REPORT ON PROGRESS AND CHALLENGES : REPORT ON PROGRESS AND CHALLENGES : INNER CITY REGENERATION/URBAN RENEWAL INNER CITY REGENERATION/URBAN RENEWAL

AND LOCAL ECONOMIC DEVELOPMENT IN AND LOCAL ECONOMIC DEVELOPMENT IN BOJANALA PLATINUM DISTRICT MUNICIPALITYBOJANALA PLATINUM DISTRICT MUNICIPALITY

Presentation to Portfolio Committee on Provincial and Local Government

30 August 2005

Executive Mayor : Cllr. M G Tema andMunicipal Manager : Mr T Makgalemele

STRUCTURE OF PRESENTATIONSTRUCTURE OF PRESENTATION

Brief Municipal Profile. District allocations and support to local

municipalities. Status Of Local Economic Development. Inner City Regeneration/Urban Renewal. 2010 Soccer World Cup Preparations.

MUNICIPAL PROFILE

Population 1 064 614 Municipal Area 18 331.79 square kilometers. Households 241 482 Five local municipalities.

Kgetleng Rivier;

Madibeng;

Moretele;

Moses Kotane;

Rustenburg.

MUNICIPAL PROFILE

Municipality Size(km2) Population Households No. of

BPDM 18 331.79 1 064 614 241 482 Wards

122

Kgetleng Rivier

3 973.31 32 779 7 738 5

Madibeng 3812.48 320 796 76 252 30

Moretele 1369.3 170 035 32 565 22

Moses Kotane

5215.43 229 410 49 131 30

Rustenburg 3491.99 311 326 75 700 35

MUNICIPAL PROFILE

Municipality Type No of Councilors

BPDM Executive Mayor 50

Kgetleng Rivier Plenary 10

Madibeng Executive Mayor 60

Moretele EXCO 43

Moses Kotane EXCO 60

Rustenburg Executive Mayor 69

DISTRIBUTION OF OWN FUNDS TO LOCAL MUNICIPALITIES FOR THE PERIOD 2002 TO 2005

Allocations by District to Local Municipalities

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

2002 2003 2004 2005

Years

DISTRIBUTION OF OWN FUNDS TO LOCAL MUNICIPALITIES FOR THE PERIOD 2002 TO 2005

Increased collection of revenue by the district has resulted in a substantial

increase in allocations to local municipalities for capital

expenditure, far more than the benchmark of 60% of levy income.

DISTRIBUTION OF OWN FUNDS TO LOCAL MUNICIPALITIES FOR THE PERIOD 2002 TO 2005

Total al locations per municipal i ty since 2002

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

Kgetlengr ivier Moses Kotane Mor etele Madibeng Rustenbur g DMA Distr ict wide

pr ojects

BP DM Capital

P r ojects

2002

2003

2004

2005

DISTRIBUTION OF OWN FUNDS TO LOCAL MUNICIPALITIES FOR THE PERIOD 2002 TO 2005

Allocations from 2002 to 2005 as % of total capex

Kgetlengrivier 9%

Moses Kotane10%

Moretele20%

Madibeng11%

Rustenburg11%

DMA1%

District wide projects13%

BPDM Capital Projects25%

Kgetlengrivier

Moses Kotane

Moretele

Madibeng

Rustenburg

DMA

District wide projects

BPDM Capital Projects

DISTRICT IDP STRATEGIC DISTRICT IDP STRATEGIC FOCUS AREASFOCUS AREAS

Provide Services to Communities in a Sustainable Manner

Provide Democratic and Accountable Government

Promote Social and Economic Development

Promote Safe and Healthy Environment Involve Community in Local Government

Matters

KEY ECONOMIC TRENDSKEY ECONOMIC TRENDS

Rapidly increasing mining sector dominating the economic landscape Mild decline in Agricultural and manufacturing output Improvement in the education prime of the population Increasing levels of poverty despite significant economic growth rates

over the last 5 years Increasing impact of HIV and AIDS Increased emphasis on transformation in the mineral and energy

sector Increasing competitive pressure from Gauteng Province (e.g. Blue IQ

initiative) Increasing demand for Information and Communication Technology

Services Limited diversification of local economy (dominated by mining sector) Increasing demand for tertiary education and skills development

initiatives

CHALLENGES: AGRICULTURE AND RURAL CHALLENGES: AGRICULTURE AND RURAL DEVELOPMENTDEVELOPMENT

Develop and promote entrepreneurial skills in rural areas

Determination and meeting needs of rural communities

Assistance to small farmers and local contractors in rural areas

Large proportion of population residing in rural areas

Lack of basic infrastructure in rural area

CHALLENGES: TOURISM DEVELOPMENTCHALLENGES: TOURISM DEVELOPMENT

The identification of opportunities for BEE orientated SMME’s to participate in the tourism sector

The development of a marketing strategy that increases the exposure of tourism facilities in the district

The development of tourism facilities, and long term development programmes that would allow rural communities to benefit from tourism facilities

Competition for market share (Local and International)

Optimal utilization of natural resources in District

CHALLENGES: SMME DEVELOPMENTCHALLENGES: SMME DEVELOPMENT

Creation of an enabling environment in which SMME’s can develop on a basis if sound business principles

Utilize existing governance structures to enable the effective implementation of programmes and policies aimed at the development of SMME’s

Provide sustainable support and information to SMME’s

Development of SMME helpdesk Identify existing business networks Develop and maintain SMME database

CHALLENGES: FINANCE AND INFRASTRUCTURECHALLENGES: FINANCE AND INFRASTRUCTURE

Mining resources a finite and nonrenewable resource Undiversified economy Promote the development of agro processing and

export orientated manufacturing to position the area as a competitive regional and international producer of high quality and innovative products

Develop incentives to encourage private investment– Property and tax breaks– Coordination with local financial intuitions– Capacity building programs for local workforce

KEY STRATEGIC PILLARS: KEY STRATEGIC PILLARS: ECONOMIC GROWTHECONOMIC GROWTH

Key strategic pillar 1: Secure economic development in Bojanala Platinum District Municipality that is sectoral and spatially diversified and benefits all its residents

Key strategic pillar 2: Develop and acquire institutional capacity and technological skills that will facilitate rapid economic development

Key strategic pillar 3: Compete effectively at a regional, national and international level for new investments and retention of existing investment base

DISTRICT ECONOMIC DISTRICT ECONOMIC DEVELOPMENT TARGETSDEVELOPMENT TARGETS

Achieving and average annual economic growth rate of 6.4% per annum

Aiming to create 170 000 new employment opportunities over a 10 year period

Attracting total new investment into the District of R24 billion

INSTITUTIONAL ARRANGEMENTS/LOCAL INSTITUTIONAL ARRANGEMENTS/LOCAL ECONOMIC DELIVERY VEHICLESECONOMIC DELIVERY VEHICLES

District Municipality has a dedicated LED Department

Local Municipalities have LED units Moses Kotane has established LED agency

as municipal entity Rustenburg LM in process of establishing

Development Agency Coordination takes place at the level of LED

forum consisting of LED MMC’s and managers

LED PROJECT IMPLEMENTATION LED PROJECT IMPLEMENTATION (2002-2005)(2002-2005)

Municipality No. of projects

Funding

Moretele 3 R15m

Moses Kotane 3 R16.5m

Madibeng 2 R13.5m

Kgetleng Rivier 1 R0.75m

Rustenburg 8 R14.67m

• Implementation plan to respond the Rustenburg / Anglo Platinum Conflict Stabilization Project

• Perform a thorough situation analysis to ensure feasibility of the models developed for each settlement area

• Perform a stakeholder analysis and liaise with existing coordination structures (e.g. Local Multi-Agency Coordinating Structures) as points of reference for the design of the model

• Take the Provincial cluster approach (i.e. Social Affairs Cluster; Governance and Administration Cluster; Economic Development and Infra-structure Cluster) into consideration in developing the models

RUSTENBURG URBAN RENEWAL: OBJECTIVES

Locality Plan

Locality Plan

Yizo-Yizo

Chachalaza & Squatter Camp

Popo Molefe

Zakhele

Mfidikoe