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The dplg June 20071 PRESENTATION TO THE PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT BRIEFING ON THE NODES 12 June 2007.

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Presentation on theme: "The dplg June 20071 PRESENTATION TO THE PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT BRIEFING ON THE NODES 12 June 2007."— Presentation transcript:

1 the dplg June PRESENTATION TO THE PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT BRIEFING ON THE NODES 12 June 2007

2 the dplg June 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)

3 the dplg June NATIONAL AND PROVINCIAL SECTOR SUPPORT. 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

4 the dplg June NATIONAL AND PROVINCIAL SECTOR SUPPORT. PROVINCECOMMENTS LimpopoOffice 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 MpumalangaProvincial/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 CapeNew provincial coordinator No coordinating structure- meeting with HODS To explore structures pending Political champ visits monthly- technical and political meeting

5 the dplg June NATIONAL AND PROVINCIAL SECTOR SUPPORT. PROVINCECOMMENTS Western CapeGood 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 CapeCoordinating 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 stateCoordinating 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 NatalProgramme 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.

6 the dplg June 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

7 the dplg June PRELIMINARY IMPACT ASSESSMENTS RESEARCH DONE IN THE NODES PRELIMINARY IMPACT ASSESSMENTS SUMMARY OF KEY FINDINGS Delivery 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 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

8 the dplg June PRELIMINARY IMPACT ASSESSMENTS: RESEARCH DONE IN THE NODES. PRELIMINARY IMPACT ASSESSMENTS: SUMMARY OF KEY FINDINGS: Housing 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.

9 the dplg June PRELIMINARY IMPACT ASSESSMENTS RESEARCH DONE IN THE NODES. PRELIMINARY IMPACT ASSESSMENTS Summary of key finding Economic 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.

10 the dplg June PRELIMINARY IMPACT ASSESSMENTS RESEARCH DONE IN THE NODES PRELIMINARY IMPACT ASSESSMENTS Economic Development: implications 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.

11 the dplg June PRELIMINARY IMPACT ASSESSMENTS RESEARCH DONE IN THE NODES PRELIMINARY IMPACT ASSESSMENTS SUMMARY OF KEY FINDING: Justice, Crime Prevention And Safety Justice, 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.

12 the dplg June PRELIMINARY IMPACT ASSESSMENTS RESEARCH DONE IN THE NODES PRELIMINARY IMPACT ASSESSMENTS SUMMARY OF KEY FINDING Cooperative Governance Cooperative 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, CLOs, in some cases. Ward committees need support and training to assist them in their communication function.

13 the dplg June PRELIMINARY IMPACT ASSESSMENTS : DETAILS PER NODE: MALUTI-A-PHOFUNG RESEARCH DONE IN THE NODES. PRELIMINARY IMPACT ASSESSMENTS : DETAILS PER NODE: MALUTI-A-PHOFUNG

14 the dplg June PRELIMINARY IMPACT ASSESSMENTS: MALUTI-A- PHOFUNG Key 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 – new water connections, sanitation connections and 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 backlog, is in the deep rural areas.

15 the dplg June PRELIMINARY IMPACT ASSESSMENTS: MALUTI-A- PHOFUNG Key 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.

16 the dplg June PRELIMINARY IMPACT ASSESSMENTS : DETAILS PER NODE: ALFRED NZO RESEARCH DONE IN THE NODES. PRELIMINARY IMPACT ASSESSMENTS : DETAILS PER NODE: ALFRED NZO

17 the dplg June PRELIMINARY IMPACT ASSESSMENTS: ALFRED NZO Key findings for service delivery achievement: Alfred Nzo Water, sanitation and electricity: (57%) of hhs has benefited from provision of water, with the backlog standing at 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 VIP toilets per annum – but to eradicate the backlogs this programme will have to be accelerated to units per annum. Electricity:10710 connections made between 2003 and % benefit from FBW; FBE has improved from 5% to 33% Housing: 4521 units at the cost of R82.9billion were planned for % of housing project had been completed benefiting 4332 hh; Additional 1006 disaster relief houses were built

18 the dplg June PRELIMINARY IMPACT ASSESSMENTS: ALFRED NZO Key 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.

19 the dplg June PRELIMINARY IMPACT ASSESSMENTS : DETAILS PER NODE: ALEXANDRA RESEARCH DONE IN THE NODES. PRELIMINARY IMPACT ASSESSMENTS : DETAILS PER NODE: ALEXANDRA

20 the dplg June PRELIMINARY IMPACT ASSESSMENTS: ALEXANDRA Service 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 new pre-paid connections installed since 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 units units were built for relocated families 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.

21 the dplg June PRELIMINARY IMPACT ASSESSMENTS: ALEXANDRA Economic 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, 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.

22 the dplg June PRELIMINARY IMPACT ASSESSMENTS : DETAILS PER NODE: MOTHERWELL RESEARCH DONE IN THE NODES. PRELIMINARY IMPACT ASSESSMENTS : DETAILS PER NODE: MOTHERWELL

23 the dplg June PRELIMINARY IMPACT ASSESSMENTS: MOTHERWELL Service 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: hhs have access to electricity as of 2005 (out of 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.

24 the dplg June PRELIMINARY IMPACT ASSESSMENTS: MOTHERWELL Economic 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.

25 the dplg June RESEARCH DONE IN THE NODES. ECONOMIC PROFILING OF THE 21 RURAL AND URBAN NODES

26 the dplg June 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 Building Productive and Sustainable Nodal Economies was developed. This POA is 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)

27 the dplg June NODAL ECONOMIC PROFILES: CONTENT OF EACH NODAL ECONOMIC PROFILE Snapshot Area Summary Key Challenges Demography Income and Employment Health Development Scorecard Governance IDP Assessment Education IntroductionIntroduction Key Data Points Current Action Introduces the node; summarizes key issues Lists pertinent acts and figures Describes current interventions Geography, Vegetation, Climate, Soil Spatial Development Development Projects Local People Portrait

28 the dplg June Rural Nodes: What needs to be done? Solutions to Constraints / Investment Opportunities (1/5) Umkhanyakude Ugu 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 UKhahlamba 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

29 the dplg June Rural Nodes: What needs to be done? Solutions to Constraints / Investment Opportunities (2/5) Alfred NZo OR Tambo Umzinyathi 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 Improve basic road, water and electricity infrastructure 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 Address skills gap within municipalities Manufacturing in Msinga

30 the dplg June Rural Nodes: What needs to be done? Solutions to Constraints / Investment Opportunities (3/5) Zululand Maluti Sekhukune 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 Address skills gap within municipalities 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

31 the dplg June Rural Nodes: What needs to be done? Solutions to Constraints / Investment Opportunities (4/5) Chris Hani Busbuckridge Central Karoo 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 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

32 the dplg June Improve basic road, water and electricity infrastructure 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 Rural Nodes: What needs to be done? Solutions to Constraints / Investment Opportunities (5/5) Kgalagadi Maruleng 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

33 the dplg June Urban Nodes: What needs to be done? Solutions to Constraints / Investment Opportunities (1/3) INK Ghaleshewe Motherwell 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. Kimberleys short-term opportunities lie in mineral beneficiation, tourism and agro-processing. Given the relatively high quality of the Northern Capes 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 SMMEs: 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 areas 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 Motherwells 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

34 the dplg June 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 Alexandras 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 Mitchells Plains 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 Mitchells Plain False Bay College branch is in need of funding from the Provinces FET grant Social interventions are necessary to limit gang activity in Mitchells Plain Informal businesses in Mitchells Plain need to be educated about the benefits of formalisation Urban Nodes: What needs to be done? Solutions to Constraints / Investment Opportunities (2/3) Alexandra Kayelitsha Mitchells Plain

35 the dplg June Urban Nodes: What needs to be done? Solutions to Constraints / Investment Opportunities (3/3) Mdantsane 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

36 the dplg June 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 OPPORTUNITIES HAVE BEEN IDENTIFIED AND PROFILED.

37 the dplg June Economic profiling project: actions for sector departments –Rural Nodes –Urban Nodes

38 the dplg June Rural Nodes Department 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 farmers Sekhukhune 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 products Umkhanyakude 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

39 the dplg June Rural Nodes Department 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 BBRs 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 Africas global tourism plan. Summary of Actions for DEAT Source: Node Profiles

40 the dplg June 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 UkhahlambaSpeedily expedite outstanding land claims Umkhanyakude Work with the Land Claims Commission to resolve existing claims UmzinyathiMake land claim/tenure process more transparent ZululandSpeedily 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 Source: Node Profiles

41 the dplg June 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 Source: Node Profiles

42 the dplg June 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 Source: Node Profiles

43 the dplg June Rural Nodes: Other Government Departments DepartmentNodeACTIONSSUMMARY Department of Water and Forestry Affairs Zululand Provide water to emerging farmers, especially in the vicinity to Injaka DamWork 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 Manyeleti Prioritise development of transport networks in potential zones of economic development Central 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 backlogsAccelerate delivery of bulk infrastructure with priority given to potential commercial zones Department of Education Bushbuckridge Re-activate Mapulaneng and complete revival of Hoxani training collegeUtilise teacher training colleges that were shut down Department of Correctional Services Central Karoo Build a correctional facility outside Beaufort WestInvest in the node while attempting to address prison overcrowding Source: Node Profiles

44 the dplg June Urban Nodes: Government DepartmentsDepartmentNodeACTIONSSUMMARY Department of Housing AlexandraEnforce of property rights and manage tenure issues Address housing backlogs GalesheweDeliver public housing backlog KhayelitshaPrioritise 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 AlexandraEncourage 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 KhayalitshaEncourage the formalisation of businesses Mitchells PlainEncourage the formalisation of businesses MotherwellLeverage 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 Mitchells Plain Station Mdantsane Cordinate SARA to initiate developments around Mt Ruth Station Mitchells PlainIncrease efficiency of public transport Department of Labour MdantsaneMake use of, sell or re-establish Border Training Centre Re-assess role of Training Colleges Source: Node Profiles

45 the dplg June NODAL ECONOMIC PROFILING: NEXT STEPS The Profiles are intended to act as a decision support tool for government and other stakeholders who would like to understand and act on the economic 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)

46 the dplg June RESEARCH DONE IN THE NODES. LESSONS LEARNT IN THE IMPLEMENTATION OF THE URBAN RENEWAL PROGRAMME (Note: ISRDP Lessons Learnt study currently underway, to be finalised July 2007).

47 the dplg June URP LESSONS LEARNT LESSONS PERTAINING TO THE PROJECT CYCLE: -Project selection -Project objectives -Project preparation and design -Institutional arrangements -Implementation SECTORAL LESSONS -governance, finance, institutions -Economic development -Service delivery -Infrastructure and housing -Social services -Greening & environment -Public safety -Communications More than 100 lessons, supported by 25 case studies and stories.

48 the dplg June 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.

49 the dplg June 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. SOEs and parastatals must make their land holdings available for development that will benefit the nodal communities.

50 the dplg June 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.

51 the dplg June 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.

52 the dplg June ISSUES FOR INTERVENTION ISSUERESPONSIBILITY 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

53 the dplg June ISSUES FOR INTERVENTION ISSUERESPONSIBILITY 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

54 the dplg June URD BRANCH BUDGET URBAN AND RURAL DEVELOPMENT 2006/07 Adjusted Appropriation 2007/082008/092009/10 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 EM ISRDP: vacant since Dec Interviews July Four new Deputy Directors (3 female, 1 male) recruited and started January 2007.

55 the dplg June THANK YOU


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