Ndwedwe Local Economic Strategy/Plan

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

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NDWEDWE LOCAL MUNICIPALITY

JULY 2006

Table of contents EXECUTIVE SUMMARY

Prepared for: Prepared by:

URBAN-ECON: Development Economists The Municipal Manager

Private Bag X 503 P O Box 810

Ndwedwe KLOOF

4342 3640 TEL: 031-2029673 Tel 032 532 1089 FAX: 031-2029675 E-mail: [email protected]

1 NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

TABLE OF CONTENTS

PHASE ONE REPORT

SECTION ONE: INTRODUCTION 4 1.1 Project Background 4 1.1.1 Location of the study area (Mapping) 5 1.2 Aims of the project 6 1.3 Project scope 6 1.4 Approach and Methodology 7 1.5 Contents of the report 8

SECTION TWO: CONCEPTUALIZATION OF THE LED 9 2.1 Defining an LED 9 2.1.1 Economic need approach 9 2.1.2 Opportunity driven approach 9 2.2 Linkage with IDP, District LED Plan, PGDS, National LED Strategy 10 2.3 Stakeholder analysis 13 2.3.1 Local, Provincial and National Government Partnership 13 2.3.2 The role of Non-Governmental Organisations 15 2.3.3 The role of Community-Based Organisations 16 2.3.4 The role of Traditional authorities 16 2.3.5 The role of farmers Associations 17 2.3.6 The role of Tourism Associations 19 2.3.7 Synopsis of the Stakeholders 20 2.4 Concluding Remarks: Conceptualization 23

SECTION THREE: SITUATIONAL ANALYSIS 24 3.1 Spatial Economy 24 3.1.1 District and Local Context 24 3.1.2 Regional Context 26 3.2 Demographic and Socio-Economic Profiles 27 3.2.1 Populations size and growth patterns 27 3.2.2 Gender Profile 29 3.2.3 Age Profile 30 3.2.4 Education and skills 31 3.2.5 Employment and Unemployment Patterns 33 3.2.6 Income Levels 37 3.2.7 Poverty Profile 38 3.2.8 HIV/Aids and its impact 39

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3.3 Local Economic Development and Sustainability 42 3.3.1 Available Natural Resources 42 3.3.2 Infrastructure Assets and Human Capacity 43 3.4 Synopsis 43

SECTION FOUR: SECTOR ANALYSIS 45 4.1 Agriculture and mining sector development 45 4.1.1 Climate Rating 47 4.1.2 Percentage of High Arable Land 48 4.1.3 Grazing Capacity 48 4.1.4 Veld Conditions 48 4.2 Government Sector Development 48 4.3 Tourism Sector Development 50 4.4 Commerce and Manufacturing sector development 51 4.5 Construction Sector Development 53 4.5.1 Housing status 54 4.5.2 Transport status 55 4.6 Tertiary Services (Financial) 56 4.7 Informal and Other Sector Development 58 4.7.1 Economic Resources for SMME, Commercial and Manufacturing 58 4.7.2 Sources of Funding 58 4.8 A Bird’s Eye View of the Key Thrusts of Intervention 59

SECTION FIVE: SWOT ANALYSIS 64

5.1 Strengths 64 5.2 Weaknesses 65 5.3 Opportunities 66 5.4 Threats 67

PHASE TWO REPORT

SECTION SIX: THE 2011 VISION OF NDWEDWE LOCAL MUNICIPALITY 70

SECTION SEVEN: LED STRATEGIES AND OBJECTIVES 73

SECTION EIGHT: PROGRAMMES AND PROJECTS 76

3 NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

SECTION ONE: INTRODUCTION

1.1 Background to the project

All around the world the local government together with its partners both private, and public, are faced with the challenge of improving the quality of life for everyone including the poor and the marginalised. Local governments are therefore demanding better ways to achieve local economic development which is a cornerstone of sustainable development. The purpose of this Plan is to respond to this demand and help local authorities and their partners address these challenges at Ndwedwe Local Municipality. The need of the LED Strategy or Plan was identified through the IDP review process. Beyond that the LED would also assist in addressing one of the main challenges faced by the Ndwedwe Local Municipality, i.e. the difficulty in getting a buy-in of all key stakeholders in respect of local economic development.

1.1.1 Location of the study area

Ndwedwe Local Municipality is one of the four local municipalities within the Ilembe District Municipality. It borders in the east onto KwaDukuza Municipality and in the north onto Maphumulo Municipality as indicated in map 1. On the south Ndwedwe abuts the eThekwini Municipality. In broad terms the municipality is situated parallel with and approximately 20km inland from the KwaZulu-Natal coast. While much of the north-eastern part of Ndwedwe forms part of the coastal flats mostly covered by KwaDukuza, the majority of the area consist of tribal authority land ranging from topographical fragmented to steep and dramatic.

4 NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Map 1: Locational Context of Ndwedwe Municipality

Ndwedwe Municipality within Ilembe District Municipality

Source: Demarcation Board, 2001

Ndwedwe Local Municipality

Source: Ndwedwe Local Municipality Spatial Development Framework 2005/2006

5 NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

1.2 Aims of the project

According to the terms of reference the aims of the project are to:

Undertake a detailed economic analysis with the specific aims of identifying key economic trends within the municipal area and to determine what sectors, commodities and stakeholders in the municipal area, are significant to its economic activity so as to enable identification of appropriate market interventions that will lead to economic development of the area, Formulate an implementable LED Strategic Framework to guide the manner in which the Local Municipality of Ndwedwe in partnership with other local municipalities and various agencies promote and support sustainable economic development within the area of jurisdiction. Recommend the LED structure to be established within the municipality that would direct and manage the LED related activities.

In terms of the terms of reference issued by the Ndwedwe Local Municipality the following outcomes are anticipated:

Development of an LED Strategic/Plan. Situation Analysis. Strategic Framework for each sector. Workshops to solicit stakeholder buy-in and understanding. Linkage with the IDP, District Plan, PGDS, NSDP and the national LED Plan; Feasibility and viability projects; Project Implementation Framework.

1.3 Project scope

The study involves the assessment and appraisal of the local economy that would explicitly exhibit the strengths and opportunities of the local economy. The assessment would build onto the information and strategies identified in the past studies undertakeN in the Ndwedwe Local Municipality, the LED Plans and the Integrated Development Plans (IDPs) of surrounding districts, metro, local municipalities and the Province. The study would therefore provide recommendations on how to harness the strengths of the local economy and how to overcome the weaknesses.

6 NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

1.4 Approach and Methodology

The project would take place within the context of the Integrated Development Plan of the municipality, the District’s Plans and the provincial and national development plans such as the PGDS and the national LED Policy. Current strategic plans and reports and previous research that have taken place would be taken into account in the formulation of the plan. There are a large number of economic development related studies and projects that have been undertaken within the municipal boundaries that could be used to substantiate and elaborate on the identified strategies and programmes thereof.

The methodology involves a systematic analysis of the district and local economies in order to gain an in-depth understanding of their composition, the past and current dynamics, and the factors that impact on them. Each step will produce a specific deliverable, and the process will culminate in producing the deliverables. The economic strategies will inform the multi-year planning budgeting cycle of the municipality. As such, the economic strategy will promote and facilitate a high return on investment for the capital and operational budgets of the municipality.

The following approach will be followed in the development of an LED Strategy for the Ndwedwe Local Municipality. It clearly defines each step and actions to be taken during the execution of the study. But in this report only step one up to step five to be dealt with:

Step ONE: Orientation Step TWO: Review Economic Structure & Trend Analysis Step THREE: Review Local Economic Profile Analysis Step FOUR: Review Holistic Sector Integration Step FIVE: Development Framework

Phase two report constitute a second component of Ndwedwe Local Economic Development Strategy and deals with the formulation of a development framework for Ndwedwe Local Economic Development Strategy. The following sections are included in the phase two report:

Section SIX: The 2011 vision of Ndwedwe Local Municipality Section SEVEN: LED Strategies and objectives of Ndwedwe Local Municipality Section EIGHT: Programmes and Projects of Ndwedwe Local Municipality

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The formulation of the strategic development framework outlined in this report and the projects that have been identified took place in consultation with workshops that took place on 19 May and 8 June 2006 at Ndwedwe and Qinisani respectively.

1.5 Contents of the report

The remaining structure of the report includes the following sections:

Section two: Conceptualization of the LED Section three: Situational Analysis Section four: Sector Analysis Section five: Swot Analysis Section Six: Institutional Framework Section Seven: Strategic Development Framework Section Eight: Implementation Strategy

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SECTION TWO: CONCEPTUALIZATION OF THE LED

2.1 Defining an LED

Local Economic Development is described as a participatory process in which local people from all sectors work together to stimulate local commercial activity, resulting in a resilient and sustainable economy that brings economic benefits and improved quality of life to all in the community. An LED Plan therefore encourages public, private and civil society sectors to establish partnerships and collaboratively find solutions to common local challenges. At the same time Local Economic Development capitalises on what the local area does well, the local needs and wants, and the local opportunities.

There are two main approaches to the attainment of local economic development. The municipalities can either utilise the economic need approach or the opportunity driven approach. These approaches are briefly discussed below:

2.1.1 Economic Need approach

Economic need approach is poverty alleviation driven. An LED is viewed as a key component to reduce poverty. It is based on the thinking that for an LED to be sensitive to poverty alleviation it has to be inclusive of poverty reduction actions. It therefore, focuses on the equipment of local people with resources such as micro enterprise development, land, capital, labour skills and other local resources that are utilised to achieve local priorities. This approach confronts the fact that those in greatest need are seldom well equipped to engage in small business activities. This is so because they lack business and enterprise skills, scarce resources, they lack access to external support and market opportunities. The economic need approach therefore tries to avail resources, skills and support to those who are in greatest need.

2.1.2 Opportunity needs approach

Opportunity driven approach on the other hand looks at a wider range of LED strategies that would attract investment at the same time retain and grow existing businesses. Opportunities are exploited where they are found as opposed to where they needed and the benefits may or may not reach the most disadvantaged communities.

There are no clear cuts as to which approach to be adopted. However in order to achieve sustainable local economic development the key challenge is to ensure the

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pursuit of both approaches, i.e. promote local wealth creation and at the same time promote poverty alleviation to exhibit the parallel relationship between poverty alleviation and economic growth. This can be done by promoting the development and exploitation of opportunities followed by the assurance that the traditionally left out are active participants and have access to the opportunities resulting from the development, and by recognising both the formal and informal economies. In the formal economy the actions might include targeting business expansion aimed at jobs for the poor. Similarly the formal economy can support the informal economy by strengthening the skills and resources of people engaged in the informal economy.

LED is therefore an important process that assists in alleviating poverty and in the development of sustainable local economies. It is also important because it assists in the following:

Create jobs and new employment opportunities, increases income levels and enable people to pay for services, Broadens the tax and revenue base of a local authority, Enables the local authority to provide more and better services and facilities Concentrates on human resource potential, concentrate on opportunities for development, promote linkages between developed and under-developed areas, and builds new institutions for sustainable economic development.

2.2 Linkage of Ndwedwe LED Strategy with the IDP, District LED Plan, PGDS, National LED Strategy

This section of the report identifies the alignments and the relationships between the Integrated Development Plan (IDP), District LED Strategy, the PGDS and the National LED Strategy. Particularly because the need to obtain a shared approach to planning and alignment between the Provincial Growth and Development Strategies (PGDSs), the municipal Integrated Development Plans (IDPs) and the National Spatial Development Perspective (NSDP), was stressed in the May 2004 Cabinet Lekgotla and the President's State of the Nation Address on 21 May 2004. It is therefore a key priority of government to make government as a whole work together and improve the impact of its programmes in achieving common objectives and outcomes, particularly with respect to economic growth and job creation and addressing the needs of the poor.

Table 1 below reflects that there seem to be a very strong relationship between the aims and objectives of Ndwedwe IDP and that of the Ndwedwe LED Strategy. Both the Ndwedwe LED Strategy and the IDP emphasize the importance of the improved

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quality of life in all the sectors of the community. In order to achieve that they advocate for local people inclusive plans.

Table 1: Linkage between Ndwedwe LED Strategy and Ndwedwe IDP NDWEDWE IDP NDWEDWE LED - Is aimed at promoting quality and sustainable -The Ndwedwe LED would facilitate the process of delivery of municipal services. the provision of quality and sustainable services by the municipality through identifying backlogs that exist as far as the economic services are concerned in the Ndwedwe Local Municipality. -Involving communities in the development - The Ndwedwe LED would identify the outsourcing opportunities to the local people so as to achieve this goal of the IDP of involving the communities in the development of the area. -Forging strategic alliance and partnerships - The Ndwedwe LED Strategy would assist in between the municipalities and government identifying areas of strategic investment across all departments, NGOs, CBOs, and the Private Sector sectors of the economy such as agriculture, to ensure speedy and co-ordinated delivery. tourism, manufacturing, government, mining, commerce,, construction, informal, and tertiary services. The government, the private sector, the CBOs and the NGOs would assist in taking advantage of these potential opportunities either through the provision of funding and other technical assistance.

Table 2 below indicates that there is also a strong relationship between the aims of the Ndwedwe LED Strategy and that of the Ilembe District LED Strategy, which stresses the commitment of all the spheres of civil society in development plans.

Table 2: Linkage between Ndwedwe LED Strategy and the District LED Strategy ILEMBE LED NDWEDWE LED -It is aimed at promoting co-operation at all levels -To improve the quality of life of all the residence of society in order to improve the quality of life of all the Ndwedwe LED Strategy would identify capacity its residents, building programmes to enrich the community with the skills, and knowledge for business establishment that in turn would increased the income of the people. Increased income would improve the quality of life of all the residents. -Based on local initiatives where local communities -The Ndwedwe LED Strategy would assist in are encouraged to help themselves, identifying all the stakeholders both the recognised and those that are not recognised register them to qualify for further funding and technical assistance. The sources of funding for local initiatives would also be identified within the Ndwedwe LED Strategy. -Focuses on equal investment in social upliftment, -The LED Strategy would identify the environmental protection and commitment from all environmentally sensitive areas that would be spheres of civil society. preserved for tourism and other economic purposes.

Table 3 further reflects that not only does the aims of Ndwedwe LED Strategy align to the District Strategy as far as economic development is concerned, but also align to the Provincial Strategy that is aimed at promoting prosperity and improving quality of life in a sustainable manner.

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Table 3: Linkage between the Ndwedwe LED Strategy with the PGDS KZN PGDS - Is aimed at promoting prosperity and improving -The Ndwedwe LED Strategy would assist in quality of life, identifying strategic areas for investment which will -Promoting sustainable economic development and assist in bolstering the local economy and job creation, employment creation within Ndwedwe Local -developing human capacity, Municipality. -Identifying and working with all role players from all -The Ndwedwe LED Strategy would also identify all sectors of society, the role players/stakeholders in the Ndwedwe Local Municipality.

The Ndwedwe LED Strategy responds to the NSDP as indicated by table 4 below, the PGDS and the District LED Strategy by focusing on localities of economic growth and economic potential in order to gear in private sector investment, stimulate sustainable economic activities and create long-term employment opportunities.

Table 4: Linkage between the Ndwedwe LED Strategy with the NSDP NATIONAL SPATIAL DEVELOPMENT PERSPECTIVE Ndwedwe LED -Is aimed at making South Africa a nation in which -The Ndwedwe LED Strategy would assist in investment in infrastructure and development identifying strategic areas for investment within programmes support government’s growth and Ndwedwe Local Municipality, which would create development objectives employment opportunities for the local community - By focusing on economic growth and employment of the area. creation in areas where this is most effective and sustainable. - Fostering development on the basis of local potential; and

- Supporting restructuring where feasible to ensure - The Ndwedwe LED would assist in identifying the greater competitiveness key role players/stakeholders within the local economy of Ndwedwe Municipality.

Linkage between the Ndwedwe LED Strategy with the Accelerated and Shared Growth Initiative of South Africa (Asgisa) Accelerated and Shared Growth Initiative of South Ndwedwe LED Strategy Africa (Asgisa) ASGI-SA is one of the south African programmes The Ndwedwe LED Strategy Communicates Very that targeted at halving poverty and Well With The Principles Of The ASGI-SA. For unemployment. The following are the areas of focus Example: that are envisaged to assist in achieving these broad objectives of the ASGI-SA.

- Increased investment from a current level -It Focuses On Investment Enhancement So As To of 16 % to 25% by 2014 Create Employment Opportunities Within Ndwedwe Local Municipality which in turn will impact positively on the expenditure patterns of the local community of the Municipality. It focuses on increasing investment on big business - Facilitating mobility between formal and such ad the development of a shopping informal economy centre/Supermarket, Agri-business industries, light industrial hives, and at the same time it does not leave BEE/SMME businesses out of the whole equation. I t also ensures the information sharing between the established businesses and emerging small businesses, which will be facilitated by the business chamber. Ones the business flow down to the emerging businesses, the process of the establishment of cooperatives and entrepreneurs

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Accelerated and Shared Growth Initiative of South Ndwedwe LED Strategy Africa (Asgisa) would be made easier.

-The LED Strategy identifies aligns its projects/ - Social services income support and human activities to the ones that are identified within the development IDP. One of the areas of focus of the IDP is the preparation of the Social Service Plan. The community facilities are also envisaged to be very important in the upliftment of the local economy. HIV/Aids programmes such as the development of the Hospice Centre are also recommended as HIV/Aids are one of the key issues within Ndwedwe Local Municipality that impedes the development of the economy of the area. -The LED Strategy recognises that Ndwedwe Local - Improving state capacity Municipality’s LED section requires some restructuring for it to be able to oversee and monitor both operational and strategic economic plans of the municipality. First of all it recommends that the municipality should engage more on capacity building of the existing LED staff members, secondly, the coordination between the department of finance and the LED section should be enhanced. And the LED wish to resume power to source funding for LED activities itself.

2.3 Stakeholder analysis

This section of the report discusses the role of all the stakeholders in Local Economic Development within both Ilembe and Ndwedwe Municipalities and outlines the already existing programmes aimed at promoting viable and sustainable local economic behaviour. The section commences by looking at the role of the Government structure at local, provincial and National level, then the role of NGOs, CBOs, the traditional authorities, the farmers and the tourism associations.

2.3.1 Local, Provincial and National Government Partnership

Local government structures within both Ilembe District and Ndwedwe Local Municipality have a critical role to play in LED. This includes investment promotion, facilitation and creating an enabling framework for job creation and economic growth. While there is general acceptance of this mandate, municipalities experience a number challenges. This is particularly the case for the local municipalities, most of which are less resourced and more rural. These challenges can be summarized as follows:

Lack of sufficient and appropriately qualified human capacity Lack of clarity about the LED role of local government and poor understanding of LED.

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Poor integration of LED into the service delivery functions of the municipality. Lack of LED vision and strategy, apart from the district municipality and Enterprise Ilembe. Poor access to relevant information.

The level of coordination between the municipalities and these sector departments is generally weak. The participation of government departments in the preparation of IDPs has generally been poor. In fact, IDPs tend to be seen as municipal documents with limited relevance to government departments. As a result, a number of government departments have not aligned their programmes with the IDPs, and are implementing their programmes outside the IDP framework. The following government departments are involved in LED related activities within Ndwedwe Local Municipality and Ilembe District Municipality:

The municipalities Department of Agriculture and Environmental Affairs Department of Economic Development Department of Arts, Culture and Tourism Department of Housing Department of Development Planning Department of Social Welfare and Population Development Department of Transport Department of Public Works Department of Traditional and Local Government Affairs Department of Health Department of Social Welfare and Population Development

The above mentioned departments can be divided according to the three spheres of government, that is, the local, provincial and national spheres. These spheres are the key drivers for LED. Very importantly, for the effective use of resources and implementation all the government need to act in synergy.

The key performance areas of the National and Provincial spheres of government are:

Economic growth Employment creation Competitiveness Broad-based economic empowerment and, Appropriate geographic spread of economic activity

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The key performance areas of the local government sphere are on mobilising local communities in development activities under the framework of the PGDS and the NSDP.

2.3.2 The role of Non-Governmental Organisations

A non-governmental organization (NGO) is an organization that is not part of a government and was not founded by states. NGOs are therefore typically independent of governments. Although the definition can technically include for- profit corporations, the term is generally restricted to social, cultural, legal, and environmental advocacy groups having goals that are primarily noncommercial. NGOs are usually non-profit organizations that gain at least a portion of their funding from private sources.

There is one main NGO that comprises small-NGOs operating at Ndwedwe Local Municipality. At a district level there are two main NGOs, i.e. the Valley Trust constituting a dominant force in the areas in which it works. While much of its area of operation fall within the boundaries of eThekwini, and less physically in Ilembe, it impacts on large parts of the Ilembe area. It operates across a number of sectors, focusing initially on health, nutrition, agriculture etc. Its new CEO has a more business orientation and it is likely to get more involved in sponsoring LED related activities. Its activities are not aligned with the municipal LED programme. The Chief Albert Luthuli Trust operates in the Groutville area of KwaDukuza. Its activities are not aligned to the municipalities’ IDP or LED programme.

All the NGOs are making efforts on promoting development of the local economy. Some of the NGOs are headed by Imbizo Youth Development Organization which specializes on funding and the provision of resources required by small NGOs that fall under their ruling hand. The following table outlines the variety of NGOs at Ndwedwe Local Municipality that plays a meaningful role towards improving the local economy:

Category Name of the NGO Imbiza Youth Development Zamuluzenzela Youth Club Amaphikentokozo organization Phezukomkhonto organisation

2.3.3 The role of Community Based Organisations

There are moves to establish Community Development Co-operatives in the area. At a district level Valley Trust works with a number of community based organizations, and has changed its policies in recent years, in line with changes in the policies of

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international donors to provide funding to national government, rather than direct to NGOs. As a result, Valley Trust tries to hand over projects once they are well established, and works towards developing effective community based structures to do this.

At Ndwedwe Local Municipality there is a number of CBOs focused mostly on the welfare of the orphans and the persons suffering from HIV/Aids related diseases and the disabled. These organizations are financially supported by the National Development Agency. The welfare organizations are engaged mostly in voluntary work and the NDA would come in there and there particularly in sponsoring with the school uniforms, and some clothes for the orphans. The HIV/Aids CBOs are work hand in hand with the Ilembe and Ndwedwe Departments of Health, and the Medical Care Development International (MCDI) that specializes on training the candidates. The Department of Health sponsors the MCDI with the kits. The table below outlines the CBOs at Ndwedwe Local Municipality:

CBO Category Name of the CBOs Ndwedwe HIV/Aids Organisations: Lethokuhle Women Organisation Medical Care Development International (MCDI) Ntaphuka Youth Project Sakhisizwe Youth and Information Sinethembe Youth Organisation Siyaqhubeka Nempilo Welfare Organizations Sithandukwenza Sinethemba Siyakhula

2.3.4 The role of Traditional/Tribal Authorities

There is a conscious effort on the part of the district municipality to involve traditional leaders in all aspects of its functioning. The mayor meets traditional leaders on a monthly basis to discuss issues, and involves them where possible in LED related decisions. Although traditional authorities are not directly involved in LED, they control a significant amount of land within the District, and are responsible for the allocation of land tenure rights. In fact, traditional authorities have (in the past) performed some of the duties that have been allocated to municipalities. However, this situation is gradually changing following the establishment of wall-to-wall municipalities, establishment of systems and procedures for municipal planning (which includes land use management) and transformation of the traditional authority structures. In future, traditional authorities will not be involved in land use management, but will still be responsible for the allocation of land rights. They will make land available for LED purposes and sign lease agreements on behalf of their communities. It is therefore important to introduce traditional leaders to LED and build their capacity to facilitate job creation, poverty alleviation and economic growth.

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There are about 23 traditional authorities that represent Ndwedwe traditional areas on their meetings with the mayor. The following table outlines the traditional authorities at Ndwedwe Local Municipality:

Table 4: Ndwedwe Profile of Traditional Authority Areas and Leadership Local Municipality Tribal Authorities Area (Hectares) Luthuli 1790.303 Magwaza 372.152 Mlamula 12480.268 Gcwensa 5670.789 Cele 877.409 Inkumba Nyuswa 4711.509 Qwabe 967.697 Mavela 4222.776

Nodwengu 6002.462 NDWEDWE LOCAL MUNICIPALITY Hlophe 284.969 Vumazonke 1219.023 Wosiyana 5926.698 Emalangeni 5470.428 Cibane 863.393 Shangase 6060.425 Ngcolosi 895.412 Chili 1122.873 Khumalo 651.373 Inkumba Nyuswa 12376.575 Qadi 174.874 Qadi 1324.123 Qadi 14953.630 Hlophe 575.276

2.3.5 Farmers Associations

The SA Sugar Association dominates in the area, and has a number of smaller associations linked to it, that incorporate emerging farmers etc. The SA Sugar Association (SASA) is a pioneer of agricultural development finance in SA. Since 1973 SASA's Financial Aid Fund (FAF) now known as Umthombo, has provided assistance to small-scale sugar cane growers who could not obtain credit through normal banking channels. With an average loan book in excess of R100m and a retention savings portfolio of R50m per annum, FAF was until hitherto SA's largest private sector programme for the funding of agricultural development. The loan repayment rate of 95% and bad debt write-off of less than 3% of the loan book ensured that FAF remained one of the most successful development lending programmes in South Africa (http://www.sasa.org.za/sasaservices/development/umthombo.asp). Services offered by Umthombo include the following:

Agri-Bridge Loan Programme: This product, which was not available before, is a short-term loan aimed at providing bridging finance to sugarcane growers during the period between harvesting and the receipt of proceeds from the harvested

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cane, as well as to in-field contractors linked with harvesting who in the past were not financed by FAF. Access Loan Programme: This programme provides start-up capital for people who wish to utilize their land for sugarcane farming. It is aimed at promoting growers who aspire to farm commercially but lack the resources to do so. Zimele Loan Programme: This product is aimed at assisting individual cane growers who have access to more than 5ha of land under dry land conditions or more than 2ha under irrigation. Ratoon Loan Programme: The aim of this product is to provide finance to existing growers who need assistance to fund their operational inputs for the purpose of ratoon management. Retention Savings Scheme: One of the products that have been carried over from FAF is the Retention Savings Scheme. It is a product that seeks to promote the culture of saving among uMthombo clients and create a climate where they are not perpetually dependent on credit.

The Department of agriculture and Environmental Affairs is not involved into the fullest extent in the granting of finance to growers by Umthombo but it has been the facilitator of the process and accommodating the loans office that sets up the application form for the Umthombo. The decision had to be taken by Umthombo office and when the application was approved the funds were then given to Sukumani office as a developer of small sugar cane growers (i.e. those with 0.5 Ha to 5Ha). Sukumani had all the necessary equipments for producing cane like machinery, fertilizers and labour. Therefore Umthombo would give funds to Sukumani office that would directly liaise with the applicants. Normally R8000.00 per Hectare within 8 years pay-back period with interest. The applicant was given a quota number for milling the cane and the quota number would facilitate access to installments by Umthombo from the Mill.

Due to that some of the growers could not pay back the loans Umthombo had been losing out. On the 20 of April 2006 the meeting was held between Umthombo and the cane growers where the Umthombo declared that it is no longer keen to issue out loans therefore other sources of funding should be identified.

Key Stakeholders in Ndwedwe Farming enterprises range between the cropping and animal enterprises at Ndwedwe Local Municipality. Some of the key stakeholders in the agricultural sector at Ndwedwe Local Municipality are:

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Table 5: Ndwedwe Farmers Associations STAKEHOLDERS AREA OF OPERATION - Sonke Ndwedwe Poultry Co-operative -Ndwedwe Central - Vusindwedwe Poultry Co-operatives -Bhamshela -Ozwathini Poultry Co-operative -Ozwathini -Khethokuthle Poultry Co-operative -Bhidakhona -Gcwensa Association -Gcwensa Ward -Injabulo Yethu Co-operative -Gcwensa -Ozwathini Spice Growers -Bhamshela -Masibambisane Local Farmers Association -Ogonothini area -Waterfall Local Farmers Association -Waterfall area -Bhidakhona Local Farmers Association -Luthuli Ward -Ndwedwe Mission Local Farmers Association -Ndwedwe Mission -Mona Local Farmers Association -Mona area -Kwasa Local Farmers Association -Kwasa area -Sdumbili Local Farmers Association -Sdumbili area -Phambela Local Farmers Association -Phambela area -Ndwedwe Livestock Association -Tongaat area -Bhamshela Livestock Association -Bhamshela Source: Department of Agriculture and Environmental Affairs

2.3.6 Tourism Associations

Tourism is one of the key economic sectors in Ilembe District. It is however, facing a number of institutional challenges. These can be summarised as follows:

It has developed and remains a generally white dominated industry. The local communities tend to be excluded. Tourism infrastructure is concentrated in the previously white areas of the coastal strip, although efforts are being made to implement the planned cultural heritage route, which would be inland, and more community based. A section 21 company, the ‘Ilembe Tourism Destination Management Office’ is envisaged, which enables the District Municipality to provide the necessary local government legislative guidelines and policy frameworks for tourism local economic development, as well as enabling private sector and community participation within a non-bureaucratic environment. The KwaDukuza local municipality funds the Dolphin Coast Tourism association.

There are no active Community Tourism associations at Ndwedwe Local Municipality. The Ilembe Tourism section have had a meeting with Ndwedwe Local Municipality which was aimed at establishing the Ndwedwe tourism portfolio and the way forward as far as tourism is concerned at Ndwedwe. After the short discussion held with an officer within Ilembe Tourism Section, it was reported that nothing actually came out of that meeting. The only thing that Ndwedwe as managed to do as far as tourism is concerned is the Nhlangakazi Mountain Business Plan.

19 NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

2.3.7 Local business Associations

The following table indicates the local businesses that are currently taking place at Ndwedwe Local Municipality. These businesses are limited to the commercial stores and transport related businesses. These businesses specialize in servicing the basic needs of the public.

Local Business Categories Associations Local Business Thandokuhle Supermarket Mr Eliot Hlophe Kwazenzele Restaurant Ogunjini Store Hlongwa and Sons S C Construction Indolo Enterprise Bhamshela Surge B J Blocks and Sand Supplier Newspaper General Dealer Ekupholeni Store Ozwathini F Service B Lovemore Centre Ntokozo Hardware Corby Hill Guest House Taxi Category Bhamshela Appelbosch Taxi Association Ndwedwe Taxi Association Bus Category Injabuliso Bus Service Monalisa Semstar Trading Thuthuka Tobo Trans Hlophe Bus Service

2.3.8 Ndwedwe LED funding Agencies as Stakeholders

The funding agencies that are currently playing a meaningful role and the potential funders in the development of the local economy of Ndwedwe Local Municipality are:

The NDA that has been mentioned on the above sections specializing on sponsoring the CBOs and the NGOs. The Gijima Funding agency which is administered by the Provincial Department of Finance and Economic Development. The Gijima prioritizes certain sectors of the economy as being eligible for this type of funding. These sectors includes: Agriculture and agri-processing Tourism Clothing and textiles Wood and wood products Arts and crafts industries Information and communication technology

20 NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Logistic and transport

The Department of Arts, Culture and Tourism which plays a meaningful role in local economic development within Ilembe District but has not yet earmarked Ndwedwe Municipality as one of the areas of interest and need to be taken advantage of. The Municipal Infrastructural Grant (MIG), which still need to set out clearly a portion for local economic development. The Ndwedwe Local Municipality on its Annual Budget sets out a portion for LED purposes

2.3.9 Synopsis of the Stakeholders

The table below provides the summary of the roles and implications of all the stakeholders both at a district and local municipal levels.

Table 6: Synopsis of the Stakeholders and Implication Categories Implications Stakeholders 2.3.1 Local Government - Investment promotion, jobs creation -Ndwedwe Local Municipality and economic growth promotion -Ilembe District Municipality 2.3.2 Provincial Government - Investment promotion, jobs creation -Department of Agriculture and and economic growth promotion Environmental Affairs -Department of Economic Development -Department of Arts, Culture and Tourism -Department of Housing -Department of Development Planning -Department of Social Welfare and Population Development -Department of Transport -Department of Public Works -Department of Traditional and Local Government Affairs -Department of Health 2.3.3 National Government - Investment promotion, jobs creation -Department of Housing and economic growth promotion -Department of Land Affairs -Department of Agriculture -Department of Environmental Affairs and Tourism -Department of Social Development -Department of Trade and Industry -Department of Transport -Department of Water Affairs and Forestry -Department of Health 2.3.4 Non-Governmental -Sponsoring LED related activities -Valley Trust Organisations (NGOs) -Chief Albert Luthuli -Imbizo Youth Development -Zamuluzenzela Youth Club -Amaphikentokozo organization -Phezukomkhonto organisation

2.3.5 Community-Based -Valley Trust works with the CBOs -Lethokuhle Women Organisation Organisations (CBOs) -MCDI -Ntaphuka Youth Project -Sakhisizwe Youth and Information

21 NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Categories Implications Stakeholders -Sinethembe Youth Organisation -Siyaqhubeka Nempilo -Sithandukwenza -Sinethemba -Siyakhula

2.3.6 Traditional authorities -Indirectly Involved In LED decisions Luthuli -Responsible for the allocation of land Magwaza tenure rights. Mlamula -Sign lease agreement on behalf of their Gcwensa communities Cele -Make land available for LED purposes. Inkumba Nyuswa Qwabe Mavela Nodwengu Hlophe Vumazonke Wosiyana Emalangeni Cibane Shangase Ngcolosi Chili Khumalo Inkumba Nyuswa Qadi Qadi Qadi Hlophe

2.3.7 Farmers Associations -Identify agricultural development -SA Sugar Association finance to small scale farmers - Sonke Ndwedwe Poultry Co- operative - Vusindwedwe Poultry Co- operatives - Ozwathini Poultry Co- operative - Khethokuthle Poultry Co- operative - Gcwensa Association - Injabulo Yethu Co-operative - Ozwathini Spice Growers - Masibambisane Local Farmers Association - Waterfall Local Farmers Association - Bhidakhona Local Farmers Association - Ndwedwe Mission Local Farmers Association - Mona Local Farmers Association - Kwasa Local Farmers Association - Sdumbili Local Farmers Association - Phambela Local Farmers Association - Ndwedwe Livestock Association - Bhamshela Livestock Association 2.3.8 Tourism Associations -There is no active Community Tourism -Dolphin Coast Tourism Association Association at Ndwedwe. 2.3.9 Ndwedwe LED Funding -These funding Agencies need to be -The National Development Agency Agencies taken advantages of. -The Gijima -The department of Arts, Culture and Tourism -The Municipal Infrastructural Grant -The Ndwedwe Local Municipality

22 NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

2.4 Concluding Remarks: Conceptualization

From the above discussion it is envisaged that different departments, associations and organizations play a meaningful role in Local Economic Development of Ndwedwe and Ilembe District Municipality. The following organogram indicates the conceptualized idea of the LED stakeholders and their roles in Local Economic Development of both Ndwedwe and Ilembe Municipalities.

Diagram 1: Conceptualization of the LED Stakeholders at Ndwedwe Local Municipality

LOCAL ECONOMIC DEVELOPMENT

NATIONAL

GOVERNMENT FACILITATION PROVINCIAL

LOCAL

NGOs VILLAGE TRUST FUND LED CBOs INITIATIVES CHIEF ALBERT LUTHULI TRUST

TRADITIONAL DEVELOPMENT LAND AUTHORITIES

SA SUGAR AGRICULTURE DEVELOPMENT FARMERS ASSOCIATION FUNDS

DOLPHIN COAST TOURISM TORISM ASSOCIATION

23 NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

SECTION THREE: SITUATIONAL ANALYSIS

3.1 Spatial Economy

This section discusses the spatial economy (i.e. on where economic activity occurs and why) of Ndwendwe Local Municipality. The key economic infrastructure that is available at Ndwedwe Local Municipality is identified in the Spatial Development Framework. This includes the:

The N2, which runs through the district along the eastern part and is the main access route for Ilembe as a District Municipality The coast, which has attracted massive lifestyle developments Economic development centres such as the Dube Trade Port, Tongaat, Verulam, Stanger, Phoenix, and Shakaskraal R614 and R74, which are both secondary corridors Prime agricultural land dominated by extensive sugar cane plantations. Recent development surrounding Dube Trade Port in King Shaka Airport on the immediate southern boundary of Ilembe District Municipality The Isithebe Estates

This section commences by analyzing the local and the district context, then the regional context, the integration of the Ndwedwe municipality with the surrounding areas (i.e. rural and urban).

3.1.1 District and local context

Ndwedwe Local Municipality is one of the four local municipalities that are the composite of Ilembe District Municipality, which lies along the sea to the eastern part of KwaZulu-Natal as indicated in map 2. Ndwedwe Local Municipality lies further inland and abuts eThekwini Municipality to the south, Maphumulo to the North, and KwaDukuza to the east.

Ndwedwe Local Municipality is a rural area located in the close proximity of Verulam, Tongaat, Shakaskraal, Stanger and Groutville towns. These towns are linked by the provincial road (R102) which runs along the N2 to the east as indicated in map 2 above. The urban areas are found only KwaDukuza Local Municipality to the eastern part of Ndwedwe Municipality along R102 as indicated in map 2 above.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Ndwedwe Local Municipality is characterised mainly by disadvantaged areas. The mains land uses are both the primary and secondary education facilities, hospital, community health facilities, the clinic, community halls, administration offices, sports fields and a police station.

Map 2: Spatial context of Ndwedwe Local Municipality

Source: http://www.mhpgeospace.co.za/website/IlNewTourism/viewer.htm

There are also three hierarchical nodes that exist at Ndwedwe Local Municipality. These are:

PRIMARY ACTIVITY NODE, which are defined as the major centre in the municipality providing services, facilities, amenities and economic opportunities for the entire municipality, functioning also as the administrative centre of Ndwedwe,

SECONDARY ACTIVITY NODES, other major interceptory point locations serving each a portion of the municipality and providing services for such areas, suggested to consist of:

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Tafamasi in the south, Montebello in the south-west, Qinisani at the intersection of the R614 and the north-south link road, Bhamshela at the western end of the R614 within the municipality Ashville along the R74 in the north of the municipality.

TERTIARY ACTIVITY NODES, consisting of strictly local nodes serving individual communities and areas.

3.1.2 Regional Context

There are three hierarchical corridors that exist at Ndwedwe Local Municipality, namely:

PRIMARY CORRIDORS that provide the major internal and external linkage such as the following:

The N2 north is located approximately 15km to the east of the municipality, running parallel to the east coast and linking Durban to the North coast, Gauteng, etc. The existing R74 from Stanger via Ashville to Kranskop The existing R614 from Tongaat via Qinisani and Bhamshela to Wartburg The P100 from Verulam to the Ndwedwe Village and back to Inanda A new north-south link road, although based substantially on a series of existing local roads, connecting to the P100 at Mkhukhuze in the south to the Maphumulo Village in the adjacent municipality, creating inter alia a new interceptory point at Qinisani.

SECONDARY CORRIDORS that provide major internal interconnection between the various development areas and components such as the following: The Ndwedwe – Osindisweni Road The Mkhukhuze – Montebello Road Roads from the P100 to Tafamasi and Zimpondweni The Emona – Sonkombo – KwaNodwengu – Ozwathini Road linking in the north to the R614 Roads from Bhamshela to KwaThayela and the D890 further to the north The road from the Qinisani area to Ashville, The road from St. Martin to Shakaskraal The road from the R74 to Doringkop. 26

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

TERTIARY CORRIDORS, providing major local linkage and connecting local communities into the primary and secondary corridor system,

There is also a nearest rail linkage i.e. North Coast Rail running substantially parallel and close proximity of the R102 located 10-15 km east of the municipality. Relevant stations are located at Verulam, Tongaat, Shakaskraal, Stanger, etc.

3.2 Demographic and Socio-Economic Profiles

The purpose of this section is to outline an overview of the current socio-economic status of the population at Ndwedwe Local Municipality. This is done in terms of demographics, education levels, poverty rate, employment status and household income. The section also provides the trends and the implication of the trends. The analysis is based on the data and information extracted from the Census 1996 and 2001 (Statistics SA).

3.2.1 Populations size and Growth patterns

According to Statistic South Africa, the total number of the population in Ndwedwe Local Municipality has decreased by 14909 persons between the years 1996 and 2001 as indicated in graph 1b and table 4b. In 1996 the municipality was a home to about 167 404 persons whereas in 2001 the municipality has been a home to about 152 495 persons. This decline could be attributed to many factors such as outward migration due to the lack of opportunities in the municipal area and the impact of HIV/Aids. It is interesting to note that while Ndwedwe Local Municipality’s population had decreased between 1996 and 2001, the district’s population had increased from 535 107 to 560 388 as indicated in table 4a and graph 1a.

Table 4a: Ilembe Total Population (%)

Year Population 1996 535107 2001 560388

Table 4b: Ndwedwe Total Population (%)

Year Population 1996 167404 2001 152495 Source: Stat SA (Census 1996 and 2001)

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Graph 1a: Ilembe Population (%)

580000 560000 1996 540000 2001 520000 Year

Source: Stat SA (Census 1996 and 2001)

Graph 1b: Ndwedwe Population (%)

1996 170000 2001

160000

150000

140000 Year

Source: Stat SA (Census 1996 and 2001)

Ndwedwe Local Municipality is about 1153 square km space according the Census 2001. The average settlement densities were approximately 145 people per square km. The lowest settlement densities occurred around the eastern areas of R614 (i.e. about 50 people per square km) for commercial farming. The slightly higher densities (i.e. 50-100 people per square km) occurred in the north east and west of Ndwedwe. The north-east being the commercial farming area, while the western area was the peripheral tribal area with steep and fragmented topographic conditions. High densities (100-200 people per square km) occurred in the western portion of the municipality. Very high densities (200-300 people per square km) occurred around the tribal areas in the vicinity of R614

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

and in the south-east area of Ndwedwe i.e. in the proximity of the formal development of the Durban Metro. The highest settlement densities (300-462 people per square km) occurred around Ndwedwe Village and P100 from Verulam and Inanda.

3.2.2 Gender Profile

According to Stats SA, Ndwedwe Local Municipality had more females than males both in 1996 and 2001. Ndwedwe Municipality has been characterised by 46% males and 54% female in both 1996 and 2001. In percentage terms the number of females/males has remained constant between the two periods of 1996 and 2001 as indicated in graph 2b and table 5b. Similarly at a district level the females had been dominating the males by a proportion of 53% both in 1996 and 2001 as indicated in table 5a and graph 2a.

Table 5a: Ilembe Gender Profile (%)

Year Males Females 1996 47 53 2001 47 53

Table 5b: Ndwedwe Gender Profile (%) 1996 to 2001 Year Males Females

1996 46 54 2001 46 54 Source: Stat SA (Census 1996 and 2001)

Graph 2a: Ilembe Gender Profile (%)

50 Males 45 Females

40 1996 2001

Source: Stat SA (Census 1996 and 2001)

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Graph 2b: Ndwedwe Gender Profile (%)

50 Males 45 Females

40 1996 2001

Source: Stat SA (Census 1996 and 2001)

3.2.3 Age Profile

With regard to age it is interesting to note that both in 1996 and 2001 the municipality has been dominated by the person between the 15 and 34 age cohort. In percentage terms, the total number of people falling under 13-34 age cohort has remained constant between 1996 and 2001 as indicated by graph 3b and table 6b. Similarly, at a district level the municipality had been dominated by persons in the ages between the 15to 34 cohort between 1996 and 2001 as indicated in table 6a and 3a.

Table 6a: Ilembe Age Profile (%) Year 0 to 4 5 to 14 15 to 34 35 to 64 65+ 1996 12 26 36 22 5 2001 11 25 36 23 5 Source: Stat SA (Census 1996 and 2001)

Table 6b: Ndwedwe Age Profile (%) Year 0 to 4 5 to 14 15 to 34 35 to 64 65+ 1996 13 27 34 20 5 2001 11 28 34 21 6 Source: Stat SA (Census 1996 and 2001)

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Graph 3a: Ilembe Dominant Age group (%)

30 0 to 4 5 to 14 20 15 to 34 10 35 to 64 65+ 0 1996 2001

Source: Stat SA (Census 1996 and 2001)

Graph 3b: Ndwedwe Dominant Age group (%)

35 0 to 4 30 5 to 14 25 15 to 34 20 35 to 64 15 65+ 10 5 0 1996 2001

Source: Stat SA (Census 1996 and 2001)

3.2.4 Education and skills

Both in 1996 and 2001 Ndwedwe Local Municipality had been dominated by the persons who had no schooling as far as the highest level of education is concerned. It is also noticed that the level of such persons have increased between 1996 and 2001 from 17% to 19% as indicated in graph 4b and table 7b. Similarly at a district level, the municipality had been dominated by persons who had no schooling; however these persons had decreased by a proportion of 1% between 1996 and 2001 as indicated in table 7a and graph 4a.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Table 7a: Ilembe Education Profile (%) No Some Complete Year Schooling Primary Primary Secondary Grade 12 Higher 1996 31 23 7 26 11 2 2001 30 20 6 25 15 4 Source: Stat SA (Census 1996 and 2001)

Table 7b: Ndwedwe Education Profile (%) No Some Complete Year Schooling Primary Primary Secondary Grade 12 Higher 1996 36 25 7 24 8 1 2001 39 21 5 22 11 2 Source: Stat SA (Census 1996 and 2001)

Graph 4a: Ilembe Dominant education level (%)

35 No 30 Schooling 25 Some Primary 20 Complete Primary 15 Secondary

10 Grade 12 5 Higher 0 1996 2001

Source: Stat SA (Census 1996 and 2001)

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Graph 4b: Ndwedwe Dominant education level (%)

40 No Schooling 30 Some Primar y 20 Complete Primar y 10 Secondar y 0 Grade 12 1996 2001 Higher

Source: Stat SA (Census 1996 and 2001)

3.2.5 Employment and Unemployment Patterns

Both in 1996 and 2001 periods the unemployment level was higher than employment levels. For instance in 1996 unemployment levels were approximately 66% compared to 34% employment levels, while in 2001 unemployment levels were 56% compared to 44% employment levels. But it is interesting to note that the employment levels have improved by 10% i.e. from 34% to 44% between 1996 and 2001 as indicated by graph 5b and table 8b. Similarly at a district level the municipality’s unemployment levels had been proportionally higher than the employment levels both in 1996 and in 2001; however it is interesting to note that employment levels had increased proportionally by 10% between the same time period as indicated in table 8a and graph 5a.

On the other hand, the Global Insights Database, 2004 recorded that between 1996 and 2004 unemployment rates in Ndwedwe Local Municipality have increased by 4% from 64% to 68%. Similarly at the district level unemployment rates have increased by 4% from 42% to 46% between 1996 and 2004.

Table 8a: Ilembe Employment/ Unemployment Patterns (%)

Year Employment Unemployment Total Labour Force 1996 61 39 100 2001 52 48 100 Source: Stat SA (Census 1996 and 2001)

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Table 8b: Ndwedwe Employment/ Unemployment Patterns (%)

Year Employment Unemployment Total Labour Force 1996 34 66 100 2001 44 56 100 Source: Stat SA (Census 1996 and 2001)

Graph5a: Ilembe Employment and Unemployment Patterns (%)

100 80 60 Employment 40 Unemployment Total 20 0 1996 2001

Source: Stat SA (Census 1996 and 2001)

Graph5b: Ndwedwe Employment and Unemployment Patterns (%)

100

Employment 50 Unemployment Total Labour Force 0 1996 2001

Source: Stat SA (Census 1996 and 2001)

A large number of persons have been employed in the agricultural sector both in 1996 and 2001. But the proportional number of people employed in the agricultural sector has increased from 9% to 13% between 1996 and 2001 as indicated in graph 6 and table 9.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Table 9a: Ilembe Employment by sector (%) Year Sector % of Employment 1996 Agriculture 13 2001 Agriculture 10 1996 Community/ 6 Social 2001 Community/ 7 Social 1996 Construction 3 2001 Construction 2 1996 Finance 2 2001 Finance 3 1996 Manufacturing 13 2001 Manufacturing 11 1996 Transportation 2 2001 Transportation 2 1996 Wholesale/ 4 Retail 2001 Wholesale/ 6 Retail 1996 Gas, Electricity, Water 0 2001 Gas, Electricity, Water 0 1996 Other 56 2001 Other 59 Source: Stat SA (Census 1996 and 2001)

Table 9b: Ndwedwe Employment by sector (%) Year Sector % of Employment 1996 Agriculture 9 2001 Agriculture 13 1996 Community/ 4 Social 2001 Community/ 6 Social 1996 Construction 2 2001 Construction 1 1996 Finance 2 2001 Finance 2 1996 Manufacturing 6 2001 Manufacturing 2 1996 Transportation 2 2001 Transportation 1 1996 Wholesale/ 3 Retail 2001 Wholesale/ 2 Retail 1996 Gas, Electricity,Water 0 2001 Gas, Electricity,Water 0 1996 Other 72 2001 Other 74 Source: Stat SA (Census 1996 and 2001)

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Graph 6a: Ilembe Employment by sector (%)

60 Agriculture 50 Community/Social Construction 40 Finance 30 Manufacturing 20 Transportation 10 Wholesale/Retail 0 Gas, Electricity,Water 1996 2001 Other

Source: Stat SA (Census 1996 and 2001)

Graph 6b: Ndwedwe Employment by sector (%)

80 70 Agriculture 60 Community/Social Construction 50 Finance 40 Manufacturing 30 Transportation 20 Wholesale/Retail 10 Gas, Electricity,Water 0 Other 1996 2001

Source: Stat SA (Census 1996 and 2001)

Similarly, it has been recorded in the Global Insights Database, 2004 that at the district level agricultural sector is the leading sector in offering employment opportunities in 2004. About 43% of the people were employed in the economic sector, followed by community services and then Manufacturing. Again mining is the least sector that offered employment opportunities in the district as indicated by graph 7 and table 10.

Table 10: Ilembe District Employment by sector (%) Comm Agricult Manufa Electrici Constru Transpo Financ unity Househ Year ure Mining cturing ty ction Trade rt e services olds 2004 43.4 0 13.9 0.3 2.7 9 2.3 3.5 16.7 8.2 Source: Global Insights Database. 2004

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Graph 7: Ilembe District Employment by sector (%)

45 40 Agriculture 35 M ining 30 M anufacturing 25 Electricity Construction 20 Trade 15 Transport 10 Finance Community services 5 Households 0 2004

Source: Global Insights Database. 2004

3.2.6 Income Levels

According to the 1996 Census, it important to note that in 1996 Ndwedwe Local Municipality had been dominated by households earning monthly income between R400 and R800. While in 2001 the Ndwedwe Local Municipality had been dominated by households earning no monthly income as indicated in table graph 8b and table 11b. At the district level, both in 1996 and 2001 the municipality had been dominated by households earning between R400 and R800 as indicated in table 11a and graph 8a.

Table 11a: Ilembe Households monthly income levels (%) R1601- R3201- R6401- Year None R1-400 R401-800 R801-1600 3200 6400 12800 R12801+ 1996 16 8 27 29 11 4 2 1 2001 23 11 24 16 9 5 3 10 Source: Stat SA (Census 1996 and 2001)

Table 11b: Ndwedwe Households monthly income levels (%) R1601- R3201- R6401- Year None R1-400 R401-800 R801-1600 3200 6400 12800 R12801+ 1996 23 7 28 28 10 2 1 0 2001 33 11 29 16 6 2 1 1 Source: Stat SA (Census 1996 and 2001)

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Graph 8a: Ilembe Households monthly income levels (%)

30 None 25 R1-400 20 R401-800 15 R801-1600 10 R1601-3200 5 R3201-6400 0 R6401-12800 1996 2001 R12801+

Source: Stat SA (Census 1996 and 2001)

Graph 8b: Ndwedwe Households monthly income levels (%)

35 None 30 R1-400 25 R401-800 20 R801-1600 15 R1601-3200 10 R3201-6400 5 0 R6401-12800 1996 2001 R12801+

Source: Stat SA (Census 1996 and 2001)

3.2.7 Poverty Profile

Ndwedwe is one of the poorest local municipalities within Ilembe District Municipality. This is reflected by the high proportion of people earning no monthly income. About 33% of the people were recorded to be receiving no monthly income (www.kzntopbusiness.co.za). Poverty is a complex phenomenon that is often defined as a lack of access to resources and services. However, the national government currently accounts an average monthly household income of less than R1600 as being the deciding factor. Graph8 and table 11 indicate the number of households with an income of less than R1600 pm.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

The proportion of people living in poverty has increased by 10% between 1996 and 2004 from 59% to 69% in Ndwedwe Local municipality. Similarly, at the district level the proportions of people living in poverty have increased by 10% from 55% to 65% between 1996 and 2004 (Global insights database, 2004). This indicate very high dependency ratio in the area. Therefore in the project section attention would also be given to the actions that the department of Social Welfare and Population Development in dealing with the issue of dependency.

There has been a number of poverty alleviation projects implementation at Ndwedwe that form the basis of previous LED plans such as a sewing project, bakery and community gardens.

3.2.8 HIV/Aids and its impact

As is the case in most areas of the country, HIV/Aids is having a major impact on the population of the area and its resources. Health care facilities are also limited to provincial clinics with communities having to access higher level health care facilities in the Durban Metro.

According to the Municipal Status report (October, 2004) Ilembe District Municipality has an HIV/Aids prevalence rate of 30%. The district and three of the four local municipalities (excluding Ndwedwe), have developed comprehensive HIV/Aids strategy with key intervention programmes listed for implementation. Funding has been provided for the implementation of these strategies.

HIV/Aids have also begun to impact on labour productivity and few firms have developed proactive strategies deal with this issue. In addition to that, there has been a lack of cooperation and coordination amongst the individual businesses to build on the already existing initiatives. HIV/Aids Participatory Appraisal of Competitive Advantage (PACA) in Ilembe District municipality have been used to identify existing support structures around HIV/Aids and to kick-start cooperation between the individual businesses around this matter. The businesses involved Ithala, business tenants and organisations such as Lovelife. Ithala has made available a vacant factory for a programme against HIV/Aids. Four Isithebe companies have already signed up for the programme (Ilembe Economic and Institutional Review, 2005).

According to (Ilembe Economic and Institutional Review, 2005), Ilembe District Municipality has also funded a number of training projects and has given support to local

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

schools and institutions, which have supported the campaign against the spread of HIV/Aids in the district. A brief summary of the Ilembe District Municipality’s activities in its fight against the epidemic is as follows:

The district provided funding to the amount of R35000 for the training of home based care trainers who are volunteers to train others to care for HIV/Aids patients, attend to minor medical conditions for persons who cannot travel to clinics for medical attention. A further R35 000 was provided to fund the training of HIV/Aids counsellors who feely give their time to assist those in need. An amount of R268 641 has been provided to fund the purchase of 2500 Home Based Care Bags with the necessary medical supplies required by the Home Based Care Volunteers. The bags required are specified by the Department of Health. Support in terms of T-Shirts, caps, pamphlets, posters and banners provided to schools and institutions to promote HIV/Aids awareness campaign.

At Ndwedwe Local Municipal level there is an organization or institution called Medical Care Development International (MCDI) that operates in partnership with Ilembe Health District, which is responsible for training the candidates available to undertake home based care particularly for patients who suffer from HIV/Aids related diseases. This organization has presently received funding from Johns Hopkins University Center for Communication Programs to implement an HIV Voluntary Counseling and Testing Project in KwaZulu Natal (KZN), in collaboration with a local NGO, DramAidE.

There is also Ndwedwe District Child Survival Project (NDCSP) that was first initiated by MCDI as a planning grant under USAID/BHR/PVC funding in 1995. This grant supported a two-year planning period and arising from this, a second grant was awarded to support full-scale Child Survival Project activities between 1997 and 2001. The goals of the project are to reduce morbidity and mortality among children less than 60 months of age in the target area and to improve the health status of women of childbearing age by reducing the risks associated with reproduction in the same population. These goals have been addressed through a package of maternal and child health care interventions (including immunizations, control of diarrheal diseases, pneumonia case management, and maternal and newborn care) operating at the facility and community level, within the context of an integrated, coherent and effective District Health System. In 2000, a multi- faceted HIV/AIDS intervention was funded that focused on three types of initiatives: 1) preventing new cases through community and school-based prevention programs; 2)

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

strengthening the capacity of families and communities to meet the needs of orphans and children affected by AIDS; and 3) support and supervision of home-based care for people living with AIDS (PLWA). Diagram 2 represents the conceptual understanding of the HIV/Aids Organizations that have a meaningful role towards the reduction of HIV/Aids

Diagram 2: Ndwedwe HIV/ Aids Organizations

Ilembe Health District

-Training -Resources

Ndwedwe Kwadukuza Ndodakusuka Maphumulo Health Sub- Health Sub- Health Sub-District Health Sub-

District District District

Ndwedwe HIV/Aids Organisations/Institutions: Lethokuhle Women Organisation MCDI Ntaphuka Youth Project Sakhisizwe Youth and Information Sinethembe Youth Organisation Siyaqhubeka Nempilo

3.3 Local Economic Development and Sustainability

This section of the report covers all aspects of the availability of the Municipal LED capacity to drive the whole process of local economic development, and the availability of infrastructural assets to support local economic development of Ndwedwe municipality.

This section commences by firstly, identifying the available natural resources at Ndwedwe Local Municipality, and whether infrastructural assets and human capacity are available.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

3.3.1 Available Natural Resources

Only the east and the north east part of Ndwedwe Local Municipality consists of flat to undulating topography, and the remaining area exhibits steep and fragmented topographic conditions. The nature of topography such as good views presents the potential opportunity for tourism purposes.

According to the Ndwedwe Municipality’s 2004/2005 Integrated Development Plan reviewed for 2005/2006 financial year page 20, a number of mineral deposits are known to occur at Ndwedwe Local Municipality. These include kaolin (which is mined on small scale within the tribal areas), talc and tremolite. On a scale of agricultural potential Ndwedwe have good potential soils towards the western part of the area as indicated in map 3.

Map3: Conservation priority areas of Ilembe District Municipality

Source: Department of Agriculture and Environmental Affairs

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

3.3.2 Infrastructure Assets and Human Capacity

There are problems existing as far as the provision of services and amenities is concerned at Ndwedwe Local Municipality. This is due to the practice of commercial farming as a result most of the areas are settled in traditional, isolated and dispersed settlement patterns. The isolation of settlements in turn creates problems in the attempts of providing appropriate and cost-efficient services and amenities. There is therefore limited provision of facilities for health service, civic and recreational amenities. There is also a lack of tertiary education facilities, adult education and skills training institutions. Therefore the prevailing steep fragmented topographic conditions create difficulties in providing appropriate local economic development of Ndwedwe Local Municipality. In the following sections the report will give attentions to the actions that would need to be undertaken to ensure that infrastructure provision creates linkages between the formal and second economy.

The success of local economic development is dependent on the availability of appropriate and efficient human resources and champions. This applies equally to the municipalities, private sector and community based organizations. With regard to municipalities it is acknowledged that some municipalities are still developing LED capacity with the LED Managers and Officers having been appointed recently (e.g. Ndwedwe Municipality). At present, there is a heavy reliance on private service providers (e.g. èNdondakusuka Municipality and Ilembe District Municipality). The LED Agency will hopefully reduce dependence on consultants and facilitate the development of a team of LED practitioners to lead the district LED programme. The introduction of Gijima KZN and the training (LED Training and PAT) of the LED practitioners in the district is helping to generate interest in LED, build capacity within the district and shape the approach to future LED initiatives. Already, there is constructive dialogue among stakeholders with a number of potential partnership initiatives being mooted. Nevertheless there are a number of NGO/CBOs, Sector Departments, Agencies, and institutions (all identified in the stakeholder section) that play a role in local economic development generally, therefore it is vital that the Ndwedwe Local Municipality take advantage of them.

3.4 Synopsis

The main findings of this section are that Ndwedwe Local Municipality’s population is decreasing due to insufficient development of the area; and lack of employment opportunities in the area. The Ndwedwe local people are currently working and spending their income outside the area. This represents a developmental challenge for 43

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Ndwedwe area. However, there are a number of development initiatives that are being proposed the challenge is to obtain relevant resources that would assist in the implementation of the initiatives. These initiative incudes:

Nodal development Regional museum King Shaka Tourism route Nhlangakazi Holly Mountain New King Shaka Airport Industrial Estates within Ndwedwe Municipality Development of an agri-processing centre/facility

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

SECTION FOUR: SECTOR ANALYSIS

The economic development of Ndwedwe is considered as one of the most important aspects of developing the municipality. In all of the economic activities identified it appears of great importance to protect on the one hand the unique natural environment while on the other hand exploiting the opportunities arising from the various economic sectors. This section commences by analyzing the status quo of each sector.

4.1 Agriculture and Mining Sector Development

According to the census 1996 and 2001 information the agricultural sector is the highest in terms of employment opportunities that are available to the local community. It had been an employer to a proportion of about 13% in 2001 and 9% in 1996 persons compared to the other sectors. These figures reflect a percentage increase in the agricultural employment opportunities between 1996 and 2001 as indicated in table 12 and graph 9.

Table: Ndwedwe Agricultural Employment Opportunities (%)

Year Agricultural Employment Opportunities 1996 9 2001 13 Source: Stat SA (Census 1996 and 2001)

Graph: Ndwedwe Agricultural Employment Opportunities (%)

10 1996 5 2001

0 Agricultural employment Year opportunities

Source: Stat SA (Census 1996 and 2001)

Ndwendwe Local Municipality has an excellent agricultural potential and is suitable for different cropping and animal enterprise practices as indicated in table 14 and 15 below

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

which outlines the agricultural projects that Ndwedwe is currently engaged on. Some areas are allocated for extensive farming (practiced in large tracts of land), semi- extensive farming (practiced in limited arable land due to slope, soil and climatic conditions), semi intensive farming (intensified farming) and intensive farming (low fertility soils) as indicated in map 4. The map also indicates that commercial agriculture is located in the eastern half of Ndwedwe Local Municipality.

Agricultural projects are divided into two. There are those that are aimed at poverty alleviation and on the other hand there are those that are aimed at improving the economic performance of Ndwedwe area as indicated by table 13 and table 14 below.

Table 13: Ndwedwe Poverty alleviation (Under Siyavuna) Projects (2004/2005) Project name Project Type Beneficiaries Participants Budget Imbiwa Irrigation 210 9 R50.000.00 Masakhane Irrigation 310 31 R100.000.00 Khanyisani Irrigation 80 8 R70.000.00 Mshiyeni Irrigation 342 32 R100.000.00 Vukuzakhe Irrigation 225 20 R50.000.00 Ikhwezi Irrigation 80 28 R100.000.00 Masiphakame Irrigation 180 20 R50.000.00 Ukukhanyanyezi Irrigation 60 6 R100.000.00 Ale+Nice Nursery 200 20 R70.000.00 Vukuzenzele Hydroponic 210 21 R70.000.00 Vukuzenzele Irrigation 310 31 R45.000.00 Source: Department of Agriculture and Environmental Affairs

Table 14: Ndwedwe Economic Agricultural Projects (2004/2005)

Project name Project Type Area of Operation Participants Hactres of Land Waterfall Sugarcane Waterfall 11 10ha Sugearcane Production Imbayini Farmers Madumbe Ngcolosi 31 6ha Association Production Ivovo Development Maize Production Shangase 31 6ha Trust Ozwathini spice Paprika Gcwensa 30 41ha Growers Production Lower Sugarcane Sugarcane Mona 11 10ha Seedcane Project Production Noveve Maize Production Makhuluseni 25 11ha Donsabalimi Bean Production Mangangeni 25 2.5ha Ndwedwe Sisonke Poultry Abbattoir Ndwedwe Central 11 100m2 slaughter co-operative 500 chickens per day Msunduze Bakery Mzokhulayo Nyuswa 11 200m2 to bake 5000 bread and 2000 cakes Source: Department of Agriculture and Environmental Affairs

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

There are a number of factors that impact on the type of enterprise practiced in different parts of the area. That is, climate rating, percentage of arable land, the grazing capacity and the veld conditions of Ndwedwe area. These factors are described below:

4.1.1 Climate Rating

Ndwedwe is characterized by the subtropical climate with warm humid summers and mild dry winters. Ndwedwe is only 22km from the coast with an elevated position and sea facing aspect and therefore benefits from the moderating influence of the sea breeze. Ndwedwe enjoys a good average rainfall of 1133 mm per annum (Hawkins 1996, p3). Although rain falls throughout the year the bulk 75% falls in summer months from October to March. There is also a dam called Hazelmere Dam to the south east direction of the municipality which contributes a lot in the irrigational plans of the Ndwedwe Municipality. Hazelmere Dam has an estimated capacity of 25000 cubic metres and constitutes a major potential source of water for agriculture.

Map 4: Ndwedwe Municipality Broad Indicators of Agricultural Activities

Source: Department of Agriculture and Environmental Affairs

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

4.1.2 Percentage of High Arable Land

Percentage of High arable land is a percentage of land that has high potential arable soils. The location of high potential soils within Ndwedwe Local Municipality are indicated in Map 4, as this would assists in practicing cropping enterprise in the areas with high percentage of arable soils that would yield greatest harvest at the end of the day.

4.1.3 Grazing Capacity

Grazing capacity assists in determining the ratio of hectors of land that should be accrued to one animal for grazing purposes. In order to practice correct grazing regimes the grazing capacity should therefore be determined.

4.1.4 Veld Conditions

This is the process of veld conditions examinations, which assist in determining the number of days that the veld can supply food for the animals (i.e. the days in the year that the veld can be grazed before supplementary food can be provided). It is therefore significant that the veld conditions of Ndwedwe Municipality are known for animal enterprise purposes.

Mining Sector Development

Ndwedwe IDP indicates that a trust has been formed to undertake Kaolin mining at Ndwedwe Local Municipality. The Department of Minerals and Energy has made R1 million available for this purpose. The venture will in future produce pottery. There is apparently the potential to mine granite in Ndwedwe which needs to be investigated further (District Municipal Imbizo, 2005).

4.2 Government Sector Development

The Ndwedwe Local Municipality’s government sector is composed of the following existing departments that contribute into creating employment opportunities for Ndwedwe Local Municipality:

The Department of Agriculture The Department of Education

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

The Department of Health The Department of Justice The Department of Social Welfare and Pension The Department of Transport The Ndwedwe Police Station The Ndwedwe Municipality

According to the census information of 1996 and, the government sector is the second highest employer to agriculture, to the local community as indicated in table 15 and graph 10 below. It is interesting to note that the employment opportunities presented by the government sector had increased between 1996 and 2001.

Table 15: Government Sector Employment Opportunities at Ndwedwe (%)

Year Government Sector employment Opportunities 1996 4 2001 6 Source: Stat SA (Census 1996 and 2001)

Table 10: Government Sector Employment Opportunities at Ndwedwe Local Municipality (%)

4 1996 2 2001

0 GovernmentYear Sector employment Opportunities

Source: Stat SA (Census 1996 and 2001)

In determining the strategies and thrusts of intervention it is of high importance that attention is given to the actions that will ensure that the government departments play their role in local economic development of Ndwedwe Local Municipality and their civil servants spend their money in the local economy of Ndwedwe.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

4.3 Tourism Sector Development

Tourism and Recreation is another component of the important economic development of Ndwedwe. The prevailing steep fragmented topographic conditions provide good environment for attracting tourism to Ndwedwe area. But Ndwedwe Local Municipality’s natural environment is in urgent need of attention, rehabilitation, protection and management.

From a tourism point of view, there are a number of proposed initiatives that represent significant tourism potential at Ndwedwe Local Municipality. These initiatives include:

Nhlangakazi Mountain development, which represent a significant cultural and religious attraction. At a present moment the business plan for this area has been drawn up to inform the future development of the area. The King Shaka tourism route development, which will draw tourists entering from King Shaka International Airport to the North Coast and will also allow for accommodation establishments to house additional tourists. At present the route is at its final stages of development. The discussion around the development of a regional museum and a statue of King Shaka is also underway to draw tourist to the North Coast.

The Spatial Development Framework (SDF) identifies the major and minor river valleys, escarpments, mountains; cliff faces, flat hill tops, and other areas identified as being of environmental significance and suggest relevant environmental protection areas. These areas include:

The flat undulating coastal flats covering the eastern and north-eastern parts of Ndwedwe where much of the area is utilized for agricultural purposes and natural vegetation is largely confined to river valleys and excessively steep slopes, A band of undulating landscape located to the west of the coastal flats which is currently used for agricultural purposes mainly.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

4.4 Commerce and Manufacturing Sector Development

According to the census information of 1996 and 2001 the manufacturing sector employment opportunities had decreased between this time period from 6% to 2%as indicated by table 16 and graph 11. This is due to the lack of development of the sector itself within Ndwedwe Local Municipality as a result people are working outside Ndwedwe in areas such as Durban Metropolitan Area. The leakages are also high because most of the people spent their money outside Ndwedwe due to insufficient manufacturing sector development.

Table 16: Manufacturing Sector Employment Opportunities at Ndwedwe (%)

Year Manufacturing Sector Employment Opportunities 1996 6 2001 2 Source: Stat SA (Census 1996 and 2001) Graph 11: Manufacturing Sector Employment Opportunities at Ndwedwe (%)

4 1996 2 2001

0 ManufacturingYear Sector Employment Opportunities

Source: Stat SA (Census 1996 and 2001)

There are initiatives that are underway that may address the issue of unemployment, such as a planned new King Shaka Airport envisaged to replace the present airport. The new airport will be located adjacent to Tongaat between the R102 and the N2. The King Shaka Airport as well as the associated Dube Trade Port will be located approximately 10 km from the South Western boundary of the Ndwedwe Municipality.

There are two opportunity areas that have been identified in the Spatial Development Framework for Ndwedwe’s local economic development. They consist of Ndwedwe Village on the one hand and the area furthest to the east along the P100 in the vicinity of Ezindlovini

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Ndwedwe Village is the principle envisaged potential area for development because it is centrally located. It is a primary node within the area from an administrative, social and economic point of view. Ndwedwe Village is located approximately 10km from its south- western boundary and is easily accessible from Durban Metropolitan Area via P100 and it is easily accessible from the entire municipality. It is located 20km away from the planned airport. The village can accommodate a range of activities such as local manufacturing, benefitiation of agricultural products, administrative and business functions.

The area around Ezindlovini is located on the eastern boundary of the municipality, abutting directly onto the Metro. It is linked to the Durban Metropolitan Area and the R1- 2 via the same P100. It is located about 10km distance from the planned King Shaka Airport. This suggests significant development opportunities. This includes both beneficiatiation of local products, collection and distribution point for local manufacturing, local business, commercial and market activities.

Both these areas therefore are envisaged to provide outstanding opportunities for the local economic development of the Ndwedwe Municipality and for appropriate external investment. There several projects that are presently investigated. These projects include the following:

The Industrial Estates within Ndwedwe Local Municipality, which would service the Dube Trade Port and the King Shaka International Airport, had been discussed and the studies are underway to identify the suitable land. This will allow for job opportunities to arise from the new service industries and provide income to Ndwedwe Local Municipality that is a project consolidate candidate at present. Recent studies by the Provincial Department of Economic Development have indicated that through construction and manufacturing alone approximately 170 000 jobs could be created, with additional 100 000 direct and indirect operating jobs from the airport site. Construction of an agri-processing centre/facility, which will stimulate the growth of class three products for hot, and cold processing to the export market. Ilembe District Municipality and the Department of Economic Development have completed an initial study which shows that an amount of R142 000 000 00 is required to complete the project and organize outgrowing programmes within the rural environment. Ndwedwe have excellent agricultural potential and a range of existing smaller producers. There are also active medium and large producers therefore has the capacity to host a processing centre because it is proposed to offer the following processing options:

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Drying Pureeing of spices and vegetables Washing of fruits, vegetables, medical plants Distilling of essential oils Cooking and pickling of vegetables and spices Packaging and labeling Packhouses Organics.

The IDP suggests that the provision of improved internal linkages and the creation of new internal interceptory points will be important. In general additional commercial activities should be located within the hierarchy of activity nodes, whereby the highest level of commercial activity is expected to be located in the Ndwedwe Village.

At present the municipality accommodates little to no manufacturing activities. It has been suggested that appropriate economic development zones be created in relevant locations, including the provision of appropriate business etc support, to generate new economic opportunities.

4.5 Construction (Housings) Sector Development

The contribution of the construction sector into employment creation has also decreased between 1996 and 2001 according to the census information. In percentage terms table 17 and graph 12 indicate that there has been a decrease by a proportion of 1% on the employment opportunities in the construction sector.

Table 17: Employment Opportunities in the Construction Sector for Ndwedwe (%)

Year Employment Opportunities in the Construction Sector 1996 2 2001 1 Source: Stat SA (Census 1996 and 2001)

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Graph 12: Employment Opportunities in the Construction Sector for Ndwedwe (%)

1.5 1996 1 2001 0.5

0 Year

Source: Stat SA (Census 1996 and 2001)

4.5.1 Housing

Delivering houses to the poor people is the responsibility or a core function of the local municipalities. In 2005 out of 120376 households about 79000 households had a housing backlog at Ilembe District municipality. On the other hand in 2005 about 23500 households out of 27565 households had a housing backlog at Ndwedwe Local Municipality as indicated in table 18 and Graph13:

Table 18: Housing Backlogs at Ndwedwe and Ilembe Municipalities Municipality Total Number of Households (as Housing Backlogs (2005) per 2001 census) Ilembe District Municipality 120376 79000 Ndwedwe Local Municipality 27565 23500

Graph 13: Housing Backlogs at Ndwedwe and Ilembe Municipalities

150000 Total Number of 100000 Households (as per 2001 census) 50000 Housing Backlogs (2005) 0 Ilembe District Ndwedwe Local Municipality Municipality

Source: Department of Housing, 2006

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

At Ndwedwe Local Municipality the following housing plans have been proposed and approved by the Department of Housing aimed at addressing the housing backlogs that exist in the municipality as indicated in table 19.

Table 19: New Conditional Approved Housing Projects for Ndwedwe Rural Areas (2006) Name of the Project Project Type Number of Units Status of the Project Qwabe Rural 700 New

Mavela Rural Housing Rural 1000 New Project Nkumbanyuswa Rural 1000 New Hlophe Rural Housing Rural 1000 New Project Cele Nhlangwini Rural 1000 New Nhlangwini Rural 1000 New Matholamnyama Rural 250 New Source: Department of Housing, 2006

There are a number of factors that impede Ndwedwe Local Municipality’s progress in trying to redress the housing backlogs. These factors include:

Lack of land to build houses and where land is available landowners are charging very high prices. Some landowners are encouraging shack farming as an income generating activity. Lack of institutional capacity to plan for and manage housing projects Lack of funding and the non-alignment of municipal and governmental departments budgeting processes, i.e. there was no MIG allocated for Ndwedwe Local Municipality in 2004/2005 financial year.

4.5.2 Transport

Ndwedwe is isolated and in need of integration into the main stream economy through better and more roads. The main P100 road is the most important of the through routes. It links the village and greater Ndwedwe area within the town of Verulam to the east. There is a sizeable taxi and bus rank on the P100 situated opposite the junction within the main interval road which runs past the Magistrates Court and Post Office.

The P713 through road, which is of a lower order than the MR100, links the village to Osindisweni settlement and Inanda Dam area. It also provides access from the south to the town of Verulam.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

The IDP suggests that at the present moment, all the other routes have remained unsurfaced, only P100 has currently being surfaced. The volumes of traffic running on it justify its upgrading.

4.6 Tertiary services Sector Development

The Ndwedwe Tertiary Services Sector’s proportional contribution towards employment creation has remained constant between 1996 and 2001. The employment opportunities had remained at a proportion of 2%. The following are the factors that had a contribution to this effect.

4.6.1 Economic Resources for Informal, SMME, Commercial and Manufacturing Firms

None of the local municipalities within Ilembe has established a programme to support the informal business sector. However, it is noted that the bulk of the projects the municipalities have implemented deals mainly with the second economy operators. These projects are ad hoc and poorly coordinated with each other. A programme to support and build the capacity of the informal business requires some attention.

Most SMMEs have had very few linkages with larger established businesses. There is a relatively well developed SMME sector along the coastal strip and the inland corridor of KwaDukuza and Mandeni. SMMEs found in the rural hinterland of Ndwedwe and Maphumulo are survivalist in nature and not diversified. There is minimal support from SMME support institutions.

Support to business is mainly limited to that provided through Enterprise Ilembe. This includes preparation of business plans, attracting investment, and offering advice to emerging businesses. Some support to emerging business can be obtained from Valley Trust or the Chief Albert Luthuli Trust. The regional LED strategy recommends the establishment of regional business centres. However, the general lack of business support services, particularly at a local level, remains problematic.

4.6.2 Funding

Both the Ilembe and Ndwedwe Municipalities have aligned their IDP to their LED in terms of the budget. This alignment varies in terms the municipality and is summarised on the

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

table below: Out of the total budget in percentage terms, Ilembe District Municipality has budgeted 3% for Local Economic Development, which was approached through economic growth and partnership establishment. On the other hand Ndwedwe Local Municipality has budgeted 0.1% for Local Economic Development in 2004/2005 financial year, which was approached through both economic growth and poverty alleviation.

Ndwedwe LED projects therefore focussed on developing basic economic infrastructure. These projects included the development of viable co-ops, low level sewing, bakery, community gardens, a business plan for tourism development around Nhlangakazi, kaolin for pottery, and developing support services. The municipality is one of the sources funding for LED activities. This is reflected in the IDP’s budget for LED activities in 2004/2005 financial year as indicted in table 20.

Table 20: Budget for Local Economic Development Municipality LED Budget % (LED) Financial Year Ilembe District Municipality -R8.5 million of R283 million 3% 2004/2005 total budget plus R2 million from IDC to Enterprise Ilembe Ndwedwe Local Municipality -R380000 of R56 million 0.1% 2004/2005 Source: Ndwedwe IDP Review 2004/2005

Municipal Infrastructure Grant (MIG) is another source of funding that is aimed supporting municipal capital budgets and to fund municipal infrastructure and to upgrade existing infrastructure, primarily benefiting poor households.

A R15, 6-billion municipal infrastructure grants that was aimed at fast-tracking improved service delivery from municipalities over the next three years was launched by the minister for provincial and local government, Sydney Mufamadi, on 12 August 2004. The grant will allow government to expand and improve the quality of service delivery relating to water provision, sanitation, roads, solid waste and lighting – projects incorporated in the Expanded Public Works Programme, a job creation programme using labour-intensive construction methods. The grant is therefore aimed at encouraging economic development at municipal level and improving service from local government.

Some R4,4-billion has been allocated for the 2004/2005 financial year for municipalities to invest in basic services and infrastructure. This amount will increase to R5, 2-billion next year and to R6-billion for the 2006/2007 financial year. The Municipal Infrastructure Grant will simplify the transfer of funds to the various municipalities by consolidating funding from government to local authorities. 57

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Table 21 indicates that out of R5.2 Billion that is allocated for 2005/2006 financial year about R66 991 000 is allocated for Ilembe District Municipality while nothing was allocated for Ndwedwe Local Municipality during the same financial year. On the other hand, out of R6-billion for the 2006/2007 financial year about R69 754 000 is allocated for Ilembe District Municipality and R8 201 000 is allocated for Ndwedwe Local Municipality.

Table 21: MIG Allocation for Ilembe and Ndwedwe Municipalities Financial Year Municipality 2005/2006 2006/2007 Ilembe R66 991 000 R69 754 000 Ndwedwe R0 R8 201 000 Source: MIG

4.7 Informal and Other Sector Development

As far as the informal sector is concerned, there are number of people involved. Informal sector activity is concentrated mainly around Ndwedwe Taxi and Bus Rank located at Ndwedwe Village and in rural areas where some households’ income comes from private activities such as subsistence farming, arts and crafts and other hand work undetermined as yet. This sector had been constituting a highest proportion of employment opportunities even than that of the agricultural sector between 1996 and 2001. It is interesting to note that the opportunities had proportionally increased between 1996 and 2001 as indicated in table 22 and graph 14.

Table 22: Employment Opportunities in the Informal and Other Sectors for Ndwedwe (%) Employment Opportunities in the Informal and Other Year Sectors 1996 72 2001 74 Source: Stat SA (Census 1996 and 2001)

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Graph 14: Employment Opportunities in the Informal and Other Sectors for Ndwedwe (%)

73 1996 2001 72

71 Year

Source: Stat SA (Census 1996 and 2001)

4.8 A Bird’s Eye View Of The Key Thrusts Of Intervention

4.8.1 Ndwedwe Node

Ndwedwe node is one of the primary nodes with Ndwedwe Municipal area, which at the moment comprises a number of opportunities which will assist in bolstering the local economy of the area. These opportunities include the following:

The recently tarred road (i.e. P100) Some of the departments’ offices such as the department of agriculture and the municipal offices The taxi rank Informal markets around the taxi rank Few commercial shops near the taxi rank Commercial Farming areas Magistrate court Police station Clinic school

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Nevertheless, there is a lot of work or projects that could be undertaken at Ndwedwe node that would assist in attracting both private and public investment into the area. These projects are infrastructural, developmental and commercial in nature and are listed below:

Provision of housing including Electricity connections and Water connections Paving of the internal roads system Development of supermarkets Development of a Chamber of Commerce Development of a business service centre Development of the Community Library Development of a fresh produce market area Development of a gallery and a museum Development of a business resource centre

4.8.2 Ezindlovini Node

Ezindlovini is Ndwedwe Local Municipality’s future envisaged node acknowledged in the latest Spatial Development Framework. Ezindlovini node is envisaged because of it close proximity to Dube Trade Port is Located at La Mercy 30 km north of Durban and is located to the south easterly part of Ndwedwe Local Municipality. Dube Trade Port is one of the biggest Provincial Initiatives in KwaZulu Natal that are aimed at boosting the provincial economy through national and international linkages.

It is also envisaged that the Dube Trade Port will be an integrated logistic platform, which is aimed at:

Expanding tourism within KZN by providing an international airport (i.e. the King Shaka Airport) which would assist in creating enhanced level of service to move time sensitive, value added manufactured goods and perishables to major world market. Stimulating growth in freight with the focus on export of perishables, automotive components, textiles, clothing and electronics Growing targeted industrial and agricultural sectors

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Ezindlovini Node is linked to the Dube Trade Port through P100, which has been recently paved. The projects that are envisaged for this node are the ones that will further encourage the linkages between the node itself and the Dube Trade Port, which has vast opportunities as outlined in the preceding sections. The projects include:

Development of agri-processing industries and other industrial estates that would service the Dube Trade Port. Development of the scrap metal recycling collection point Development of the medicinal plant or muthi industry processing centre Development of canning factories/industries

4.8.3 Qinisani Node

Qinisani node is a well located node, located at a central position of Ndwedwe Local Municipality and at the intersection of the two main corridors (i.e. p100 and R614) within Ndwedwe Local Municipality. P100 corridor links Ndwedwe Local Municipality to the south (i.e. Nanda, Ntuzuma, and EThekwini Metropolitan) and north (i.e. Maphumulo) of Ndwedwe Local Municipality, while R614 links Ndwedwe Local Municipality to the areas on the east (i.e. Wartburg) and to the west (Kwadukuza Municipality) of Ndwedwe Local Municipality.

Qinisani node comprises a number of opportunities that needs to be developed further in order to maximise their impact on the local economy. These opportunities include the following:

The school The informal taxi rank Micro enterprises and tuck shops Subsistence farmers Sports field Police station Tarred road

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

There are a number of projects that needs to be undertaken that would assist in realising a maximum impact of the stakeholders in the local economy of Ndwedwe Local Municipality. These projects are:

Installation of water connections Installation of electricity connections Development of a fresh produce market Formalisation of the taxi rank Development of a goat breeding centre

4.8.4 Bhamshela Node

Bhamshela is located on the western part of Ndwedwe Local Municipality. It is linked to Wartburg by R614. Bhamshela is a very busy node however, very informal. But it comprises of some formal structures which can be currently viewed as opportunities that should be harnessed for the further development of the node. These structures include:

Under formal structures there is the Multi-Purpose Centre, which comprises of Home Affairs, Department of Agriculture, Department of Welfare, there is a formal taxi rank, bottle store, hardware, photocopying shop, restaurants, and a petrol filling station. Under informal structures there are informal markets ( selling food, fruits and vegetables, blocks, timber)

The projects that would need to be undertaken are:

Formalising the rest of the node Providing shelter for informal traders

4.8.5 Mkhukhuze Node

Mkhukhuze node is located on the southern part of Ndwedwe Local Municipality. It is composed of dispersed both formal and informal settlements due to undulating topography. It is linked to Ethekwini Metropolitan areas further south through the main

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Ndwedwe road P100, which has recently been paved. This southern linkage with Ethekwini Metro present a challenge to the Municipality because most of the Ndwedwe people commute on daily basis to Ethekwini for work purposes. The challenge is to take advantages of the existing opportunities in the area that will result to employment creation for people staying in the vicinity of Mkhukhuze, Ndwedwe and other nodes.

The opportunities that have been identified are:

There is Mkhukhuze River, which is viewed as the source of water for the area and can be exploited even further to attract tourist into the area. Kaolin mining that is currently taking place on a small scale basis and is not mined in an appropriate manor. Timber plantations that are also practiced on small scale basis

The potential projects would be as follows:

Installation of water connections from Umkhukhuze River to the surrounding communities as they currently get water directly from the river. Installation of electricity connections to the surrounding communities. Development of Timber Processing Centre Capacity building and shelter provision for the people undertaking kaolin mining.

4.8.6 Ashville Development Node

The Ashville Development Node is located in the north east quadrant of the municipality and is located along the R74 from Stanger to Kranskop. The spatial development framework identifies Ashville as an important node and development opportunities identified includes:

Upgrading of the taxi rank and provision of trading facilities; Provision of business sites and business support services with a focus on agriculture; Development of a craft programme focusing on quality craft and collection centre.

4.8.7 WARD 14 AND 15 (Kwazini)

Kwazini area is situated on the south eastern part of Ndwedwe Local Municipality. Kwazini is characterised by dispersed settlements. Kwazini relates very well with the areas on the southern boundary of Ndwedwe Local Municipality such as Thekwini Metro and

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

the ones on the south eastern part such as the envisaged King Shaka Airport. This is due to the fact that it is surrounded by the two legs of the main road P100, with one leg going to Inanda and the other one going to Verulam.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

SECTION FIVE: SWOT ANALYSIS

This section of the report outlines the overall strengths, weaknesses, opportunities and threats that Ndwedwe Local Municipality is comprised of.

5.1 Strengths

It is relatively close to major cities and towns in the province Location between Africa’s two great ports and its excellent transport infrastructure. A diverse and rich cultural heritage has potential broad international appeal. International and local recognition and interest in King Shaka and Zulu culture and history. High concentration of prime agricultural land in the hands of large commercial sugar cane farmers The N2 corridor from Durban to Maputo, which already transports more than 1m tourists per year through the Ilembe Region. Commercial Farming areas in the eastern part of the municipality Subtropical climate conducive to high agricultural yield Proximity of the municipality to the sea High percentage of arable land Kaolin mining that is currently taking place Recently surfaced road ( P100) The municipality is capacitated with the appointment of an LED Officer. Existing agricultural land Minerals Arts and Craft potential Good weather Close proximity to EThekwini Municipality The existing agricultural potential The taxi rank and market stores Farming equipments handed out to the community by the municipality The already existing community facilities such as schools, halls, clinics and houses Community radio station Some of the areas are already serviced with electricity

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

5.2 Weaknesses

Roads and services need upgrading and regular maintenance to reach tourist attractions and this requires high levels of commitment and resources from municipalities The uncertainty surrounding the proposed development of the King Shaka International Airport on the Southern border of the region. The backlog in the provision of basic services such as water, sanitation, electricity and housing, especially in the rural areas and informal settlements The municipality does not have readily access to land for development. Concerns over the ability to maintain a relatively pristine environment necessary for successful tourism initiatives and further high-income residential developments. The formal economy or lack of effective demand, inadequate infrastructure, land tenure and business premises, lack of inward and outward communication and marketing information. Lack of reliable infrastructure such as roads, electricity and water Lack of communication due to poor infrastructure Local SMMEs are not geared to take advantage of emerging business and tender opportunities offered by government departments and outsourcing opportunities by established business. Lack of start-up capital and no frame-work for access to financial resources Lack of access to adequate and appropriate services Dependence on neighbouring economies like Durban and Richards Bay. Economic growth is hampered by income leakages to these established economies. The Department of Art, Culture and Tourism does not have plans for the Ndwedwe Local Municipality There are no proper structures to co-ordinate LED activities and strategies that involve the public and private sector, and civil society. There is very little synergy between the different stakeholders, both private-private and public-private. Poverty incidence within the municipality Equipments to practise farming are not sufficient Lack of training and skills development centres 10% increase in the proportion of the households earning no income ( as per census 1996 and 2001) Steep fragmented topographic conditions resulting into isolated settlement pattern Shortage of tourism, manufacturing, and construction sector development resulting in decreasing employment opportunities. Housing backlogs 66

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Lack of the programmes to support both formal and informal business sector development Education and skills development programmes are weak Lack of communication between the SMMEs and the established businesses. Lack of health facilities, people have to travel long distances to reach the nearest facility. Under utilization of land Lack of housing delivery and the existing are leaking and vulnerable to explosion Lack of co-ordination within government departments Lack of petrol filling stations

5.3 Opportunities

Proposed link between Ndwedwe and Maphumulo Municipality In place poverty reduction agricultural projects and agri-processing projects Partnership initiative between the Department of Health and the MCDI to deal with HIV/Aids There HIV/Aids organisations already established There is a potential to undertake kaolin mining Increasing employment opportunities in agriculture, government, and informal sectors A number of housing projects have been approved for implementation in the present financial period and infrastructure MIG allocated for Ndwedwe in the 2006/2007 financial period (i.e. R8 201 000) 0.1% of the municipal budget is allocated for LED activities. Investors keen to fund Eco-Tourism projects Department of Arts, Culture and Tourism keen to fund a good LED relate projects There are opportunities to diversify agricultural activities There are opportunities to expand the markets such as arts and craft (i.e. bead work and pottery), tourism (i.e. Nhlangakazi mountain, the stone of Ndikimba, Giyani, Nsuze and Coby Hill Lodge) There is sufficient thresh hold population to support the development of the shopping centre. The growth and development of young contractors due to the upgrading of roads that is currently taking place There already formed organisations across all the economic sectors targeting economic growth objectives The envisaged Dube Trade Port and the King Shaka Airport

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Section departments have proposed services to be rendered at Ndwedwe Local Municipality Mining opportunities such as kaolin mining

5.4 Threats

Concerns with the proposed rural housing projects and the ability of the infrastructure to cope. HIV/AIDS represents a serious economic threat throughout the area. HIV/AIDS is a major concern, as it has begun to visibly impact on labour productivity. The general lack of communication, networking and linkages between businesses is a matter for concern and emerging enterprises are not being integrated into the local mainstream economy. Lack of coordination amongst all stakeholders in the local economy of Ndwedwe, which kills the economy Ndwedwe people do not have the relevant skills required in the employment opportunities available in the area and a result labor is imported from the other areas and Ndwedwe people end up moving out of the area for employment opportunities. Skilled people prefer working in big cities due to the underdevelopment of Ndwedwe. Crime is an issue Ndwedwe experiences natural disasters such as hail which destroys their residential structures Political differences hinder the development of Ndwedwe Local Economy.

5.5 Guidelines into Strategy Formulation

Having done the situational analysis, the next step is to formulate LED strategies. The main issues that arose from the situational analysis in the preceding sections are the, economic isolation of the municipality, lack of SMME development programmes and lack of capacity building programmes for LED, lack of tourism, agricultural, manufacturing and commercial sector development initiatives.

The key strategies that deserve some attention in the next section are

1. Capacity Building for LED Strategy 2. BEE/SMME Strategy

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

3. Tourism Strategy 4. Agricultural Strategy 5. Commerce and Industry Strategy 6. Manufacturing Strategy 7. Economic Integration Strategy

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

SECTION SIX: THE 2011 VISION OF NDWEDWE LOCAL

MUNICIPALITY

By 2011 Ndwedwe would be characterised by robust and viable Local Economy. With all the important sectors such as agriculture, tourism, manufacturing, mining, construction, finance and government sectors playing a significant role in bolstering local economic development. Both the informal and formal emerging (SMME) and established businesses would have a stake in local economic development of the area.

Capacity building is one of the factors that constitute well developed local economy, therefore by 2011 Ndwedwe Municipality would be characterised by a large number of skilled workers, and capacitated BEE/SMME firms. This would have a positive impact on the incomes of the population resulting into positive saving patterns that would further reduce the flight of capital from Ndwedwe Local Economy.

On the other hand, economic integration is essential in promoting local economic development. The following are the factors driving integration:

Good Transport systems, which assist in the movement of goods and people, Improvement in technology, which advances human production, The channels of communication need to be opened, Geographical integration of the municipality through the development of the nodes and corridors.

By 2011 Ndwedwe municipality’s transport systems, technology and communication channels would have been advanced to economically integrate the municipality to the surrounding areas. In order to realise that vision the focus would be on making innovations and investments that would bring about improvements in technology, transport, communication, and that would promote corridor and nodal development within Ndwedwe Local Municipality.

By 2011 the Industrial Estates within Ndwedwe Local Municipality would have been developed, which will service the envisaged Dube Trade Port and the King Shaka

International Airport. This would allow for both the arise of job opportunities and rateable income to Ndwedwe Local Municipality.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

The service to the Dube Trade Port and the King Shaka International Airport by the Industrial Estate would range among the variety of opportunities availed in the Dube Trade Port area. The preceding studies undertaken for the Dube Trade Port had indicated a variety of the opportunities in the Dube Trade Port. Some of the important opportunities are:

Dube Trade Port Opportunities Assessment of relevance to Ndwedwe Local Municipality  Trade Zone construction, property  High relevance development and management  Construction of facilities and  High relevance staffing for delivery of vital Trade Zone and industry support services – i.e. government support services/ one-stop shop and agro- perishables support centre  Construction, property  High relevance development and management of core facilities including Cargo Terminal, Perishables Centre, Cyber port and Value-added Logistics Park Construction, property development and management of general Trade Zone infrastructure  Construction and management of  High relevance specific ventures (e.g. MRO) in conjunction with private sector investors  Construction and management of  High relevance own facilities (e.g. self-built warehouse in Value-added Logistics Park)  Customization of rented/prebuilt  Medium relevance facilities  Potential for bonded  High relevance manufacturing for variety of sectors such as electronics, auto, food processing, craft, clothing and textiles.  Transport, retail and business  Medium relevance services  Clustering opportunities  Low relevance  Attractive office environment  Low relevance  Remote printing- Electronic receipt  Low relevance

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Dube Trade Port Opportunities Assessment of relevance to Ndwedwe Local Municipality of newspaper, magazine or textbook materials from overseas publishers.  Packaging service provision for  High relevance product manufacturers and tailored services for import/export.  Cell phone diagnostics and repair  Low relevance operations for the domestic and African market linked into central cell phone distribution and sales hub in bonded environment.

These opportunities will attract the foreign investment needed and will create a highly conducive environment for multinational companies to do business at both Ethekwini and Ilembe Municipalities, which in turn would result in economic growth of the municipality. The challenge is therefore to normalize the cost of doing business and address skills shortages.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

SECTION SEVEN: LED STRATEGIES AND OBJECTIVES

OF NDWEDWE LOCAL MUNCIPALITY

The purpose of this section is to outline the strategies and objectives that would assist in achieving the 2011 vision on the local economy of Ndwedwe Local Municipality. There are seven strategies that have been identified, each followed by objectives, programmes and projects. These strategies are:

Strategy ONE: Capacity Building Strategy

Objective 1.1: To improve on the impact of government initiatives on local economic development of Ndwedwe Local Municipality. Objective 1.2: To enhance Public/Private Partnership in the development of the local economy. Objective 1.3: To fully engage the local organisations in the process of economic development of Ndwedwe Local Municipality.

Strategy TWO: BEE/SMME Strategy

Objective 2.1: To ensure the engagement of BEE/SMME businesses in the local economic development process. Objective 2.2: To facilitate information sharing between the BEE/SMME firms and the established businesses. Objective 2.3: To fast-track the development of small businesses in the banking sector.

Strategy THREE: Tourism Strategy

Objective 3.1: To ensure awareness of the tourism opportunities available at Ndwedwe Local Municipality.

Objective 3.2: To encourage both formal and informal investors into the tourism sector.

Objective 3.3: To exploit the existing tourism potential so as to attract tourists into Ndwedwe Local Municipality.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Strategy FOUR: Agricultural Strategy

Objective 4.1: To link Ndwedwe local producers to markets. Objective 4.2: To increase agricultural productivity. Objective 4.3: To diversify and increase agricultural opportunities for farmers while promoting sustainable agriculture and sound environmental management.

Strategy FIVE: Commerce and Industry Strategy

Objective 5.1: To facilitate the process of business establishment, maintenance and management at Ndwedwe Local Municipality. Objective 5.2: To create local market outlets.

Strategy SIX: Economic Integration Strategy

Objective 6.1: To increase efficiency and accessibility. Objective 6.2: To unlock communication channels. Objective 6.3: To increase investment into Ndwedwe Local Municipality. Objective 6.4: To retain income within the local economy.

Strategy SEVEN: Information Availability Strategy

Objective 7.1: To monitor economic trends of Ndwedwe Local Municipality and produce up-to-date socio-economic information suitable for management and policy decisions for Ndwedwe Local Municipality.

Objective 7.2: To assess information needs and set the priorities. Objective 7.3: To ensure the availability of information systems.

Strategy EIGHT: HIV/Aids and Poverty Alleviation Strategy

Objective 8.1: To identify the projects that are HIV/Aids and poverty related. Objective 8.2: To ensure the implementation of the Ndwedwe Local Municipality’s poverty alleviation projects that would indirectly impact positively on HIV/Aids infection.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

Objective 8.3: To access funding for the implementation of the HIV/Aids and poverty alleviation projects.

Strategy NINE: Institutional Arrangements

Objective 9.1: To improve business service provision Objective 9.2: To monitor business service Objective 9.3: To improve accountability of the municipality Objective 9.4: To enforce Private Public Partnerships Objective 9.5: To source enough funds for business establishment and operation

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

SECTION EIGHT: PROGRAMMES AND PROJECTS OF NDWEDWE LOCAL MUNICIPALITY

In this section of the report strategic actions and objectives are translated into programmes and projects. There have been a number of programmes and projects that has been identified that their implementation would assist in achieving the 2011 vision of Ndwedwe Local Municipality discussed in the earlier sections. The following table outline these programmes and projects.

The projects that are identified are further prioritised according to their importance in developing and addressing economic challenges at Ndwedwe Local Municipality. The priority list comprises of 10 activities that their implementation would result in unlocking economic opportunities that exist in the area. The priority activities are focussed mainly on capacity building, grooming of SMEE/BEE firms and the further development and attractions of the big businesses into the area.

Capacity for LED Implementation

One of the most serious constraints experienced by the municipality is the necessary capacity to implement LED projects and programmes. The central function of the LED unit in the municipality is to facilitate economic opportunities by bringing private sector and public sector role players together. Ndwedwe experiences a serious lack of infrastructure and entrepreneurs. The LED officers should identify economic opportunities, identify potential entrepreneurs that can realise the opportunities and then ensure that the necessary public sector infrastructure and services are available to support the businesses in their endeavours.

In order to fulfil its task successfully, the municipality requires:

Suitably qualified and experienced LED personnel that are able to drive the facilitation task; An adequate number of personnel; and The necessary office and communication mechanism that enables the personnel to fulfil their tasks.

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

The proposed organisation structure that the municipality should strive to implement with respect to LED is illustrated in the organogram below.

Municipal Manager

Other line and Planning and

staff functions Development Manager

LED Manager Planning and 2 Qualified Manager and Personnel Personnel

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

OBJECTIVES ACTIVITIES NDWEDWE NODE BHAMSHELA & PRIORITY TIME STRATEGIES QINISANI NODE FRAME 1.1 improve government impact 1.1.1 Training of entrepreneurs by SETA internships  Short Term with departments and the municipalities 1.1.2 Applications for access to funding for LED by MIG,  Short Term 1. Capacity building strategy Gijima and DACT 1.2 Engage local organizations 1.2.1 Establishment and training of the coops   Short Term 1.2.2 Registering local organizations  Short Term 2.1 Engage BEE/SMME firms 2.1.1 Identify outsourcing opportunities for BEE/SMME  Short Term firms 2. BEE/SMME strategy 2.2 Fast-Track the development of small 2.2.1 Application for bank SETA flagship training  Short Term business in banking sector voucher 2.2.2 Development of a sewing /clothing industries   Short Term 3.1 Ensure awareness on tourism 3.1.1 Preparation of the marketing plan opportunities 3.1.2 Tourism Development Feasibility Studies 3.2 Encourage formal/informal investors 3.2.1 Upgrading of infrastructure/ electricity/roads (as   Long Term per IDP) 3. Tourism strategy 3.2.2 Installation of an electricity sub station (as per IDP)  3.3 Exploit tourism potentials 3.3.1 Undertaking of EIAs the environmentally sensitive  Short Term areas such as Ward 14 and 15. 3.3.2 Art and Craft bead work development   Short Term 3.3.3 B&B and cultural village at the Holy Mountain 4.1 link producers to the markets 4.1.1 Establishment of a fresh produce market   Short Term 4.1.2 Development of agri-processing industries at Ezindlovini node and other industrial estates that would service the Dube Trade Port. 4.1.3 Development of canning factories/industries at Ezindlovini node 4. Agricultural strategy 4.2 Increase agricultural productivity 4.2.1 Registering the farmers. Application for access to  Short Term funding for Gijima for the compilation of the Agricultural Development Plan, Integrated Development Plan, Nodal Plan for Bhamshela, Ndwedwe, Qinisani, Mkhukhuze Nodes. 4.2.2 Improve farm support from the Department of Agriculture and Environmental Affairs 4.3 Diversify agriculture opportunities 4.3.1 Development of the medicinal plant or muthi  Medium Term industry processing centre at Ezindlovini node 4.3.2 Fish Farming   Medium Term 4.3.3 Spice growing  Medium Term 4.3.4 Bee Farming  Medium Term 4.3.5 Dip Tanks  Medium Term 4.3.6 Cattle camps  Medium Term 4.3.7 Nursery for traditional herbs  Medium Term 4.3.8 Development of a goat breeding centre at Qinisani  Medium Term

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

OBJECTIVES ACTIVITIES NDWEDWE NODE BHAMSHELA & PRIORITY TIME STRATEGIES QINISANI NODE FRAME node

5.1 Facilitate business establishment, 5.1.1 Development of light industrial hives at Ndwedwe  Short Term maintenance and management and Bhamshela Nodes 5.1.2 Development of a shopping centre/Supermarket   Short Term 5.1.3 Establishment of the scrap metal recycling collection point at Ndwedwe node. 5.1.4 Lime mining  Short Term 5. Commerce and industry 5.2 Create local market outlets 5.2.1 Building of the informal market stalls at the taxi  Short Term strategy rank 5.2.2 Petrol station and Bio-Diesel station  Medium Term 5.2.3 Formalization of the taxi rank at Qinisani node 5.2.4 Formalizing the rest of Bhamshela node 5.2.5 Providing shelter for informal traders at Bhashela node 6.1 Increase efficiency and accessibility 6.1.1 Focus development around the primary and secondary nodes 6.2 Unlock communication channels 6.2.1 Building of strategic roads between Ndwedwe and  Long Term Maphumulo (as per IDP) 6.2.2 Building of strategic road between Tongaat and Pietermaritzburg 6.3 Increase investment 6.3.1 Provision of housing including electricity  Long Term connections and water connections at Ndwedwe node 6. Spatial Economic integration (as per IDP) strategy 6.3.2 Paving of the internal roads system at Ndwedwe node (as per IDP) 6.3.3 Development of Community Halls at Ndwedwe   Long Term node (as per IDP) 6.3.4 Development of the Multi-Purpose Centre at Ndwedwe node (as per IDP) 6.3.5 Development of the Post Office at Ndwedwe node  Long Term (as per IDP) 6.3.6 Development of the Community Library at  Long Term Ndwedwe node (as per IDP) 6.3.7 Development of a Sports Field at Ndwedwe node   Long Term (as per IDP) 6.3.8 Development of a fresh produce market area at   Short Term

Ndwedwe node 6.3.9 Development of a gallery and a museum at Ndwedwe node 6.3.10 Development of a youth development centre (as   Long Term per IDP)

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

OBJECTIVES ACTIVITIES NDWEDWE NODE BHAMSHELA & PRIORITY TIME STRATEGIES QINISANI NODE FRAME 6.3.11 Development of an art development centre  Medium Term

7.1 Produce up-to-date information 7.1.1 Establishment of the business people information directory 7.1.2 Development of a business resource and service  Short Term centre at Ndwedwe node 7. Information availability 7.1.3 Establish business information centres at all the strategy nodes 7.2 Assess information needs 7.2.1 Undertake a socio-economic baseline data study 7.3 Ensure availability of information 7.3.1 Development of a broacher which will market the systems local economic activities

8.1 Identify HIV/Aids and poverty 8.1.1 Register HIV/Aids organizations (as per IDP)  Long Term alleviation based projects 8.1.2 Development of an HIV/Aids Hospice (as per IDP)  Long Term 8.2 Ensure the implementation of HIV/Aids 8.2.1 Installation of water connections at Qinisani node   Long Term 8. HIV/Aids and poverty alleviation and poverty alleviation based projects (as per IDP) 8.2.2 Installation of electricity connections at Qinisani   Long Term node (as per IDP) 9.1 To improve business service provision 9.1 Establishment of chamber of commerce  Short Term

9.2 To monitor business service 9.2 Establishment of the forum

9. Institutional Arrangements 9.3 To improve accountability of the 9.3 Capacity building and municipal organization municipality

9.4 To enforce Private Public Partnerships 9.4 PPP establishment for the development of a  Short Term shopping centre. 9.5 To source enough funds for business

establishment and operation

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #1.1.1 PROGRAM TYPE (S)Capacity Build Short Description of the Project

Facilitate training of entrepreneurs by SETA internships with departments and the municipalities Expected Results Target Group (s)  Improved service of entrepreneurs  The youth  Promotion of small business  Existing entrepreneurs sector represents a growth in the  Unemployed persons local economy of Ndwendwe  Capacity building of entrepreneurs Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitate Seta engagement in the municipal area Existing entrepreneurs Beneficiaries SETA Funders and accreditors Existing Businesses Receivers of funding and take up unemployed

Prerequisites: Risk factors:  Establishment of a business  Accessing of SETA discretionary information centre funds  Identify existing and developing  SETAs response to the initiative entrepreneurs Estimated Costs:

 R20 000 Municipal funding to facilitate engagement with SETAs and provision of workshops, discreditionary funding application  Training and capacity building funding to be delivered

Time of implementation: Time to impact: Within 2006/07 financial year Medium to long term

Outputs:

 Training programs and workshops  Better skilled people

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #1.1.2 PROGRAM TYPE (S)Capacity Building Short Description of the Project

Application for access to funding for LED by MIG, Gijima, DACT for the projects identified

Expected Results Target Group (s)  Improvement of infrastructure  Ndwendwe Local Municipality  Improved quality of service and the residents of the delivery municipality  Job creation  Implementation of LED projects Possible stakeholders Possible contribution to the project: Ilembe District Municipality Support the projects in principle Ndwendwe Local Municipality Facilitate application Private Consultants Compile application

Prerequisites: Risk factors:  Draw up business plans for  Unsuccessful application and non various projects project implementation due to  Draw up funding proposals funding/resource restriction Estimated Costs: Facilitation of application to be made Limited direct cost implications due to consultant work on risk in order to undertake project implementation

Time of implementation: Time to impact: Within 2006/07 financial year 2006/07/08 and onwards

Outputs:  Approved LED projects and implementation  Employment opportunities generated

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #2.1.1 PROGRAM TYPE (S)BEE/SMME Short Description of the Project

Identification of outsourcing opportunities for BEE/SMME Firms

Expected Results Target Group (s)  Developed and registered  Existing BEE/SMME businesses BEE/SMME businesses  The youth  Link between BEE/SMME businesses with larger established businesses Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitation of the project Valley Trust & Chief Albert Luthuli Provide support for emerging businesses Trust SEDA Support to BEE/SMME firms to access finance NGO Training/skills development programs Prerequisites: Risk factors:  Preparation of business plans  Lack of business support at a local  Compilation of a database for level BEE/SMME businesses  Establishment of a business support centre Estimated Costs: Engage with industries, identification of outsourcing opportunities and liaise with local SMME. Estimate R20 000

Time of implementation: Time to impact: Within 2006/07 financial year Short - Term

Outputs:  Updated database of BEE/SMME businesses  Registered and well developed businesses

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT # 2.2.1 PROGRAM TYPE (S) BEE/SMEE Short Description of the Project

Application for bank Seta flagship training voucher

Expected Results Target Group (s)  Skills development for SMEE  SMME businesses business employees

Possible stakeholders Possible contribution to the project: Bank SETA Issue training vouchers Ndwendwe Local Municipality Register SMEE business SMEE business Application for vouchers

Prerequisites: Risk factors:  Registration of SMME’s  Compile a database of all existing SMME’s Estimated Costs: R20 000 Municipal funding to facilitate workshops and registration of SMEE businesses

Time of implementation: Time to impact: Within 2006/07 financial year Short - Term

Outputs:  Increased levels of investment in education and training in the labour market

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #2.2.2 PROGRAM TYPE (S) BEE/SMEE Short Description of the Project Development of a sewing / clothing industries

Expected Results Target Group (s)  Increased employment  The youth opportunities  Unemployed  Local economic development of  Women Cooperatives Ndwendwe Municipality  Attract private investors Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitate application Existing Entrepreneurs Beneficiaries Private Investors Beneficiaries and take up unemployed Private Consultants Compile business plans and applications for funding Prerequisites: Risk factors:  Identification of development land  Undertaking feasibility study  Preparation of business and financial plans

Estimated Costs Establishment of cooperatives and accessing of funding. R60 000 per cooperative

Time of implementation: Time to impact: Within 2006/07 financial year Short - Term

Outputs:  Increased investments into Ndwendwe local Municipality  Creation of local market outlets

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #3.3.1 PROGRAM TYPE (S) Tourism Short Description of the Project

Undertaking of EIA’s in the environmentally sensitive areas as Ward 14 and 15 inorder to unlock Tourism potential

Expected Results Target Group (s)  Better rehabilitation ,protection  The community of Ndwendwe and management of land  Improved and informed development of land

Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitation and issuing out of tenders Private Consultants Compilation of plans Department of Agriculture

Prerequisites: Risk factors:  Road and other infrastructure to  Investor interest be provided Estimated Costs: R25 000 for scoping

Time of implementation: Time to impact: Within 2006/07 financial year Short -Term

Outputs:  Sustainable agricultural practices and sound environmental management

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #3.2.1 PROGRAM TYPE (S)Tourism Short Description of the Project

Upgrading of infrastructure/electricity/roads

Expected Results Target Group (s)  Increase in the number of  Residents of Ndwendwe businesses moving into the area  Business people  Employment opportunities for local people  Attraction of Tourists into the area Possible stakeholders Possible contribution to the project: Ilembe District Municipality Support the project in principle and funding Ndwendwe Local Municipality Facilitate the project Private Consultants Implementation

Prerequisites: Risk factors:  Linked to technical directorate  Funding availability priorities

Estimated Costs:

To be determined in conjunction with technical directorate

Time of implementation: Time to impact: Within 2006/07 financial year Long - Term

Outputs:  Increased business investments and tourism opportunities

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #3.3.2 PROGRAM TYPE (S)Tourism Short Description of the Project

Art and craft beadwork development and Bread and breakfast on the Ndwendwe hilltop

Expected Results Target Group (s)  Attract Tourists into the area  Women Cooperatives  To encourage both formal and  The youth informal investors into the  Existing businesses Tourism sector

Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitation of the project DACT Support for the project Traditional Authorities Make land available for this project Gijima KZN Funding Prerequisites: Risk factors:  Compilation of business and development plans

Estimated Costs: 1. To be developed in phases the establishment = R50 000 including initial training in year one 2. Establish market linkages = R30 000 in year two 3. Quality improvements and training = R50 000 in year three

Time of implementation: Time to impact: Within 2006/07 financial year Short - Term

Outputs:  Attraction of Tourists into the area  Increased investments into the Tourism sector of Ndwendwe

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #4.1.1 PROGRAM TYPE (S)Agricultural Short Description of the Project

Establishment of a fresh produce market

Expected Results Target Group (s)  To link local producers to markets  Existing farmers and developing  To diversify and increase farmers agricultural opportunities for farmers  Development of Agri-processing industries Possible stakeholders Possible contribution to the project: Department of Agriculture To provide support and training Private Consultants Compilation of business and development plans Farmers Association To provide agricultural development finance to small scale farmers

Prerequisites: Risk factors:  Identification of suitable and easily accessible area

Estimated Costs:

1. Feasibility and business plan = R50 000 2. Implementation cost depended on funding of feasibility study

Time of implementation: Time to impact: Within 2006/07 financial year Short- Term

Outputs:  Increased commercial farming practices  Poverty alleviation  Improved economic performance of Ndwendwe

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #4.3.1 PROGRAM TYPE (S)Agricultural Short Description of the Project

Fish Farming

Expected Results Target Group (s)  Increased employment  The youth opportunities  The unemployed  Contribution towards  Existing business people economic development of Ndwendwe Possible stakeholders Possible contribution to the project: Traditional Authorities Make land available for this project Private consultants Compilation of development and business plans Private Investors Beneficiaries and take up of the unemployed

Prerequisites: Risk factors:  Undertaking of a feasibility study  Compilation of development and business plans  Training/skills development programs Estimated Costs:

1. Facilitate private sector feasibility study = R5000 2. Site identification = R15 000 3. Implementation by private sector

Time of implementation: Time to impact: Within 2006/07 financial year Medium- Term

Outputs:  Increased investments into the area  Alleviation of poverty

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #4.3.8 PROGRAM TYPE (S)Agricultural Short Description of the Project

Development of a goat breeding centre at Qinisani node

Expected Results Target Group (s)  Increased employment  Farmers opportunities  Business people  Development of an Abattoir  The residents of Ndwendwe

Possible stakeholders Possible contribution to the project: Traditional Authorities Allocation of land tenure rights Ndwendwe Local Municipality Facilitation of the project Farmers Association Agricultural development finance

Prerequisites: Risk factors:  Training/skills development  Land for grazing programs

Estimated Costs: 1. Involvement and facilitation of stakeholder = R5000 2. Partnership with Department of Agriculture = R50 000

Time of implementation: Time to impact: Within 2006/07 financial year Medium-Term

Outputs:  Produce meat and dairy products locally

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #5.1.2 PROGRAM TYPE (S)Commerce & Industry Short Description of the Project

Development of a Shopping Centre/Supermarket

Expected Results Target Group (s)  Employment opportunities  Entrepreneurs  Trickle down of income to the  The unemployed local community  Establishment of a Tourist service centre Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitation and appointment of consultants Private Consultants Compilation of development and business plans Private Investors Beneficiaries and take up the unemployed

Prerequisites: Risk factors:  Compilation of development and Unreliable supply of electricity business plans

Estimated Costs:

1. Site identification and town planning regulations = R15 000 2. Market feasibility study = R25 000 3. Facilitate private sector = R10 000

Time of implementation: Time to impact: Within 2006/07 financial year Short-Term

Outputs:  Local market outlets  Increased investments into Ndwendwe Local Municipality  Improved private, public, partnership

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #5.2.1 PROGRAM TYPE (S)Commerce & Industry Short Description of the Project

Building of the informal market stalls at the taxi rank

Expected Results Target Group (s)  Increase of the informal or  Women emerging entrepreneurial sector  The youth

Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitation of the project

Prerequisites: Risk factors:  Compilation of development plans

Estimated Costs: 1. Site demarcation and detail designs = R50 000 2. Funding access = R5000

Time of implementation: Time to impact: Within 2006/07 financial year Short - Term

Outputs:  Increased business support  Capacity building of the informal businesses

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #6.3.10 PROGRAM TYPE (S)Spatial Economic Integration Short Description of the Project

Development of a youth development centre including business support and capacity building

Expected Results Target Group (s)  Establishment of facilities where The youth of Ndwendwe youth can benefit and enhance their skills  Fostering of entrepreneurship  Improving chances of employment due to well developed skills Possible stakeholders Possible contribution to the project: Department of Economic Development & Support the project in principle and with Planning funding Umsobomvu Provide funding for the project ISETT Funding and training components of the centre Private Investors eg FNB Funding for the project Prerequisites: Risk factors:  Identification of a suitable and  Generating income to sustain the central area for the development centre of the centre  Access to funding  Compilation of development and business plans

Estimated Costs: 1. site identification = R5000 2. Access to funding = R 10 000 ( Umsobomvu)

Time of implementation: Time to impact: Within 2006/07 financial year Long - Term

Outputs:  Equipping the youth with skills that are in demand  Attraction of investment and growth into the area

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #7.1.2 PROGRAM TYPE (S)Information Availability Short Description of the Project

Development of a Business Resource and service centre at Ndwendwe node

Expected Results Target Group (s)  Monitored economic trends of  Existing and developing Ndwendwe Local Municipality businesses  Ensure the availability of information systems

Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitation and funding for the project SEDA Business support and assist with access to funding Private Consultants Compilation of development and business plans

Prerequisites: Risk factors:  Identification of suitable and  Availability of funding accessible area for development of the centre  Compilation of development and business plans  Application for funding Estimated Costs: 1. Site identification and detail design = R35 000 2. Establishment of facility = R200 000 3. Annual operating cost = R100 000

Time of implementation: Time to impact: Within 2006/07 financial year Short- Term

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #8.1.1 PROGRAM TYPE (S)HIV/AIDS & Poverty Short Description of the Project

Expected Results Target Group (s)  Access to funding for the  Women implementation of HIV/AIDS  Youth alleviation projects  Health Cooperatives  Training for the home- based care  HIV/AIDS infected people givers Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitation and support for training programs SETA’s Funders and accreditors Accredited Trainers To provide training Ilembe District Municipality Provide funding for training and to purchase medical suppliers and equipment Prerequisites: Risk factors:  Workshop to facilitate registration  SETA’s response to the initiative  Compilation of a database  Lack of cooperation and  Training/skills development coordination between individual programs businesses to build on the existing initiatives Estimated Costs: R20 000 Municipal funding to facilitate engagement with the SETA’s

Time of implementation: Time to impact: Within 2006/07 financial year Long- Term

Outputs:  Implementation of the Ndwendwe Local Municipality HIV/AIDS and Poverty alleviation projects

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #8.2.1 PROGRAM TYPE (S)HIV/AIDS & Poverty Alleviation Short Description of the Project

Installation of water and electricity connections at Qinisani node currently constraining economic development

Expected Results Target Group (s)  Facilitate the establishment of  The local community of agri-processing and trading Ndwendwe businesses

Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitation of the project Department of Water Affairs and Forestry Support and provide funding for the project Private Contractors For implementation of the project

Prerequisites: Risk factors:  Undertaking of EIA and feasibility study

Estimated Costs:  To be determined in conjunction with technical directorate

Time of implementation: Time to impact: Within 2006/07 financial year Long - Term

Outputs:  Improved quality of life

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #9.1 PROGRAM TYPE (S)Institutional Arrangements Short Description of the Project

Establishment of Chamber of Commerce with the assistance of Ilembe initiative

Expected Results Target Group (s)  Access to information on  Local business people managing and maintaining businesses  Support for emerging businesses  To source enough funds for business establishment and operation Possible stakeholders Possible contribution to the project: Ilembe Chamber Businesses in Ndwendwe Ndwendwe Local Municipality

Prerequisites: Risk factors:  Demonstrated interest businesses

Estimated Costs: 1. Provision of facilitation and secretarial services for first three years = R 15 000 pa

Time of implementation: Time to impact: Within 2006/07 financial year Short - Term

Outputs:  Development of responsible private enterprises  Improved business service provision

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #4.2.1 PROGRAM TYPE (S)Agricultural Short Description of the Project

Registering the Farmers and application for access to funding for Gijima for the compilation of the Agricultural development Plan ,Integrated Development plan, Nodal Plan for Bhamshela, Ndwendwe, Qinisani, Mkhukhuze Nodes

Expected Results Target Group (s)  Improved support for business  Existing and developing farmers establishment operation at Ndwendwe Local Municipality  Accessible funds for business development Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitation Farmers Association Support and access to funding Private Consultants Compilation of applications

Prerequisites: Risk factors:  Filling up applications for funding  Workshops for registering farmers  Compilation of database

Estimated Costs:

1. Cost of Gijima application submission = R10 000 2. Cost of Agricultural Plan formulation = R 250 000

Time of implementation: Time to impact: Within 2006/07 financial year Short - Term

Outputs:  Improved business support  Increased agricultural productivity

NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #6.3.12 PROGRAM TYPE (S)Spatial Economic Integration Short Description of the Project

Development of Ndwendwe and Ezindlovini nodes

Expected Results Target Group (s)  Develop the economy of  Community of Ndwendwe Ndwendwe Municipality  Business people  Job opportunities for local people  Development of local manufacturing and similar activities in the area

Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitation Private Consultants Preparation of development and business plans Private Investors Beneficiaries and take up the unemployed

Prerequisites: Risk factors:  Preparation of town planning development plans  Development of infrastructure to support the development  Skills development programs Estimated Costs: 1. Development policy framework development cost = R 250 000 2. Implementation cost to follow on the framework plan

Time of implementation: Time to impact: Within 2006/07 financial year Short - Term

Outputs:  Local economic development of Ndwendwe Municipality  External investments into the area

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NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PROJECT #6.3.13 PROGRAM TYPE (S)Spatial Economic Integration Short Description of the Project Development of a Tourist programme at Nhlangakazi Holy Mountain

Expected Results Target Group (s)  Contribution into the local  The youth economy  The unemployed  Contribution into the tourism  Existing entrepreneurs sector of Ndwendwe Local Municipality Possible stakeholders Possible contribution to the project: Ndwendwe Local Municipality Facilitation Private Consultants Preparation of development and business plans Private Investors Beneficiaries and take up of the unemployed Shembe Church Prerequisites: Risk factors:  Feasibility study  Risk of Shembe’s willingness to  Preparation of development and participate business plans  Development practices that might  Mobilizing Shembe worshippers be against Shembe religious practices Estimated Costs: 1. Formulation of tourism programme = R 100 000 2. Initial project implementation = R100 000

Time of implementation: Time to impact: Within 2006/07 financial year Short - Term

Outputs:  Attraction of international and local tourists into the area  Contribution into the developing tourism sector in Ndwendwe local Municipality  Attraction of investments into the area

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NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PRIORITY Project Purpose Anticipated Activities Stakeholders/ Role Responsible Budget Time Frame ACTIVITIES Results/Outcomes Players Agency

1. Training of - To improve service of - Training programs and - Establishment of a - Ndwendwe - Small business R20 000 Municipal Short - Term the entrepreneurs workshops business Local developing funding to facilitate entrepreneurs - Promotion of small - Better skilled people information centre Municipality agencies engagement with by SETA business sector represents - Identification of - SETA SETA’s and internships growth in the local economy existing and - Existing provision of with of Ndwendwe developing entrepreneurs workshops, Departments entrepreneurs - Existing discretionary funding and the businesses applications Municipality - Accredited Trainers

- To improve infrastructure - Approved LED - Compilation of - Ilembe district - Department of Facilitation of Short - Term 2. Applications for and quality of service projects and business plans for Municipality finance and applications to be access to delivery implementation the various projects - Ndwendwe Local economic made. Limited direct funding for LED - Job creation - Employment and - Compilation of Municipality development cost implications due by MIG, Gijima, opportunities support generated funding applications - Private to consultant work DACT for the - Implementation of LED Consultants on risk in order to projects projects undertake identified implementation 3. Identification of - Develop and register - Database of existing - Preparation of - Valley Trust - Ndwendwe Local Engagement with Short - Term outsourcing BEE/SMME businesses BEE/SMME business plans - Chief Albert Municipality industries, opportunities for - To establish a link between businesses - Compile a Luthuli - Private identification of BEE/SMME firms BEE?SMME businesses - Well developed and database of all - SEDA Consultants outsourcing with larger established registered BEE/SMME BEE/SMME - NGO - opportunities and businesses businesses businesses liaise with local - Establishment of a SMME. Estimate R business centre 20 000 4.Application for - Skills development for - Increased level of - Registration of - Ndwendwe Local - BankSeta R20 000 Municipal Short - Term BankSeta flagship SMME business employees investment in SMME’s Municipality funding to facilitate training vouchers education and training - Compile a - BankSeta workshops and in the labour market database of all registration of existing SMME’s SMME businesses 5. Development of - Increased employment - Increased investment - Undertaking of a - Ndwendwe Local - Ndwendwe Local Establishment of Short - Term a sewing/clothing opportunities s into Ndwendwe feasibility study Municipality Municipality cooperatives and industries - Develop the economy of Local Municipality - Preparation of - Existing accessing of Ndwendwe Local - To create local market business plan entrepreneurs funding. R60 000 Municipality outlets - Private investors per cooperative - Attract private investors into - Private the area Consultants 6 Undertaking of - To promote better - Sustainable - Issuing out of - Ndwendwe Local - Ndwendwe Local R25 000 for scoping Short - Term

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NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PRIORITY Project Purpose Anticipated Activities Stakeholders/ Role Responsible Budget Time Frame ACTIVITIES Results/Outcomes Players Agency EIA’s for the rehabilitation, protection agriculture and sound tenders by the Municipality Municipality environmentally and management of land environmental municipality - Private - Private sensitive areas - To promote improved and management - Hosting workshops Consultants Consultants such as Ward 14 informed development of - Consultation and 15 inorder to land between unlock tourism Government and potential private sector

7. Upgrading of - to increase the number of - I Increased business - Linked to technical - Ndwendwe Local - Ndwendwe Local To be determined in Long - Term infrastructure/ businesses into the area investment and directorate priorities Municipality Municipality conjunction with electricity/ roads - employment opportunities for tourism into the -Private Consultants - Private technical directorate local people area Consultants - Attraction of tourists into the area 8.Art and craft - To attract Tourists into the - Increased commercial - Compilation of - Ndwendwe Local - KZN Gijima - To be developed Short - Term beadwork area farming practices development and Municipality in phases development and - To encourage both formal - Poverty alleviation business plans - Department of establishment = Bead and breakfast and informal investors into - Improved economic Arts, Culture and R50 000 on the hilltop the Tourism sector performance of Tourism including initial Ndwendwe training in year one - Establish market linkage = R30 000 - Quality improvement and training = R50 000 9.Establishment of - To link local producers to - Increased commercial - Undertaking of EIA’s - Farmers - Ndwendwe Local - Feasibility and Short - Term a fresh produce markets farming practices - Skills development Association Municipality business plan = market - To diversify and increase - Poverty alleviation and program from - Ndwendwe Local - Farmers R 50 000 agricultural opportunities for improved economic emerging farmers Municipality Association -Implementation farmers performance of - Private Consultants cost depended - Development of agri- Ndwendwe on findings of processing industries feasibility study 10. Registering the - To improve support for - Improved business - Filling up of - Ndwendwe Local - Ndwendwe Local - Cost of Gijima Short - Term Farmers and business establishment support application s for Municipality Municipality application application for operation at Ndwendwe - Increased agricultural funding - Department of - Farmers submission = access to funding for Local Municipality productivity - - Workshops for Agriculture Association R10 000 Gijima for the - Accessibility of funds for registering farmers - Farmers - Cost of application compilation of the business development - Compilation of a Association plan formulation Agricultural database R250 000 development plan,

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NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PRIORITY Project Purpose Anticipated Activities Stakeholders/ Role Responsible Budget Time Frame ACTIVITIES Results/Outcomes Players Agency Integrated Development plan, Nodal plan for Bhamshela, Ndwendwe, Qinisani ,Mkhukhuze nodes 11. Fish Farming - Employment opportunities for - Increased investments - Feasibility study - Ndwendwe Local - KZN Gijima - Facilitate private Short - Term local people into the area - compilation of Municipality - Private Investors sector feasibility - Contribution towards - Poverty alleviation business and - Private study = R5000 economic development of development plans consultants - Site identification Ndwendwe - Skills development - Private investors = R15 000 /training programs - Implementation by private sector 12. Development of - Increased employment - Produce meat and dairy - Feasibility - Ndwendwe Local - Farmers - Involvement and Short - Term a goat breeding opportunities products locally development plans Municipality association facilitation of centre Qinisani node - Development of an Abattoir - Skills development - Farmers stakeholders = training programs Association R5000 - Private - Partnership with Consultants Department of - Private investors Agriculture = Dept of Agriculture R50 000 13. Development of - To create employment - Well established - Identification of - Ndwendwe Local - Ndwendwe Local - Site identification Short - Time a Shopping opportunities ,managed and development land Municipality Municipality and town centre/supermarket - Trickle down of income to maintained business - Land surveying - Private - Private Consultants planning the local community at Ndwendwe Local environmental Consultants regulations = - Tourist service centre Municipality impact analysis - Private Investors R15 000 - Local market outlets - Compilation of - Market feasibility - Increased investment Development and study = R 25 000 into Ndwendwe Local business plans - Facilitate private Municipality sector = R10 000 14. Building of the - Increase of the informal or - Increased business - Preparation of - Ndwendwe Local - Ndwendwe Local - Site identification Short - Term informal market emerging entrepreneurial support development plans Municipality Municipality and designs = stalls at the taxi sector - Capacity building of the - Private - Private Consultants R50 000 rank informal businesses Consultants - Funding access = R5000 15. Building of - Ndwendw Ndwendwe Local Strategic Roads e Local Municipality between Ndwendwe Municipali - Private Consultants and Maphumulo ty - Departme nt of Transport

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NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PRIORITY Project Purpose Anticipated Activities Stakeholders/ Role Responsible Budget Time Frame ACTIVITIES Results/Outcomes Players Agency 16. Development of - A place where youth can - Improved employment - Identification of - Ndwendwe - Ndwendwe Local - Site identification Short - Term a youth benefit and enhance their opportunities development land Local Municipality = R5000 development skills - Equipping the youth with - Compilation of Municipality - Umsobomvu - Access to centre including -Fostering of entrepreneurs skills that are in business and - Department of - Private funding = R10 business support demand financial plans Economic Consultants 000 and capacity - Attraction of investment development and Private Investors building and growth into the area planning - Umsobomvu - ISETT - Private Investors 17. Development of - To monitor economic trends - Up dated socio-economic - Identification of - Ilembe District - Ndwendwe Local - Site identification Short - Term a Business of Ndwendwe Local information suitable for development land Municipality Municipality and detail design resource and Municipality management and policy - Compilation of - Ndwendwe Local - SEDA = R35 000 service centre at - To ensure the availability of decisions for Ndwendwe development and Municipality - Private - Establishment of Ndwendwe node information systems Local Municipality business plans - Department of Consultants facility = R 200 - Preparation of a economic 000 financial plan development and - Annual operating planning cost = R100 000 - SEDA - Private Consultants 18. Register - Access to funding for the - Implementation of the - Compilation of a - Ilembe District - Ndwendwe Local - R20 000 Municipal Short - Term HIV/AIDS implementation of HIV/AIDS Ndwendwe Local database of all Municipality Municipality funding to organizations active alleviation projects Municipality’s poverty organizations - Department of - Department of facilitate in the workplace and - Training of home-based care alleviation projects that - Skills development Health Health engagement with facilitate givers would indirectly impact on training programs - Ndwendwe Local - Private SETA’s engagement in HIV/AIDS infection Municipality Consultants Ndwendwe - Private Consultants 19. Installation of - Facilitate the establishment of - Improved quality of life - Compilation of - Ndwendwe Local - Ndwendwe Local - To be determined Long - Term water and electricity agri-processing and trading feasibility plans Municipality Municipality in conjunction connections at businesses - Department of - Private with technical Qinisani currently water and Consultants directorate constraining forestry economic Private development consultants

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NDWEDWE LED STRATEGY: Phase 1 and Phase 2: Situational Analysis and Development Framework

PRIORITY Project Purpose Anticipated Activities Stakeholders/ Role Responsible Budget Time Frame ACTIVITIES Results/Outcomes Players Agency 20 Establishment of - Access to information on - Development of - Compilation of the - Ilembe Enterprise - Department of - Provision of Short – Term Chamber of managing and maintaining responsible private database of both - Business Trade and facilitation and Commerce businesses enterprises emerging and development Industry secretarial - Support for emerging - Improved business established Agencies - Ndwendwe Local services for first businesses service provision businesses - Local business Municipality three years = - To source enough funds for - Establishment of a people R15 000 pa business establishment forum

21. Development of - Develop the economy of - Local economic - Preparation of town - Ndwendwe Local - Ndwendwe Local - Development Short – Term Ndwendwe and Ndwendwe Municipality development of planning Municipality Municipality planning Ezindlovini - Job opportunities for local Ndwendwe development plans - Private - Private framework Nodes people Municipality - Development of Consultants Consultants development - development of local - External investments infrastructure to - Private Investors cost = R 250 000 manufacturing and similar into the area support the - Implementation activities in the area development cost to follow on - Skills development the development programs framework plan

22. Development of - Contribution into the local - Attraction of international - Feasibility study - Shembe Church - Ndwendwe Local - Formulation of Short – Term a Tourist economy and local tourists into the - Preparation of - Ndwendwe Local Municipality tourism program at - Contribution into tourism area development and Municipality Private programme = R Nhlangakazi sector of Ndwendwe Local - Contribution into the business plans - Private Consultants 100 000 Holy Mountain Municipality developing tourism Consultants - Private Investors - Initial project sector in Ndwendwe - Private Investors implementation Local Municipality R 100 000 - Attraction of investments into the area

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