Presented by: “Me Hloni” Maboe - Phike, Municipal Manager for Masilonyana Local Municipality

ABOUT THE MUNICIPALITY  A peri-urban, level 3 municipality situated in the Free State.  We fall under Lejweleputswa District municipality.  Head Office is in Theunissen and there are four other towns in the area, Brandfort, Winburg, Verkeerdevlei and Soutpan.  We have 371 employees in the municipality

SOCIO-ECONOMIC PROFILE  67% of young population (that is people younger than 35), must enter labour market.  There is an unemployment rate of 26-28% and economically-not- active 38%  Low skilled workers (56%)  elementary occupations (33%)  with only 20% white collar workers.

SOCIO-ECONOMIC PROFILE  Mining dominates GDP at (24%)  Agriculture (17%)  Community Services (13%)  Manufacturing/retail are small contributors who need a new injection and focus  Low household incomes.

SOCIO-ECONOMIC PROFILE  In the District the average household income is R1824 while in Masilonyana Local Municipality the average income is at (R 1371)  There is low schooling levels among community members.  Conclusion: There is a dire need for job creation and sustainable projects and proper accredited training.

BROAD OBJECTIVES – TO DEAL WITH ECONOMIC CHALLENGES  Aggressive Local Economic Development strategy and procurement policy to address the challenges of the community.  Human development critical – given challenges of illiteracy.  Create sustainable jobs for our people  Working in collaboration with the mines, agricultural sector and other established local businesses

BROAD OBJECTIVES – TO DEAL WITH ECONOMIC CHALLENGES  To establish and support cooperatives to convert second economy businesses in Masilonyana radius into the first economy businesses.  To focus on agro-processing and exports of agricultural products.  To also attract both national and international investors to the municipality  To establish an organization with the capacity of national expansion.

KEY STAKEHOLDERS – to work with for economic development Government/Munici pality Communi ty/People Private sector/ Mines

SECTORS TO DRIVE GROWTH Financial Sector Retail Business Sector Building Maintenance & Manufacturing Sector General Cleaning Services Sector Safety & Security Mining Sector CORE SECTORS

CONSTRUCTION SECTOR - FACILITATE PARTNERSHIPS  Bucket eradication program presented opportunity  None of local companies had the necessary cidb level of grading.  A strategy was then developed to link local constructors with main Constructor.  Key elements of the strategy were to ensure that local companies participate fully in the projects.

CONSTRUCTION SECTOR - FACILITATE PARTNERSHIPS  Set up Masilonyana Business Forum  Municipal officials to not get involved with this process  This process must not interfere with the legal tendering processes.  Benefits of this process resulted in local contractors moving to better CIDB grades.  We are working on replicating this in our other projects like R30/R34 and N1 roads construction.

CONSTRUCTION SECTOR - FACILITATE PARTNERSHIPS  The strategy was to ensure that any tender awarded allocates 30-50% of the project value to local contractors.  Challenges arose as to the criteria of matching companies.  A transparent, fair, clean and participatory processes were established and followed.  The sharing of the procurement spend must be across various towns within the municipal area.

SOME COMPANIES THAT BENEFITED FROM OUR EFFORTS  Naledi Construction – Situated in Theunissen/Masilo.  Have completed an R8m bucket eradication project in Theunissen/Masilo.  Scope was as follows: Construction of 762 toilets with connections and 7.7 km of pipeline.

SOME COMPANIES THAT BENEFITED FROM OUR EFFORTS  Zigana Mbele construction situated in Brandfort/Majwemasweu.  They have completed a R5.2m bucket eradication project in Brandfort/Majwemasweu successfully.  Scope of work was as follows: construction of 1050 toilets with connections.  Numerous joint ventures and sub contractors also benefitted from this process.  Skills training and transfer needs to be improved

BEYOND PROCUREMENT – MINE COMPANIES  Partnerships with mining companies to develop the local economy.  We work with mines in our jurisdiction towards achieving the above (Honouring mining charter).  They are Beatrix, Harmony and Star Diamond as well as new mines in establishment phase in our jurisdiction.  Eg.: They are all committed to building a Business Development Centre for the municipality with other government departments.

CONCLUSION We should continue to strife to uncover new areas where communities should be empowered to explore and benefit from the economies across our country and beyond. As Masilonyana Municipality motto dictates: “Together we’ll Succeed” !!!RE A LEBOGA!!!