DISTRICT SOCIO- ECONOMIC PROFILE

Transcription

1 DISTRICT SOCIO- ECONOMIC PROFILE GROWTH & DEVELOPMENT SUMMIT 2007

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3 CONTENTS INTRODUCTION 4 Aims of the Summit 4 Aims of this document 5 Methodology 5 DISTRICT SNAPSHOT 6 SOCIO-ECONOMIC INFRASTRUCTURE 10 Delivery of Basic Services 10 WATER 10 SANITATION 11 WATER AND SANITATION BACKLOGS 13 ELECTRICITY 14 HOUSING 15 Build and maintain infrastructure 16 PROVINCIAL DEPARTMENT INFRASTRUCTURE EXPENDITURE PLANS 16 PROVINCIAL GOVERNMENT INFRASTRUCTURE EXPENDITURE: CONCLUSIONS 19 MUNICIPAL INFRASTRUCTURE GRANT (MIG) 19 STRATEGIC INFRASTRUCTURE PROJECTS 20 SECTOR DEVELOPMENT 22 Job Creation and Livelihoods 22 AGRICULTURE 22 TIMBER 23 MANUFACTURING 24 CONSTRUCTION 24 TRADE AND BUSINESS SERVICES/ICT 24 TOURISM 25 MINING 27 HR & SKILLS DEVELOPMENT 28 Skills Upgrade 28 INSTITUTIONAL DEVELOPMENT 30 Improve Public Services 30 Health 32 Health services delivery 33 Education 34 HIV & AIDS 35 Developing Municipal Capacity and Co-operation 37 ALIGNMENT AND COOPERATION 37 GAPS IN THE IDP 37 SUPPORT BY DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT (DPLG) AND GTZ 37 SUPPORT TO LOCAL MUNICIPALITIES 38 MUNICIPAL COOPERATION 38 REGIONAL LINKAGES 40 Agreement with the Cape Winelands DM 40 Agreement with the NMBMM 40 POVERTY PROFILE 42 Human Development Index (HDI) 42 Persons Living in Poverty 42 Social grant dependency 43 CONCLUSIONS 44 ACRONYMS 46

4 INTRODUCTION AIMS OF THE SUMMIT Building on the results of the National Growth and Development Summit in June 2003, government proposed that all District and Metropolitan Municipalities hold Growth and Development Summits (GDS) in their area of jurisdiction. The summits should provide opportunities for building partnerships with social partners by bringing together representatives from the broadest sections of society: labour, business, community sector and government (local, province and national). Government has identified district and metropolitan areas as the pivotal sites on which to build an understanding of the nature and distribution of regional economic potential across the country. Collaborative action between government and social partners across all the three spheres is vital in forging a common vision for promoting rising levels of growth, investment, job creation, and people-centred development The aim of the GDS is to reach broad agreement on: a development path and programme for the district; what each social partner (government, business, labour and community sector) should contribute to the implementation of the programme; Strengthening the strategic thrust of the district IDP to ensure planning and implementation alignment between the spheres of government, as well as public entities. In this regard the GDS should seek to address the following specific questions and issues: 1. The Cacadu district s economic potential and which sectors of the economy should be promoted (this would need, where applicable, to be informed by the IDP, LED and the RIDS) 2. Commitments by government, business, labour and community sector to ensure investment in each of the sectors 3. Actions required by government and each partner to deal with constraints to such investments, including dealing with bureaucratic delays, EIA processes and land use management 4

5 AIMS OF THIS DOCUMENT 4. Social and economic infrastructure programmes required to improve investments and provide basic services to communities 5. Contribution by each partner to the construction of such infrastructure, including the possibility of PPP 6. Second Economy interventions (EPWP including roads & ECD, co-operatives, micro-credit, procurement, land reform, etc) and the role of each sector in such interventions 7. Promoting local procurement what interventions are required 8. Improving capacity of local government and contribution of each social partner: including role of public sector unions in ensuring efficiency, role of all in fighting corruption, contribution by private sector and professionals to skills required by the district/metro 9. Establishing partnerships and/or regional growth coalitions which will act as a mechanism for cooperative action at all levels and a robust framework for monitoring and evaluating progress 1. To ensure that discussion on the above issues takes place on an informed basis 2. To present a coherent picture of the social, demographic, and economic profile and service levels of the area 3. To present a picture of the challenges facing local government especially in relation to capacity 4. To suggest the mechanisms & processes for monitoring progress on the decisions reached and the governance framework for ongoing dialogue and feedback among social partners. The district GDS presents a unique opportunity for constructing partnerships and harnessing the collective energies and contributions of a range of actors and role players with a view to enhancing accelerated and shared growth. The district GDS has the potential to unlock the potential of all localities, and ensure that all sectors of society identify their role and contribute to the common national objective to build a better life for all. METHODOLOGY This profile for Cacadu District is based on a number of documents and information from a range of sources. These broadly include the following: ECSECC data, publications and reports District and local municipal IDPs Cacadu s EGDS (Economic Growth and Development Strategy) Data from the Rapid Assessment of services in the Eastern Cape conducted in 2006) Data from Cacadu s Situational analysis and Development of a Strategy to Address Backlogs in Water and Sanitation Services in the Cacadu Region (2005) Various research reports 5

6 DISTRICT SNAPSHOT The Cacadu District stretches from the Bloukrans River in the west to the Great Fish River in the east, and from the Sneeuberge Mountains in the north to the Indian Ocean in the south. Geographically, Cacadu is the largest of the six Eastern Cape Districts, but is home to less than 400,000 people, and so is very sparsely populated (about 6 people per square kilometer). The District forms the hinterland of the Nelson Mandela Bay Metropole, and is a land of large commercial farms, nature reserves and small towns. Although the District has nine local municipal areas (see table below), three (Kouga, Makana and Ndlambe) account for more than half the District population. Cacadu has an export-based economy primarily tied to the agricultural sector. Farm output is transported to the Metro for processing and/or export. The District s agricultural sector accounts for nearly 40% of the Province s agricultural output, and is the largest employer in the District, accounting for about 38% of all jobs. The GDP per capita of the District is higher than the provincial average, and the unemployment rate is lower than the Metro s (35% against the Metro s 40%). There is evidence of above average economic growth in recent years. Although the District s poverty rate is less than the provincial average, it still stands at 48%, and there is outward migration to the Metro and elsewhere. There is evidence that the agricultural sector has been shedding jobs in recent years, due both to small-stock farmers switching to game-farming, and to the non-availability of land for new emerging farmers. There is also evidence that the District s tourism sector is already a significant employer and growing at more than average rates. Jeffreys Bay is now reputed to be the fastest growing town in South Africa. 6

7 Municipal Area Population Main towns Main Products Kou-Kamma Kareedouw Joubertina Stormsrivier Forestry Deciduous Fruit Dairy Flowers (Proteas) Honeybush Tea Tourism Baviaans 18,000 Willowmore Steytlerville Eco-tourism Game/Hunting Sheep Camdeboo Graaff-Reinet Aberdeen Nieu-Bethesda Game Sheep Goats Tourism Kouga Humansdorp Jeffrey s Bay St Francis Patensie Hankey Citrus Vegetables Tobacco Tourism Dairy Forestry Ikwezi Jansenville Game Sheep Goats Blue Crane Route 36,000 Somerset East Cookhouse Pearston Sheep Goats Game Beef Field Crop Irrigation (Lucerne) Ostriches Sunday s River Valley Kirkwood Addo Paterson Citrus Lucerne Flowers Tourism/Game Ndlambe Port Alfred Alexandria Kenton-on-Sea Boesmansrivier Bathurst Tourism/Game Reserves Beef Dairy Pineapples Chicory Makana Grahamstown Alicedale Game Beef Goats Tourism (e.g. Eco-Tourism, various Festivals) University Graduates DMA (excluding national parks) Mainly rural Rietbron and small settlements Sheep Goats Game 7

8 From the table below we can identify the following broad trends in the district economy: Relatively strong real growth of GVA over the period (1996 to 2005), but only 5,000 net job creation Nearly all net job creation was from Community Services sector (public sector). That is, job creation in some private sectors was offset by job losses in others. The agricultural sector (including forestry) showed real growth over the period, but a decline in jobs (presumably due to game farming etc) There was quite strong growth in manufacturing & jobs were maintained. Construction, Trade & Finance showed strong growth of real GVA and jobs The growth of Community Services GVA was below the provincial average (because Cacadu is a relatively privileged region). It is also clear from the local municipal-level data that most growth is occurring in the coastal municipalities. Specifically, Kouga accounted for 25% of District jobs in 1996 and 28% of District jobs in GVA AND EMPLOYMENT PER SECTOR FOR CACADU Sector GVA 1996 GVA 2005 Change Joba 1996 Jobs 2005 Change Agriculture R R % % Mining R R % % Manufactruring R R % % Electricity R R % % Construction R R % % Trade R R % % Transport R R % % Finance R R % % Community Services R R % % Households % Total R R % % Note: Gross Value Added (GVA) at constant 2000 prices; jobs refers to formal employment Source: Global Insight

9 Access to basic services (water, sanitation, electricity and housing etc) is relatively high throughout the District, but backlogs remain (for example, bucket toilets). Some 22% of adults have completed matric or above, which is higher than other Districts. The District s HIV-prevalence rate is relatively low. Based on the most recent data from the National Treasury, Cacadu District Municipality had a total capital expenditure (capex) budget of R119 million in 2005/06, or R306 per capita. This is below the provincial average. 39% of the capex budget is funded from grants and subsidies, which is a relatively low proportion. Kouga Municipality is the richest in the District, and its capex and operating budgets are both larger than the District Municipality. Four local municipalities have capex budgets of less than R10 million. Total operating budgets for the Cacadu Municipalities is R675 million, or R1740 per capita. This is significantly higher than the provincial average. Grants and subsidies account for 21% of budgeted operating revenue (below average). Revenues from electricity distribution and property rates account for 21% and 16% of total budgeted revenues respectively: both about average. Personnel costs account for 41% of total budgeted operating expenditure (above average), while electricity purchases account for 11% (below average). To address Provincial development challenges and opportunities, the Provincial Growth and Development Plan (PGDP) was launched in 2004, and the PGDP finds expression in the District s IDP s. More recently, AsgiSA has been launched to accelerate economic growth throughout South Africa. The Cacadu District has also developed its own Economic and Development Framework, based on five strategic pillars: economic infrastructure, sector development, HR and skills, institutional development and regional linkages. The District may be in a position to benefit from two AsgiSA programmes: biofuels and forestry. The present document aims to outline the elements of a development strategy for the Cacadu District that is consistent with, and informed by, the DM s Development Framework. Specifically, this document considers how to: Promote Socio-economic Infrastructure Engage in Sector Development Address HR and Skills Development Maximise Institutional Development Ensure Regional Linkages 9

10 SOCIO-ECONOMIC INFRASTRUCTURE DELIVERY OF BASIC SERVICES This section briefly outlines service delivery with respect to water, sanitation, electricity and housing. The data on water and sanitation backlogs is based on a study commissioned by the Cacadu District Municipality (2005). This section also uses some of the RSS (2006) rapid services survey data. WATER Historically high levels of household water security, made possible by infrastructure investments from the former Western District Council continue to characterise Cacadu household water access. With the exception of Ndlambe (54% of households) four fifths and more of households in Cacadu have individual water connections (metered or unmetered). The numbers of households with no formal water access is relatively low with Baviaans (144 households or 4% of households) and Ndlambe (125 households or 1% if households) making up the bulk of the 304 households in the district who do not have any formal water supply. Standpipes are still prevalent in Baviaans, Kouga, Koukamma, Makana, Ndlambe and Sunday s River. CACADU ESTIMATES OF WATER BACKLOGS Municipality Nothing Standpipe > 200 m Standpipe < 200 m Ind. Conn. un-metered Ind. Conn. metered Yard Tank Others # % # % # % # % # % # % # % Baviaans Blue Crane Route Camdeboo DMA-WDM Ikwezi Kouga Kou-Kamma Makana Ndlambe Sunday s River Valley Total Source: Cacadu

11 SANITATION Although households in all local municipal areas in Cacadu are above the provincial average in terms of formal household sanitation, the levels vary among local municipal areas. The bucket system is still prevalent in Cacadu and constitutes a significant challenge as far as sanitation backlogs are concerned. Almost half of households in Ikwezi (49%) still rely on the bucket system with high levels also recorded for Baviaans (38%), Blue Crane Route (19%), Kouga (15%), Makana (9%) and Koukama (7%). Households with no formal sanitation are only recorded in Makana (759 households or 5%) and Baviaans (130 households or 3%). Otherwise significant levels of households who access sub RDP standard sanitation (pit latrines) are found in Sunday s river (33% of households), Kou-Kamma (9%), Ndlambe (4%) and Camdeboo (2%). 11

12 CACADU ESTIMATES OF WATER BACKLOGS Municipality Nothing Pit Latrine VIP Bucket System Conser. Tank Septic Tank SBS System FW System # % # % # % # % # % # % # % # % Baviaans Blue Crane Route Camdeboo DMA-WDM EC DMA Ikwezi Kouga Kou-Kamma Makana Ndlambe Sunday s River Valley Source: Cacadu

13 WATER AND SANITATION BACKLOGS The water and sanitation backlogs for Cacadu are all associated with urban settlements with virtually no rural settlements occurring within the district. The costs for eradicating the estimated water and sanitation backlogs for Cacadu amount to R664m (R223m for water and R441m for sanitation). Makana (26%), Kou Kamma (20%), Sunday s River Valley Valley (17%) and Baviaans (12%) make up three quarters of the estimated water backlog for Cacadu. The estimated sanitation backlogs are largely accounted for by Ndlambe (23%), Kouga (22%), Sunday s River Valley (15%) and Makana (13%) accounting from almost three quarters of the estimated sanitation backlogs. According to Cacadu s projections (2005), the Municipal Infrastructure Grant (MIG) will not be sufficient to meet the 2014 deadline for the eradication of backlogs. In terms of Cacadu s proposed Backlog Eradication Programme (BEP) the eradication of the backlog by 2012 would require an additional R306.4m over and above the MIG. The shortfall would increase to R422.3m if the 2014 target is used. The eradication of backlogs in water and sanitation in the District (in line with national targets) is well within reach, provided the Districts backlog eradication plan (BEP) is adequately resourced and implemented. There is clearly a need to lobby for more MIG funding to achieve the targets. ESTIMATED WATER AND SANITATION BACKLOGS FOR CACADU LM name Category Water Development Cost Inclusive of Bulk development and reticulation Sanitation Development Cost R % R % Camdeboo Urban R 7,247,481 R 13,804,525 Total R 7,247,481 3 R 13,804, Blue Crane Route Urban R 8,195,304 R 26,178,854 Total R 8,195,304 4 R 26,178, Ikwezi Urban R 4,218,681 R 17,587,860 Total R 4,218,681 2 R 17,587, Makana Urban R 58,959,320 R 56,411,563 Total R 58,959, R 56,411, Ndlambe Urban R 15,879,925 R 100,344,668 Total R 15,879,925 7 R 100,344, Sunday s River Valley Urban R 37,186,204 R 67,633,517 Total R 37,186, R 67,633, Baviaans Urban R 26,069,778 R 31,203,103 Total R 26,069, R 31,203, Kouga Urban R 19,556,984 R 95,344,997 Total R 19,556,984 9 R 95,344, Kou-Kamma Urban R 43,606,396 R 30,125,010 Total R 43,606, R 30,125, Aberdeen Plain Urban R 2,060,975 R 1,905,607 Total R 2,060,975 1 R 1,905, Cacadu Total R 222,981,047 R 440,539,703 Source: DHLGTA and DWAF,

14 ELECTRICITY Household access to electricity for the local municipal areas in Cacadu is widespread with a consistently high proportion of households reporting access to electricity at least for lighting. In 2006 some 83% of households in Cacadu reported using electricity at least for lighting. Over the period a full 11% of households in Cacadu were connected to the grid. Challenges associated with greater access to the grid for household energy in Cacadu are generally associated with household rather than community connectedness to the grid. All the main urban centres in Cacadu are connected to the grid. Electricity Gas Paraffin Candles Solar & Other Census 2001 RSS 2006 Census 2001 RSS 2006 Census 2001 RSS 2006 Census 2001 RSS 2006 Census 2001 RSS 2006 % % % % % % % % % % Eastern Cape Cacadu Baviaans Blue Crane Route Camdeboo EC DMA Ikwezi Kouga Kou-Kamma Makana Ndlambe Sunday s River Valley Source: SSA 2001 and RSS

15 HOUSING Levels of informal housing in Cacadu are higher than the provincial average for the local municipal areas of Makana (23%), Sunday s River Valley (20%), Ndlambe (17%) and Kouga (17%). These areas also generally reflect a significant growth of informal housing over the period suggesting that they may be key nodes for in migration within the district. Informal Housing Census 2001 RSS 2006 % % Eastern Cape Cacadu Baviaans Blue Crane Route Camdeboo EC DMA Ikwezi Kouga The current level of housing backlogs in Cacadu as reported by the local municipalities is given in the table below. ESTIMATED HOUSING BACKLOGS IN CACADU Local Municipality Housing Backlog # of Units % Baviaans Blue Crane Route Camdeboo Ikwezi Kouga Kou-Kamma Makana Ndlambe Sunday s River Valley Total Source: Information as provided by LMs, October 2006 Kou-Kamma Makana Ndlambe Sunday s River Valley Source: SSA 2001 and RSS

16 BUILD AND MAINTAIN INFRASTRUCTURE It has been repeatedly suggested that one of the major factors contributing to the low level of economic competitiveness and social cohesion, and the failure to exploit economic potential, has been the poor state of infrastructure and infrastructurerelated services. This section of the district profile attempts to summarise the physical infrastructure development plans that have been budgeted for over the medium term, and that are likely to contribute to a more enabling social and economic environment in the Cacadu District. Unlike all other districts in the province, Cacadu has a relatively well developed infrastructure, and backlogs aren t as acute as in other areas. The vast natural land, vegetation and water resources that exist within the district, and the existing infrastructure base, provide the basis for socio-economic development. But it is well-planned and prioritised, strategic and complementary infrastructure investments that will promote high levels of social development, and stimulate sustainable economic growth. PROVINCIAL DEPARTMENT INFRASTRUCTURE EXPENDITURE PLANS from 06/07 08/09 in the Cacadu District: The total infrastructure spend directed towards the Cacadu District by the Eastern Cape provincial government departments amounts to approximately R1bn over the current medium term expenditure cycle. This represents significant public sector infrastructure investment that hopefully crowds in private investment. Provincial Department of Education Education is a key element of social and economic development. The Provincial Department of Education has planned and budgeted up to R250m on education infrastructure in the Cacadu District over the current medium term expenditure cycle (06/07 08/09). The Provincial Department is spending R59m in 06/07, rising to R74m in 07/08 and then to R116m in 08/09 (a 90%+ increase over the three year period), and this represents about 9% of total departmental education infrastructure investment over the current medium term cycle. Almost all of the spending is targeted at rehabilitation and upgrading, as well as routine maintenance, with 29 schools and 3 FET colleges targeted for upgrading to receive R134m over the three year period. The balance of the expenditure is on routine maintenance for all schools in the district. Therefore a notable shift towards quality as opposed to quantity (quantity has been the norm for previous medium term expenditure cycles). These upgrading and maintenance amounts are crucial in two respects, 1) by upgrading, maintaining and protecting existing assets ensuring guarantee of returns well into the future, and 2) direct and indirect cash injections boost local economies, as routine maintenance activities are generally labour-intensive. Provincial government education infrastructure spending per capita in the Cacadu District over the three year period, in total, is R625 per person, the highest per capita ratio in the Eastern Cape. 16

17 Provincial Department of Health The provincial health department has planned and budgeted for a total health infrastructure spending of R55m in the current medium term expenditure cycle for the Cacadu District This provincial health infrastructure expenditure in Cacadu amounts to approximately 3% of total health infrastructure spending by the provincial government over the medium term cycle. The allocation is targeted at clinics and hospitals, with major investment concentrated in Camdeboo (R35m) and in particular the Kroonvale Clinic in Graff-Reinet, and the Midlands Hospital. The balance of expenditure is on routine maintenance of all health facilities throughout the district. The relatively small allocation to the Cacadu District (relative to other districts and the Metro in the Eastern Cape) is indicative of the fairly well established health facilities in the district, the existence of private institutions, and a small population. However, access to health facilities - in terms of distances between health institutions and human settlements remains a critical challenge as people have to travel long distances to get to health facilities. The provincial health infrastructure spending per capita in the Cacadu District over the medium term amounts to an approximate R137.5 per person. Provincial Department of Agriculture The Cacadu District has vast natural resources and beauty, and these resources are at the heart of any sustainable growth potential and economic activity in the District. Given this existing natural resource base, the Provincial Department of Agriculture plays an important catalyst role in promoting subsistence farming (food security) and small and large scale commercial agriculture. Over the current medium term period (06/07 08/09), the Provincial Department of Agriculture will spend approximately R31m on infrastructure in the Cacadu District, representing 15.5% of the total infrastructure spend (R200m over the medium term) by the provincial department in the District. The allocation is targeted largely at fencing, stock water, irrigation, storage and shearing sheds, tunnels, dip-tanks, and soil conservation works. The Provincial Agriculture infrastructure spend per capita amounts to approximately R77 per person in the Cacadu District. 17

18 Provincial Department of Roads and Transport Another key element of required infrastructure development in the District is the road network. The Cacadu District suffers from significant road infrastructure backlogs given the largely rural (farmland) character of the District. In light of these backlogs, and recognising the key enabling role that transport infrastructure has for economic and social development, the provincial roads and transport department has allocated approximately R791m to road infrastructure in the Cacadu District area, rising from over R172m in 06/07 to R275m in 07/08 and then rising further to R344m in 08/09. This total allocation over the medium term represents approximately 15% of the total provincial allocation towards road infrastructure, and amounts to a per capita spend of R1900 per person in total over the medium term expenditure framework, the highest across the entire province. The major transport projects envisaged in Cacadu are: Fonteinskloof to Nanara Road (R185m), Addo Paterson MR450 (R67m), and Patensie to Hankey (R43m). The balance of the funds (over R400m) has been committed to routine area-wide maintenance of all roads in the Cacadu District, over the current medium term expenditure cycle. Provincial Department of Housing, Local Government & Traditional Affairs In the current financial year 06/07 - the Provincial department has budgeted and begun implementing a R22m housing programme in Cacadu: 1669 houses at Kliplaat, Tsitsikamma, Mfengu, Addo and Noluthando. Provincial Department of Sport, Recreation, Arts and Culture The total Provincial Department allocation to Cacadu amounts to just R1.5m over the current medium term expenditure cycle. This amount has been set aside in the 06/07 financial year for construction work on the Tsitsikamma Museum. The Steytlerville Sports Field has been planned but yet to be budgeted for. Estimated cost is R1m. The Cacadu allocation of the Department s infrastructure budget represents 0.4% of total departmental infrastructure spending throughout the Province. The infrastructure per capita spending for the department in the district lies at R3.8 per person of infrastructure spend. Provincial Department of Social Development The provincial department has allocated almost R16.5m in infrastructure spending over the current medium term expenditure cycle to the Cacadu District. The expenditure is targeted at new construction of the Humansdorp Multi-purpose Centre (R6.8m), the Graaff-Reinet Multi-purpose Centre (R3.1m), and the Grahamstown Multipurpose Centre (R6.3m). A further R0.3m is allocated for maintenance and upgrade of parkhomes, and routine maintenance of existing social development infrastructure. The total infrastructure spending in Cacadu represents 24% of total Social Development infrastructure spending in the province. The social development infrastructure per capita spending over the medium term is approximately R41 per person. 18

19 PROVINCIAL GOVERNMENT INFRASTRUCTURE EXPENDITURE: CONCLUSIONS These significant provincial infrastructure expenditure plans in the Cacadu District will provide a meaningful platform for social and economic development given the opportunities such spending opens up in both the first and second economies. Relative to other Districts and the Metro in the Eastern Cape, Cacadu, in total provincial infrastructure spend over the current medium term cycle, will receive approximately 11%. It is important for social and economic infrastructure to complement each other, thereby mutually reinforcing the sum total of benefits derived from the infrastructure expenditure and its economy-wide linkages. It is necessary, but not sufficient, to just build new infrastructure. Maintenance of existing infrastructure needs to also be prioritised. Currently, maintenance of state-owned immoveable assets is poor inevitably leading to rapid deterioration of buildings and other assets. Maintenance funds have always and may probably remain limited. Much of the limitations with respect to maintenance can be attributed to poor levels of definition with respect to the responsibility for maintenance budgeting. The distinction between levels of responsibility between Public Works and User departments as reflected by the infrastructure plans will go a long way towards regularizing maintenance planning. Finally, it is commendable that a paradigm shift is evident through the infrastructure allocations, with the focus on the quality of infrastructure and services, as opposed simply to the quantity, especially in education and health. MUNICIPAL INFRASTRUCTURE GRANT (MIG) The National Government provides infrastructure subsidies to ensure that all households have access to a basic level of infrastructure services. The benefits of this intervention are well known, particularly in relation to the public good characteristics of many municipal services. The key objectives of the Municipal Infrastructure Grant are to: fully subsidise the capital costs of providing basic services to poor households: this implies that priority must be given to meeting the basic infrastructure needs of poor households, through the provision of appropriate bulk, connector and internal infrastructure in key services; distribute funding for municipal infrastructure in an equitable, transparent and efficient manner, which supports a co-ordinated approach to local development and maximises developmental outcomes; assist in enhancing the developmental capacity of municipalities, through supporting multi-year planning and budgeting systems; and provide a mechanism for the co-ordinated pursuit of national policy priorities with regard to basic municipal infrastructure programmes, while avoiding the duplication and inefficiency associated with sectorally fragmented grants. 19

20 STRATEGIC INFRASTRUCTURE PROJECTS Road Upgrade of R332 1 Access to the Baviaanskloof and surrounding areas is by means of the R332 road, which is the only access point to and from the Baviaanskloof from Patensie in the east and Willowmore in the west. The road (R332) that goes through the Baviaans Mega-Reserve is the only entry point into and exit point out to the reserve. This road leads from Patensie in the east to Willowmore in the west. This is the only road through the Baviaanskloof and as such is the only access to the area for both tourists and the local population. It is currently in a very bad condition, with certain areas only accessible to 4x4 vehicles and is continuously deteriorating. In addition to accessibility, for the purposes of conservation of the area, the road needs to be in a good state The Baviaanskloof Mega-Reserve is located in the western parts of the Eastern Cape between the Baviaans and Koega mountain ranges, northwest of Port Elizabeth. The Baviaanskloof Mega-Reserve area is the third largest conservation area in South Africa (184,385 ha) and unique in offering a rich cultural and ecological experience to visitors, as illustrated by the awarding of the status of World Heritage Site to this area. The area has outstanding natural beauty and biodiversity with a variety of mammal and plant species. These natural assets can lead to sustainable economic growth through tourism and nature-based commercial ventures. A community of around 1,200 people live in this area and work predominantly in the agricultural sector. The road is a public road and the responsibility of the Department of Roads and Transport of the Eastern Cape Provincial Government. Currently the road is maintained from Willowmore up to Geelhoutbos, as well as the section between Komdomo and Poortjies World Cup As part of the build up to the 2010 FIFA World Cup, appropriate supporting mechanisms are being established to realise the benefits of hosting this major event in the province. To this effect, various departments are working on a strategy to identify relevant opportunities associated with enhancing the tourism attractions of the District. The Metro is a host city for the 2010 World Cup, but the spinoffs, especially in terms of tourism, accommodation, and leisure will be most prominent in Cacadu given the existing presence of tourist attractions and facilities relative to the Metro. From a tourism perspective, the Department of Economic Affairs, Environment and Tourism is working within the Provincial 2010 Committee to ensure that the necessary supporting environment is created for tourism to flourish. Many investment opportunities are expected to emerge out of this exercise. The infrastructure spending (predominantly in the Metro) will generate direct, indirect and induced effects with cross-linkages and spill-over effects that will live long beyond the 2010 event itself. 1 Drawn from the Cacadu EGDS,

21 Transport An efficient, safe and sustainable transport network and system is a key requirement for further infrastructure and economic growth in Cacadu. And with the 2010 World Cup on the horizon, it is important that the transport network and systems are maintained and improved. The backlogs for roads, stormwater and transportation stand at about R2.9bn, broken down as follows: R495 million (maintenance). R605 million (rehabilitation). R1.8 billion (upgrade infrastructure). Local Municipalities in Cacadu are currently responsible for the provision and maintenance of: km of surfaced roads km of gravel roads km of un-surfaced roads 68 bridges Current budgets allocated to transport infrastructure, including stormwater infrastructure need to be reviewed in order to deal with the backlogs. This will require further lobbying and engagement with provincial and national government departments (and their public entities), as well as with the local private sector (through PPPs). In addition to funding constraints, some of the key challenges facing Cacadu in transport services include: Roads classification is not finalized yet resulting in overlapping of function between the Provincial Government, CDM and the local municipalities Lack of service level agreements between the Province and the Municipalities with regard to maintenance of roads within the municipal area or jurisdiction. A dilapidated and inefficient rail system that has been neglected over many years, and is now costly to revive. 21

22 SECTOR DEVELOPMENT JOB CREATION AND LIVELIHOODS HH INCOME AND UNEMPLOYEMENT FOR CACADU Unemployment (expanded Definition) Global Insight HH Income less than R 1500/ month RSS % % % Cacadu Baviaans Blue Crane Route Camdeboo Ikwezi Kouga Kou-Kamma Makana Ndlambe Sunday s River Valley Source: Global Insight, 2006 and RSS, 2006 In the context of the very high unemployment and poverty rates mentioned above, there is clearly an urgent need for major new private sector investments to create jobs and improve livelihoods in the Cacadu District. Based on existing economic activity, market opportunities and present resource/assets/skill bases the particular industries offering potential include: Agriculture Timber Manufacturing Construction Trade and Business Services/ICT Tourism Each of these industries requires a coalition of committed players, able to design realistic and sustainable development strategies, and detailed Industry Action Plans, specifying investments to be packaged, timelines and milestones, stakeholders and responsibilities. Preparatory work and the start-up of many small municipal LED pilot projects have already taken place for all these industries in the Cacadu District, and the main challenge is to galvanise role-players to ensure accelerated and shared growth, and good quality investments. In particular, the sustainability of municipal LED pilots (in all industries) will require careful attention, to ensure new private investment, expansion and local replication. AGRICULTURE The District already has a strong and very diversified agricultural sector. The diversification is illustrated by the variety of leading products listed in the table above (in the District snapshot) and results from the fact that all of SA s agro-ecological zones are present in the District: forest, grassland, succulent karoo, fynbos, savannah grasslands and thicket. While the sector is mature and dominated by a relatively small number of commercial farmers, there are many opportunities to expand incomes and employment in the sector. For example, irrigation enterprises could be developed in the Fish and Sunday s River valleys by increasing water transfers from the Gariep Dam. (DWAF are already considering this). This could provide opportunities for emerging farmers in citrus, floriculture, vegetables and biofuels (linked to the sugar beet project between Cookhouse and Cradock). Other opportunities for emerging farmers include essential oils, aloe ferox, pineapples, dairy and deciduous fruits. The main constraint at the moment seems to be land availability. The land redistribution process seems to be proceeding very slowly in the District, and there needs to be urgent discussions with the Department of Land Affairs and commercial farmers to see how to speed up the process. 22

23 TIMBER There are already forests in the District: in Tsitsikamma, Kouga (e.g. Longmore), and Alexandria (Ndlambe), and a small secondary industry (indigenous-wood furniture in Humansdorp and Kareedouw etc).the District needs to explore with DWAF and AsgiSA the feasibility of expanding the area under forestry to accommodate small-scale growers. Opportunities for more timber value addition should also be explored. 23

24 MANUFACTURING This is a small but not insignificant part of the District economy, accounting for some 7% of District GDP. Existing producers include chicory processing, some fruit processing, wood processing (Koukamma, Kouga) and small-scale leather, taxidermy and crafts. There is also potential for expanding agri-processing in the District with some new investments and initiatives currently underway in the district. These include: The R140m investment in Bathurst to process pineapples into fibre and bio chemicals; A proposed plant for fibre extraction and paper making from Agaves in Graaf-Reinet; A proposed tomato puree factory in Kirkwood with an R80m investment and the potential to create 180 jobs The R1.4m charcoal processing in Kareedouw A proposed granadilla paste processing plant in Somerset East/ Cookhouse/Pearston; Processing of essential oils linked to a number of trials underway (Woodlands, Baviaans, Graaf-Reinet and Middleberg) CONSTRUCTION The construction sector is expanding in the District, as a result of coastal property development (eg Jeffreys Bay and the Kenton Eco Estate, estimated to be a R600m investment) and the increasing fiscal allocations for public infrastructure (see section above on infrastructure). The jobs and empowerment impact of this increasing construction activity will be optimized by the full use and extension of EPWP and Emerging Contractors Development Programmes. TRADE AND BUSINESS SERVICES/ICT These are important activities for job creation and livelihoods. For example: Improved infrastructure for informal traders (hawkers stalls and taxi ranks) Business mentoring for emerging businesses The District s agricultural output (eg wool and mohair) is mainly sent to the Metropole for value addition. With much of the wool and mohair plant (for washing, scouring, de-greasing etc) in the Metropole being very old and needing replacement, there may be an opportunity for new plant to be located in the District provided that adequate quantities (and quality) of water are available. 24

25 TOURISM There are many tourist attractions and much new activity For Example: Garden Route Tsitsikamma National Park World s highest bungee jump Baviaanskloof Reserve (part of the Cape Floristic Kingdom, a world heritage site) Addo Elephant National Park Sarah Bartmann heritage site in Kouga World-class surfing Coastal resorts Graaf-Reinet, Valley of Desolation, Nieu-Bethesda Shamwari & Alicedale Golf Estate Private nature reserves / eco-tourism Hunting Grahamstown National Arts Festival, SciFest (science festival) Rail based tourism opening the rail line for day trips (NMB, Alicedale, Bushmans Sands, Grahamstown and Bathurst; Middleberg to Graaf-Reinet; Somerset East to Cookhouse and the Apple Express) Boschberg R700 million golf estate, hotel, wellness centre and equestrian centre 25

26 Local Tourism Organisations All but the smallest towns have tourism information centres that provide information on local attractions and accommodation to visitors. Links to Metro Nelson Mandela Bay is an integral part of the district s tourism economy, as it serves as the gateway to the district, particularly for international tourists that arrive by air or by road to and from the Garden Route and the Western Cape. Infrastructure The road through the Gamtoos valley to the Baviaans Megareserve (R332) is currently accessible only to four-wheel drive vehicles. The reserve is destined to remain mainly a wilderness area, with limited access (unlike the Addo Elephant National Park), but its current inaccessibility severely hampers the flow of tourists through the Kloof. The Addo Elephant National Park is one of the most visited tourism attractions in the district. The access road between the Metro and Addo is in a very poor condition and urgently in need of upgrading. Game Farming There has been an increasing shift to game farming in many areas in Cacadu which were traditionally livestock farming areas. This shift has been accompanied by the increasing size of economically productive units necessitated by the nature of game farming. It has also been accompanied by shifts in employment practices with claims that many traditional farm workers have been made redundant. As a result there have been serious questions raised about the socio-economic impact in this shift in land use. While game farming is clearly a positive trend as far as the promotion of regional tourism is concerned and there are some indications that it promotes relatively more secure and meaningful employment opportunities there is still insufficient evidence as to its overall employment generating potential as opposed to other land uses. A recent study by the Centre for African Conservation Ecology (2006) at the NMMU which surveyed 13 game farms in the Eastern Cape, highlights some positive features associated with the emergence of private game farms. It also indicates that the barriers to entry into this sector have been rising with the costs of establishing a game farm having increased by R10m since 2004 to a median of about R42m in While work has been done on other tourism routes in the district, there is a great need for further upgrading, particularly for tour buses. 26

27 MINING, A NEW GROWTH SECTOR IN CACADU? There are a number of mineral deposits in the Karoo which have either been underexploited or which have been marginal and not economically viable. The opportunity provided by the kaolin (clay) deposit at Grahamstown remains unexploited. There is a significant uranium deposit in the Karoo, where mining was abandoned in the 1970 s. Recently however, the demand for uranium has strengthened, as have global prices. As a consequence, the marginal deposits in the Karoo might well become viable. The recent cement shortage in South Africa might also have positive implications for marginal lime deposits, of which there a number in the Cacadu district. 27

28 HR & SKILLS DEVELOPMENT SKILLS UPGRADE 1 A successful growth and development path hinges on, among other factors, the availability of skills and human resource development practices that encourage skills development on an ongoing basis. Indeed, the challenge facing sustainable economic development in Cacadu largely lies with the region s ability to prioritise and harness its citizens skills capabilities. Cacadu is faced with the challenge of a narrow skills base. This is a result of the district s over-dependence on the agricultural sector as the sector generating the largest number (34.4% in 2004) of predominantly unskilled employment opportunities. There is a need to increase the skills base of the district to facilitate a reduction in unemployment. This may be achieved through the training of individuals in sector-specific skills, in sectors in which currently there is a shortage of employable individuals. One of the main aims of human resource and skills development is to facilitate an improvement in the accessibility of skills development programmes for communities in a manner that is conducive to an improved availability of skilled labour. The improvement of the labour force is integrated with the improvement of the skills and literacy levels of the community. The labour force in Cacadu District consists largely of unskilled labour force (45.1% of employed persons) that is employed in elementary occupations. A further 21.3% is employed as plant and machine operators, trade / craft workers and market workers. A large proportion of the population (25.2%) only has some primary education. In addition, 15% of the population has no schooling. This translates into 60,570 individuals who do not have a basic level of literacy. 21.6% of the population have completed matric and / or have some form of higher education. This is higher than the provincial average of 20%, but lower than the national average of 29%. It goes without saying that a redress of employable skills training is necessary in Cacadu. An approach that can be followed to facilitate this revolves around the provision of opportunities for local residents of the district to participate in skills enhancement and development programmes. It is, however, important, to note that when dealing with human capital, i.e. labour, that this is primarily a renewable resource and therefore as the needs of the community change and expand, this labour base within the district should be moulded to accurately meet the requirements of the economy. 1 Drawn from the Cacadu EGDS,

29 Emphasis should be placed on job creation and for local government this means creating and fostering an enabling environment - within the District to reduce the skills leakage. The retention of skilled labour and the return of skilled labour to the district is crucial to local economic development in that the loss of the most educated members may undermine community-based organisations and erode that population s capacity to respond to local economic development programmes implemented at the local level. A large number of skilled individuals in the Cacadu District, youth and recent graduates in particular, are seeking employment outside of the district, e.g. in neighbouring Nelson Mandela Bay, East London etc. The typical pull factors of migration provide possible explanations for this phenomenon - a more competitive remuneration package and a relatively larger number of employment opportunities. Furthermore, HIV and AIDS have, are and will continue to affect productivity as cited during various stakeholder engagements. In response to these skills challenges, the Cacadu District Municipality is planning a dedicated sector-focused technical college located in Somerset East to roll out a range of skills programmes geared towards the priority social ad economic sectors. A time frame of 2 3 years has been set to conduct, 1) a skills audit and develop a database thereof, and 2) for the construction (upgrading) and equipping and resourcing of the technical college. Furthermore, the Kouga Training Centre Project is being implemented, involving a R2.2m upgrade (construction) at the facility in Humansdorp. The skills roll out will be mostly dedicated to the tourism and hospitality sector, and is expected to be operational in An Academy of Visual Arts, Crafts and Performing Arts, planned for Aberdeen, and in partnership with the Nelson Mandela University, SABC, Performing Arts Council (PAC), Artists, and Camdeboo residents, is set to commence in The total estimated cost is R1.5m. 29

30 INSTITUTIONAL DEVELOPMENT IMPROVE PUBLIC SERVICES Although services access reported by local households in Cacadu are in many instances above the provincial norm there are a number of instances where this is not the case. These include the following: Households reported lower levels than the provincial average (35%) in terms of access to good roads in Blue Crane (13%), Ikwezi (12%), Ndlambe (28%) and Kou-Kamma (29%) and the DMA areas (7%). In terms of access to hospitals Ikwezi (41%), Ndlambe (40%), Sunday s River (38%), Baviaans (25%), Kouga (43%) and the DMA (7%) were all below the provincial average (43%) with Koukamma on par with the provincial average. Clinic access is way above the provincial average of 70% (between 85% in Baviaans to 100% in Blue Crane Route and Sunday s River) with only the isolated communities spread across the DMA reporting levels lower than the provincial average (62%) Access to emergency health services (ambulances) was lower than the average for the province (43%) for Ndlambe (39%) and the DMA (20%) with the remaining areas above the provincial norm (between 55% in Makana to 71% in Ikwezi) Public primary school access was below the provincial norm (87%) for Makana (67%) and the DMA communities (70%) with the other areas recording higher levels (between 81% in Ndlambe to 100% in Baviaans). HOUSEHOLD ACCESS TO BASIC SERVICES FOR CACADU Roads in good condition Hospitals Clinics Amabulance Services Public Schools/ Primary Schools % % % % % Eastern Cape Cacadu Baviaans Blue Crane Route Camdeboo EC DMA Ikwezi Kouga Kou-Kamma Makana Ndlambe Sunday s River Valley Source: RSS

31 31

32 HEALTH Data on health infrastructure in Cacadu, and its distribution across the local municipal areas, is provided in the table below: HEALTH SERVICES INFRASTRUCTURE CHCs & Hospitals Set Clinics Satellites Mobiles Totals CDM LM Prov CDM LM Prov CDM LM Prov CDM LM Prov Camdeboo Blue Crane Route Ikwezi Baviaans Total Cambedoo Health Sub-District Makana Ndlambe Sunday s River Valley Total Makana Health Sub-District Kouga Kou-Kamma Total Kouga Health Sub-District EC DMA Total for Cacadu District Source: Health Services,

33 HEALTH SERVICES DELIVERY Primary Health care services are delivered by Cacadu District Municipality (CDM), the Local Municipalities (LM), and the Eastern Cape Department of Health clinics in local communities. According to the IDP Engagement in January 2007 the following issues with regards to the delivery of health services were identified: Most PHC clinics are fully compliant with the full PHC Package Service delivery is affected by the severe staff shortages and insufficient budget allocations The rural nature of the Cacadu District makes it difficult to recruit and retain staff such as scarce professional categories. The staff establishment of Cacadu district municipality is 1,628 employees while there are 699 vacancies suggesting a vacancy rate of 43%. This extremely high level of vacancies has had significant consequences for services delivery affecting both corporate and clinical performance. CACADU DISTRICT FILLED VS VACANT POSTS Institution Filled Posts Vacant Posts Established Vacancy Rate Cacadu DM % Cacadu EC DoH Office (Prov) % Kouga % Makana % Cambedoo % Andries Vosloo % Humansdorp Hospital % Midlands Hospital % Port Alfred Hospital % Settlers Hospital % Total % Source: DoH, IDP Engagements, January 2007 The high levels of staff vacancies in Cacadu clinics are reflected in the higher than average nurse workload. The workload for nurses in Cacadu is second only to that of clinics in the NMBM. NURSE CLINIC WORKLOAD Alfred Nzo DM Amathole DM Cacadu DM Chris Hani DM N Mandela Bay MM OR Tambo DM Ukhahlamba DM Total Source: DoH, February 2007 Key challenges for improving health care services which are confirmed by the provincial IDP engagement process (January, 2007) include engaging the provincial Department of Health on the following: To ensure that the minimum staff complement required to deliver basic healthcare services is in place. Skills development in Human Resource, Financial and Supply chain management have been identified as critical areas for improving services delivery Referral systems and the transportation of patients needs to be improved Primary Health Care services (PHC package), not available in all PHC facilities need to be included Upgrading and improvement of facilities, structures, and extensions. Upgrading and improvement of equipment at facilities, and provision of vehicles. Integration of Specialized services and Provincially Aided Hospitals Ensure that the District Health Plan (DHP) is operationalised through the participation of a wide range of stakeholders in Cacadu 33

34 EDUCATION School sanitation infrastructure in Cacadu schools requires urgent upgrading with about one tenth of schools reporting no formal infrastructure and significantly more relying on pit latrines or the bucket system. SCHOOL SANITATION Flush to Sewer Flush to Septic Ventilated Pit Pit Bucket No Sanitation # % # % # % # % # % # % Craddock Graaf-Reinet Grahamstown Source: EMIS,

35 HIV & AIDS The Cacadu District Municipality had an antenatal prevalence rate 1 of 19.0% in 2005, up from 16.8% in 2002, which is significantly below the provincial average for the Eastern Cape (28.03% in 2004). Cacadu has the lowest antenatal prevalence of all Eastern Cape districts. However this figure is likely to hide pockets of vulnerability in urban informal and formal settlements, and among high risk populations such as seasonal farm labour. ESTIMATES OF HIV PREVALENCE IN THE EASTERN CAPE BASED ON ANTENATAL SURVEYS Antenatal 2002 Antenatal 2004 Antenatal 2004 % % % Alfred Nzo DM Amathole DM Cacadu DM Chris Hani DM N Mandela Bay MM OR Tambo DM Ukhahlamba DM Total Source: DoH Antenatal Survey, 2004 It is estimated that 10% of the total population of the Eastern Cape is HIV positive, and 19.2% of adults (20-64 years) (ASSA 2003 Model). For the province as a whole, women have higher HIV prevalence than men, the African population is at higher risk, and the epidemic is growing fastest among youth (15-25 years). It is particularly young women that become infected. Prevalence for males exceeds that of women only in the age group (ECAC, 2005). Early sexual debut, age difference between partners and transactional relationships is reported to play a role in driving the epidemic (ECAC, 2005). Hence, prevention programs should be targeted towards young people. 1 Antenatal prevalence refers to the percentage of pregnant women attending public clinics who test positive for HIV. Data is only available per district, and it is difficult to extrapolate this data for the entire population. The epidemic in the province is expected to reach a peak by 2010, at about 16% of the population, before the number of new infections even out (ECAC, 2004). The Department of Health has embarked on a range of prevention, care and treatment interventions. In Cacadu district, 4 hospitals are accredited for dispensing anti-retroviral treatment, treating a total of 1005 patients in January However, there is still a need to accredit additional points and increase the number of people on treatment. Most public clinics offer Voluntary Counselling and Testing (VCT) and in % of those attending public clinics opted for VCT (men and women). Only 30.1% of males who visited clinics opted for VCT. However this figure does not tell us about the percentage of the total population who have undergone VCT, the quality of the services, or whether patients came back to get their results. Access to clinics and health facilities is a challenge, as reported elsewhere in this profile. A vacancy rate of 43% in the health department is impacting negatively on access to as well as standard of services. A study of responses to HIV and AIDS in the Eastern Cape revealed pockets of high prevalence and risk in seasonal agriculture in the Cacadu district. Epidemiological risk profiles in the commercial farming sector differ greatly according to the type of production, geographic factors, and the quantity and type of employment available. HIV was particularly identified to be a problem on pineapple farms, citrus and deciduous fruit farms, particularly due to the seasonal and migratory nature of the industry. The responses of the industry are limited, and few NGOs work in the area. Staff from DoH public health clinics do on occasion address farm workers on request and they have also undertaken VCT on farms when requested to do so. It appears that this service is available mainly on request, rather than as an active outreach service (ECAC, 2005). Access to medical services for farm workers 35

36 is problematic in general. Support from local government and NGOs will be necessary to offer HIV and AIDS and primary health care services to these populations, and should be integrated into the IDP HIV and AIDS program. With agriculture being one of the major contributors to GVA and employment, there is an urgent need to scale up HIV and AIDS prevention, treatment, care and support services in these areas. industry, expected to contribute significantly to growth in the next few years, and a receiver of massive state investment, does not have any coordinated initiatives to response to the impact of the pandemic. The South African Business Coalition on HIV and AIDS (SABCOHA) is opening its provincial office in Port Elizabeth and can play a major role in supporting the private sector to respond to HIV and AIDS. In addition to the human suffering caused by HIV and AIDS, the cost of employee benefits, medical aid, absenteeism, labour turnover, workplace disruption etc place a burden on private sector as well as public sector employers. However, studies carried out in the private sector show that companies do not track these indicators and hence it is difficult to estimate the economic impact of HIV and AIDS (Bowler, 2002). Only some large, often multinational, companies in the Eastern Cape track this kind of data and generally have more resources available to respond to HIV and AIDS. Industries like the construction NGOs and other community organisations contribute tremendously to the response to HIV and AIDS. However funding of these organisations is a challenge, and often the lack of funding leads organisations to move from one area to the other, without acquiring the necessary depth and focus of their work. There is a need for the HIV and AIDS plan in the IDP to integrate the entire multisectoral response to HIV and AIDS, and not only focus on public sector service and primary health care delivery. 36

37 DEVELOPING MUNICIPAL CAPACITY AND CO-OPERATION ALIGNMENT AND COOPERATION Cacadu district municipality together with its nine local municipalities suffered a drastic financial decline due to the establishment of the Nelson Mandela Bay Metro. However that has come and gone. A concerted effort towards the stimulation of economic development and employment-creation are vital. An immediate implementation of the Economic Growth and Development Strategy will kick-start a process of maximising the benefits of the natural resource base (including national, provincial and municipal protected areas/nature reserves and privately-owned game farms) of the area for the benefit of local communities as well as exploring tourist development and other economic opportunities. GAPS IN THE IDP Vision is not based on five-year service delivery targets Development strategies not linked to provincial and national targets Very poor sector department involvement and sector alignment coordination Environmental/bio-diversity/conservation issues poorly managed Non completion of all sector plan and cross-cutting programmes SUPPORT BY DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT (DPLG) AND GTZ The DPLG & the GTZ have a national program known as Strengthening Local Government Programme (SLGP). Within the SLGP is a newly introduced stream that focuses on ensuring that Intergovernmental Relations (IGR) serve to strengthen planning alignment within the IDP process. The overall purpose of the program is to ensure that Municipal development is supported within and across all spheres and sectors of government, whilst reflecting balanced stakeholder inclusivity. Cacadu is one of the pilots to benefit through this programme. This programme is led by GTZ and entails identifying and conceptualizing appropriate modalities that would catalyze the effective ownership of integrated development by all spheres of government. This is sought through the alignment of IDP with the entire public planning system. Central to this component is also the need to test and conceptualize implementation protocols (regulated in the IGR Framework Act 2005) and multi-stakeholder development agreements as managerial instruments that would trigger a culture of integrated planning and service delivery across spheres of government as well as between government and civil society and the private sector. GTZ s areas of delivery are: 1. Strengthening Inter-Governmental Relations; 2. Strengthening stakeholder analysis and management; and 3. Facilitating alignment with other spheres of government and with the NSDP in particular. 37

38 SUPPORT TO LOCAL MUNICIPALITIES Cacadu DM has resolved on the following KPAs to support local municipalities: Review Formulation and Promulgation of by-laws Human Resource management IT Disaster Recovery Plans Establishment of Internal audit services Shared audit committees Training on the roll out of MFMA IDP Support Services and do-it-yourself (DIY) manual Local Economic Development (LED) manual LED strategy for the District Management Area Job Evaluation Programme / Project Management Unit (PMU) Support Detailed prognosis of local municipalities MUNICIPAL COOPERATION Integration and alignment with provincial and national spheres of government has been continuously highlighted as a challenge for Cacadu DM and its local municipalities. The Provincial IDP hearings that took place early in the year are seen as a start of a process that will improve and enhance alignment and integration of government programmes, projects and budgets. The following are key areas for IDP: Adjustment of powers and functions Municipal Health Services responsibility of the DMs DM responsible for Disaster Management Decision taken by MINMEC to transfer Primary Health Care to Province, however the implementation of this decision could take time Adjustment of Fire fighting from LMs to DM LMs however requested to continue with service whilst representations being made to MEC: DHLG&TA LMs are Water Service Authorities DM to take full responsibility of the Municipal Planning function in Ikwezi LM 38

39 Good governance Audit Committees and Internal Audit Ward Committees training completed in seven local municipalities Steering Committees training in 2 LMs (and the DMA) Train the Trainer programme Good Governance Survey District-wide forums to engage with local municipalities District Mayors Forum Municipal Managers Forum CFO Forum IDP Forum LED Forum District Wide Infrastructure Forum Tourism Forum District Health Forum District Aids Council Disaster Management Forum Communicators Forum 39

40 REGIONAL LINKAGES Critical to the growth and development fortunes of the Cacadu District is the development of linkages with strategic partners in the region. The CDM has begun to forge such linkages with two formal agreements already entered into with the NMBMM and the Winelands District Municipality. The content of these agreement s are briefly outlined below. AGREEMENT WITH THE CAPE WINELANDS DM In the agreement the two District Municipalities committed themselves to: the exchange experience and knowledge on various aspects of local government transformation, management (including performance management) and administration, the development of co-operation on the levels of economic development and tourism in terms of developing joint local economic and tourism development strategies, sharing resources and infrastructure where possible and to develop small and medium sized business linkages between the two districts The two municipalities endeavour to ensure mutual benefit in whatever international relations and linkages are forged Agree to co-ordinate the agreement through a Joint Coordinating Committee (JCM) which will meet bi annually and be made up of Executive Mayors, Mayoral Committee members, Municipal Managers and any other relevant representatives. The JCM will mandate the municipal managers to establish a joint implementation committees (JIC) AGREEMENT WITH THE NMBMM The two Municipalities committed themselves to: The establishment of an inter municipality forum with the purpose of exchanging experiences and knowledge on the different aspects of local government administration; to cooperate on economic development and tourism in order to encourage co-operation between the business communities, especially medium and small-size business, of both local government entities; the promotion and support of mutually beneficial infrastructural development; and any other strategic matters which affect the respective municipalities. The two municipalities further agree that they will seek to arrange for their mutual benefit in whatever international relations each may have or intends to establish with foreign local government institutions or otherwise. In giving effect to the spirit and purpose of this agreement, the municipalities shall seek to develop joint strategies on matters of local economic development, tourism and infrastructure development by means of sharing ideas and experiences and exposing each to the other s resources and infrastructure. 40

41 Co-ordination of the activities and agreements emanating from the implementation of this agreement shall be effected by means of a Joint Co-ordination Committee (JCC) which shall meet twice a year with delegations from each municipality respectively, comprising the Executive Mayors(as co-ordinators), Mayoral Committee members and the Municipal Managers who may be accompanied by a mutually agreed number of officials of both the municipalities. What now remains is the implementation of these agreements in terms of specific projects and initiatives between the partners. 41

42 POVERTY PROFILE HUMAN DEVELOPMENT INDEX (HDI) PERSONS LIVING IN POVERTY The HDI is a measure of development which includes life expectancy, literacy and income. It thus provides a composite index of development presenting these three dimensions in one indicator. Overall the HDI is on average higher for the local municipal areas of Cacadu than the provincial averages. The only exceptions are Ndlambe and Sunday s River Valley. HUMAN DEVELOPMENT INDEX FOR CACADU DM AND LMS Eastern Cape Cacadu The number of people in poverty is an indicator of household members who reside in households whose total income falls below a particular level. The level used here is based on Global Insight data which use the Bureau for Market Research (BMR) Minimum Living Level (MLL) which ranges from R893 for a single person household to R3314 for an eight person household. Based on this measure the levels of poverty (an economic measure of household income) in Cacadu have actually increased significantly between Yet the proportion of people in poverty across the district is lower than the provincial average with only Ndlambe recording the same value as the provincial average. Baviaans Blue Crane Route PERCENTAGE OF PEOPLE IN POVERTY Camdeboo Ikwezi Kouga Kou-Kamma Makana Ndlambe Sunday s River Valley Source: Global Insight, 2006 % % Eastern Cape Cacadu Baviaans Blue Crane Route Camdeboo Ikwezi Kouga Kou-Kamma Makana Ndlambe Sunday s River Valley Source: Global Insight,

43 SOCIAL GRANT DEPENDENCY Households where at least one member accesses a social grant in Cacadu is on a par with the provincial average of 64% in Camdeboo and higher than this in Ikwezi (75%), Sunday s River (76%) and Baviaans (78%). The remaining areas are lower than the provincial norm (between 47% in Kouga and 58% in Ndlambe). Whether Household member is receiving Social Grant Proportion of Household Members who receive a Social Grant Yes No % % % Eastern Cape Cacadu Baviaans Blue Crane Route Camdeboo EC DMA Ikwezi Kouga Kou-Kamma Makana Ndlambe Sunday s River Valley Source: RSS,

44 CONCLUSIONS The Cacadu district faces a unique set of growth and development challenges shaped by its geo physical features and history. It is characterized largely by urban (asset poor) communities residing in generally small towns surrounded by private farmlands. The district is often characterized as better off than those to the west of the Fish River. The levels of infrastructure backlogs are indeed generally lower than the infrastructure poor areas to the west of the province due to infrastructure investments historically secured through being linked to NMB. While significant numbers of local residents are infrastructure poor however, the most severe expression of poverty in Cacadu is associated with the limited access to and opportunities for livelihoods and jobs. Some of the key features of the context for growth and development in Cacadu include the following: A large and robust agricultural sector that is growing but not creating jobs A public sector that is probably reaching the limits of its direct job creation capacity A growing construction industry (& private services sectors) linked to tourism and coastal lifestyles and public infrastructure investment. The absence of major public/private investments and projects The benefits of existing growth accruing to existing fixed assetholders (farmers and tourism establishments), and income distribution remaining highly unequal. A growing underclass of unskilled shackdwellers. No clear growth trajectory, despite an abundance of natural resources and locational advantages What then could be possible components of an accelerated future growth path that is equitable and jobs creating? Land redistribution must be accelerated in the District. DLA must complete an area-based redistribution plan as soon as possible, which promotes viable and intensive smallholder schemes where possible. Specifically, the DM and DWAF should give higher priority to smallholder schemes made possible by the augmentation of the!gariep-fish River water transfer infrastructure. Investment promotion efforts need to be intensified (possibly in association with CDC and other development partners) particularly around mining (uranium, cement and ceramics) and agro-processing. Strengthened local responses for tourism property developments and other enterprise opportunities Skilled inward migration led by lifestyles/entrepreneurial opportunities Shack eradication in line with national targets, combined with municipal/provincial services improvements. 44

45 This GDS summit is a starting point for setting out a minimum agenda for growth and development in the District. The Summit is potentially very important for setting in motion processes to improve municipal planning and management capacities, particularly with respect to co-operation with other arms of Government, and with Business. The private sector, businesssupport agencies and the municipalities need to work together to develop detailed priority sector action plans. The outcome of the Summit should be the development of a Framework Agreement that outlines institutional roles and responsibilities to accelerate growth and development in the District. This Agreement should also suggest the mechanisms and processes for monitoring progress in the decisions reached and the governance framework for ongoing dialogue and feedback among the social partners. The district GDS presents a unique opportunity for constructing partnerships and harnessing the collective energies and contributions of a range of actors and role players with a view to enhancing accelerated and shared growth. 45

46 ACRONYMS AsgiSA ASSA ARC BEP BMR CDC CDM DHLGTA DHP DIY DM DMA DOH DPLG DPW DWAF ECAC ECD ECSECC EGDS EIA EPWP FET GDS GGP GVA HDI Accelerated and Shared Growth Initiative Actuarial Society of South Africa Agricultural Research Council Backlog Eradication Programme Bureau for Market Research Coega Development Corporation Cacadu District Municipality Department of Housing Local Government & Traditional Affairs District Health Plan Do It Yourself District Municipality District Management Area Department of Health Department of Provincial and Local Government Department of Public Works Department of Water and Forestry Eastern Cape Aids Council Early childhood development Eastern Cape Socio-economic Council Economic Growth and Development Strategy Environmental Impact Assessment Expanded Public Works Programme Further Education and Training Growth and Development Summit Gross Geographic Product Gross Value Added Human Development Index HH Household HR Human Resources IDP Integrated Development Plan IGR Inter Governmental Relations JCM Joint Co-ordinating Committee JIC Joint Implementation Committee KPA s Key Performance Areas LED Local Economic Development LM Local Municipality MEC Member of the Executive Committee MFMA Municipal Finance Management Act MIG Municipal Infrastructure Grant MLL Minimum Living Level NMBMM Nelson Mandela Bay Metropolitan Municipality NSDP National Spatial Development Perspective PAC Performing Arts Council PGDP Provincial Growth and Development Plan PHC Primary Health Care PMU Project Management Unit PPP Public-Private partnership RIDS Regional Industrial Development Strategy RSS Rapid Services Survey (2006) SABC South African Broadcasting Corporation SLDP Strengthening Local Government Programme SMME Small, medium and micro enterprises SOE State-owned enterprises SSA Statistics South Africa VCT Voluntary counselling and testing 46

47

48 Eastern Cape Socio-Economic Consultative Council 1st Floor, Global Life Bldng, Cnr Phalo Ave & Circular Drive, Bhisho Tel.: +27 (0) Fax: +27 (0) Internet: 2boyz[J5821