BRIEFING TO PORTFOLIO COMMITTEE ON PUBLIC ENTERPRISES: BY PUBLIC ENTERPRISES INTERNATIONAL RELATIONS AND RURAL DEVELOPMENT UNIT

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• BRIEFING TO PORTFOLIO COMMITTEE ON PUBLIC
  ENTERPRISES BY PUBLIC ENTERPRISES INTERNATIONAL
  RELATIONS AND RURAL DEVELOPMENT UNIT

Venue Cape Town Date 05 June 2002
Speaker Ms T N Msibi
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RURAL DEVELOPMENT STRATEGY

• The Unit charged with SOES role in rural
  development within the Department of Public
  Enterprises is the International Relations and
  Rural Development Unit.
• For purposes of this presentation we will focus
  only on Rural Development initiatives.
• The Unit was established in 2001.

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DPE ORGANOGRAM
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RURAL DEVELOPMENT

• The departments rational behind the inclusion of
  SOEs in Rural Development is based on the
  following
• SOEs financial resources
• The inherent capacity that resides in the SOEs
  and
• The developmental potential of SOEs.
• DPEs central mandate is primarily on the
  restructuring of SOEs, there are other
  activities and functions undertaken by the
  Department which are aimed at the realisation of
  governments social and economic objectives.
• This functions of this Unit focus on the latter
  objectives.

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RURAL DEVELOPMENT

• This presentation will look at rural development
  projects within the SOEs in three parts
•  
• Firstly their day to day functions
• Secondly the coordination of SOEs for delivery on
  the Integrated Rural Development Strategy and
• Thirdly their Social Responsibility initiatives
  which have an impact on rural development
•  

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RURAL DEVELOPMENT

• PART 1
•  
• There are initiatives that have been undertaken
  by the SOEs as part of their day to day
  responsibilities and functions.

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ESKOM

• There are initiatives that have been undertaken
  by the SOEs as part of their day to day
  responsibilities and functions.

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ESKOM

• The challenge has been identified as the
  electrification of rural areas in a sustainable
  manner
• Firstly looking at backlog
• In 1994 approximately 10.8 million households.
• In 1994 approximately 35 of households
  electrified.
• Between 1994 and end of-2001 3.65 million
  households had been electrified.

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ESKOM

• At this point, it was realized that the programme
  could not be sustained through funding by Eskom.
• Agreement within government that universal access
  to electricity is the responsibility of
  government.
• Eskom has an important role to play the
  realisation of this objective.

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ESKOM

• Goal electrification by 2010.
• Agreed that from 2001 national government would
  fund the programme through DME (Department of
  Minerals Energy)
• Funding held by in the National Electricity Fund
• Disbursed by the National Electricity Regulator

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ESKOM

• TARGETS IN 2001/2
• Targets were 190,000 households.
• Eskom achieved 206,000 households and 190 at
  schools
• (70 rural electrification).
• The electrification of rural areas has had a
  major impact on the quality of line of rural
  people, especially women and children.
• For rural women, provision of electricity has
  resulted in the reduction of time spent
  collecting fire wood, which time is today
  directed at other productive activities.
• For school children, there is light for study and
  recreation which opens other opportunities in
  life.

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ESKOM

• Funding both from National government and Eskom
  (transitional stage)

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ESKOM

• CURRENT TARGETS
• The current target is 200,000 households, 1142
  schools and 10 clinics
• (70 of electrification at rural areas)

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ESKOM

• MUNICIPALITIES
•  
• 95,000 households and 10 clinics.
• (20 at rural electrification)
• BUDGET
• 950 MILLION per year for the next three years
  (2002-2005)
•  
• 37 of electrification allocations and targets
  are for the 13 nodal zones

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TRANSNET

• Ports
• COEGA project in the Eastern Cape that is aimed
  at unleashing the industrial and related capacity
  ( employment, development through increased
  economic activity) of the Eastern Cape

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TRANSNET

• RAIL
• The Department has agreed with labour that
  restructuring of rural rail network will not only
  look at the core business of Spoornet but lines
  will be considered on a line to line basis to
  ensure that issues of employment and development
  are also considered and form part of the decision
  that is reached on the future of these lines.
• In some instances, these lines are key to rural
  development such as access to markets and other
  economic activities by emerging farmers, rural
  women as well as facilitating social development.

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TRANSNET

• (Example) The rail line to Port Alfred
  (Grahamstown-Port Alfred)was closed. Spoornet
  then granted a lease to a community cultural
  organization, Ndlambe Academy of music, arts and
  culture, whereby the group runs the line and
  brings in tourists from Grahamstown into Port
  Alfred, a 69 kilometre rail line.

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TRANSNET

• The Department is currently busy investigating
  alternative operating modes for the rural rail
  network to ensure that every possible method of
  retaining and increasing current traffic flow in
  the rural areas is brought to bear in the
  considerations of the rail restructuring in the
  rural areas. (Umtata rail line is an example)

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PART 2 IRDS

• OBJECTIVE
• To ensure that SOEs are involved in the
  integrated rural development strategy in a
  coordinated manner.
• To ensure that projects in the Free State Rural
  Node are undertaken and completed timeously.
• DISCUSSION
• The formation of the Coalition began in December
  2001 and its terms of reference was finalised in
  April 2002.
• The Coalition has agreed to work with the
  Maluti-A- Phofung Municipality in the Thabo
  Mofutsanyana District in the Free State.
• Maluti-A-Phofung is therefore considered a pilot
  project and the same programme will be rolled out
  to other municipalities at a later stage.

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NODAL POINTS MAP
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Coalition Structure
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Municipality Structure
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SOEs

• NATIONAL COALITION OF MUNICIPAL SERVICE DELIVERY
• CONSISTS OF AMONGST OTHERS THE FOLLOWING SOEs
• Eskom Enterprises (DPE)
• Eskom College (DPE)
• DBSA Development Bank of Southern Africa (DTI)
• Arivia.kom (DPE)
• SABS South African Bureau of Standards (DTI)
• INCA Private bank focused on municipal
  infrastructure
• CSIR - Council for Scientific and Industrial
  Research (DTI)
• LAND BANK (DoA)
• ARC Agricultural Research Council (DoA)
• MIIU Municipal Infrastructure Investment Unit
  (DPLG)
• SALGA South African Local Government
  Association)
• SANCO South African National Civic
  Organisation)
• NDA National Development Agency (DPLG)
• LGTP Local Government Transformation Program
  (DPLG) and
• IDC Industrial Development Corporation (DTI)

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ARIVIA.KOM

• Facilitating information technology training
• Vocational and career guidance
• Community and NGO support
• Donating state-of-the-art information technology
  to schools
• Sponsoring Sport development
• Sponsoring Health Care

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PART 3 TRANSNET FOUNDATION

• CORPORATE SOCIAL INVESTMENT
• BUDGET ALLOCATION FOR THE YEAR 2001 R14,250
  MILLION
• INFRASTRUCTURE R10 million
• Construction of five schools
• Rethusitswe Primary School in the Northern West
  Province,
• Rantobeng Secondary School in the Northern
  Province,
• Daliwonga in the Eastern Cape,
• Benjamin in Mpumalanga
• Billiton and Libode Community College in the
  Eastern Cape.

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TRANSNET FOUNDATION

• CAPACITY ENHANCEMENT R2,25 million
• Building capacity to teach maths, science and
  technology
• Funding of Maths and Science training workshop in
  QwaQwa for 120 teachers, potentially impacting on
  20 000 learners.
• Provision of 21 computers and two printers at
  five school computer laboratories.

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TRANSNET FOUNDATION

• HIGHER EDUCATION R1 million
• Helping Tertiary Institutions implementing
  outreach programmes
• Completion of the University of Zululand library
  in Kwa-Zulu Natal.
• Funding of the University of the Free State in
  the Free State Province to retain teachers in the
  IT programme.

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TRANSNET FOUNDATION

• EARLY CHILDHOOD EDUCATION R250 000.00
• Providing toys to 38 crèches and schools.
• SKILLS DEVELOPMENT R750 000.00
• Training of teachers in the Free State in Science
  and Maths programmes.

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TRANSNET FOUNDATION

• HIGHLIGTED ACHIEVEMENTS
• Health Phelophepa Train
• Primary Health Care
• Dental Care
• Medicine and
• Eye care.

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ESKOM FOUNDATION

• ECONOMIC DEVELOPMENT PROGRAMMES
• To create opportunity for historical
  disadvantaged SMMEs.
• SOCIAL DEVELOPMENT PROGRAMMES
• Job creation
• Skills development
• Economic Empowerment of the disabled

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Public Enterprises Community Development
Coordinating Committee

• This committee comprises of different SOEs.
• On the 13th of May 2002 they officially opened
  the disabled unit of the University of the North.
• The project has been running for five years,
  allocated budget for the projects was R6 million.
  The unit has the following features
• Production room
• Braille facility
• Library
• Four offices for staff members

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Public Enterprises Community Development
Coordinating Committee

• The next project for the committee will focus at
  the Free State Province as the Minister is the
  Nodal Champion.
• CONCLUSION
• This information illustrates that rural
  developments forms an integral part of the
  overall development role of SOEs.
• It is not an add on function to the activities
  undertaken by SOEs and the DPE.
• Our task as a Department is to harness the
  massive financial, labour, technological and
  capital resources to contribute towards the goals
  of rural development, especially infrastructure
  delivery.