1. Source: Municipal Demarcation Board (2013) MOGALAKWENA LOCAL MUNICIPALITY Municipal Profile Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 Page1 The Housing Development Agency (“HDA”) is a national public development agency that promotes sustainable communities by making well located and appropriately planned land and buildings available for the development of human settlements. The Agency has developed and deployed an information system which includes municipal profiles for selected municipalities. The intent of this profile is to provide guidelines and advice to Provincial Department of Human Settlements as well as municipalities on efficient utilization of land and economic government infrastructure investments in support of integrated human settlements development.introduction The template was compiled for the Housing Development Agency using a number of different data sources. The 2011 Census information from StatsSA was used extensively to represent socio-economic information. The financial profile data was extracted from the municipalities’ most recent financial statements. The Integrated Development Plan (IDP), Housing Development Plan (MHDP) and Spatial Development Framework of each municipality also provided inputs into the municipal profile. Where possible, each source of information is quoted as part of the specific figure, table or chart. The municipal profile is structured in the following sections: Section 1 provides background information on the municipality, including land use data; Section 2 deals with demographic information such as population growth and income; Section 3 provides an economic overview of the municipality; Section 4 investigates the financial status of the municipality; Section 5 gives headline data on the property market in the municipality; Section 6 looks at housing demand and historic delivery of RDP houses; Section 7 displays a land rent analysis Section 8 provides a snapshot of water, sanitation and electricity delivery; Section 9 displays a cost surface analysis Section 10 deals with budget implications of servicing the housing backlog, Section 11 analyse the performance of the planning function at municipal level. about the template Mogalakwena Local Municipality is situated in the western quadrant of Limpopo, within the western district of the Waterberg Municipality, and is bordered by Aganang to the east, Mookgopong to the south, and Lephalale to the north. The municipality is almost 616 630 hectares in extent, of which 3,2% is developed. Contact Details: PO Box 34, Mokopane, O600 54 Retief Street, Mokopane, 0600 Tel: (015) 491-9630 Fax: (018) 464-1780, Email: customerservices@matlosana.local.gov.za, Website: http://www.mogalakwena.gov.za Mogalakwena Local Municipality

2. Demarcation Board - 2011 StatsSA -2011 Section 1: Background Source: Limpopo Province, Land Cover Data set, ESKOM 2013, GeoTerraImage (GTI) Pty Ltd, Pretoria, South Africa Almost 62,44% (in terms of geographic area) of Mogalakwena LM is covered in bush fields. Mining, although a very important economic industry, consumes only about 0,45% of the surface area of Mogalakwena LM. More than 96,65% of the municipality is currently vacant/undeveloped. Page2 Mogalakwena LM has 178 Rural Settlements (Tribal / Traditional villages) spread across its municipal boundary, 70,93% of the population reside in these areas. % population residing in Tribal/Traditional Villages70,93% 70,93% 27,32% % population residing in Urban Areas 27,32% Municipal Profile MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 Land Cover CategoryHectare Bare 1,68% Bush 62,44% Chicken / Pig batteries 0,00% Cultivated Land 12,30% Erosion 0,19% Forest and Woodland 3,15% Forest Plantations and Woodlots 0,03% Golf Course 0,00% Grassland 16,40% Mines & Quarries 0,45% Smallholdings 0,01% Urban Landfills 0,00% Urban Rural Cluster (low density) 1,72% Urban/built up area: Commercial 0,03% Urban/built up area: Industrial/Transport 0,06% Urban/built up area: Other 0,00% Urban/built up area: Residential 1,36% Water bodies 0,17% Source: Limpopo Province, Land Cover Data set, ESKOM 2013, GeoTerraImage (GTI) Pty Ltd, Pretoria, South Africa The municipality has 3 additional semi-urban settlements (GaPila, GaPuka and GaSekhoalela) both Proclaimed as a result of relocation due to mining expansion in the Mapela Area. The total extent of Mogalakwena LM is 616 630 hectares.

3. Section 2: Demographics YearRSA PopulationMogalakwena LM% 199640 583 573280 6820,69% 200144 819 778 298 282 0,67% 201151 770 560 307 683 0,59% Mogalakwena LM has a population of 307 683 people (StatsSA, 2011). Although the population density has increased since 2001, it is still well below the metro average. Mogalakwena has a LOW POPULATION DENSITY OF 0,50 people per hectare, largely due to 96,65% of the municipality not being developed. population 1996 to 2001 2001 to 2011 1,25% 0,32% Growth By 2020, the population of Mogalakwena Local Municipality is expected to be 324 620. income From 2001 - 2011, the % people earning less than R3500/month reduced with: 0,35% per annum. From 2001 - 2011, the % people earning between R 3500 to R12801/month grew at: 10,96% per annum. Households in Mogalakwena LM are poor with almost 14,88% earning no income at all and a total of 92,80% of the municipality earn less than R12 800/month. There has been significant growth in the income bracket earning between R3 500 and R12 800/month – a clear signal for rental or gap market housing options. Source: Statistics South Africa, 2011 Page3 Municipal Profile Monthly income category Source: Statistics South Africa, 2011 Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 MOGALAKWENA LOCAL MUNICIPALITY Number of households

4. About 94,51% of the population in Mogalakwena is within 30 minutes walking distance to a school. That translates into an average distance of 2.5km. 3,54% of all people in the municipal area are between 30 minutes and 60 minutes from schools and only 1,72% more than 60 minutes. level of education Section 2: Demographics gender distribution Source: Statistics South Africa, 2011 The female gender constitutes approximately 53,27% of the total population. This trend is fairly unlikely in mining towns where the mining industry is predominantly male orientated. 4Page Municipal Profile Source: Statistics South Africa, 2011 MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 The percentage of population with no schooling decreased between 2001 and 2011 with 12,01%

5. Section 3: Economics Page5 economic sector & strength The dominant economic sector in Mogalakwena LM is clearly mining, which contributes to more than 32,77% of the GVA of the municipality. Surprisingly, only 8,26% of the population is employed by this sector which is less than one third of the population employed by retail. All other economic sectors contribute less than 15% each of the municipal GVA. In 2011, Mogalakwena LM contributed to 0,39% of the National GVA. Of the 8 metropolitan municipalities in South Africa, eThekwini, Buffalo City and Nelson Mandela Bay exhibit a lower average annual economic growth rate (2008-2011) than Mogalakwena LM. In 2011, the unemployment rate was: 40,2% Municipal Profile Source: Statistics South Africa, 2011 MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014Municipality Economic Growth Rate 2008200920102011Average City of Cape Town4,0%-1,1%3,0% 3,1% Buffalo City LM3,3%-1,3%1,2%2,1%2,0% Nelson Mandela Bay Metro 0,0%-4,6%0,6% -0,2% Mangaung4,8%-0,9%1,8%2,4%2,8% eThekwini2,9%-1,6%2,1%2,4%2,2% Ekurhuleni4,1%-3,5%3,3%3,8%2,7% City of Johannesburg5,7%-1,0%2,9%3,8%3,6% City of Tshwane2,6%3,1%3,0%3,1%3,7% Mogalakwena LM2,4%-1,6%4,1%1,9% 2,28%

6. Section 4: Financial Status of the municipality annual collection rate 102,11% of all billed revenue has been collected, the benchmark is 95% The payment level of 102,11% resulted in a gain of R 6 million in cash flow which will be utilised in service delivery or in capital investment. Future sustainability and growth is dependent on a collection rate of approximately 95% and a focused revenue collection strategy should be implemented. own revenue to total operating revenue Although 45,15% of the Municipality’s revenue is internally generated in 2013, this has decreased from 52,33% during 2012, which indicates an increasing dependency on government grants to sustain operations. asset turnover Service revenue to assets employed (asset turnover) measures whether there is sufficient investment in economic assets. The benchmark is 20% Page6 Municipal Profile MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 27,28% 22,65% The historic infrastructure base is sufficient to support the current service delivery demands. The downward trend however indicates the need to invest in economic assets to ensure future generation of revenue.

7. Section 4: Financial status of the municipality budget implementation Indicates to what extent the Municipality is able to deliver on its planned budget. The target is 100%. 31,90% actual expenditure on capital budget 100,08% actual expenditure on operational budget 142,26% actual revenue realised The consistent realisation of revenue below the budgeted revenue over the past three years is indicative of unrealistic revenue projections. Page7 Section 5: Property market Municipal Profile MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 Source: Mogalakwena Valuation Roll 2013/2017

8. Section 6: Housing demand and supply dwelling type & housing backlog The municipal housing backlog decreased from 6 479 in 1996 to almost 4 152 in 2011. housing delivery Page8 Municipal Profile Source: Statistics South Africa, 2011 MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 Location Number Of Units LocationNumber Of Units Thabaleshoba, Makapane28Bokwidi40 Rooiwal and Malokong20Lusaka40 Hans, Chokoe, Leleka, Seema, Danisane & Mashahleng 28Kabeane40 Vergenoeg30Marulaneng40 Kgotsoro20Pudiyakgopa30 Thabaleshoba12 Goodhope & Taolome 45 Dipere/Nong40Tshamahanzi30 Mosesetjane(Kgobudi)20 Setupulane & Sodoma 30 Masodi & Maroteng30Matebeleng45 Ham No. 160Tshamahanzi30 Hlogo Ya Nku & Scierrapies40Kgopeng60 Annual housing delivery target (2012-2016): (IDP 2012/2016) Average annual delivery: (StatsSA Building plans approved 2007-2010) Current total number of units planned: (IDP 2012-2016) 152 2 758 R 2 039 (mill) Current own fund committed towards housing development: (IDP 2012/2016) The building plan statistics indicates that only 1 RDP house was built in 2012.

9. Source: Mogalakwena Valuation Roll 2013/2017 Municipal Profile Page9 Section 7: Land Rent Analysis MOGALAKWENA LOCAL MUNICIPALITY The land rent theory is a geographical economic theory that refers to how the price and demand for real estate change as the distance from the central business district (CBD) increases. It states that different land users will compete with one another for land close to the city centre. land rent Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014

10. Section 8: Water, sanitation & electricity water Page10 Municipal Profile Source: Statistics South Africa, 2011 MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 sanitation electricity

11. Municipal Profile Page11 Section 9: Cost surface analysis MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 cost surface analysis To develop land everywhere in the municipality does not necessarily cost the same. Often vacant land is developed at a cost significantly higher than elsewhere in the municipality. This cost surface map for the municipality will indicate the premium payable based on certain environmental and geological constraints.

12. Municipal Profile Page12 Section 10: Spatial development framework MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 spatial development framework Source: Waterberg District Municipality, Spatial Development Framework 2009

13. Municipal Profile Page13 Section 10: Spatial development framework MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 accessibility analysis -CBD This map tests housing projects identified in the SDF in terms of how accessible these projects are to the CBD of the Municipality (essentially a test to see if proposals attempt a “compact city” design).From the map it is clear that the majority of projects would take longer than 25 minutes to access the CBD of Potgietersrus.

14. This map tests housing projects identified in the SDF in terms of how accessible these projects are to employment opportunities. Since mining is the major employer in the municipality, all active mines were used as origins. The map clearly indicates that a number of SDF residential proposals are located on the periphery of the municipality, more than 10 minutes away from employment opportunities. Municipal Profile Page14 Section 10: Spatial development framework MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 accessibility analysis – active mines

15. Municipal Profile Page15 Section 10: Spatial development framework MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 budget implications of the SDF The current housing backlog for Mogalakwena LM is approximately 4 152 units. The annual housing target for Mogalakwena LM must be is approximately 152 units per year in order to complete the planned projects for 2016.

16. Municipal Profile Page16 Section 11: Planning practises assessment MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 summary scope of planning practises The purpose of this practises assessment for the municipality was to: audit planning capacity within the municipality, as it relates to; land use management capacity; spatial planning capacity; audit the actual planning systems, tools and methodologies of the municipality; long term development strategy; spatial development frameworks; integrated development plans; land use management systems, land use schemes, zoning schemes or town planning schemes; other policies and frameworks such as densification policies, nodal plans etc.; audit planning governance within the municipality; processes used to compile and implement the plans listed in the previous point; audit any software tools, systems and data used in the compilation of the above planning products or in support of planning governance.

17. Municipal Profile Page17 Section 11: Planning practises assessment MOGALAKWENALOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 planning activities systems This section investigates the legislative requirements of having an IDP, SDF and land use scheme in place. Though not legislated, it also includes a long term strategic plan (e.g. a growth and development strategy). On the whole it the planning scope of practises in the municipality can be seen as “competent”. All the requirements of legislation are met. The various planning tools and products at the disposal of a municipally are supported by various information systems. These systems can be relatively large and complex (e.g. an agent based transport and land use modelling system) or relatively simple (such as an excel spread sheet calculating the number of social facilities to be provided as for different population scenarios). Information systems can thus be defined in this particular context as the means by which skilled municipal officials use software and information to support the process of spatial restructuring.

18. Municipal Profile Page18 Section 11: Planning practises assessment MOGALAKWENA LOCAL MUNICIPALITY Mogalakwena Local Municipality : Municipal Profile. Developed by i@Consulting (Pty) Ltd on behalf of the Housing Development Agency - 2014 organisational tactics human resources The organisational tactics, or rather the extent to which the organisation support the Planning function can at best be described as being in its “awareness” phase. It is largely left up to individuals to up skill themselves or to acquire necessary information required for personal growth. More interaction with planning role-players are required for the planning function to grow the municipality. This includes access to information and networking with planners at other municipalities or other spheres of government. Planning & Human Settlement Function/SectionNo. of PostsNo. of employeesVacancies Section 57 managers posts743 Planning & Development Services543222 Technical Services307180127 Electrical Services916031 Community Services27117299 Source: Mogalakwena Local Municipality Draft 2014/2015 IDP