CENTRAL KAROO /52 Western Cape Province

Central Karoo

2 PROFILE: CENTRAL KAROO

CONTENT

1. Executive Summary ...... 3 2. Introduction: Brief overview ...... 4 2.1Location ...... 4 2.2Historical perspective ...... 5 2.3 Spatial status ...... 6 3. Social Development Profile ...... 8 3.1 Key social demographics ...... 8 3.1.1. Population ...... 8 3.1.2 Gender, Age and Race ...... 9 3.1.3. Households ...... 10 3.2 Health profile...... 11 3.3 Covid-19 ...... 12 3.4 Poverty dimensions ...... 13 3.4.1 Distribution ...... 13 3.4.2 Inequality ...... 15 3.4.3 Employment/Unemployment ...... 16 3.4.4 Crime ...... 18 3.5 Education and skills profile ...... 18 4. Economic Drivers ...... 20 4.1 Structure of the economy ...... 20 4.2 Primary sector ...... 22 4.3 Secondary sector ...... 23 4.4 Tertiary sector ...... 24 4.5 Informal economy ...... 25 5. Service Delivery ...... 26 5.1 Water and Sanitation ...... 26 5.2 Human settlements ...... 27 5.3 Waste management ...... 28 5.4 Roads and transport ...... 29 5.5 Electricity ...... 31 6. Governance and Management ...... 32 6.1 Municipality performance ...... 32 6.2 Municipality capacity ...... 32 7. Projects to Diversify and Grow the People and the Economy ...... 33 7.1 Catalytic projects ...... 33 7.2 Environmental management and drought ...... 33 8. Key Recommendations ...... 34

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1. Executive Summary

The CKDM covers a total area of 38 852km², making it the largest district municipality in the province. It stretches approximately 400km from its furthest south east point to its furthest north-west point. The District consists of three local municipalities and they are Laingsburg Local Municipality, Prince Albert Local Municipality and Beaufort West Local Municipality. Some of the main towns in the district are Beaufort West, Klaarstroom, Laingsburg, Leeu Gamka, Matjiesfontein, Merweville, Murraysburg, Nelspoort, Prince Albert, Welgemoed.

When compared to other regions, the Central Karoo District Municipality accounts for a total population of 78,632, or 1.2% of the total population in the Western Cape Province, with the City of Cape Town being the most populous region in the Western Cape Province for 2019. The ranking in terms of the size of Central Karoo compared to the other regions remained the same between 2009 and 2019.

With a GDP of R 4.61 billion in 2019 (up from R 2.32 billion in 2009), the Central Karoo District Municipality contributed 0.67% to the Western Cape Province GDP of R 688 billion in 2019 increasing in the share of the Western Cape from 0.68% in 2009. The Central Karoo District Municipality contributes 0.09% to the GDP of South Africa which had a total GDP of R 5.08 trillion in 2019 (as measured in nominal or current prices).It's contribution to the national economy stayed similar in importance from 2009 when it contributed 0.09% to South Africa, but it is lower than the peak of 0.09% in 2009.

As of 04 July 2020, Central Karoo District had 43 confirmed cases, with 10 recoveries as shown in the diagram below. Based on these figures, Central Karoo District Municipality has the lowest number of cases in the entire province. The District has a total number of five quarantine sites but none of them have been activated and only one of the sites has been assessed by the Department of Health.

In 2019, there were 39 000 people living in poverty, using the upper poverty line definition, across Central Karoo District Municipality. This is 6.50% higher than the 36 600 in 2009. The percentage of people living in poverty has decreased from 53.00% in 2009 to 49.54% in 2019, which indicates a decrease of 3.46 percentage points. While there is a minor decrease in poverty over the ten year period in the district, the poverty level remains very high.

Based on the Spatial Development Framework of the District there is one strategic and catalytic project. This project relates to the shale gas exploration that is currently being supported by the provincial government. The District also needs support to establish a district shared service, which happens to be aligned to the DDM roll out. 4 PROFILE: CENTRAL KAROO

2. Introduction: Brief overview

2.1Location

The Central Karoo District Municipality1 is a Category C municipality located in the Western Cape Province. Central Karoo is a land-locked district and the largest district in the province, making up a third of its geographical area. Central Karoo District Municipality is surrounded by Namakwa District Municipality in the Northern Cape, Pixley ka Seme District Municipality in the Free State, Sarah Baartman District Municipality in the Eastern Cape, Garden Route and Cape Winelands District Municipalities in the Western Cape. The CKDM covers a total area of 38 852km², making it the largest district municipality in the province. It stretches approximately 400km from its furthest south east point to its furthest north-west point. The District consists of three local municipalities and they are Laingsburg Local Municipality, Prince Albert Local Municipality and Beaufort West Local Municipality. Some of the main towns in the district are Beaufort West, Klaarstroom, Laingsburg, Leeu Gamka, Matjiesfontein, Merweville, Murraysburg, Nelspoort, Prince Albert, Welgemoed. The Map below indicates the location of the Central Karoo District Municipality within the context of the Western Cape Province.

1 The Local Government Handbook South Africa 2017. A complete guide to municipalities in South Africa. Seventh edition. Accessible at: www.municipalities.co.za. PROFILE: CENTRAL KAROO 5

2.2Historical perspective

Before the establishment of any form of civil authority those who controlled the sparse springs and fountains controlled the land and little thought was given to the justness of usurping control of these water points at the barrel of a gun or by the use of poisoned arrows. Wild animals and particularly predators, the San or Bushmen, runaway slaves from the Cape and a rich cocktail of vagabonds and law breakers regularly plundered the stock farms established by the Trek Boers or migrating farmers moving away from the restrictive laws of the Dutch Colony at the Cape.

In addition there was fierce competition from Xhosa tribesmen for both water and grazing to feed their cattle herds. Adventurers, explorers and big game hunters regularly passed through the district together with ivory traders transporting their heavily loaded wagons on the long journey to the coast. Smuggling of firearms, ammunition and cheap liquor across the ill-defined northern boundary of the Cape Colony was rife and these commodities were in high demand in this lawless environment.

Beaufort West is the oldest municipality in South Africa. It was proclaimed on 27 November 1818. The then governor of the Cape, Lord Charles Somerset, named the town and district ‘Beaufort’ in honour of his father, the 5th Duke of Beaufort. To avoid confusion with Fort Beaufort and Port Beaufort, the name ‘Beaufort’ was changed to Beaufort West in the 1860s.

In December 1994, the former black township Kwa-Mandlenkosi was amalgamated with Beaufort West Municipality. In December 2000, the rural towns of Merweville and Nelspoort were also incorporated as part of the Beaufort West Municipality. Professor Christiaan Barnard, the town’s most famous son, performed the first successful human-to-human heart transplant. He is honoured in the local museum, which houses a display of awards presented to him and a replica of the original heart transplant theatre. Beaufort West is the site of one of the largest migrations of mammals on record Despite its dryness, Laingsburg is well known for the freak flood that devastated the town on the 25 of January 1981. In a matter of Hours the entire Town was under water, with only the roofs of Houses visible. The traumatic event was due to an abnormal rainfall in the Catchments of both the Buffels and Baviaans Rivers that come together in the Town, claiming 104 Lives and leaving only 21 Buildings standing. Today high water marks line lamp posts and the Dutch Reformed Church, one of the few remaining Buildings, to serve as a reminder, and the local Library has a collection of photographs and press cuttings covering the disaster. The Laingsburg Flood Museum, is dedicated to capturing the essence of the Town and its People. 6 PROFILE: CENTRAL KAROO

The earliest inhabitants of the northern slopes of the Swartberg Mountains in the vicinity of modern-day Prince Albert were the San or Bushmen. As the early trekboers or nomadic farmers moved into the area during the mid-eighteenth century the inevitable conflict between the pastoral activities of these early European settlers and the hunter gatherer lifestyle of the Bushmen eventually resulted in the Bushmen’s movement away from the district into the vast open spaces of the Great Karoo to the north or their assimilation into the local population.

The settlement at Prince Albert grew from the loan farm Queeckvalleij established by Zacharias and Dina de Beer in 1762. The village was officially named Prince Albert in 1846, in honour of Queen Victoria's consort.

The railway linking Cape Town with the interior reached Prince Albert Road in 1879 and this further spurred development in the village. However, the most significant development in the transport links with the remote village was the construction of the spectacular Swartberg Pass over the Swartberg Mountains linking Prince Albert and the far flung communities of the western Great Karoo with Oudtshoorn in the Kein Karoo.

2.3 Spatial status

The Central Karoo District is a low rainfall desert region, located on South Africa’s central high-plateau and in the rain shadow of the Cape Fold mountains. It is classified as a cold desert climate (BWk) in terms of the Koppen climate classification. This means that a dry climate prevails, with generally low relative humidity.

Rainfall generally falls predominantly from thunder storms that occur in late summer (peaking in March), with the mountainous areas in the far north east receiving the most rains. Summer days can be brutally hot, with day-time peaks occasionally reaching 40 degrees Celsius, although early summer mornings are often cool and pleasant. Winter days are mild and warm, with the nights and mornings being cold – often experiencing frost. The three local municipalities within the Central Karoo District Municipality are discussed as follows:

Laingsburg Local Municipality covers an area of 8 784km². There are two main towns in the municipality and they are Laingsburg and Matjiesfontein. Laingsburg is a modern Karoo town, only 280km from Cape Town. The town lies in a geologically fascinating area, steeped in history and tradition. It dates back to the mid-1700s. In those years, farmers along the banks of the Buffels River offered hospitality to adventurers brave enough to cross the mountains and venture out onto the arid plains of the Great Karoo. In exchange for news of Cape Town and the civilized world, as well as gossip garnered from other farms along the way, these isolated farmers of the interior offered accommodation, sustenance and fodder. PROFILE: CENTRAL KAROO 7

Prince Albert Local Municipality covers an area of 8153km². The main towns that make up Prince Albert local Municipality are Klaarstroom, Leeu Gamka, Prince Albert, and Welgemoed. It lies on the southern edge of the Great Karoo, a semi-desert region. It is the smallest of the three municipalities that make up the district, though it accounts for a quarter of its geographical area.

Beaufort West Local Municipality covers in area of 21 917km² and includes the main towns of Beaufort West, Merweville, Murraysburg and Nelspoort. It is bordered by the Northern Cape to the north and west, Prince Albert to the south, and the Eastern Cape to the east. It is the largest municipality of three in the district, making up more than half its geographical area. In December 1994, the former black township Kwa- Mandlenkosi was amalgamated with Beaufort West Municipality. In December 2000, the rural towns of Merweville and Nelspoort were also incorporated as part of the Beaufort West Municipality.

The locality map below shows that three local municipalities in the Central Karoo District. The map also shows that main towns in each of the three local municipalities.

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3. Social Development Profile

3.1 Key social demographics

3.1.1. Population

In terms of its share the Central Karoo District Municipality was slightly smaller in 2019 (1.2%) compared to what it was in 2009 (1.3%).When looking at the average annual growth rate, it is noted that Central Karoo ranked lowest (relative to its peers in terms of growth) with an average annual growth rate of 1.3% between 2009 and 2019.

Average Annual 2009 2014 2019 growth Laingsburg 7,950 8,760 9,540 1.84% Prince Albert 12,600 13,800 14,800 1.64% Beaufort West 48,500 51,300 54,300 1.14% Central Karoo 69,016 73,858 78,632 1.31% Source: IHS Markit Regional eXplorer version 1946

The Laingsburg Local Municipality increased the most, in terms of population, with an average annual growth rate of 1.8%, the Prince Albert Local Municipality had the second highest growth in terms of its population, with an average annual growth rate of 1.6%. The Beaufort West Local Municipality had the lowest average annual growth rate of 1.14% relative to the other within the Central Karoo District Municipality.

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3.1.2 Gender, Age and Race In 2019, Central Karoo District had more females (50.4%) than males (49.6%).The median age is 26 years (2016 CS) which is lower than the provincial figure and higher than South Africa at 25 years.

According to the CS 2016 illustrated by diagram below, the largest share of population is within the 10-19 years age category with a total number of 14 482 or 20% of the total population. The age category with the second largest number of people is the young working age category (20-29 years) with a total share of 13 982 or 19%, followed by the older working age category (45-64 years) with 159 000 people. In total, the district had a youthful population that make up 56%.

According to the population pyramid below, it can be seen that the pattern of a youthful population in the District is still the same in 2019. According to the population pyramid, the majority of people in the District are between the ages of 4 and 10 years of age. It is worth noting that the population pyramid shrinks between the ages of 15 to 29 and grows again between the ages of 30 to 39.

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3.1.3. Households

In 2019, the Central Karoo District Municipality comprised of 22 100 households. This equates to an average annual growth rate of 1.80% in the number of households from 2009 to 2019. With an average annual growth rate of 1.31% in the total population, the average household size in the Central Karoo District Municipality is by implication decreasing. This is confirmed by the data where the average household size in 2009 decreased from approximately 3.7 individuals per household to 3.6 persons per household in 2019.

Relative to the province, the Central Karoo District Municipality had a lower average annual growth rate of 1.80% from 2009 to 2019. In contrast, the South Africa had a total of 17 million households, with a growth rate of 2.09%, thus growing at a higher rate than the Central Karoo.

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Central Central Central Western Cape National Total Karoo as % Karoo as % Karoo of province of national 0-2400 0 166 1,580 0.21% 0.02% 2400-6000 26 3,610 31,100 0.71% 0.08% 6000-12000 116 27,800 305,000 0.42% 0.04% 12000-18000 304 53,400 597,000 0.57% 0.05% 18000-30000 1,320 148,000 1,750,000 0.89% 0.08% 30000-42000 1,680 155,000 1,790,000 1.08% 0.09% 42000-54000 1,880 155,000 1,610,000 1.21% 0.12% 54000-72000 2,800 189,000 1,780,000 1.49% 0.16% 72000-96000 2,750 178,000 1,620,000 1.54% 0.17% 96000-132000 2,650 191,000 1,560,000 1.39% 0.17% 132000-192000 2,360 197,000 1,500,000 1.20% 0.16% 192000-360000 2,930 276,000 1,920,000 1.06% 0.15% 360000-600000 1,720 197,000 1,270,000 0.87% 0.14% 600000-1200000 1,260 160,000 934,000 0.79% 0.13% 1200000-2400000 426 61,700 321,000 0.69% 0.13% 2400000+ 74 11,800 53,900 0.63% 0.14% Total 22,300 2,000,000 17,000,000 1.11% 0.13%

It was estimated that in 2019, 7.91% of all the households in the Central Karoo District Municipality, were living on R30,000 or less per annum. In comparison with 2009's 21.03%, the number is about half. The R192 000-R360 000 income category has the highest number of households with a total number of 2 930, followed by the R54 000- R72 000 income category with 2 800 households. Only 0.34 households fall within the 0-2400 income category.

The Spatial Development Framework of the District Municipality indicates that the number of household are projected to increase to 24 516 in 2030 with Beaufort West Municipality anticipated to have the most number of households along the same period followed by Prince Albert Municipality.

According to the Community Survey 2016, 40.8% households in the District are headed by women while 59% households are headed by males. This is just more than 2% higher than the average for the province (38%) and just less than that of the country (41.3%)

3.2 Health profile

As indicated by the diagram below, the health profile of the Central Karoo District indicates that 63% of deaths between children is pre-birth complications, lower respiratory infections, and diarrheal diseases. Road injuries constitutes 77% of the causes of deaths between the ages of 5 and 14. Inter-personal violence and road 12 PROFILE: CENTRAL KAROO

injuries are the main cause of death amongst peopl in the ages of 15 and 24 constituting 64%. The main causes death between the ages of 25 and 64 is non- communicable diseases followed by HIV and TB. The main causes of death in people living in the District from the age of 65 and above at 87% are cerebrovasclular diseases, and ischemic heart diseases.

Healthcare facilities in the Central Karoo are listed in the Local Government Socio Economic Profile (LGSEP) and consist of 4 district hospitals, as well as Nelspoort Hospital (psychiatric and TB hospital) supported by a compliment of 9 fixed Primary Health Care facilities made up of 8 fixed public health care facilities and one community day centre.

3.3 Covid-19

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In respect of COVID-19 quarantine facilities, as at end May 2020 a total of five (5)

facilities have been identified in Central Karoo District as shown in the table below. Of the five facilities, only one quarantine site is DoH compliant. There other four sites have not been assessed. None of the quarantine sites have been activated as at the end of May 2020.

3.4 Poverty dimensions

3.4.1 Distribution In 2019, there were 39 000 people living in poverty, using the upper poverty line definition, across Central Karoo District Municipality. This is 6.50% higher than the 36 600 in 2009. The percentage of people living in poverty has decreased from 53.00% in 2009 to 49.54% in 2019, which indicates a decrease of 3.46 percentage points. While there is a minor decrease in poverty over the ten year period in the

District Town Potential Site/ Site Or State- No Of Status Of Activated Building Name Building owned or Rooms Facility Site Private Type Available Central_Karoo HEALTH Not assessed Pending Nelspoort Facility Nelspoort FACILITY State-Owned Central_Karoo Beaufort Karoo main camp SANPARKS 38 Not assessed Pending West Central_Karoo Beaufort SANPARKS State-Owned DOH Pending West Karoo National Park Compliant Central_Karoo Laingsburg Anysberg Nature NATURE State-Owned 11 Not assessed Pending Reserve including RESERVE Grand Canyon LODGE Central_Karoo Laingsburg 39 Voortrekker St, House 3 Not assessed Pending Laingsburg district, the poverty level remains very high. 14 PROFILE: CENTRAL KAROO

Number and percentage of people in poverty Central Karoo, 2009-2019 45 000 60%

40 000 50% 35 000

30 000 40%

25 000 30% 20 000

15 000 20%

10 000 10% 5 000

0 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Number of people in poverty Percentage of people in poverty Source: IHS Markit Regional eXplorer version 1946 In 2019, the population group with the highest percentage of people living in poverty was the African population group with a total of 58.9% people living in poverty, using the upper poverty line definition. The proportion of the African population group, living in poverty, decreased by 6.07 percentage points, as can be seen by the change from 65.00% in 2009 to 58.93% in 2019. In 2019 1.90% of the White population group lived in poverty, as compared to the 1.84% in 2009.

In terms of the percentage of people living in poverty for each of the regions within the Central Karoo District Municipality, Beaufort West Local Municipality has the highest percentage of people living in poverty, using the upper poverty line definition, with a total of 50.6%. The lowest percentage of people living in poverty can be observed in the Laingsburg Local Municipality with a total of 42.7% living in poverty, using the upper poverty line definition.

In terms of the poverty gap rate for each of the regions within the Central Karoo District Municipality, Beaufort West Local Municipality had the highest poverty gap rate, with a rand value of 27.2%. The lowest poverty gap rate can be observed in the Prince Albert Local Municipality with a total of 26.3%.

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Percentage of people living in poverty Central Karoo 52,0% District Municipality, 2019

50,0%

48,0%

46,0%

44,0%

42,0%

40,0%

38,0% Laingsburg Prince Albert Beaufort West Source: IHS Markit Regional eXplorer version 1946

3.4.2 Inequality

In 2019 Central Karoo District Municipality had an HDI of 0.673 compared to the Western Cape with a HDI of 0.733 and 0.662 of National Total as a whole. Seeing that South Africa recorded a lower HDI in 2019 when compared to Central Karoo District Municipality which translates to better human development for Central Karoo District Municipality compared to South Africa. South Africa's HDI increased at an average annual growth rate of 1.44% and this increase is higher than that of Central Karoo District Municipality (1.32%).

Human Development Index (HDI) Central Karoo, Western 0,8 Cape and National Total, 2009, 2014, 2019 0,7 0,6 0,5 0,4 0,3 0,2 0,1 0,0 Central Karoo Western Cape National Total 2009 2014 2019 Source: IHS Markit Regional eXplorer version 1946

In terms of the HDI for each the regions within the Central Karoo District Municipality, Laingsburg Local Municipality has the highest HDI, with an index value of 0.679. The lowest can be observed in the Beaufort West Local Municipality with an index value of 0.67.

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In 2019, the Gini coefficient in Central Karoo District Municipality was at 0.59, which reflects a increase in the number over the ten-year period from 2009 to 2019. The Western Cape Province and South Africa, both had a more unequal spread of income amongst their residents (at 0.618 and 0.63 respectively) when compared to Central Karoo District Municipality.

Gini coefficient Central Karoo, Western Cape and National Total, 2009-2019 0,66 0,64 0,62 0,60 0,58 0,56 0,54 0,52 0,50 0,48 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Central Karoo Western Cape National Total Source: IHS Markit Regional eXplorer version 1946

In terms of the Gini coefficient for each of the regions within the Central Karoo District Municipality, Prince Albert Local Municipality has the highest Gini coefficient, with an index value of 0.599. The lowest Gini coefficient can be observed in the Laingsburg Local Municipality with an index value of 0.578.

3.4.3 Employment/Unemployment

In 2019, there were a total number of 6 450 people unemployed in Central Karoo, which is an increase of 1 030 from 5 420 in 2009. The total number of unemployed people within Central Karoo constitutes 0.99% of the total number of unemployed people in Western Cape Province. The Central Karoo District Municipality experienced an average annual increase of 1.76% in the number of unemployed people, which is better than that of the Western Cape Province which had an average annual increase in unemployment of 2.65%.

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Number of unemployed & Unemployment rate Central Karoo, 2009-2019 7 000 24%

6 000 23%

5 000 22% 4 000 21% 3 000 20% 2 000

1 000 19%

0 18% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Number of unemployed people Unemployment rate Source: IHS Markit Regional eXplorer version 1946

When comparing unemployment rates among regions within Central Karoo District Municipality, Prince Albert Local Municipality has indicated the highest unemployment rate of 28.1%, which has decreased from 28.6% in 2009. It can be seen that the Laingsburg Local Municipality had the lowest unemployment rate of 9.5% in 2019, which decreased from 14.4% in 2009.

Total Employment Composition Central Karoo, 2019

1 Agriculture 2 Mining 3 Manufacturing Households 4 Electricity 5 Construction 9 Community services 6 Trade

8 Finance 7 Transport Source: IHS Markit Regional eXplorer version 1946

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In Central Karoo District Municipality the economic sectors that recorded the largest number of employment in 2019 were the agriculture sector with a total of 8 220 employed people or 33.5% of total employment in the district municipality. The community services sector with a total of 5 100 (20.8%) employs the second highest number of people relative to the rest of the sectors. The mining sector with 38 (0.2%) is the sector that employs the least number of people in Central Karoo District Municipality, followed by the electricity sector with 111 (0.5%) people employed.

3.4.4 Crime

For the period 2008/2009 to 2018/2019 overall crime has decrease at an average annual rate of 0.19% within the Central Karoo District Municipality. Violent crime decreased by 0.23% since 2008/2009, while property crimes increased by 0.05% between the 2008/2009 and 2018/2019 financial years.

Overall, Violent and Property Crime Index Central Karoo, 2008/2009-2018/2019 600

500

400

300

200

100

OverallCrime Index Violent Crime Index Property Crime Index Source: IHS Markit Regional eXplorer version 1946 3.5 Education and skills profile

Within Central Karoo District Municipality, the number of people without any schooling decreased from 2009 to 2019 with an average annual rate of -3.82%, while the number of people within the 'matric only' category, increased from 8,360 to 13,300. The number of people with 'matric and a certificate/diploma' decreased with an average annual rate of -1.00%, with the number of people with a 'matric and a Bachelor's' degree increasing with an average annual rate of 3.31%. PROFILE: CENTRAL KAROO 19

Highest level of education: age 15+ Central Karoo, 2009-2019

100% Matric & 90% Postgrad degree

80% Matric & Bachelors degree 70% Matric & certificate / 60% diploma Matric only 50%

40% Certificate / diploma without 30% matric Grade 10-11 20%

10% Grade 7-9

0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: IHS Markit Regional eXplorer version 1946

The number of people without any schooling in Central Karoo District Municipality accounts for 3.33% of the number of people without schooling in the province and a total share of 0.13% of the national. In 2019, the number of people in Central Karoo District Municipality with a matric only was 13,300 which is a share of 0.93% of the province's total number of people that has obtained a matric. The number of people with a matric and a Postgrad degree constitutes 0.43% of the province and 0.07% of the national.

A total of 44 400 individuals in Central Karoo District Municipality were considered functionally literate in 2019, while 9 780 people were considered to be illiterate. Expressed as a rate, this amounts to 81.95% of the population, which is an increase of 0.073 percentage points since 2009 (74.61%). The number of illiterate individuals decreased on average by -2.01% annually from 2009 to 2019, with the number of functional literate people increasing at 2.34% annually.

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Illiterate Literate % 2009 11,987 35,218 74.6% 2010 11,606 36,482 75.9% 2011 11,481 37,383 76.5% 2012 11,211 38,352 77.4% 2013 10,934 39,310 78.2% 2014 10,781 40,126 78.8% 2015 10,689 40,855 79.3% 2016 10,443 41,732 80.0% 2017 10,136 42,689 80.8% 2018 10,026 43,463 81.3% 2019 9,781 44,394 81.9%

Average Annual growth 2009-2019 -2.01% 2.34% 0.94%

4. Economic Drivers

4.1 Structure of the economy

In 2019, the Central Karoo District Municipality achieved an annual growth rate of 1.67% which is a significantly higher GDP growth than the Western Cape Province's 0.32%, and is higher than that of South Africa, where the 2019 GDP growth rate was 0.15%. Contrary to the short-term growth rate of 2019, the longer-term average growth rate for Central Karoo (1.45%) is slightly lower than that of South Africa (1.68%). The economic growth in Central Karoo peaked in 2014 at 3.12%.

The Central Karoo District Municipality had a total GDP of R 4.61 billion and in terms of total contribution towards Western Cape Province the Central Karoo District Municipality ranked lowest relative to all the regional economies to total Western Cape Province GDP. This ranking in terms of size compared to other regions of Central Karoo remained the same since 2009. In terms of its share, it was in 2019 (0.7%) very similar compared to what it was in 2009 (0.7%). For the period 2009 to 2019, the average annual growth rate of 1.4% of Central Karoo was the third relative to its peers in terms of growth in constant 2010 prices.

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The greatest contributor to the Central Karoo District Municipality economy is the Beaufort West Local Municipality with a share of 71.15% or R 3.28 billion, increasing from R 1.69 billion in 2009. The economy with the lowest contribution is the Laingsburg Local Municipality with R 602 million growing from R 280 million in 2009.

Central Central Central Western National Karoo as % Karoo as % Karoo Cape Total of province of national Agriculture 0.5 21.1 95.7 2.2% 0.48% Mining 0.0 1.7 376.4 0.1% 0.00% Manufacturing 0.2 95.0 598.2 0.2% 0.03% Electricity 0.2 17.7 173.4 1.1% 0.11% Construction 0.3 31.7 172.2 0.8% 0.15% Trade 0.6 107.5 685.3 0.6% 0.09% Transport 0.7 65.9 442.1 1.0% 0.15% Finance 0.6 157.0 889.3 0.4% 0.07% Community 1.2 115.5 1,091.2 1.1% 0.11% services Total Industries 4.2 613.1 4,523.6 0.7% 0.09% Source: IHS Markit Regional eXplorer version 1803

In 2019, the community services sector is the largest within Central Karoo District Municipality accounting for R 1.23 billion or 29.0% of the total GVA in the district municipality's economy. The sector that contributes the second most to the GVA of the Central Karoo District Municipality is the transport sector at 15.7%, followed by the trade sector with 15.0%. The sector that contributes the least to the economy of Central Karoo District Municipality is the mining sector with a contribution of R 892,000 or 0.02% of the total GVA.

The community sector, which includes the government services, is generally a large contributor towards GVA in smaller and more rural local municipalities. When looking at the regions within the district municipality, the Beaufort West Local Municipality made the largest contribution to the community services sector at 73.77% of the district municipality. As a whole, the Beaufort West Local Municipality contributed R 3.03 billion or 71.39% to the GVA of the Central Karoo District Municipality, making it the largest contributor to the overall GVA of the Central Karoo District Municipality.

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Gross Value Added (GVA) by broad economic sector Central Karoo District Municipality, 2019

Community services

Finance Agriculture Mining

Manufacturing Transport Electricity

Trade Construction

Source: IHS Markit Regional eXplorer version 1946

For the period 2019 and 2009, the GVA in the mining sector had the highest average annual growth rate in Central Karoo at 3.03%. The industry with the second highest average annual growth rate is the finance sector averaging at 2.50% per year. The agriculture sector had an average annual growth rate of -0.54%, while the electricity sector had the lowest average annual growth of -1.03%. Overall a positive growth existed for all the industries in 2019 with an annual growth rate of 1.62% since 2018.

4.2 Primary sector

The primary sector consists of two broad economic sectors namely the mining and the agricultural sector. The following chart represents the average growth rate in the GVA for both of these sectors in Central Karoo District Municipality from 2009 to 2019.

Between 2009 and 2019, the agriculture sector experienced the highest positive growth in 2017 with an average growth rate of 11.5%. The mining sector reached its highest point of growth of 7.1% in 2013. The agricultural sector experienced the lowest growth for the period during 2016 at -9.0%, while the mining sector reaching its lowest point of growth in 2015 at -5.2%. Both the agriculture and mining sectors are generally characterised by volatility in growth over the period.

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Gross value added (GVA) by primary sector Central Karoo, 2009-2019 15%

10%

0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

-5%

-10%

Agriculture Mining Source: IHS Markit Regional eXplorer version 1946

4.3 Secondary sector

The secondary sector consists of three broad economic sectors namely the manufacturing, electricity and the construction sector. The following chart represents the average growth rates in the GVA for these sectors in Central Karoo District Municipality from 2009 to 2019.

Between 2009 and 2019, the manufacturing sector experienced the highest positive growth in 2010 with a growth rate of 7.1%. The construction sector reached its highest growth in 2009 at 5.8%. The manufacturing sector experienced its lowest growth in 2011 of -8.6%, while construction sector reached its lowest point of growth in 2011 a with -3.6% growth rate. The electricity sector experienced the highest growth in 2017 at 3.9%, while it recorded the lowest growth of -6.8% in 2019.

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Gross value added (GVA) by secondary sector Central Karoo, 2009-2019 8%

0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -2%

-4%

-6%

-8%

-10%

Manufacturing Electricity Construction Source: IHS Markit Regional eXplorer version 1946

4.4 Tertiary sector

The tertiary sector consists of four broad economic sectors namely the trade, transport, finance and the community services sector. The following chart represents the average growth rates in the GVA for these sectors in Central Karoo District Municipality from 2009 to 2019.

The trade sector experienced the highest positive growth in 2010 with a growth rate of 8.4%. The transport sector reached its highest point of growth in 2014 at 3.8%. The finance sector experienced the highest growth rate in 2019 when it grew by 5.5% and recorded the lowest growth rate in 2009 at 0.2%. The Trade sector also had the lowest growth rate in 2009 at -0.5%. The community services sector, which largely consists of government, experienced its highest positive growth in 2019 with 3.6% and the lowest growth rate in 2017 with 0.1%.

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Gross value added (GVA) by tertiary sector Central Karoo, 2009-2019 10%

0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -2%

-4%

Trade Transport Finance Community services Source: IHS Markit Regional eXplorer version 1946

4.5 Informal economy

In 2019 the Trade sector recorded the highest number of informally employed, with a total of 985 employees or 33.16% of the total informal employment. This can be expected as the barriers to enter the Trade sector in terms of capital and skills required is less than with most of the other sectors. The Manufacturing sector has the lowest informal employment with 148 and only contributes 4.99% to total informal employment.

Formal and informal employment by sector Central Karoo, 2019 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0

Formal employment Informal employment Source: IHS Markit Regional eXplorer version 1946 26 PROFILE: CENTRAL KAROO

5. Service Delivery

5.1 Water and Sanitation

The regions within Central Karoo District Municipality with the highest number of households with piped water inside the dwelling is Beaufort West Local Municipality with 12 600 or a share of 71.77% of the households with piped water inside the dwelling within Central Karoo District Municipality. The region with the lowest number of households with piped water inside the dwelling is Laingsburg Local Municipality with a total of 1 970 or a share of 11.26% of the total households with piped water inside the dwelling within Central Karoo District Municipality.

When looking at the water backlog (number of households below RDP-level) over time, it can be seen that in 2008 the number of households below the RDP-level were 834 within Central Karoo District Municipality, this decreased annually at -11.65% per annum to 242 in 2018. Water backlog Central Karoo, 2008-2018 1 400

1 200

1 000

800

600

400

200

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Water backlog - number of households below RDP-level Source: IHS Markit Regional eXplorer version 1946

Central Karoo District Municipality had a total number of 20 200 flush toilets (92.84% of total households), 935 Ventilation Improved Pit (VIP) (4.30% of total households) and 154 (0.71%) of total households pit toilets. The region within Central Karoo with the highest number of flush toilets is Beaufort West Local Municipality with 14 000 or a share of 69.31% of the flush toilets within Central Karoo. The region with the lowest number of flush toilets is Laingsburg Local Municipality with a total of 2 540 or a share of 12.59% of the total flush toilets within Central Karoo District Municipality.

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Sanitation backlog Central Karoo, 2008-2018 1 200

1 000

800

600

400

200

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: IHS Markit Regional eXplorer version 1946

5.2 Human settlements

Central Karoo District Municipality had a total number of 16 200 (74.60% of total households) very formal dwelling units, a total of 4 670 (21.50% of total households) formal dwelling units and a total number of 600 (2.76% of total households) informal dwelling units.

The region within the Central Karoo District Municipality with the highest number of very formal dwelling units is the Beaufort West Local Municipality with 11 900 or a share of 73.63% of the total very formal dwelling units within Central Karoo District Municipality. The region with the lowest number of very formal dwelling units is the Laingsburg Local Municipality with a total of 1 640 or a share of 10.11% of the total very formal dwelling units within Central Karoo District Municipality.

When looking at the formal dwelling unit backlog (number of households not living in a formal dwelling) over time, it can be seen that in 2008 the number of households not living in a formal dwelling were 541 within Central Karoo District Municipality. From 2008 this number increased annually at 4.58% to 847 in 2018. The total number of households within Central Karoo District Municipality increased at an average annual rate of 1.75% from 2008 to 2018, which is higher than the annual increase of 2.13% in the number of households in South Africa.

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Formal dwelling backlog Central Karoo, 2008-2018 900 800 700 600 500 400 300 200 100 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Formal dwelling backlog Source: IHS Markit Regional eXplorer version 1946 5.3 Waste management

Central Karoo District Municipality had a total number of 18 800 (86.37%) households which had their refuse removed weekly by the authority, a total of 184 (0.85%) households had their refuse removed less often than weekly by the authority and a total number of 1 910 (8.81%) households which had to remove their refuse personally (own dump).

The region within Central Karoo with the highest number of households where the refuse is removed weekly by the authority is Beaufort West Local Municipality with 13 200 or a share of 70.21% of the households where the refuse is removed weekly by the authority within Central Karoo. The region with the lowest number of households where the refuse is removed weekly by the authority is Laingsburg Local Municipality with a total of 1 910 or a share of 10.19% of the total households where the refuse is removed weekly by the authority within the district municipality.

When looking at the number of households with no formal refuse removal, it can be seen that in 2008 the households with no formal refuse removal in Central Karoo District Municipality was 3 110, this decreased annually at -1.14% per annum to 2 780 in 2018.

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Refuse removal Central Karoo, 3 500 2008-2018

3 000

2 500

2 000

1 500

1 000

500

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Number of households with no formal refuse removal Source: IHS Markit Regional eXplorer version 1946

5.4 Roads and transport

A defining feature of the District is the N1, a national road which runs in a southwest- northeast direction 364 kilometres through the municipality. The N1 enters the District in the west from the Cape Winelands District, and passes through Laingsburg, Leeu Gamka, Beaufort West, and Nelspoort and then exits the District into the Northern Cape. The N1 is maintained by SANRAL, and the full length of this road is surfaced. According to the 2015-2020 District Integrated Transport Plan (ITP), the road “carries an average of 2,496 vehicles per day of which 52% are heavy vehicles”. This road is a key national connector between Cape Town and Johannesburg – the two biggest cities in South Africa. In the eastern part of the District, the N12 runs in a north-south direction from Beaufort West through Klaarstroom, and on to Oudtshoorn. This road has a total extent of 128 kilometres. While the N12 has a national road designation, this road is considered a ‘trunk road’ and is therefore maintained by the Western Cape Provincial Government. The District ITP indicates that the N12 is in a relatively poor condition. Other important roads in the Central Karoo include:

• R61 which runs in an easterly direction from Beaufort West to Aberdeen with a length of 74 kilometres to the District boundary (surface: asphalt; condition: fair to good). • R63 which runs from the N1 towards Murraysburg and Graaff-Reinet with a total length of 87 kilometres (surface: asphalt; condition: mostly poor, but fair to good in places). • R407 which connects Prince Albert to Klaarstroom and the N12 via the Kredouw Pass (distance: 47 kilometres, surface: asphalt; condition: fair to good). • R328 which connects Prince Albert Road at the N1 to Prince Albert town which 30 PROFILE: CENTRAL KAROO

covers a distanced of 44 kilometres. The R328 then continues over the Swartberg Pass (surface: asphalt; condition: poor to fair). • R381 from Beaufort West towards Loxton in the Northern Cape which is 95 kilometres in length to the District boundary (surface: asphalt for 28 km, and gravel for 68 km; condition: paved roads are in good condition, gravel roads are in poor condition). • R323 from Laingsburg to the Seweweekspoort which is 77 kilometres in length of which only 30 kilometres is surfaced (surface: asphalt; condition: fair to good). • R353 which runs northwards from Leeu Gamka at the N1 towards Fraserburg which is 74 kilometres in length (surface: asphalt; condition: good). • R354 from Matjiesfontein towards Sutherland which is 43 kilometres to the District boundary (surface: asphalt; condition: fair to poor in places). • R306 from the R61 to Rietbron in the Eastern Cape which runs for 60 kilometres to the District boundary (surface: gravel; condition: fair to good).

In terms of road safety, the N1 accounts for almost 2/3rds of all fatalities, mostly attributed to poor driver behaviour and fatigue. Head/rear collisions, overturned vehicles and side-swipes account for almost 9 out of 10 incidents on the N1 (Central Karoo ITP, 2016). Rail Network The history and development of the Central Karoo is closely linked to the expansion of the South African Railways in the 19th century. South African railway history is particularly notable in the town of Matjiesfontein. Today, the railway operates freight and passenger services which travel across the District, running in parallel to the N1. The rail line specifically runs in a southwest-northeast direction and passes through Matjiesfontein, Laingsburg, Leeu Gamka, Beaufort West, and Nelspoort. The District has two major railway stations at Beaufort West and Laingsburg which can accommodate both passenger and freight services. While the Central Karoo has significant and relatively modern rail infrastructure, it is not used to the full benefit of local communities. Public transport Formal public transport services are very limited across the District. Given its size, the town of Beaufort West has mini-bus taxis, sedan taxis, a single bus service, and mini- bus taxi rank infrastructure in its CBD. However, there are irregular mini-bus taxi services operating between settlements across the District in medium to long-haul type services. This makes travelling for education, health, and leisure opportunities both costly and unpredictable for many of the Central Karoo’s residents. Long distance bus operators have scheduled daily stops at Laingsburg, Prince Albert Road, and Beaufort West with connections to Cape Town, Kimberley, Bloemfontein, Durban, Johannesburg and Pretoria. More than 28 buses (with a potential passenger PROFILE: CENTRAL KAROO 31

capacity of 12,000 per week) from established national operators pass through the Central Karoo daily. Air transport There are three landing strips/airfields across the District; one in every Local Municipality. These facilities are primarily used by light aircraft for tourism and leisure purposes. There are no national or international airports in the region, with the closest one being George Airport. It is unclear is there is sufficient demand to warrant a national airport within the region, situated near to Beaufort West, however this would be a function of demand and economic growth into the future.

5.5 Electricity

Central Karoo District Municipality had a total number of 1 210 (5.58%) households with electricity for lighting only, a total of 19 700 (90.76%) households had electricity for lighting and other purposes and a total number of 794 (3.66%) households did not use electricity.

The region within Central Karoo with the highest number of households with electricity for lighting and other purposes is Beaufort West Local Municipality with 13 800 or a share of 69.83% of the households with electricity for lighting and other purposes within Central Karoo District Municipality. The Region with the lowest number of households with electricity for lighting and other purposes is Laingsburg Local Municipality with a total of 2 260 or a share of 11.48% of the total households with electricity for lighting and other purposes within Central Karoo District Municipality.

When looking at the number of households with no electrical connection over time, it can be seen that in 2008 the households without an electrical connection in Central Karoo District Municipality was 1 350, this decreased annually at -5.16% per annum to 794 in 2018.

Electricity connection Central Karoo, 2008-2018 1 600 1 400 1 200 1 000 800 600 400 200 0 20082009201020112012201320142015201620172018 Number of households with no electrical connection Source: IHS Markit Regional eXplorer version 1946 32 PROFILE: CENTRAL KAROO

6. Governance and Management

6.1 Municipality performance

In terms of municipal financial performance, Central Karoo District received in unqualified audit with no findings in the 2016/17 financial years. All the other audit findings had matters of emphasis.

Audit Outcomes 2015/16 2016/17 2017/18 2018/19 Unqualified with Unqualified Unqualified with Unqualified with matters of with matters of emphasis matters of emphasis emphasis no findings

Between the three local municipalities in the district, Prince Albert Local Municipality’s financial performance has been consisted and is better than the two local municipalities. The worst performing municipality in the district in terms of financial performance is Laingsburg Local Municipality. However, all three local municipalities obtained similar audit outcomes in 2015 and 2016 financial years.

Municipality Audit outcome 2015/16 2016/17 2017/18 2018/19 Beaufort Unqualified with Unqualified with Disclaimer of Qualified West matters of matters of opinion emphasis emphasis Prince Albert Unqualified with Unqualified with Unqualified Unqualified with matters of matters of with matters of emphasis emphasis no findings emphasis Laingsburg Unqualified with Unqualified with Qualified Outstanding matters of matters of emphasis emphasis

6.2 Municipality capacity

Based on the strategic and policy decisions made by Council, the senior management team develops service plans for integration with other sectors within the strategy for the municipality. The senior management team of the Municipality is supported by a municipal workforce of 133 permanent employees, which is structured in the departments to implement the IDP strategic objectives as tabled below:

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7. Projects to Diversify and Grow the People and the Economy

7.1 Catalytic projects

7.2 Environmental management and drought

Permanent positions filled Funded vacancies Unfunded vacancies Total 133 14 39 186

Representation of employees Employees categorised in Male 101

terms of gender

(permanent 133 and temporary employees) Female 32 Employees categorised in Coloured African Indian White

terms of race (permanent 133 and temporary employees) 92 30 1 10 Total (permanent and temporary employees)

The Central Karoo is a low rainfall desert region, located on South Africa’s central high-plateau and in the rain shadow of the Cape Fold Mountains. It is classified as a cold desert climate (BWk) in terms of the Koppen climate classification, which is the most widely used climate classification systems in the world. This means that a dry climate prevails, with generally low relative humidity. The semi desert conditions which prevail within the Central Karoo are a result of the harsh arid climate. The average annual rainfall for the District is 260 mm per annum. The highest rainfall occurs to the south with the Groot Swartberg mountain range, on the north-eastern side of the municipality, which receives between 500 to 700 mm per annum. Climate change is expected to produce higher temperatures with possibly lower rainfall in the medium to long term. There is also a very low degree of certainty of the impacts of climate change on rainfall with some studies suggesting that parts of the 34 PROFILE: CENTRAL KAROO

Western Cape may receive greater rainfall (Western Cape Climate Change Response Framework, 2016), with concurrent higher levels of evapo-transpiration. Additionally, agriculture is expected to be negatively impacted with a decline in productivity and yield, resulting in a potential economic downturn in the region or the need to adopt far more drought-tolerant farming practices, plants species and approaches. Central Karoo’s arid nature impacts the growth potential of towns, and the viability of agriculture in the region. The District is very dependent on groundwater. Agriculture practices have modified area riparian habitats. Overgrazing has resulted in the degradation of large tracts of land and resulted in extensive soil erosion, with an associated decline in grazing potential and in water quality due to siltation.

8. Key Recommendations

It is recommended that government needs to work with the District to address the high poverty levels. It is also recommended that government support the district efforts to: • Establish a municipal shared services centre to improve the municipal capacity and reduce the amount of unregulated activities taking place which may negatively impact the environment. The proposal made by the district is in-line with the overall roll out process of the District Development Model, • Explore opportunities in the shale gas exploration in order to stimulate the local, regional and national economic growth and job creation. It is encouraging to note in the SDF of the district that the Western Cape Government supports shale gas exploration conducted in a phased manner, with evidence-based decision making.

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