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Local Economic Development Strategy Final Report

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Local Economic Development Strategy Final Report Dipaleseng Local Municipality Local Economic Development Strategy Final Report Submitted by Urban-Econ: Development Economists May 2011 Dipaleseng Local Economic Development Strategy Contents SECTION ONE: Introduction .......................................................................................................... 1 1.1. Background and Spatial Context .................................................................................................. 1 1.2. Goal and Objectives of the Study ................................................................................................. 4 SECTION TWO: Policy Framework ................................................................................................. 5 2.1. National Policy Framework ........................................................................................................ 5 2.1.1. The Constitution of the Republic of South Africa ................................................................. 5 2.1.2. New Growth Path .................................................................................................................. 6 2.1.3. The National Industrial Policy Framework ............................................................................ 7 2.1.4. The Industrial Policy Action Plan ........................................................................................... 8 2.1.5. The White Paper on Local Government ................................................................................ 9 2.1.6. National Spatial Development Perspective ........................................................................ 10 2.1.7. The National Framework for Local Economic Development by CoGTA.............................. 11 2.1.8. Integrated Sustainable Rural Development Strategy ......................................................... 11 2.1.9. The Regional Industrial Development Strategy .................................................................. 12 2.1.10. The National Strategy for the Development and Promotion of Small Businesses in South Africa ............................................................................................................................................. 13 2.1.11. The Broad-Based Black Economic Empowerment Act ...................................................... 14 2.1.12. The Tourism Growth Strategy ........................................................................................... 15 2.1.13. The Municipal Structures (1998) & Municipal Systems Act (2000) .................................. 15 SECTION THREE: Background Analysis ......................................................................................... 17 3.1. Demographic Context .............................................................................................................. 17 3.1.1 Age and Gender Profile ........................................................................................................ 18 3.1.2 HIV/AIDS Profile ................................................................................................................... 19 3.2. Socio-Economic Context .......................................................................................................... 20 3.2.1. Income Profile ..................................................................................................................... 20 3.2.2. Education Profile ................................................................................................................. 21 3.2.3. Employment and Unemployment ....................................................................................... 22 3.2.4. Employment per Sector ...................................................................................................... 22 3.2.5. Skills Profile ......................................................................................................................... 23 3.3. Economic Context .................................................................................................................... 24 i Dipaleseng Local Economic Development Strategy 3.3.1. Economic Production and Growth ...................................................................................... 24 3.3.2. Comparative Advantage...................................................................................................... 25 3.3.3. Sector GDP Contribution ..................................................................................................... 26 3.3.4. Tress Index .......................................................................................................................... 26 3.3. Conclusion ................................................................................................................................ 27 SECTION FOUR: Sectoral Opportunity Analysis ............................................................................ 29 4.1. Agriculture ................................................................................................................................ 29 4.1.1. National and Provincial Context ......................................................................................... 29 4.1.2. District and Local Context ................................................................................................... 30 4.1.3. Development Potential and Constraints ............................................................................. 32 4.2. Mining ........................................................................................................................................ 33 4.2.1. National and Provincial Context......................................................................................... 33 4.2.2. District and Local Context ................................................................................................... 34 4.2.3. Development Potential and Constraints ............................................................................. 34 4.3. Manufacturing ......................................................................................................................... 36 4.3.1. National and Provincial Context ......................................................................................... 36 4.3.2. District and Local Context ................................................................................................... 37 4.3.3. Development Potential ....................................................................................................... 37 4.3.4. Development Potential and Constraints ............................................................................. 40 4.4. Utilities ..................................................................................................................................... 42 4.4.1. National and Provincial Context ......................................................................................... 42 4.4.2. District and Local Context ................................................................................................... 44 4.4.3. Development Potential and Constraints ............................................................................. 46 4.5. Retail and Wholesale Trade ....................................................................................................... 47 4.5.1. National Context ................................................................................................................. 47 4.5.2. District and Local Context ................................................................................................... 48 4.5.3. Development Potential and Constraints ............................................................................. 49 4.6. Transport .................................................................................................................................... 49 4.6.1. National and Provincial Context ......................................................................................... 49 4.6.2. District and Local Context ................................................................................................... 51 4.6.3. Development Potential and Constraints ............................................................................. 51 4.7. Tourism .................................................................................................................................... 52 4.7.1. National and Provincial Context ......................................................................................... 52 ii Dipaleseng Local Economic Development Strategy 4.7.2. District and Local Context ................................................................................................... 53 4.7.3. Development Potential and Constraints ............................................................................. 54 SECTION FIVE: LED Framework ................................................................................................... 55 5.1. LED Vision & Strategic Goals ...................................................................................................... 55 5.2. Project Identification, Prioritisation and Spatial Context .......................................................... 56 5.3. Project Packaging ....................................................................................................................... 58 SECTION SIX: Development Strategy ..........................................................................................
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