local economic development strategy 2011 · study as well as to present opportunities once...
TRANSCRIPT
HANTAM LOCAL MUNICIPALITY
Local Economic Development
Strategy 2011
Urban-Econ Cape Town Suite 20-102F
Building 20
The Waverley Business Park
Wyecroft Road
Mowbray
7700
Tel: (021) 447 3449
Fax: (021) 447 3459
Email: [email protected]
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
i
Contents SECTION 1: INTRODUCTION .......................................................................................................... 1
1.1. Introduction ................................................................................................................................. 1
1.2. Goal & Objectives ........................................................................................................................ 1
1.3. Methodology ............................................................................................................................... 2
1.4. Concept of Local Economic Development ................................................................................... 2
1.5. Location of the Study Area .......................................................................................................... 3
SECTION 2: POLICY REVIEW .......................................................................................................... 6
2.1. Introduction ................................................................................................................................. 6
2.2. Policy Objectives .......................................................................................................................... 8
2.3. Policy Alignment ........................................................................................................................ 11
SECTION 3: SOCIO-ECONOMIC PROFILE ....................................................................................... 13
3.1. Demography .............................................................................................................................. 14
3.1.1. Population Size and Distribution ............................................................................................ 14
3.1.2. Age and Gender Composition................................................................................................. 16
3.1.3. Population Growth Trend ....................................................................................................... 17
3.1.4. Household Income Structure .................................................................................................. 17
3.1.5. Education ................................................................................................................................ 20
3.2. Infrastructure ............................................................................................................................. 21
3.2.1. Accessibility ............................................................................................................................ 21
3.2.2. Mode of Transport .................................................................................................................. 24
3.2.3. Access to Services ................................................................................................................... 25
3.3. Labour and Employment ........................................................................................................... 26
3.4. Economic Structure and Performance ...................................................................................... 31
3.4.1. Economic Production .............................................................................................................. 31
3.4.2. Sectoral Composition.............................................................................................................. 33
3.4.3. Comparative Advantage ......................................................................................................... 34
3.5. Summary and Conclusion .......................................................................................................... 35
SECTION 4: OPPORTUNITY ANALYSIS .......................................................................................... 38
4.1. Introduction ............................................................................................................................... 38
4.2. Integration of LED ...................................................................................................................... 38
4.3. SWOT Analysis ........................................................................................................................... 40
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
ii
4.4. Potential Opportunity Analysis .................................................................................................. 42
4.5. Criteria for Determining Development Potential ...................................................................... 42
4.6. Sector Opportunities ................................................................................................................. 43
4.7. Agriculture ................................................................................................................................. 44
4.8. Mining ........................................................................................................................................ 47
4.9. Electricity, gas and water ........................................................................................................... 50
4.10. Community Services ................................................................................................................ 56
4.11. Tourism .................................................................................................................................... 59
4.12. Other Opportunities ................................................................................................................ 63
4.13. Addressing LED Constraints ..................................................................................................... 63
SECTION 5: INSTITUTIONAL FRAMEWORK ................................................................................... 66
5.1. Introduction ............................................................................................................................... 66
5.2. Status of LED Structures ............................................................................................................ 66
5.2.1. Namakwa District ................................................................................................................... 66
5.2.2. Hantam Local Municipality ..................................................................................................... 67
5.3. Support Structures ..................................................................................................................... 68
5.3.1. The Municipal LED Forum ....................................................................................................... 68
5.3.2. Namakwa District Municipality .............................................................................................. 69
5.3.3. Other Dedicated Vehicles ....................................................................................................... 70
5.4. Doing Business in Hantam LM ................................................................................................... 70
5.5. Conclusion ................................................................................................................................. 72
SECTION 6: VISION, OBJECTIVES & DRIVERS ................................................................................ 73
6.1. Introduction ............................................................................................................................... 73
6.2. Vision, Objectives and Goals ...................................................................................................... 73
6.3. Key Drivers ................................................................................................................................. 75
6.4. Conclusion ................................................................................................................................. 77
SECTION 7: ACTION PLAN ........................................................................................................... 78
7.1. Introduction ............................................................................................................................... 78
7.2. Implementation Plan ................................................................................................................. 78
7.3. Monitoring and Evaluation ........................................................................................................ 87
REFERENCES .............................................................................................................................. 89
ANNEXURE A: PUBLIC PARTICIPATION ........................................................................................ 92
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
iii
ANNEXURE B: POLICY REVIEW .................................................................................................... 95
ANNEXURE C: MINING INFORMATION ...................................................................................... 116
ANNEXURE D: ROLES AND RESPONSIBILITIES ............................................................................ 119
ANNEXURE E: SUPPORT ORGANISATION INFORMATION ........................................................... 123
List of Figures Figure 1 - Policy Integration ....................................................................................................... 7
Figure 2 – Horizontal and Vertical Policy Alignment ................................................................. 8
Figure 3 – Household Size, 2007 .............................................................................................. 15
Figure 4 - Age Profile, 2010 ...................................................................................................... 16
Figure 5 - Population Growth Rates, 1996 - 2010 ................................................................... 17
Figure 6 – Average Monthly Household Income Levels, 2007 ................................................ 19
Figure 7 - Mode of Transport, 2001 ......................................................................................... 24
Figure 8 - Employment Status, 2009 ........................................................................................ 27
Figure 9 – Skills Levels, 2009 .................................................................................................... 29
Figure 10 - GDP Growth Rates, 1996 - 2009 ............................................................................ 33
Figure 11 - Virtuous Circle of Economic Growth...................................................................... 39
Figure 12 - Agricultural Sector Growth Performance, 1995 to 2009 ....................................... 45
Figure 13 - Mining Sector Growth Performance, 1995 to 2009 .............................................. 48
Figure 14 - Electricity, Gas and Water Sector Growth Performance ....................................... 50
Figure 15 - Namakwa District Organogram ............................................................................. 67
Figure 16 – Hantam Municipal Organogram ........................................................................... 68
List of Tables Table 1 - Policy Alignment........................................................................................................ 12
Table 2 - Population Size and Distribution, 2010 ..................................................................... 15
Table 3 - Hantam LM Population Distribution on Main-place Level, 2001 ............................. 15
Table 4 - Average Monthly Household Income Categories, 2007 ........................................... 18
Table 5 - Grants, 2007 .............................................................................................................. 20
Table 6 - Adult Education Levels, 2007 .................................................................................... 20
Table 7 - Adult Education Levels, Main Places, 2001 ............................................................... 21
Table 8 – Household Service Levels, 2010 ............................................................................... 25
Table 9 - Household Service Levels on Community Level, 2001.............................................. 26
Table 10 – Employment Indicators, 2009 ................................................................................ 27
Table 11 – Main Place Employment Indicators, 2001 and 2009 .......................................... 28
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
iv
Table 12 - Occupation Profile, 2007......................................................................................... 29
Table 13 - Sector of Employment, 2009 .................................................................................. 30
Table 14 – Main Place Sector of Employment, 2001 and 2009 ............................................... 31
Table 15 – Economic Production of the Namakwa District (GDP at current prices), 2009 ..... 32
Table 16 - GDP Contribution, 2009 .......................................................................................... 33
Table 17 - Locational Quotient Interpretation ........................................................................ 34
Table 18 - Comparative Advantage, 2009................................................................................ 35
Table 19 – Sector Performance Indicators .............................................................................. 37
Table 20 - SWOT Analysis ......................................................................................................... 41
Table 21 – Policy and Legislation Sector Focus Areas.............................................................. 43
Table 22 - Social Infrastructure (Hantam LM) ......................................................................... 57
Table 23 - Drivers identified for the Hantam Local Municipality............................................. 75
Table 24 – Implementation Plan .............................................................................................. 78
Table 27 - Operating Mines and Quarries and Mineral Processing Plants ............................ 116
Table 28 - Mineral Deposits in Hantam LM ........................................................................... 118
List of Maps Map 1 - Location of the Namakwa District Municipality ........................................................... 4
Map 2 - Hantam Local Municipality ........................................................................................... 5
Map 3 – New Municipal Demarcation as released July 2011 .................................................. 14
Map 4 – Infrastructure of the Hantam LM .............................................................................. 23
Map 5 – Perennial Rivers ......................................................................................................... 52
Map 6 - Solar Power Potential (SA).......................................................................................... 54
Map 7 - Wind Potential (SA) .................................................................................................... 55
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
1
SECTION 1: INTRODUCTION
1.1. Introduction
Urban-Econ was contracted by the Namakwa District Municipality to prepare a credible Local
Economic Development (LED) strategy for the Hantam Municipality. The purpose of this document
is to collate all economic information and investigate the coordinated and integration options and
opportunities available to broaden the economic base of the Hantam Local Municipality.
The implementation of the strategy needs to facilitate the creation of employment opportunities,
investment and business development and the resultant positive spin-off effects throughout the
economy.
1.2. Goal & Objectives
The goal of this document is to assist and support the Hantam Local Municipality within the
Namakwa District Municipality to generate a LED Strategy to ensure incorporation of the most
recent development changes in the local economy as well as the alignment with Provincial and
National initiatives and to develop implementation plans. The LED study forms part of the IDP
process and is one of the milestones toward achieving local economic development within the
Hantam LM area. The purpose of the LED is for Hantam Local Municipality to create the enabling
environment to allow economic development to occur.
The following actions were undertaken to prepare the LED:
Updated socio-economic and demographic information for the Hantam Local Municipality
through the use of secondary information (existing data bases)
To take Undertake an in-depth analysis of the real (but latent) development opportunities in the
key economic sectors in the study area
Capacity building of local LED officials
Identify practical sectoral programmes that could be used as basis for pro-active economic
development initiatives
Undertake focused analysis of key sectors taking cognizance of the first and second economy
constraints and opportunities
To promote an inclusive, participatory process that integrates strategic planning, community
participation, sustainability and good decision making with local economic development
Emphasise local job creation, alleviation of poverty and redistribution of opportunities and
wealth
Focus explicitly on opportunities for SMME development in all economic sectors
Promote the creation of an enabling environment conducive for economic development by
addressing human resource development and an institutional framework as key components of
programmes and projects
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
2
Ensure that the development opportunities have a definite geographic and spatial orientation to
provide guidance in terms of sustainable future spatial development planning
Ensure that the strategy aligns with and add value to the existing policies, strategies and private
sector initiatives
To provide a strategic framework for implementation of LED initiatives
Develop viable LED projects as per the revised strategy (carry out individual project development
projections)
1.3. Methodology
In undertaking the project, the following steps were undertaken:
1. A review of existing policy documents as well as other documents. As part of this step role
players and stakeholders were also identified.
2. Workshops with the Hantam Local Municipality was undertaken to present the proposed
study as well as to present opportunities once identified. Prior to these workshops
interviews with stakeholder was also undertaken. Details of these meetings are provided in
Annexure A.
3. Develop a socio-economic and economic profile for the study area as well as a review of the
existing institutional capacity.
4. Undertake a sectoral potential review to identify economic opportunities and constraints in
the area as well as to identify projects.
5. Package these project and opportunities around a vision for the area with focussed
programmes.
6. Compile an Implementation plan for Hantam Local Municipality including an Action Plan.
1.4. Concept of Local Economic Development
LED is an approach to sustainable economic development that encourages residents of local
communities to work together to stimulate local economic activity that will result in an
improvement in the quality of life for all in the local community.
LED aims to increase standards of living create more and better jobs, advance skills and build
sustained development for the future. LED is not a wish list but rather a practical understanding of
what the local area does well and what it has to offer, what its weaknesses and gaps lie as well as
where threats and opportunities exist considering the wants and needs of the local area.
The characteristics of an LED are as follows:
Attraction of both outward and inward investment
Investment in both hard and soft infrastructure
Making the business environment more conducive to business
A participatory approach to LED
Public Private Partnerships (PPPs)
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
3
A move towards community based LED
The following aspects need to be considered in this regard:
1. Poverty alleviation needs to be addressed as an integral part of the local economic development
strategy, due to high levels of unemployment and poverty.
2. Economic development programmes and project implementation needs to be consolidated and
integrated with a strategic developmental approach aimed at sustainable local economic
development.
3. Various research documents, policies and strategies for the study area have been compiled and
as such data collation should be aimed at adding value and to use the existing knowledge base
to focus the work, i.e. a vital issue approach will be followed.
4. The local community needs to be mobilised and included in an informative and participative
parallel process to the analysis and strategy formulation.
5. Cognisance needs to be taken of strategic developmental guidelines as provided in Provincial
and National strategic directives.
6. The economic enabling environment needs specific intervention to ensure that adequate and
appropriate services and infrastructure planning and provision can be complementary to new
investment.
7. The involvement and participation of stakeholders need to be encouraged through participative
stakeholder mobilisation techniques and innovative LED approaches.
8. Skills development and capacity building are crucial human resource development interventions
for improved service delivery.
9. The focus of the LED support will be to facilitate the establishment of channels and mechanisms
to ensure that economic development reaches the true beneficiaries.
10. The internal co-operation and coherence for increased external competitiveness as well as to
ensure economic activities in various parts of the area complement each other need to be
facilitated.
1.5. Location of the Study Area
The Namakwa District Municipality is located within the Northern Cape Province. It shares
boundaries with Namibia (to the North, along the Orange River), the Siyanda DM (to the North East),
the Pixley ka Seme DM (to the East) and the Western Cape Province to the South. The Atlantic Ocean
forms the Western Boundary of the District. Map 1 below indicates all the Local Municipalities
within the Namakwa District Municipality, namely:
Richtersveld Local Municipality (to the North-West along the Coast, on the border of Namibia)
Nama Khoi Local Municipality (to the North-West along the Coast, on the border of Namibia)
Khâi-Ma Local Municipality (to the North-East, on the border of Namibia)
Karoo Hoogland Local Municipality (to the South-East, on the border of the Western Cape
Province)
Kamiesberg Local Municipality (to the South-West along the Coast, on the border of the Western
Cape Province)
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
4
Hantam Local Municipality (to the South-West, on the border of the Western Cape Province)
Map 1 - Location of the Namakwa District Municipality
(Source: GIS Mapping 2011)
The Map 2 below indicates the Hantam Local Municipal area.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
5
Map 2 - Hantam Local Municipality
(Source: GIS Mapping 2011)
The towns in Hantam LM include:
Nieuwoudtville
Calvinia
Loeriesfontein
Brandvlei
Middelpos
Swartkop
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
6
SECTION 2: POLICY REVIEW
2.1. Introduction
In establishing an appropriate LED framework for the Hantam Local Municipality, it is essential to
make reference to relevant policies at a local, district, provincial and national level. By reviewing the
relevant policies, one can contextualize the environment in which the LED framework will exist and
more importantly, provide guidelines and targets that will direct the LED framework in an
appropriate manner. This will also ensure that the LED policy which is developed aligns with
National, Provincial, District and Local initiatives. This policy analysis will be completed for national,
provincial, district and local policies and legislation. More specifically the following policies were be
reviewed:
National Level
1. The Constitution (RSA 1996)
2. The White Paper on Local Government (1998)
3. National Spatial Development Perspective (NSDP 2006)
4. The New Growth Path Plan (NGP 2010)
5. Industrial Policy Action Plan (IPAP2 2010)
6. Comprehensive Rural Development Programme (CRDP 2009)
7. The Municipal Systems Act (2000) and Municipal Structures Act (1998)
8. Local Government: Municipal Finance Management Act (MFMA 2003)
9. Joint Initiative on Priority Skills Acquisition (JIPSA 2006)
10. The Broad-Based Black Economic Empowerment Act (2004)
11. The National Local Economic Development Framework (2006 – 2011)
12. Integrated Sustainable Rural Development Strategy (2000)
13. National Industrial Policy Framework (NIPF 2007)
14. Regional Industrial Development Strategy (RIDS 2006)
15. National Strategy for the Development and Promotion of Small Businesses in South Africa (1995)
16. Tourism Growth Strategy (TGS 2008 - 2010)
17. Local Government Turnaround Strategy (LGTAS 2009)
18. New Economic Growth Path Plan (2010)
Provincial Level
1. Northern Cape Provincial Growth and Development Strategy (NCPGDS 2005)
2. Northern Cape Provincial Spatial Development Strategy (NCSDS)
3. Northern Cape Local Economic Development Strategy (NC LED 2009)
4. The Northern Cape Municipal LED Framework (2010)
5. Northern Cape Agriculture & Agro-Processing Sector Development Strategy (AAPSDS)
6. Northern Cape Mining and Mineral Sector Strategy
7. Northern Cape Manufacturing Strategy
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
7
8. White Paper on the Development and Promotion of Tourism in the Northern Cape (2005)
District Level
1. Namakwa District Municipality Integrated Development Plan (IDP 2006 – 2011)
2. Namakwa District Municipality Local Economic Development Strategy (LED 2009)
3. Namakwa District Biodiversity Sector Plan (2008)
Local Level
1. Hantam Local Municipality Integrated Development Plan (IDP 2010)
2. Hantam Local Municipality Rural Spatial Development Framework/Land Development Plan
(2010)
The aim of this section is to ensure that the Hantam LED Strategy aligns with the goals and objectives
as outlined within the national, provincial, district and local polices. It is important to note that this
section will mainly focus on the alignment of the policies whereas Annexure B will focus on the
explanation and outlining of the specific goals and objectives for each of the identified policies.
These policies are all embedded within each other and their goals and objectives are all aligned with
each other, as can be seen in Figure 1 below.
Figure 1 - Policy Integration
Figure above shows that national policies provide the framework, guidance and approach which
need to be implemented and adapted at national, provincial, district and local level. Further it is also
important to note that national policies need to feed into provincial, district and local policies. From
District & Local Frameworks
Provincial Frameworks
National Frameworks
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
8
a provincial perspective it is important that the province provides the framework, guidance and
approach for policies which then need to be fed into district and local policies.
It is important to understand how the policy environment aligned from a National, Provincial, District
and Local level (refer to Figure 1 above). Yet it is also important to understand that there is also a
vertical and horizontal alignment of policies which indicated that the various policies need to feed
into one another in order to achieve a coordinated goal. Figure 2 below illustrates the horizontal and
vertical alignment of the policy environment.
Figure 2 – Horizontal and Vertical Policy Alignment
Figure 2 illustrates that alignment of policy includes both horizontal alignment, i.e. alignment
between the different policies and strategies of an area, as well as vertical alignment, between the
different tiers of government.
Therefore that National government and Province provides the overarching goals and objectives
which need to be achieved and be adapted to the district environment as well as a more localised
approach for the local municipalities.
2.2. Policy Objectives
As indicated Annexure B provides a detailed overview of the policies listed above. As part of this
sub-section only strategic policy objectives will be highlighted in order to provide some guidelines
for economic development as shown in the various policy documents.
From a national level the following policy objectives are important within the economic
development environment:
Sub Policies and strategies, e.g. SMME development strategies and sector specific strategies,
such as tourism strategies, agricultural support programmes and funds and so forth.
Hantam LM
IDP, SDF etc.
Namakwa DM
IDP, LED etc.
Northern Cape
LED, SDF etc.
Northern Cape
PGDS
National Frameworks, such as New Economic Growth Path Plan, IPAP2 and The Comprehensive
Rural Development Plan Departmental Policies and Acts and specifies government mandates,
such as LED.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
9
1. The New Growth Path Plan (NGP, 2010) highlights job creation (number and quality of jobs
created), growth (the rate, labour intensity and composition of economic growth), equity (lower
income inequality and poverty) and environmental outcomes as the main indicators of success.
With job creation as the overriding theme for the NGP, the Framework identifies the following
job drivers:
a. Public investment in infrastructure ;
b. Targeting more labour-absorbing activities across the main economic sectors;
c. Taking advantage of new opportunities in the knowledge and green economies;
d. Leveraging social capital in the social economy and the public services; and
e. Fostering rural development and regional integration.
- In this regard, as a first step, the NGP prioritises efforts to support employment creation in the
following key sectors:
a. Infrastructure, through the massive expansion of transport, energy, water, communications
capacity and housing, underpinned by a strong focus on domestic industry to supply the
components for the build-programmes
b. The agricultural value chain, with a focus on expanding farm-output and employment and
increasing the agro-processing sector
c. The mining value chain, with a particular emphasis on mineral beneficiation as well as on
increasing the rate of minerals extraction
d. The green economy, with programmes in green energy, component manufacture and
services
e. Manufacturing sectors in IPAP2 and Tourism and certain high-level services.
2. The National Spatial Development Perspective (NSDP, 2006) is based on four principles,
namely:
a. Rapid economic growth that is sustained and inclusive is identified as a pre-requisite for the
achievement of other policy objectives, amongst which poverty alleviation is key
b. Efforts to address past and current social inequalities should focus on people not places
c. Beyond constitutional obligations identified in Principle above, Government spending on
fixed investment, should be focused on localities of economic growth and/or economic
potential
d. Government has a constitutional obligation to provide basic services to all citizens (e.g.
water, energy, health and educational facilities) wherever they reside
3. The Industrial Policy Action Plan (IPAP2, 2010) recommends a sector focussed approach
identifying key sectors with potential to be developed. The sectors identified in the IPAP2
document comprise the following:
a. green energy saving industries especially wind biomass, solar, thermal and green waste
management;
b. plastics, pharmaceuticals, chemicals and packaging;
c. textiles and leather;
d. fuels and biofuels; and
e. agro-processing, food processing and organic food processing.
4. Comprehensive Rural Development Programme (CRDP, 2009) was developed by the
Department of Rural Development and Land Reform to tackle issues such as underdevelopment,
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
10
hunger, poverty, joblessness, lack of basic services and other social ills which have become
synonymous with rural areas and redistributing 30% of the country’s agricultural land. The
Department has implemented the 21 CRDP sites throughout South Africa and aims to roll this
out to 160 sites by the year 2014. There are currently no CRDP sites within the Hantam LM.
The following provincial policy objectives are important within the economic development
environment:
1. The Northern Cape Provincial Growth and Development Strategy’s main objectives for
development planning in the Province are:
a. Promoting the growth, diversification and transformation of the provincial economy
b. Poverty reduction through social development
c. Developing requisite levels of human and social capital
d. Improving the efficiency and effectiveness of governance and other development
institutions
e. Enhancing infrastructure for economic growth and social development
2. Northern Cape Local Economic Development Strategy (NC LED 2009) investigated the options
and opportunities available to broaden the local economic base of the Province in order to
promote the creation of employment opportunities and the resultant spin-off effects throughout
the local economy. Areas of opportunity include:
a. Livestock products
b. Game farming
c. Horticulture
d. Mariculture
e. Ago-related industries
f. Tourism
g. Manganese and iron Ore
h. Beneficiation of minerals
i. Renewable energy
From a district level, the following policy objectives are important within the economic
development environment:
1. Namakwa District Municipality Integrated Development Plan (IDP 2006 – 2011) key performance
areas:
a. Municipal Transformation and Organisational Development
b. Basic Service Delivery and Infrastructure
c. Local Economic Development
d. Municipal Financial Viability and Management
e. Good Governance and Public Participation
2. The Namakwa District Municipality Local Economic Development Strategy (LED 2009) identifies
various opportunities (projects and programmes) namely:
a. Institutional Development for Investor Readiness
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
11
b. SMME Development
c. Agricultural Sector Development
d. Mining Sector Development (including the beneficiation projects, One-Stop Mining Centre
and the implementation of new technologies.
e. Industrial Development
f. Renewable Energy Development (including wind, wave, solar, and biogas energy)
g. Space Research and Development Spin-offs
h. Tourism Development
i. Quality of Life Improvement
The following local policy objectives are important within the economic development
environment:
1. Hantam Local Municipality Integrated Development Plan (IDP 2010) Objectives:
a. Eradicating infrastructure backlogs with specific reference to housing and water provision.
b. Upgrading of economic infrastructure
c. Creation of new infrastructure
d. Creation of sustainable jobs to assist with poverty alleviation
e. Improvement of the social services environment of the community
In terms of spatial development the Hantam LM has the following objectives:
1. The objectives of the Hantam Local Municipality Rural Spatial Development Framework/Land
Development Plan (2010) are as follows:
a. Exploit economic opportunities
b. Create sustainable urban and rural settlements
c. Protect the natural and built environment
2.3. Policy Alignment
Within each level of government there are also sub-policies and strategies, for example, SMME
development strategies, sector-specific strategies, support programmes, and funding programmes.
National policies provide the framework, guidance and approach which need to be implemented and
adapted at national, provincial, district and local level. Further it is also important to note that
national policies need to feed into provincial, district and local policies. From a provincial
perspective it is important that the province provides the framework, guidance and approach for
policies which then need to be fed into district and local policies. (It is important to note that in
order to obtain more detailed information as depicted by each of the policies one would need to
read Annexure B in conjunction with this sub-section).
Table 1 below provides a summary of the broad strategic objectives identified in the National,
Provincial, District and Local policies outlined above.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
12
Table 1 - Policy Alignment
Policy Objectives National Provincial District Local
Economic Growth & Development
Improving competition in the economy
& creating an enabling environment to
create opportunity
Infrastructure and Institutional
development (especially energy,
transport, communication, water &
housing)
Job creation & human capital
development
(creating five
million jobs over
the next decade
i.e. 2010 to 2020)
Expansion and development of
businesses
Access to opportunities & recognising
the local character of economic need
and of potential areas of growth
Skills development
Sustainable & environmental
development
Eradicate poverty
Provision of basic services
Social development
Spatial Integration
Public transport system & promote non-
motorised transport
Effective Governance and institutional
strengthening
Minimise consumption of scarce
resources
As can be seen from the Table 1 above it is clear that the objectives of all the spheres of government
align with each other. It is important to ensure that the objectives outlined within the LED Strategy
are also aligned to these strategic objectives.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
13
SECTION 3: SOCIO-ECONOMIC PROFILE
The purpose of this section is to provide an overview of the current socio-economic situation within
the Hantam Local Municipality. This is done mainly to provide an indication of the overall
performance of the local economic and social characteristics.
TAKE NOTE: The Municipal Demarcation Board is an independent authority responsible for the
determination of municipal boundaries. In 2011 the demarcation of municipal boundaries in South
Africa were changed so that DMA’s (District Municipal Areas) could be incorporated into local
municipal boundaries. Table below indicates the change in geographical areas of the various
Namakwa LMs:
Old Demarcation New Demarcation (July 2011)
Geographical Area (km2)
% of Namakwa DM
Geographical Area (km2)
% of Namakwa DM
Richtersveld LM 9 684 8% 9 608 8%
Nama Khoi LM 14 921 12% 17 989 14%
Kamiesberg LM 11 750 9% 14 210 11%
Hantam LM 28 001 22% 36 128 28%
Karoo Hoogland LM 29 423 23% 32 274 25%
Khâi-Ma LM 8 310 7% 16 628 13%
Namakwa DMA 24 792 20% n/a n/a
Map below indicates the old and new municipal demarcation of the Hantam LM, which now covers
28% (36 128 km2) of the Namakwa Districts total geographical area.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
14
Map 3 – New Municipal Demarcation as released July 2011
(Source: Municipal Demarcation Board, http://www.demarcation.org.za)
3.1. Demography
3.1.1. Population Size and Distribution
The Hantam LM covers a geographical area 28 001 km2 which is approximately 22% of
Namakwa’s total. The Municipality has a population density of 0.8 people per km 2 and a
household density of 0.2 households per km2. Approximately 17% of Namakwa’s population
resides in the Municipality (see Table 2 below).
TAKE NOTE: The statistics below are based on the old municipal demarcation. In order to include
the new municipal demarcation Census 2011 data will need to be used (which will only become
available in 2012/2013). For communities within the Hantam LM, only Census 2001 data is
available at present. Where possible, more recent i.e. 2009 data (on Local Municipal level) has
been incorporated and assumptions have been made to present a more recent profile. For
reference, the 2001 data is also indicated where the 2009 data was incorporated.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
15
Table 2 - Population Size and Distribution, 2010
Population
total
Households
total
Area
(km2)
Population
Density
Household
Density
Northern Cape 1,103,918 277,551 373,186 3.0 0.7
Namakwa DM 135,415 39,272 126,880 1.1 0.3
Hantam LM (Old Demarcation) 23,101 6,576 28,001 0.8 0.2
(Source: Quantec Data 2010)
The size of households within the Hantam LM is illustrated in Figure 3 below.
Figure 3 – Household Size, 2007
(Source: Quantec Data 2010)
Figure 3 above indicates that 41.0% of households within Hantam consist of three members,
while 37.1% consists of nine members.
The population distribution of the main-places within the Hantam Local Municipality is
depicted in Table 3 below.
Table 3 - Hantam LM Population Distribution on Main-place Level, 2001
% of LM Population Area (km2)
Brandvlei 12% 208.9
Calvinia 43% 26.9
Hantam NU 26% 27,730.6
Loeriesfontein 12% 8.4
Nieuwoudtville 7% 26.1
3.3%
5.0%
41.0%
5.2%
1.7%
2.7%
2.4%
0.0%
37.1%
0.0%
0.0%
0.0%
0.2%
1.3%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
1 Member
2 Members
3 Members
4 Members
5 Members
6 Members
7 Members
8 Members
9 Members
10 Members
11 Members
12 Members
13 Members
14 Members
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
16
(Source: Census 2001)
From Table 3 it is evident that the most significant portion of Hantam’s urban population
resides in Calvinia. Hantam LM also has a large rural population, with 26% of its population
residing in the non-urban (NU) regions within the Municipality which covers approximately
99% of the LMs geographical area.
3.1.2. Age and Gender Composition
The age distribution of a population is important because the largest population age group inevitably
dictates its own demands on the market. Figure 4 below indicates the age profile of citizens living in
the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality.
Figure 4 - Age Profile, 2010
(Source: Quantec Data 2010)
The dependency ratio indicates the amount of individuals that are below the age of 15 and over the
age of 64, that are dependent on the Economically Active Population (EAP) (individuals that are aged
15 – 64 that are either working or able to work). As can be seen from the Figure 4 above:
34.4% of the Hantam LM population are dependent on the EAP (65.6%)
30.1% of the Namakwa DM population are dependent on the EAP (69.9%).
33.4% of the Northern Cape population are dependent on the EAP (66.6%).
These dependency ratio’s could be higher as not every individual in the EAP is employed (i.e. some
could be studying full-time into their 20’s; some could of been retrenched, some may be
housewives, etc.).
27.4%
19.8%
46.8%
6.0%
22.7%
17.4%
52.5%
7.4%
26.3%
17.6%
48.0%
8.1%
0% 10% 20% 30% 40% 50% 60%
0-14
15-24
25-64
65+
Hantam Local Municipality Namakwa District Municipality Northern Cape Province
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
17
The Hantam LM’s population can be regarded as having a high dependency ratio, with 8.4% of
the population over the age of 65 and 26.3% are under 15 years. The latter youth group will be
demanding education, housing and jobs in the near future.
The Hantam gender distribution is 47.2% males and 52.8% females. The gender ration can
consequently be expressed as 89.2 males per 100 females.
3.1.3. Population Growth Trend
Figure 5 below indicates the population growth levels within the Northern Cape Province, the
Namakwa District Municipality, and the Hantam Local Municipality.
Figure 5 - Population Growth Rates, 1996 - 2010
(Source: Quantec Data 2010)
The average population growth rates between 1996 and 2010 were as follows:
Northern Cape Province (0.6%)
Namakwa District Municipality (0.4%)
Hantam Local Municipality (0.2%)
3.1.4. Household Income Structure
In order to determine the people’s living standards as well as their ability to pay for basic services
such as water and sanitation, the income levels of the employed population are analysed. Generally
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
Northern Cape Province Namakwa District Municipality Hantam Local Municipality
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
18
household income levels are one basis for determining poverty levels in a community. Additionally,
the income levels of a particular area provide some insight into the economic behaviour of a
particular community, i.e. the purchasing power of that community, the potential poverty levels that
a community might be experiencing and vulnerability to changes in the economy.
Households that has either no income or a low-income fall within the poverty level (R0 – R3,200 per
month); indicating that they experience difficulty in meeting their basic needs. A high poverty level
results in a social dependency on the government and could lead to great strain on the government
budget. A middle-income is classified as earning R3,201 – R25,600 per month whereas and a high-
income is classified as earning R25,601 or more per month. Table 4 below indicates the household
income categories of the residents in the Northern Cape Province, the Namakwa District
Municipality, and the Hantam Local Municipality.
Table 4 - Average Monthly Household Income Categories, 2007
Northern Cape Namakwa DM Hantam LM
Low Income 66.6% 58.8% 63.0%
Middle Income 29.7% 38.1% 32.8%
High Income 3.7% 3.1% 4.2%
(Source: Quantec Data 2007)
From Table 4 above it is evident that 63% of Hantam LM households fall within the poverty level,
(i.e. they earn R3,200 or less per month) which is higher than the District average (58.8%) but lower
than the Provincial average (66.6%). Income categories will not improve unless the population’s skills
improve through better education attainment opportunities and job creation in higher skilled
economic sectors.
Figure 6 below illustrates the household income levels of the residents in the Namakwa District
Municipality and the Hantam Local Municipality.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
19
Figure 6 – Average Monthly Household Income Levels, 2007
(Source: Quantec Data 2007)
From Figure 6 above it is evident that 63% of the households residing in the Hantam LM fall within
the poverty level (low income category). Of this 63%, 6.3% received no monthly income which is
slightly lower than the District average of 6.8%.
Hantam is characterised by low-income households, which has implications for the financial status of
the Municipality and its ability to implement programmes. Further, household income has
implications for the types of initiatives that would be feasible in terms of local market demand.
Table 5 below illustrates the percentage of population receiving social grants within the the
Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality.
6.3%
3.2%
6.6%
19.5%
23.1%
18.9%
13.9%
5.3%
2.4%
0.5%
0.2%
0.1%
6.8%
1.6%
6.4%
22.3%
25.8%
16.4%
11.8%
4.5%
2.9%
1.3%
0.0%
0.0%
0% 5% 10% 15% 20% 25% 30%
No income
R1-R400
R401-R800
R801-R1,600
R1,601-R3,200
R3,201-R6,400
R6,401-R12,800
R12,801-R25,600
R25,601-R51,200
R51,201-R102,400
R102,401-R204,800
R204,801 or more
Hantam Local Municipality Namakwa District Municipality
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
20
Table 5 - Grants, 2007
Northern Cape Namakwa DM Hantam LM
Old age pension 14.6% 17.9% 12.2%
Disability grant 10.7% 9.4% 6.8%
Child support grant (linked to child) 36.1% 29.5% 20.4%
Care dependency grant 1.3% 0.9% 1.8%
Foster care grant 0.2% 0.0% 0.2%
Grant in aid 0.6% 0.1% 0.5%
Social relief 0.2% 0.2% 0.4%
Multiple social grants 0.4% 0.4% 1.3%
Institutions 35.8% 41.5% 56.4%
(Source: Quantec Data 2007)
In 2007, approximately 2.3% of Hantam’s total population received some form of government grant.
Within the Hantam LM (refer to Table 5 above) grants for institutions (56.4%) was the most received
government grant followed by the child support pension grant (20.4%) and the old age pension grant
(12.2%). The Hantam LM received approximately 22% of the total grants issued by the Namakwa DM
in 2007.
3.1.5. Education
Education levels in any given market area will influence economic and human development. It is
clear that low education levels lead to a low skills base in an area while high education levels have
the opposite effect, producing a skilled or highly skilled population. There is also no doubt that
household and personal income levels are either positively or adversely affected by education levels.
Also, a population that is skilled does not necessarily aspire to employment but to entrepreneurship,
which will add businesses to the area, increase economic activity and consequently increase the
number of jobs available. Table 6 below indicates the adult education levels (individuals aged 20
years and over) of citizens residing in the Northern Cape Province, the Namakwa District
Municipality, and the Hantam Local Municipality.
Table 6 - Adult Education Levels, 2007
Northern Cape Namakwa DM Hantam LM
No Schooling 12.2% 5.8% 16.4%
Some Primary 20.4% 19.4% 20.0%
Complete Primary (Grade 7) 7.4% 10.1% 7.2%
Some Secondary 33.8% 41.4% 30.4%
Complete Secondary (Grade 12) 16.7% 15.3% 19.9%
Some Secondary with Certificate/Diploma 3.2% 2.1% 1.6%
Complete Secondary with Certificate/Diploma 3.6% 3.6% 1.4%
Tertiary Education 2.7% 2.4% 3.1%
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
21
(Source: Quantec Data 2007)
Around 16% of the Hantam LM’s adult population has no schooling, which is higher than the overall
of the Namakwa DM’s 5.8%. Only 6.1% of the Hantam’s adult population has a certificate/diploma or
tertiary education. This means that the majority of the adult population have a low skill level and
would either need job employment in low-skill sectors, or better education opportunities in order to
improve the skills level of the area, and therefore their income levels.
The adult education levels for the various main-places within the Hantam LM are indicated in Table 7
below. From Table 7 it is evident that highest portion of adults with no form of schooling resides in
the non-urban (NU) regions within Hantam (33%), followed by Brandvlei (27%) and Loeriesfontein
(25%).
Table 7 - Adult Education Levels, Main Places, 2001
Adult (age 20+) Education level Brandvlei Calvinia Hantam NU Loeriesfontein Nieuwoudtville
No schooling 27% 22% 33% 25% 17%
Some primary 23% 17% 25% 24% 20%
Complete primary 8% 8% 9% 9% 10%
Some secondary 29% 28% 14% 24% 37%
Std 10/Grade 12 10% 20% 10% 15% 10%
Higher 3% 6% 9% 4% 6%
(Source: Census 2001)
There is a need for educational facilities, particularly post-matric training as well as accredited
tertiary institutions that offer affordable and appropriate qualifications. There is also a need to
attract and retain qualified professionals.
3.2. Infrastructure
3.2.1. Accessibility
Calvinia is situated almost in the centre of the Hantam LM and links to the surrounding towns via the
following roads (refer to Map 3 below taken from the Hantam SDF):
R27 to Nieuwoudtville in the west and to Brandvlei in the north-east;
R63 to Williston in the east;
R354 to Middelpos which lies to the south-east; and
R355 to Loeriesfontein which is situated to the north-west of Calvinia.
The major roads linking Nieuwoudtville to the surrounding towns are as follows:
R27 to Calvinia which is situated due east; and
R357 to Loeriesfontein which lies to the north-west.
Loeriesfontein has access to the surrounding towns via the following road network:
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
22
R357 which links it to Nieuwoudtville in the south-west and to Brandvlei to the north-west;
and
R355 which links it to Calvinia in the south-east.
Low accessibility is a restriction to economic development in the area. Attracting investors is
particularly restrained by the lack of airport facilities.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
23
Map 4 – Infrastructure of the Hantam LM
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
24
3.2.2. Mode of Transport
The modes of transport in use are a consideration in local economic development. This is because
development projects need to take into consideration the mode of transport utilized by the labour
force. New industrial developments should not be situated far away from the pick-up or drop-off
points of various means of transportation. However, if the factory or office is far, the employer
needs to consider means of transport for the workers from strategic points. The same applies for
schools or education and training campuses. Figure 7 below indicates the mode of transport used by
individuals in the Northern Cape Province, the Namakwa District Municipality, and the Hantam Local
Municipality.
Figure 7 - Mode of Transport, 2001
(Source: Quantec Data 2001)
The majority of the Hantam LM’s population (73.8%) travel to school or to work by foot. Around
11.8% of the Hantam population make use of public transport (i.e. the bus, train, taxi, or lifts with
other people); while 2.9% make use of bicycles and 11.4% use their own private transport. Donkeys
and horses as well as donkey/horse carts are also widely used in the area.
Most of Hantam’s population are living in small, dispersed settlements and have limited transport
capacity to travel the often significant distances between urban centres. As many of these
66.8%
1.7%
0.3%
9.2%
8.8%
6.9%
6.2%
0.2%
66.7%
1.3%
0.3%
10.2%
8.1%
2.8%
10.5%
0.1%
73.8%
2.9%
0.3%
11.1%
9.5%
0.9%
1.4%
0.0%
0% 10% 20% 30% 40% 50% 60% 70% 80%
On foot
By bicycle
By motorcycle
By car as a driver
By car as a passenger
By minibus/taxi
By bus
By train
Hantam LM Namakwa DM Northern Cape
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
25
households are also living in poverty, the lack of transport adds to the so-called “poverty trap”, as
these people are less able to conduct, for example, informal activities to alleviate their
circumstances. There is potential to expand this industry, particularly provision of public transport.
3.2.3. Access to Services
Table 8 below summarises the service levels of households within the Northern Cape Province,
Namakwa District and Hantam LM.
Table 8 – Household Service Levels, 2010
Northern Cape Namakwa DM Hantam LM
House or brick structure on a separate stand or yard
77.4% 81.4% 75.2%
Informal dwelling/shack 16.1% 8.9% 5.2%
Electricity for lighting 85.8% 89.0% 85.9%
Refuse removal by local authority 71.9% 87.1% 83.2%
Appropriate sanitation (Flush or a Chemical Toilet) 67.8% 74.7% 76.1%
Piped Water (Less than 200m from dwelling) 87.2% 93.8% 93.3%
(Source: Quantec Data 2011)
Housing According to standardised regional data (Quantec, 2011), the portion of households
resident in informal dwellings in the Hantam LM (253 households according to the IDP 2010/11),
is less than that of the District and Province. According to the Local IDP (2010/2011) Hantam has
a housing backlog of 730 houses.
Electricity – Only urban areas within the Hantam LM have access to electricity and rural areas
thus have to rely on other means. In comparison with the District (89%), household’s resident in
Hantam (85.9%) has less significant access to electricity. Households’ resident in Middelpos (26)
have no access to electricity and are supplied with wood and lamp oil.
Refuse Removal – The portion of households with access to refuse removal by local authority
within the Hantam LM (83.2%) are less than those resident in the Namakwa District (87.1%).
Appropriate Sanitation – The portion of households resident within the Hantam LM (76.1%)
have a higher access to appropriate sanitation (chemical or flush toilet) than both the District
(74.7%) and Province (67.8%). According to the local IDP (2010/11) there are still 55 bucket
system toilets within the Hantam Municipal area.
Piped Water – The portion of households resident in Hantam with access to piped water less
than 200 meter from their dwelling is only slightly less (93.3%) than the District average (93.8%).
According to the Hantam IDP (2010/11) all residents of the Hantam LM have access to water on
their property.
Table 9 below summarises the service levels of the main-places within the Hantam Local
Municipality.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
26
Table 9 - Household Service Levels on Community Level, 2001
Brandvlei Calvinia Hantam NU Loeriesfontein Nieuwoudtville
House or brick structure on a
separate stand or yard 87% 78% 93% 93% 88%
Informal dwelling/shack 7% 2% 1% 3% 5%
Electricity for lighting 88% 93% 39% 93% 91%
Refuse removal by local authority 99% 99% 2% 98% 94%
Appropriate Sanitation (Flush or a
Chemical Toilet) 74% 79% 44% 49% 91%
Piped Water (Less than 200m) 97% 98% 88% 96% 95%
(Source: Census 2001)
From the Table 9 it is evident that:
Brandvlei has the highest portion of households in Hantam residing in informal
dwellings/shacks.
Only 39% of households in the non-urban (NU) regions within the Municipality have access
to electricity for lighting.
The majority of Hantam’s households have their refuse removed by local authority, although
non-urban (NU) regions have to make use of other means with only 2% of households in the
NU regions having their refuse removed by local authority.
Less than 50% of households in the non-urban (NU) regions and Loeriesfontein have access
to appropriate sanitation (this refers to access to a flush or chemical toilet)
The majority of households (88% or more) within the various main-places have access to
piped water less than 200m from their dwelling.
3.3. Labour and Employment
The employment profile of the study area is an important indicator of human development, but also
of the level of disposable income and subsequently the expenditure capacity of the residing
population. An employed person is a person who works for pay, profit or family gain. Such a person
can be an employer, an employee, self-employed or a working family member. According to the
(international) official or strict definition, the unemployed are those people within the economically
active population who (a) did not work in the seven days prior to census night, (b) wanted to work
and were available to start work within a week of census night, and (c) had taken active steps to look
for work or start some form of self-employment in the past four weeks. The not economically active
population are people who are not working, but are housewives, scholars/full-time students,
pensioners, disabled people and people not wishing to work.
Figure 8 below indicates the employment status of the individuals within the Northern Cape
Province, the Namakwa District Municipality, and the Hantam Local Municipality.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
27
Figure 8 - Employment Status, 2009
(Source: Quantec Data 2009)
From Figure 8 above it is evident that 45.8% of Hantam LM’s population are employed, 13%
unemployed and another 41.2% are not economically active. The various employment
indicators are as follows:
The labour force includes all the potential economically active population (age cohort of
15 to 64 years) who are employed and unemployed.
Unemployment rate indicates the number of people unemployed as a percentage of
the labour force.
Labour Participation Rate (LPR) indicates the labour force as a percentage of the
potential economically active population (age cohort of 15 to 64 years).
The number of persons each economically active person has to support is measured by
the labour dependency ratio (LDR). This ration not only includes the economically
inactive part of the population, such as housewives and students, it also includes
children and young people under 15, as well as older people over the age of 65.
Table 10 below indicates the employment indicators for the Northern Cape Province, the
Namakwa District Municipality, and the Hantam Local Municipality.
Table 10 – Employment Indicators, 2009
Northern Cape Namakwa DM Hantam LM
Unemployment Rate 27.6% 19.3% 22.1%
Labour Participation Rate 53.3% 56.8% 58.8%
Labour Dependency Ratio 2.9 2.6 2.7
(Source: Quantec Data 2009)
38.6%
14.7%
46.7%
45.8%
10.9%
43.2%
45.8%
13.0%
41.2%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Employed
Unemployed
Not economically active
Northern Cape Namakwa DM Hantam LM
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
28
The Hantam LM’s:
Unemployment rate (22.1%) is higher than that of the Namakwa DM (19.3%) . The
economic cost of unemployment include:
o Loss of earnings to the unemployed
o Stress and health problems of being unemployed
o Increased government borrowing. Tax revenue will fall because there is less
people paying income tax and VAT. Also the government borrowing will have to
spend more on unemployment benefits.
o Lower GDP for the economy, the economy will be below full capacity this is
inefficient and will lead to lower output and incomes.
o Increase in social problems. Areas of high unemployment (especially youth
unemployment) tend to have more crime and vandalism.
Labour participation rate (58.8%) is higher than that of the Namakwa DM (56.8%).
Has a labour dependency ratio of 2.7 which is higher than the Namakwa DM (2.6) .
Table 11 below indicates the employment indicators for the Hantam LM main-places.
Table 11 – Main Place Employment Indicators, 2001 and 2009
Brandvlei Calvinia Hantam Loeriesfontein Nieuwoudtville
Unemployment Rate 2001 39% 27% 6% 23% 20%
Unemployment Rate 2009 43% 30% 7% 25% 22%
LPR 2001 63% 47% 66% 55% 46%
LPR 2009 67% 50% 71% 59% 49%
(Source: Census 2001 and Urban-Econ calculations)
From Table 11 it us evident that the unemployment rate has decreased from 2001 to 2009
with labour participation increasing. Employment creation programmes are needed that target
both the unemployed (those who seek work but cannot find it) as well as those who are
choosing not to work.
Education levels in any given market area will influence economic and human development. It
is clear that low education levels lead to a low skills base in an area while high education
levels have the opposite effect, producing a skilled or highly skilled population. A population
that is skilled does not necessarily aspire to employment but to entrepreneurship, which will
add businesses to the area, increase economic activity and consequently increase the number
of jobs available. Figure 9 below indicates the skills level of residents residing in the Northern
Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
29
Figure 9 – Skills Levels, 2009
(Source: Quantec Data 2009)
Around 11% of the Hantam LM’s population is highly skilled, while 37.7% are skilled. The
majority (51.5%) of Hantam’s population are semi- and unskilled and would either need job
employment in low-skilled sectors, or better education opportunities in order to improve the
skills level of the area, and therefore their income levels.
A population with low skills won’t be able to improve their incomes and therefore it would be
important to implement skills development programmes and job creation in higher skil led
occupations. This is also important in order to leverage the economy from being primary -
sector (agriculture) based to being more diversified across primary, secondary and tertiary
(more skills intensive) sectors. Furthermore, due to the high percentage of semi- and unskilled
citizens professional services have to be “imported” from areas surrounding these areas,
resulting in a leakage of expenditure from the local economy. Technological advances will
however, in the near future reduce the need for unski lled and low skilled workers, but rather
increase the need for a skilled and semi-skilled force workforce. The low skills levels of the
population are cause for concern.
The occupation profile is a strong indicator of the level of income generated by the local population.
The occupation profile indicates whether the population has a skilled or unskilled labour force and in
which professions people are absorbed into. Table 12 below indicates the different occupations that
people are employed in, in the Northern Cape Province, the Namakwa District Municipality, and the
Hantam Local Municipality.
Table 12 - Occupation Profile, 2007
Northern Cape Namakwa DM Hantam LM
Legislators; senior officials & managers 8.1% 8.2% 2.7%
Professionals 8.6% 8.8% 8.1%
11.7% 10.9% 10.8%
39.7% 36.3% 37.7%
48.6% 52.8% 51.5%
0%
10%
20%
30%
40%
50%
60%
Northern Cape Namakwa DM Hantam LM
Highly skilled Skilled Semi- and unskilled
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
30
Northern Cape Namakwa DM Hantam LM
Technicians & associate professionals 4.0% 3.7% 3.8%
Clerks 8.0% 7.8% 8.9%
Service workers; shop & market sales workers 8.3% 8.5% 6.5%
Skilled agricultural & fishery workers 6.9% 5.6% 6.8%
Craft & related trades workers 10.6% 12.1% 11.6%
Plant & machine operators & assemblers 6.1% 6.9% 4.1%
Elementary occupations 18.1% 19.0% 18.4%
Occupations unspecified & not elsewhere classified
14.3% 12.7% 17.6%
Institution 6.9% 6.7% 11.5%
(Source: Quantec Data 2007)
The majority of the Hantam LM’s population is employed in the following occupations:
1. Elementary occupations (18.4%)
2. Occupations unspecified and not elsewhere classified (17.6%)
3. Craft and related trades workers (11.6%)
This indicates that there are limited professional skills in the area. The high proportion of semi-and
unskilled workers has implications for the nature and quality of jobs created. To improve on the
quality of jobs, household incomes and overall economic status of the area, skills development
programmes are needed.
Table 13 below indicates the sectors in which residents are employed within the Northern Cape
Province, the Namakwa District Municipality, and the Hantam Local Municipality.
Table 13 - Sector of Employment, 2009
Northern Cape Namakwa DM Hantam LM
Agriculture, forestry & fishing 16.6% 12.6% 21.3%
Mining & quarrying 8.2% 16.3% 0.6%
Manufacturing 3.8% 2.8% 4.5%
Electricity, gas & water 0.6% 0.4% 0.9%
Construction 4.6% 5.7% 5.1%
Wholesale & retail trade, catering &
accommodation
16.1% 14.6% 12.3%
Transport, storage & communication 3.2% 3.3% 2.6%
Finance, insurance, real estate & business
services
9.2% 8.1% 13.4%
Community, social & personal services 15.5% 17.7% 21.8%
General government 22.3% 18.6% 17.7%
(Source: Quantec Data 2009)
The following sectors are the main employing sectors within the Hantam Local Municipality:
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
31
Community, social and personal services (21.8%)
Agriculture, forestry and fishing (21.3%)
General government (17.7%)
Finance, insurance, real estate & business services (13.4%)
Wholesale & retail trade, catering & accommodation (12.3%)
Table 14 shows the sectors in which the residents of the various main-places within the Hantam LM
are employed.
Table 14 – Main Place Sector of Employment, 2001 and 2009
Brandvlei Calvinia Hantam NU Loeriesfontein Nieuwoudtville
2001 2009 2001 2009 2001 2009 2001 2009 2001 2009
Agriculture 12% 6% 5% 2% 79% 61% 12% 6% 18% 10%
Mining 11% 4% 0% 0% 1% 0% 0% 0% 6% 2%
Manufacturing 8% 11% 3% 4% 2% 4% 2% 3% 5% 7%
Utilities 0% 0% 1% 1% 0% 1% 1% 1% 0% 0%
Construction 4% 3% 7% 5% 2% 3% 13% 11% 7% 7%
Wholesale and retail
trade
26% 22% 18% 12% 2% 3% 27% 21% 35% 32%
Transport; storage
and communication
1% 2% 2% 2% 1% 2% 7% 7% 0% 0%
Financial and
business services
6% 16% 10% 21% 1% 3% 6% 14% 2% 7%
Community and
personal services
31% 37% 54% 54% 12% 22% 32% 36% 26% 34%
(Source: Census 2001 and Urban-Econ calculations)
From Table 14 it is evident that:
Community and personal services sector was the most significant employing sector within all
the main-places of the LM, except for the non-urban regions where agriculture is the
dominant employing sector (2001 and 2009), during 2001 and 2009.
Although employment in the Wholesale and retail trade sector shows a decrease from 2001
to 2009, it was still the second most significant employer in Brandvlei, Loeriesfontein and
Nieuwoudtville in 2009.
In Calvinia the Wholesale and retail trade sector went from being the second most
significant employer in 2001 to the third in 2009, being replaced by the Financial and
business services sector.
3.4. Economic Structure and Performance
3.4.1. Economic Production
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
32
Gross Domestic Product (GDP) comprises the value of all final goods and services, produced during a
year, within the boundaries of a specific region and is commonly used to measure the level of
economic activity in a specific area. For analytical purposes, GDP is utilised as an important indicator
of economic activity. Generally, if the economy as a whole is performing well, demand for residential
and commercial property can be expected to increase, and vice versa.
GVA (Gross Value Added) is linked as a measurement to GDP. The relationship is defined as: GDP =
GVA + Taxes – Subsidies. As the total aggregates of taxes on products and subsidies on products are
only available at whole economy level, GVA is used for measuring Gross Regional Domestic Product
and other measures of the output of entities smaller than a whole economy. GVA (Gross Value
Added) is the difference between output and intermediate consumption for any given
sector/industry. That is the difference between the value of goods and services produced and the
cost of raw materials and other inputs which are used up in production.
TAKE NOTE: This data is based on “place of residence” and NOT “place of work”.
Table 15 below indicates the economic production of the Local Municipalities within the Namakwa
District.
Table 15 – Economic Production of the Namakwa District (GDP at current prices), 2009
GDP (R'000 000)
Current Prices, 2009
As % of Namakwa DM
Namakwa DM R 8 526
Richtersveld LM R 1 457 17.1%
Nama Khoi LM R 3 854 45.2%
Kamiesberg LM R 810 9.5%
Hantam LM R 974 11.4%
Karoo Hoogland LM R 288 3.4%
Khâi-Ma LM R 1 144 13.4%
(Source: Quantec Data 2009)
The Hantam LM contributed 11.4% to the total economic production of the Namakwa District in
2009. Therefore, out of the six Local Municipalities within the Namakwa District, Hantam rates
fourth in terms of contribution to economic production.
Figure 10 below indicates the annual GDP growth rates of the Northern Cape Province, the
Namakwa District Municipality, and the Hantam Local Municipality. From 2004 to 2005 Hantam
experienced a spike in its economic production growth, while the District experienced a decline. This
could largely be due to the fact that the mining sector, which is the main contributor to the
Namakwa Districts’ economy (refer to Table 16 below), experienced a sharp decline during that
period which made a large impact on the overall economic growth of the District. The reason the
decline in the mining sector did not influence the Hantam LM is due to the fact that this sector is the
least significant contributor to the Municipality’s economy. From 2006 to 2009 both the Northern
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
33
Cape and the Namakwa District annual economic production growth rates have been declining, with
Hantam’s rate showing a decline from 2008 to 2009.
Figure 10 - GDP Growth Rates, 1996 - 2009
(Source: Quantec Data 2009)
The Northern Cape Province had an average annual GDP growth rate of 2.2% during 1996 and 2009,
while the Namakwa District Municipality had an average annual GDP growth rate of 1.3% and the
Hantam Local Municipality had an average annual GDP growth rate of 3.7% in the same period.
3.4.2. Sectoral Composition
Table 16 below indicates the GDP contribution of each economic sector to the economies of the
Northern Cape Province, the Namakwa District Municipality, and the Hantam Local Municipality.
Table 16 - GDP Contribution, 2009
Northern Cape Namakwa DM Hantam LM
Agriculture, forestry & fishing 6.2% 4.5% 11.0%
Mining & quarrying 23.4% 34.9% 1.2%
Manufacturing 3.6% 2.2% 4.5%
Electricity, gas & water 2.1% 1.1% 3.4%
Construction 1.7% 2.4% 3.0%
Wholesale & retail trade, catering & accommodation
11.7% 9.5% 9.9%
Transport, storage & communication 10.2% 10.7% 10.8%
Finance, insurance, real estate & business services
15.3% 11.0% 23.1%
Community, social & personal services 10.7% 11.9% 14.7%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
Northern Cape Namakwa DM Hantam LM
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
34
Northern Cape Namakwa DM Hantam LM
General government 15.1% 11.8% 18.4%
Total 100% 100% 100%
(Source: Quantec Data 2009)
The sectors that contributed the most to the Hantam Local Municipality are:
1. Finance, insurance, real estate and business services (23.1%)
2. General government (18.4%)
3. Community, social and personal services (14.7%)
4. Agriculture, forestry & fishing (11.0%)
5. Transport, storage & communication (10.8%)
3.4.3. Comparative Advantage
A comparative advantage indicates a relatively more competitive production function for a product
or service in a specific economy (regional or sub-regional) than in the aggregate economy (provincial
or national). It therefore measures whether a specific economy produces a product or renders a
service more efficiently than another.
One way to measure the comparative advantage of a specific economy is by way of the location
quotient. A location quotient as a tool, however, does not take into account external factors such as
government policies, investment incentives, and proximity to markets, etc, which can influence the
comparative advantage of an area. The Locational Quotient is used to calculate the comparative
advantage of the relevant study areas. The location quotient is a calculated ratio between two
economies, in this case the metropolitan and local economies. This ratio is calculated for all
industries to determine whether or not the district or local economy has a greater share or
advantage of that industry. If an economy has a location quotient greater than 1, it means that
economy enjoys a comparative advantage. The interpretation of the locational quotient is illustrated
in Table 17 below.
Table 17 - Locational Quotient Interpretation
Locational Quotient Classification Interpretation
Less than 0.75 Low Regional needs are probably not being met by the sector resulting in an import of goods and services in this sector
0.75 to 1.24 Medium Most local needs are being met by the sector. The region will probably be both importing and exporting goods and services in this sector
1.25 to 4.99 High The sector is serving needs beyond the border, exporting goods and services in this sector to other regions or provinces
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
35
Locational Quotient Classification Interpretation
More than 5.00 Very High This is indicative of a very high level of local dependence on the sector, typically in a “single-industry” community
(Source: Urban-Econ 2010)
Table 18 below indicates the sectors where the Hantam LM has a comparative advantage in the
Namakwa District Municipal area in terms of GDP and employment.
Table 18 - Comparative Advantage, 2009
In terms of GDP In terms of Employment
Agriculture, forestry and fishing 2.46 1.69
Mining 0.04 0.04
Manufacturing 2.03 1.62
Electricity, gas and water 3.05 2.23
Construction 1.27 0.89
Wholesale and retail trade, catering and accommodation 1.04 0.84
Transport, storage and communication 1.01 0.77
Finance, insurance, real estate and business services 2.09 1.65
Community, social and personal services 1.24 1.23
General government 1.56 0.95
(Source: Quantec Data 2009)
In terms of GDP the Hantam LM has a comparative advantage within the Namakwa District
Municipality in the following sectors:
1. Electricity, gas and water
2. Agriculture, forestry and fishing
3. Finance, insurance, real estate and business services
And in terms of employment:
1. Electricity, gas and water
2. Agriculture, forestry and fishing
3. Finance, insurance, real estate and business services
3.5. Summary and Conclusion
The Hantam LM’s demographics and access to services can be summarised as follow:
Population Growth – Hantam’s average population growth rate from 2001 to 2010 is negative.
Hantam’s average population growth rate from 2001 to 2010 (-0.7%) was lower than both the
District (0.0%) and Provincial average (0.04%).
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
36
Dependency - The Hantam LM’s population can be regarded as having a high dependency ratio,
with 8.4% of the population over the age of 65 and 26.3% are under 15 years. The latter youth
group will be demanding education, housing and jobs in the near future.
Household Income – A more significant portion Hantam’s households (63.0%) fall within the low
income bracket than the District (58.8%). Approximately 6.8% of Hantam’s households have no
monthly income. Income categories will not improve unless the population’s skills improve
through better education attainment opportunities and job creation in higher skilled economic
sectors. The monthly weighted average household income of Hantam is slightly higher than the
District’s average, but lower than the Provincial average.
Adult Education – Hantam has a higher portion of adults with no schooling (16.4%) than both
the District (5.8%) and the Province (12.2%), indicating a need for skills development ain
training.
Housing – According to the Local IDP (2010/2011) Hantam has a housing backlog of 730 houses.
According to standardised regional data (Quantec, 2011), the portion of households resident in
informal dwellings in the Hantam LM (253 households according to the IDP 2010/11), is less than
that of the District and Province.
Electricity – Only urban areas within the Hantam LM have access to electricity and rural areas
thus have to rely on other means. In comparison with the District (89%), household’s resident in
Hantam (85.9%) has less significant access to electricity. Households’ resident in Middelpos (26)
have no access to electricity and are supplied with wood and lamp oil.
Refuse Removal – The portion of households with access to refuse removal by local authority
within the Hantam LM (83.2%) are less than those resident in the Namakwa District (87.1%).
Appropriate Sanitation – The portion of households resident within the Hantam LM (76.1%)
have a higher access to appropriate sanitation (chemical or flush toilet) than both the District
(74.7%) and Province (67.8%). According to the local IDP (2010/11) there are still 55 bucket
system toilets within the Hantam Municipal area.
Piped Water – The portion of households resident in Hantam with access to piped water less
than 200 meter from their dwelling is only slightly less (93.3%) than the District average (93.8%).
According to the Hantam IDP (2010/11) all residents of the Hantam LM have access to water on
their property.
The labour, employment and economic structure of the Hantam LM can be summarises ads follow:
Unemployment rate – Hantam has a higher unemployment rate (22.1%) than the Namakwa DM
(19.3%).
Skill Level – More than half (51.5%) of employed individuals in Hantam are classified as semi-
and unskilled, showing that skills training is a high priority.
Economic Growth – From 2008 to 2009 Hantam experienced a more significant economic
growth rate (1.0%) than both the District and the Province which experienced a negative growth
rate (-2.1% and -0.8% respectively). From 2001 to 2009, Hantam’s average annual economic
growth rate (4.6%) was more significant than both the District (1.0%) and Provincial (2.4%)
average.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
37
The Table 19 below depicts the Hantam LM’s economic sectors in terms of GDP contribution,
employment contribution and comparative advantage (location quotient).
Table 19 – Sector Performance Indicators
GGP Employment LQ
Agriculture, forestry & fishing 11.0% 21.3% 2.5
Mining & quarrying 1.2% 0.6% 0.0
Manufacturing 4.5% 4.5% 2.0
Electricity, gas & water 3.4% 0.9% 3.0
Construction 3.0% 5.1% 1.3
Wholesale & retail trade, catering & accommodation 9.9% 12.3% 1.0
Transport, storage & communication 10.8% 2.6% 1.0
Finance, insurance, real estate & business services 23.1% 13.4% 2.1
Community, social & personal services 23.6% 33.1% 1.40
From Table 19 the following leading sectors were identified:
Agriculture, forestry & fishing
Finance, insurance, real estate & business services
Community, social & personal services (including General Government Services)
Wholesale & retail trade, catering & accommodation
Transport, storage & communication
The next section turns to identifying specific economic development and growth opportunities
within the Hantam Local Municipality.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
38
SECTION 4: OPPORTUNITY ANALYSIS
4.1. Introduction
The purpose of this section is to identify potential local economic development opportunities in the
Hantam Local Municipality, based on the current situation within the municipality, as detailed in the
preceding situation analysis. A SWOT analysis and a local sectoral potential analysis will help create
an understanding with regard to the sectoral competitive advantages of the local economy and this
will be used to determine the development potential within the Hantam Municipal area.
4.2. Integration of LED
LED is an approach to sustainable economic development that encourages residents of local
communities to work together to stimulate local economic activity that will result in an
improvement in the quality of life for all in the local community (as mentioned in Section 1 above).
LED initiatives around the world have repeatedly failed due some common myths about LED, listed
and deflated below:
1. LED can occur without regional linkages.
Economic development needs cannot be met by individual communities alone – cognizance
needs to be taken of regional context, which has implications for linkages, leakages,
injections and comparative advantages of an area.
2. Economic development causes sprawl.
Economic development can be managed within spatial and environmental frameworks.
3. Any new business is right for our community.
Communities are characterized by varying skills, education levels, cultural and moral
preferences, consumer preferences and income levels that all impact on which types of
businesses are feasible on the one hand and socially appropriate on the other.
In addition, climate, infrastructure and geographical characteristics impact on which
businesses will be viable.
4. An economic development officer will turn our economy around.
Economic development results from the processes of numerous public, private and civic
sector actors within an enabling environment. While LED officers and LED units are needed
to drive these processes, they alone will not transform an entire economy.
5. Industry will locate here if we provide enough incentives.
While tax and other incentives are considered by industry role-players when deciding on
where to locate, other factors also come into play, such as infrastructure, proximity to input
sources, proximity to markets, quality of life, labour pool quality, overall business and
banking environment and so on. Offering incentives without addressing the other factors
will, at best, result in short-term investment until such a point as incentive schemes expire.
6. One big manufacturer will solve all of our economic problems.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
39
Economic development must be sustainable and in order to be considered sustainable, a
diverse economy should be the goal. A mature, strong and sTable economy is characterized
by strength across a range of sectors, including primary, secondary and tertiary activities
that cater for diverse consumer and business (value chain) needs
The Figure 11 below shows a basic virtuous circle of economic growth. It is based on the idea that
investments in improving infrastructure, services, human capital and/or other physical assets
contribute to the attainment of production efficiencies and a competitive market environment that
assist the economy to grow through job creation and increased expenditure (household, business
and government). Investments (injections) in this sense can be in the form of capital, skills or
technology that is transferred from outside the local economy.
Figure 11 - Virtuous Circle of Economic Growth
Similarly, leakages occur. Leakages may be in the form of profits removed from the area in the form
of return on investments made by outside investors. Another form of leakage is expenditure on
imported goods and services. In order to increase the momentum of virtuous economic growth, two
aspects need to be focused on, namely:
More services, infrastructure
facilities, business etc
Permanent job creation: Employment
Bio-psycho-social wellbeing, learning
etc
High productivity, high efficiency
Return on investment,
increasing tax base, improved access to
capital, growing purchasing power
Leakage
Injection/
Investment
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
40
Attracting injections – attracting injections (monetary) into the local economy to increase
demand for goods and services within the local economy is seen as demand side factors for
maximising opportunities within the Hantam Municipality’s economy. The most common
injection-seeking or demand-side LED strategies can be classified as two main groups:
o The promotion of export-sectors. In order to unlock these sectors it is important to have a
good understanding of local comparative advantages which enables the targeting of key
economic sectors.
o The attraction of spend within the area. For example linking various tourism activities such
as a business tourist in the area for a conference spending the night and/or visiting some of
the tourist sites within the area.
Reducing leakages – this entails investing in further processing of primary sector produce and/or
retaining and expanding local service and trade industries.
It is important to note that in order to attract investment one needs to know what the area has and
what is still needed in order to make the area more attractive for investment. This is referred to as
supply side factors which look at increasing the strengths of the area and minimising the
weaknesses. Supply side factors typically addressed include:
1. Labour quality
2. Logistics and transport infrastructure
3. Ease of starting and operating a business (aimed at both SMME’s and big businesses)
4. Incentive schemes
5. Marketing and making available inputs (natural resources, land, etc)
6. Efficient government provision of goods and services
7. Focus on quality of life aspects (tourism, recreation, health, educational and retirement facilities)
4.3. SWOT Analysis
A SWOT analysis is a commonly used tool used to facilitate a strategic review of a particular
organisation. It is a high-level exercise that identifies strengths, weaknesses, opportunities and
threats of the organisation. The strengths and weaknesses are internal factors that the organisation
may control. Opportunities and threats are those factors external to the organisation and therefore
the organisation has little or no control over these macro environment factors.
The SWOT analysis does not identify what should be done. Rather, it provides a framework for
identifying where strategic opportunities may exist and how to avoid weaknesses inherent in the
organisation or external threats from limiting future expansion and growth. The purpose of the
SWOT analysis is to identify and assess the strengths, weaknesses, opportunities and threats in the
Hantam Local Municipality, in terms of local economic development (refer to Table 20).
The identification of strengths, weaknesses, opportunities and threats within the municipal area
provides the basis upon which the pillars of the LED strategy may be built.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
41
Table 20 - SWOT Analysis
Weaknesses
Low institutional capacity (municipal
workforce & LED budget)
Limited water resources and low rainfall
Arid to semi-arid land with low agricultural
carrying capacity
Economy mostly reliant on agriculture
(sheep)- undiversified economy
Availability of land for emerging farmers is a
problem
Seasonality of working opportunities
Lack of support for emerging entrepreneurs
Small dispersed towns – mostly marginally
active economies (nodes classified as
stagnating small towns)
Increasing backlog of housing & basic
services
Accessibility - lack of tarred roads & poor
road quality
High poverty level
Areas with low/no cellphone, TV & radio
signals
Lack of adequate skills
Logistic problems
Electricity shortages
Land reform taking place too slowly
Skills gap in skilled positions
Municipal owned land is not being used for
its best strategic uses
Lack of jobs and economic development
Lack of available land for local residents
Fragmentation of tourism industry
Lack of access to good health care
Lack of sport and recreational facilities
Poor quality of education
High cost of land
Poor public transport network
Poor resourcing of LED strategies
Increasing levels of poverty and drug related
crimes
High levels of teenage pregnancy
Strengths
Scenic open land, nature reserves and
heritage sites
Local Nama cultures
Rich in wildflowers in the spring
Bulbs in Nieuwoudville
Sufficient sunshine - Solar potential
Abundant labour
Strong agricultural sector in terms of sheep
farming and rooibos cultivation
R27 tar road connection the areas with the
N7 to Western Cape (via Vanrhynsdorp)
Mineral deposits – salt, copper, gypsum,
quartzite, sandstone, silt & shale (possible
small scale mining opportunities)
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
42
High dependency on social grants and wage
income by the poor
Virtually non-existent manufacturing
industry
Low income levels and low spending
capabilities
Lack of Tourism information and marketing
Threats
Climate change that will impact on water
resources and agricultural activities
Water supply
Water quality
Political dynamics/uncertainties
Narrowing agriculture profit margins
Fluctuations in tourism industry
Global uncertainty of economic conditions
Fluctuations in Rand cycles
Brain-drain as individuals from the Northern
Cape migrate from scarcity of business,
finance, technical skills, and so forth
Opportunities
Growth in tourism
Unexploited mineral opportunities
Brand development
Strengthening local government spheres
EPWP, SETAs and learnerships
Renewable energy
Opportunities for technology to fill gaps
Agro-processing and technology innovations
(i.e. drought resistant crops)
Eco-tourism
4.4. Potential Opportunity Analysis
The potential analysis is the process of identifying the areas strengths in order to develop bankable
cross-cutting projects.
4.5. Criteria for Determining Development Potential
Before commencing with the discussion of the relevant development potential criteria, it is deemed
necessary to first clarify the meaning of potential. The Concise Oxford Dictionary (1990) describes
“potential” as follows:
Capable of coming into being or action
The capacity for use or development
Usable resources
Therefore, potential refers to resources and/or capacity, which can be utilised or developed. In order
to identify or determine this development potential and/or opportunities within an economy, a set
of criteria is required against which to measure the resource and/or capacity to determine potential.
The set of criteria serves as a tool to identify areas with potential for development and opportunities
within each of the local economic sectors. The criterion for determining development potential
therefore includes the following:
a) Availability of raw materials and resources
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
43
b) Economic linkages
c) Market trends
d) Gap analysis / agglomeration advantages
e) Logistics / Nodal point function
f) Regional service delivery function
g) Availability of labour
h) Technology change
i) Enabling policy environment
The above criteria will be used to evaluate the leading economic sectors identified in the following
sub-section.
4.6. Sector Opportunities
The purpose of this sub-section is to provide an assessment of the economic activities within the
leading economic sectors in order to determine their potential for economic development.
To ensure alignment with National, Provincial, District and Local policy and legislation, their
objectives and key focus areas as well as the leading sectors (in terms of contribution to GDP,
contribution to employment and location quotient - refer to Table 19 in Section 3) within the
Hantam LM are illustrated in Table 21 below:
Table 21 – Policy and Legislation Sector Focus Areas
National Focus Provincial Focus District Focus Local Focus Leading Sectors
Infrastructure
Agriculture and
agro-processing
Mineral
beneficiation &
increasing the rate
of minerals
extraction
The green economy
Manufacturing
sectors:
- green energy
saving
industries
- plastics,
pharmaceutic
als, chemicals
and
packaging
- textiles and
Livestock
products
Game farming
Horticulture
Ago-related
industries
Tourism
Beneficiation
of minerals
Renewable
energy
Institutional
Development
for Investor
Readiness
SMME
Development
Agricultural
Sector
Development
Mining Sector
Development
Industrial
Development
Renewable
Energy
Development
Tourism
Development
Quality of Life
Agriculture
Mining
Tourism
Infrastructure
Agriculture,
Finance &
business
services
Community,
social &
personal
services
(including
General
Government
Services)
Wholesale &
retail trade
Transport,
storage &
communication
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
44
National Focus Provincial Focus District Focus Local Focus Leading Sectors
leather
- fuels and
biofuels
- agro-
processing,
food
processing
and organic
food
processing
Tourism
Improvement
From Table above the following leading sectors were identified:
Agriculture and agro-processing
Tourism
Electricity, gas and water - Renewable energy
Small scale mining and mining beneficiation
Community, social & personal services
The economic potential for each of the above leading economic sectors will be analysed in the
following sub-section.
4.7. Agriculture
Figure 12 below indicates the year on year growth performance of the agricultural sector for the
period 1995 to 2009 in the Northern Cape Province, Namakwa District and the Hantam Local
Municipality.
The agriculture sector incorporates establishments and activities that are primarily engaged in
farming activities, but also includes establishments focusing on commercial hunting, game
propagation, forestry, logging and fishing.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
45
Figure 12 - Agricultural Sector Growth Performance, 1995 to 2009
(Source: Quantec Data 2010)
Figure 12 shows that the agricultural sector’s annual growth varies year-by-year, indicating
vulnerability to external shocks such as climate and currency fluctuations. Between 2001 and 2009,
the Agriculture Sector averaged an annual growth rate of just 1.3%
Hantam LM consists largely of non-arable, low potential grazing land and is therefore ideally suited
to sheep farming, which is characteristic of this municipal area. Other than the flowers in spring and
pristine Karoo desert environment, there has been minor growth in most of the towns inside
Hantam LM. Calvinia has developed more convincingly over the last few decades and forms the
heart of one of South Africa’s largest wool-producing districts, but the other towns have not
developed further than the existing resources could take them. Most growth therefore has been
associated with the wealth created by the commercial farmers and with a few other sectors of
economic activity that have more recently emerged out the flower, bulbs and rooibos tea industries.
The agriculture activities that take place within Hantam LM include:
Sheep farming for meat (70%) and wool (30%)
Goat farming
Game farming
Farming of flower bulbs for export to Holland (job creation of approx. 30)
Rooibos tea production
o Rooibos tea is farmed productively on the sandstone soils and is famous for its fine
quality. Recently, a state of the art rooibos tea facility was built at Nieuwoudtville,
which is likely to increase the demand for rooibos production in the surrounding
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
Northern Cape Namakwa DM Hantam LM
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
46
area. If it is successful this project will be extended to include a pasteurizing facility
for the tea to be exported.
o Approximately 1500 – 1800 tonnes of rooibos are being produced per annum and
are currently in the process of expansion towards 3000 tonnes. There are 30
commercial rooibos farmers and 55 emerging rooibos farmers in Hantam.
Seed potato production (50ha in Nieuwoudtville)
Lucerne and wheat production in Calvinia along the river bank
In the past few years, farmers have been experiencing the severe impacts of drought and higher
temperatures, which are affecting soil conditions and an already limited water supply. If the future
of the Rooibos industry is to be guaranteed, farmers will need to adapt their farming practices to
survive in these new conditions. The Hantam LM does not have sufficient water supplies to host any
fishing & mariculture projects.
In the Hantam LM there are:
564 commercial farmers
Emerging farmers
o Total of 143 in Hantam LM
o 55 in Nieuwoudtville
o 30 in Brandvlei
The following is a list of LED projects/opportunities identified in the Hantam IDP and SDF as well as
additional identified opportunities within the Agricultural Sector:
Projects and Opportunities Identifies in the IDP
and SDP
Opportunities
Establish a hide processing plant
Rooibos Tea Processing Plant in Nieuwoudtville
Rooibos Tea Emerging Farmers Development in Nieuwoudtville
Job creation programme - garlic farming, eradication and processing of Prosopis, etc in Middelpos
Develop chicken project (eggs) in Brandvlei
Establish tunnel farming in Loeriesfontein
Flower bulb project (exports; job creation) in Nieuwoudtville
Abattoir in Calvinia
Potato project in tunnels – Nieuwoudtville, Loeriesfontein
Expansion of commonage and development of emergent farmers – Nieuwoudtville, Calvinia, Loeriesfontein, Brandvlei
Support is needed for the expansion of
agricultural opportunities and agro-processing
projects. Some agro-processing opportunities
include:
Wool processing
Tanning industry
Meat production
New agricultural ventures should take
cognisance of the trends in the market and
feasibility studies need to be conducted to
determine the viability of these new ventures.
Potential new ventures include:
Tropical crops along the Doring, Hantams, Klein
Vis, Vis and Renoster Rivers
Citrus
Grapes
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
47
Projects and Opportunities Identifies in the IDP
and SDP
Opportunities
Business hive, for marketing of proteas and flowers – Nieuwoudtville
Wool processing – Calvinia
Cultivation and sale of olive trees – Calvinia
Wheat mills – Calvinia
Hides and skins project – Loeriesfontein
Chicken project – Brandvlei
Apples
Quavas
New technological techniques should also be researched, such as drought resistant crops, water saving techniques and so forth
There is also the need for better support of SMMEs and emerging farmers to start their own farms and continual support to ensure the sustainability of these ventures.
The possibility of establishing a primary agricultural co-operative should be considered. A primary agricultural co-operative is a co-operative in which all the members are individuals. The purpose of a primary agricultural cooperative is to provide employment or services to its members and to promote community development. It takes a minimum of five natural persons to form a primary co-operative. The benefits of farming co-operatives include:
Achieve what one cannot achieve on your own
Provide easy access to needed services
Pay less for inputs, marketing, distribution and selling of produce
Process products if necessary
Transportation costs are very high and therefore the local businesses in each town should focus on working together and sharing costs. This will have to be linked to the availability of basic infrastructure.
Eradication and processing of Prosopis trees
Agave cultivation and possible processing.
Expansion of the rooibos tea production and its
by-products
Bulb farming near Nieuwoudtville
Community gardens (food security)
4.8. Mining
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
48
Many of the towns have benefited from mining-related infrastructure, such as hospitals, schools,
sport facilities, and other infrastructure such as roads, reticulation systems for water and electricity,
and a range of recreational sites such as dams. With almost the entire economy in towns such as
Carletonville or Westonaria somehow dependent on the mines, ranging from suppliers, craftsmen
and consultants to supermarkets, cafés and hairdressers, the (inevitable) closure of mines is
perceived as a fundamental threat to the economic future of these municipalities.
Figure 13 below indicates the year on year growth performance of the mining and quarrying sector
for the period 1995 to 2009 in the Northern Cape Province, Namakwa District and the Hantam Local
Municipality.
Figure 13 - Mining Sector Growth Performance, 1995 to 2009
(Source: Quantec Data 2010)
Figure 13 shows that the mining and quarrying sector’s annual growth varies year-by-year, indicating
vulnerability to external shocks such as climate and currency fluctuations. Between 2001 and 2009,
the Hantam LM mining and quarrying sector averaged an annual growth rate of just -5.5%
-15%
-10%
-5%
0%
5%
10%
15%
Northern Cape Namakwa DM Northern Cape
The Mining sector includes the extracting and beneficiating of minerals occurring naturally in the
environment (including solids, liquids and crude petroleum and gases). It also includes
underground and surface mines, quarries and the operation of oil and gas wells and all
supplemental activities for dressing and beneficiating for ores and other crude materials.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
49
There are some mining activities in Hantam LM, which includes salt and gypsum mining, but neither
contributes much in the way of jobs or economic growth in these areas. The geological composition
of the Hantam area does not lend itself to large-scale mining operations. The unexploited mining
potential for Hantam lies largely in the north of the municipal area. The mining activities that take
place within Hantam LM include:
Salt (around Brandvlei and Loeriesfontein) - salt are packed into 50kg and 1 tonne packs on
salt mine premises
Gypsum (around Brandvlei and Loeriesfontein)
o The demand for gypsum is dependent on the demand for cement (7% of a bag of
cement constitutes gypsum)
Ceramic clay (around Calvinia)
Quartzite, sandstone, silt and shale (around Nieuwoudtville)
The following is a list of LED projects/opportunities identified in the Hantam IDP and SDF as well as
additional identified opportunities within the Mining Sector:
Current Projects and/or Opportunities
Identified in the IDP and SDP
Opportunities
Establish stone project in Loeriesfontein Some of the minerals within the Hantam LM have never been exploited, these include:
Salt, gypsum, cobalt, copper and lead deposits west of Brandvlei
Copper west of Loeriesfontein
Salt and gypsum around Brandvlei and Loeriesfontein
Feasibility studies would need to be conducted if these opportunities were to be taken forward. Careful planning needs to be done with regard to water provision and upgrade of roads if these mining ventures are to be explored further. The limited amount of skilled people in Hantam may pose a threat to the sustainability of small-scale. Beneficiation of raw mining materials should be considered as a future prospect, as well as aiding small-scale mining SMMEs
Salt processing – feasibility study required in
Brandvlei
Salt production project – Loeriesfontein,
Brandvlei
Gypsum production in Loeriesfontein
Stone mason’s project - Loeriesfontein, Brandvlei
Annexure C contains additional information regarding operating status of mines and quarries
as well as mineral deposits.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
50
4.9. Electricity, gas and water
This sector includes the supply of electricity, gas and water, the production, collection and
distribution of electricity, the manufacture of gas and distribution of gaseous fuels through mains,
supply of steam and hot water, and the collection, purification and distribution of water.
Figure 14 below indicates the year on year growth performance of the electricity, gas and water
sector for the period 1995 to 2009 in the Northern Cape Province, Namakwa District and the Hantam
Local Municipality.
Figure 14 - Electricity, Gas and Water Sector Growth Performance
(Source: Quantec Data 2010)
From Figure 14 it is evident that the electricity, gas and water sector’s annual growth varies year-by-
year, indicating vulnerability to external shocks such as climate and currency fluctuations. Between
2001 and 2009, the Hantam LM’s electricity, gas and water sector averaged an annual growth rate of
just 10.9%. The Hantam LM has experienced a higher annual growth rate than both the District and
Province since 2001.
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
Northern Cape Namakwa DM Hantam LM
This sector includes the supply of electricity, gas and water, the production, collection and
distribution of electricity, the manufacture of gas and distribution of gaseous fuels through
mains, supply of steam and hot water, and the collection, purification and distribution of
water.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
51
The average annual precipitation for Hantam LM is 198.36mm per year as measured at
Loeriesfontein Debrak rainfall station over the period 2005-2010. The western part of Hantam LM
consists of rugged, mountainous terrain where the Bokkeveld and Roggeveld escarpment veers
upwards towards the interior and winter rainfall patterns deliver up to 600mm per year. However,
this feature does not extend across the entire area as the south western corner consists of a portion
of the Tanqua-Karoo area which is characterised by low lying rocky plains that receive as little as
50mm rainfall per year (HLM SDF 2010). Groundwater is the main water source for this region:
Calvinia’s water supply is primarily from the Karee Dam with seven boreholes for emergency
water provision. However, water quality from these boreholes is poor. The maximum potential
abstraction from the three boreholes with better water quality is 1.171 Ml/day but this is
unsustainable. The town also has a 1.3 megalitre reservoir with a 10 hour storage capacity.
Nieuwoudtville obtains water from four boreholes. The borehole yields range from 0.5 to 4.5 l/s
for 12 hours a day. Unfortunately, the water supply is primarily via asbestos pipes which
frequently break and as a result the upgrading of the towns internal water network is a priority.
Loeriesfontein obtains water from seven boreholes via a 0.45 and a 0.50 megalitre reservoir. The
combined yield capacity of these boreholes is 150 kl/day, minimum, or 0.055 million m3 per
annum. There is sufficient water supply for the next 5-10 years depending upon growth of the
town.
Brandvlei obtains water from four boreholes which lie approximately 45km to the south-east of
town. The annual abstraction is reported at 0.13 million m3 per annum with borehole yields of 1
to 1.3 l/s for 24 hours per day. An additional borehole which lies approximately 52km south east
of town pumps water to a reservoir from which water gravitates to the town. There are two
reservoirs on the northern boundary of the town which have a combined storage capacity of
0.43 megalitres
Water is a scarce commodity in Hantam and effective water management is essential. The effect of
agriculture along river banks (refer to Map 5 below), in the form of extensive vegetation clearance
and overgrazing, has paved the way for the incursion of alien trees (red river gum, black wattle,
oleander, mesquite, grasses), which clog up the catchment area and use up much of the meager
water resources. It is important for the Hantam LM to focus upon its river systems and water
catchment areas that are found in high lying region, in order to safeguard water availability for all
who depend upon it.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
52
Map 5 – Perennial Rivers
(Source: GIS Mapping, Department Water Affairs 2011)
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
53
Innovative water saving technologies should be implemented and the storage of water
should be a priority. A rainwater tank “is a water tank which is used to collect and store rainwater
runoff, typically from rooftops via rain gutters” (Wikipedia: Rainwater Tanks 2009). This can reduce
the amount of water used from a household’s main water supply, thereby reducing a household’s
water bill and conserving the environment by putting less pressure on scarce water supplies.
Rainwater is also less salty than dam water and therefore is much better for the garden and
appliances like washing machines (Rainwater Tanks Direct 2009). In South Africa the cost of
rainwater tanks can be quite high therefore households can receive rebates (between R1,800 –
R7,000) from government for their rainwater tanks (SA Water 2009).
Eskom is the main supplier of electricity in Hantam LM and electricity is provided in all the towns
although the electricity networks require attention, particularly in the smaller towns of
Nieuwoudtville, Loeriesfontein and Brandvlei. Nieuwoudtville is the only town in which the Hantam
LM provides electricity. The rural areas are, to a large degree, dependent on power from Eskom.
Almost all households are supplied with electricity, with the exception of Middelpos where the
Hantam LM supplies indigents with paraffin and wood.
The Namakwa DM has a competitive advantage in the energy sector, with wind, solar, wave, nuclear
and natural gas energy plants all having been identified for the area. Renewable energy has become
a global priority and there is potential for both wind and solar power within the Hantam Local
Municipality:
Eskom is the main supplier of electricity in Hantam LM and electricity is provided in all the towns
although the electricity networks require attention, particularly in the smaller towns of
Nieuwoudtville, Loeriesfontein and Brandvlei. Nieuwoudtville is the only town in which the Hantam
LM provides electricity. The rural areas are, to a large degree, dependent on power from Eskom.
Almost all households are supplied with electricity, with the exception of Middelpos where the
Hantam LM supplies indigents with paraffin and wood.
The Namakwa DM has a competitive advantage in the energy sector, with wind, solar, wave, nuclear
and natural gas energy plants all having been identified for the area. Renewable energy has become
a global priority and there is potential for both wind and solar power within the Hantam Local
Municipality:
Map 6 below indicates solar power potential of South Africa.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
54
Map 6 - Solar Power Potential (SA)
According to the Energy Outlook SA Report (2002:XV) the Northern Cape has some of the world’s
best conditions for solar power. A small 6.1 KW solar energy system will provide 8,721 KW hours of
energy per annum, saving 6.6 tons of carbon from going into the atmosphere and would be the
equivalent of planting 4.4 acres of trees. The only disadvantage is that the solar power system is
expensive (around R22 per watt) and would need some form of battery storage to ensure energy
during heavy winter periods (Eskom: Solar Power 2009). Solar water heaters can save up to 4.5 kWh
per household per day; which works out much cheaper than a geyser in the long run (a saving of up
to 90% of your water heating costs). Solar water heaters are very expensive (R6,000 – R20,000 per
household) but they save 6,500 GWh per year, which will save money in the long-term. The solar
water heaters use the sun’s energy to heat the water but they still contain an electric element if
there is insufficient solar power. Solhart South Africa has partnered up with Eskom to provide
rebates for households that purchase a solar water heater (up to R4,917). Besides energy
replacement with a solar energy system you can also get a solar cooker. These cookers don’t need
full sunlight and can even work at night. The only foods that you can’t be made in a solar cooker are
pasta dishes and any deep-fried meals, so a person should not replace their conventional cooking
appliances. Solar cookers take much longer to cook your food but they can cut your cooking energy
costs by one-third
The Map 7 below indicates the wind potential of South Africa.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
55
Map 7 - Wind Potential (SA)
(Source: Wind Watts Turbines 2011)
Wind power is one of the cleanest energy resources of electrical energy, but it also requires a place
to store its energy (i.e. in batteries) and it usually needs a constant wind that comes from one
direction at a time. Before wind farms can be constructed the following issues need to resolved:
Site location
Legal rights – up to 22.2 km distance from a countries shore belongs to the national
authorities.
Coastal Zoning
The following is a list of LED projects/opportunities identified in the Hantam IDP and SDF as well as
additional identified opportunities:
Projects and Opportunities Identifies in the IDP
and SDP
Opportunities
Eradication of the Prosopis tree – Werk vir Water
Project. Prosopis wood can then be processed
into charcoal (Nieuwoudtville)
Alien vegetation should be removed from along
river banks (specifically Prosopis).
Storm water project – temporary job creation
Effective water management is essential. Water
sources and water infrastructure within the
Hantam LM area should be improved
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
56
Projects and Opportunities Identifies in the IDP
and SDP
Opportunities
Solar Energy Facility – the site proposed for the
solar energy facility is located on the farm
Kaalspruit (Portion 8 of the farm Kaalspruit 283)
on the outskirts of Loeriesfontein.
Innovative water saving technologies should be
implemented and the storage of water should be
a priority (rainwater tanks & grey-water
recycling)
Biodiesel from alien trees
The Hantam LM has the opportunity to position
itself strategically within South Africa’s
renewable energy production. Pre-feasibility
studies have shown that wind, and solar energy
plants are suitable given the climate and
geography of the Municipality.
There is potential for the roll-out of solar cookers
and solar water geysers within communities of
Hantam.
It is difficult for labour to access job
opportunities with no transport and, in terms of
skills; there is a need for greater education and
training.
4.10. Community Services
Services such as health, social work and educational services are prioritised in local and district IDPs
and through the Moral Regeneration Movement. Throughout all local and the district IDPs
government services are prioritised, particularly to address backlogs in basic services, transport, as
well as safety, security and correctional services.
Over-dependence on the services sector is risky, however, as a strong tax base is a pre-requisite for
funding for many of these services, and a strong tax base, in turn, requires a strong and growing
private sector economy. The Expanded Public Works Programme (EPWP) is proving very successful in
the Namakwa DM, with roads undergoing resurfacing and/or tarring for the first time. There is an
The community services sector includes public administration and defense activities, activities
of government, government departments and agencies; education, public and private; health
and social work; sewage and refuge disposal, sanitation and similar activities; activities of
membership organisations; recreational, cultural and sporting activities; washing and dry-
cleaning of textiles and fur products, hairdressing and other beauty treatment, funeral and
related activities
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
57
expressed need for the EPWP concept to be expanded to meet other infrastructural and service-
delivery objectives.
There are a total of 17 schools in the municipal jurisdiction area of Hantam LM and these include
primary and secondary level schools. There are skills development and training/tourism centres (i.e.
tourism guides, utilisation of libraries for UNISA, training, communication, internet facilities) in
Nieuwoudtsville and Calvinia. Table 22 below indicates the social infrastructure found in Hantam
LM.
Table 22 - Social Infrastructure (Hantam LM)
Social Infrastructure Calvinia Nieuwoudtville Loeriesfontein Brandvlei
Crèche 2 0 1 1
Primary Schools 3 1 2 2
Secondary Schools 2 1 0 0
Tertiary Education 0 0 0 0
Police Station 2 1 1 1
Hospital 1 0 1 1
Clinic 1 1 1 1
Mobile Clinic 1 0 0 0
Libraries 1 1 1 1
Cemeteries 2 1 2 2
Sports & Recreation 8 1 4 3
Arts & Culture 1 0 1 0
(Source: Hantam IDP 2010)
Calvinia is the largest town in the Hantam LM. Facilities in Calvinia include a police station, and
medical facilities, i.e. hospital, clinic and mobile clinic.
Nieuwoudtville, which is situated on the western boundary of the Hantam LM, has facilities in
the town which include a police station and a clinic.
Loeriesfontein lies to the north west of Calvinia and offers various facilities which include a
police station, hospital and medical clinic.
Brandvlei is a small town situated on the north-eastern boundary of Hantam LM and has
facilities in the town which include a police station, medical facility (hospital) and a mobile clinic.
Strategically located community health care centres bring some relief to the health sector; however
a definite need exists for an additional clinic and mobile clinic, as well as the need for a community
centre in Calvinia.
According to the information highlighted in the Socio-Economic Analysis (as part of this report) the
following can be highlighted:
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
58
Housing – According to the Local IDP (2010/2011) Hantam has a housing backlog of 730 houses.
According to standardised regional data (Quantec, 2011), the portion of households resident in
informal dwellings in the Hantam LM (253 households according to the IDP 2010/11), is less than
that of the District and Province.
Electricity – Only urban areas within the Hantam LM have access to electricity and rural areas
thus have to rely on other means. Households’ resident in Middelpos (26) have no access to
electricity and are supplied with wood and lamp oil. In comparison with the District, household’s
resident in Hantam has less significant access to electricity.
Refuse Removal – The portion of households with access to refuse removal by local authority
within the Hantam LM (83.2%) are less than those resident in the Namakwa District (87.1%).
Appropriate Sanitation – The portion of households resident within the Hantam LM (76.1%)
haveve a higher access to appropriate sanitation (chemical or flush toilet) than both the District
(74.7%) and Province (67.8%). According to the local IDP (2010/11) there are still 55 bucket
system toilets within the Hantam Municipal area.
Piped Water – The portion of households resident in Hantam with access to piped water less
than 200 meter from their dwelling is only slightly less (93.3%) than the District average (93.8%).
According to the Hantam IDP (2010/11) all residents of the Hantam LM have access to water on
their property.
The Hantam IDP 2010/2011 identifies the following top priority areas in terms of infrastructure:
1. Housing
2. Supply of sufficient, good quality water
3. Maintenance of roads and storm water systems
4. Street lighting
The following is a list of LED projects/opportunities identified in the Hantam IDP and SDF as well as
additional identified opportunities within the Sector:
Planned Projects in the IDP and SDP Opportunities
Middelpos – Planning and measuring of 40 erven. There are opportunities then to focus on better educational opportunities, better health services, upgrading roads and communication infrastructure, and increasing job opportunities to improve the tax base of the municipality.
Nieuwoudtville – Planning, measuring and
servicing of 72 erven.
Nieuwoudtville – Upgrading of bulk electricity
and water network. Service of vacant erven for
housing. Development of new/additional water
sources.
Calvinia – Plannning and measuring of 300 erven,
service of vacant erven for housing. Upgrading of
bulk electricity and water network.
Calvinia – Plannning, measuring and servicing of
erven. Upgrading of bulk electricity and water
network.
Loeriesfontein – Upgrading of Sports Hall Loeriesfontein –– Upgrading of bulk electricity
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
59
Planned Projects in the IDP and SDP Opportunities
and water network. Service of vacant erven for
housing.
Brandvlei – Upgrading of bulk electricity and high
mass lighting (phase 1)
Brandvlei –– Upgrading of bulk electricity and
water network. Upgrading of roads. Service of
vacant erven for housing.
Middelpos – Develop to same standard of
surrounding towns. Electrification of households.
Development of new/additional water sources.
Upgrading of roads.
Skills Training Centre with a database of local labour & skills that can be used by outside contractors or local businesses. The old Voortrekker Hospital in Calvinia can be used as a base.
There are some projects that are already taking place within the Hantam LM area:
Training Centre in Calvinia, for basic life skills, care of the elderly, catering, crèches
Driving school – Calvinia
Multi-purpose Community Centre in Calvinia
Loeriesfontein housing project – ASLADEFCO
o This has been a project since 1999, but the contract to construct 307 houses was signed
in February 2011
4.11. Tourism
Tourism is not an economic sector on its own (as classified by the SIC), but forms part of other
sectors especially the trade, transport and finance sectors. However, due to its increasing
importance as an income and employment creator in South Africa, it is believed that this industry
should be discussed separately from the other sectors.
A significant economic factor of the Namakwa DM’s economy is “flower” tourism that is based on
Namaqualand’s fantastic annual wildflower displays that cover regions in a kaleidoscope of colour
Defining the tourism industry is therefore difficult as it includes many different sources of
goods and services. The World Trade Organisation’s definition of tourism states that ‘tourism
comprises the activities of persons travelling to, and staying in places outside their usual
environment, for not more than one consecutive year, for leisure, business and other
purposes. The usual environment of a person consists of a certain area around his / her place
of residence, plus all other places he / she frequently visits” e.g. the workplace.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
60
each spring July – October). This is a distinctly seasonal aspect of the economy, lasting only eight to
ten weeks, and being highly dependent on the timing and duration of the previous winter rains.
However, there are indications that in recent years the regional ecotourism industry is diversifying
(e.g. 4x4 and nature tourism) with greater numbers of tourists arriving throughout the year. The
Namakwa DM has tourism potential in terms of the following niche markets:
Eco-tourism – vast open land, unique natural flora and a number of national parks and
conservancies.
Adventure tourism – 4X4 trails, hiking & fishing, particularly if linked to the south-north
route from the Western Cape into Namibia.
Historical and cultural tourism – the rich heritage of the Khoi San/Nama people, as well as
the mining museums which showcase the history of Diamond Mining and settlement in the
area.
Technological tourism – the South African Large Telescope (SALT) at the South African
Astronomical Observatory in Sutherland, as well as the SKA radio telescope project.
Energy tourism – if the wind and solar farms are developed.
Calvinia lies at the foot of the Hantam Mountains and is the region’s key growth point and one of the
country’s largest wool-producing areas. Calvinia hosts the annual Hantam Meat Festival which is a
celebration of the sheep farming activities that are the predominant livestock farming activity in the
Municipality. The festival also showcases Afrikaans culture with music shows and an array of local
food specialities. Attractions in Calvinia include Anglo-Boer war remnants, Hantam House, Khoisan
rock paintings, the museum, a historical trail, and various 4x4 routes along the escarpment with
breath-taking views. There are also bushman paintings along the riverbed and huge Namaqua fig
trees clinging to rock surfaces. The following natural features are found in the area:
The Hantam Mountain outside Calvinia is the highest peak in the Northern Cape Province.
The Akkerendam Nature Reserve is a 2,750 ha reserve located at the foot of the Hantam
Mountain and contains both Mountain Renosterveld and Western Mountain Karoo
vegetation types. The reserve was established in 1962 and serves as an important catchment
area for the nearby town of Calvinia. Although it is a Type 2 conservation area, it is a key
area for conservation owing to the many endemic plant species located on the mountain
within the reserve.
Near the town of Calvinia you can find the Tankwa Karoo National Park with a wide range of
endangered plant specifies distinctive to this area. The park provides a unique birding
experience and a variety of other wildlife. The Tanqua Karoo National Park is 121,000 ha in
size.
i.e. Anglo-Boer war remnants, rock paintings, a museum, historical trail, meat festival, 4x4
routes etc
Nieuwoudtville is both unique for its spectacular wild flower display during spring and autumn and it
also has the richest concentration of bulb species in the world, hence its designation as “The Bulb
Kingdom of the World”, Nieuwoudtville therefore attracts nature lovers and botanists alike. Other
interesting sites in Nieuwoudtville include the Neo-Gothic sandstone church, which is a national
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
61
monument, local historical sandstone ruins, aloe forest and glacial rock striations dating back to the
Permian Era of 280 million years ago, abundant rock art, the Nieuwoudtville Wild Flower Reserve,
Oorlogskloof Nature Reserve and the Waterfall Reserve. Outdoor activities include bird watching,
hiking, cycling, 4x4 routes, hand and paragliding and stargazing. The following natural features are
found in the area:
The Kokerboom Forest just outside Nieuwoudtville is a one of a kind phenomenon, and is
the largest collection of Kokerboom’s in the world.
The Nieuwoudtville waterfall is a remarkable feature in such an arid area.
The Bokkeveld Plateau contains the greatest diversity of geophytes in the world – the
autumn lily flower display on the dolerite soils around Nieuwoudtville is particularly unusual.
The Oorlogskloof Nature Reserve is located 6km west of Nieuwoudtville, and just on the
peak of the escarpment, is 4,789 hectares in size and a renowned hiking destination, with an
extensive network of trails running throughout.
The Hantam National Botanical Gardens are approximately 8,000 hectares in size and it is
the first botanical garden in the country that retains its natural landscape, and contains a
remarkable concentration of bulbous plant diversity – 309 species of Geophytes have been
confirmed in the area.
Loeriesfontein is also best known for its beautiful spring flowers which characterise the region
during August and September. If rains are good, the flower season will last into October and this is
the month for the “vygies” which cover large areas in a spectacular lilac, pink and red carpet.
Loeriesfontein also boasts a unique Windmill museum, one of only two in the world. This quaint little
town offers the Windmill Museum, which exhibits the culture and historical way of life of Trek
Farmers in the region and a farm museum on the farm Rheboksfontein which includes a
“perdemeul” (horse-mill) which is still in working order. Another unique attraction of Loeriesfontein
is the Gannabos or Quiver Tree Forest which is home to the largest and most southern colony of
Aloedichotoma. These giant aloes reach a height of 4 metres and store water in their trunks enabling
them able to resist drought indefinitely.
The town of Brandvlei is dominated by a large Dutch Reformed Church built in the Neo-Gothic style.
The larger region is known as “The Thirstland”, it is flat and interspersed with huge salt pans which
are transformed into bird sanctuaries after the summer rains (Nov-March). Local attractions in
Brandvlei are the salt pans after summer rains and Lekkerlê and Kans, two farms which exhibit
splendid San rock engravings. The proposed !Xam Tentative World Heritage Site could have huge
tourism potential for Brandvlei in the future.
Tourism should be viewed as the main growth point for the region as it is the main driver behind
boosting the money supply of marginalized towns. Tourism in the region can be catalyzed by the
natural environment that provides for unique landscapes rich in wildflowers in the spring. Because
the flower season is short, however, more sustainable tourism activities should be promoted that
can ensure a continuous stream of travellers to the region.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
62
Towns that are part of the commuting route between Cape Town and Upington should also adopt
more proactive strategies to attract more passing tourist trade by focusing on consolidating tourist
related shops and restaurants in a closely defined area. This might, in turn, inspire long distance
travellers to stay overnight at local guesthouses, in particular around Calvinia and Nieuwoudtville,
but even as far as Brandvlei where the town lags very far behind in terms of promoting tourist-
related activities. Identified transport corridors include the:
1. Nieuwoudtville-Calvinia-Williston corridor consisting of the R63 tar road and railway
link between Calvinia, Williston and Carnarvon.
2. Nieuwoudtville-Calvinia-Brandvlei-Kenhardt corridor consisting of the R27 tar road
leading from Cape Town to Upington
The “Rooibos Heritage Route” between Nieuwoudtville and Wuppertal along the R364 road, offers
experiences ranging from guided hikes to exploring rock art and medicinal plants, courses on baking
of traditional bread and harvesting your own wild Rooibos tea. This is a typical agri-tourism initiative
that will play a major role in edu-tourism, providing information on the natural environment, culture
and conservation of the region and the community.
The R355 linking Calvinia to the south with Ceres and the Western Cape is also the link to the
Tankwa National Park via the Hex River Mountain and the possible upgrade of this road could unlock
the tourism potential of Hantam LM.
Commuter tourist behaviour suggests that most commuters will only break their commute once in
any one town, which points to the need to locate restaurants and shops within walking distance of
the fuel stations. In terms of tourism development, it should be noted that tourism marketing of the
region is extremely weak. Websites associated with the floral kingdom, rooibos routes, etc., make
little reference to the actual driving directions to reach the region and ways to contextualize the
drives in terms of time and distance and logical points to stop over. Destination marketing
approaches should be taken for key towns on these routes and resources should be focused there to
promote tourism facilities.
The tourism sector in Hantam LM is not fully developed. Marketing of the area is poor and most of
the attractions do not keep tourists in the towns for longer as 1 or 2 days.
The following is a list of LED projects/opportunities identified in the Hantam IDP and SDF as well as
additional identified opportunities within the Tourism Industry:
Projects and Opportunities Identifies in the IDP
and SDP Opportunities
Holiday resort – caravan park, day visitors &
chalets (integrate dam) for Nieuwoudtville
A tourism strategy for the Hantam LM that is linked to tourism strategies of the other Namakwa DM areas will improve the linkages between attractions. Through linkages with tourist destinations in the Western Cape and
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
63
Projects and Opportunities Identifies in the IDP
and SDP Opportunities
Namibia there is potential to create hubs and joint initiatives in the area.
Development of the Nieuwoudtville Waterfall Clustering tourism initiatives in the area is
important. The tourism industry needs to become
more unified and offer more to tourists in order
to encourage long-stay visitors to the area.
Compile a local events calendar to link tourism initiatives in the District and Province.
Establish a bakery in Middelpos Arts and crafts
Recreation resort in Calvinia, including
empowerment of new tourism operators
Museum in Brandvlei
Research the possibility of establishing a Planetarium in Hantam.
Holiday resort in Nieuwoudtville, including
empowerment of new tourism operators
It is difficult for labour to access job opportunities
with no transport and, in terms of skills, there is a
need for greater education and training.
Rooibos Tea Route (Agri-tourism). The Hantam LM will need to implement strategic
plans to attract tourists through target marketing,
the improvement and expansion of tourism
services and facilities, and to facilitate
collaborative agreements with Cape Tourism and
Namibia Tourism.
Upgrade of the Oorlogskloof Reserve (in process) Better support of SMMEs to start their own businesses and continual support to ensure the sustainability of these ventures is vital.
4.12. Other Opportunities
The above opportunity scan only focussed on four of the nine economic sectors as well as the
Tourism Industry. The fact that the other sectors were not included in the opportunity analysis does
not mean that these sectors have no potential for development within the Hantam LM but rather
that these five sectors have less potential for development.
4.13. Addressing LED Constraints
Some of the weaknesses identified in the SWOT analysis are not controllable, such as climate.
Others, however, can be managed and improved as part of a comprehensive strategy to address
supply-side factors and attract investors. Furthermore, many of the threats identified are similarly
not easily controllable. They can, however, be monitored and, for example, attempts can be made at
halting degeneration (that is gradual decline and closing of certain economic activities). This section,
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
64
thus, deals with addressing internal constraints to LED, and with regenerating sectors suffering
decline. In order to support and enhance the viability of LED projects in the Hantam Local Municipal
area an “integrated development platform” or a generally enabling environment is needed. This will
require addressing, where possible, major constraints to economic development, such as:
The state of municipality in terms of service provision. This includes human and financial
capacity to deliver basic services to the population. This cuts across the roles of the Namakwa
District Municipality, the Hantam Local Municipality, and the other local municipalities.
The status of institutions. The Hantam LM is extremely willing to undertake LED initiatives but
none-the-less, there remains much room for improvement in terms of the human and financial
capacity to undertake feasibility studies, draw up business plans and attract suiTable investors
for LED projects.
Available infrastructure. Infrastructure is a major constraint to LED in the Hantam Local
Municipality. Efforts to improve road, rail, and transport are essential. This can continue to be
achieved through the EPWP, thus ensuring that local benefits of any infrastructural construction
work are maximised.
Spatial orientation. The large geographic area covered by Hantam Local Municipality is an
inherent challenge to LED in the area. The effect of this can, however, be limited to a certain
extent through the use of modern technology (i.e. improved telecommunications infrastructure
and skills are needed) and through improved transport infrastructure and services.
Environmental constraints. There are a number of Protected Areas in the Hantam Local
Municipality. These are, however, seen as valuable tourism and environmental assets.
Land availability. Land reform is seen to be failing in the area, as claims take years to be
processed and many land claim beneficiaries have failed at attempts at farming, for example.
These are issues that require creative, collaborative solutions that ensure that land use patterns
reflect the economic and social goals of the Hantam Local Municipality.
Supporting institutions. This is an area which is a severe inhibiter of economic development in
the Hantam Local Municipality, which lacks tertiary education and research and development
institutions. Those who can afford to, leave the area for other provinces with better educational
facilities, many of whom do not return. This has a negative impact on the quality of labour in the
Hantam Local Municipality. If the Hantam Local Municipality is to realise its goal of diversifying
the economy by incorporating more secondary and tertiary economic activities, tertiary
education needs to be prioritised through bursary programmes.
Water supply potential. Water supply in the area is limited and any developments need to take
cognisance of this limitation and implement environmentally friendly and water-efficient
building, manufacturing and farming technologies.
Power supply. The Hantam LM faces the same energy constraints as the rest of South Africa,
placing a limitation on any extremely energy intensive projects. Furthermore, the dispersed
nature of the area is reflected by the energy distribution grid and new developments in
previously underdeveloped areas will need to take cognisance of costs related to extending
distribution systems.
Degenerating industries. The mining sector is under constant threat from local factors (such as
the Eskom crisis and Rand volatility) and international demand factors (with 2008/9 seeing a
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
65
decline in demand for commodities, for example). Furthermore, natural resources are finite and
all mines reach a point where it is no longer viable to continue extracting the few deposits that
remain.
The Namakwa DM has a number of projects that aim to support overall LED within the District,
including a Business Database which is up and running, an active LED Forum, and an active SEDA.
There are plans in place to undertake road shows aimed at informing the public of available business
development and business support services available to local SMMEs and entrepreneurs.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
66
SECTION 5: INSTITUTIONAL FRAMEWORK
5.1. Introduction
This section is an overview of the current status of institutional arrangements as well some guidance
on moving towards an ideal structure for the Hantam Local Municipality. This section will present
practical recommendations for attracting investment in and steering the successful implementation
of prioritised projects (Section 6).
LED is a cooperative developmental effort between government, the private sector and civil society.
It is not a specific action or programme, but occurs when a spectrum of stakeholders harness their
individual resources and ideas to strive for a better economic status within a locality. Thus, all the
stakeholders have responsibilities and roles to play in the process. The roles and responsibilities of
the various tiers of government, as well as civil society, in the Hantam LED Strategy are outlined in
Annexure D.
5.2. Status of LED Structures
5.2.1. Namakwa District
Every municipality has an organised structure in which all the different Departments are classified.
Figure 15 below provides a graphic illustration of the Namakwa District Municipality’s organisational
structure.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
67
Figure 15 - Namakwa District Organogram
From Figure 15 it is evident that the Namakwa DM as an organisation is structured into five main
Departments, namely Economic Development, Social Development, Infrastructure Development,
Institutional Development and Planning. The Department of Economic Development can further be
broken down into four main areas which include Tourism, Economic Development and Marketing,
Law Enforcement and Working for Water.
5.2.2. Hantam Local Municipality
The Hantam Local Municipality consists of the following departments:
• Financial Officer
• Infrastructure Development
• IDP/LED
• Social Development
• Institutional Development
Mu
nic
ipal
Man
ager
Economic Development
Tourism
Senior Tourism Officer (1)
Tourism Officers (3)
Economic Development and
Marketing
Marketing Officer (1)
Law Enforcement Law Enforcement Offcers (2 Vacant)
Work for Water Project Manager
(1)
Assistant Project Managers (1 Filled,
1 Vacant)
Administrator (1) Social Development
Community Services
Infrastructure Development
Roads
Projects
Institutional Development
Human Resources
Administration
Finance Planning
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
68
Figure 16 provides a basic illustration Hantam Local Municipality’s organisational structure.
Figure 16 – Hantam Municipal Organogram
The Hantam Local Municipality’s LED/IDP Department functions directly under the Municipal
Manager and employed one individual, namely the IDP/LED Manager. In terms of funds, the Hantam
LM has no funds allocated to LED projects and all projects are therefore reliant on funding. Due to a
number of constraints it is difficult for Hantam to undertake activities beyond service provision.
These constraints include the lack of funds, a shortage of skilled staff, and lack of experience with
LED. Hantam lack the resources to establish a dedicated LED unit or department and should as an
alternative consider the establishment of LED committee, which could oversee the economic
development process.
Current capacity should be optimised through capacity building within the Municipality, which would
entail either Training Programmes or Capacity Building Programmes. Training programmes educate
and update the knowledge of the LED committee, whereas Capacity Building Programmes are aimed
at providing support and guidance for the LED committee.
5.3. Support Structures
Support structures play an important role in the development of an institutional blue print of the
Local Economic Development Strategy. These support structures will help facilitate the various
programmes in LED implementation processes and initially clarify the different roles and
responsibilities. This will ensure that there is an understanding of the institutional implication for the
further development of the LED Strategy within the Local Municipality and assist with the process of
spatially referencing economic development in the long run.
5.3.1. The Municipal LED Forum
Hantam Local Municipality does currently have an LED Forum, although currently non-functional.
The Municipal LED Forum should ideally consist of Municipal Departments and Directorates,
Organised Businesses in the Municipality, Civil Society, representatives from the District Municipality
and the Local Municipal LED Manager.
Municipal Manager
Financial Officer Infrastructure Development
IDP/LED Social
Development Institutional
Development
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
69
The following will be the main objectives of the LED Forum in Hantam:
1. To maintain an effective partnership with Provincial government sector Departments as
well as the Namakwa District Municipality and neighbouring Local Municipalities.
2. To ensure private and public inclusion within public development programmes, plans,
initiatives and strategies.
3. To define LED in the context of Hantam’s local context towards the end of establishing
ownership of the Forum and its activities among all role players and stakeholders.
4. To ensure equal support by all members for development programmes being planned
for and implemented by the Public and Private sector.
5. To establish functional and professional relationships between all the members of the
Forum.
6. To identify the challenges of managing, implementing and sustaining LED locally and
thereby prioritising the Forum’s responses to these challenges.
7. To promote LED within Hantam towards the benefit of all its citizens.
8. To manage the Forum in such a way that it would serve as a conduit for information
sharing relating to LED in the area.
Members of LED Forum will include (but not limited to) the following entities:
Hantam LED Committee
Representatives from various government departments (ideally District and/or Provincial
Departments are important)
Business Chambers
Sector Committees
Private Sector
Community Groups
The LED Forum needs to meet on a quarterly basis, or when required on a more regular basis. The
following are the responsibilities of the Hantam LED Committee:
Coordinating the meetings
Ensuring communication between the various stakeholders
The LED Forum meetings need to be held at various venues (to ensure that stakeholder in various
parts of Municipality do not travel all the time and use this as an excuse not to attend the meetings).
These meetings will also be coordinated according to a set agenda, which will guide the LED Forum
meeting. The issues raised and decisions made at the various meetings need to be recorded in order
to keep a record of all decisions made regarding economic development in the Municipality.
5.3.2. Namakwa District Municipality
The Namakwa District LED Unit is responsible for coordinating LED Planning across the district and
providing assistance to the Local Municipalities within its area of jurisdiction. This includes:
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
70
1. Providing assistance in co-ordinating and integrating the Hantam LED with district planning.
2. Providing Hantam with assistance in LED planning and implementation. This is especially so
with regards to district LED Anchor Projects.
3. Provide Hantam with the necessary assistance to coordinate regional role players and other
Local Municipalities.
4. To lobby Provincial and National Government for additional LED support on behalf of
Hantam.
5. To avail technical and financial resources to Hantam for LED implementation.
6. To market the investment opportunities of the district domestically and internationally.
7. To ensure that proper communication protocols exist between the District Municipality,
Hantam LM and the Hantam LED Forum.
5.3.3. Other Dedicated Vehicles
The projects identified in the opportunity analysis are a mixture of public and private sector projects.
However some projects would require a dedicated vehicle other than the possibilities mentioned in
the above subsections. Other vehicles would include Social and Labour Plans; Public-Private
Partnerships PPP’s and Trusts. These will be discussed in more detail when once the projects have
been identified.
5.4. Doing Business in Hantam LM
Investors will look at aspects such as:
1. The quality and extent of hard infrastructure such as road and rail networks, airports and
harbours. These factors will impact on the direct input/start-up costs, as well as the
operational costs of business, and therefore impact on the overall potential for financial
return on investment.
2. The sophistication of local telecommunications, banking and finance services similarly
impact on the input and operational costs of doing business. This is also an indicator of the
area’s ability to keep “up-to-date” with innovative technological and other developments,
which has implications for the long-term desirability of an investment in the NDM.
3. The extent to which spatial and land planning policies and documents are flexible to the
needs of businesses and the relative ease of following land planning processes, such as
rezoning applications. The existence of sufficient and appropriate types of land and/or
buildings and the ease (time and cost) of administrative processes relating to land planning
are key factors influencing the attractiveness of an investment. Appropriate incentives
and/or support for suitable land rezoning and development must be clear to potential
investors, while at the same time the NDM’s ongoing dedication to ensure the sustainable
use of its key natural resources and heritage should not be undermined.
4. The sophistication of the public sector. Overall, the general status of public sector services,
including healthcare, education, safety and security impacts on the “quality of life” aspect,
as well as the quality of labour, In addition, investors desire of municipalities professional
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
71
services delivered by suitably qualified, efficient and informed officials. Access to
information such as medium and long term planning documents (spatial, infrastructural,
economic and others) is crucial in showcasing what the area will offer investors in the
longer-term.
5. The quantity and quality of available labour and training programmes, in relation to the
specific human resource requirements of investors. This relates to the health, education and
skills levels of the local workforce. Connected to this is the community’ openness to
entrepreneurship – the existence of and potential for local SMMEs to be integrated as part
of the supply chain of larger investment projects during development and/or operation.
6. Quality of life factors, such as the supply of housing and personal lifestyle facilities (such as
educational, cultural and recreational services) also have an impact on the attraction of
particular investment.
The main inhibiter to doing business in Hantam relates to the geographic nature of the Municipality,
which limits access to services such as telecommunications, transport (especially of cargo, but also of
labour), finance and banking services, educational and health facilities and so forth. Small
communities fail to provide economies of scale for such services. The Figure below shows an over-
simplified view of the scenario.
Much of this relates to “improving quality of life” within the Municipality. With a growing and
diversifying economy, each of the above factors will gradually begin to improve:
Interventions aimed at providing households with transport (public transport programmes)
bring communities closer together.
Small dispersed,
isolated communities
Poor and subsistence-
based households
No economies of scale to
retailers and service
providers
No access to services and products to
grow economy internally
Little/no investor
interest (no markets, no
skills, no suppliers)
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
72
Economies of scale can now be reached with some basic services and goods, as communities
are more connected. As a result, clinics, schools, colleges, shopping malls, banks and
telecommunication service providers’ operations become more feasible.
Households now have increased access to educational, health, personal and financial
services.
SMMEs can tap into new/emerging markets, supported by a growth in local financial
services.
Investors have access to a more mobile and better educated/trained labour force.
Demand for further improvements to services and goods in the area increases as investors
enter the area.
So the cycle continues with incremental increases in demand and supply for various public
and private sector goods and services.
As can be seen, initial interventions are needed in order to catalyse changes in the economy of the
Municipality. This requires deliberate efforts to market the area as an investment destination. These
efforts are on-going – as economic development does not reach an “end point”, but is itself on-
going.
5.5. Conclusion
This section provided an overview of the current status of institutional arrangements as well as
providing some guidance on moving towards an ideal structure for the Hantam Local Municipality.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
73
SECTION 6: VISION, OBJECTIVES & DRIVERS
6.1. Introduction
The previous sections have given the policy context that mandates the Hantam LM as a
developmental local government and the baseline socio-economic context against which needs and
opportunities have be identified. These need to be tailored to the specific context of the Hantam LM
as an institution. This is done by looking at the specific vision, objectives and goals of the Hantam
LM, as well as the opportunities identified, which can then be compiled into “drivers” or key areas of
focus for LED. Opportunities identified in the previous section are then translated into projects and
prioritised.
6.2. Vision, Objectives and Goals
It is important that the vision used in the Hantam LM LED Strategy is aligned with the vision for the
Hantam LM IDP Strategy. One of the main roles of the Municipality is to create an enabling
environment for economic development to take place. Therefore the aim of the vision, objectives
and goals is to achieve this role as creating an enabling environment. Creating an enabling
environment is thus not highlighted as one of the objectives but rather that the vision and objectives
need to achieve the role of the Municipality in creating an enabling environment.
Objectives:
Poverty alleviation through effective basic service delivery and job creation
Improve the living standards of the LMs residents through infrastructure maintenance and
development
Facilitate skills development and capacity building within the local economy
Promote business and investment attraction and retention
Assist with economic interventions in sector development (agricultural, mining, tourism and
renewable energy)
Figure below outlines the vision, objectives and goals as identified for the Hantam Local
Municipality.
Vision:
To create a safe, healthy, friendly and economically sustainable environment for all residents
of the Hantam Municipality.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
74
Vision
To create a safe, healthy, friendly and economically sustainable environment for all residents of the Hantam Municipality.
Objective 1 Objective 2 Objective 3 Objective 4 Objective 5
Poverty alleviation
through effective basic
service delivery and job creation
Improve the living standards of the
LMs residents through
infrastructure maintenance and
development
Facilitate skills development and capacity building within the local
economy
Promote business and investment attraction and
retention
Assist with economic
interventions in sector development
(agricultural, mining, tourism and renewable energy)
Goals
Improve access to health care & education Overcoming backlogs in service delivery Need to consider renewable energy options
Implement innovative water saving technologies Implement opportunities for bulk infrastructure development
Ensure capacity within the Municipality Identify skills gaps within key economic sectors Facilitate training programmes available
Play an active role in mitigating obstacles hindering economic development Providing training and support for leadership and management development Implementation of mentorship programmes for SMME’s Source funding for emerging businesses Strengthen marketing platform for SMME’s to market good & services
Conduct feasibility studies to determine the viability of new agricultural and small scale mining ventures. Support for emerging farmers Facilitation and development of shopping centres. Identify available land & ensure that it is serviced & zoned correctly; & allow equal access to this land for local communities. Determine opportunities for renewable energy development
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
75
6.3. Key Drivers
Key “drivers” aimed at regenerating Hantam’s economy can be formulated from the economic
opportunities and public sector interventions identified throughout the report. From a strategic
development facilitation point of view, it is necessary to ensure that the appropriate linkages and
interactions between programmes and projects be established. Such an integrated approach is
needed to ensure the optimal rate of implementation and economic development in the
Municipality. A driver can be defined as:
“Planned actions aimed at creating an impetus and a critical mass in the local economic
environment in order to generate momentum in the economy”
Drivers identified for the Hantam Local Municipality are discussed in Table 23 below:
Table 23 - Drivers identified for the Hantam Local Municipality
Driver Description Tasks and Projects
Institutional
Development
This is dealt with throughout this
section, and informed by the capacity
that remainder of the Drivers
necessitate.
Establish an LED Committee
Hantam LED Forum in
currently non-functional and
should be reviewed and made
functional.
Identify appropriate LED
Training and Capacity Building
programmes for various staff
members
SMME & Business
Support
This includes information and
support services as well as training,
mentorship and skills development
Providing training and support
for leadership and
management development
Source funding for emerging
businesses
Identify skills gaps within key
economic sectors
Identify available land &
ensure that it is serviced &
zoned correctly; & allow equal
access to this land for local
communities.
Strengthen marketing
platform for SMME’s to
market good & services
Implementation of
mentorship programmes for
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
76
Driver Description Tasks and Projects
SMME’s
Ensure training programmes
provided are relevant and
accredited
Facilitate training programmes
available
Generate a SMME Database
Agriculture and Agro-
Processing
Development
This includes all agriculture and agro-
processing activities.
Determine the viability of new
agricultural ventures.
Release land to local farmers
Source funding for farmers
Community gardens
Water capacity needs to be
extended.
Mining Development This includes the small scale
mining/excavating projects (private).
Determine the viability small scale
mining ventures.
Tourism Development
Including the specific projects/SMME
business opportunities and the
enabling public sector interventions
such as the various tourism
developing and marketing projects.
Formulate a well-developed
Tourism Strategy for the
Hantam LM
Investigate possible linkages
and joint initiatives with other
Namakwa Local
Municipalities, the Western
Cape and Namibia
Clustering tourism initiatives
Establish Tourism Information
Centres in all Towns
Training of tour guides.
Marketing and promotion of
the Hantam Meat Festival
Development and promotion
of the Rooibos Tea Heritage
Route (Agri-tourism)
Development of Oorlogskloof
Nature Reserve in
Nieuwoudtville
Renewable Energy
Development
The portfolio of renewable energy
plants is at reference here, along with
the associated enabling public sector
interventions.
Determine opportunities for
renewable energy development
Quality of Life This is seen as an all-encompassing Overcome backlogs in service
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
77
Driver Description Tasks and Projects
Improvement
driver with specific programmes in
the Expanded Public Works
Programme aimed at improved
infrastructure, overcoming backlogs
in service delivery, providing
education, health and safety services
and so on. It should deal with the
attractiveness of the area to
investors in terms of quality of life
and quality of labour and resources
on the one hand, and the ability of
locals to take advantage of economic
opportunities on the other.
delivery
Implement opportunities for
bulk infrastructure
development
Improve access to health care
& education
6.4. Conclusion
The above has identified a vision, objectives, goals and drivers and for the Hantam Local
Municipality. Section 6 provides for the necessary institutional structures and relationships to do so.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
78
SECTION 7: ACTION PLAN
7.1. Introduction
The above sections (Section 2 – 6) have provided an overview of the current situation within the Hantam Local Municipality. The last section (Section 6) has
provided some insight on ideal arrangements for institutional structures in order to improve the levels of project implementation.
This Section aims to provide detailed steps for the implementation of the LED Strategy as well as outlining some implementation guidelines for the
identified Drivers. This Section is then concluded by providing a potential monitoring and evaluation strategy.
7.2. Implementation Plan
Table 24 below provides the Implementation Plan for the Hantam LED Strategy.
Table 24 – Implementation Plan
Deliverable
Actions
Responsibility
Support
Time Frames
Strategic Integration
Obtain support for contents
of this document
Communicate the document to relevant
stakeholders, including the Municipal Manager and
Councillors
LED Manager Municipal December 2011
Driver Implementation
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
79
Deliverable
Actions
Responsibility
Support
Time Frames
Institutional Development
Establish an LED Committee Establish an LED Committee LED Manager Municipal December 2011
Establish an LED Forum Hantam LED Forum in currently non-functional and
should be reviewed and made functional.
LED Manager
LED Committee
Municipal December 2011
Identify appropriate LED
Training and Capacity
Building programmes for
various staff members
Local Municipal elections were held on the 18th of
May and a new Counsel was appointed. Identify
potential LED Training Programmes for new Council
Members.
Provide new elected Council with LED Training
LED Manager and
LED Committee
would need to
identify and market
the training
programmes to the
new Councillors
Municipal Ongoing
SMME & Business Support
Skills development and
training
1. Conduct a skills audit 2. Identify skills gaps within key economic sectors
(skills audit) 1. Ensure training programmes provided are
relevant and accredited 2. Facilitate training programmes available
Hantam LM
Small Enterprise Development Agency (Seda)
National Empowerment Corporation (NEC)
December 2011 -
Ongoing
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
80
Deliverable
Actions
Responsibility
Support
Time Frames
3. Provide training and support for leadership and management development
4. Implement mentorship programmes for SMME’s
5. Establish a Skills Training Centre – Investigate the possibility of using the old Voortrekker Hospital building in Calvinia
NAMAC
Khula
Form Business support unit 1. Link local SMMEs as service providers by generating a SMME Database
2. Source funding for emerging businesses 3. Identify available land & ensure that it is
serviced & zoned correctly; & allow equal access to this land for local communities.
Hantam LM December 2011 -
Ongoing
Agriculture and Agro-Processing Development
Determine the viability of new agricultural ventures. This includes the possibility of cultivating new crops using technology techniques, the cultivation of tropical crops along river banks as well as agro-processing opportunities.
1. Conduct a feasibility study to determine the viability of new agricultural ventures.
2. Release land to local communities. 3. Provide information on funding sources for the
local farmers. 4. Ensure necessary infrastructure is available to
potential investors e. g tarred roads and storm water, sanitation and water.
5. Market to potential investors
Hantam LM National Development Agency (NDA)
Northern Cape Department of Agriculture
DWA
Department of Environment and Nature
January 2012 -
Ongoing
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
81
Deliverable
Actions
Responsibility
Support
Time Frames
Conservation
NCEDA
Release land to local
farmers
1. Identify land that can be released (this could include municipal land, buying private land).
2. Release land to local farmers 3. 3Link with training and mentorship
programmes to ensure that the sustainability
Hantam LM SPP
Comprehensive Rural Development Programme
Ongoing
Funding for farmers 1. Source funding for local farmers. 2. Make this information available to the public. 3. Research the possibility of establishing a
primary agricultural cooperative between emerging farmers. Assist emerging farmers in establishment of cooperative.
Hantam LM CASP
LRAD
MAFISA
Ongoing
Extend water capacity 1. Increase efforts to remove alien vegetation along rivers banks (specifically Prosopis).
2. Consider other options for water saving techniques, water capturing & harvesting. A Water Study for the area should be conducted.
Hantam LM Working for Water
DWA
NCEDA
Jan 2012 - Ongoing
Community gardens 1. Assist community in obtaining plots 2. Give guidance on what to farm 3. Help to find markets for the excess produce
that is not used in the community 4. Promote the usage of rain water tanks (link
with water capacity extension action)
Hantam LM Household Food Production, Food Security & Starter Packs
MAFISA
NDA
NC Department of Agriculture
DWA
December 2011 - Ongoing
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
82
Deliverable
Actions
Responsibility
Support
Time Frames
Department of Environment and Nature Conservation
NCEDA
Mining Development
Develop small scale mining
ventures
1. Conduct feasibility studies to determine the viability of small scale mining ventures.
2. Assist small scale miners in the application of mining authorisation from the Department of Minerals and Energy (DME) – Submission of an Environmental Management Plan (EMP)
3. Assist small scale miners in the application of a water use licence from DWA
Hantam LM Department of Minerals and Energy
Department of Water Affairs and Forestry (DWAF)
GeoScience Mintek’s Small Scale
Mining (SSM) Division
SEDA NCEDA
Ongoing
Tourism Development
Formulate a well-
developed Tourism
Strategy for the Hantam LM
1. Formulate a well-developed Tourism Strategy that creates information for tourists on attractions, activities and accommodation options.
Hantam LM The Northern Cape Department of Economic Affairs and Tourism
2012
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
83
Deliverable
Actions
Responsibility
Support
Time Frames
2. This strategy should also identify opportunities that can be marketed to investors or what projects locals can take ownership of.
The Tourism Learnership Project (TLP)
Tourism Enterprise Partnership (TEP)
Tourism Business Council of South Africa (TBCSA)
TradeInvestSA
Link tourism initiatives with
surrounding areas.
Compile a Events Calendar and investigate possible
linkages and joint initiatives with other Namakwa
Local Municipalities, the Western Cape and
Namibia
Western Cape Province
Northern Cape Province
Namakwa DM
Hantam LM
NCEDA
The Northern Cape Department of Economic Affairs
Jan 2012 - Ongoing
Establish Tourism
Information Centres in all
Towns
1. Source a building for a tourism information centres.
2. Project should be run by a community member that establishes & keeps a close relationship with stakeholders, tourism businesses/establishments, & the municipality.
Hantam LM The Northern Cape Department of Economic Affairs and Tourism
Edge Growth
NCEDA
2012
Promotion of the Hantam
Meat Festival
Source funding and assist marketing. Hantam LM The Northern Cape Department of Economic Affairs and Tourism
NCEDA
Ongoing
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
84
Deliverable
Actions
Responsibility
Support
Time Frames
NDA
TradeInvestSA
Development and
promotion of the Rooibos
Tea Heritage Route (Agri-
tourism)
1. Conduct a feasibility study. 2. If feasible, assist in marketing
Hantam LM The Northern Cape Department of Economic Affairs and Tourism
NCEDA
NDA
TradeInvestSA
June 2012 - on
going
Develop and upgrade the
Nieuwoudtville Waterfalls
1. Conduct a feasibility study. 2. If feasible, assist in marketing
Hantam LM The Northern Cape Department of Economic Affairs and Tourism
NCEDA
NDA
TradeInvestSA
June 2012 - on-
going
Renewable Energy Development
Determine opportunities
for renewable energy
development
1. Partner with Eskom to promote rebates & incentives for renewable energy options & the roll-out of solar water geysers.
2. Conduct a pre-feasibility study for water-saving options and solar/wind facility development
3. Ensure necessary infrastructure is available to potential investors e. g tarred roads and storm
Hantam LM The Energy Development Corporation (EDC)
NCEDA
DME
TradeInvestSA
2012 - Future
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
85
Deliverable
Actions
Responsibility
Support
Time Frames
water, sanitation and water. 4. Zoning of land (review by-laws and amend
where necessary) 5. Market opportunities to investors.
Quality of Life Improvement
Overcome backlogs in
service delivery -
Address backlogs in service delivery
Plannning, measuring and servicing of erven.
Electrification of Middelpos households
Hantam LM Municipal
EPWP
2012 - Ongoing
Implement opportunities
for bulk infrastructure
development
1. Identify infrastructure gaps within key economic sectors
2. Build, upgrade & maintain infrastructure addressing the needs of the industry
Hantam LM Municipal
EPWP
Ongoing
Monitoring and Evaluation
Review the success of the
newly capacitated
structures after a period of
one year
1. Review the performance of the LED
Committee, LED Forum and Project leaders
2. Review staff capacity
3. Determine strengths and weaknesses in the
new approach and identify mechanisms to
enhance performance
Municipal Manager Municipal Ongoing
Review success of project 1. Review status of projects Hantam LM Municipal
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
86
Deliverable
Actions
Responsibility
Support
Time Frames
implementation 2. Determine if projects are on track or not (if not
indicate why)
Review & update LED
Strategy on a regular basis.
The LED Strategy is an evolving document that
changes with the economy and the environment. It
will need to be updated regularly to ensure optimal
use of resources, an enhanced enabling
environment, and to take advantage of new
opportunities.
Hantam LM Municipal On-going
Costing
It is difficult to put a cost to the actions listed above because it will depend on many different variables, for example:
Cost of land
Number of consultants needed on a specific project (i.e. economists, environmentalists, engineers, architects, etc)
The nature of the work that needs to be done (i.e. how large; the development concept; how many people needed; what skills are required; etc)
When projects/actions are put out to tender different prices will also be provided by different specialists. On average the following costs could
be charged:
R75,000 for a pre-feasibility study
R90,000 for a feasibility study
R90,000 for a business plan
R500,000 for a skills audit
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
87
7.3. Monitoring and Evaluation
Monitoring and evaluation (M&E) should be considered during each step of both the LED strategy and project implementation process and not as a specific
“add-on” conducted only at the end of the process.
Monitoring is a continuous process of collecting information using key performance measures (or indicators) to gauge the process or project. Monitoring
identifies successes or failures as early as possible. Evaluation is the process that “uses the information from monitoring to analyse the process,
programmes and projects to determine if there are opportunities for changes to the strategy, programmes and projects.” Evaluation, like monitoring,
should promote learning. In the implementation stage of a LED strategy, evaluation is used to determine if the actions are meeting the strategic objectives,
efficiently, effectively and/or at all.”
M&E should be used to:
Enhance learning and capacity building throughout all steps of the LED;
To empower the participants to do a better job; and
To help promote implementation partnerships as partners work through the process together.
Inform decision making on project implementation.
Analyse the current situation
Identify problems and find solutions
Discover trends and patterns
The monitoring program should regularly collect data on the performance measures that are indicators for the original objectives.
Monitoring ensures that limited resources for economic development can be put to ‘“best use’” and that negative or unintended impacts can be identified
and minimised.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
88
One way to formalise M&E is identifying performance indicators. Performance Indicators can be identified for each Driver, as well as on a project-by-project
basis.
Project objectives should be formulated in such as away so as to quantify measurable outputs and targets (deliverables). This is made easier by identifying a
specific and appropriate purpose, location and role-players for the project; anticipated (and realistic) impacts (jobs created, GGP growth, return on
investment ratios and so forth) and by assigning time-frames for the various stages of implementation (each with its own tangible set of outcomes).
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
89
REFERENCES
ACDP Calls for Wind, Solar Investment. 27 May 2011. Online:
http://www.news24.com/SciTech/News/ACDP-calls-for-wind-solar-investment-20110527
Ashley, C. & Haysom, G. 2006. Strategies and Challenges in Integrating Pro-Poor Approaches into
Tourism Business.
Boom Times Coming for Rough Diamonds. 26 May 2011. Online:
http://www.miningmx.com/news/diamonds/boom-times-coming-for-rough-diamonds.htm.
CDS. 2007. Arid Areas Report.
Chamber Dismisses Beneficiation Plan. 23 May 2011. Online:
http://www.miningmx.com/news/markets/Chamber-dismisses-beneficiation-plan.htm.
Chamber of Mines. 2011. Mining Community Development News.
CWCI. 2006. Findings on Urban and Rural Pro-Poor LED in South Africa.
De Beers. Sustainability Initiatives in Namaqualand.
De Beers. 2009. Report to Society.
Department of Minerals and Energy. 2011. Draft Beneficiation Startegy.
Department of Public Works. 2010. Expanded Public Works Programme.
Department of Science & Technology. Technology for Sustainable Livelihoods.
Feike Natural Resource Management Advisors. 2008. Potential for a South African Aquaculture
Gopaul, M. 2006. The Significance of Rural Areas in South Africa for Tourism Development Through
Community Participation.
Group Five Mulls R5bn Solar Project. 29 March 2011. Online:
http://www.fin24.com/Companies/Industrial/Group-Five-mulls-R5bn-solar-project-20110329.
Hantam Local Municipality. 2010. Integrated Development Plan (IDP)
Hantam Local Municipality. 2010. Rural Spatial Development Framework/Land Development Plan
Hinderink, J. & Titus, M. 2001. Small Towns and Regional Development: Major Findings and Policy
Implications from Comparative Research.
Hoffman, M., Allsopp, N. & Rohde, R. 2007. Sustainable Land Use in Namaqualand, South Africa: Key
Issues in an Interdisciplinary Debate.
Holm, D. & Agert, C. 2002. Job Creation Potential of Renewable Energies in South Africa. ESI Africa,
Issue 3.
Human Sciences Research Council. 2004. Rural Development: The Provision of Basic Infrastructure
Services.
Huyssteen, E., Oranje, M. & Meiklejohn, C. 2010. An Appreciative and (More) Nuanced Reading of
Rural Settlements in South Africa: A Key to Unlocking the Nation’s Rural Development Challenge?
Industry on the Northern Cape’s Namaqualand Coast.
International Conference on Energy Sustainability. 2010. Learnable Lessons on Sustainability from
the Provision of Electricity in South Africa.
IUCN. 2003. Extractive Industries in Arid and Semi-Arid Zones.
Mining Magazine. 2010. An In-depth Discussion of Mining Issues in South Africa.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
90
Namakwa District Municipality. Namakwa District Municipality Integrated Development Plan (IDP
2006 – 2011)
Namakwa District Municipality. 2009. Local Economic Development Strategy (LED)
Namakwa District Municipality. 2008. Biodiversity Sector Plan
Ndhlovu, T. 2011. Impact of Prosopis (Mesquite) Invasion and Clearing on Ecosystem Structure,
Function and Agricultural Productivity in Semi-Arid Nama Karoo Rangeland, South Africa.
Northern Cape Province. 2005. Provincial Growth and Development Strategy (NCPGDS)
Northern Cape Province. Provincial Spatial Development Strategy (NCSPS)
Northern Cape Province. 2009. Northern Cape Local Economic Development Strategy (NC LED)
Northern Cape Province. 2010. The Northern Cape Municipal LED Framework
Northern Cape Province. Northern Cape Agriculture & Agro-Processing Sector Development
Strategy (AAPSDS)
Northern Cape Province. Northern Cape Mining and Mineral Sector Strategy
Northern Cape Province. Northern Cape Manufacturing Strategy
Northern Cape Province. 2005. White Paper on the Development and Promotion of Tourism in the
Northern Cape
North South Tourism Route. 2011. Online: http://www.south-north.co.za/.
Northern Cape Business. 2011. Online: www.northerncapebusiness.co.za.
Proposed Construction of a Concentrating Solar Power (CSP) Plant and Related Infrastructure:
Northern Cape Province. 2006. EIA Scoping Phase.
Odendaal, F. Incremental Value of Poverty Alleviation Funding for Sustainable Development – A Case
Study From Namaqualand, South Africa. Eco-Africa.
Quantec Data. 2011. Online: www.quantec.co.za.
Rennie, J. & Singh, N. 1996. Participatory Research for Sustainable Livelihoods.
Republic of South Africa. 1995. National Strategy for the Development and Promotion of Small
Businesses in South Africa
Republic of South Africa. 1996. The Constitution of the Republic of South Africa
Republic of South Africa. 1998. The Municipal Systems and Municipal Structures Act
Republic of South Africa. 1998. The White Paper on Local Government
Republic of South Africa. 2000. Integrated Sustainable Rural Development Strategy
Republic of South Africa. 2003. Local Government: Municipal Finance Management Act
Republic of South Africa. 2004. The Broad-Based Black Economic Empowerment Act
Republic of South Africa. 2006. Accelerated and Shared Growth Initiative for South Africa (AsgiSA
2006)
Republic of South Africa. 2006. Joint Initiative on Priority Skills Acquisition (JIPSA 2006)
Republic of South Africa. 2006. National Spatial Development Perspective (NSDP 2006)
Republic of South Africa. 2006. Regional Industrial Development Strategy
Republic of South Africa. 2006. The National Local Economic Development Framework (2006 – 2011)
Republic of South Africa. 2010. New Economic Growth Path Plan
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
91
South Africa Finally Sets Renewables Bidding Process in Motion. 31 July 2011. Online:
http://www.engineeringnews.co.za/article/sa-finally-sets-renewables-bidding-process-in-motion-
2011-07-31.
South Africa Sticks to Ambitious CO2 Target. 2 August 2011. Online:
http://www.fin24.com/Economy/SA-sticks-to-ambitious-CO-target-20110802.
Statistics South Africa. Census Data 2001
Statistics South Africa. Community Survey 2007
The Development Bank of South Africa. 2007. A Revitalisation Strategy for Dying Mining Towns.
Thiyagarajah, R. 2007. Sustainable Wastewater Reuse Through Private Sector Participation.
Toerien, D. & Seaman, M. 2011. Ecology, Water and Enterprise Development in Selected Rural South
African Towns.
TPE Energy Development Pty Ltd. 2007. Namakwa Wind Energy Program.
UNDP. 2005. Sustainable Management of Arid and Semi-arid Ecosystems to Combat Desertification.
Working For Water. 2010. Feasibility and Benefits of Veld Rehabilitation Following Control of
Invasive Prosopis in the Calvinia Area.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
92
ANNEXURE A: PUBLIC PARTICIPATION
This section indicates the public participation that took place during the compiling of this report. The
Tables below indicate the meetings and the attendees in each town.
The introduction meeting was held in Springbok on 9 December 2010 where the following were
discussed:
Purpose of the Study
Goal and Objectives of the Study
Methodology
Role Player Identification
Way Forward
The second meeting was held in Springbok on 27 January 2011, where all the Local Municipalities were
present. The following were discussed:
Progress to date
Work Plan
Timeframe
Set up of consensus workshops in the each of the Local Municipalities
Calvinia, 14 February 2011
Name Organisation
A Bergh Hantam Municipality
IG Valentein Hantam Municipality
M Dyers Hantam Municipality
Riaan Van Wyk Hantam Municipality
Noel Viljoen Hantam Municipality
Gert Steenkamp Department of Agriculture
Loeriesfontein, 15 February 2011
Name Organisation
F Brand Wykskomitee (Wyk 5)
CL van Jaarsveld Wykskomitee
A Tieties CDW
A Januarie CPA
G Vyver Hantam Municipality
JM Koose Hantam Municipality
H Van Zyl Solek Ing
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
93
Nieuwoudtville, 15 February 2011
Name Organisation
C Rust SANBI
L Vyver Hantam Municipality
JA Louw Hantam Municipality
MM Beukes BEC
M Baard E Beuaezer Boere
C Koopman Hantam Municipality
N Viljoen Hantam Municipality
Gerrie Jansen Wykskomitee
Johannes Galandt Slagpale Brandvlei
EK Nc Leam Brandvlei Interm
JA Markus Wykskomitee Opkomende Boere
Johannes Mathys Opkomende Boere
AJ Burger Brandvlei Boerevereniging
Noel Viljoen Hantam Municipality
Nico Jantjies Wykskomitee
Calvinia, 16 February 2011
Name Organisation
I Van Niekerk Calvinia Slagters
C Rhode Forumlid
MW Adam Voorsitter LED
J Crous Namakwa District Municipality (Water)
DC Coetzee LED Forum Voorsitter
Brandvlei, 17 February 2011
Name Organisation
A Pieterse VGK Brand
FJ Sterkse Wyksraadslid Brandvlei
JB Miella Kompei Boerdery BK
N Viljoen Hantam Municipality
During these consensus workshops the following points were discussed:
The work plan
Existing information base
Policy and relevant documentation
Current LED projects and status
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
94
Institutional capacity
Funding
Potential projects
Problems and constraints in the area
Economic sectors and trend (agriculture, mining, manufacturing etc.)
Tourism
Infrastructure
Social-economic issues
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
95
ANNEXURE B: POLICY REVIEW
Policy Description Implications
National – South Africa
The Constitution
(RSA 1996)
The Constitution (Act 108 of 1996) is the cornerstone for all legislation and policy-
making in South Africa. In particular, Chapter 7 defines the role of local government
in its community. Five objectives of local government are described in section 152:
1. To provide democratic and accounTable government for local communities
2. To ensure the provision of services to communities in a sustainable manner
3. To promote social and economic development
4. To promote safe and healthy environment
5. To encourage the involvement of communities and community organizations in
the matter of local government.
Furthermore, section 153 stipulates the following developmental duties of all
municipalities:
1. A municipality must structure and mange its administration and budgeting and
planning processes to give priority to the basic needs of the community, and to
promote social and economic development.
2. A municipality must participate in national and provincial development
programmes.
The Namakwa District’s Local Municipality’s are
legally bound to promote social and economic
development within their communities. This implies
that public investment should largely focus on
developing the municipal areas in terms of local
economic development and providing for the basic
needs of the community. Thus it is important that
the Local Municipalities provide services,
infrastructure provision, community services,
educational components and business support to
areas that lack these services or in areas where
improvements of these services are required.
The White Paper
on Local
Government
(1998)
According to the White Paper on Local Government, local authorities have the
following responsibilities in terms of their obligation to economic development:
Provide marketing and investment support in order to attract potential support
to their locality.
Small business support services should be provided to assist small
entrepreneurs.
To support the Local Business Support Centres Programme launched by the
Department of Trade and Industry. The purpose of these centres is to assist
The White Paper has a direct impact on the
development, policy formulation and human
resource development projects of the local
municipality. It emphasises the need and importance
of local municipal support to business through
training and development of support centres. It is
important that the local municipality provide the
local businesses with the required support structures
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
96
Policy Description Implications
local entrepreneurs with issues relating to skills, premises, information,
networking, marketing and credit.
To provide targeted assistance (such as market research and technology
provision) to a particular sector in the local economy that has the potential to
expand.
By supplementing and tailoring to local needs, the services provided by the
Department of Labour in the supply of training and placement services. This is
necessary towards ensuring that people acquire skills and find jobs.
but also providing the local communities with the
required skills in order to obtain job opportunities
through the implementation of training
programmes.
National Spatial
Development
Perspective (NSDP
2006)
The National Spatial Development Perspective (NSDP) was produced by the Policy
Co-ordination and Advisory Services (PCAS) in the Presidency as was endorsed by
Cabinet in March 2003. The four principals in this document include the following:
Rapid economic growth that is sustained and inclusive is a pre-requisite for the
achievement of other policy objectives, amongst which poverty alleviation is key
Government has a constitutional obligation to provide basic services to all
citizens (e.g. water, energy, health and educational facilities) wherever they
reside
Beyond constitutional obligation identified in Principle 2 above, Government
spending on fixed investment, should be focused on localities of economic
growth and/or economic potential in order to:
o Gear up private sector investment
o Stimulate sustainable economic activities
o Create long-term employment opportunities
Efforts to address past and current social inequalities should focus on people not
places:
o In localities where there are both high levels of poverty and
development potential, this should include fixed capital investment
beyond basic services to exploit that potential
o In localities with low development potential, Government spending
should focus on providing social transfers, human resource
The NSDP states that economic growth should be a
pre-requisite for the achievement of other policy
objectives, key among which would be poverty
alleviation (providing basic services and job
opportunities). It further states that efforts to
address past and current social inequalities should
focus on people not places, where local
municipalities should focus on fixed capital
investment, human resource development, and
social transfers.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
97
Policy Description Implications
development and labour market intelligence which would enable
people to make choices: become more mobile and migrate to localities
that are more likely to provide sustainable employment or other
economic opportunities
In order to overcome the spatial distortions of Apartheid, future settlement and
economic development opportunities should be channelled into activity
corridors and nodes that are adjacent to or link the main growth centres
o Infrastructure investment should primarily support localities that will
become major growth nodes in South Africa and the SADC region to
create regional gateways to the global economy
The NSDP has identified areas of potential, however, it recognises that these are
general guidelines from a National perspective and more detailed analysis needs to
be undertaken at a Provincial and Local Level. The Provincial Growth and
Development Strategies (PGDSs) and the municipal Integrated Development Plans
(IDP) therefore takes on a greater importance in terms of achieving economic and
spatial goals.
The NSDP identified six categories of potential and these include the following:
Innovation and experimentation
The production of high-value differentiated goods
Labour intensive mass-production
Public service and administration
Tourism
Commercial services and retail
The NSDP does however recognise that these potentials are spread across a range of
urban and rural localities.
The Municipal
Systems Act
(2000) and
Municipal
The Municipal Structures Act of 1998 defines types and categories of municipalities,
division of functions and powers within municipalities, and the regulation of internal
systems. Great emphasis is placed on the need for co-operation between different
levels of government to better achieve goals and targets. Alternatively, the Municipal
According to the Municipal Structures Act Local
Municipalities are responsible for the delivery of
municipal services. If a given local municipality does
not have the requisite capacity to provide municipal
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
98
Policy Description Implications
Structures Act
(1998)
Systems Act of 2000 provides municipalities with guidelines which ‘enable
municipalities to move progressively towards the social and economic upliftment of
local communities’ so that basic services may be met. Duties of the municipal
council (within financial and administrative capacity) are given in section 4(2):
Exercise the municipality’s executive and legislative authority and use the
resources of the municipality in the best interests of the local community
Provide, without favour or prejudice, democratic and accounTable government
Encourage the involvement of the local community
Strive to ensure that municipal services are provided to the local community in a
financially and environmentally sustainable manner
Consult the local community about the level, quality, range and impact of
municipal services provided by the municipality, either directly or through
another service provider: and the available options for service delivery
Give members of the local community equiTable access to the municipal
services to which they are entitled
Promote and undertake development in the municipality
Promote gender equity in the exercise of the municipality’s executive and
legislative authority
Promote a safe and healthy environment in the municipality
Contribute, together with other organs of state, to the progressive realisation of
the fundamental rights contained in sections 24, 25, 26, 27 and 29 of the
Constitution.
In addition, Section 26 stipulates that every municipality is bound by law to produce
an integrated development plan (IDP) of which LED is a core component.
services the District Municipality can provide
municipal services directly until the local capacity is
developed. The Municipal Systems Act legally
bounds the Local Municipality to fulfil its duties and
produce an IDP and LED strategy to guide economic
development within the local municipal area.
Local
Government:
Municipal Finance
Management Act
(MFMA 2003)
The Municipal Financial Management Act (MFMA) aims to modernise budget and
financial management practices by placing local government finances on a
sustainable footing. It also aims to put in place a sound financial governance
framework by clarifying and separating the roles and responsibilities of the mayor,
executive and non-executive councillors and officials. It consequently serves to
Implementation of the MFMA is a collective learning
experience for all municipalities and they are
encouraged to build internal capacity to deliver
these reforms rather than employ external
consultants. Municipalities are also reminded to
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
99
Policy Description Implications
maximise the capacity of municipalities to deliver services to all its residents,
customers, users and investors. The MFMA will be phased in to allow municipalities
and other stakeholder’s adequate time to fully implement the reforms.
ensure training courses attended have been
approved by the National Treasury. National
Treasury in association with SALGA and the SETA, are
in the process of finalising unit standards and setting
minimum norms and standards for training.
Joint Initiative on
Priority Skills
Acquisition (JIPSA
2006)
As part of ASGISA, the Joint Initiative on Priority Skills Acquisition (JIPSA, 2006) seeks
to equip people with skills so that they can participate in accelerated growth. JIPSA
is a high-level task team that will identify urgent skills needs and advise on how they
can be met. The government has acknowledged that the single greatest impediment
to its public infrastructure programmes - as well as private investment programmes -
is the country's shortage of skills. JIPSA has already identified several interventions
in need of urgent attention, such as mentoring programmes and overseeing the
placement of trainees to fast-track their development. Others include special training
programmes, bringing back retirees and expatriate South African’s, and drawing in
new immigrants. Also planned are a major upgrade of Further Education and
Training (FET) colleges and a revamp of the Adult Basic and Education Training
programme, based on models developed in New Zealand and Cuba.
The Hantam Local Municipality is responsible to
identify the scarce skills within the area and to
consider long-term fundamentals for the skills
needed in order to achieve sustained economic
growth. The Local Municipality will need to develop
training programmes in order to promote human
resource development in the area.
The Broad-Based
Black Economic
Empowerment
Act (2004)
In order to uproot inherited social imbalances, progressive legislature has been
passed. One example is the Broad-Based Black Economic Empowerment (BBBEE) Act
of 2004 where systematic measures are in place to uplift the previously
disadvantaged community. Those included in the ‘broad-based black’ definition are
Africans, Coloured’s, Indians, women, workers, the youth, disabled persons and
those that live in rural communities. The main objective of the BBBEE Act is to
transform the South African economy so that it better reflects the South African
society whereby commercial enterprises are largely owned and managed by
previously disadvantaged individuals. This Act also aims to support the ‘broad-based
black’ population through promoting public and private investment in relevant
communities and providing easier access to financial assistance.
The Hantam Local Municipality is responsible for
addressing the issue of transformation in its
community. Therefore, sector strategies and
development policies established by the Local
Municipality must be compliant with the BBBEE
legislation.
The National Local Local Economic Development (LED) has become a fundamental responsibility for all The Framework sets out the following three key
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
100
Policy Description Implications
Economic
Development
Framework (2006
– 2011)
levels of government. In order to achieve consistency and uniformity in LED
strategies, a national framework has been established in which specific outcomes
over a 5 year period are defined. Based on the White Paper on Local Government
(1998) the framework deduces that ‘Local Economic Development is about creating a
platform and environment to engage stakeholders in implementing strategies and
programmes’. In other words it is the responsibility of local government to create an
environment that is conducive to development. Furthermore, local government is
expected to create a local economy that ‘… [Exploits] local opportunities, real
potential and competitive advantages, [addresses] local needs and [contributes] to
national development objectives’. Great emphasis is placed on municipalities being
managed in an efficient manner in order for local economic development to be
successfully achieved – ‘everything a municipality does, does impact on the local
economy’.
roles, which Local Government can play in the LED
process:
1. To provide leadership and direction in policy-
making.
2. To administer policy, programmes and projects.
3. To be the main initiator of economic
development programmes through public
spending, regulatory powers and their
promotion of industrial, small business
development, social enterprises and
cooperatives.
Integrated
Sustainable Rural
Development
Strategy (2000)
The Integrated Sustainable Rural Development Strategy (ISRDS: 2000) aims to
transform rural South Africa into an economically viable sector, which can make a
significant contribution to the GDP of South Africa. The strategy attempts to
coordinate existing initiatives and programmes towards the end of achieving greater
impacts over the short term. The ISRDS is designed to realize a vision that will “attain
socially cohesive and sTable rural communities with viable institutions, sustainable
economies and universal access to social amenities, able to attract and retain skilled
and knowledgeable people, who are equipped to contribute to growth and
development”. According to the ISRDS (2000:19) the strategic intent of the ISRDS is
to transform rural South Africa into an economically viable and socially sTable and
harmonious sector that makes a significant contribution to the nation’s GDP. The
strategy will benefit the rural poor generally, but particular efforts will be made to
target women, youths, and the disabled. A successful strategy to achieve integrated
sustainable rural development will reflect each of its three key elements:
1. Rural Development – rural development is a multi-dimensional concept,
encompassing improved service provision, better opportunities for income
The Hantam Local Municipality is responsible for
transforming local rural areas into economically
viable communities. To facilitate positive change, an
in depth understanding of local rural areas is
required along with an excellent relationship with
the local businesses. Any economic development will
need to be sustainable, distributed equally and take
cognisance of the environment.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
101
Policy Description Implications
generation, Local Economic Development, improved physical infrastructure,
social cohesion and physical security within rural communities. The concept also
adheres to democratic principles such as the level of representation of local
communities in the political process. The concept places emphasis on facilitating
change in rural environments to enable poor people to earn a higher level of
income and to invest in themselves and their communities.
2. Sustainability – sustainability in this context refers to the increased participation
of local communities in development projects and initiatives to ensure their
success at a local level. Social sustainability is an important dimension of a
successful development strategy. The participation process should be designed
to be as transparent and broadly inclusive as possible. A portion of the benefits
should be targeted to particular groups that might otherwise be under-
recognised, such as women and young people.
3. Integration – the integration of rural development is a comprehensive task
because it involves all of the economic sectors that necessities effective
coordination between the various spheres of government. The primary focus of
integration is at municipal level through the Integrated Development Planning
(IDP) process. Implementation of decisions arrived at, through the IDP process,
is achieved through an amalgamated resource envelope comprised of the
municipal budget, the commitments of the line departments and other sources.
The cost of living for poor rural people is generally higher than it need be because of
their lack of access to transport and communications infrastructure, basic amenities
such as water and electricity, and social services such as health and education. The
ISRDS should therefore not only be aimed at integrating only rural development
actions, but it should also incorporate actions to integrate rural and urban areas. The
reform of municipal government places organs of local government in a central role
in integrating programmes to achieve synergistic rural development. Many will need
assistance and guidance to develop capacity, but their role and responsibilities are
clearly established. They are required to clearly identify local development needs
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
102
Policy Description Implications
and opportunities and to plan to respond to these. In addition the ISRDS states that
any strategy for development should be based on the socio-economic realities in the
province and the country as a whole. This framework recognises the strong link
between economic, social and physical factors.
National
Industrial Policy
Framework (NIPF
2007)
The National Industrial Policy Framework (NIPF) is a framework that aims to provide
strategic direction for South Africa’s industrial development. It follows the principles
of the Reconstruction and Development Programme and plays a fundamental role in
achieving ASGISA’s goals. The NIPF aims to contribute to the integration of the
second economy into the local economy by, firstly, encouraging and creating quality
and sstable employment and, secondly, by assisting people to become
entrepreneurs in the economy. The NIPF identifies the following four main sets of
policies as necessary conditions for industrial development:
1. A stable and supportive macroeconomic regulatory environment
2. Skills and education for industrialisation
3. Traditional and modern infrastructure
4. Innovation and technology.
The Hantam Local Municipality needs to provide
strategic direction to industrial development and
unlock economical constraints that will benefit the
entire economy. In order to integrate the second
economy the Hantam Local Municipality will need to
focus on BBBEE, provision of appropriate
infrastructure and the appropriate placement of this
infrastructure.
Regional
Industrial
Development
Strategy (RIDS
2006)
The Regional Industrial Development Strategy (RIDS) presents a comprehensive
framework for industrial development in South Africa and builds on the outcomes of
the National Spatial Development Perspective (NSDP). The NSDP acknowledges the
fact that the landscape of economic development is not equal across all regions in
the country. The main intentions of the RIDS is to:
1. Help to achieve the national industrial development objectives as set out in the
NSDP
2. Further the goals of the Accelerated and Shared Growth Initiative of South Africa
(ASGISA)
3. Conform to the principles of the Integrated Manufacturing Strategy (IMS), the
Microeconomic Reform Strategy (MRS) and the current draft National Industrial
Policy Framework
4. Enhance the capacities and potentials identified in the Urban Spatial
The RIDS aims to bridge the first and second
economy gap. The RIDS also presents a
comprehensive framework for industrial
development in South Africa. Industrial development
is also needed in the Local Municipality. Support
funds will be launched by the DTI that will support
local industrial development projects, which will
contribute thus to the industrial development of the
Hantam Local Municipality.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
103
Policy Description Implications
Competitive Framework and the Local Economic Development (LED) framework
that seek to address spatial constraints and opportunities related to industrial
development in municipalities
5. Conform to principles of enterprise development and Black Economic
Empowerment (BEE)
6. Conform to the government’s environmental and other relevant policies
National Strategy
for the
Development and
Promotion of
Small Businesses
in South Africa
(1995)
Small businesses can help South Africa in two significant ways: first, these
enterprises are potential engines of growth for the national economy and second,
they can aid the transformation process. Four categories of small businesses can be
defined: small, medium, micro- and survivalist enterprises, known collectively as
SMME’s.
Survivalist enterprises are typically made up of individuals that are unable to
find employment in a conventional manner. Level of skills and generated income
are both extremely low and opportunities for growth are mostly non-existent.
Micro enterprises are often informal in nature and typically run by the owner
and his/her respective family members. Although skills are limited and incomes
levels vary, growth is possible and it is not uncommon for micro enterprises
progress into small enterprises.
Small enterprises are considerable more formal in nature, commonly managed
and the owner and typically consist between 5 and 50 employees. These
enterprises are found in a wide range of sectors.
Finally, medium enterprises are similar to small enterprises but have a larger
employee base (+200) and a greater value of capital assets. It is common for
these businesses to have reached their upper-limit of growth due to resource
constraints.
This strategy aims to create an environment where SMME’s can exist and make use
of opportunities presented to them. This in turn will create employment and
investment prospects. In addition, this environment will encourage entrepreneurship
by offering assistance to potential entrepreneurs – especially those individuals
In promoting local economic development, it is
essential for the Local Municipality to promote the
growth of its business sector. In order to do this the
Local Municipality needs to facilitate an environment
where SMME’s can flourish. This can be done by
increasing investment in infrastructure that
encourages a competitive business environment,
increased productivity, opportunities for
employment and entrepreneurialism.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
104
Policy Description Implications
designated by the BBBEE Act.
Tourism Growth
Strategy (TGS
2008 - 2010)
The Tourism Growth Strategy (TGS) provides a three year plan (2008-2010) to boost
South Africa’s competiveness in the global tourism and travel market. Through
increasing global competitiveness, the tourism industry aims to contribute
significantly to AsgiSA’s growth target. There are, however, some key challenges
which include the following:
1. Transformation of the tourism industry through increased participation of the
previously disadvantaged community.
2. Increased distribution of the industry through promoting less traditional tourism
routes and activities.
3. Creating an industry that is sustainable.
In order to address these challenges, the TGS stresses the need for South Africa to
identify and pursue opportunities in the international, domestic and business
tourism market while simultaneously developing its existing market.
The Hantam Local Municipality is expected to
contribute to the TGS (and ultimately ASGISA)
through developing and expanding its existing
market in a way that promotes transformation,
distribution and sustainability in the industry. This
suggests that a local tourism strategy is essential for
boosting economic development in the area.
Local Government
Turnaround
Strategy (LGTAS
2009)
The Local Government Turnaround Strategy recognises a number of indicators that
profile municipalities in respect to basic services, GVA, audit reports, and spatial
baselines. The aim therefore is to implement a comprehensive but differentiated
programme of action to reach the objective of ensuring that municipalities can meet
the basic service needs of communities. Five strategic objectives are identified that
will guide the LGTAS interventions and support framework. These are aimed at
restoring the confidence of the majority of the people in local municipalities, as the
primary expression of the developmental state at a local level. These are:
1. Ensure that municipalities meet the basic service needs of communities
2. Build clean, effective, efficient, responsive and accountable local government
3. Improve performance and professionalism in municipalities
4. Improve national and provincial policy, oversight and support
5. Strengthen partnerships between local government, communities and civil
society
These objectives have been identified as the key drivers in order to rebuild and
In achieving these objectives there will be a need to
mobilise government and society to protect and
enhance the Local Government system by
addressing the forces undermining the system and
addressing relevant areas for improvement. This
objective requires that Local Government support
interventions in performance and professionalism,
process efficiencies, and clean government. It will
also require that partnerships between local
government, communities and civil society are
strengthened.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
105
Policy Description Implications
improve the basic requirements for a functional, responsive, effective, efficient, and
accountable developmental local government.
The Municipal Systems Amendment Bill (2011) aims to professionalise the
administration of municipalities to improve service delivery and development. It
prohibits officials fired from one municipality being employed by another for a
specified length of time. In the case of fraud and corruption charges the prohibition
period is 10 years. This Amendment will also stop municipalities from employing
people in senior positions who do not have the requisite skills. Once the Bill becomes
Law, employment contracts of officials without the requisite skills will be rendered
null and void. It will also be illegal for councillors to pass votes through council that
aim to circumvent due process. Top management will be banned from holding
official positions – such as chairman or treasurer – in political parties.
New Economic
Growth Path Plan
(2010)
The New Economic Growth Path Plan aims to create five million jobs opportunities
within the next ten years which will reduce unemployment by 15-25%. This growth
plan is in response to the jobs lost during the global economic recession where more
than a million jobs were lost in the 2008/2009 economic crisis in South Africa alone.
The centrepiece of the New Economic Growth Path Plan is to promote investment
into infrastructure and human development through skills development. It is also
important to note that the plan indicates that the overall goal will only be achieved if
there is better co-ordination between the public sector, private sector and labour
organisations. The aim of the plan is to:
1. Promote Economic Growth
2. Employment Creation
3. Enhance Equity
The new growth path will now seek to place the economy on a production-led
trajectory with growth targeted in ten ‘jobs drivers’. As a first step, government will
focus on unlocking the employment potential in six key sectors and activities. These
are:
Infrastructure, through the massive expansion of transport, energy, water,
The centrepiece of the New Economic Growth Path
Plan is to promote investment into infrastructure
and human development through skills
development. This will require better co-ordination
between the private and public sector. Six key
sectors will be looked at to achieve these goals:
infrastructure, agriculture, mining, green economy,
and manufacturing.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
106
Policy Description Implications
communications capacity and housing, underpinned by a strong focus on
domestic industry to supply the components for the build-programmes
The agricultural value chain, with a focus on expanding farm-output and
employment and increasing the agro-processing sector
The mining value chain, with a particular emphasis on mineral beneficiation as
well as on increasing the rate of minerals extraction
The green economy, with programmes in green energy, component
manufacture and services
Manufacturing sectors in the Industrial Policy Action Plan (see list below)
Tourism and certain high-level services
The following provides a list of the priority sectors as identified within IPAP2
(Industrial Policy Action Plan Sectors 2010/11 – 2012/13):
1. Metal fabrication, capital equipment and transport equipment
2. Green' and energy-saving industries
3. Agro-processing
4. Automotives, components and medium and heavy commercial vehicles
5. Downstream minerals beneficiation
6. Plastics, pharmaceuticals and chemicals
7. Clothing, textiles, leather and footwear
8. Biofuels
9. Forestry, paper and pulp, and furniture
10. Cultural industries: crafts and film
11. Tourism
12. Business Process Services
13. Advanced manufacturing
Province – Northern Cape Province
Northern Cape The core purpose of the NCPGDS is to enable stakeholders from public, private and The NCPGDS has identified the following
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
107
Policy Description Implications
Provincial Growth
and Development
Strategy (NCPGDS
2005)
parastatal sectors together with labour and civil society to determine a plan for
sustainable growth and development of the Northern Cape. The NCPGDS sets the
tone for development planning and outlines the strategic planning direction in the
Province. The main objectives set by the NCPGDS for development planning in the
Province are:
Promoting the growth, diversification and transformation of the provincial
economy
Poverty reduction through social development
Developing requisite levels of human and social capital
Improving the efficiency and effectiveness of governance and other
development institutions
Enhancing infrastructure for economic growth and social development
interventions as the key to promoting economic
growth in the Province:
1. Agriculture and agro-processing
2. Mining and mineral processing
3. Manufacturing
4. Fishing and mariculture
5. Tourism
Besides focusing on these sectors, the Local
Municipality needs to meet basic needs, target
vulnerable groups, focus on urban and rural
development, and crime prevention. Other strategic
interventions include strengthening local
government. inter-governmental relations and PPP,
promoting an efficient and effective transport
system, enhancing competitiveness through cost-
effective transport, improving Information and
Communication Technology, and identifying and
developing critical infrastructure.
Northern Cape
Provincial Spatial
Development
Strategy (NCSDS)
As part of the development planning process that underlies the formulation of the
NCPGDS, it is necessary to produce a Provincial Spatial Development Strategy (PSDS).
The PSDS must not only give effect to national spatial development priorities but it
must also set out a series of provincial, district and local development priorities for
the space economy of the Northern Cape. In so doing, the PSDS will provide a means
to guide strategic decisions relating to the location and distribution of resources in
time and geographic space. TAKE NOTE: The Northern Cape is currently still
formulating/establishing a PSDS.
The NCSDS is still being formulated/established but
when it becomes policy it will have the following
implications for NDM: (1) NDM will have to
designate spatial development initiatives in the
District; (2) the District will have to provide direct
support to catalyse the flagship economic
development projects along transport/ development
corridors and within identified special resource
areas; and (3) the District will have to make
provision of necessary infrastructure and services to
support economic development along the same
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
108
Policy Description Implications
transport/ development corridors and within special
resource areas.
Northern Cape
Local Economic
Development
Strategy (NC LED
2009)
The NC LED is intended to build a shared understanding of LED in the Province and
put into context the role of local economies in the provincial economy. It seeks to
mobilise local people and local resources in an effort to fight poverty. The NC LED
Strategy investigated the options and opportunities available to broaden the local
economic base of the Province in order to promote the creation of employment
opportunities and the resultant spin-off effects throughout the local economy. Areas
of opportunity include:
Livestock products
Game farming
Horticulture
Mariculture
Ago-related industries
Tourism
Manganese and iron Ore
Beneficiation of minerals
Renewable energy
The NDM LED provides the Local Municipality’s with
leadership and direction in policy making, in order to
administer policy, programmes and projects, and to
be the main initiator of economic development
programmes through public spending, regulatory
powers and their promotion of industrial, small
business development, social enterprises and
cooperatives. The Local municipality’s need to create
an enabling environment for their communities.
The Northern
Cape Municipal
LED Framework
(2010)
The LED experience in the Northern Cape (and elsewhere) has indicated that local
economies do not change when they need to. The Northern Cape Municipal LED
Framework was developed in the wake of the NCLED Strategy to provide
municipalities with a dedicated support tool to develop or review their own LED
Strategies. The broad aim of the Framework is to provide a common understanding
of LED in the Province, a shared format for LED Strategies and structured support
mechanisms. LED encompasses a range of disciplines including physical planning,
economics and marketing. It also incorporates many local government and private
sector functions including environmental planning, business development,
infrastructure provision, real estate development and finance. the following LED
Strategy Framework for municipalities in the Northern Cape:
The purpose of LED is to build up the economic
capacity of a local area to improve its economic
future and the quality of life for all. It is a process by
which public, business and nongovernmental sector
partners work collectively to create better conditions
for economic growth and employment generation.
At the end of each year every NC LED manager
should ask her/himself two questions:
1. How many new jobs have I facilitated this year?
2. How much new investment have I facilitated this
year?
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
109
Policy Description Implications
Phase 1: LED Visioning
Phase 2: Situational Analysis
Phase 3: LED Strategy Formulation
Phase 4: Implementation Plan
Phase 5: Monitoring and Review
Northern Cape
Agriculture &
Agro-Processing
Sector
Development
Strategy (AAPSDS)
The NC AAPSDS is one in a series of economic sector development strategies that
aims to provide for a more accurate prioritization of effort and resource allocation by
the public sector generally and provincial government in particular in its endeavours
to deliver on its mandate to promote the economic development of the Northern
Cape province. The NC’s traditional strength is in the production of a wide range of
primary commodities. Adding value to the commodities could make a significant
contribution to the transformation of agriculture in the province and, by extension,
rural and national development. Agro-processing can increase the viability,
profitability and sustainability of production systems through their impact on
increasing incomes of primary producers, create employment and foreign exchange
earnings, and address the market risks associated with primary agricultural
production.
Each Local Municipality within the NC will need to
identify agricultural constraints in order to
determine, prioritise and create an environment that
is conducive to agricultural and agro-processing
development. The NCs Local Municipality’s will also
need to identify opportunities for private
investments and public interventions to respond to
these new opportunities in the agricultural and agro-
processing sector.
Northern Cape
Mining and
Mineral Sector
Strategy
The challenge facing the Northern Cape Government is how to broaden and
encourage the opportunities presented by a variety of mineral resources. With the
inability of this sector to yield sufficient jobs and the fact that mining has a limited
lifespan, diversifying the economy is perceived to be of utmost importance to the
Province. Important points regarding beneficiation that are highlighted include the
facts that the decision to beneficiate is dependent on economic and market factors,
however, raw material prices paid locally should not place beneficiators at a
disadvantage. It is important to note that although the Mining Sector contributes
largely to the GGP of the Northern Cape the sector is in decline and as part of this
strategy the Northern Cape Province are looking at better job creation opportunities
by diversifying the Mining industry.
The local municipal areas have the availability of
adequate mineral resources, the Hantam Local
Municipality just needs to continually support the
mining sector by ensuring an enabling environment
for business investment and protecting the local
markets (demand and supply) by creating
comparative advantages in the area. The Hantam
Local Municipality should also facilitate ways in
which local small miners will be able to participate in
the market.
Northern Cape It is important to note in this regard that individual firms are the smallest and most The Hantam Local Municipality needs to create an
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
110
Policy Description Implications
Manufacturing
Strategy
basic (that is to say foundational) level of competitiveness. Without firms raising
their operational performance and moving towards a frontier of manufacturing
excellence there can be no possibility of increasing competitiveness in any economy.
The NC Manufacturing Strategy takes an in-depth look at the Northern Cape’s
manufacturing sector and shows that Kimberly and Upington are the strongest
manufacturing towns in the NC. The Strategy suggests that one-stop-shops be
established (and a NC Manufacturing Cluster), as well as the tertiary educational
base required to provide local citizens with the skills required. It also stipulates that
manufacturing companies upgrade their production activities in order to compete
nationally and internationally.
enabling environment for the manufacturing sector
through supply side support measures, and ensuring
that the necessary infrastructure is put in place.
White Paper on
the Development
and Promotion of
Tourism in the
Northern Cape
(2005)
This tourism white paper has been developed within the context of the Northern
Cape Provincial Growth and Development Strategy which is underpinned by the
following principles namely: integration, sustainability and customer service and
satisfaction through Batho Pele. The tourism white paper stems from the realization
that a dedicated tourism policy was needed to promote integration of tourism
management in order to harness provincial natural and cultural resources for
sustainable tourism growth.
The vision of the Northern Cape in terms of tourism is to be the preferred adventure
and ecotourism destination in South Africa that is recognized for its cultural heritage
and special interest tourism offering through the responsible development of natural
and cultural resources. The following factors are considered as critical to the
achieving the vision:
Tourism declared a provincial priority.
Meaningful involvement of marginalised communities;
Improved funding for tourism development and destination marketing;
Co-ordination and synergising of public tourism resources;
A safe and peaceful tourism environment;
Constant innovation of the provincial product portfolio in the areas of
conservation and ecotourism, cultural tourism, entertainment and shopping
It is well known that tourism experiences happen at
a local level and local communities and towns are
the points where tourists require facilities and
services. A well-organized tourism industry at local
level is crucial to the tourism success of the
province. The establishment of local, membership-
based Tourism Associations (LTA’s) and local Visitor
Information Centres (VIC’s) in towns/municipal areas
are important vehicles for tourism advancement at a
local level.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
111
Policy Description Implications
goods such as crafts, jewellery, etc.;
Crafty and innovative marketing and promotion;
Improved service levels, product quality and value for money;
Greater involvement of other (supportive) sectors of the economy;
Improved awareness of tourism and accessibility to training opportunities,
advisory services and finance for tourism enterprises;
Sustainable environmental practices
The vision of the Northern Cape being the preferred adventure and ecotourism
destination in South Africa is supported by the following objectives towards 2015:
To be visitor focused;
To match products to markets;
To strengthen and expand the product portfolio;
To define and strengthen tourism spatial components and experience clusters;
To develop a unique destination positioning;
To customize experiences through packaging;
To tailor the marketing message to chosen segments;
To make it easy to get there and move around;
To streamline the institutional structure;
To optimise human and financial resources;
To partner for success.
District – Namakwa District Municipality
Namakwa District
Municipality
Integrated
Development Plan
(IDP 2006 – 2011)
The 2006-2001 IDP as well as the first revision, 2008-2009, contains certain strategic
and long term information (strategies, goals, targets, etc) and are therefore an
integral part of the development process of the District. During the past year several
development activities were initiated through analysis reports, economic potential
identification and an improved Sector Department involvement in the District. These
initiatives are presently in progress, although in different stages. Identified projects
The Namakwa District Municipality must promote
local economic growth and social development in
order to provide a better life for their communities.
A sTable and safe environment is essential for
prosperous growth and development, thus creating
an enabling environment for communities.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
112
Policy Description Implications
were divided into 5 KPA’S namely:
Municipal Transformation and Organisational Development
Basic Service Delivery and Infrastructure
Local Economic Development
Municipal Financial Viability and Management
Good Governance and Public Participation
Namakwa District
Municipality Local
Economic
Development
Strategy (LED
2009)
The NDM LED is intended to build a shared understanding of LED in the District and
put into context the role of local economies in the provincial economy. It seeks to
mobilise local people and local resources in an effort to fight poverty. Various
opportunities (projects and programmes) are identified in this strategy, namely:
Institutional Development for Investor Readiness (this is essentially a human
capital development and municipal service delivery improvement strategy).
SMME Development (cutting across sectors, this is reflected in specific SMME
opportunities identified, as well as, for example, the One-Stop Mining Centre).
Agricultural Sector Development (including the Hoodia and Mariculture projects,
the enabling public sector interventions and the implementation of new
technologies as they become viable (such as new biotechnologies, irrigation
techniques and so on).
Mining Sector Development (including the beneficiation projects, One-Stop
Mining Centre and the implementation of new technologies.
Industrial Development (programmes relating to the manufacturing projects
identified and general improvement in living conditions, infrastructure
(particularly transport) and overall economic growth)
Renewable Energy Development (including wind, wave, solar, and biogas
energy)
Space Research and Development Spin-offs (prioritising the identification of
spin-offs and enabling local entrepreneurs to exploit these opportunities).
Tourism Development (including the specific projects/SMME business
opportunities and the enabling public sector interventions).
The NDM LED provides the Hantam Local
Municipality with leadership and direction in policy
making, in order to administer policy, programmes
and projects, and to be the main initiator of
economic development programmes through public
spending, regulatory powers and their promotion of
industrial, small business development, social
enterprises and cooperatives. The Hantam Local
municipality needs to create an enabling
environment for its communities.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
113
Policy Description Implications
Quality of Life Improvement (this is seen as an all-encompassing thrust with
specific programmes in the Expanded Public Works Programme aimed at
improved infrastructure, overcoming backlogs in service delivery, providing
education, health and safety services and so on. It should deal with the
attractiveness of the area to investors in terms of quality of life and quality of
labour and resources on the one hand, and the ability of locals to take
advantage of economic opportunities on the other).
Integration and cooperation between the spheres of government, among
neighbouring local municipalities, and between local municipalities and their
encompassing district authorities is essential to ensure that the developmental
mandate is fulfilled in an efficient and effective manner, with neither duplication nor
gaps in the development of communities.
Namakwa District
Biodiversity
Sector Plan (2008)
This Strategy serves to help guide land-use planning, environmental assessments and
authorisations; and, natural resource management in order to promote development
which occurs in a sustainable manner. It has been developed to further the
awareness of the unique biodiversity in the area, the value this biodiversity
represents to people as well as the management mechanisms that can ensure its
protection and sustainable utilization. The purpose of this strategy is to ensure that
biodiversity information can be accessed and utilized by local municipalities within
the Namakwa District Municipality to inform land use planning and development as
well as decision making processes within the NDM.
The Hantam Local Municipality can use this strategy
to make sure local economic development does not
infringe on biodiversity and critical biodiversity
areas. The strategy also includes projections for
sustainable development that can be included in
development plans and future planning reports.
Local – Hantam Local Municipality
Hantam Local
Municipality
Integrated
Development Plan
(IDP 2010)
The vision of the Hantam LM is: “To create a safe, health, friendly and economically
sustainable environment where all inhabitants of the Hantam LM will be benefited
through effective municipal service delivery.” The mission statement of the HLM is:
Continued professional training of personnel in order to ensure quality and
purposeful service.
Hantam LM must create an environment that will
enhance economic development with specific focus
on social, economic and infrastructure development.
Specific projects are outlined for each town that
needs to be prioritised and implemented.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
114
Policy Description Implications
Creation of effective maintenance programs in terms of existing infrastructure
and development.
To implement and maintain the principles of Batho Pele.
To insure client satisfaction through transparent, friendly and credible service
delivery.
Creation of opportunities for economic growth and development.
Promotion of social service delivery in the Hantam LM.
Key performance areas include:
Municipal transformation and organizational development
Infrastructure development and service delivery
Local economic development
Effective Municipal Financial Management
Effective management and public participation
Hantam Local
Municipality Rural
Spatial
Development
Framework/Land
Development Plan
(2010)
The main economic sectors of Hantam LM are agriculture (primarily livestock),
mining and tourism (but tourism marketing of the area is very weak). Through its
vision, the Hantam LM strives to create a safe, healthy and economically sustainable
environment where all residents will benefit from effective and efficient service
delivery. In ensuring the spatial fulfilment of its vision, the Municipality has identified
projects that are spatially related to the above-mentioned aspects:
Provision of engineering service infrastructure
Provision of social service infrastructure
Providing a healthy and safe environment
Climate change is expected to have a bigger impact on groundwater resources than
weather variables do as groundwater is buffered against short-term variations. In
dryer areas like the Hantam municipal area where annual rainfall is less than 500
mm, a 10% decrease in rainfall could translate into as much as a 40% decline in
recharge. Hantam consists largely of non-arable, low potential grazing land (84.42%)
and is therefore ideally suited to sheep farming, which is characteristic of this
municipal area. This land is ideally suited for cultivation of Rooibos plantations.
There are thus three key perspectives:
The need to develop the economy for the
benefit of its residents and to alleviate the
societal problems, such as substance abuse and
problems among youth, as well as to provide it
with its basic needs;
The need to manage the resources of the area in
order that these are sustainable for future
generations that may choose to stay there; and
The need to protect natural resources, which if
over-exploited, may result in damage to other
biospheres and irreversibly upset the ecology of
the environment.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
115
Policy Description Implications
Maintenance of existing tar and gravel roads is essential for sustainable economic
development. The objectives of the SDF are as follows:
Exploit economic opportunities
Create sustainable urban and rural settlements
Protect the natural and built environment
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
116
ANNEXURE C: MINING INFORMATION
Table below shows all the mines and quarries that were operating in 2006.
Table 25 - Operating Mines and Quarries and Mineral Processing Plants
Name of Mine Owner Commodity Operational Status and Type
of Mine
Name of Farm or Area
Brandvlei Steenwerke
Brandvlei Steenwerke CC
Clay Aggregate
Mine Opencast
Brandvlei Munisipale Meent
Boesmanland Gypsum Mine
BPB Gypsum (Pty) Ltd
Gypsum Mine Opencast
Waterkuil 185
Dikpens United Salt (Pty) Ltd
Salt Mine Surface
Calvinia 182/2 Dikpens Loeriesfontein
Dwaggas Salt Works
Dwaggas Salt Works
Salt Mine Surface
Dwaggas-Oos 190/3
(Source: Department of Minerals and Energy, 2006)
Map below indicates the mining activities within Hantam LM.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
117
Map - Mining Activities in Hantam LM
(Source: GIS Mapping)
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
118
The following Table indicates the commodities found in the Hantam LM, the size of the deposits, where
they are located, and whether they are being exploited or not.
Table 26 - Mineral Deposits in Hantam LM
Commodity Deposit Status Location: Farm Name
Gy (Gypsum) Deposit Never Exploited BRAK PAN
Gy (Gypsum) Deposit Never Exploited KAMAS
Gy (Gypsum) Deposit Never Exploited KARREE DOORN PAN
Gy (Gypsum) Deposit Never Exploited KARREE DOORN PAN
Gy (Gypsum) Deposit Never Exploited UIL KLIP
Na (Salt) Deposit Never Exploited KAMAS
Zn (Zinc) Pb (Lead) Cu (Copper)
Deposit Never Exploited KOPOAS FONTEIN
RM (Road Metal) Intermittently Producing OLYVENBOSCH
(Source: GeoSience)
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
119
ANNEXURE D: ROLES AND RESPONSIBILITIES
LED is a cooperative developmental effort between government, the private sector and civil society. It is
not a specific action or programme, but occurs when a spectrum of stakeholders harness their individual
resources and ideas to strive for a better economic status within a locality. Thus, all the stakeholders
have responsibilities and roles to play in the process.
The roles and responsibilities of the various tiers of government, as well as civil society, in the Hantam
LED Strategy are outlined below:
National Government:
The role of National Government in the Hantam LED Strategy includes the following:
1. To co-ordinate and align support to the Municipality for LED through its IDP process.
2. To provide support to the Municipalities to implement its developmental mandate.
3. To provide the overall legislative and regulatory framework for LED.
4. To maintain strong inter-governmental relationships with the Municipality.
5. To provide the necessary resources to the Municipality to implement LED.
6. To disseminate information to the Province, District and the Municipality about LED.
7. To broadly monitor the outcomes and impact of municipal-led LED activities.
Provincial Government:
1. To align LED initiatives with National and local priorities.
2. To strengthen and support the capacity of the Municipality.
3. To make available financial and technical resources to implement and sustain LED in the
Municipality.
4. To share information (provincial economic trends, land use, investment, new developments)
with the Municipality.
5. To monitor and evaluate the impact of LED initiatives provincially.
District Municipalities:
District Municipalities are better positioned to provide a co-ordinating and supporting role to the local
municipalities within their administrative areas. They have the following direct responsibilities:
1. Plan and co-ordinate LED strategies within the framework of IDP.
2. Establish the LED structure comprising of the district and local municipalities, to foster co-
operation and co-ordinate LED policies, strategies and projects within the District.
3. Identify lead LED sectors that can kick-start development within districts by undertaking
economic research and analysis.
4. Promote joint marketing, purchasing and production activities.
5. Promote networking of firms within the District (e.g. tourism routes).
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
120
6. Collect and disseminate information to assist Local Municipalities with LED policies.
7. Identify resource availability (e.g. grants, land, infrastructure, etc.).
8. Maintain a strong relationship with the Province.
9. Provide the necessary training to municipalities.
Local Municipalities:
Local Municipalities are the key LED implementation agencies of government. They have a more direct
impact on LED in terms of their potential influence on issues and factors such as by-laws, tender and
procurement procedures and other regulations. They also have a more direct influence on access to land
and the necessary infrastructure and services, promoting a positive image of their area, making their
environment more appealing and welcoming investors and visitors, facilitating skills development and
being responsive to the needs of the local and potential business concerns.
The Hantam Local Municipality, therefore, need to be proactive in promoting economic development. In
view of the above, LM has the following responsibilities:
1. Ensure that social and economic development is prioritised within the municipal Integrated
Development Plans.
2. Conduct local economic regeneration studies as part of the IDP.
3. Establish capacity within the municipality to promote interdepartmental collaboration.
4. Establish an LED Forum within the community to mobilise the efforts and resources of local
stakeholders around a common vision.
5. Build and maintain an economic database to inform decisions and act as an early warning
system for the Municipality.
6. Identify and market new economic opportunities.
7. Create an enabling environment for local businesses through efficient and effective service and
infrastructure delivery.
8. Improve the quality of life of, and facilitate economic opportunities for the local population by
addressing infrastructure and service delivery backlogs.
9. Develop an understanding and communicate the complex local economic relations, limitations
and advantages to role players.
10. Network with key sectors and role players to create partnerships and projects.
11. Motivate and support individuals, community groups and local authorities to initiate and sustain
economic initiatives.
12. Mobilise civil society to participate in LED and encourage public participation.
13. Establish sector linkages and clustering of economic activity.
The Municipality is thus the “connector” that links Local, Provincial, National and International spheres;
facilitates growth of social capital; incorporates local role players in partnerships; and accesses funds.
Furthermore according to the National Framework on LED (DPLG, 2006) Local Governments are the
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
121
primary, but not exclusive, institution for LED. Within this context, the Hantam LM has three key roles to
play:
1. To provide leadership and direction in policy making (by-laws and processes to regulate land in
manner that reduces the costs of doing business and maximises the involvement of people in
the local economy).
2. To administer policy, programme and projects (the core function of anybody or structure
responsible for LED is to co-ordinate and maximise the impact of programmes and projects with
respect to growth and development).
3. To be the main initiator of economic development programmes through public spending,
regulatory powers, and the promotion of industrial, small business development, social
enterprises and cooperatives.
Furthermore, in promoting the local economy, the primary focus of the Hantam LM should be upon the:
1. Provision of infrastructure and quality and reliable services.
2. Managing spatial policies.
3. Land-use regulation and development applications.
4. Managing service tariff policies.
5. Managing a progressive property tax system.
6. Marketing the area’s investment opportunities.
Alongside the above is the important aspect of regulating and implementing the compliance of land use
and environmental regulations. There is a need to ensure that these processes of regulation are
administered in a way that does not impair business start-up and growth and inhibit job creation. CoGTA
encourages municipalities to use regulatory impact assessment tools in measuring the balance between
the need for regulation and competitiveness. Beyond this, Municipalities can actively provide support to
local enterprises by linking up with the relevant Provincial and National tasked with this responsibility in
different economic sectors.
Civil Society:
The new developmental form of local government puts emphasis on civil society involvement in local
government activities. For civil society involvement to have the desired effect, however, representatives
should have the legibility and respect of the people or organisations they represent. Civil society should
also share a common LED vision with the local municipality within which they reside. Civil society has the
following responsibilities:
1. A community must have a core of local, capable and respected leaders who are prepared to
commit time and energy to LED. The active engagement of women and young people in the
leadership is essential.
2. Community leaders need to have or acquire the necessary skills, knowledge and attitudes
necessary to manage economic change.
3. Leaders must operate in a transparent manner and be accounTable.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
122
4. Leaders must be willing to report, listen and ensure the support of the community.
5. Leaders should provide inspiration and participate in developing new layers of leadership.
6. The community must adopt a practical development agenda which focuses on realistic and
sustainable goals, long-term plans and achieving small visible improvements by getting people
involved.
7. The goals must be realistic and address the community's needs. To achieve this, there needs to
be constant evaluation and adjustment of the action plan.
As such, civil society should participate in decision making and implementation of public programmes
that create local employment, they should encourage successful entrepreneurship, get organised to deal
with collective issues, and play watchdog roles to ensure that public resources are used to advance
social priorities.
The private sector needs to get effectively organised in business chambers and sectoral associations, it
needs to organise effective collective action to undertake LED initiatives, and it should interact with local
government to identify win-win opportunities.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
123
ANNEXURE E: SUPPORT ORGANISATION INFORMATION
Support Organisations
Private Investors A wide variety of private investors could be attracted, with private investors coming in either as partners, equity share holders or as funders through their respective Corporate Social Investment (CSI) programmes. A package of investment opportunities in the Nama Khoi LM should be developed. This should outline the nature of the investment opportunity, its feasibility in the context of the macro and micro economic climates and the expected benefit to the investor in terms of return on investment. This package of opportunities should then be publicised and targeted at potential anchor tenants and other investors.
Local Equity The local communities are the intended beneficiaries of many of the projects, and the Hantam should investigate the idea of local ownership. This can be done in a number of ways, which require further investigation4, including:
Selling share options directly to the public
Selling larger equity shareholdings to local businesses
Establishing local investment companies jointly with existing informal savings groups (stokvels or “gooi-goois”) and local businesses and facilitating them to invest in opportunities, while maintaining a stable current account to service the usual needs5 of investment members
Establishing investment partnerships with LMs, Local businesses and Section 21 companies
Funding
IDC Address: Block D, Sanlam Business Complex, 13 Bishops Avenue, Kimberley. Tel: 053 807 1050 Fax: 053 832 7395 Email: [email protected]
The IDC (Industrial Development Corporation) is a national development finance institution set up to promote economic growth and industrial development. Target beneficiaries include previously disadvantaged groups, including women, people with disabilities, low income worker groupings and marginalised communities. Projects that are supported include:
Developing small and medium enterprises
Developing rural areas and underdeveloped provinces & regions
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
124
Support Organisations
Web: http://www.idc.co.za Boosting Broad-based Black Economic Empowerment & empowering people who were previously excluded from participating in the economy
The different funds include:
Gro-E Scheme (focused on green industries; agricultural value-chain; manufacturing; mining value chain; tourism; media; & the knowledge economy)
Risk Capital Facility Programme (focused on providing risk finance to companies owned by historically disadvantaged people)
Support Programme for Industrial Innovation (focused on providing financial assistance to projects that create innovative products & processes)
Transformation & Entrepreneurship Scheme (includes five funds: women entrepreneurial fund; people with disabilities fund; equity contribution fund; development fund for workers; & community fund)
DBSA Address: Headway Hill, 1258 Lever Road, Midrand. Tel: 011 313 3911 Fax: 011 313 3086 Web: http://www.dbsa.org
The DBSA (Development Bank of South Africa) Development Fund provides grant funding and co-funding for project-level capacity building projects in South Africa. The Development Fund achieves its mission by delivering the following products and services:
Funds: capacity building funding through grants
Expertise: mobilization and deployment of technical and financial experts for infrastructure project implementation
Development facilitation: technical support and sharing of knowledge Capacity building projects enhance the institutional capability of the DBSA’s clients to identify, define and solve challenges that prevent them from managing functions, performing tasks and rendering services effectively, as well as those that develop their local economy. Grants are also approved for feasibility studies and BEE initiatives. The DBSA provides various options of support:
Lending – lending products include a range of financial instruments and other lending related services that are available to the Bank’s public and private clients. The Bank offers numerous combinations of financial instruments structured to fit the needs of the client, and lending focused on infrastructure and commercially viable projects. Long-term lending is generally for more than five years.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
125
Support Organisations
Investing – the Bank’s financing role entails the provision of a range of financial products to private and public sector organizations. The Bank’s financing role will be determined primarily by the need to play a catalytic role in leveraging private sector investment for infrastructure. Investing products include Equity Funds, BEE financing of equities, and private funding.
Underwriting guarantees – as a development orientated financial institution, the Bank is committed to assume risk for development and improve the borrowing capacity of our clients in South Africa and in the SADC region. The Bank underwrites guarantees and its credit enhances projects and/clients to attract better financing terms and conditions. Underwriting guarantees is central to capital markets development strategies.
Arranging of Finance – the Bank partners with international development and finance institutions to enhance integrated economic development and growth in SADC and South Africa.
DTI Address: 77 Meintjies Street, Sunnyside, Pretoria. Tel: 0861 843 384 Fax: 0861 843 888 Email: [email protected] Web: http://www.thedti.gov.za/
The Department of Trade and Industry's (DTI) vision is of a South Africa that has a vibrant economy, characterised by growth, employment and equity, built on the full potential of all citizens. To achieve this, the DTI has become an outwardly focused, customer-centric organisation. The purpose of the DTI is to:
Provide leadership to the South African economy through its understanding of the economy, its knowledge of economic opportunities and potential, and its contribution to ASGISA.
Act as a catalyst for the transformation and development of the economy and respond to the challenges and opportunities of the economic citizens, in order to support the government's economic goals of growth, employment and equity.
Respond to the challenges and opportunities in the economy and society.
Provide a predictable, competitive, equitable and socially responsible environment for investment, enterprise and trade.
In addition to its internal capacity, the DTI relies on a group of specialised, regulatory and financial development agencies and institutions in supporting its economic growth, employment and equity ideals, and in delivering products and services to the economic
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
126
Support Organisations
citizens of the country. These agencies or Council of Trade and Industry Institutions (COTII), include the following:
Small Enterprise Development Agency (SEDA)
Companies and Intellectual Property Commission (CIPC)
National Empowerment Fund (NEF)
Estate Agency Affairs Board (EAAB)
Export Credit Insurance Corporation (ECIC)
South African Bureau of Standards (SABS)
National Credit Regulator (NCR)
National Lotteries Board (NLB)
National Gambling Board (NGB)
South African National Accreditation System (SANAS)
National Consumer Tribunal (NCT)
National Consumer Commission (NCC)
National Metrology Institute of South Africa (NMISA)
National Regulator for Compulsory Specifications (NRCS) Through the collective efforts of the DTI group, the Department seeks to achieve the following objectives: Increase the contribution of small, medium and micro-sized enterprises (SMMEs) to the
South African economy, via financial, administrative and other support; Ensure the implementation of Broad-Based Black Economic Empowerment (B-BBEE)
across all sectors of the economy; Increase the levels of foreign direct investment into the country; Expand market access opportunities for the exportation of South African goods and
services; and Contribute towards building skills, technology and infrastructure platforms in the
economy, from which enterprises can benefit. Some of the more appropriate manufacturing sector support programmes and funds include:
Sector Partnership Fund (SPF)
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
127
Support Organisations
Small Medium Enterprise Development Programme (SMEDP)
Black Business Supplier Development Programme (BBSDP)
Critical Infrastructure Fund (CIF)
Foreign Investment Grant (FIG)
Skills Support Programme (SSP)
Strategic Industrial Projects (SIP)
Export Marketing Investment Assistance (EMIA)
Project Funding for Emerging Exporters incentive scheme (PFEE)
Khula Enterprise Finance Ltd Address: 72 Long Street, Business Partners Building, Kimberley Tel: 053 832 2275 or 053 832 9713 Fax: 053 832 9585 Web: http://www.khula.org.za/
To provide finance, mentorship services and small business premises to SMEs through a network of partnerships and to encourage the sustainable development of SMEs. The various loans include:
Enablis-Khula Loan Fund (for ICT)
Khula-Akwandze Fund(for agriculture)
Land Reform Empowerment Facility (for agriculture)
Khula Credit Indemnity Scheme (for mining)
Anglo-Khula Mining Fund (for mining)
The Credit Indemnity Scheme (for SMMEs)
Business Partners-Khula Start-up Fund (for SMMEs)
Khula Enablis SME Acceleration Fund (for SMMEs)
Retail Financial Intermediaries (for SMMEs)
The Khula Mentorship Programme (for SMMEs)
Khula Emerging Contractors Fund (for contractors)
The Khula Property Portfolio (to rent property)
NDA Address: 2nd Floor, Grosvenor Building, 195 Jan Smuts Avenue, Parktown North. Tel: 011 018 5500 Email: [email protected] Web: www.nda.org.za
The NDA (National Development Agency) aims to contribute towards the eradication of poverty and its causes by granting funds to civil society organizations (CSOs) for the purposes of: Implementing development projects of poor communities; and Strengthening the institutional capacity of other civil society organisations that provide
services to poor communities.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
128
Support Organisations
The NDA provides grant funding to CSOs which implement development projects of poor communities, and those who strengthen the institutional capacity of other CSOs who provide services to poor communities. The NDA also looks at the different stages of development in particular communities and come up with various models of interventions. This means that the NDA has a pro-active approach to funding based on the following: Request for Proposals (RFP); & Programme Formulation. Core Areas of Funding include: Food security Local economic development/social entrepreneurship NGO consortia and networks for policy and advocacy for the poor Capacity building for CSOs
NCEDA Address: 227 Du Toitspan Road, Belgravia, Kimberley Tel: 053 833 1503 Fax: 053 833 1390 Email: [email protected] Web: http://www.nceda.co.za/
NCEDA (The Northern Cape Economic Development Agency) focuses its attentions on providing the following services to the people of the Northern Cape, concentrating on key projects and the creation of spin-off and down-the-line opportunities:
Focus on key projects with the creation of spin-off and knock-on effects
Identification, prioritisation, facilitation of planning and implementation of projects
Advise potential business owners on their business proposals
Facilitation for funding of projects
Facilitation of feasibility studies
Facilitation of partnerships
Linkages of potential role-players to follow-up opportunities NCEDA focuses on specific sectors in the Northern Cape’s provincial economy, including agriculture and agro-processing, mining and mineral beneficiation, and tourism infrastructure.
SCAT Address: 3rd Floor, 19 Loop Street, Cape Town Tel: 021 418 2575 Fax: 021 418 6850 Email: [email protected] Web: http://www.scat.org.za/
The Social Change Assistance Trust (SCAT) is an independent fund-raising and grant-making development agency. SCAT works within a partnership context to support such local agencies in development and human rights work in rural communities of the Northern, Eastern and Western Cape and the North West Provinces. The focus is on human rights, gender equity, HIV, AIDS and local economic development. Programmes include:
Financial support (including grants; fundraising incentive scheme; development fund for
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
129
Support Organisations
training; & HIV/AIDS fund for development)
Field support & general organizational capacity building
Brokering partnerships
HIV and AIDS activator programme
LED
Gender equality
RDSP Address: Cathedral Place, 12 Bouquet Street, Cape Town Tel: 021 462 4555 Fax: 021 465 8338 Email: [email protected] Web: http://www.rdsp.co.za/rdsp/
Recognising the high levels of rural poverty, RDSP (Rural Development Support Programme) supports rural CBOs, development initiatives and sports groups to bring about positive change in their communities. RDSP works primarily with rural community based organisations (CBOs) and small groups in need of skills training, organisational development, mentorship and exposure. According to RDSP’s way of working, rural organisations are the implementing agents and RDSP are the support program or service providers with the common aim of alleviating rural poverty. Our programs are our tools for achieving this. RDSP programmes include:
Rural Training & Mentorship Programme
The 7 Habits Rural Leadership Training Course
Small Business Unit
Open Learning Programme
Discovery Exchange & Exposure Programme
Education / Training
SETA’s Tel: 012 309 4000 or 012 309 4573 Web: http://www.labour.gov.za/ 1. FASSET (Financial and Accounting Services) – Tel:
086 101 0001 2. BANKSETA (Banking Sector Education and Training
Authority) – Tel: 011 805 9661
Department of Labour – There are 21 SETAs (Sector Education and Training Authority) in South Africa who are concerned with learnerships, internships, unit based skills programmes, and apprenticeships. The functions of SETA’s include: the development and implementation of a sector skills plan, registering and promoting learnerships and applying to SAQA for accreditation as an Education and Training Quality Assurance body (ETQA) for qualifications in its sector. A learnership is a training programme that combines theory at a college or training centre with relevant practice on-the-job. The idea is that people really learn the “in’s and
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
130
Support Organisations
3. CHIETA (Chemical Industries Education and Training Authority) – Tel: 011 726 4026
4. CTFL (Clothing, Textiles, Footwear and Leather Sector Education and Training Authority) – Tel: 031 702 4482
5. CETA (Construction Education and Training Authority) – Tel: 011 265 5900
6. DIDTETA (Diplomacy, Intelligence, Defence and Trade and Industry Sector Education and Training Authority – Tel: 012 663 6983
7. ETDP SETA (Education, Training and Development Practices Sector Education and Training Authority) – Tel: 01 807 5621
8. ESETA (Energy Sector Education and Training Authority) – Tel: 011 689 5300
9. FOODBEV (Food and Beverages Manufacturing Industry Sector Education and Training Authority) – Tel: 011 802 1211
10. FIETA (Forest Industries Sector Education and Training Authority) – Tel: 011 712 0600
11. HWSETA (Health and Welfare Sector Education and Training Authority) – Tel: 011 607 6907
12. ISETT (Information Systems, Electronics and Telecommunications Technologies) – Tel: 011 805 5115
13. INSETA (Insurance Sector Education and Training Authority) – Tel: 011 544 2000
14. LGWSETA (Local Government, Water and Related Services Sector Education and Training Authority) – Tel: 011 456 8579
15. MAPPP (Media, Advertising, Publishing, Printing and
out’s” of an occupation by practising all its aspects under the guidance of an experienced and qualified person. There are incentives to assist in funding learnerships. These take two principal forms:
Cash Grants – Employers who pay the skills levy can claim cash grants when they provide training. These grants can be used to offset learnership costs. SETA’s (Sector Education and Training Authorities) may also provide grants for the implementation of learnerships. These learnership grants are “discretionary” so check with your SETA about this grant which can be paid in addition to the levy repayment for drafting and/or implementing a work place skills plan.
Tax Incentives – Following the registration of your learnership with a SETA you are eligible to claim a tax incentive from SARS (South African Revenue Service). There are two tax incentives, one at the beginning of teh learnership and one at the successful conclusion of the learnership: o Learners already employed by you – 18(1): Once you have entered into a learnership
agreement with a learner and have registered the agreement with a SETA, you may deduct 70% of the annual wages paid to that learner up to a maximum of R17,500.00 during the relevant year of assessment.
o Unemployed learners – 18(2): Once you have entered into a learnership agreement with a learner and have registered the agreement with a SETA, you may deduct 100% of the learnership allowance paid to that learner up to a maximum of R25,000.00 during the relevant year of assessment.
o On completion of the learnership you can claim again. Your claim can be up to 100% of the annual wage paid to an employee (18.1) or 100% of the allowance paid to an ‘unemployed’ learner (18.2) of up to a maximum of R25,000.00 during the relevant year of assessment.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
131
Support Organisations
Packaging) – Tel: 021 949 1463 16. MQA (Mining Qualifications Authority) – Tel: 011 630
3500 17. MERSETA (Manufacturing, Engineering and Related
Services Education and Training Authority) – Tel: 011 484 9310
18. POSLECSETA (Police, Private Security, Legal and Correctional Services) – Tel: 011 805 0084
19. PAETA (Primary Agriculture Education and Training Authority) – Tel: 012 325 1655
20. PSETA (Public Service Sector Education and Training Authority) – Tel: 012 314 7251
21. SETASA (Secondary Agriculture Sector Education and Training Authority) – Tel: 012 365 2827
22. SERVICES (Services Sector Education and Training Authority) – Tel: 011 715 1800
23. THETA (Tourism and Hospitality Education and Training Authority) – Tel: 011 803 6010
24. TETA (Transport Education and Training Authority) – Tel: 011 781 1280
25. W&RSETA (Wholesale and Retail Sector Education and Training Authority) – Tel: 012 452 9200
NRF Address: Meiring Naudé Road, Brummeria, Pretoria Tel: 012 481 4000 Fax: 012 349-1179 Email: [email protected] Web: http://www.nrf.ac.za
As an independent government agency, the NRF (National Research Foundation) promotes and supports research in all fields of knowledge. The objectives of the NRF includes:
Promote & support research through funding, human resource development and the provision of the necessary facilities in order
To facilitate the creation of knowledge, innovation and development in all fields of science and technology, including indigenous knowledge
To contribute to the improvement of the quality of life of all the people of the Republic
SEDISA SEDISA (Soicio-Economic Development Initiative South Africa) is an organization that
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
132
Support Organisations
Address: Sherbourne Square, 5 Sherbourne Road, Parktown. Tel: 011 726 3052 Fax: 086 510 5849 Web: http://sedisa.co.za/
facilitates and manages socio-economic development for and on behalf of South African businesses. At SEDISA we pride ourselves in or ability to create sustainable access to the economy for those beneficiaries that we assist.
The Teacher Enhancement Programme helps South African teachers to obtain the skills necessary to offer the best possible education to students. We help teachers to understand classroom management & OBE and provide resources and support.
The School Resource Program provides scarce resources to under-resourced South African Schools. This includes Infrastructure; classroom; student and human resources necessary for schools to provide quality education.
Student Support Services provides Student bursaries and loans to historically disadvantaged South Africans in order to make sure that all South Africans have access to tertiary education.
Artitisan SA helps historically disadvantaged South Africans to obtain skills and qualifications as Artisans. This provides employment opportunities for beneficiaries and scarce skills for Contributors.
NYDA Address: 1 Church Street, Okiep, Springbok Tel: 027 744 1654 Fax: 027 744 1654 Web: http://www.nyda.gov.za/
The National Youth Development Agency (NYDA) aims to initiate, facilitate, implement, coordinate and monitor youth development interventions aimed at reducing youth unemployment and promoting social cohesion. The mandate of NYDA include:
Advance youth development through guidance and support to initiatives across sectors of society and spheres of government
Embark on initiatives that seek to advance the economic development of young people
Develop and coordinate the implementation of the Integrated Youth Development Plan and Strategy for the country. The two documents serve as guiding instruments in advancing youth development at all levels of government
The functions of NYDA include:
National Youth Service and Social Cohesion
Economic Participation
Policy, Research and Development
Governance, Training and Development
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
133
Support Organisations
Youth Advisory and Information Services
National Youth Fund
Clover Mama Afrika Address: 200 Constantia Drive, Constantia Kloof, Roodepoort. Tel: 011 471 1400 Email: [email protected] Web: http://www.mama-afrikanews.co.za/
The Clover Mama Afrika – Ukwakha Isizwe (Building and nurturing our nation) project is a national social upliftment project which seeks to assist and support communities at grassroots level in an enabling and empowering manner so they can help themselves and those around them. The project’s main involvement is with women who look after abused, abandoned, orphaned and HIV/Aids children as well as the elderly. Training and Skills Development:
Cooking and Baking Courses
Bread Oven Project
Sewing Project
Food Gardens
Quilting
Crocheting Workshops Added Value Workshops/Self-Help Projects
Vodacom Phone Shops and Mobile Public Phones
Save a Child – First Aid Course
Basic Finance Management
Beadwork
Art workshop
Flower arrangement
Rally to Read Address: 203 North Ridge Road, Durban Tel: 031 268 9298 Cell: 079 528 6766 Email: [email protected] Web: http://www.rallytoread.co.za/
The Rally to Read provides rural schools with educational resources. Organisers and participants of the Rally have visited the most remote and needy schools in rural areas to deliver books, teaching aids, science kits, sports equipment, educational toys and other material – all of which are taken for granted at urban schools.
Microsoft Citizenship As a global leader in technology, Microsoft has a unique opportunity and responsibility to
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
134
Support Organisations
Address: 3012 William Nicol Drive, Bryanston, Johannesburg. Tel: 011 990 5000 Fax: 011 361 7004 Email: [email protected] Web: www.microsoft.com/southafrica/citizenship
apply its expertise in helping people. The corporation shares Government’s priorities and supports its efforts to execute plans that will address these priorities. At the same time, they recognise the potential of technology to enable people to 'realise their potential'. Microsoft Citizenship focuses on three key pillars that support addressing South Africa's priorities:
Education: Expanding education opportunities through technology and training. This is done by supporting the education system (Grade R-12) with technology software donations, training of teachers and establishing IT Academies.
Innovation: Supporting different communities to innovate in the technology sphere. This is done by supporting three innovation centres, together with the Imagine Cup (an annual technology competition for university students), developing Microsoft software in Afrikaans, isi-Zulu, Sesotho sa Leboa, isiXhosa and Setswana, and supporting the local software industry.
Skills for Employability: Establish IT training opportunities at various levels (basic digital literacy to certified Microsoft engineers) and work with partners and others to support employment of the trainees.
Khulisa Social Solutions Address: 7th Floor, Rosebank Gardens, 33 Bath Avenue, Rosebank. Tel: 011 788 8237 Fax: 011 788 3353 Email: [email protected] Web: http://www.khulisa.org.za/
One of Khulisa’s fundamental values/strategies is to view all compatible stakeholders as partners in achieving a greater impact through increased service delivery. In the areas where we operate all local resources are included in the implementation process. Khulisa works in diverse environments ranging from prisons and schools to large-scale projects that we engage with using a systemic approach. This enables different role-players to work effectively and collaboratively. Our services include the design and development of learning programs, diversion programs, remediation and learning processes.
EPWP Northern Cape Dept. of Transport, Roads and Public Works ([email protected]) Dept. of Economic Affairs, Environmental Affairs & Tourism ([email protected]) Web: http://www.epwp.gov.za
The Expanded Public Works Programme (EPWP) is one of government arrays of programmes aimed at providing poverty and income relief through temporary work for the unemployed to carry out socially useful activities. The EPWP involves creating temporary work opportunities for the unemployed, using public sector expenditure. It builds on existing best-practice government infrastructure and social programmes either by deepening their labour absorption or extending them. All of the work opportunities generated by the EPWP are therefore combined with training, education or skills development, with the aim of increasing the ability of people to earn an income once they leave the programme. The following sectors
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
135
Support Organisations
are focused on: infrastructure; environment; social; and economic.
SAAA Tel: 021 880 1275 Website: http://www.agriacademy.co.za/
SAAA (South African Agri Academy) is a Section 21 company providing market information, training and business advice/coaching and strategic market linkages to the emerging farmers in the agricultural sector. SAAA’s core business is focused on the commercialization of the new SME farmer sector (as beneficiaries of the LRAD programme). These new entrants do have an existing product but they do lack the business, marketing, financial and management expertise as well as access to markets. Training and business advice is based on all the components of a market driven value chain. Sustainable market access is the measurable outcome of such interventions through training, business coaching and strategic linkages.
CSIR Address: Meiring Naudé Road, Brummeria, Pretoria Tel: 012 841 2911 Fax: 012 349 1153 Email: [email protected] Web: http://www.csir.co.za/
The CSIR (Council for Scientific and Industrial Research) is one of the leading scientific and technology research, development and implementation organisations in Africa. The CSIR undertakes directed and multidisciplinary research, technological innovation as well as industrial and scientific development to improve the quality of life of the country’s people and to improve national competitiveness in the global economy. Science and technology services and solutions are provided in support of various stakeholders, and opportunities are identified where new technologies can be further developed and exploited in the private and public sectors for commercial and social benefit.
Red Door Address: 6th Floor, Waldorf Building, 80 St George's Mall, Cape Town Tel: 021 483 2628 Fax: 021 483 4892 Web: http://www.capegateway.gov.za/reddoor
The Red Door (Real Enterprise Development Initiative) is an initiative of the Enterprise Development sub-directorate within the Department of Economic Development and Tourism. The sub-directorate aims to promote the development of small and/or black-owned enterprises. The RED Door is a one-stop shop for new and existing businesses looking for help and advice, from the most basic to the most sophisticated. Red Door helps businesses: (1) write a business plan; (2) identify and fix the weak points in your business; (3) find access to finance; (4) get affordable support from our network of business service providers; (5) find accountants and lawyers; (6) improve your business skills; (7) learn how to apply for and win government tenders; (8) find out about government incentives; (9) find out about client relations, marketing and research; and (10) learn about how to import and export.
Agricultural Support
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
136
Support Organisations
CASP Address: Department of Agriculture, Private Bag x250, Pretoria, 0001 Tel: 012 319 7553 Web: http://www.nda.agric.za/docs/CASP/casp.htm
The aim of CASP (Comprehensive Agricultural Support Programme) is to provide post-settlement support to the targeted beneficiaries of land reform and to other producers who have acquired land through private means and are, for example, engaged in value-adding enterprises domestically or involved in export. The programme will make interventions in six priority areas: Information and technology management Technical and advisory assistance, and regulatory services Marketing and business development Training and capacity building On/off farm infrastructure and product inputs Financial support Beneficiaries include: the hungry, subsistence and household food producers, farmers, & agricultural macro-systems within the consumer environment. Objectives and allocation criteria for the CASP grant include: Community involvement and ownership Target beneficiaries should be from the previously disadvantaged group Enhances national and household food security One-off grant and not committing the Government to any form of direct recurrent
operational or maintenance projects grants Long-term sustainability and economic viability Project finance support will only be provided for agricultural activities having the required
level of institutional and technical support Projects that will generate employment opportunities should be given priority
LRAD Tel: National – 012 319 7654 or Northern Cape – 053 831 4090 Web: http://www.services.gov.za
The LRAD (Land Redistribution for Agricultural Development) is designed to provide grants to black South African citizens to access land specifically for agricultural purposes. The objectives of the Programme include:
Helping previously disadvantaged people in rural areas to improve their living standard, by enabling them to run their own large or small farms effectively
Broadening the opportunities available to young people who live in rural areas
Stimulating agricultural production – which will be to the benefit of the entire country.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
137
Support Organisations
The applicant identifies the land he/she wishes to buy. Alternatively, the applicant might already have access to land, such as communal land or land belonging to Amakhosi. The size of the grant is intended to help applicants with small resources to become farmers. If the applicant can afford to make a bigger input to buy a larger piece of land, the proportional size of the grant in relation to his/her input will be smaller than that provided to help the less well-off person. People who already live on agricultural land in communal areas, and who need a grant only to develop the land (not to buy it), may also apply for an LRAD grant. Small farmers may apply in groups for grants for the purpose of buying agricultural land.
Land Care Programme Tel: National – 012 319 7553/7685 or Northern Cape – 049 842 1113 (Ext. 2320) Web: http://www.agrinc.gov.za/ & http://www.daff.gov.za/
Land Care is a community-based & government supported approach to the sustainable management and use of natural agricultural resources. The goal of the National Land Care Programme is to develop and implement integrated approaches to natural resource management in South Africa, which are efficient, sustainable, equiTable, and consistent with the principles of ecologically sustainable development. LandCare provides an umbrella for co-ordinated and co-operative actions to improve land management across the broader community. Local government has a role through:
Assisting information exchange and with the co-ordination of community activities
Acting as a community advocate
Providing resources to help local groups
Developing and applying local conservation strategies’
Exercising statutory planning responsibilities. In summary, LandCare South Africa is a community-based programme supported by both the public and private sector through a series of partnerships.
SPP Address: Unit B102, Hopley Centre, Cnr Van Riebeeck & Van Der Stel Streets, Sprinbok. Tel: 0277 181370 Fax: 0277 181302 Email: [email protected] Web: http://www.spp.org.za
Surplus People Project (SPP) advocates for pro poor agrarian reform and food sovereignty. We believe that the rural economy can be transformed through land, water and agricultural reform. SPP support and build grassroots organisations & movements of small-scale farmers, farm dwellers and women in the Western and Northern Cape, through a process of political education, social mobilisation, institutional and agricultural development and research. SPP programmes include:
Agrarian reform for food sovereignty (which includes a small scale farmer programme & a
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
138
Support Organisations
farm dweller programme)
Agro-ecological farming (which includes workshops, training, methods & practices, & horizontal learning exchanges)
Research & information (research that would assist in and complement popular education and information needs of communities)
Advocacy & lobbying (contribute towards the development of an alternative pro poor agrarian policy framework and support the awareness raising of the landless men and women)
MAFISA Tel: 053 838 9100 Fax: 053 838 9169 Email: [email protected] Web: http://www.agrinc.gov.za
The Micro Agricultural Finance Institute of South Africa (MAFISA) will contribute to assisting the working poor to run existing agricultural businesses, starting new agricultural businesses and be able to develop these into fully commercial operations. The Scheme does not cover all fields of intervention and cannot be mechanically applied. It needs to be adapted to the socio-economic setting of each area and leave room for financial innovations beyond the scope of this Scheme. Government’s desire to establish MAFISA is driven by the following policy objectives:
To re-establish an agricultural credit scheme through the department of agriculture targeting the micro and small agricultural and related business
To provide capital to increase agricultural and other forms of related activities Government set up MAFISA to drive and facilitate the development of financial services, which will contribute to develop very small and micro level farmers, farm workers, farm tenant, small landholder, landless, emerging farmers, processors, micro-entrepreneurs, and the working poor. The people who could qualify for MAFISA financial assistance must:
Be active within the agricultural sector, whether it be in the rural or peri-urban areas
Be able to embark on self-help initiatives to: (i) improve their livelihoods, (ii) reduce poverty, (iii) develop viable businesses, and (iv) show potential to graduate into larger commercial businesses
Be able and willing to repay the money they borrow Farmer businesses, which qualify, will be able to borrow up to R100 000, at an affordable rate. Application forms are available at the Land Bank and local Provincial Department of
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
139
Support Organisations
Agriculture.
CRLS Address: 39 George Blake Avenue, Plankenbrug, Stellenbosch. Tel: 021 883 8032/3 Fax: 021 886 5076 Email: [email protected] Web: http://www.crls.org.za/
The Centre for Rural Legal Studies (CRLS) is committed to the redistribution of power and resources in rural areas of the Western, Northern and Eastern Cape provinces of South Africa. The CRLS has developed considerable expertise in training, research and advocacy in the land and labour sectors with a specific gender emphasis. The CRLS promotes the land and labour interests of men and women farm workers through:
Training courses (includes: employment equity; basic conditions of employment for farm workers; understanding unfair labour practices; HIV/AIDS in the workplace; training rural legal literacy trainers; alternative dispute resolution skills; training for community researchers; & organisational rights skills training)
Information dissemination (information on legislation and policies related to the agricultural labour and land sector)
Research (in development facilitation, advocacy and training and information dissemination programmes)
Advocacy (in gender equity, employment conditions, land rights, enforcement of legislation, housing)
Legal intervention (legal advice & support services)
Development facilitation (facilitating development processes that typically occur on farms)
Household Food Production, Food Security and Starter Packs Tel: (012) 319 6736/6741/7950/6692 Web: http://www.info.gov.za
This is an intergovernmental project aimed at providing interim relief measures to households and beneficiaries severely affected by food insecurity and the price escalation of basic food items by providing agricultural input and equipment for own food production. The programme: Provides agricultural input and equipment to the existing food security campaign and
Special Programme for Food Security Projects (SPFS) and the National Food Emergency Scheme (NFES) beneficiaries
Encourages household food production through improvement of crop intensification, diversification, adoption of simple and affordable technologies
Promotes home (backyard mix farming) and where appropriate, school gardens and urban
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
140
Support Organisations
agriculture, using sustainable technologies and encouraging the sustainable utilisation of unused or underutilised resources.
The project is mainly targeted at groups or individuals in rural and urban areas.
RMAA Address: CSIR, Meiring Naude Road, Brummeria, Building 4, Room 179. Tel: 012 349 1237/8/9 Fax: 012 349 1240 Email: [email protected] Email: [email protected] Web: http://www.rmaa.co.za/
The RMAA (Red Meat Abattoir Association) is a representative forum for abattoir owners in South Africa. RMMA serve abattoir owners by: Providing specialised training and technical support, Distributing relevant information and Representing owner’s interest to secure standards of meat safety and quality to the
benefit of the red meat industry and the consumer Training programmes include: routine training; alternative training; correction of slaughter methods; starting-up of new abattoirs; operational investigations; hygiene management; good manufacturing practices & hazard analysis critical control point; & hygiene awareness. Training courses need to be paid for. Regional workshops will be held in the Northern Cape on 9 September 2011.
SAPPO Address: P.O. Box 36207, Menlo Park. Tel: 012 361 3920 Fax: 012 361 4069 Email: [email protected] Web: http://www.sapork.com/
The South African Pork Producers’ Organisation (SAPPO) is the mouthpiece of commercial pork producers in South Africa. The organisation serves the South African pork producer by co-operating within the organised agricultural fraternity and by liaising with various sectoral organisations, role-players within the supply chain of the meat industry, the government and international interest groups. SAPPO’s developing programme for new producers mainly focuses on training, which takes place on developing pig units, at farmers’ days and by means of study groups among developing farmers. Farmers who are on the brink of becoming commercial producers receive intensive mentorship that mainly takes place at pig units. Those already farming commercially receive regular and more focused attention. Provincial pig veterinarians, who keep a close watch on the disease status of the units, regularly visit them. SAPPO pays for these veterinarian visits.
Department of Agriculture, Fisheries & Forestry Agriculture, Land Reform and Rural Development, Northern Cape George Street, Themor House, Kimberley Tel: 053 838 9158
Department of Agriculture, Fisheries & Forestry – will soon be launching a call-centre where people with an interest in becoming commercial farmers can get useful information, including how to access finance.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
141
Support Organisations
Fax: 053 832 4328 Email: [email protected] Web: http://www.agrinc.gov.za
ARC Address: 1134 Park Street, Hatfield, Pretoria Tel: 012 427 9700 Fax: 012 342 3948 Web: http://www.arc.agric.za
The objective of the ARC (Agricultural Research Council) is the conducting of research, development & technology transfer in order to:
Promote agriculture & industry
Contribute to better quality of life
Facilitate/ensure natural resource conservation This function is carried out through 11 research institutes whose activities are grouped under five divisions: Field Crops (Grain and Industrial Crops), Horticulture, Animal Production and Health, Natural Resources and Engineering as well as Technology Transfer. The ARC is also responsible for maintaining national assets and undertaking programmes or rendering services that are required from time to time by the department and other stakeholders.
RUDNET Address: Room 201, Libri Business Centre, Libri Avenue, Somerset West. Tel: 021 8500 790 Fax: 021 8500 791 Email: [email protected]
RUDNET (Rural Development Network) is a network of non-governmental organizations (NGO’s) committed to enhancing the quality of life of farm-working communities through the provision of a cohesive and sustainable programme of integrated and quality development services. RUDNET was established to address, among others, the following problems:
Farm workers are a marginalized group whose needs have been overlooked
71% of people in rural areas live below the poverty line; Social conditions are poor including alcoholism, limited education, poor health (HIV/AIDS, TB)
The threat that conditions poses to the Wine Industry and agricultural sector in general if these conditions and problems are not addressed.
RUDNET aims to alleviate these problems by positioning a network of NGO’s that will work together ensuring no duplication of work. Funding is acquired through the PAWC. RUDNET operates within the Western Cape but they aim to establish a branch within the Northern Cape.
SAMSA Port Nolloth (Atlantic Ocean Port)
South African Marine Safety Authority’s (SAMSA) objective is to lead and champion South Africa’s maritime interests as custodians and stewards of maritime policy, vigorous promoters
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
142
Support Organisations
Old Post Office Building, Kus Road, Port Nolloth. Tel: 027 851 7695 Fax: 027 851 7699 Web: www.samsa.org.za
of the maritime sector and giving full and complete effect to our obligations for the benefit of all stakeholders. Services on behalf of Government include: (1) advice to the Minister of Transport on maritime issues affecting South Africa; (2) maintenance and proposals on legislation and policy; (3) liaison with other governments and international institutions on behalf of Government; (4) liaison with other state departments and South African institutions on behalf of the Minister of Transport; (5) flag State Implementation; (6) providing a maritime Search and Rescue (SAR) capability in the South African area of responsibility through the management, on behalf of the DOT, of the Maritime Rescue Coordination Centre (MRCC); (7) Port State control; (8) accident investigations and Emergency Casualty Response; (9) administration of government maritime contracts; (10) management of the DOT contracted pollution prevention and response capability; and (11) representation at international forums. Technical services to the maritime Industry, locally and abroad include: Statutory surveys and Safety certification of ships Certification of Seafarers Assistance and advice on maritime legislation Advice and approval for the construction and refitting of vessels Evaluation and approval of fittings and equipment used in the construction and fitting out
of vessels Consultancy to industry on technical matters, safety and qualifications Services to stakeholders include: Safety equipment approval Port State Control Inspections Inspections of ships and cargoes of timber, grain and hazardous goods Accreditation of maritime training institutions and maritime training programmes Examination of Seafarers Monitoring of South African seafarers’ welfare and conditions of service Registration of Ships Provision of maritime safety information to shipping Ensuring a reliable radio service to shipping in respect of maritime safety information Casualty investigation and management
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
143
Support Organisations
Oil pollution incident response and investigations Ensuring that navigational aids are in place around the South African coastline Maintenance of a maritime Search and Rescue organisation in co-operation with the
Department of Transport Promoting seafarer training in South Africa Collection and maintenance of shipping information and statistics Pro-active development and promotion of maritime safety in South Africa’s territorial
waters
Mining Development
DMR
Tel: (027) 712 8160
Fax: (027) 712 1959
Email: [email protected]
The Department of Mineral Resources deems the role of small-scale mining in community
upliftment, job creation and poverty alleviation as critical. The small-scale mining sector is
faced with many challenges such as lack of access to finance and markets, shortage of skills
and inadequate or non-compliance with regulatory requirements, all of which the
Department of Mineral Resources is working towards addressing.
The small-scale mining sector has historically mainly comprised alluvial diamond and in-land
salt mining, but lately the bulk of the demand for small-scale mining ventures is associated
with industrial commodities, such as slate, sand, clay, sandstone, dolerite and granites for the
production of infrastructural development products such as tiles, clay and cement bricks,
aggregates and dimension stone for cladding.
The department assists aspiring small-scale miners in:
• establishing legal entities
• guiding towards the identification of mineral deposits
• doing environmental impact assessments, and feasibility and market studies
• legal and contractual arrangements and mineral rights
• developing mining equipment.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
144
Support Organisations
The Small-Scale Mining Board has been set up as a point of delivery for the services required
by the small-scale mining sector. It coordinates a substantial amount of expert capacity and
experience and specialises in planning and developing a viable mining project through pre-
feasibility stages.
Mintek’s Small Scale Mining (SSM) Division
Manager Small-Scale Mining and Beneficiation Division:
Tel +27 11 709 4942,
Fax +27 11 709 4581,
Email: [email protected]
Mintek’s Small Scale Mining (SSM) Division was established with the aim of assisting
entrepreneurs to apply for mining licences, conducting the test work required to draw up
feasibility studies, and in some cases commissioning their plants for value-adding operations.
The overall purpose is to assist artisanal and small-scale miners (ASSMs) to operate more
efficiently and economically, to ensure sustainability, and to improve the informal and
environmentally unsound practices that prevail in this sector.
Tourism Development
The Department of Economic Affairs and Tourism in the Northern Cape Tel: (053) 839 4015 Fax: (053) 831 3668
The Department of Economic Affairs and Tourism in the Northern Cape offers:
Encourage the start-up of new ventures by marketing the services offered by the
department
Facilitate exposure to tourism SMMEs at national and international tourism
exhibitions
SMME are also referred to other relevant institution by making contact on their
behalf and assist in ensuring that the relevant information is disseminated to SMMEs
Market of their products and services within the overall marketing plan of the
Province and major activities like the Northern Cape Expo which is held annually
To ensure that SMMEs participate in all services offered by National Government, e.g.
the TEP programme
The local business service centre assists SMMEs with the drawing up business plans
Mentorship is given to SMMEs to ensure that their businesses succeed
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
145
Support Organisations
General advice on the business selection and feasibility
TEP Address: 543 Voortrekker Street, Springbok Tel: 027 712 1687 Fax: 027 712 1685 Email: [email protected] Web: http://www.tep.co.za
TEP (Tourism Enterprise Partnership) offers a portfolio of services and solutions for small tourism businesses, Corporate South Africa, Government institutions as well as local and international tourists. TEP's role in the tourism industry becomes more clearly defined as a necessary and active participant in the tourism service chain. It develops people (skills) and products (quality and diversity), in a combined format, for the purpose of creating an 'alternative face' to the traditional tourism experience of South Africa. Exposing this undiscovered element of South Africa brings these products, a combination of room inventory and rich heritage experiences that are lying dormant and under-utilised, into the mainstream of tourism. TEP offers the following services:
Small tourism business development
Tourism skills development
Enterprise development portfolio
South African hidden treasures
Research
SMME Development
SEDA Namakwa Branch Address: 8922 Voortrekker Rd, Springbok Tel: 082 883 8560 Email: [email protected] Web: http://www.seda.org.za/
SEDA (Small Enterprise Development Agency) supports and promotes co-operative enterprises, particularly those located in rural areas. The work of SEDA is carried out in line with the Department of Trade and Industry's Integrated Small Enterprise Development Strategy, which aims to: Strengthen support for SMMEs' access to finance Create an enabling regulatory environment Expand market opportunities for specific categories of small enterprises Localise small business support through a grid of seda-coordinated information and
advice access points Initiate a national entrepreneurship drive and expand education and training for small
business
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
146
Support Organisations
Co-fund minimum business infrastructure facilities in local authority areas across the country
The core of SEDA’s clients are predominantly start-ups or survivalist entrepreneurs. SEDA offers non-financial assistance to SMME’s with the emphasis on assisting people at grass root level.
Aurik Business Incubator Address: 3rd Floor, 132 Jan Smuts Avenue, Rosebank, Johannesburg Tel: +27 (0)11 447 5575 Fax: 086-517-7809 Email: [email protected] Web: http://www.aurik.co.za/
Supporting emerging entrepreneurs with sound business skills to develop their businesses into sTable, sustainable SME’s as well promoting entrepreneurship on a mass scale are key priorities of national importance. The Aurik Incubator will develop crucial business skills to identified entrepreneurs, thereby increasing the success of government initiatives to build sustainable SMEs.
Nedbank Address: 21 Schodder Street, Upington Tel: 054 3384400 Fax: 054 3384437 Email: [email protected] Web: http://www.nedbank.co.za
The group’s qualifying Enterprise Development contributions include: Grant contributions, which comprise overhead costs (salaries, direct costs incurred in
supporting ED and other direct costs incurred, such as the Small Business Services free banking seminars).
Loans and related contributions in the form of black EME and QSE loans from Nedbank Business Banking and Nedbank Retail, and standard loans to other beneficiary entities, such as agriculture financing.
Contributions made towards human resource capacity building, such as the free service that Nedbank Small Business Services consultants provide for QSEs.
Shorter payment periods in procurement.
Siyakha Consulting Address: 337 Bryanston Drive, Bryanston Tel: 011 706 9006 Web: http://www.siyakha.co.za/
Siyakha works closely with the private and public sector in managing and developing Enterprise Development initiatives across the regions to support and develop emerging, qualifying black-owned enterprises. Each business is given support, guidance, training and development to enhance the business itself, the sustainability of the entity in the future and the opportunities for the individuals involved to support their ongoing development. Entrepreneurial Training: Siyakha’s Entrepreneurial Training Programme is a 5 day intensive workshop that is provisionally accredited by the Services SETA. Mentorship and Incubator Assistance Individuals have access to a team of specialists to support them whilst they
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
147
Support Organisations
establish their business initiative.
Standard Bank Enterprise Development Unit Address: 9th Floor, Standard Bank Centre, 5 Simmonds Street, Johannesburg. Tel: 011 299 4701 Email: [email protected] Web: http://www.standardbank.com/
Standard Bank South Africa has established an Enterprise Development team to support small enterprises. This team reviews the bank’s existing offerings to small and medium enterprises (SMEs) and provides new and supportive services to meet the needs of this market. This includes leveraged finance, contract finance and franchising; business advice seminars, research sponsorships and customer guides.
Identity Development Fund Managers (Pty) Limited Address: 22 Oxford Road, 1st Floor Etana House, Hollard campus, Parktown. Tel: 011 351 2900/2910 Fax: 011 351 8091 Email: [email protected] Web: www.idf.co.za
IDF is targeted solely at black-owned businesses, with an emphasis on businesses based in rural and peri-urban areas, as well as enterprises owned by youth and women. Their services include: Management of funds aimed at SME investment and development; Advisory services for management of existing SME investment portfolios; and Advisory services on strategy and implementation of new projects aimed at investment in
and development of SMEs. Business training On-going business advisory services Coaching and mentorship Technical support Market access
FABCOS Address: Gleetway House, 6th Floor, Cnr. Martin Hammerschlag Way & Cross Street, Foreshore, Cape Town Tel: 021 421 0157 Web: www.fabcos.co.za
FABCOS (The Foundation for African Business and Consumer Services) is a membership-based organization promoting the development of Black business in South Africa. FABCOS has established offices in all nine provinces and they actively participate in formal business and governmental initiatives, campaigning for the continual improvement of South Africa’s socio-economic climate for the benefit of its members. As one of only four national business chambers, FABCOS actively lobbies and creates new growth opportunities for its members and businesses through their participation in the national associations it has established in nine business sectors.
Anglo American SME Fund Address: P.O. Box 61587, Marshalltown, Johannesburg. Tel: 011 638 4172
Anglo American Zimele – Anglo American’s enterprise development and investment fund – creates and develops commercially viable and sustainable small and medium enterprises (SMEs) by providing empowerment opportunities for previously disadvantaged South
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
148
Support Organisations
Fax: 011 638 5321 Email: [email protected] Web: http://www.angloamerican.co.za/ Telephone numbers: Supply Chain Fund: 011 638 5520 Khula Mining Fund: 011 638 3716 Communities Fund: 011 638 2749 Olwazini Fund: 011 638 2621
Africans. Over the past 20 years, the initiative has become a catalyst for emerging black business, with the knock-on effect being sustainable job creation and socio-economic development in predominantly rural and peri-urban mining communities. Through Anglo American Zimele, four funds are operated: The Supply Chain Fund focuses on procurement and business development opportunities
for black-owned and managed SMEs within our supply chain. The Anglo American Khula Mining Fund manages mining-related investments as a joint
initiative with Khula Enterprise Finance Limited, a government-owned entity that promotes SME development.
The Communities Fund supports entrepreneurs and small businesses in the communities in which we operate. This is achieved by means of loan finance and hands-on guidance and support from our network of Small Business Hubs.
The Olwazini Fund is designed to assist women, the disabled and young people to establish and run their own small businesses in our mining communities. Entrepreneurs undergo skills training prior to establishing their enterprises.
SBP Address: 79 Oxford Road, Saxonwold, Johannesburg Tel: 011 486 0797 Fax: 011 486 0810 Email: [email protected] Web: http://www.sbp.org.za/
SBP (Small Business Project) is focused on promoting a policy, regulatory and operating environment that supports business growth. We also design and implement business development solutions. In this context we have a wealth of experience in facilitating strategic partnerships. SBP works with a wide range of partners and clients, from large corporates to small businesses, organised business associations, national governments and government agencies, and international donor agencies. SBP’s work covers a number of distinct but inter-related areas:
Baseline research and intelligence
Better regulation projects - our 'cutting red tape' projects and regulatory impact assessment
Enabling environments for business
including design of the Investment Climate Facility for Africa (ICF)
Enterprise development
business linkages and SME development
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
149
Support Organisations
Programme evaluations and impact assessments
Renewable Energy
EDC Telephone +27 10 201 4700 Fax: +27 10 201-4820 Email: [email protected] Web: http://www.cef.org.za/
The Energy Development Corporation (EDC) a division of State-owned Central Energy Fund (CEF) which is controlled by the Minister of Minerals and Energy. The focus of this division is to invest in renewable energy and alternate energy fields. The EDC supports energy development through commercial, developmental and social projects. EDC focuses on a number of areas including solar energy, wind energy, hydro energy, biomass, biogas and low-smoke fuels. It supports energy development through commercial, developmental and social projects. EDC supports the development of an energy economy in which modern renewable energy provides affordable access to energy, thus contributing to sustainable development and environmental conservation. EDC providing equity funding for commercial projects and development funding for developmental and social projects.
These organisations below will help SMMEs but the Municipality will need to help market their SMMEs to these organisations so that these
organisations will partner them with investors
Edge Growth Address: 3rd Floor, 82 Grayton Drive, Sandton Tel: 011 292 7974 Fax: 2711 292 7911 Email: [email protected] Web: http://www.edgegrowth.com
Edge Growth provides corporate investors with a number of products to enable effective and impactful use of their ED Spend. Our solutions are tailored to our client’s unique needs and requirements, ensuring the greatest possible return on their ED spend (social returns, BEE points and financial returns). Services include:
Vumela Enterprise Development Fund Solution (includes strategy design, selection & structuring SMME investments, SMME growth support, & ogoing SMME portfolio management)
ED Strategy Design & Management (includes design of ED/PP strategy & organizational model & implementation & ongoing management of strategy)
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
150
Support Organisations
SMME Growth Supoort (includes sourcing of high potential deals; structuring of SMME investments; provision of SMME support services; & ongoing monitoring & management of SMMEs)
The Hope Factory Tel: 011 621 6643 Email: [email protected] Web: http://www.thehopefactory.co.za
The mission of The Hope Factory is to create opportunities for people from previously disadvantaged communities to be trained in business, technical and life skills, to gain practical experience and to be financially productive. To provide training in: Small Business & Entrepreneurial Skills Technical skills including sewing and patternmaking, basic beadwork, paper product
manufacturing, and crocheting Life Skills (including HIV/AIDS, Time Management, Presentation, CV Writing). Once the learners have graduated, they can choose to start their own business, seek formal sector employment, or join The Hope Factory's Job Creation Project. Within this job creation project, graduates manufacture a wide range of beautiful, handmade corporate gifts and conference materials.
Tshikululu Social Investments Address: Block B, Metropolitan Office Park, 8 Hillside Road, Parktown. Tel: 011 544 0300 Fax: 011 484 5997 Web: http://www.tshikululu.org.za/
Tshikululu Social Investments is a bridge between the interests of corporate clients who are committed to community grantmaking, and the realities found at the heart of development. Tshikululu advises, creates, implements and manages all-in-one corporate social investment solutions.
Marketing
TradeInvestSA Address: 3rd Floor, SunClare Building, 21 Dreyer Street, Claremont, Cape Town Tel: 021 657 6200 Website: www.tradeinvestsa.co.za
The TradeInvestSA website was launched in 2007, offering investors and business people free access to specific investment and trade opportunities in South Africa. The fully searchable database enables users to quickly access opportunities relevant to their sector or region. The TradeInvestSA newsletter is distributed monthly via email to a targeted database of over 50,000 recipients in South Africa and internationally. The newsletter highlights on a monthly basis the key opportunities, investment features and information, and news updates, and in so doing serves to drive potential investment and trading partners.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
151
Support Organisations
TISA Tel: 0861 843 384 Website: www.thedti.gov.za
TISA (Trade and Investment South Africa) works under the umbrella of the DTI and provides investment facilitation services for inbound investors. TISA focuses on promoting sectors of the South African economy that show the biggest growth potential and marketability, and coordinates provincial initiatives to match investors’ requirements with opportunities in the provinces. TISA has three business units, namely:
Investment Promotion and Facilitation
Export Development and Promotion
International co-operation
Other
LASS Department of Rural Development and Land Reform Tel: 0800 0070 95 Web: http://agritv.co.za/
The objective of the Land Acquisition for Sustainable Settlements (LASS) is two-fold:
Commonages for Agricultural Development: to enable municipalities to acquire land to extend or create a commonage for the purpose of establishing schemes involving the productive use of the land resources
Urban Settlements: to enable municipalities to acquire land for residential development but within the confines of the resources allocated to the Department and the conditions set by the Department
The LASS grant that can be made available to municipalities that have a dire need for land for settlement purposes. The LASS approach calls for Municipalities to actively identify the settlement needs in their communities before approaching the DRDLR for funding for land acquisition.
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
152
Support Organisations
NDPG Address: National Treasury Tel: 012 315 5459 Fax: 012 315 5779 Email: [email protected] Web: http://ndp.treasury.gov.za/
The Neighbourhood Development Partnership Grant (NDPG) is tasked with supporting economic development and quality of life improvements in targeted townships. The NDP uses two tools to do this:
The Technical Assistance (TA) fund intended for strategic and project planning and a Capital Grant (CG) for investment into catalytic township projects.
A knowledge sharing and learning function aimed at (i) providing peer-learning opportunities for all municipal officials involved in townships renewal; (ii) facilitating more credible and indepth practical research on townships; and (iii) deepening and broadening the skills of township development practitioners.
Typical projects are nodal and precinct developments; linkage projects and general improvement initiatives. In general, NDP funds interventions that are within municipal mandate or directive, therefore speeding up delivery. NDPG does not fund private sector developments, but provides foundations or preconditions for these to occur.
The Arid Areas Programme Centre for Development Support University of the Free State Bloemfontein Tel: 051 401 9111 Email: [email protected] Web: http://www.aridareas.co.za
The programme focuses on socio-economic development in the arid areas of the Western Cape, the Northern Cape, the Eastern Cape, and the Free State. It is totally interdisciplinary, including economics, sociology, politics, demographics, urban planning, and agriculture. The programme creates a space for academic research and unpublished consultancy work (“grey research”) to interact. The programme actively promotes the dissemination of information, by means of a website, as well as focus groups and workshops.
CRDP Address: Northern Cape Provincial Land Reform Office, George Street, Themor House, Kimberley. Tel: 053 838 9100 Fax: 053 838 9169 Email: [email protected] Web: http://www.agrinc.gov.za/
The CRDP (Comprehensive Rural Development Programme) is focused on enabling rural people to take control of their destiny, with the support from government, and thereby dealing effectively with rural poverty through the optimal use and management of natural resources. This will be achieved through a co-ordinated and integrated broadbased agrarian transformation as well as the strategic investment in economic and social infrastructure that will benefit the entire rural communities. The three pronged strategy includes:
Agrarian transformation
Rural development
Hantam Local Municipality Local Economic Development Strategy 2011
© 2011 Urban-Econ: Development Economists Tel: +27 21 447 3449 Fax: +27 21 447 3459
153
Support Organisations
Land reform In 2011 there were 9 pilot sites, spanning 21 wards in South Africa. The Namakwa District is not included here but it may be in the future.