FREE STATE GROWTH AND DEVELOPMENT STRATEGY

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FREE STATE GROWTH AND DEVELOPMENT STRATEGY

• SMS CONFERENCE
• 30 31 AUGUST 2007
• DEPARTMENT OF THE PREMIER POLICY UNIT

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CHAPTER OUTLINE AND CONTENT
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CHAPTER 1 RATIONALE AND CONTENT

• Outline and structure
• Rationale for a provincial growth and development
  strategy
• Rationale for the review of the FS GDS
• Overview of the economy and geography

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CHAPTER 2 ANALYSIS OF THE SPATIAL, DEMOGRAPHIC,
ENVIRONMENTAL AND ECONOMIC PROFILE OF THE FREE
STATE

• CONTENT
• A spatial overview of the Free State (districts,
  municipalities, settlement types)
• Demographic overview and migration trends
• The environment
• The economy

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CHAPTER 2 KEY FINDINGS

• The Free State is divided into five districts and
  20 local municipalities. The Motheo and Fezile
  Dabi districts contribute 64.9 of GDP in the
  Free State.
• The following three municipalities have 43.2 of
  the population, but they contribute 68 of the
  GDP in the province Mangaung, Metsimaholo, and
  Matjhabeng.
• Large urban areas have 40.5 of the population in
  the Free State and contribute 53.3 of the GDP in
  the province.
• The provincial population growth rate of 0.6
  between 1996 and 2001 is considerably lower than
  the national population growth rate of just below
  2 per annum.
• .

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CHAPTER 2 KEY FINDINGS

• The following main population trends are visible
  in the Free State
• a population decline in the former homeland
  areas
• continued urbanisation from farming areas to
  urban areas
• a decrease in the population of the commercial
  farming areas
• evidence of secondary or circular migration
• more profound urbanisation expected in the
  northern Free State
• out-migration to Gauteng
• a large-scale decline in the Free State
  goldfields
• and most migrants represent low-income
  individuals or households

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CHAPTER 2 KEY FINDINGS

• Only 9 of the soil in the Free State is highly
  suitable for agriculture.
• Approximately 5 of the Free State is rated as
  areas with high sensitivity iro the environment
  (ratings 4-7).
• With the opening up of the South African economy
  to world markets, it also became more vulnerable
  to international volatility in the markets.
• According to the narrow definition of
  unemployment, the Free State has an unemployment
  rate of 30.
• Although between 1996 and 2004, the Free States
  growth rate was 20.7, the 2003 growth was 3.3.,
  3.9 in 2004 and 4.2 in 2005
• The Free State has 1.7 million (55.9) people
  living in poverty.

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CHAPTER 3 AN ANALYIS OF THE SOCIAL, HUMAN AND
GOVERNANCE PROFILE OF THE FREE STATE

• GENERAL APPROACH
• DEVELOPMENTAL / INTERNATIONAL LINK
• POLICY LINK
• TRENDS IN THE FREE STATE
• SPATIAL REFERENCING

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CHAPTER 3 CONTENT

• Education
• Labour and skills development
• Health
• Housing
• Basic infrastructure
• Transport infrastructure
• Sport, recreation and cultural activities
• Social services
• Criminal justices and crime prevention
• Disaster management
• Governance
• ICT

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CHAPTER 3 KEY FINDINGS

• The functional literacy rate in the Free State is
  65.
• Although there has been very good progress in
  respect of the Grade Twelve pass rate, the
  university exemption rate and the number of
  learners passing with mathematics, science, and
  information technology remain low.
• The repositioning of the FET sector could play a
  role in addressing the problem of school
  drop-outs.
• The maternal death rate is estimated at 150 per
  100 000 live births.
• The child mortality rate is estimated at 76.7 per
  1000 live births.
• The HIV and AIDS prevalence rate is estimated at
  16.7.
• The housing need (those households residing in
  informal dwellings) have increased between 1996
  and 2001. Overall, the number of households that
  have grown faster than the population contributed
  to this increase in the housing need
• Nearly 50 of the housing backlog in the Free
  State is found in Mangaung and Matjhabeng.

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CHAPTER 3 KEY FINDINGS

• By 2001, 85.3 of households in the Free State
  had water on the stand or in the house, 54.5 had
  acceptable sanitation, 74.9 had access to
  electricity, 58 had their refuse removed once
  per week, and 35 had a telephone in their
  dwelling
• The largest service backlogs are in Mangaung,
  Matjhabeng, Maluti-a-Phofung, Setsoto, and
  Metsimaholo.
• The Provinces road network comprises about 1
  615km of national roads, 6 316km of surfaced
  roads, 21 486km of gravel secondary roads, and
  22 000km of gravel tertiary roads. A high
  percentage of roads, 60, are in a poor or very
  poor condition.
• Considering poverty, 57.1 of households (432579
  households) are earning less than R800 per month
  and thus reside in poverty.
• Approximately 158 000 criminal cases are reported
  in the Free State annually (2004).
• The five main possible disasters in the Free
  State are droughts, floods, veld fires,
  accidents, and chemical spillage (both on the
  road and in respect of industry in Metsimaholo).
• Currently, 12 municipalities are under project
  consolidate.
• One municipality and six provincial government
  departments have received unqualified auditing
  reports in 2004/05.
• The ICT sector in government and private sector
  will play an increasing role in future.

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CHAPTER 4 AN ASSESSMENT OF GROWTH POTENTIAL,
CAPACITY AND CONSTRAINTS

• APPLICATION OF THE NSDP AT PROVINCIAL LEVEL
• SIX AREAS OF POTENTIAL
• Innovation and experimentation
• High value differentiated goods
• Mass produced goods
• Public services
• Other services
• Tourism
• NEED VS POTENTIAL

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Innovation and experimentation

• Key indicators
• Graduates physical sciences, maths, engineering
• population with Honours or higher

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High value, differentiated goods

• Key indicators
• GVA fuel, rubber and plastics
• GVA electronics
• Value of exports of electronics
• Employment in concerns manufacturing fuel, rubber
  and plastics
• Employment in electronics concerns
• Value of exports fuel, rubber and plastics

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Mass produced goods

• Key indicators
• GVA Mining
• GVA Agriculture (1996 2004)
• GVA Manufacturing (excluding fuel, rubber,
  plastics electronics)
• Employment in mining
• Employment in agriculture
• Employment in manufacturing (excluding fuel,
  rubber, plastics electronics)

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Public services

• Key indicators
• Municipal debt (over 30 days) as a ratio of
  number of households
• of population as senior officials and managers
  professionals technicians and associated
  professionals
• of people employed in public admin and defence
• University exemption rate for Grade Twelve
  (indication of successful education delivery)
• of people employed in health and social work

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Retail and private services

• Key indicators
• GVA retail and finance
• Employment in retail and finance
• Overall household income in the locality

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TOURISM

• Key indicators
• Number of establishments in entertainments and
  tourism sector
• Number of people employed in hotels and
  restaurants
• GVA contribution of tourism

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DEVELOPMENT POTENTIAL
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DEVELOPMENT NEED

• Key indicators
• Number of disabled people per locality
• The percentage of people without schooling or
  with limited schooling per locality
• The percentage of people who are unemployed
• Number of households residing in informal
  dwellings )
• Number of people without access to adequate
  sanitation (current access in terms of an
  unventilated pit latrine, bucket or none)
• Number of people without access to water within
  200m from their stand
• Number of people with an income below R3 500 per
  month.

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Chapter 4 Key findings

• Development potential is mostly located in the
  three large urban agglomerations in the Free
  State Bloemfontein (Mangaung), Sasolburg
  (Metsimaholo), and Welkom (Matjhabeng). However,
  Welkom (Matjhabeng) has been negatively
  influenced by the declining mining industry. It
  should also be noted that Mangaung and Matjhabeng
  are grouped with Maluti-a-Phofung as areas with
  high need in the Free State.
• The NSDP suggests that, to achieve impact in
  terms of economic growth, areas with development
  potential should be targeted.
• As is the case nationally, development needs are
  mostly (except in the case of Maluti-a-Phofung)
  located in the areas with high development
  potential.
• It should also be borne in mind that areas with
  limited development potential should be
  prioritised in terms of investment in their
  people (skills development, education, social
  services, social security, etc)
• Finally, it should be borne in mind that the NSDP
  suggests that any area, which is categorised as
  having no potential or only limited potential,
  should be able to showcase its potential..

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CHAPTER 5 DETERMINING PRIORITIES AND IMPLICATIONS
1) Economic development 2) Human and social
development 3) Crime and justice 4) Good
governance
Key priority areas of the FS
Alignment issues
Vision 2014
BARRIERS
DEVELOP MENT TRAJEC- TORY
TRADE- OFFS
MDGs
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PRIORITIES AND IMPLICATIONS ECONOMIC GROWTH

• Sectoral trade-offs
• Manufacturing
• Agriculture
• Transport
• Tourism
• Sectors to nurse Mining and construction
• Enablers
• SMME development
• Economic infrastructure
• Human resource development (because of the
  identified barrier)
• Creating environment (in addition to the above
  enablers)
• Addressing unemployment and poverty
• Economic growth
• Social safety nets

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PRIORITIES AND IMPLICATIONS SOCIAL DEVELOPMENT

• Literacy and education
• Adequate health
• Shelter and services
• Free basic services

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PRIORITIES AND IMPLICATIONS CRIME AND JUSTICE

• In this regard violent crimes and
  business-related crime should be prioritised in
  terms of police action.
• To a greater extent, domestic crime should be
  handled through CPFs and awareness campaigns.
• The spatial distribution of crime in the Free
  State, as well as the spatial distribution
  economic potential, should be taken into account.
  
• The eastern border with Lesotho is a crucial
  spatial priority area in respect of stock theft.
• Although reacting to crimes and providing a
  service to people who are victims of crimes is
  essential, consideration should also be given to
  crime prevention.
• Success in solving crimes is also closely related
  to the link with the criminal justice system.
  Emphasis should therefore be placed on reducing
  the waiting lists in respect of court cases.
• Youth offenders should also receive special
  attention in respect of the justice system.

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PRIORITIES AND IMPLICATIONS Good governance

• Key issues
• Financial management
• Key barriers
• Alignment of IDPs with budgets as well as the
  FSGDS.
• The quality of IDPs remains weak.
• Asset and financial management remain serious
  obstacles.
• Effective communication with stakeholders and
  clients remains a problem.
• Ensuring effective human resource management is
  problematic.
• Effective financial management and problems of
  corruption and ethical behaviour need to be
  addressed
• Ensuring effective monitoring and evaluation.

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CHAPTER 6 SETTING STRATEGIC DIRECTION

• Chapters 2-4 Analysis
• Chapter 5 Determining priorities
• Chapter 6 Looking forward doing the planning

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Vision and mission

• Vision A unified prosperous Free State which
  fulfils the needs of all its people
• Mission Serving the people of the Province by
  working effectively with our social partners
  through (i) Economic growth, development and
  employment (ii) Social and human development
  (iii) Justice and crime prevention (iv) Efficient
  governance and administration

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Basic principles

• Apply the principles of sustainable development
• Acknowledge the ecological limitation of the
  environment
• Ensure alignment between all spheres of
  government.
• Ensure integrated development planning and
  implementation.
• Actively address economic and social
  inequalities.
• Promote economic infrastructure investment and
  development spending in areas of potential and
  need according to the principles of the NSDP.
• Acknowledge the importance of BEE as well as the
  need to broaden the access to the economy.
• Promote labour intensive approaches to development

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ECONOMIC DEVELOPMENT, EMPLOYMENT AND INVESTEMENT

• Objectives
• To achieve an economic growth rate of 6-7 per
  annum
• To reduce unemployment from 30 to 15
• To reduce the number of households living in
  poverty by 5 per annum
• To provide adequate infrastructure for economic
  growth and development
• How do we achieve the above? Our 4 drivers
  (manufacturing, agric, transport, tourism) and 4
  enabling strategies (SMMEs, infrastructure,
  enabling environment, human skills development)

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SOCIAL AND HUMAN DEVELOPMENT

• Objectives
• To improve the functional literacy rate from
  65.3 to 85
• To reduce mortality of children under five years
  to less than 65 per 1000 births
• To reduce the maternal mortality rate from 150 to
  100 per 100 000 live births of women in the
  reproductive group
• To stabilise the prevalence rate of HIV and AIDS
  and reverse the incidence thereof
• To provide shelter for all in the Province
• To provide free basic services to all households
• To reduce the number of households living in
  poverty by 5 per annum
• How will we achieve the above? Basic services
  and housing Improving health care and combating
  disease improving educational services basic
  safety net improved cultural, sports and
  recreational services

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JUSTICE, CRIME PREVENTION AND SECURITY

• Objectives
• reduce the crime rate by at least 7 per annum.
• To reduce the number of road accident deaths by
  3 per annum.
• How will we do this?
• To facilitate and improve an effective integrated
  criminal justice system
• To ensure an effective and efficient police
  service in the Province
• To establish an effective disaster prevention and
  response capacity for disasters throughout the
  Province
• To improve traffic policing and road incident
  management in the Province
• To implement a Provincial EMS Plan
• To ensure a safe and secure environment at all
  institutions.

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GOVERNANCE AND ADMINISTRATION

• Objectives
• To eliminate qualified auditing reports for
  provincial departments by 2009 and for
  municipalities by 2011
• To eliminate the 12 municipalities which receive
  extraordinary provincial and national support
  (currently called Project Consolidate) by 2010.
• How will we do this?
• Improve IDPs and IDP implementation.
• Ensure effective communication with stakeholders
  and clients.
• Promote BEE.
• Ensure effective Human Resource Development and
  Management.
• Ensure improvement in financial management.
• Promote integrity in government.
• Establish proper management information and
  record management systems.
• Improve asset management.
• Build governments capacity in critical areas.
• Ensure a healthy environment through integrated
  environmental management.
• Monitor, evaluate and review the FSGDS.

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CHAPTER 7 IMPLEMENTATION FRAMEWORK
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CHAPTER 8IMPLEMENTATION ARRANGEMENTS

• Institutional arrangements
• Implementation, resource allocation and budgeting
• Provincial departments
• National Departments
• Municipalities
• Social Partners
• E-monitoring and evaluation

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THANK YOU
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