relate to agro-processing, including biofuel production, milling, and hide processing, or are linked to eco-tourism

Key constraints include low education and skill levels, high input costs, weak market access, and in the case of tourism, a lack of strategy and marketing efforts

To address this, it is imperative that skilled mentors are made available to farmers, that a collaborative body be developed to assist in sourcing inputs, marketing and transporting products

Finally, the private sector should be targeted with an aggressive investment promotion programme


Make the land claim/land tenure process more transparent

Create a public-private sector model to incentivise private sector investment in the tourism and forestry sector

Marketing strategy for the node

Address skills gap for subsistence farmers

Address skills gap within municipalities

Mentorship programmes to bridge the skill gap between emerging and commercial farmers

Make the land reform process more transparent

Create a public-private sector model to incentivise private sector investment


Manufacturing in Msinga



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Create the incentives for tourists and operators to come to the area: complete roads, build accommodation in eMakhosini, create attractions, develop products, etc.

Work with tour operators and tourism businesses within and nearby the node to create and market attractive packages that link multiple destinations

Support key investment opportunities, including the Pongolapoort Dam development and the construction of lodges in eMakhosini Valley Build a mentorship system between established and emerging farmers Create structures / organizations to aggregate emerging farmers and decrease input and transport costs Attract private investment – a key place to start is the opportunity for a sugar mill on the Makatini flats, which would be a great boost to

emerging sugar farmers in Zululand


Mentorship programmes to bridge the skill gap between emerging and commercial farmers

Develop an effective marketing strategy and delivery mechanism for tourism

– There is a need for supporting investments in the sector, because this is the sector that provides the multiplier effect for growth in the rest of the economy

– Black entrepreneurs need to be educated and trained to be able to participate in this sector and reap rewards from it. This must be done in conjunction with creating new tourism products highlighting the area scenic beauty

Water, infrastructure and skills are all common constraints across most sectors

Promising investment opportunities include:

– Mining: Several new mines to be developed; opportunities for supporting industries (accommodation, housing, retail, restaurants / catering, processing)

– Agriculture: Bio-diesel production to supply mining industry; fruit and vegetable processing plant

– Tourism: Vacation property and resort development



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Create a public-private sector model to incentivise private sector investment in agricultural value added processing

– Buy in from a provincial level

Collective marketing strategy for the node and neighbouring nodes

Create a forum for all types of farmers to share experiences, knowledge and networks

Incentive structure for small and large farmers to form co-operatives or joint ventures between themselves

A comprehensive tourism strategy must be developed and implemented A comprehensive agriculture and land use plan must be developed and implemented (including: development of veterinary support

services, utilisation of natural resources, priority to agri-processing investment opportunities) Municipality and other government instruments can assist cooperatives and increase viability of community projects Blockages and service backlogs in the system must be addressed Land claims need to be urgently fast tracked Bushbuckridge can exploit the fact that they are in a UNESCO Biosphere, but needs to integrate its tourism activities into provincial

tourism plans

Scale up current initiatives like Karoo Leather and Beaufort West Hydroponics

Build a correctional facility outside Beaufort West

Investigate the opportunity to introduce more game in Karoo National Park

Make Karoo Lamb a protected brand to increase the value of meat produced in Central Karoo

Upgrade the rail link between Gauteng and Cape Town



Actively facilitate and incentivise private sector investment in agricultural value added processing in cooperation with the District Municipality as well as Provincial departments and agencies

Develop an effective branding and marketing strategy for the area in respect of both tourism and agricultural offerings

Develop and implement a spatial development framework for the node to actively manage development and investment and more effectively retain potential benefits


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The district and local municipalities must become more efficient in dealing with the private sector when potential investment opportunities are being undertaken (reduce delays)

Focus on a few specific opportunities that prove to be both viable and sustainable

Key learning from past projects must be applied to guide future actions

Municipality must initiate projects but ensure that the beneficiaries take control and responsibility for future activities


Urban Nodes: What needs to be done? Solutions to Constraints / Investment Opportunities (1/3)

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In the long-term Kimberley could be positioned as an important hub in the regional flow of goods between Johannesburg and Cape Town, and between Durban / Richard's Bay and the west coast of Southern Africa. This will require that investment strategies of entities in the national transport network are designed to achieves this, rather than some other pattern.

In the absence of being able to reposition Kimberley in the national spatial economy, attention must be paid to up-skilling residents for opportunities outside of the area and eliminating any obstacles they may have in moving elsewhere.

Kimberley’s short-term opportunities lie in mineral beneficiation, tourism and agro-processing. Given the relatively high quality of the Northern Cape’s matric results, it is possible that further opportunities in the services space – eg call centres – exist.

In Galeshewe, the opportunities for any meaningful job creation revolve around housing delivery and public sector construction.

Close Skills Gap: Raise quality of basic education, improve English language skills, establish tertiary institutions in area / trade schools, establish apprenticeship and internship programmes, etc.

– Target growth sectors in the Durban economy (knowledge industries, chemicals, metals, transport and logistics), as well as construction and trade skills to help workers access employment opportunities along the growing North Coast

Support Local SMME’s: Reduce constraints to local business growth through an ongoing business support service that would provide mentorship and help entrepreneurs create business plans, apply for funding, and access larger markets. Also, build quality trading space located in high traffic, secure areas.

Market the area to large private investors and continue to improve the environment for external businesses

The housing market is beginning to tick over, but concerns about the enforceability of property rights remain

The area’s business climate is poor and more work needs to be done on addressing this

Much more attention needs to be paid on increasing residnetial densities

Given Motherwell’s proximity to Coega, attention should be paid to maximising the development potential of this by (a) focusing skills training in Motherwell on the skills needed in Coega and (b) giving its residents preference in allocating employment from Coega


Focusing on business upgrading through building partnerships with businesses in the surrounding area, while also encouraging formalisation, may improve the business environment

Moving more swiftly on tenure issues will help unlock Alexandra’s potential Developing the franchised landlord model, as well as the other housing stock and tenure options which the ARP has developed, offers

the prospect of real improvements to the area

The erection of decent housing in the area is a continuing priority Transport infrastructure needs to be coordinated in order to increase the efficiency of public transport The development of the transport node at Kuyasa should be based on Mitchell’s Plain’s Station Plaza in order to become a thriving

commercial centre Many businesses in Khayelitsha are highly informal, and assistance with formalisation would be helpful

Transport infrastructure needs to be coordinated in order to increase the efficiency of public transport The Mitchell’s Plain False Bay College branch is in need of funding from the Province’s FET grant Social interventions are necessary to limit gang activity in Mitchell’s Plain Informal businesses in Mitchell’s Plain need to be educated about the benefits of formalisation


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Top officials in Buffalo City municipality must commit to MURP for the project to have full-scale benefits

The Department of Labour could reassess the role of the Border Training College, which could be used to upskill Mdantsane residents and prepare them for future employment at the IDZ

National government departments need to accelerated their processes when and where their action is required, e.g. Mount Ruth development and providing vacant land for housing

National government needs to recognise that Mdantsane can only grow if East London grows – this may require harbour upgrades

A change in policies is required to improve the current human resource bottlenecks at MURP and at the municipality to speed up service delivery and planning processes


NODAL ECONOMIC PROFILING: INVESTMENT OPPORTUNITIES IDENTIFIED

Key projects are selected that could form the basis for kick-starting the nodal economy.

A profile of each project is provided: - description- economic rationale- employment- enabling conditions- contact details- status of available documents

FOR THE 13 RURAL NODES, 88 INVESTMENT OPPORTUNITIESHAVE BEEN IDENTIFIED AND PROFILED.


Economic profiling project: actions for sector departments

– Rural Nodes

– Urban Nodes


Rural NodesDepartment of Agriculture

Alfred Nzo

• Initiate mentorship programme between established and emerging farmers• Aggregate emerging farmers and decrease input and transportation costs• Prioritise support for investment opportunities in bio-diesel and agri-processing

Bushbuckridge• Create and implement comprehensive Agriculture and land use strategy which

incorporates development of veterinary support services, utilisation of natural fauna and gives priority to agri-processing

Central Karoo • Scale up initiatives like Karoo Leather and Beaufort West Hydroponics

Chris Hani• Initiate mentorship programme between established and emerging farmers• Aggregate emerging farmers and decrease input and transportation costs

Kgalagadi• Focus on a few specific opportunities that prove to be viable and sustainable• Apply key learnings from past projects

Maluti-a-Phofung • Create mentorship programme to bridge the gap between commercial and emerging farmers

Maruleng• Develop cooperative thinking - Cooperatives pool of resources and output, Partner

experienced private sector partners with new / emerging farmers• Identify new crops or new markets that require less expensive inputs

OR Tambo • Address skills gap for local subsistence farmersSekhukhune • Prioritise support for investment opportunities in bio-diesel and agri-processing

Ugu• Aggregate farmers around the Ugu Fresh Produce Market• Provide funding for specific investment opportunities with good potential

Ukhahlamba

• Create a forum for all types of farmers to share experiences, knowledge and networks• Introduce incentive structure for small and large farmers to form co-operatives or joint

ventures between themselves• Create a public/private sector model to incentivise private sector investment in value

added processing of agricultural productsUmkhanyakude • Provide funding for small farmers to upscale into commercial ventures

Umzinyathi• Address skills gap for local subsistence farmers• Create mentorship programme to bridge the gap between commercial and emerging

farmers

Zululand

• Build a mentorship system between established and emerging farmers• Create structures/organisations to aggregate emerging farmers and decrease input

and transportation costs• Attract private investor for sugar mill on the Makatini flats

1. Initiate mentorship programmes between commercial and emerging farmers

2. Aggregate emerging farmers and decrease input costs

3. Prioritise support for investment opportunities in bio-diesel and agri-processing

4. Scale up small scale viable initiatives to commercial

5. Address Skills gap for local farmers

6. Activate targeted investment opportunities

Summary of Actions for Dept of Agriculture

Source: Node Profiles


Rural NodesDepartment of Environmental Affairs and Tourism

Alfred Nzo • Leverage natural endowment and promote eco-tourism

Bushbuckridge

• Assist and support municipality in the development of a comprehensive tourism strategy.

– Develop strategy to leverage traffic on KNP access routes– Integrate BBR into district and provincial tourism plans

• Exploit BBR’s status as a UNESCO Biosphere and use it to draw more focus to Bushbuckridge

Central Karoo • Investigate opportunity to introduce more game in Karoo National Park

Chris Hani • Foster closer cooperation to ensure synergy between EC tourism strategies and local tourism initiatives

Kgalagadi• Up-skill the municipality to become more efficient in dealing with the private

sector• Focus on few specific opportunities that are bankable

Maluti-a-Phofung

• Develop an effective marketing strategy and delivery mechanism for tourism

– There is a need for supporting investments in the sector, because this is the sector that provides the multiplier effect for growth in the rest of the economy

– Black entrepreneurs need to be educated and trained to be able to participate in this sector and reap rewards from it. This must be done in conjunction with creating new tourism products highlighting the area scenic beauty

Maruleng• Create/determine organisational responsibilities of Provincial Tourism

authority, District Tourism office, Municipal tourism office• Develop and implement tourism strategy

OR Tambo • Create tourism marketing strategy for the node• Create private/public sector model to incentivise investment in the tourism

Sekhukhune • Promote and support investment in vacation property and resort development

Ugu • Educate and train local entrepreneurs to reap rewards from tourism

Ukhahlamba • Assist in the development for a collective marketing strategy for the node and neighbouring nodes.

Umkhanyakude

• Assist and support municipality in the development of a comprehensive tourism strategy.

• A large, landmark tourism investment is needed to increase the profile of the area substantially, and will have positive spin-offs for small businesses as well

Umzinyathi • Create private/public sector model to incentivise investment in the tourism

Zululand

• Create incentives for tourists and operators to come to the area– Build accommodation in eMakhosini, develop attractions and create

appropriate products and in the area– Co-ordinate the creation of multiple destination packages

• Lobby for the completion of roads to tourist spots

1. Assist local municipalities with the development and implementation of tourism strategies which are integrated into South Africa’s global tourism plan.

Summary of Actions for DEAT



Rural Nodes:Department of Land Affairs

Bushbuckridge• Settle claims on Bushbuckridge Conservation Area and other

estates where claims have halted development process

Maruleng• Resolve land claims as speedily as possible to prevent any

unnecessary disruption of agricultural production.

OR Tambo• Make land claim/tenure process more transparent• Speedily expedite outstanding land claims

Sekhukhune

• Facilitate private ownership of land for the development of

Mountain Resort and associated Drakensberg Escarpment

Cluster of Projects

Ugu• Prioritise land that has high tourism potential, and use this as

a lever to convince the key stakeholders of the economic benefit of expediting the process

Ukhahlamba • Speedily expedite outstanding land claims

Umkhanyakude• Work with the Land Claims Commission to resolve existing

claims

Umzinyathi • Make land claim/tenure process more transparent

Zululand • Speedily expedite land claims near around Pongolaport Dam

1. Formulate a policy applicable to all nodes – especially former homelands to fast track all claims.

2. Expedite the land claims as they seem to be the primary deterrent to private investment

Summary of Actions for Dept of Land Affairs



Rural Nodes: Department of Provincial and Local Government

Alfred Nzo • Improve basic road, water and electricity infrastructure• Target private sector investment with an aggressive investment promotion programme

Bushbuckridge• Increase capacity in LED, especially in Tourism• Address skills gap in local municipality to decrease reliance on consultants.• Improve basic road, water and electricity infrastructure

Central Karoo • Improve basic road, water and electricity infrastructure

Chris Hani • Improve basic road, water and electricity infrastructure

Kgalagadi • Ensure that beneficiaries take control for LED Projects

Maluti-a-Phofung • Address skills gap in local municipality

Maruleng • Improve basic road, water and electricity infrastructure

OR Tambo• Support private/public sector model to incentivise investment in the tourism and forestry

sector• Address skills gap in local municipality

Sekhukhune • Improve basic road, water and electricity infrastructure• Create framework to ensure that local businesses benefit from mining boom

Ugu • Improve basic road, water and electricity infrastructure• Provide new incentives for local investment

Ukhahlamba• Improve basic road, water and electricity infrastructure• Assist in creating and supporting of a public/private sector model to incentivise private

sector investment

Umkhanyakude• Improve basic road, water and electricity infrastructure• Focus on investments that will lead into direct revenue for municipality –e.g. the

proposed hydro-electric power station at the Jonzi Dam

Umzinyathi • Improve basic road, water and electricity infrastructure• Address skills gap in local municipality

Zululand • Improve basic road, water and electricity infrastructure

1. Increase municipality's ability to provide basic services and bulk infrastructure by

• Addressing capacity shortages in local municipalities

• Provision of adequate funding

• Up-skill the municipality to become more efficient in dealing with the private sector

• Focus on few specific LED opportunities that are bankable

2. Create and support private/public sector equitable partnerships that attract private sector investment

Summary of Actions for dplg



Rural Nodes: Department of Trade and Industry

Alfred Nzo • Target private sector investment with an aggressive investment promotion programme

Central Karoo • Promote Karoo Lamb as a protected brand to increase the value of

Chris Hani • Capacitate district municipality to create a growth strategy for the Queenstown industrial area

OR Tambo • Support private/public sector model to incentivise investment in the tourism and forestry sector

Sekhukhune • Create framework to ensure that local businesses benefit from mining boom

Ugu• Build a larger Chamber of Commerce and align it with the

Durban Chamber of Commerce to allow better visibility on investment opportunities

Ukhahlamba • Assist in creating and supporting of a public/private sector model to incentivise private sector investment

Umzinyathi • Assist in creating and supporting of a public/private sector model to incentivise private sector investment

Zululand • Support tourism development around Pongolapoort Dam• Attract private investment into sugar mill on Makatini Flats

1. Support a public/private sector model to incentivise private sector investment

2. Create greater visibility on investment opportunities for the private sector

Summary of Actions for Dept of Trade and Industry



Rural Nodes: Other Government Departments

DepartmentDepartment NodeNode ACTIONSACTIONS SUMMARYSUMMARY

Department of Water and Forestry Affairs

Zululand • Provide water to emerging farmers, especially in the vicinity to Injaka Dam Work with local municipalities and supply water from major sources to increase the delivery of drinking water

OR Tambo• Work with municipality to improve delivery of drinking water• Support private/public sector model to incentivise investment in the forestry

sector

Bushbuckridge • Support investment into Pongolaport Dam area and surrounds

Department of Arts & Culture Maluti

• Intervene in the Basotho Cultural Village within the Golden Gate National Park

– Lobby for a solution of the two parks merger which is preventing the already built accommodation from being utilized

– Approve the involvement of the private sector within the Village Expansion project

Take control of the development of Basotho Cultural Village

Department of Transport

Bushbuckridge• Tar roads to potential tourist sites including the proposed hiking train,

Andover and ManyeletiPrioritise development of transport networks in potential zones of economic developmentCentral Karoo • Upgrade the rail link between Gauteng and Cape Town

OR Tambo • Work with SARA to improve the basic road infrastructure

Zululand

• Coordinate with South African Roads Authority for the completion of roads in to tourist attractions.

• Support transportation development to Pongolaport Dam area and surrounds

Department of Public Works ALL

• Assist local municipality in the delivery of service backlogs Accelerate delivery of bulk infrastructure with priority given to potential commercial zones

Department of Education Bushbuckridge

• Re-activate Mapulaneng and complete revival of Hoxani training college Utilise teacher training colleges that were shut down

Department of Correctional Services

Central Karoo• Build a correctional facility outside Beaufort West Invest in the node while

attempting to address prison overcrowding



Urban Nodes: Government Departments

DepartmentDepartment NodeNode ACTIONSACTIONS SUMMARYSUMMARY

Department of Housing

Alexandra • Enforce of property rights and manage tenure issues Address housing backlogs

Galeshewe • Deliver public housing backlog

Khayelitsha • Prioritise erection of decent Housing

Mdantsane • Deliver public housing backlog• Increase densities in lower density areas

Motherwell • Increase residential densities to address backlogs• Enforce of property rights and manage tenure issues

Alexandra • Encourage the formalisation of businesses

Department of Trade and Industry

Galeshewe • Support viable projects that leverage the higher education standard in Galeshewe e.g. Call Centres

Support local SMMEs and reduce constraints to business growth

I.N.K

• Encourage the formalisation of businesses• Provide skills and mentorship to local business people• Support the construction of a local trading space• Market area to private investors

Khayalitsha • Encourage the formalisation of businesses

Mitchell’s Plain • Encourage the formalisation of businesses

Motherwell • Leverage Coega to support the business climate

Department of Transport

Galeshewe • Create transport network that will support Kimberly as a hub between Johannesburg and Cape Town

Increase the capacity for traffic through the nodes and increase efficiency of public transport

Khayalitsha• Increase the efficiency of public transport• Develop the transport node around Kuyasa and model it on

Mitchell’s Plain Station

Mdantsane • Cordinate SARA to initiate developments around Mt Ruth Station

Mitchell’s Plain • Increase efficiency of public transport

Department of Labour Mdantsane • Make use of, sell or re-establish Border Training Centre Re-assess role of

Training Colleges



NODAL ECONOMIC PROFILING: NEXT STEPS

The Profiles are intended to act as a decision support tool for governmentand other stakeholders who would like to understand and act on theeconomic character and potential for each node. Work to be done in 2007/08 – 2009/10:

1. Cabinet Lekgotla: formally report on progress to date, and next way forward activities. Future reporting in line with the GPoA

2. Design an Institutional Support Mechanism – off the findings of the national, provincial and municipal economic development institutional review

3. National Nodal Economic Development Indaba: formally launch the Nodal Economic Development Programme (The Profiles, Atlas, the Agency and concrete implementation support commitments)

4. Nodal Economic Development Programme of Action: A consolidated implementation scheduling in the implementation of the Nodal Investment Atlas, and Institutional Support Mechanism

5. State of the Nodal Economies Report – pulling together key themes for influencing government thinking around economic development in townships and rural areas

6. Economic Development Capacity Building: Township Practitioners Development Programme, and possibly, Certified Economic Developers Programme (CeDC)



LESSONS LEARNT IN THE IMPLEMENTATION OF THE URBAN RENEWAL PROGRAMME

(Note: ISRDP Lessons Learnt study currently underway, to be

finalised July 2007).


URP LESSONS LEARNT

LESSONS PERTAINING TO THE PROJECT CYCLE:- Project selection- Project objectives- Project preparation and design- Institutional arrangements- ImplementationSECTORAL LESSONS- governance, finance, institutions- Economic development- Service delivery- Infrastructure and housing- Social services- Greening & environment- Public safety- CommunicationsMore than 100 lessons, supported by 25 case studies and stories.


URP LESSONS LEARNT

INSTITUTIONAL PROCESSES

Institutionalising the programme is crucial. Good will and individual programme champions are useful, but the programme needs to be seated within institutional structures, contractual arrangements and clear lines of accountability.

Area based approaches such as the nodes have offered the greatest focus and coordinated interventions.

GOVERNANCE

Sound and active leadership at political and administrative level is critical for the success of integrated nodal development.

Participatory structures (ward committees, development forums) must be resourced and capacitated for effective community ownership.

Learning by doing requires that parallel learning take place along side implementation. Regular strategic reviews should be undertaken in the URP to ensure cross learning between nodes and broader.


URP LESSONS LEARNT

SERVICE DELIVERY

URP is not only about housing and care has to be given to finding a balance between infrastructure development and human development related activities.

Unrealistic service standards such as in housing can cause a slow down in delivery, compromise quality and result in stalled projects.

Without control over the housing budget, cities have difficulties meeting delivery targets set by them, more so in the URP nodes which have severe backyard overcrowding, old informal settlements and new in-migration.

Land, its identification for housing and preparation and servicing for township development requires the coherent support from all of government. SOE’s and parastatals must make their land holdings available for development that will benefit the nodal communities.


URP LESSONS LEARNT

LOCAL ECONOMIC DEVELOPMENT

Resources need to be committed for adequate supervision, training and support for emerging contractors.

Using public investment in a coordinated manner to prompt private sector response has proven to be a successful strategy – support must be provide to other nodes to implement this strategy, using IGR structures to get binding commitments from other spheres of government.

Townships are not and cannot be self-sufficient – linkages with nearby commercial areas are important. Analysis of the expanding sectors in the sub-regional context is important to assess which sectors offer the best possible opportunities for employment of the nodal communities.


URP LESSONS LEARNT

FINANCIAL VIABILITY

Preparation funding is critical during the first 24 months of the URP, to establish PMUs, undertake essential planning and to source/lever delivery budgets from line functions.

The privates sector is under-invested in the townships and this represents an un-tapped opportunity. Government must be able to direct this interest by careful packaging and marketing of projects to get maximum benefit for the area.

If dedicated programme funding is made available for the URP, a model to explore is a requirement that it be made available on the basis of gearing on a set ratio with other funding.

MANY OF THESE LESSONS OF THE ISDP AND URP WERE INCORPORATED

INTO THE “FRAMEWORK FOR MANAGING JOINT PROGRAMMES” a joint DPSA

DPLG project approved by Cabinet and included into the IGR Toolkit.


ISSUES FOR INTERVENTION

ISSUE RESPONSIBILITY

Integrate/mainstream the coordination

structures of the isrdp and urp into provincial

(PCFs) and district (DCFs) IGR Structures:

working with provinces

DPLG - URD and Governance Branches

Facilitate a coordinated LED support

programme for the nodes: closer collaboration

between DPLG-PCAS-DTI

DPLG: URD, Governance, FBSI Branches

Knowledge sharing programme: learning

events, node-node twinning and exchange

visits, training seminars.

DPLG: URD, Governance branch, SACN, IDT and NT

Support nodes to improve communication and

community participation.

DPLG: URD & FBSI, CS


ISSUES FOR INTERVENTION

ISSUE RESPONSIBILITY

Strengthen sector support to the nodes:

DTI, Agriculture, Health, Education

DPLG with support from portfolio committee. (eg, call sectors to portfolio committee to account for support to the nodes).

Strengthen the political championship

Oversight: accountability of champions

assigned to each node.

Minister, with support from Portfolio Committee

Intervene decisively and quickly in cases of:- weak political leadership at nodal and

provincial level- Conflict between political and

administrative in a node- Weak IGR between node-district-

province

In cases where this is weakening delivery.

Minister and Portfolio Committee


URD BRANCH BUDGET

URBAN AND RURAL DEVELOPMENT

2006/07AdjustedAppropriation

2007/08 2008/09 2009/10

Medium-term estimates

MTEF Baseline

Management 1,023 2,163 2,272 2,373

Urban Renewal Programme Management

1,234 2,286 2,400 2,513

Urban Renewal Monitoring and Evaluation

1,864 2,198 2,308 2,416

ISRDP - Management 2,413 2,349 2,466 2,582

ISRDP - M&E 1,926 2,284 2,398 2,511

TOTAL OF SUBPROGRAMMES 8,460(10,729)

11,280 11,844 12,395

Notes: 06/07 budget adjusted from R10,729m to R8,460m. This downward adjustment of R2,269 million is mainly as a result of 3 vacant management positions: DDG position: recruitment completed, Cabinet endorsement received. Ms Lester will start 1 July 2007 EM URP: 2 unsuccessful recruitment processes during the year, Third recruitment process now conclude, candidate starts 18 June 2007. EM ISRDP: vacant since Dec 2006. Interviews July 2007.Four new Deputy Directors (3 female, 1 male) recruited and started January 2007.


THANK YOU

The dplg June 20071 PRESENTATION TO THE PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT...

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