PRESENTATION TO THE PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT

1
PRESENTATION TO THE PORTFOLIO COMMITTEE ON
PROVINCIAL AND LOCAL GOVERNMENT BRIEFING ON THE
NODES 12 June 2007
2
PRESENTATION OUTLINE

• NATIONAL AND PROVINCIAL SECTOR SUPPORT
• (slides 3-5)
• 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
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
NATIONAL AND PROVINCIAL SECTOR SUPPORT
PROVINCE COMMENTS
Limpopo Office 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
Mpumalanga Provincial/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 Cape New provincial coordinator No coordinating structure- meeting with HODS To explore structures pending Political champ visits monthly- technical and political meeting

• .

5
NATIONAL AND PROVINCIAL SECTOR SUPPORT
PROVINCE COMMENTS
Western Cape Good technical and political support from province. Political champion visits regularly in rural nodes. Urban nodes no visits Office of the premier participates in ME Structures
Eastern Cape Coordinating 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 ME 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 state Coordinating 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 Natal Programme 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
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

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RESEARCH DONE IN THE NODESPRELIMINARY 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 2005.
• 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

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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.

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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.

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RESEARCH DONE IN THE NODESPRELIMINARY 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.

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RESEARCH DONE IN THE NODES PRELIMINARY IMPACT
ASSESSMENTS

• SUMMARY OF KEY FINDING
• 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.

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RESEARCH DONE IN THE NODES PRELIMINARY IMPACT
ASSESSMENTS

• SUMMARY OF KEY FINDING
• 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.

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RESEARCH DONE IN THE NODES. PRELIMINARY IMPACT
ASSESSMENTS DETAILS PER NODE MALUTI-A-PHOFUNG
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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 46000 new water
  connections, 50200 sanitation connections and
  30400 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.
• Housing7688 houses have been delivered to date,
  with 4400 new subsidies approved. The housing
  backlog is still significant of the 35 860
  backlog, 25 000 is in the deep rural areas.

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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.

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RESEARCH DONE IN THE NODES. PRELIMINARY IMPACT
ASSESSMENTS DETAILS PER NODEALFRED NZO
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PRELIMINARY IMPACT ASSESSMENTS ALFRED NZO

• Key findings for service delivery achievement
  Alfred Nzo
• Water, sanitation and electricity 72000 (57) of
  hhs has benefited from provision of water, with
  the backlog standing at 54000 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 10 000
  VIP toilets per annum but to eradicate the
  backlogs this programme will have to be
  accelerated to 30 000 units per annum.
• Electricity10710 connections made between 2003
  and 2005. 69 benefit from FBW FBE has improved
  from 5 to 33
• Housing 4521 units at the cost of R82.9billion
  were planned for 2006. 76 of housing project had
  been completed benefiting 4332 hh Additional
  1006 disaster relief houses were built 2001-6.

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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.

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RESEARCH DONE IN THE NODES. PRELIMINARY IMPACT
ASSESSMENTS DETAILS PER NODEALEXANDRA
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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
  17000 new pre-paid connections installed since
  2001. 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 11 000 units. 3000 units were
  built for relocated families. 5434 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.

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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, 17 000 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.

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RESEARCH DONE IN THE NODES. PRELIMINARY IMPACT
ASSESSMENTS DETAILS PER NODEMOTHERWELL
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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 29 108 hhs have access to
  electricity as of 2005 (out of 32000 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.

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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.

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RESEARCH DONE IN THE NODES.
ECONOMIC PROFILING OF THE 21 RURAL AND URBAN
NODES
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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)

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NODAL ECONOMIC PROFILESCONTENT OF EACH NODAL
ECONOMIC PROFILE
Introduction
Key Data Points
Current Action
Introduces the node summarizes key issues
Lists pertinent acts and figures
Describes current interventions
Snapshot
Governance
Geography, Vegetation, Climate, Soil
Area Summary
IDP Assessment
Spatial Development
Key Challenges
Demography
Development Projects
Income and Employment
Local People Portrait
Education
Health
Development Scorecard
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Rural Nodes What needs to be done? Solutions to
Constraints / Investment Opportunities (1/5)

• 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

Umkhanyakude

• 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

Ugu

• 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

UKhahlamba
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Rural Nodes What needs to be done? Solutions to
Constraints / Investment Opportunities (2/5)

• 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

Alfred NZo

• 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

OR Tambo

• 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

Umzinyathi
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Rural Nodes What needs to be done? Solutions to
Constraints / Investment Opportunities (3/5)

• 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

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

Maluti

• 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

Sekhukune
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Rural Nodes What needs to be done? Solutions to
Constraints / Investment Opportunities (4/5)

• 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

Chris Hani

• 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

Busbuckridge

• 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

Central Karoo
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Rural Nodes What needs to be done? Solutions to
Constraints / Investment Opportunities (5/5)

• 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

Kgalagadi

• 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

Maruleng
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Urban Nodes What needs to be done? Solutions to
Constraints / Investment Opportunities (1/3)

• 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

INK

• 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.

Ghaleshewe

• 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

Motherwell
34
Urban Nodes What needs to be done? Solutions to
Constraints / Investment Opportunities (2/3)

• 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

Alexandra

• 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

Kayelitsha

• 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

Mitchells Plain
35
Urban Nodes What needs to be done? Solutions to
Constraints / Investment Opportunities (3/3)

• 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

Mdantsane
36
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
Economic profiling project actions for sector
departments

• Rural Nodes
• Urban Nodes

38
Rural NodesDepartment 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
Summary of Actions for Dept of Agriculture

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

Source Node Profiles
39
Rural NodesDepartment 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
Summary of Actions for DEAT

1. Assist local municipalities with the development
   and implementation of tourism strategies which
   are integrated into South Africas global tourism
   plan.

Source Node Profiles
40
Rural NodesDepartment of Land Affairs
Summary of Actions for Dept of Land Affairs

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

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
Ukhahlamba Speedily expedite outstanding land claims
Umkhanyakude Work with the Land Claims Commission to resolve existing claims
Umzinyathi Make land claim/tenure process more transparent
Zululand Speedily expedite land claims near around Pongolaport Dam
Source Node Profiles
41
Rural Nodes Department of Provincial and Local
Government
Summary of Actions for dplg
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

• 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
• Create and support private/public sector
  equitable partnerships that attract private
  sector investment

Source Node Profiles
42
Rural Nodes Department of Trade and Industry
Summary of Actions for Dept of Trade and Industry

1. Support a public/private sector model to
   incentivise private sector investment
2. Create greater visibility on investment
   opportunities for the private sector

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
Source Node Profiles
43
Rural Nodes Other Government Departments
Department Node ACTIONS SUMMARY
Department of Water and Forestry Affairs Zululand Provide water to emerging farmers, especially in the vicinity to Injaka Dam Work with local municipalities and supply water from major sources to increase the delivery of drinking water
Department of Water and Forestry Affairs OR Tambo Work with municipality to improve delivery of drinking water Support private/public sector model to incentivise investment in the forestry sector Work with local municipalities and supply water from major sources to increase the delivery of drinking water
Department of Water and Forestry Affairs Bushbuckridge Support investment into Pongolaport Dam area and surrounds Work with local municipalities and supply water from major sources to increase the delivery of drinking water
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
Department of Transport Central Karoo Upgrade the rail link between Gauteng and Cape Town Prioritise development of transport networks in potential zones of economic development
Department of Transport OR Tambo Work with SARA to improve the basic road infrastructure Prioritise development of transport networks in potential zones of economic development
Department of Transport 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 Prioritise development of transport networks in potential zones of economic development
Department of Public Works ALL Assist local municipality in the delivery of service backlogs Accelerate delivery of bulk infrastructure with priority given to potential commercial zones
Department of Education Bushbuckridge Re-activate Mapulaneng and complete revival of Hoxani training college Utilise teacher training colleges that were shut down
Department of Correctional Services Central Karoo Build a correctional facility outside Beaufort West Invest in the node while attempting to address prison overcrowding
Source Node Profiles
44
Urban Nodes Government Departments
Department Node ACTIONS SUMMARY
Department of Housing Alexandra Enforce of property rights and manage tenure issues Address housing backlogs
Department of Housing Galeshewe Deliver public housing backlog Address housing backlogs
Department of Housing Khayelitsha Prioritise erection of decent Housing Address housing backlogs
Department of Housing Mdantsane Deliver public housing backlog Increase densities in lower density areas Address housing backlogs
Department of Housing Motherwell Increase residential densities to address backlogs Enforce of property rights and manage tenure issues Address housing backlogs
Department of Housing Alexandra Encourage the formalisation of businesses Address housing backlogs
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
Department of Trade and Industry 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 Support local SMMEs and reduce constraints to business growth
Department of Trade and Industry Khayalitsha Encourage the formalisation of businesses Support local SMMEs and reduce constraints to business growth
Department of Trade and Industry Mitchells Plain Encourage the formalisation of businesses Support local SMMEs and reduce constraints to business growth
Department of Trade and Industry Motherwell Leverage Coega to support the business climate Support local SMMEs and reduce constraints to business growth
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
Department of Transport Khayalitsha Increase the efficiency of public transport Develop the transport node around Kuyasa and model it on Mitchells Plain Station Increase the capacity for traffic through the nodes and increase efficiency of public transport
Department of Transport Mdantsane Cordinate SARA to initiate developments around Mt Ruth Station Increase the capacity for traffic through the nodes and increase efficiency of public transport
Department of Transport Mitchells Plain Increase efficiency of public transport Increase the capacity for traffic through the nodes and increase efficiency of public transport
Department of Labour Mdantsane Make use of, sell or re-establish Border Training Centre Re-assess role of Training Colleges
Source Node Profiles
45
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
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
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
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
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
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
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
ISSUES FOR INTERVENTION
ISSUE RESPONSIBILITY
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
ISSUES FOR INTERVENTION
ISSUE RESPONSIBILITY
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
URD BRANCH BUDGET
URBAN AND RURAL DEVELOPMENT  2006/07 Adjusted Appropriation 2007/08 2008/09 2009/10
URBAN AND RURAL DEVELOPMENT  2006/07 Adjusted Appropriation Medium-term estimates Medium-term estimates Medium-term estimates
URBAN AND RURAL DEVELOPMENT  2006/07 Adjusted Appropriation MTEF Baseline MTEF Baseline 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 - ME 1,926 2,284 2,398 2,511
TOTAL OF SUBPROGRAMMES 8,460 (10,729) 11,2