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GTEDA STRATEGIC PLAN

GREATER TZANEEN

ECONOMIC DEVELOPMENT

AGENCY

(GTEDA)

STRATEGIC PLANFor the fiscal years2016/17 – 2020/21

April 2016

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ABBREVIATIONSTable of Abbreviations

BCP Business Continuity Plan

BSSC Business Support Services Centre

CEO Chief Executive Officer

Greater Tzaneen Greater Tzaneen Municipal Area

GTM Greater Tzaneen Municipality

GTEDA Greater Tzaneen Economic Development Agency

LED Local Economic Development

IDC Industrial Development Corporation

LDP Limpopo Development Plan

LEDA Limpopo Economic Development Agency

REE Renewable Energy Economy

SWOT Strength, Weaknesses, Opportunities and Threats

PDI Previously Disadvantaged Individuals

MOU Memorandum of Understanding

SLA Service Level Agreement

SMME Small, Medium and Micro Enterprise

GTFM Greater Tzaneen Frequency Modulation

TOR Terms of Reference

SEDA Small Enterprise Development Agency

SETA Sector Education Training Authority

SARS South African Revenue Services

CO-OP Co-operatives

GTTA Greater Tzaneen Tourism Association

AGSA Auditor General of South Africa

SDF Spatial Development Framework

CPA Communal Property Associations

EIA Environmental Impact Assessment

HIA Health Impact Assessment

MDDA Media Development and Diversity Agency

KNP Kruger National Park

NDP National Development Plan

IDP Integrated Development Plan

GDP Gross Domestic Product

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Table of Contents

ABREVIATIONS.............................................................................................................................2

INTRODUCTORY STATEMENT.................................................................................................................6

FOREWORD BY BOARD CHAIRPERSON...................................................................................................7

OFFICIAL SIGN OFF..................................................................................................................................8

OVERVIEW BY THE CHIEF EXECUTIVE OFFICER.......................................................................................9

1. EXECUTIVE SUMMARY..................................................................................................................10

1.1The big goal............................................................................................................................10

1.2The need................................................................................................................................10

1.3History/key learning...............................................................................................................10

1.4Priorities: GTEDA’s services...................................................................................................11

1.5GTEDA’s strategic direction and results.................................................................................11

1.6Strategic direction and results...............................................................................................12

1.7Organisational performance assessment..............................................................................12

1.8Resourcing plan.....................................................................................................................12

2. STRATEGIC OVERVIEW...................................................................................................................13

2.1Description of strategic planning process..............................................................................13

2.2The essence of GTEDA...........................................................................................................13

2.3. GTEDA services......................................................................................................................13

2.4Vision.....................................................................................................................................14

2.5Mission...................................................................................................................................14

2.6Values....................................................................................................................................14

2.7Our legislative mandate.........................................................................................................15

3. SITUATION ANALYSIS....................................................................................................................15

3.1. The broader economic context.....................................................................................................15

3.2. Performance environment....................................................................................................18

3.2.1. The greater Tzaneen area...........................................................................................18

3.2.2. The greater Tzaneen population.................................................................................19

3.2.3. Employment and income status..................................................................................20

3.2.4. Individual monthly income levels................................................................................20

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3.2.5. The economy in general..............................................................................................21

3.3. Organisational environment..................................................................................................22

3.3.1. SWOT analysis.............................................................................................................22

3.3.2. Stakeholder analysis....................................................................................................23

3.4. Governance............................................................................................................................24

3.4.1. The board....................................................................................................................24

3.4.2. Board constitution.......................................................................................................24

3.4.3. Board term...............................................................................................................24

3.4.4. Accountability, roles and functions of the board........................................................24

3.4.5. Board committees.......................................................................................................25

3.5. The organisational structure.................................................................................................26

3.5.1. current challenges.......................................................................................................26

3.5.2. current organisational structure.................................................................................27

4. STRATEGIC MAP.............................................................................................................................28

4.1. GTM strategic map................................................................................................................28

4.2. GTEDA strategic map.............................................................................................................28

5. STRATEGIC FOCUS AREAS, OBJECTIVES AND GOALS....................................................................30

5.1. Strategic focus areas for 2016-2021......................................................................................30

5.1.1. Agriculture and Agribusiness......................................................................................30

5.1.2. Manufacturing............................................................................................................3

5.1.3. Tourism and Heritage conversation............................................................................30

5.1.4. Property development................................................................................................31

5.1.5. Green energy...............................................................................................................31

5.3. Strategic outcome oriented conversation.............................................................................32

5.4. Strategic objectives................................................................................................................35

6. BUSINESS MODEL..........................................................................................................................50

6.1. The customer perspective.....................................................................................................51

6.1.1. Brand

building.............................................................................................................51

6.1.2. Selection and

service...................................................................................................51

6.1.3. Partnership.................................................................................................................

.51

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6.1.4. Graceful

exit................................................................................................................51

6.2. Internal perspective...............................................................................................................52

6.2.1. Sustainability and pitfall

avoidance.............................................................................52

6.2.2. Innovative

process......................................................................................................52

6.2.3. Operations management

process...............................................................................52

6.2.4. Regulatory and social

process.....................................................................................52

6.3. Financial perspective........................................................................................................53

6.3.1. Cost

recovery..............................................................................................................53

6.3.2. Return on

investment.................................................................................................53

6.3.3. Regulatory

process......................................................................................................53

6.4. Learning and growth perspective..........................................................................................53

7. RESOURCE CONSIDERATIONS........................................................................................................54

8. GROWTH PLAN...............................................................................................................................55

9. RISK MANAGEMENT......................................................................................................................56

10. CONCLUSION..................................................................................................................................57

TABLE OF FIGURES

FIGURE 1: Greater Tzaneen Area..........................................................................................................18

FIGURE 2: GTM Population...................................................................................................................19

FIGURE3: GTM Employment Status......................................................................................................20

FIGURE4: GTEDA Board Committees....................................................................................................25

FIGURE 5: GTEDA Organisational Structure..........................................................................................27

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FIGURE 6: GTM Strategic Map..............................................................................................................28

FIGURE 7: GTEDA Strategic Map...........................................................................................................29

FIGURE 8: GTEDA Business Model........................................................................................................50

INTRODUCTORY STATEMENT

Greater Tzaneen Economic Development Agency (GTEDA) (Pty) Ltd is an entity

of the Greater Tzaneen Municipality that was established following an agreement

between the Industrial Development Corporation (IDC) and Greater Tzaneen

Municipality (GTM) to advance and leverage the development and job creation

potential inherent within the Greater Tzaneen Municipal area. It is wholly owned by

the Municipality.

The strategic plan was revised in August 2015 in response to unfavorable conditions

in the country that affected all sectors of the economy. These conditions directly

impact on the prospects of investments in our economy as in many economies of

developing countries. This situation is a result of the uneven economic recovery of

many economies following the world economic meltdown, unprecedented

demographic shifts and transformations in the labor market.

These international economic factors have contributed to South Africa’s triple

challenge of poverty, inequality and unemployment which has an effect on its social,

political and economic fabric. Greater Tzaneen has its fair share of these afflictions –

like the rest of the country it has to deal with an influx of foreigners, high

unemployment, poverty, community protests etc.

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Adapting to an uncertain emerging environment requires higher levels of education,

economic flexibility, agility, resilience and innovation. Therefore, the revised plan

seeks to recognize these new realities while building off our existing strengths and

testing new approaches and exploring possible new partnerships and collaborations.

As such a GTEDA with a clear vision and strategy is more critical than ever.

FOREWORD BY BOARD CHAIRPERSON

The National Development Plan has as one of the priorities: “Raising employment

through faster economic growth”. It also prices the development of rural economies.

The Greater Tzaneen Economic Development Agency Board is proud to have

developed a strategy that responds to key objectives of that national vision.

This plan also supports and is in complete sync with the objectives of the Limpopo

Development Plan. This means that partnerships with provincial agencies and other

stakeholders in this endeavour is critical.

While Greater Tzaneen area presents an array of opportunities in business,

especially in tourism, manufacturing and agriculture, entrepreneurial activity to tap

into these opportunities to turn them into businesses and thereby create jobs is very

low. Its potential remains largely untapped.

Our plan is further inspired by the vision of our shareholder itself, the Greater

Tzaneen Municipality: “To be the most prosperous economy in the country where

communities are integrated and have access to sustainable basic services .” This

bias on economic development in this vision presents a huge opportunity for GTEDA.

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Having honestly analysed our past achievements and challenges, we believe that the

reason for the creation of GTEDA, (Pty) Ltd Company in 2007, remains a noble and

strategic one. We believe that this strategy provides us with a solid framework for

identification of realistic and achievable projects for the five year term of the Board

that, among others, take advantage of the history and cultural heritage of the town. It

also envisages learning from growth and development experiences of other towns

and cities, taking full advantage of the human resources potential of its residents as

well as their dreams so that Tzaneen becomes a key contributor to the growth of the

provincial economy.

_____________________

Matome MawashaBoard Chairman

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OFFICIAL SIGN-OFF

It is hereby certified that this Strategic Plan:

Was developed by the Board of the Greater Tzaneen Economic Development

Agency under the guidance of the Chairperson of the Board;

Takes into account all the relevant policies, legislation and other mandates for

which the Greater Tzaneen Economic Development Agency is responsible; and

Accurately reflects the strategic outcome oriented goals and objectives which the

Greater Tzaneen Economic Development Agency will endeavour to achieve over

the period 2016/17 to 2020/21, given the resources made available in the budget

and within the constraints and opportunities of the market conditions.

Ms. MM Rabothata Signature: ________________Acting Accounting Officer (Finance and Administration Officer)

Mr. M.Z Mawasha: ________________On behalf of the Accounting Authority: The GTEDA Board

Acknowledged by: Ms. M. Mmetle Signature: ___________ Executive Authority

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OVERVIEW BY THE CHIEF EXECUTIVE OFFICER

Strategic planning is about making choices in the light of scarcity of resources and

a reconnaissance of one’s environment. That is the reason GTEDA has selected

five strategic areas of focus, which are: Agriculture and Agribusiness,

Manufacturing, Tourism and Heritage, Property Development and Green Energy.

We have also adopted four client facing strategic goals that respond to the external

environmental challenges and a strategic goal that is premised on a realization that

a strong organisation needs to be built that would be able to deliver on the other

goals and objectives.

GTEDA employees are ready for the challenges that this plan presents and the

changes that come with it and we look forward to a robust period. We count on the

support and leadership of our new Board to realize the projects that would flow

from this strategy. We believe that in this plan, the agency positions itself to be the

key instrument that drives the economy in the Greater Tzaneen Municipal area.

_________________

MM Rabothata

Acting CEO

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1. EXECUTIVE SUMMARY1.1. The Big Goal

GTEDA’s mission aims to attract investments into Greater Tzaneen by

promoting a conducive investment climate in innovative and efficient ways; in

order to attract suitable investors and to develop an economy that is inclusive,

sustainable and resilient.

1.2. The Need

We are committed to our shareholder’s aims to transform the Greater

Tzaneen Municipality into a city by 2030; and

To community development and we will facilitate entrepreneurial training

within and around the Greater Tzaneen, particularly amongst the youth and

women.

1.3. History / Key Learning

GTEDA shares its experiences and lessons over the past seven (7) years of operation:

Inability to attract and sustain investors due to lack of investor incentives;

Inability to secure land for development due to land locked and claim

issues, and disputes amongst tribal authority beneficiaries;

Divergent understanding of the role and mode of operation of GTEDA due

to non-engagement of external stakeholders on the strategic plan; and

Inability to sustain the Agency as a going concern due to over reliance on

grant funding by shareholder.

In response, GTEDA’s strategic plan will be presented to key stakeholders for

contribution which will ensure stakeholder buy-in; and

The plan encompasses a business model which addresses GTEDA’s self-

sustainability strategy.

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1.4. GTEDA’s Strategic Plan The following objectives for GTEDA over the next five years are the

organization’s response to the important issues identified in the environmental

scan that was completed as part of the strategic planning process. These

objectives provide a roadmap for fulfilling the strategic direction:

Support entrepreneurs in accessing investment capital;

To provide information, advice and support to businesses to ensure growth

and sustainability;

Promote a conducive investment climate in Greater Tzaneen and attract

suitable investors;

To develop effective partnerships with economic development role-players

To acquire and manage assets and other facilities;

To promote entrepreneurship as a career of choice among the youth;

To cultivate entrepreneurship in the broader community;

Develop economic research and analytical capacity of GTEDA; and

To improve organisational skills, systems and processes.

The overall strategic approach that GTEDA is proposing for the period

2016/17 – 2020/21, is focused on Agriculture and Agribusiness,

Manufacturing, Tourism and Heritage Conservation, Property Development

and Green Energy.

1.5. Strategic Direction and Results

The strategic direction and goals included in this plan are GTEDA’s response

to its understanding of what its stakeholder’s value most about the

organization, and current opportunities and challenges.

The five-year period of this strategic plan will be a time of assessing and

deepening GTEDA’s approaches to its work. Concurrently, GTEDA will take

more of a leadership role in exploring actively engaging more stakeholders

with a fresh perspective on its mission, understanding what it does well, and

the environment in which it operates.

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As noted above, this strategic plan is intended to be a management tool for

the Agency. It presents a record of the strategic planning process and the

decisions reached by the Board of Directors and staff; which are a reference

guide for strategic planning.

1.6. Organisational Performance Assessment

Performance assessment is vital in ensuring that the highest standards of

excellence is maintained and our performance assessment report is included

in the Annual Report which is publicly distributed to external stakeholders in

order to report on our undertakings. Our performance plan is measurable,

attainable, realistic, time bound with specific, regularly updated key

performance indicators. This is reviewed quarterly by our shareholder (the

municipality) and annually by the Auditor General and Provincial Treasury to

measure progress toward our pre-determined objectives.

1.7. Resourcing the Plan

We expect the main themes of the Plan, and the bold but feasible results it

illustrates, will necessitate cumulative additional resources of about 28%–31%

above our committed grant funding over the five year term of the Plan. The

Greater Tzaneen Municipality (GTM) support for GTEDA activities is central

and will always be essential to sustaining our mission, however due budget

shortfall of approximately 28% we anticipate that more than a quarter of the

new budget required for the 2016/17 Financial Year Plan will come from

Return On Investments attracted/ fees earned on investment facilitation role or

other sources of revenue.

GTEDA will become a more entrepreneurial organization, and we envision

facilitating funding for new initiatives through a variety of sources. These

include emerging and established entrepreneurs, new revenue-generating

ideas through our very own Ideas Hub, and SMME support through incubation

programmes.

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2. STRATEGIC OVERVIEW 2.1. Description of the Strategic Planning Process

The GTEDA Board of Directors meets annually to review and revise the

organization’s strategic priorities within its budget processes to ensure that all

activities undertaken are within the plan and must come with an identified

revenue stream.

A session was held to revise the Strategic Plan in August 2015 and covered a

wide range of issues including the organisation’s vision and mission, values,

strategies and objectives and indicative business plan - focusing attention on

important issues facing GTEDA and exploring ways to resolve them. The aim

was to answer questions around where the organisation was (mandate and

key projects) as well as defining what GTEDA should aim to achieve

(objectives) and how to get there.

The process was consolidated by the GTEDA Board on advice by the Projects

and Investments Committee led by the Chairperson of the Board.

2.2. The Essence of GTEDA

GTEDA is the entry point for potential investors. We are a catalyst. We

connect people who have a passion for growth; we care for ideas that will

empower our community. We are partners in striving to make the unavailable

available.

2.2.1. GTEDA Services

Market Greater Tzaneen potential and investment opportunities;

Create a positive investment climate;

Provide business support services;

Create networking platforms;

Conduct and facilitate project funding;

Facilitate access to available business premises and land;

Coordination of economic development; and

Fully investigate available resources.

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The Greater Tzaneen Municipality created GTEDA under the Municipal

Systems Act. It created GTEDA as a private company governed by the

Companies Act, Act 71 of 2008. The business and affairs of GTEDA being a

private company is therefore, as required by Section 66 of the Companies Act

managed by or under the direction of its board. The Board has the authority to

exercise all of the powers and perform any of the functions of the company.

Specifically the Agency (GTEDA) is best positioned to:

Maintain a high level of reputation, visibility and credibility;

Increase the pace of economic development with less red tape; and

Take risks in the private sphere.

2.2.2. Vision

To be a self-financing Agency that leads in developing an inclusive,

thriving and sustainable economy for the people of Greater Tzaneen.

2.2.3. Mission

We strive to attract investments into Greater Tzaneen, facilitate in

innovative and efficient ways, development of an economy that is inclusive,

sustainable and resilient. We believe in the potential of our people to drive

their own development.

2.2.4. Values

We subscribe to a set of values that guide our actions at all levels, are

integrated into our way of working and we should be judged by. These are:

Integrity

Empowerment

Transparency and accountability

Innovation and excellence

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Partnering

2.2.5. Our Legislative Mandate

GTEDA is Proprietary Limited Company, a legal entity with limited liability

incorporated in terms of the Companies Act, 2008 (Act No. 71 of 2008) as

amended.

The Agency derives its legislative mandate from chapter10 of the

Municipal Finance Management Act, 2006 (Act No. 53 of 2006) and its

regulations - read with Chapter 8A of the Municipal Systems Act, 2000 (Act

No. 32 of 2000) as amended, and the applicable regulations.

3. SITUATIONAL ANALYSIS3.1. The Broader Economic Context

GTEDA, being an agency of the Municipality is enjoined by the constitutionally

defined objects of local government which are, among others, the provision of

democratic and accountable government for local communities, promotion of

social and economic development, promotion of a safe and healthy

environment and encouraging the involvement of communities and community

organizations. GTEDA must work with the parent municipality and the district

municipality towards these objectives.

The National Development Plan provides the anchor upon which these

constitutional imperatives can be pursued. The National Development Plan

asserts that South Africa can create 11 million jobs by 2030 by among others

directing and promoting investment in labour-intensive areas, raising

competitiveness and export earnings. Some of the more specific objectives in

the plan that GTEDA has and real opportunities are stated as follows:

Increasing exports, focusing on those areas where South Africa already

has endowments and competitive advantage, such as mining,

construction, mid-skill manufacturing, agriculture and agro-processing and

tourism.

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A larger, more effective innovation system closely aligned with firms

that operate in sectors consistent with the growth strategy. Support for

small businesses through better coordination of relevant agencies,

development finance institutions, and public and private incubators.

A higher rate of investment, with public sector investment crowding in

private investment. This will depend on partnerships with the private

sector, policy certainty and building confidence in the long-term growth of

the economy.

On the other hand the New Growth Path proposes measures to tackle

unemployment, inequality and poverty. It asserts that the measures, taken

together, constitute a key means to address the income inequalities in our

society and can grow employment by five million jobs by 2020 and

unemployment could drop by 10 percentage points from 25% currently to

around 15%. It identifies jobs drivers and the following are more relevant to

GTEDA:

Targeting more labour-absorbing activities across the main economic

sectors – the agricultural and mining value chains, manufacturing and services;

Taking advantage of new opportunities in the knowledge and green economy;

Leveraging social capital in the social economy and the public services;

and

Fostering rural development and regional integration.

GTEDA must also align its plans with the interventions in the Limpopo Development Plan. It defines development as defined as broad-based

improvements in the standard and quality of living of people. The Plan locates

its prioritisation within the Medium-Term Strategic Framework (MTSF) for 2015-19 which is the action plan for the NDP and the New Growth Path for

this first five-year implementation period. The specific advantage of the

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Limpopo Development Plan for GTEDA is that Greater Tzaneen is identified

therein as a nodal or growth point where resources could be co-ordinated and

directed in response to identified development opportunities.

In the APPROVED 2014/15 Integrated Development Plan of Greater Tzaneen

the following strategic objectives and performance indicators can be found.

These are critical to GTEDA’s developing of its own strategy:

Strategic Objective: Increased investment in the GTM economy

Performance Indicators:

# of jobs created through agricultural value chain;

# of SMME's capacitated through GTEDA;

# of jobs created by GTEDA; and

# of committed investors attracted through GTEDA.

It is also an objective of GTM to promote the municipality in South Africa and

internationally to ensure economic growth

3.2. Performance Environment

3.2.1. The Greater Tzaneen Area

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Figure 1: Greater Tzaneen Area

The Greater Tzaneen Municipality comprises a land area of approximately 3 240km²

and extends from Haenertsburg in the west, to Rubbervale in the east, south of

Modjadjiskloof in the north and to Trichardtsdal in the south. The municipal boundary

forms an irregular, inverted T-shape, which results in certain developmental

implications, and more specifically the distance to markets, difficulties in respect of

service provision and constraints in implementing development vision and strategies.

The municipality is comprised of the proclaimed towns of Tzaneen, Nkowankowa,

Lenyenye, Letsitele and Haenertsburg with several residential townships surrounding

the Ebenezer Dam. In addition there are 125 rural villages, concentrated mainly in

the southeast, and northeast of the area. (See Map 1) The municipal area is further

characterized by:

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Extensive and intensive farming activities (commercial timber, cash crops,

tropical and citrus fruit production);

Mountainous, inaccessible terrain in the west and south, and even

topography (gentle slopes) to the north and east;

Areas with exceptional natural beauty, with considerable untapped tourism

potential.

Tzaneen’s location places it on the route between the provincial capital,

Polokwane, and certain of the entrance gates to the extremely popular Kruger

National Park (KNP). Tzaneen is therefore an ideal stop-over for tourists en

route to the KNP or to the myriad game reserves adjacent to the KNP.

Tzaneen is also situated on the tourist route, Route 71.

3.2.2. The Greater Tzaneen Population

According to the South African Statistics Census 2011, the Greater Tzaneen

Municipality has increased its population from 375 588 to 390, 095 (an

increase of 14 504), which is the largest municipality in terms of population

contribution (36%) in the Mopani District.

This population consists of 181 558 males (Census 2001, 171 119) and 208 536 females (Census 2001, 204 469). Females still outnumber males as they

make up 53% of the population (down from 54% during Census 2001). Young

people between the ages of 14 – 35 constitute 40% (156 900) of the total

population of the municipality.

Figure 2: GTM Population

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3.2.3. Employment and Income Status

According to the Stats SA Census 2011 there are 27 051 people that are

economically active (employed or unemployed but looking for work), and of

these; 36, 7% are unemployed. Of the 11 948 economically active youth (15–

34 years) in the area, 48, 5% are unemployed.

The majority of people in households in the Greater Tzaneen Municipal area

are unemployed, discouraged work-seekers and those who are not

economically active. All effort at GTEDA should be informed by the need to

change this statistic.

Figure 3: GTM Employment status (Source: Stats SA Census 2011)

3.2.4. Individual Monthly Income levels

Hundred and Sixty Thousand, two hundred and fifty six (160 256) people, who

make up 41% of the total population in the municipality, do not have any

source of income; 45% earn incomes below the minimum living levels, that is

R 9,600 per annum or lower than R 1,600.00 as defined by Statistics South

Africa. Only 0.2% of individuals earn above R50, 000 per annum.

Out of 108 926 households in the Greater Tzaneen area, 14 573 households,

4% of the total households do not have any source of income. The majority of

employed households (about 10%) earn between R 9 601 – R 19 600. It is

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also worth noting that only 0.5% of households earns above R1, 000, 000 per

annum within our municipality.

GTEDA must therefore aim at interventions with good earning potential for as

many individuals and households in the area as possible. The empowerment

of young people and women in particular becomes a critical tactic in this

regard.

3.2.5. The Economy in General

The Greater Tzaneen Municipality area has a dualistic economy with a highly

developed commercial sector existing next to an informal subsistence sector,

according to the Greater Tzaneen Municipality SDF (2009). The commercial

sector has established itself largely in accordance with the spatial location of

the production sector. Due to the nature of the informal sector, very little

accurate information is readily available on the level of the various activities

According to the Greater Tzaneen Municipality adopted 2014/15 IDP,

agriculture in Tzaneen contributes most of the district’s GDP at 43%. It

accounts for more of the employment at 40% followed by Letaba at 25%. This

is a clear competitive advantage that is followed by manufacturing which

contributes 38%, 3% of the local municipality to the district. All in all, the IDP

identifies agriculture, tourism, and Agro-Processing as the sectors with the

most potential.

It identifies among the challenges and constraints for local economic development:

Uncoordinated planning for IDP implementation;

Lack of coordinated marketing strategy for the entire Municipal area;

Delayed restitution processes;

Lack of coordination of the value chain;

Uncoordinated tourism structure which is representative of the entire

Municipality;

Business and trade needs to be diversified for retention and sustainability

purposes;

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Lack of incentives for private sector driven development;

Informal sector shows substantial growth which needs to be part of the

organized/Formal business 24.7 Opportunities for LED; and

The following are collective economic forces that can generate sufficient

economic energy to create a series of sustainable development

opportunities or projects a. Sub-tropical fruit and nut cluster development

b. Agriculture value-chain development c. Tourism development and

promotion d. Business diversification and trade development

3.3. Organisational Environment

3.3.1. SWOT Analysis

Organisational Analysis (External)

Various stakeholders’ were engaged to participate in the analysis of GTEDA’s

internal strengths, weaknesses and external opportunities and threats by way

of a SWOT Analysis Tool and identified the following:

Strengths Weaknesses

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Internal A fully fledged and active Board Internal policies are in place Keen personnel Prudent financial management

(Unqualified audit opinion)

Internal An organisational structure inconsistent with the

core business and some support services Poor human resources capacity to deliver on the

core business - vacancies in key positions Limited financial resources Inadequate office space/accommodation Poor asset base Poor ITC systems and inadequate support

Opportunities Threats External

Grow the GTEDA brand Grow asset base Potential partnerships with IDC, SEDA,

NDA Go Green- alternative energy ( Solar) A huge natural and cultural resource

base that can be exploited in Tourism, Agriculture, Heritage etc.

Council support Potential partnerships with private

venture capitalists and donors

External Identification /assignment of unsustainable

projects. Poor communication from key stakeholders Insufficient funding/ lack of funding (resources). Misunderstanding of the character and role of the

Agency Unwillingness of some relevant stakeholders to

buy in on development initiatives. Delays in land restitution processes. Informal relationships with key stakeholders Inflation Competition from other agencies and

municipalities. Unstable environmental, Social, political and

economic conditions.

3.3.2. Stakeholder Analysis

The very existence and the success of GTEDA depends on a number of stakeholders

who have some expectations and influence over the entity. The entity strives to

understand, manage or meet the expectations of the stakeholders in its operations.

The stakeholders and their degree of influence over the entity are given in the table

below:

Stakeholder

Role Interest Degree of

Area of Influence

Expectations

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InfluenceGTM Sole Funder High High Ownership and

Funding- viability

Monthly, Quarterly and

Annual Performance

reports

Community and Civil Society

Beneficiary High High Public participation

and buy-in

Annual meetings

through IDP Public

participation processes

Funders Potential

Funder

High High Funding- viability Monthly engagements

Investors Potential

Investor

High High Economic

development

Monthly engagements

Business Strategic

Partner

High High Economic

development

Quarterly engagements

Media Strategic

Partner

High High Marketing and

communication

Monthly newsletters or

publications

Government Agencies

Strategic

Partner

High High Capacity and

strategic

partnerships

Monthly engagements

Sector Departments

Strategic

Partner

High Medium Service delivery and

strategic

partnerships


Organised Business

Strategic

Partner

High Medium Strategic

partnerships for

economic

development and

viability


Academic Institutions

Strategic

Partner

Medium Medium Research

capabilities and

human development

Quarterly / Regular engagements

3.4. GOVERNANCE

3.4.1. The Board

25

ANNEXURE “A”


Together with the Parent Municipality GTEDA continues to comply with the

requirements of a responsible and accountable Board as recommended in

Chapter 2 of the King III Report.

3.4.2. Board Constitution For a period of about three years, GTEDA operated without a full Board

Component; and In the previous financial year when the Board comprised

only four Board Members compared to the initial Membership of ten,

together with the Shareholder a commitment was made to review the skills

shortage as there was a realisation that there is a serious need to further

improve on the economic development and investment muscle in terms of

additional skills to the Board in order to effectively carry out the core

mandate of GTEDA.

3.4.3. Board TermDirectors are appointed on a fixed term of five (5) years. A new and full Board

component was finally appointed on a five year term with effect 01 July 2015.

We give the assurance that the Board Members are diverse in terms of

education, experience, gender balance, geographical origin and interpersonal

skills.

3.4.4. Accountability, Roles and Functions of the BoardAll Board Members are independent for the effective functioning of the Board.

A Company Secretary was appointed among the Board members to ensure

that governance processes are not neglected and all issues of governance are

addressed. The Company Secretary liaises between the Board and

Management on Board matters.

The Board tables an annual report to the shareholder on the performance of

the organisation as well as the audited annual financial statements. Quarterly

reports are also submitted through the GTM Audit Committee.

A representative of the shareholder attends all GTEDA quarterly Board

meetings.

3.4.5. Board Committees

26

ANNEXURE “A”


The Board has delegated certain of its duties to Board Committees which are

all chaired by independent non-executive directors:

Human Resource and Remuneration Committee (HR & REMCO) - Ms. J

Makapan;

Finance and Risk Committee (FRC) - Mrs. M.F Mushwana;

Project and Investments Committee (PIC) – Mr. M.Z Mawasha; and

Social and Ethics Committee (SEC) – Adv E.S Maake.

Figure 4: GTEDA Board Committees

3.5. The Organisational Structure

GTEDA has an approved organogram with a staff complement of nine.

The Finance and the Human Resource functions are performed under the

guidance of the Finance and Administration Officer, supported by the

Receptionist and Office Assistant; and

27

Finance and Risk

MF Mushwana

Pro jects and Investment

MZ Mawasha

Socia l and Ethics

ES Maake

HR& REMCO

J Makapan

BOARD OF DIRECTORS

M Z Mawasha: ChairmanES Maake: Deputy Chai rman

MF MushwanaMV Gardner

MI MoakamelaJ Makapan

BL Mathebula

Audit Committee

GTM

ANNEXURE “A”


The Project Management functions are performed under the guidance of the

Project Manager, supported by the Project Coordinator and Business Advisory

Administrator.

3.5.1. Current Challenges:

The current staffing levels result in less than adequate performance of the organisation in certain areas.

Therefore there is a need for innovative thinking on resourcing the organisation to meet changing demands on it.

The organisation does not have as much communication and connection as is desirable with its stakeholders or customer base.

The structure does not provide for prospects of career growth and mobility.

The organisational structure is therefore undergoing a review process to

address these challenges and to generally accord with the mandate of the

organisation and its strategy.

3.5.2. Current Organisational Structure

Figure 5: GTEDA organisational Structure

28

ANNEXURE “A”


29

1 X CHIEF EXECUTIVE OFFICER

1 X MANAGER CORPORATE SERVICES

1 X MANAGER: INVESTMENTS AND PROJECTS

1 X MANAGER MARKETING AND PR

COMPANY SECRETARY

- IT

- HR

- Finance

- Admin

- Marketing GTEDA and Projects

- Stakeholder Relations

- Exhibit ions

- Identi fy Investors

- Increase Revenue

- Project Management

- Maintain Current Projects

ANNEXURE “A”


4. Strategy Map

4.1. Greater Tzaneen Municipality’s Strategic Map

Figure 6: GTM Strategy Map

GTEDA’s mandate is to grow the local economy in order to support development of the

people of the area. Therefore economic growth would be the main area of focus for the

Agency in the Greater Tzaneen Municipality’s Strategy Map.

4.2. GTEDA’s Strategic Map

The diagram below is a detailed presentation of the GTEDA strategy map. It is based on

GTEDA’s own realities and is premised on the balanced score-card approach.

30

ANNEXURE “A”


GOALS 3. Increased availability of resources economic development in the Greater Tzaneen area. 4. A high level of investment in the local economy. 5. A thriving SMMEs sector in Greater Tzaneen. 6. Developed entrepreneurial capacity and increased involvement of PDIs in starting and developing businesses. 7. A viable and capable GTEDA.

THEMES ECONOMIC DEVELOPMENT CAPACITY BUILDING PUBLIC PARTICIPATION SUSTAINABILITY

STRATEGIC PERSPECTIVES

CUSTOMER SATISFACTION

FINANCIAL

31

To provide information, advice and support to businesses to ensure growth and sustainability.

To support entrepreneurs in accessing investment capital

To promote a conducive investment climate in Greater Tzaneen and attract suitable investors.

To provide information, advice and support to businesses to ensure growth and sustainability.

To acquire and manage assets and other facilities



ANNEXURE “A”


INTERNAL PROCESSES

LEARNING AND GROWTH

Figure 7: GTEDA Strategy Map

32

To promote entrepreneurship as a career of choice among the youth

To cultivate

entrepreneurship in the

broader community

To develop economic research and analytical capacity of GTEDA

To improve organisational skills, systems and processes

ANNEXURE “A”


5. STRATEGIC FOCUS AREAS, GOALS AND OBJECTIVES

Strategic Focus Areas for 2016 – 2021

5.1.1. Agriculture and Agribusiness

In terms of Agriculture, the Greater Tzaneen Municipal area has a

competitive advantage in Agriculture with considerable opportunities for

leveraging this sector and finding new entrepreneurs particularly in

agribusiness.

5.1.2. Manufacturing

The Provincial Employment and Growth strategy identifies that insufficient

attention is given to the potential development contribution of industries

especially manufacturing as a course of the decline in some municipal areas.

While manufacturing in Greater Tzaneen contributes 38% of the district

economy, it is on the basis of a strong endowment in natural resources that it

becomes a strategic sector to target for development.

“Limpopo Industrial Sector Key Action Plan’s main objective is to identify

interventions that will enable the province to revitalize both the natural-

resource based and advanced manufacturing growth in the province with a

focus on integrating SMMEs at the 2nd, 3rd, 4th and lower tiers into the

regional, national, continental and global value chains of the selected

sectors”Provincial Employment and Growth Strategy, 2009-2014.

5.1.3. Tourism and Heritage Conservation

Tourism is identified in the Municipality’s IDP as one of the sectors with high

economic potential within the municipality together with agriculture and agro-

processing. The area has tremendous natural and heritage potential. There

appears to be general consensus that tourism demand is well below what

would be expected from an area with such outstanding natural potential.

33

ANNEXURE “A”


5.1.4. Property Development

The development of shopping centres still remains an area of high impact in

terms of creation of jobs in the area. Four shopping centres have been

identified and the private sector has responded well by coming forward with

the intention to invest in this sector. Once the shareholder (GTM) intervenes

and resolves the disputes that have put a halt on the project, the municipal

area stands to reap much needed jobs.

The availability of land to the Municipality presents a particular potential

advantage for GTEDA to create partnerships in the development of office

parks and residential development. This would also contribute to the self-

sustainability of the agency in the long term.

5.1.5. Green Energy

The Provincial Employment Growth and Development Plan looks at green

economy within the context of “agriculture, manufacturing, construction,

installation, and maintenance, as well as scientific and technical,

administrative, and service-related activities that contribute substantially to

preserving or restoring environmental quality.

GTEDA can play a key role in rolling out the Renewable Energy Economy

(REE) programme within the municipal area. Some of the renewable energy

supply sources include:

a) Biogas;

b) Concentrated solar power;

c) Landfill gas;

d) Solar water heaters; and

e) Solar photovoltaic.

34

ANNEXURE “A”


Strategic Outcome Oriented Goals

Strategic Outcome Oriented Goal 1

Increased availability of resources for economic development in the Greater Tzaneen area

Goal statement To continually identify, collect and collate information of

funding institutions and investors, understand their niche and

requirements for accessing their funds and have the number

of business assisted by government funding agencies at 10

and private investors at 5.

The need for South Africa to grow its economy and create jobs has resulted in a

plethora of state institutions meant specifically for the assisting business with funding

and other kinds of support. GTEDA will seek to skew the flow of the resources held

by these organisations to the Greater Tzaneen area.

There are also many other opportunities internationally as well as in the business

community for supporting small businesses that should be identified so that GTEDA

positions itself to exploit these opportunities.

GTEDA should vigorously participate in planning activities of government at all levels to try to

influence development planning, the identification and location of projects as well as the allocation

of funding.


A high level of investment in the local economy

Goal statement Seek and recruit 5 new businesses in the selected focus

industries/sectors/sub-sectors in order to provide stable and

profitable employment opportunities to the residents of the

municipality

At the heart of the GTEDA mandate is attracting investors in the economy. This

means that GTEDA must work towards enhancing competitiveness and a healthy

investment climate in the area.

35

ANNEXURE “A”


The success of efforts towards this goal would make a meaningful contribution

towards realising the key priorities of the NDP vision 2030.


A thriving SMMEs sector in Greater Tzaneen

Goal statement Incubation of 2 existing entities in the selected sectors and in

the growth points and facilitate the starting up and success of

5 new business.

Limpopo Provincial Government has an Enterprise Development Programme. The

aim of the Enterprise Development Programme is to promote the development and

transformation of the provincial economy by promoting the SMME sector, ensuring

that SMMEs in the province are better able to contribute to and benefit from

sustained economic growth by becoming more competitive, profitable, and able to

create more and better employment opportunities.

GTEDA will therefore, over the next five years, help develop new SMMEs and position existing ones

in the selected strategic sectors for growth and development.


Developed entrepreneurial capacity and increased involvement of PDIs in starting and developing businesses

Goal statement Generate or improve the existing avenues for community

learning and involvement in the business of developing the

local economy. Five (5) interventions must be developed and

implemented.

The majority of residents, entrepreneurs, SMMEs and established businesses in the

municipality do not have access to critical information and the services provided by

funding and support services agencies including LED.

It is also critical that people are an integral part of development, including the

generation of ideas that should shape the nature and direction of such development.

36

ANNEXURE “A”


This is where GTEDA focuses on market intelligence. Market intelligence is a very

important function in the support services that GTEDA renders. Potential investors

will need to know more about their immediate competitors and what potential

markets for their products/services have been identified. This includes the monitoring

of change and trends in demand which are happening in the market place on a

regular basis.

It is also critical that there is alignment among economic development agencies’

programmes and projects to ensure that there is synergised action to achieve the

common objectives


A viable and capable GTEDA

Goal statement Improve the capacity of GTEDA to facilitate and support

economic development and ensure sustainability of the

organisation from a R5m to a R15m revenue budget in five

years

GTEDA needs to build its own human resources capacity as well as to improve

improved institutional management processes. This includes a continual focus on its

business model and efficiency of business processes. It must develop its systems

and possess assets and other facilities that would make it self-sustainable. By so

doing GTEDA would position itself as an effective partner to reckon with in identifying

and implementing economic development initiatives.

37

ANNEXURE “A”


Strategic Objectives


Increased availability of resources economic development in the Greater Tzaneen area

Goal statement To continually identify, collect and collate information of funding institutions and investors, understand their niche and requirements for accessing

their funds and have the number of business assisted by government funding agencies at 10 and private investors at 5.

No. Strategic Objective

Objective Statement /Output

Baseline Indicator and Target

2016/17 2017/18 2018/19 2019/20 2020/21

1. To support

entrepreneurs in

accessing

investment capital

Identify and sign

memoranda of

understanding with

10 funding

organisations

and/or venture

capitalists

MDDA

(GTFM)

Funding

Signed funding

agreements

Target: Two

concluded per

annum.

Sign MOU/SLA

with CPA’s for

each project and

Develop Value

Propositions; and

Develop

Business Plans

for each project

and Appoint

Transactional

Advisors

Develop

Business

Plans for each

project and

Appoint

Transactional

Advisors; and

Submit 10

funding

applications;

Commence

Implementatio

n of Projects;

Apply for

incubation

programme

Conclude 5

funding

agreements;

Implementation

of Projects

continues;

Monitoring and

Evaluation;

Incubation

programme

commences;

Develop Project

Exit Plan

Conclude 5

funding

agreements;

Implementation

of Projects,

Monitoring and

Evaluation and

Incubation

programme

continues; and

Develop Project

Exit Plan

Monitoring

and

Evaluation

Continues;

Finalise

Project Exit

Plan; and

Project

Close Out/

Hand Over

No. Strategic Objective Baseline Indicator and 2016/17 2017/18 2018/19 2019/20 2020/21

38

ANNEXURE “A”


Objective Statement /Output Target

2. To support

entrepreneurs in

accessing

investment capital

Document, advice

and support

entrepreneurs on

all process for

applying for funding

MDDA (GTFM)

Rural

Development

(Leather

Making).

Number of

applications

approved.

Target: One

project

application per

quarter

submitted.

Develop

Business Plans

for each project

and appoint

Transactional

Advisors; Submit

4 funding

applications

Submit 4

funding

applications;

Implementatio

n of Projects;

Apply for

incubation

programme.

Submit 4

funding

applications

Implementation

of Projects,

Monitoring and

Evaluation and

Incubation

programme

continues; and

Develop Project

Exit Plan

Submit 4

funding

applications:

Implementation

of Projects,

Monitoring and

Evaluation and

Incubation

programme

continues; and

Develop Project

Exit Plan

Monitoring

and

Evaluation

Continues;

Finalise

Project Exit

Plan; and

Project

Close Out/

Hand Over

3. To support

entrepreneurs in

accessing

investment capital

Participate in

government

planning processes

to increase the flow

of resources in

favour of Greater

the Greater

Tzaneen area

See Appendix

Attached for

current

baseline in

respect of

each

organisation

(Makgoba Tea

Estates –

Dept. of

Agric/LEDA)

Signed SLA’s

with

government

sectors/

departments

Target: Two

concluded per

annum.

Develop a

database of state

development

funding

organisations and

develop Business

Proposals; and

Sign SLA’s with 2

government

sectors/

departments

Sign SLA’s

with 2

government

sectors/

departments;

Implementatio

n of Projects;

Apply for

incubation

programme

Sign SLA’s with 2 government sectors/ departments; Monitoring and Evaluation and Incubation programme

Sign SLA’s with 2 government sectors/ departments; Implementation of Projects, Monitoring and Evaluation and Incubation programme continues; and Develop Project Exit plan

Monitoring and Evaluation Continues; Finalise Project Exit Plan; and Project Close Out/ Hand Over

Strategic Outcome A high level of investment in the local economy

39

ANNEXURE “A”


Oriented Goal 2

Goal statement Seek and recruit 5 new businesses in the selected focus industries/sectors/sub-sectors in order to provide stable and profitable

employment opportunities to the residents of the municipality

No Strategic Objective

Objective Statement


2016/17 2017/18 2018/19 2019/20 2020/21

4. To promote a

conducive

investment climate

in Greater Tzaneen

and attract suitable

investors.

Research and

document/profile the

potential of Greater

Tzaneen as a

tourism and

investment

destination for the

national and

international market

Transactional

Advisors

(Sapekoe Tea

Estates)

Value

Propositions

(Retail studies)

Rand value of

Investment

attracted

Target:R20 mil in 5

years

Benchmark on

profiling of

Investment

promotions

and

Appoint

Consultant

(Transactional

Advisors);

Package/

profile Greater

Tzaneen as a

tourism and

investments

and Develop

Value

Propositions

Sign Off

tourism and

investments

profile; and

Appoint

Marketing

and

Investments

Manager /

Outsource

Promotion of

Greater

Tzaneen as

a tourism

and

investments

Conclude

5

Investme

nts

agreemen

ts/ SLA

Conclude 5

Investments

agreements/

SLA

Conclude 5

Investments

agreements/ SLA

No Strategic Objective Baseline Indicator and 2016/17 2017/18 2018/19 2019/20 2020/21

40

ANNEXURE “A”


. Objective Statement Target5. To promote a

conducive

investment climate

in Greater Tzaneen


investors.

Identifying

bureaucratic delays

and raising these

with the municipality

and other

government

agencies and

departments, e.g.

business registration,

EIA/HIA applications,

business permits and

licences and zoning

applications etc.

Draft

Investment

Policy (in

coordination

with GTM)

A documented

analysis report

and number of

engagements

with the

municipality on

shortening

processes

MOU/SLA

signed with

Three Investors

Target: Three

Investments

Attracted/

secured in GTM

Adopted

Investment

Policy; Obtain

Council

Resolution on

committed

Incentives;

Commence

preparation

for

International

Investor

Conference

Host National

Investor

Conference;

Appoint

Events

Management

Consultant;

and Launch

the

International

Investor

Conference

Host

Internationa

l Investor

Conference

; and

Secure/

Attract

Three

Investors

Host International Investor Conference; and Secure/ Attract Three Investors

Host International Investor Conference; and Secure/ Attract Three Investors

No Strategic Objective Baseli Indicator and 2016/17 2017/18 2018/19 2019/20 2020/21

41

ANNEXURE “A”


. Objective Statement ne Target6. To promote a

conducive

investment climate

in Greater Tzaneen


investors.

Support the

development of new

or improvement of

existing 4 tourism

products or services

in the growth market

areas (special

interest tourism)

Greater

Tzanee

n

Touris

m

Develo

pment

Frame

work

(Feasib

ility

Study

conduct

ed)

Number of

initiatives

supported

through GTTA.

Target:Conclude 5

SLA/ MOU’s

for strategic

partnerships/

Investors

Develop

criteria for

identifying, a

milestone

checklist for

incubation

programme

and project exit

plans

Identify 5

potential local

initiatives

and Conduct

Impact Risk

Assessment;

and develop

Value

Propositions;

Sign 5

MOU/SLA’S

with CPA’s for

each project;

and Appoint

Transactional

Advisors

Develop

Business Plans

for 5 potential

local initiatives;

Implementation

of Projects;

Apply for

incubation

programme

Provide

Business

Support

Advisory

Services to 5

potential local

initiatives;

Implementation

of Projects

Continues,

Monitoring and

Evaluation and

Incubation

programme

continues; and

Develop

Project Exit

Plan

Provide Business

Support Advisory

Services to 5

potential local

initiatives;

Continues; Finalise

Project Exit Plan;

and Project Close

Out/ Hand Over

42

ANNEXURE “A”



Objective Statement


2016/17 2017/18 2018/19 2019/20 2020/21

7. To promote a

conducive

investment

climate in Greater

Tzaneen and

attract suitable

investors.

In conjunction

with all relevant

stakeholders,

identify and

implement 2

possible

alternative

farms for

traditional food

and medicine

Support of

Restituted

farms

through

BSSC; and

facilitated

Investment

for

Batlhabine

farm

Number of co-

ops functional

and

sustainable

Target: Two

(2) Co-ops

established

Develop criteria

for identifying,

a milestone

checklist for

incubation

programme

and project exit

plans

Identify 2 potential

local initiatives

and Conduct

Impact Risk

Assessment

Sign 2

MOU/SLA’S

with each co-

ops and

develop Value

Propositions

local initiatives;

Implementation

of Projects

Submit

funding

applications for 2

Co-ops

Submit

funding

applications

for 2 Co-ops

8. To promote a

conducive

investment

climate in Greater

Tzaneen and

attract suitable

investors.

Promote agro-

processing of

the sub-tropical

fruits by

facilitating the

development of

3 agro-

processing

businesses (co-

operatives and

home

industries)

Feasibility

Study

conducted

on value

preposition –

value chain

Subtropical

Fruit and Nut

Cluster

Number of co-

ops functional

and

sustainable

Target: Three

(3) agro-

processing

Co-ops.

Conduct

Community

Consultations;

Establish or

identify 3 agro-

processing Co-

ops

Develop milestone

checklist for

incubation

programme and

exit plans for 3

agro-processing

Co-ops; Sign 3

MOU/SLA’s with

each Co-op and

develop Value

Propositions

Appoint

Transactional

Advisors and

Develop

Business Plans

for 3 agro-

processing Co-

ops

Submit

funding

applications for 3

agro-processing

Co-ops

43

ANNEXURE “A”



A thriving SMMEs sector in Greater Tzaneen

Goal statement Incubation of 2 existing entities in the selected sectors and in the growth points and facilitate the starting up and success of 5

new business.


Objective Statement


2016/17 2017/18 2018/19 2019/20 2020/21

9. To provide

information, advice

and support to

businesses to

ensure growth and

sustainability.

Engage with the

local and district

municipalities,

government

departments

and agencies

to, in their

procurement of

goods and

services,

support GTEDA

supported

SMMEs

Not

available

(n/a)

Number of

engagements

with

government

Number of

procurement

opportunities

provided

Target: SCM

SLA’s

Concluded with

5 SMME’s

Identify

Supply Chain

Opportunities

for SMME’s

and Sign 10

MOU’s with

local and

district

municipalities,

government

departments

and agencies

Identify and

Assess

SMME’s as per

criteria checklist

and Sign 5

MOU/SLA’S

with each

SMME

Strength

incubation

programme and

exit plans; and

Facilitate

database

registration

processes

Provide training

to SMME’s on

Supply Chain

Management/

Tendering

Processes and

related SARS

processes

Conclude SLA

with local and

district

municipalities,

government

departments and

agencies


44

ANNEXURE “A”


Objective Statement Target10. To promote

entrepreneurship as

a career of choice

among the youth

In conjunction

with other

stakeholders,

carry out 50

promotional

activities aimed

at raising the

profile of

entrepreneurshi

p as a career of

choice for

residents of

Greater

Tzaneen,

especially

black, women

and people with

disabilities.

BSSC

Accredited

for new

venture

creations

# Public

Participation,

Youth Forums

and Incubation

programmes.

Target: Entrepreneurshi

p

Training

SLA/MOU’s

Develop a

selection

criteria for

identifying, a

milestone

checklist for

incubation

programme

for local

entrepreneurs

; and Secure

Training

Centre

Facility

Identify

strategic

partners in

Entrepreneurshi

p

Incubation

programmes ;

and Sign 5

MOU/SLA’S

with strategic

partners in

Entrepreneurshi

p

Incubation

Provide training

on

Entrepreneurshi

p and Host an

Annual Award

Ceremony for

the Best

Entrepreneur

Provide training

on

Entrepreneurshi

p and Host an

Annual Award

Ceremony for

the Best

Entrepreneur

Provide training on

Entrepreneurship

and Host an

Annual Award

Ceremony for the

Best

Entrepreneur

45

ANNEXURE “A”



Objective Statement


2016/17 2017/18 2018/19 2019/20 2020/21

11. To provide

information, advice

and support to

businesses to

ensure growth and

sustainability.

In collaboration

with LED, SEDA

and others,

provide support

services to 10

SMMEs to enable

them to start and

become

successful

beyond the first

three years of

inception and

operation

Community

Bank

Established

(Greater

Tzaneen

Financial

Services

Cooperative)

through

BSSC

# Business

Incubation

Programme

implemented.

Target: Concluded

MOU on

incubation

programme

with strategic

partners/

funders

Develop a

selection

criteria for

identifying, a

milestone

checklist for

incubation

programme

and exit

plans for

SMME’s

Identify

strategic

partners

and Sign 5

MOU/SLA’S

with strategic

partners on

SMME

Incubation

programme

and Develop

Self

Sustainability

Strategies

Develop

Business Plans

and Appoint

Transactional

Advisors; and

submit funding

applications;

and Self

Sustainability

Implementation

Plan

Provide

training on

Business Skills

and

Management;

and Conduct

Monitoring and

Evaluation

Provide training

on Business

Skills and

Management;

Conduct

Monitoring and

Evaluation

Strategic Outcome: Developed entrepreneurial capacity and increased involvement of PDIs in starting and developing businesses

46

ANNEXURE “A”


Oriented Goal 4

Goal statement Generate or improve the existing avenues for community learning and involvement in the business of developing the local economy.

Five (5) interventions must be developed and implemented.


Objective Statement


2016/17 2017/18 2018/19 2019/20 2020/21

12. To cultivate

entrepreneurship

in the broader

community

Identify and

implement 3

meaningful projects

for encouraging

community

dialogue,

networking and

opportunities for

interaction and

development of

innovative ideas

about growing the

Greater Tzaneen

economy

Three projects

identified and

supported.

New project

identified and

adopted by

Council

Target: Concluded

SLA/MOU with

strategic

partners on

establishing an

Ideas Hub

Conduct

Consultative

meetings with the

community in

relation to

establishment of

an Ideas Hub

programme; and

Develop a

selection criteria

for identifying

projects from

Ideas Hub and

milestone

checklist; and

Identify and Sign

MOU/SLA’S with

potential strategic

partners/ funders/

Develop

Business

Plans and

Appoint

Transactional

Advisors; and

submit

funding

applications;

Host an

Annual

Award

Ceremony for

the Best

Ideas

Host an

Annual

Award

Ceremony

for the Best

Ideas

Host an

Annual Award

Ceremony for

the Best

Ideas

Host an Annual

Award

Ceremony for

the Best Ideas

47

ANNEXURE “A”


investors in

establishing an

Ideas Hub

programme

13. To provide

information,

advice and

support to

businesses to

ensure growth

and sustainability.

Initiate 15 in-house

training to project

participants to

enable skills

development and

effectiveness.

Registered

with the

Services

SETA but no

training

activities have

taken place.

Accreditation

lapses in

March 2016.

Signe MOU with

SETA and

Universities

Target:15 In-House

training by

SETA and

Universities or

other strategic

partners

Conduct

Consultative

meetings and

Skills Audit within

the GTM

Community; and

Identify and Sign

MOU/SLA’S with

potential strategic

partners on Skills

Training

Develop

Business

Plans and

submit

funding

applications:

Provide 2

trainings on

Business

Skills and

Management

as per skills

gap

identified.

Provide 3

training on

Business

Skills and

Management

as per skills

gap identified

Provide 5

training on

Business

Skills and

Management

as per skills

gap identified

Provide 5

training on

Business Skills

and

Management as

per skills gap

identified

No. Strategic Objective Baseline Indicator and 2016/17 2017/18 2018/19 2019/20 2020/21

48

ANNEXURE “A”


Objective Statement Target14. To develop

effective

partnerships with

economic

development role-

players

Development of

formalised

partnerships with 5

economic

development

agencies at the

international,

national, provincial

and local levels

SLA

concluded

with

LEDA/LDA

(Sapekoe Tea

Estates)

# Facilitated

SLAs with

identified

stakeholders

Target:5 SLA’s

concluded

Identify and Sign

2 MOU/SLA with

potential strategic

partner; and

Facilitate/

Coordinate the

LED Forum

Identify and Sign 2 MOU/SLA with potential strategic partner; and Facilitate/ Coordinate the LED Forum




49

ANNEXURE “A”


Strategic Outcome: Oriented Goal 5

A viable and capable GTEDA

Goal statement Improve the capacity of GTEDA to facilitate and support economic development and ensure sustainability of the organisation from

a R5m to a R50m self-generated revenue budget in five years


Objective Statement


2016/17 2017/18 2018/19 2019/20 2020/21

15. Develop

economic

research and

analytical

capacity of

GTEDA

To undertake

research aimed at

providing the basis

for development

policy and

programme

implementation

focusing on poverty

eradication,

unemployment and

inequality.

Not available

(n/a)

Number of

research

reports

Target:MOU/SLA

concluded with

1 Research

Institution

Develop

TOR’s for

Research and

Development

Reports

required; and

Identify and

Sign 1 MOU

with 1

Research

Institution; and

Develop

Research and

Development

Policy

Develop

service

value

propositi

on

proposal;

and

Identify

Client

base for

provision

of

service

on latest

date and

sign SLA

Provide

informatio

n on latest

Research

data to

subscribe

d

stakehold

ers

Provide

informatio

n on latest

Research

data to

subscribe

d

stakehold

ers

Provide

information on

latest Research

data to

subscribed

stakeholders


50

ANNEXURE “A”


. Objective Statement Target

16 To improve

organisational

skills, systems and

processes

Procure technology

and services to enable

GTEDA to provide

market research and

intelligence services to

investors.

SMME Support

through BSSC

in partnership

with SEDA,

LIMDEV etc.

LEDA

Impact of

Business

advisory

services

provided

Target:Signed 5 SLA’s

between

SMME’s and

Investors

Develop criteria

for identifying, a

milestone

checklist for

incubation

programme and

project exit

plans; Identify 5

potential

SMME’s

and Conduct

Impact Risk

Assessment

Sign MOU

with 1

SMME’s

and

Facilitate

funding/

strategic

partnership

s/ Investors

Sign MOU

with 1

SMME’s

and

Facilitate

funding/

strategic

partnership

s/ Investors

Sign MOU with 1

SMME’s and

Facilitate funding/

strategic

partnerships/

Investors


51

ANNEXURE “A”


Objective Statement Target17. To improve

organisational

skills, systems

and processes

To develop and

implement

systems and

processes to

improve efficiency

and effectiveness

of internal control

and

organizational

performance

Skills audit

conducted in

financial year

2012/13

# Work skills

Development

plan and skills

audit initiated

Number of IT

Systems

Number of

policies.

Target:Skills

development

training and

workshops

provided

Conduct

Organisational

Skills Audit and

Identify and

Sign

MOU/SLA’S

with potential

strategic

partners on

Skills Training

submit funding

applications on

trainings; and

Provide 3

training on

Business Skills

submit

funding

applications

on : trainings;

and Provide

3 training on

Business

Skills and

Management

as per skills

gap identified

Provide 3 training

on Business

Skills and

Management as

per skills gap

identified

Provide 5

training on

Business Skills

and

Management as

per skills gap

identified

Provide 5

training

on

Business

Skills and

Managem

ent as per

skills gap

identified

18. To acquire and

manage assets

and other facilities

To facilitate

funding for

procurement of

capital assets

Fixed Asset

Register (i.e.

Furniture and

fittings, office

and computer

equipment)

% increase in

Balance Sheet.

Target:Acquire Vacant

Land for

development

Identification of

potential

municipal

vacant land and

submit request

GTM for transfer

of Vacant Land

Obtain GTM

Council

Resolution

Transfer of

Land for

Business

development

Sign Concluded

Transfer of Land

documentation;

and Commence

Title deeds

registration

processes

Obtain Title deed

for Vacant Land;

and Develop

Building Plan for

Office Park and

Quotation on

Building package

Building

of Office

Park

commenc

es

52

ANNEXURE “A”


6. BUSINESS MODEL

Figure 8: GTEDA Business Model

GTEDA’s business model is also premised on the Balance Score Card approach

which is meant to ensure that our energies are aligned to our vision and strategy in a

manner that leads to balanced institutional performance. The balanced score card

posits the organisation from four perspectives, namely, the Customer Perspective,

Learning and Growth Perspective, Internal Perspective and the Financial

Perspective. To each perspective GTEDA identifies key drivers/pillars of success. As

53

ANNEXURE “A”


can be seen from the model, some of these drivers/pillars straddle more than one

perspective by their very nature.

6.1. The Customer Perspective

6.1.1. Brand BuildingGTEDA must improve the worth of its brand through marketing and

promoting itself. The organisation however considers branding as

inextricable from the total process of developing the organisations. It is, in

the final analysis, its own capabilities and value-add that will increase its

reputation in the eyes of the public and customers.

6.1.2. Selection and Service The strategy is there to guide GTEDA in deciding the programmes and

projects it engages in. Therefore selection thereof, including the selection

of persons that should be its customers is critical. The relevance and

potential impact of a programme and the energy of the entrepreneur

directly affect the level of service that GTEDA would provide to the

customer. The customer’s service experience at GTEDA is a matter for

particular attention so that it is perfected continually.

6.1.3. Partnership In as much as GTEDA has clients, it views them also as partners in the

immediate and the long term. Apart from those receiving support from

GTEDA, the organisation also needs many other institutions to be able to

deliver on its core business. Creating partnerships in all perspectives is

therefore paramount.

6.1.4. Graceful Exit Post project establishment, GTEDA will generally incubate a project for not

more than two (2) operational/ financial years. It is a key indicator of a

successful project when an institution is able to graceful exit it in a healthy

54

ANNEXURE “A”


and profitable state. GTEDA will also exit projects that do not succeed

when in its view success is improbable within a reasonable period.

6.2. Internal Perspective

6.2.1. Sustainability and Pitfall Avoidance Pre-assessment and risk identification will be conducted on all initiatives in

order to set the risk appetite and develop remedial action plans. GTEDA

should not unduly waste public resources on projects that are apparently

to falter. GTEDA should also take measures to secure its participation and

investments in any or all projects through service level agreements.

6.2.2. Innovation Processes The organisation will seek to create an environment and opportunities for

internal innovation and input from its clients and stakeholders. Establishing

of Ideas Hub is already one of the strategic projects in line with this. It will

create a platform where the community will be engaged in project

identification and prioritisation.

6.2.3. Operations Management ProcessesIt is critical that GTEDA pays attention to its operating processes in order

to have the assurance of the changes of producing excellent services to

customers. Constant refinement of work methodologies is paramount to

the execution of organisational strategies.

6.2.4. Regulatory and Social Processes As a public service organisation, albeit of a different character, GTEDA

cannot fall foul of compliance to the applicable prescripts. It is also

important that the organisation discharges its social responsibility in an

exemplary manner. Over and above legislation and the applicable

regulations, directives etc. from relevant authorities, GTEDA subscribes to

King III as the key guiding document.

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ANNEXURE “A”


6.3. Financial Perspective

6.3.1. Cost Recovery GTEDA is under pressure to sustain itself financially. It therefore should

look for appropriate opportunities to recover the cost of its involvement in

projects from sponsors or through financial structuring or directly from

clients themselves.

6.3.2. Return on Investment GTEDA must provide a quality service that should enable it to not only

recover costs in other instances but to also make a profit. The Agency

should acquire the resources to enable it to do so as it pursues its

objectives.

6.3.3. Regulatory Processes GTEDA must maintain its prudent management of financial resources and

remain accountable.

6.4. Learning and Growth Perspective

GTEDA believes that if we are to truly make an economic difference, there

is no better way than through education and exposure to ensure that an

entrepreneurial culture is instilled in the hearts of our youth and the

community at large.

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ANNEXURE “A”


7. RESOURCE CONSIDERATIONS

Actual expenditure

Detail per Classification Outcome Adjusted Appropriation

R thousand 2013/14 2014/15 2015/16Employee Related Costs R3,105 R3,231 R3,238

Contracted Services R401 R432 R523

Administration Expenses R1,841 R1,531 R1,888

Project Cost R368 R455 R690

Capital Expenses R62 R0 R2

Total Expenditure R5,779 R5,650 R6,342

Approved Grant Funding: GTM R2, 375 R2, 500 R6, 342

Approved Grant Funding: IDC R3, 000 R3, 000 Contract Ended

Other Income: Facilitation Fees R 100 Contract Ended Contract Ended

Total Revenue R5, 475 R5, 500 R6, 342

The Employee Related Cost has increased over three financial years 2013/14 to

2015/16 by 7% respectively due to an across the board Annual Increment as per the

South African Local Government Association’s approval (SALGA).

The Contracted Services has increased over three financial years 2013/14 to

2015/16 by 0%, 2% and 6% respectively.

The Administration Expenses has increased over three financial years 2013/14 to

2015/16 by 1%, -23% and 8% respectively.

The Project Cost has increased over three financial years 2013/14 to 2015/16 by

2%, 18% and 1% respectively.

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ANNEXURE “A”


The Capital Expenditure has increased over three financial years 2013/14 to

2015/16 by 100%, 2998% and 0% respectively.

8. GROWTH PLAN Projected Annual Budget

Detail per Classification

Multi-year Projections

R thousand 2016/17 2017/18 2018/19 2019/20 2020/21Employee Related Costs R3,500 R3,700 R3,967 R4,200 R4,452

Contracted Services R700 R700 R700 R700 R1,000

Administration Expenses R1,300 R1,300 R1,300 R1,300 R1,300

Project Cost R3,665 R4,015 R4,398 R4,865 R4,978

Capital Expenses R235 R235 R235 R235 R248

Total R9,400 R9,950 R10,600 R11,300 11,978

Approved Grant Funding: GTM

R6, 735 R6, 948 R7, 363 R7, 805 R8, 273

Potential Strategic Funder/Investor

R5,600 R10,000 R15,000 R20,000 R35,000

Other Income: Facilitation Fees (Potential Strategic Investor)

R2,665 R3,051 R4,500 R5,000 R6,727

Total Revenue R15,000 R20,000 R26,863 R32,805 50,000

The projected Multi-Year Annual Budget illustrated above increased by 6% annually

over the four (4) financial years 2016/17 to 2019/20 respectively. This budget

encompasses the development of the Greater Tzaneen Area’s Growth Development

Plan which is central to outlining our shareholder’s Vision 2030 to transform the

Greater Tzaneen Municipality into a city; and in support of this vision, GTEDA’s

strategy focuses on key economic drivers which will ensure enormous increase in

the population of Greater Tzaneen.

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ANNEXURE “A”


In 2016/17, GTEDA will be nationally launching an international Agri-Tourism

Investor Conference in the Greater Tzaneen, an event to be hosted annually around

September from the 2017/18 financial year. Therefore the Greater Tzaneen Area has

potential to be the future biggest tourism destination in the country.

9. RISK MANAGEMENT

GTEDA Board conducts an annual risk assessment to identify potential challenges

and the top ten strategic risks thereof are prioritised and will be managed on a

regular basis.

NO STRATEGIC RISK LINK TO STRATEGIC OBJECTIVE

MITIGATION STRATEGY

1.Inability to Sustain the Agency as a going and growing concern.

Through the Strategic review, 5 focus

areas have been identified but if there

is cost cutting or the budget does not

grow, GTEDA will not be able to grow /

implement the portfolio of projects.

2,6,9A funding model to be developed that

will enable GTEDA to source additional

funding.

Reprioritisation of projects to

accommodate the budget.

Source more funding for project

implementation.

2. Lack of Business Continuity Plan

(BCP)

7,8 Allocate funding to participate in the

GTM off-site back up plan

3. Divergent understanding of the role

and mode of operation of GTEDA 6,3Ongoing engagement on the GTEDA

Strategic Plan and processes to key

stakeholders.

Expose stakeholders to other successful

agencies.

4.Inability to secure land for

development 6,9 Engage Traditional Authorities on

economic development benefits

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ANNEXURE “A”


5. Impact of politics on the functioning of

GTEDA and investment decisions 2,6Improve stakeholder engagements.

Engage GTM Council to facilitate

political intervention and secure

stakeholder support for projects.

6. Inability to attract and sustain

investors 2,6 Obtain GTM Council commitment on

Investor Incentives

7. Inability to retain staff due to lack of

job security. 6,7,8,9Develop staff retention policy

8. Negative assessment of the impact of

GTEDA by AGSA, GTM and Treasury 2,3,6,7,8 Accelerate delivery of viable and

sustainable economic development

projects.

10. CONCLUSION

The Strategic Plan has identified the opportunities that need to be pursued; mapped

out goals and assessed potential results for each opportunity. The GTEDA Board,

together with Management therefore must stimulate relationships and identify

projects that will grow the economy and attract more revenue. This is essentially at

the core of the mandate of GTEDA.

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