th 4 Generation Integrated Development Plan 2017 – 2022 rd 3 Review reAmendment DRAFT REVIEW – MAY 2020 1 PREFACE of the EXECUTIVE MAYOR While we are reflecting on the third review of the 4th generation Integrated Development Plan (IDP) for Saldanha Bay Municipality (SBM) (2017 – 2022) it is almost overwhelming given the current challenges we face in the municipality and globally. With the current impact of the COVID-19 pandemic on all our lives, what we know to be our “current reality” will change indefinitely. To prevail all of us will have to reflect, learn, adapt and change priorities. Bearing in mind the dire need in most of our communities it is critical that we base our decisions on factual data and not on emotions or fear. Knowing that we all operate in a VUCA world (Volatility, Uncertain, Complexity and Ambiguity), SBM needing to identify key risks (shocks) and opportunities, in 2019 embarked on a process to “study” possible socio- economic futures of the municipal area. This will be used as an input for the 5th Generation 2022 - 2027 IDP. In this study different “shocks” where module to understand the impact on our socio-economic futures and guide future planning. The currently reality is that in the five-year term (2017 – 2022) the West Coast area have already experienced some of these shocks. These include a severe draught, the collapse of the metal sector with the closure of AMSA Saldanha Steel, and the latest challenge with the COVID-19 pandemic. Adding to this and prior to the Covid-19 Disaster, South Africa was downgraded to “junk” status by the last of the 3 big rating agencies in the world. In order for us as a municipality to deal with our challenges and engineer a responses to these events SBM are also fortunate to be a pilot site for the Whole of Society Approach (WoSA) where the focus is to follow a citizen participation engagement process, listen with empathy, and have a multi-sectoral response to community needs and respond with integrity / legitimacy. It is important that in these times we also embrace the tools made available to us such as the Joint District Approach (JDA) which aims to have a single support plan for National, Provincial and Local Governments, to focus on our joint objectives and work together to improve the socio- economic circumstances of our citizens. The overall objective of this JDA platform is: • Ascertain the current realities and constraints and/or opportunities; • Attempt to align existing planning processes and budget between the three (3) spheres of government, other government agencies (including parastatals) and relevant state-owned entities; • Outline strategic decisions and trade-offs that need to be made to achieve the vision in a complex and changing environment; • Identify and guide the planning and execution of major interventions; • To co-ordinate the determination of priorities and sequencing of programmes and/or projects based on available funding resources and guide resource allocations; and • Mobilise and direct new investments. From these objectives the strategic planning priorities have been identified as: • Safety • Economic Growth • Education and Social Well being • Housing • Water and Waste Management • Energy Security • Integrated Transport • ICT connectivity Facing these challenges, it has become very clear that we need an empowered society that participates productively in an environmentally and sociably sustainable and resilient economy. At the heart of all these activities it is critical that we have a strong understanding of what our citizens needs are and facilitating a process of participation and understanding of government mandates on how we can assist with the needs within our current frameworks. It is also clear that we need new platforms to engage with our citizens and to pursue technology driven platforms to breech the digital divide and enable active participative approaches. Given all of this SBM (must?) intensifies its focus on a “S.M.A.R.T future through excellence” and make sure that the foundation a building blocks are put in place to make this a reality of our local and regional economy. Although we are faced with many challenges in this term, we are also fortunate that our area hosts one of the Western Cape’s leading local economies outside of the metro and its functional region. It also boasts the highest average per capita income in the West Coast District and diversity of sub-sectors. We have a strong tourism sector that has a unique offering, well beyond ordinary beach holidays. This includes water sports (notably, world class kite surfing) and other adventure sport, nature and heritage tourism as well as business tourism, conferences and events. With the fishing and fish processing sector anchored by major corporations, it still leads the employment stakes and forms very diverse cluster of smaller fishing and sub-contracting firms. Many new and established firms are also invested in the aquaculture sector, with major mussel and oyster cultivation and processing infrastructure has been developed, especially over the past ten years. Equally embedded in the local economy are the minerals and metals processing facilities as well as the marine and shipping industries with a range of engineering and technical services companies. These value chains create quality jobs and provide sophistication to the local economy, including general machine and steel engineering, marine engineering and vessel repair, boat building and many more. The Port of Saldanha is the pillar of the regional logistics and bulk handling capabilities. Not only does it serve as the import and export terminal for bulk minerals, crude oil and break-bulk cargo, but the port and the adjacent industrial area recently added a single buoy mooring 3 and storage facilities for liquid petroleum gas (LPG) and is busy developing refined product storage and blending facilities. The major rail and port infrastructure is also complimented by a recently upgraded road freight network and local and international road hauliers are established in the area. SBM is also fortunate to have an Industrial Development Zone in its back yard that has this year started construction of the first facility of local investor, West Coast Corrosion Protection, began in earnest early 2020. As a small, local company in the corrosion protection and support services industry, it services a range of marine vessels in a number of ports across South Africa. The new facility will provide a necessary base to expand their value and service offering, and in an SEZ dedicate to the maritime industry, will open doors to new markets and consumers. This is very much a local success story of a local business that reached for the bigger picture and as a result has a very prosperous future. Next year, construction on two more tenant buildings at the SBIDZ will begin, heralding a pivotal moment in the SBIDZ’s journey as it becomes a real and firm fixture on the West Coast skyline. One can already feel the change the new improved road networks, the Access Complex and the serviced port land has signalled. The SBIDZ has, to date, signed 11 lease agreements with an investment value of over R3billion. An investment pipeline of 60 investors continues to be explored, with a selection of key potential investments in active conversation Planning for the future is difficult, especially so when faced with poverty, disease and unemployment, exacerbated by a recession in the global economy. As Mayor of SBM it is my hope that this reviewed 2020/21 Integrated Development Plan (IDP) will empower Council, the administration, our stakeholders and our respective wards to face the identified challenges and seize the limited opportunities. Finally, allow me as Executive Mayor to express my gratitude to our community for their contributions on many levels to make Saldanha Bay Municipality a wonderful place to work, stay and visit. ALDERMAN M KOEN: EXECUTIVE MAYOR PREFACE of the MUNICIPAL MANAGER The Saldanha Bay Municipality envisages a “Smart Future through Excellence” and expeditiously structured its operations in a manner consistent with the favourable achievement of this vision for the local and regional economy. The Saldanha Bay area hosts one of the Western Cape’s leading local economies outside of the City of Cape Town and its functional region, boasting with the highest average per capita income in the West Coast District and a diversity of sub-sectors. The pristine and quintessential seafront towns offer a range of tourism attractions, widely known and sought after by national and international tourists and thrill seekers. The Saldanha Port and manufacturing sector is key to our economic performance. This unusual mix of secondary industry with tourism allows for an inviting atmosphere for people to settle in our area. Our venerated partnerships with National and Provincial government, other Municipalities, business stakeholders, the Flamish and lately the American Embassy as well as the Saldanha Bay Industrial Development Zone (SBIDZ) and others, we believe will be instrumental in growing our local economy. The SBIDZ located in the designated Port area is of strategic essence for Saldanha Bay Municipality. This relationship is cemented by a bi-weekly meeting with SBIDZ and the TNPA. As strategic partners we also collaborate on several projects for the benefit of the greater Saldanha Bay area. Saldanha Bay Municipality collaborated with SBIDZ to develop a Socio-Economic Future Framework (SEFF). This framework was purposed to provide an in-depth economic focus of the area and the impact of industry, specifically the SBIDZ on the Greater Saldanha Bay area. The rationale is to base the 5th generation IDP on proper intelligence especially since resources are declining annually. The study used three growth paths on which several shocks was applied as potential occurrences. It concluded on several potential growth industries, the positive impact of the SBIDZ, the most exposed industries etc.