Ditsobotla Local Municipality

Local Economic Development Strategy

LED Strategy Document Adopted by Council on 29th January 2016

Date of Publication: 12th February 2016 TABLE OF CONTENT

EXECUTIVE SUMMARY ...... 4 1.1 Policy framework...... 4 1.2 Macro economic analysis ...... 4 1.3 Local sectoral profile...... 4 1.4 LED framework ...... 4 1.5 Implementation plan ...... 5 1.6 Investment incentives...... 5 1.7 Conclusion and way forward ...... 6

1 INTRODUCTION...... 7 1.1 Background...... 7 1.2 Methodology ...... 7 1.3 Study Area...... 8 1.4 Structure of Remainder of Report...... 9

2 POLICY FRAMEWORK...... 10 2.1 Policies and Legislation...... 10 2.2 Implications for Ditsobotla ...... 11 2.3 Conclusion...... 12

3 MACRO ECONOMIC PROFILE...... 13 3.1 Socio-Economic Profile ...... 13 3.2 Provincial and Regional Economic Profile ...... 15

4 LOCAL SECTORAL ANALYSIS...... 19 4.1 Analysis of the Agriculture Sector ...... 19 4.2 Analysis of the Mining Sector ...... 21 4.3 Analysis of the Manufacturing Sector ...... 23 4.4 Analysis of the Construction Sector...... 25 4.5 Trade Sector Analysis...... 26

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 2 4.6 Transport Sector ...... 28 4.7 Development constraints and strengths ...... 28

5 LED FRAMEWORK ...... 32 5.1 Strategic Path...... 32 5.2 Led Framework ...... 33

6 LED IMPLEMENTATION PLAN ...... 45 6.1 Institutional Thrust: Capacity, Partnerships and Human Resources Development Building...... 45 6.2 Institutional Framework ...... 45 6.3 Implementation Guidelines for Priority Focus Areas ...... 57 6.4 Summary of costs and budget roll out for proposed activities ...... 60 6.5 Monitoring and Evaluation Matrix ...... 62

7 INCENTIVE PLAN ...... 65 7.1 Introduction and Background to Incentives ...... 65 7.2 Legal Considerations...... 65 7.3 Background to National Investment Incentives ...... 67 7.4 Local Investment Environment...... 67 7.5 Potential Investment Incentives for Ditsobotla Local Municipality ...... 69

8 Projects Identified by Communitues ...... 72

9 CONCLUSION AND WAY FORWARD ...... 84

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 3 EXECUTIVE SUMMARY

This Local Economic Development (LED) Strategy is formulated by KPA3-Local Economic Development cc for the purpose of providing a strategic direction to guide the Ditsobotla Local Municipality in its actions and efforts to lead the local municipality towards achieving LED within the municipal area. The methodology followed in developing the strategy consists of six interrelated phases, namely: 1: Organising the effort, 2: Local economy and investment environment assessment, 3: LED workshops, 4: Local economic strategy, 5: LED implementation plan, and 6: Incentive plan. The LED strategy and incentive plan is structured into eight sections, namely: 1: Introduction, 2: Policy framework, 3: Macro economic analysis, 4: Local sectoral profile, 5: LED framework, 6: Implementation Plan, 7: Investment incentives and 8: conclusion and way forward.

1.1 Policy framework The LED strategy takes into consideration the priorities and concerns identified in the legislation, policies and strategies at National, Provincial, District and Local level to ensure a prosperous region that can serve the needs of the community.

1.2 Macro-economic analysis The macro economic analysis assesses the socio-economic and macro and local economic profile of the Local Municipality in relation to the District, Provincial and National context with regards to the critical areas for LED. The critical areas of analysis includes identifying the main issues and concerns facing local communities and businesses, the manifestation of poverty in the area, the employment structure, analysis of the first and second economies, gap and opportunity analysis with a perspective on what interventions are required to unlock economic potential of Ditsobotla Local Municipality, etc.

1.3 Local sectoral profile The section analysis the contribution to the economy from each of the economic sectors. Within each sector, an analysis in terms of an overview of the sector, products produced within each sector, existing development initiatives, backward and forward linkages in the economy and economic gaps and opportunities is provided. The last part of the section consists of a summary of the main weaknesses/threats and strengths and opportunities facing the local economy. This and the previous section form the basis of identifying the blockages to and opportunities for development that are addressed in the LED development framework so that an appropriate development path can be determined.

1.4 LED framework This Section provides the LED vision for the municipal area, the identification of LED goals and objectives to address the economic challenges facing the municipal area. To enable the LED

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 4 unit and other role-players and stakeholders to facilitate local economic development in a coordinated and structured manner is also provides a detailed LED framework. The technical LED Thrusts and Programmes of the framework are as follows:

LED THRUSTS:

1: Municipal’s 2: SMME and 3: Agricultural 4: Maximise and enhance economic governance community business beneficiation and value- benefits from strategic processes improve support chain development location

LED PROGRAMMES:

Municipal process Social capital renewal Agro-processing and Support large anchor redesign initiatives and community value-adding initiatives and develop development initiatives spin-off opportunities

Red tape reduction SMME and Self-sustaining and Mining exploration, including review of by- entrepreneurial niche-produce processing, and district- laws development and development wide support support

Review of Skills development and Farmer support, Locality Development Procurement Process mentorship training, and inputs & through economic services development infrastructure development

1.5 Implementation plan The implementation plan provides the institutional framework which provides guidelines for capacitating the Municipality to implement the Economic Strategy and also prioritises the LED actions and projects for the municipal area that are considered immediately necessary for stimulating the economy. From the priority list, the main anchor projects for unlocking economic development have been identified. Each of these priority anchor projects is unpacked and described in detail. This section concludes with a monitoring and evaluation matrix with various indicators for assessing progress as far as implementing the LED Strategy is concerned.

1.6 Investment incentives This section highlights available incentive schemes on a national level, makes reference to legal considerations, provides the prospects for financial and non-financial investment incentives in Ditsobotla LM which could be introduced in the area to retain existing businesses and to attract new businesses, and concludes with an implementation and investment incentive guidelines. In summary the incentives are proposed to be considered:  Property rates rebates/exemptions targeting business start-ups in specific areas (township business areas, rural settlements, and industrial areas) and sectors. Application

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 5 in this regard is likely to have a more significant impact on profitability of business start- ups and limited impact on municipal revenue  Reductions in municipal service contributions again targeting business start-ups in specific areas (township business areas, industrial areas) and sectors. Application in this regard likely to have a significant impact on profitability of individual business and limited impact on municipal revenue  Municipal land cost concessions for certain new businesses investing in target areas (industrial areas, rural areas – linked to land reform projects)  Performance based investment incentives  Administrative support incentives  Networking, business information, investment promotion and investor support incentives  SMME, BEE and second economy support investment incentives  Facilitation services in order to access provincial and national incentives  ‘Special discretionary incentives’ or structured packages to be defined in consultation with certain ‘pioneer firms’ that will catalyse development in targeted key sectors

1.7 Conclusion and way forward The conclusion drawn from this strategy is that Ditsobotla has an abundance of economic options and opportunities for addressing the challenges that it faces and unlocking its economic development potential. Diligent implementation of this LED Strategy is expected to stimulate economic growth and development of the municipal area. The expected outcomes will be increased employment and income levels, as well as reduced poverty. This section also provides the actions for the immediate way forward.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 6 1 INTRODUCTION

1.1 Background KPA3-Local Economic Development cc was appointed by Ditsobotla Local Municipality to formulate a LED and Investment Plan for their area of jurisdiction. The purpose of the LED and investment plan is to investigate the options and opportunities available to broaden the local economic base of the area in order to address the creation of employment opportunities and the resultant positive spin-off effects throughout the local economy.

1.2 Methodology Figure 1.1, illustrates the approach followed in developing the LED and Incentive Plan for Ditsobotla Local Municipality. Figure 1.1: Methodology

Step 1: Organising the effort

Step 2: Local economy and investment assessment

Macro and local profile Economic potential analysis and prioritisation Situational analysis Status quo report Investment climate assessment Competitiveness review

Step 3 Step 4: Local economic strategy LED workshop Vision, Thrusts, Opportunities Programmes and projects Local Economic Strategy report

Step 5: LED strategy implementation

Finance Plan Management plan 5- Year action plan Institutional plan 2 feasibility plans

Step 6: Investment incentive plan

Investment promotion guidelines Investment programmes and projects Incentive plan

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 7 1.3 Study Area Ditsobotla Local Municipality, hereafter referred to as the study area, is situated within the Ngaka Modiri Molema District in the North West Province which is located (as indicated by the name) on more or less the north-western side of the country. See Figure 1.2. Sometimes referred to as the Platinum Province, North West is well-known for significant production of this valuable commodity. The province is centrally located with excellent road and rail infrastructure to all Southern African countries. The North West has an area of 106,512 km2 which is 8.72% of the area of South Africa and has a population of approximately 3.4 million people which is approximately 7.2% of the South African population. Figure 1.2: Location of study area

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 8 The Ngaka Modiri Molema District Municipality is situated in the centre of the North West Province, and shares a border with Botswana. It covers an area of more than 27,985 km2, which is about a quarter of the Province. Its area of jurisdiction covers the local municipalities of Ditsobotla (the study area is the second largest municipality with regards to area coverage – 6,477 km2), Mafikeng (the capital of the North West Province – 3,706km2), Ramotshere Moiloa (7,207 km2) Ratlou (4,618 km2) and Tswaing (5,977 km2). The principal towns in the districts are Mafikeng, Zeerust and Lichtenburg. This is a predominantly rural region. Farming activities focus on cattle ranching, game farming (Zeerust), and maize, wheat, fruit and vegetable cultivation. Several kinds of minerals, including gold, diamonds, lime and salt are also mined. Agriculture and mining form the economic backbone of the district. Ditsobotla Local Municipality covers 6,477 km2 that hold extensive commercial farms. Farming is focused on livestock (cattle, sheep and pigs) and crop production (cotton, peanuts, maize, soya and corn). The agricultural sector is by far the largest provider of employment, both skilled and unskilled, in the region. Ditsobotla Local Municipality has the following small towns/areas in its jurisdiction:

 Bakerville  Ga-Ramodingwana  Biesiesvlei  Grootpan  Bodenstein  Hauptrus  Carlsonia  Itsoseng  Coligny  Lead Mine  Doringbult  Lichtenburg (headquarters of the municipality)  Elandsputte  Rooigrond  Wondermere (Molopo Oog)

1.4 Structure of Remainder of Report The remainder of the report is structured as follows:  Section 2: Policy and legislative framework  Section 3: Macro Economic Profile  Section 4: Local Sectoral Analysis  Section 5: LED Framework  Section 6: LED implementation plan  Section 7: Incentive Plan  Section 8: Conclusion and way forward

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 9 2 POLICY FRAMEWORK

This section sets out the national, provincial, district and local government legislation, policies and strategies to which the Ditsobotla LED strategy needs to conform and/or take into consideration.

2.1 Policies and Legislation The relevant strategic and/or policy documents, with which this LED strategy is aligned, are: National policies and legislation:  The Constitution of the Republic of South Africa (No 108 of 1996)  Accelerated and Shared Growth Initiative for South Africa (ASGISA)  Medium Term Strategic Framework (MTSF) 2009 to 2014  Integrated Sustainable Rural Development Programme (ISRDP)  Broad Based Black Economic Empowerment (BBBEE) Strategy  Broad Based Black Economic Empowerment (BBBEE) Act (No. 53 of 2003)  National Industrial Policy Framework and Action Plan (NIPF)  New Partnership for Africa’s Development (NEPAD)  National Spatial Development Perspective (NSDP) 2006  Regional Industrial Development Strategy (RIDS)  Co-operatives Act (No. 14 of 2005)  White Paper on Agriculture (1995)  Land Redistribution for Agricultural Development (LRAD)  Small Enterprise Development Agency (SEDA)  Municipal Systems Act (No. 32 of 2000)  National Framework for Local Economic Development (NFLED)  Tourism Growth Strategy (TGS) Provincial policies and legislation:  North West Provincial Growth and Development Strategy (NWPGDS)  North West LED Indaba Report  North West Manufacturing Strategy (NWMS)  North West Tourism Master Plan (NWTMP)  North West Service Delivery Improvement Plan (NWSDIP) District and local policies and legislation:  Ngaka Modiri Molema Integrated Development Plan (IDP)  Ngaka Modiri Molema Local Economic Development Plan (LEDP)  Ngaka Modiri Molema Growth and Development Plan  Ditsobotla IDP  Ditsobotla Spatial Development Framework (SDF) 2006

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 10 2.2 Implications for Ditsobotla The above legislative and policy documents provide guidance to the strategic development of the Ditsobotla Local Municipality, and the development context and policy framework for the Municipality is characterised by a strong focus on sustainable, integrated and inclusive development and capacity building. Skills development and the upgrading of human capital are strong themes and priority issues in all national, provincial and local development strategies, especially in the ISRDP, NEPAD, the Ngaka Modiri Molema and Ditsobotla IDPs and the NSDP, where it is stated that there should be focus on human capital development in places of limited economic potential as skilled staff is important to ensure high standards of productivity and excellence. Job creation, the eradication of poverty and the upliftment of previously disadvantaged groups are important priorities in numerous documents like the MTSF, BBBEE Strategy and BBBEE Act, NEPAD, LRAD and the NWPGDS. District and local level IDPs view the issues of unemployment and poverty in a serious light, and strive to supply in especially the needs of those that have suffered under apartheid practices. Service delivery is a recurring topic and in strategic documents by all three spheres of government, and it is clear that there is an urgent need for effective and efficient service delivery by all government departments, and especially so on local municipal level. The Municipal Systems Act (MSA) puts strong emphasis on the duty of local government to deliver services in a sustainable manner, and the NWSDIP is aimed at improving the way services are delivered in the North West. Economic development and growth is viewed as extremely important in legislation, policies and strategies by all three levels of government, and has been highlighted in, amongst others, the Constitution, NWPGDS, Ngaka Modiri Molema SDF and IDP for the Ditsobotla Local Municipality. It is important that economic growth benefits everyone, especially those in the local economy. The NWPGDS suggests that urban and rural development has to take place to facilitate growth, diversification, and transformation of the local economy. These documents state that the advantages of the area and the disadvantages of the economy have to be identified and fully understood in order to ensure sustained economic growth, and the National Industrial Policy Framework (NIPF) emphasises the importance of diversifying the local economy to absorb economic shocks. Several economic sectors of the Ditsobotla Local Municipality have been identified as important, with the most profound being the agriculture, mining and tourism sectors. These sectors are responsible for the majority of the injections into the local economy, and should be supported and seen as priority. The White Paper on Agriculture (1995) highlights the fact that existing and emerging farmers and agri-businesses in the area should be supported, and the North West’s PGDS state that new technologies should be investigated where applicable to maximise production outputs. The potential for tourism development in the North West and Ditsobotla Local Municipality has been identified as key input into the economy and a number of the documents suggest that the existing tourism market should be developed and

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 11 expanded in a way that promotes transformation, distribution and sustainability in the industry. The local manufacturing sector also has a lot of potential for expansion and diversification, and the NWPGDS and the Ditsobotla IDP suggests that funds be invested in this sector. Many of these documents identify manufacturing as a key ingredient to job creation. Although the Ditsobotla Local Municipality is to some extent an agricultural area, it should also focus on the upliftment of the local manufacturing sector and identify and encourage new manufacturing initiatives. Labour-based production methods should be favoured, as this will ensure employment in the local economy and will result in the upliftment of the local community.

2.3 Conclusion The importance of sustainable development is emphasised by the aforementioned documents, and the sensible and economical use of natural resources is viewed as vital to a region’s success. The LED strategy for the Ditsobotla Local Municipality needs to take the priorities and concerns identified in the aforementioned legislation, policies and strategies into account and should make use of the resources at its disposal to the best of its ability to ensure a prosperous region that can serve the needs of the community.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 12 3 MACRO ECONOMIC PROFILE

The purpose of this section is to provide a status quo perspective on the economic and socio- economic context in relation to the District, Provincial and National context with regards to the critical areas for LED.

3.1 Socio-Economic Profile The Table below indicates the composition of the population across gender lines in South Africa, the North West Province, the Ngaka Modiri Molema District and the Ditsobotla Municipality. Based on the latest available data, Ditsobotla Municipality had a population of over 170,784 people in 2012 with a per annum growth rate of 1% equalling that of the District (1%), and the Province (3%). There are slightly more females (51%) than men (49%) in South Africa, and the male and female proportions have remained relatively equal for the years, 2011 and 2012. The Provincial, District and Municipal gender distributions are relatively in line with National trends. Table 1: Population and gender distribution 2011, and 2012

Region Year Total Average annual Male Female Total population population growth Ngaka Modiri 2011 837 278 n.a 49% 51% 100% Molema District 2012 846 448 1% 49% 51% 100%

Ditsobotla 2011 168 348 n.a 49% 51% 100% municipality 2012 170 784 1% 49% 51% 100%

Source: Global Insight 2013 The Table below shows the economically active population and the employment status of people in South Africa, the North West Province, the Ngaka Modiri Molema District and the Ditsobotla Municipality. An economically active person, as shown in the Table below, has been defined by Statistics South Africa as one who is available for work and is aged between15 and 65 years of age, regardless of whether that person is employed or not. According to Statistics South Africa (2004), an employed person is defined as one who works for remuneration, profit or family gain. The definition includes employers and employees, as well as those who are self- employed or a working family member. This includes both the formal and informal sector.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 13 Table 2: Economically active population and employment status, 2012

South North West Ngaka Modiri Ditsobotla Africa Province Molema Municipality District Employment status as percentage of economically active population Economically 18 412 541 389 843 226 559 33 897 Active population Employed 67% 64% 62% 72%

Unemployed 33% 36% 38% 28%

TOTAL 100% 100% 100% 100%

Source: IHS Global Insight 2013 The potentially economically active category includes members of the population who are not working but who fall under the (15-64) age group and are not able to work due to different factors like disability, not wanting to work, students, etc. The above Table shows that within the economically active population, the percentage of employed population in South Africa and the North West Province is 67% and 69% respectively, while the remaining 33% and 31% are unemployed. The Ngaka Modiri Molema District and Ditsobotla Municipality have employment rates of 62% and 72% of the economically active population being employed respectively, while 38% and 28% of the economic active population is respectively unemployed. The following graphs further indicates these trends Figure 1: Overall Employment Figures - Ditsobotla

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 14 Figure 2: Overall Employment Figures - NMMDM

3.2 Provincial and Regional Economic Profile The Table below shows the share of GDPR contributed by each sector in Ditsobotla Municipality, Ngaka Modiri Molema District, the North West Province and South Africa. Table 3: Sectoral share of GDPR per area at current basic prices, 2011 and 2012

Ngaka Modiri Ditsobotla North West Molema District Municipality 2011 2012 2011 2012 2011 2012 GDPR in R million 67.286 72.707 24.590 26.042 4.799 5.045 Agriculture 8% 8% 5% 6% 9% 10% Mining 15% 16% 4% 4% 13% 13% Manufacturing 11% 13% 6% 6% 17% 17% Electricity & water 2% 2% 3% 3% 0% 0% Construction 2% 2% 2% 2% 2% 3% Trade 10% 10% 10% 10% 11% 11% Transport 9% 8% 7% 7% 8% 8% Finance 13% 12% 16% 14% 15% 13% Community services (incl. Government) 30% 29% 48% 49% 24% 25% Total 100% 100% 100% 100% 100% 100%

Source: IHS Global Insight 2013 As indicated by the Table above, the GDPR of the municipality was slightly more than R5 Billion during 2012.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 15 The Community Services (including Government) Sector (25%) made the biggest contribution to the economy of Ditsobotla Municipality in 2012. The contribution of the Community Services has, increased from 24% in 2011, and is currently still far less than the average contributions made by this sector at the District, level. This shows that although this sector is still the highest in the municipality, it is not as important as compared to the average of the District. This could be because the district also houses the provincial administrative capital of the North West province. The second highest GDP contributing sectors in the Municipality is that of the Manufacturing sector (17%) followed by Mining and the Finance (13%) respectively. In the instance of both the Manufacturing and Mining sectors, they are much more than the average of the district and are not far behind that of the province. This shows the importance of both the sectors for the municipality. This probably contributes towards the strong trade sector in the Municipality and the spin-offs created by the trade sector towards the Finance sector. The Agriculture sectors contributed approximately 10% to the economy of the Municipality, with the Agricultural sector comprising a higher share in the economy of the Municipality than in the Province (8%) and District of (6%). The agricultures share to the municipality’s economy has however increased from the 9% contribution in 2011. Again this shows that agriculture is an important contributor to the economy of the municipality. The electricity & water, construction transport sectors share has remained relatively constant over the aforementioned timeframe and are well within the average range of both the district and the provincial contributions. Surprisingly the manufacturing sector is the 2nd highest contributed to GDP, even higher than both district and Province. This shows that there is great scope for local manufacturing and further beneficiation in this area. Table 4: Percentage contribution of local municipalities to sectoral Gross Value Add of Ngaka Modiri Molema District, 2012 Ratlou Tswaiing Mafikeng Ditsobotla Ramotshere Ngaka Modiri Ngaka Molema DMA Molema Agriculture 33.4% 15.8% 9.0% 20.7% 21.0% 100% Mining 63.0% 16.8% 11.3% 2.3% 6.5% 100% Manufacturing 53.7% 21.8% 16.6% 3.4% 4.5% 100% Electricity & water 2.1% 71.1% 17.5% 9.0% 0.2% 100% Construction 20.9% 55.2% 11.0% 9.7% 3.3% 100% Wholesale and trade 21.1% 59.9% 17.4% 7.1% 2.5% 100% Transport 21.1% 58.3% 8.2% 9.7% 2.6% 100% Finance 17.7% 50.3% 13.5% 11.4% 7.1% 100% Community services (incl. Government) 9.6% 66.1% 10.8% 10.9% 2.7% 100%

Source: IHS Global Insight 2013 (% calculations KPA3 LED cc)

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 16 The Table above gives an indication of the contribution made by each Municipality to the District GVA and each of its sectors. From this table, it is possible to see how the Ditsobotla Municipality is performing compared to other municipalities in the Ngaka Modiri Molema District. Ditsobotla contributes the most to the district GVA in Mining (63.0%) in Manufacturing (53.7%) and in Agriculture (33.4%). These areas are the strength of the municipality and would be easy to further exploit. While the wholesale trade sector (21.1%) falls way behind that of Mafikeng, this is a potential area of growth for the municipality. Figure 3: Sectoral Percentage distribution of employment, 2012

Source: IHS Global Insight 2013 In 2012, the community services sector by far made the largest contribution to the employment in Ditsobotla Municipality, absorbing more than a quarter (26%) of the local employment. The share of contribution from this sector to employment is slightly larger than the share of the same sector to the contribution of GDPR. This indicates that, while the wholesale and trade industry remains an important economic sector for the Municipality, it is an even more important sector in terms of supplying a large number of jobs opportunities. Trade (14%) and agriculture (18%) sectors also made significant contributions to local employment. The agriculture sector is a large employment creator. However, the agriculture sector is a far smaller GVA R contributor. This indicates that, while the agriculture sector is an important job creating sector for the Municipality, it is not supplying high paid job opportunities and it is not contributing equally to the economic contribution of the economy.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 17 Discussions with local role-players however indicate that the above agricultural employment figures might be far larger than in the reality. There are a number of dormant agricultural tracts of land next to communities that are not fully being utilised. Figure 4: Labour Remuneration 2012

Source: IHS Global Insight 2013

In general there seems to be a huge difference between the remuneration in the different sectors and the employment spread. Agriculture provides the 2nd highest percentage of jobs in digital bottler while it actually has a very low labour the percentage (3rd lowest after electricity and construction). Both the Labour remuneration for mining and manufacturing is higher than the percentage of job allocation which could mean that many of the services in the sectors are probably specialised. The growing these areas might not necessarily provide more jobs while the opportunities within the trade sector, based on the fact that is slightly less than percentage of jobs might provide job opportunities if this sector is grown. The comparison between Labour remuneration and distribution of jobs when it comes to community services could mean that job creation in this area is probably saturated.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 18 4 LOCAL SECTORAL ANALYSIS

The purpose of this section is to analyse the contribution to the economy from each of the economic sectors. Within each sector, this Section provides an analysis in terms of an overview of the sector, products produced within each sector, existing development initiatives, backward and forward linkages in the economy and economic gaps and opportunities.

4.1 Analysis of the Agriculture Sector According to the Standard Industrial Classification (SIC), the Agriculture sector includes such activities as the growing of crops, market gardening, horticulture, farming of animals, forestry and logging and related services. Other sub-sectors of the Agricultural sector also include commercial hunting, game propagation and fishing. The following Table gives a short summary of the economic indicators relating to the agricultural sector in Ditsobotla Local Municipality as compared to that of the Ngaka Modiri Molema District. Table 5: Agricultural economic indicators, 2012

SECTOR SHARE IN Ditsobotla SECTOR SHARE IN DISTRICT

EMPLOYMENT SHARE 18% 27%

GVA-R SHARE 10.2% 33.4%

Source: IHS Global Insight 2013 The above Table shows that agriculture has a rather large employment share, and is responsible for employing 18% of the labour force in the Municipality. This amounted to approximately 4,300 jobs in 2012. However in the Ngaka Modiri Molema District, the Agricultural sector is responsible for a third (33%) of the total labour force. It is thus noted that the LED Strategy needs to place specific focus on job retention and expansion in the Agricultural sector, as any changes in this sector could have severe consequences for overall employment levels in the Municipality. It is also evident from the above Table that the Agriculture sector of Ditsobotla Municipality contributes just more than a quarter (27%) of the employment created in the Agricultural sector of the District. Furthermore, as can be seen from the Table above, it is evident that the Agricultural sector contributes far less to the GVA of the local economy (10%) than it does to employment (18%). However in Ngaka Modiri Molema District the GDP share from the agriculture sector is 17% and thus a far larger contributor to the Districts economy than the municipal economy. Nonetheless, similar as with employment, the local agricultural sector contributes to a

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 19 quarter of the GDP generated by this sector in the District. Thus showing the relevant importance of the local agriculture sector in Ditsobotla to the agriculture sector of the District. The key agricultural development opportunities are summarised hereunder. Table 6: Summary of key agricultural development opportunities

Existing Development Potential Opportunities

Existing cereals and crops:

 Maize for grain  Animal feed production  Grain for sorghum  Organic farming  Wheat and other winter cereals  Cotton production  Sunflower seeds  Development of drought resistant crops  Ground nuts  Numerous agro-processing  Dry beans opportunities (see manufacturing sector  Lucerne opportunities)  Maize for silage,  Teff and other fodder crops  Cotton Existing Livestock farming: Red and white  Expansion of beef and dairy cattle meat  Expansion of sheep farming  Boer goat farming  Sheep,  Chicken farming  Goats,  Game farming  Cattle,  Numerous agro-processing initiatives  Chickens, (see manufacturing sector)  Game

 Research the possibility of cultivating and processing new plants and products  Cassava in rural areas  Introduction of new products Cowpea  Pecan nuts  Fig and pomegranate orchards and processing  Cultivated flowers: Floriculture: amaryllis

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 20 Existing horticulture production:  Miscellaneous vegetables,  Potatoes  Green peas  Expansion of olive production  Pumpkins  Citrus production  Onions  Expansion of existing product  Beetroot quantities  Oranges  Quality improvements\  Grapefruit  Organic farming  Lemon  Miniature vegetables  Olives  Numerous agro-processing  Dates opportunities (see manufacturing  Other sub-tropical fruit sector)  Mangoes  Table grapes  Wine grapes  Peaches  Other deciduous fruits  Numerous teas and nuts

 Letting of farming implements  Agricultural input services  Production and supplying of pesticides, feedlots, machine parts Other  Cold storage transport vehicles  Training, Education, etc.  Fertilizer production (option from reeds)

4.2 Analysis of the Mining Sector Mining is the most important economic sector in the North West, contributing 22% to the GGP of the North West in 2008. The industry in the province revolves mostly around the production of ores, platinum with some gold and other precious stones also being mined. The below Table provides an indication of latest available mining sector economic indicators.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 21 Table 7: Mining sector economic indicators, 2012

Contribution of Sector Share in Sector Share in Ditsobotla Sector to Ditsobotla District Sector in Ngaka Modiri Molema

EMPLOYMENT SHARE 6% 2% 61%

GDPR SHARE 16.9% 4% 63%

Source: IHS Global Insight 2013 The above Table shows that the mining sector has a fairly low employment share, and is only responsible for employing 6% of the labour force in the Municipality. This amounted to approximately 1523 jobs in 2012. However in the Ngaka Modiri Molema District, the mining sector is responsible for 2% of the total labour force. It is also evident from the above Table that the mining sector of Ditsobotla Municipality contributed a large amount of the employment and GVA-R created in the mining sector of the District. It is thus evident that the mining sector is not a key employer in the District, although it should be noted that a very positive and very high average employment growth of 16% per annum has been noted in the mining sector of Ditsobotla between 2001 and 2008. Furthermore, as can be seen from the Table above, it is evident that the mining sector contributes more to the GVA-R of the local economy (16.9%) than it does to employment (6%). However in Ngaka Modiri Molema District the GDPR share from the mining sector is 61% and thus a far larger contributor to the Districts economy than the municipal economy. Thus showing the importance of mining to the Municipal economy. This means that the District economy is rather dependent on the Mining sector as a source of income generation. Due to the large gap in the Ditsobotla contribution in the Districts mining sector to GVA-R (63%) compared to its share in employment (2%) it is evident that within the District it is important to improve the ownership and labour intensity within this sector, through the development of the backward and forward linkages. Lichtenburg within Ditsobotla Municipality, being the second largest town in the North West, is possibly ideally situated to serve as a centre point for further beneficiation and value-adding. It is nonetheless also relevant to note that even though the mining sectors GVA-R share within Ditsobotla municipality is relatively low, it has experienced relatively higher growth rates of an average of 9% per annum between 2001 and 2008. This shows that the mining sectors GDPR contribution is on the increase. The Table below provides a brief summary of the opportunities that have been identified in the Mining and beneficiation sector of the Ditsobotla Municipality.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 22 Table 4.5: Mining sector development opportunities in Ditsobotla Municipality

Opportunities Potential Projects

 Investigation/prospecting to identify untapped resources  Promotion of mineral deposits to potential investors  Skills development and training  Facilitate financial and funding support for small-scale mining Untapped Mineral activities Resources/deposits  Establishment of one or more small mining operations within a cluster of small and larger operations that could co-operate in the utilisation of concentrators and possibly smelting and refining plant in the Lichtenburg area.  Assessment of Slate mining potential

 Providing skills training for higher level skills needs  Sub-contracting cleaning and transport services  Supplying manufactured inputs to mines Existing Mines  Linkages with tourism sector for guided tours  Monitor the effect and value presented by the S&L plan projects  Local value-adding

4.3 Analysis of the Manufacturing Sector The Table below gives a brief summary of the Manufacturing sector’s role in the economy of Ditsobotla Municipality and Ngaka Modiri Molema District. Table 8: Manufacturing sector economic indicators, 2012

Contribution of Sector Share in Sector Share in Ditsobotla Sector to Ditsobotla District Sector in Ngaka Modiri Molema

EMPLOYMENT SHARE 8% 3% 34%

GDPR SHARE 16.9% 6% 53%

Source: IHS Global Insight 2013 As is evident from the above Table, the manufacturing represents approximately 6% of total GDPR and employment in Ditsobotla municipality and approximately 6% of total GDPR and 3% of employment in the Ngaka Modiri Molema District. The manufacturing sector is thus not one of the dominant economic sectors in the Ditsobotla municipality. Nonetheless the manufacturing sector employed approximately 1249 persons in 2012. However given the low

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 23 growth in the manufacturing sector in the Province and the country as a whole, the average per annum comparatively higher growth of 5.5% in the manufacturing sector of Ditsobotla municipality shows a positive outlook for this sector. The manufacturing sector also has potential for much expansion due to current limited local beneficiation. The following Table summarises the opportunities that can be exploited and the potential opportunities that could be utilised to develop the Manufacturing sector in the Ditsobotla Local Municipality. Table 9: Opportunities and potential projects in the manufacturing sector

Existing Development Potential Opportunities

Mineral beneficiation  Local mineral processing & beneficiation activities from operations surrounding Ditsobotla

Agro-processing related to livestock  Beef and Game meat processing plants  Dairy production  Goat value-adding: cheese, yoghurts, body products, soaps, lanolin,  Processing of animal hides  Establishment of abattoirs  Poultry processing – egg production and broilers  Soap making

Agro-processing of horticultural  Producers co-operative produce  Niche milling of grain products for direct marketing  Fermented beverages  Lucerne processing: compacting of bales for export, drying, milling, pelletizing, etc.  Groundnut processing co-operative: peanut value adding, peanut butter & roasting, peanut exports, etc.  Potato starch/chip factory  Beauty products  Vegetable processing and juice-making  Fruit juice making  Citrus processing cluster: production, packaging, processing, juice-making, distribution etc.  Nut processing and packaging plant

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 24  Sun-dried fruit and raisins  Fruit/olive jams, purees, paste, etc.  Packaging and export  Frozen/canned vegetables  Chutney and jam production  Fruit processing co-operative cluster  Table olives and olive oil production units

 Enhancement of spirulina and carotene facilities and or algae hub (beta carotene)  Essential oils  Brick making  Fence making Miscellaneous and other  Welding of window and door frames manufacturing related expansions  Biodegradable packaging  Develop a manufacturing hub/cluster focusing on small and light freight for shipment such as manufacturing of computer parts, etc.  Film making industry

4.4 Analysis of the Construction Sector Key economic indicators of the Construction sector are as follows. Table 10: Construction sector economic indicators, 2012

Contribution Of Sector Share In Sector Share In Ditsobotla Sector To Ditsobotla District Sector In Ngaka Modiri Molema

EMPLOYMENT SHARE 5% 2% 15%

GDPR SHARE 2.6% 2% 20.9%

Source: IHS Global Insight 2013 As is evident from the Table above, the Construction sector contributed only 2.6% to the overall economy of the Municipality and 2% to the District. This makes the Construction industry one of the lowest contributors to GVA both on a District and Local level. Nonetheless, the GVA generated by the Construction sector in the Ditsobotla Local Municipality grew quite substantially at approximately 8% per annum between 2001 and 2008. The GVA contribution

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 25 the Construction sector in Ditsobotla Municipality made to the same sector in the District is 20.9%. Evidently Ditsobotla is thus responsible for nearly quarter of all construction related activities in the Ngaka Modiri Molema District. In terms of employment, the Construction sector, made a larger contribution (5%) than it did in terms of output and was responsible for providing approximately 500 job opportunities. The sector also contributed 2% to the District’s employment. The average growth per annum in employment for the in the period 2001 to 2008 was 8%. The following Table summarises the opportunities that can be exploited and the potential projects that could be utilised to develop the Construction sector in the Ditsobotla Municipality. Table 11: Construction sector opportunities

Existing development Potential opportunities

 Housing construction  Upgrading and maintenance of government Increased demand for housing in buildings urban areas, construction of  Upgrading of roads shopping malls and industrial  Upgrading of electricity and water infrastructure space both within and beyond the  Renovation and construction skills training for municipality youth  Establish construction workers associations or co-ops

Development of infrastructure  Housing for workers around mines in the District  Roads

 Limestone, copper, manganese and iron ore, which is found in the District and Province, can be used to manufacture building materials. Expansion of construction sector  “Green” construction, using sustainable building materials such as sorghum.  Increase productivity by incorporating skills development programmes

4.5 Trade Sector Analysis The following Table provides an indication of some of the key economic indicators for the Retail, trade and wholesale sector in Ditsobotla Municipality. Table 12: Retail, wholesale and trade sector economic indicators, 2012

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 26 Contribution Of Sector Share In Sector Share In Ditsobotla Sector To /Ditsobotla District Sector In Ngaka Modiri Molema

EMPLOYMENT SHARE 14% 9% 18%

GDPR SHARE 11.1% 10% 21.1%

Source: IHS Global Insight 2013 The Retail and Trade sector makes an important contribution to the local economy of the Ditsobotla Municipality, with nearly 12% of the local GDP output being generated by this sector, making it one of the bigger contributors to the Municipality’s economy. Its employment share contribution is slightly higher than the Municipality’s output and is responsible for 14% of the Municipality’s employment approximately 1,897 employees in 2012. As is evident from the Table above, the importance of the Trade sector to the Municipality’s is slightly lower than the importance of this sector to the District, which has a GDP share of 10% and employment share of approximately 11.1%. This sector has also shown large historic growth rates and the growth of the The following Table summarises the opportunities that can be exploited and the potential projects that could be utilised to develop the Wholesale Retail and Trade Sector in the Ditsobotla Local Municipality.

Table 13: Development potential

Existing development Potential opportunities

 Expansion of the retail sector Development of retail &  Development of an SMME trade and marketing strategy wholesalers  Demarcate SMME trading area

Strong agriculture  Trade of small-scale agricultural products sector  Selling of seed, seedlings and fertilizers  Selling of pesticides used in the Agricultural sector  Selling of irrigation equipment  Selling of packaging materials  Selling of machinery, tractors and specialized agricultural implements

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 27 Tourism related  Development of Arts and Crafts market businesses  Development of conference facilities  Laundry services  Promotion of locally produced, processed and manufactured products to neighbouring regions under Ditsobotla branding

4.6 Transport Sector The transport sector opportunities are summarised as follows: Table 4.12: Transport sector opportunities

Existing development Potential opportunities

 Establishment of refrigerated truck SMME  Cut flowers farming opportunity  Small scale dates production Strong Agricultural sector  Organic vegetable farming  Fruit farming  Cotton plantations

 Undertake business plan and obtain funding  Ensure take-off of cargo hub  Assist with locating a major reputable Freight Forwarding company  Develop Truck stop Cargo hub  Develop local caterers for crew meals  Palletising for special requirements  Warehousing and cold storage and moving and stacking of cargo  Construction: construction of new facilities, maintenance of infrastructure, etc.

4.7 Development constraints and strengths This sub-section summarises the major constraints and opportunities derived from the legislative context (Section 2), the socio-economic and economic profiles (Section 3), and the sectoral profiles (Section 4) of the municipal area.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 28 Key constraints/problems/issues in terms of the development of Ditsobotla Municipality include a shortage of job opportunities and job creation in the area. The natural resource base and economy does not have the capacity to support the total population, forcing the labour force to seek employment opportunities outside of the Municipality. Furthermore low levels of income obtained in the area imply low levels of buying power and, therefore, few opportunities for related activities such as trade. This in turn also supports the leakage of buying power. With regards to the socio-economic characteristics of the local population, the employment rate for the Municipality is relatively high, with as much as 72% of people of working age who are actively seeking employment being able to secure a job. However, the majority of the employed population are found in elementary occupations, which require little or no skills. This is also reflected in the low education levels of the local population, with as much as 12% of the population aged 20 years and older having no form of education whatsoever. This, to some extent, constrains the development potential of the Municipality in the development of more advanced industries. The level of employment and type of occupations taken up by the population of the Municipality also directly affects their income levels. Therefore, in terms of job creation, this strategy needs to focus on the quality and sustainability of jobs created, rather than the quantity of jobs created. The following constraints were also noted from the documents scrutinised for this exercise regarding the local economic development environment:  Confrontation between government and labour on differences of economic strategies  High dependency on social grants which are indicated to negate desire for working  High rate of unemployment  Informal / illegal trading businesses from residential areas and are unregistered  Lack of access to cost-effective training facilities  Lack of business knowledge regarding procedures to start a business / project  Lack of capital to start business  Lack of communication from all government spheres to include community in project planning  Perceived lack of desirability to work as during agricultural season truckloads of labourers from outside the municipality are utilised because the local people are perceived not to be interested  Lack of entrepreneurial programmes  Lack of equipment for apprentices, i.e. builders, mechanics etc.  Lack of experience in other fields  Lack of ideal use of tourism potential  Lack of knowledge about economic and job opportunities  Lack of monitoring institutions for development  Lack of opportunities for matriculants to further studies  Lack of qualifications, skills and training  Lack of youth development focus

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 29  Limited and seasonal economic and job opportunities and low minimum wages  Limited information for the acquisition of funding for development purposes  Little investment by outside businesses and investors  Monopoly of existing businesses in the main stream of the economy  New businesses become insolvent within 12 months  Non availability of land for investors and previously disadvantaged  Shortage of job opportunities and job creation in the area  The municipality has a lack of capital input due to a relatively small population and limited tax base. Income mostly goes towards maintenance and operations with a lack of a ‘capital basket’ from which other initiatives can be implemented/funded. The Municipality’s economy is rather centred on agricultural sector, leaving the local economy fairly vulnerable for any significant changes in this industry. It is, therefore, important that the Municipality seeks to further diversify its economy into other sectors. Furthermore, in the district, the manufacturing sector of the municipality is one of the highest performing sectors of the district economy. This sector therefore has the potential to generated significant growth for the region, and Ditsobotla Municipality is experiencing according to the recent statistics an increase of manufacturing opportunities. However, there is still much in the municipality that has to be sourced from outside of the municipal boundaries, resulting in money flowing out of the local economy. Due to the unique spatial manifestation of the municipality, both the first and second economies are mostly located around the CBD and farms. Lichtenburg has a well-defined business centre with numerous residential areas. Secondary activities in the study area are mainly light industrial, warehousing, and light engineering works. Main traffic routes connect Lichtenburg, the hub of activities in the municipality, to cities and towns like, Johannesburg, Pretoria, Mafikeng and Gaborone and Francistown (in Botswana). The Agricultural sector is important to the local economy and therefore represents an emerging strength for the Municipality, which creates further opportunities for expansion, as well as the development of linkages with other sectors of the economy, creating further opportunities for job creation. The White Paper on Agriculture (1995) highlights the fact that existing and emerging farmers and agri-businesses in the area should be supported, and the North West’s PGDS state that new technologies should be investigated where applicable to maximise production outputs. The potential for tourism development was identified by the NWPGDS, and Ditsobotla IDP, SDF and Tourism Plan, and there are suggestions that the existing tourism market should be developed and expanded in a way that promotes transformation, distribution and sustainability in the industry. Furthermore, even though the manufacturing sector of the economy is currently performing well within the district, given the good agricultural base, opportunities for the expansion of the manufacturing industry exists through agro-processing and other activities. The local manufacturing sector also has a lot of potential for expansion and diversification, and the

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 30 NWPGDS suggests that funds be invested in this sector. Lichtenburg has been identified as one of the pockets of manufacturing capability in the North West, and suggests that the Ditsobotla Local Municipality and other stakeholders focus on the upliftment of the local manufacturing sector. Labour-based production methods should be favoured, as this will ensure employment in the local economy and will result in the upliftment of the local community. Ditsobotla benefits from a potentially economically active population that comprises approximately 67% of the total population, which provides the Municipality with a large human resource base. This allows opportunities for development projects to involve and benefit local people. The age distribution of the Municipality’s population also indicates a fairly young potential economically active population, necessitating development to focus on the youth. In terms of economic indicators, the Municipality also enjoys comparative advantages in all of the economic sectors, compared to the District. The Municipality should therefore capitalise on these advantages to further strengthen its position in the District. Furthermore, the fastest growing sectors in the Municipality were those of the, manufacturing, agriculture, and mining sectors. The current growth occurring in these sectors should be exploited to ensure the creation of new job opportunities for local people. In summary major development strengths include:  Lichtenburg is the second largest town in the District  Ditsobotla benefits from large potentially economically active population providing a large human resource base  Ditsobotla has a well-defined business centre  Due to the unique spatial manifestation, both the first and second economy are mostly located around the CBD and farms  Compared to the District, Ditsobotla enjoys comparative advantages in all of the economic sectors  Main traffic routes connect Lichtenburg, the hub of activities in the municipality, to cities like Johannesburg, Pretoria, Gaborone and Francistown.  Strong agriculture sector provides opportunities for job creation through value-adding  Potential for labour-based production methods In conclusion, the Municipality has inherent potential in its natural resource base, namely Agriculture and mining opportunities, from which the economic base can be diversified, backward and forward linkages can be created and job creation can be maximised.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 31 5 LED FRAMEWORK

The purpose of this section is to set out the local economic framework which essentially will guide local economic development within Ditsobotla Municipality. The framework enables local communities, business and private sector partners, local government and non- governmental organisations the opportunity to work together towards a shared vision and strategy for local economic development, allowing economic growth and job creation and enabling the achievement of set targets. This section thus sets out the shared strategic direction, which enables the Municipality to facilitate development in a coordinated and structured manner. The framework is based on the unique comparative and competitive advantages of the location and the specific opportunities it presents as identified in the preceding sections and is aimed at capitalising on these advantages in order to increase the local community benefit, improve the local economy and enhance the competitiveness of the Municipality.

5.1 Strategic Path The municipal vision and mission statement (Gaffney’s Local Government in SA, 2007-08) is as follows: Vision: “A developmental municipality dedicated to the social and economic upliftment of its communities

Mission: “Sustainable service delivery through: transparent administration; dedicated staff; implementation of municipal programme; and consultation with communities

The IDP also reveals the various development objectives have been set to address the National Key performance areas and in respect of economic development the priority area identified includes poverty and unemployment. The development objectives which are proposed to address the aforementioned include:  To create an enabling environment for the advancement of LED activities  To address youth related social-economic issues  To foster means to unite street children with their parents  To eradicate or minimize crime, alcohol and drug abuse  To accelerate the roll out and effective implementation of the ASGISA: Accelerated and Shared Growth Initiatives, High Impact Projects and Investment  Develop: . High impact projects . Bankable Business Plans . Finance and Investment . Active Partnership

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 32  The acquisition of land through land reform processes and redistribution by means of interaction with farmers nearby and through partnerships  Well informed Food Handlers and emerging farmers regarding stock diseases  A proper area available for informal traders  Identify new tourism projects  Upgrade existing tourism facilities  Create awareness programs within the community Taking the above into consideration, the LED vision for Ditsobotla Local Municipality is proposed as follows: LED Vision: “To ensure sustainable economic growth through maximum utilisation of urban and rural resources for community development”

LED Mission: To progressively strived for the advancement of social and economic growth through the following key interventions:  The advancement of SMMEs with specific focus on the agricultural sector;  Stimulating job creation through labour-intensive programmes such as musical capital- investment projects, Expanded Public Works Programme and Community Works Programme;  Forging strong Public-Private Partnerships to enhance local economic growth

5.2 Led Framework The opportunities identified in the previous section are grouped into thrusts. Thrusts are defined as: “Planned actions aimed at creating impetus and a critical mass in the local economic environment in order to generate momentum in the economy”. Within these thrusts, numerous programmes have been proposed which concentrate the attention on specific areas of development, which support the overall goals set by the thrusts. Each programme further proposes specific development projects, as well as the facilitation issues that need to be addressed. The projects and facilitation actions are aimed at enabling the Municipality to achieve the targets set by the development programmes and thrusts. The framework will be presented to the relevant role-players and stakeholders. Changes and additions to the thrusts, and programmes will be made, and the most relevant and effective thrusts and programmes will be prioritised. While issues such as the expansion of economic infrastructure, improved institutional capacitation and good governance do have a role to play in ensuring that effective economic development does takes place, these matters are considered to be supportive elements that will not, of its own, result in the expansion of the economic base and have, therefore, not

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 33 been included in the Strategic Thrusts. Rather, the thrusts identified in this Framework focus on the actual unique opportunities in Ditsobotla Municipality where potential for economic development and growth lies and how the internal processes and procedures of the municipality can be improved to take advantage of these. This section, therefore, provides the framework as a set of thrusts, programmes for development, projects and development facilitation requirements identified in order to allow the expansion and growth of the Municipality’s economy. The following Table provides a summary of all the Strategic Thrusts, Programmes, Projects and Development Facilitation Actions developed as part of the Economic Framework presented by this Strategy. Table 14: Summary of Strategic Thrusts and Programmes

LED THRUSTS:

1: Municipal’s 2: SMME and 3: Agricultural 4: Maximise and enhance economic governance community business beneficiation and value- benefits from strategic processes improve support chain development location

LED PROGRAMMES:

Municipal process Social capital renewal Agro-processing and Support large anchor redesign initiatives and community value-adding initiatives and develop development initiatives spin-off opportunities

Red tape reduction SMME and Self-sustaining and Mining exploration, including review of by- entrepreneurial niche-produce processing, and district- laws and policies development and development wide support support

Review of Skills development and Farmer support, Locality Development Procurement Process mentorship training, and inputs & through economic services development infrastructure development

The following tables provide proposals around development facilitation and project activities for each of the programmes within the different strategic thrusts. As indicated earlier, these are proposals and the most relevant and effective thrusts and programmes will be prioritised after discussions with all role players. Table 15: Thrusts and programmes in detail

THRUST 1: MUNICIPAL’S ECONOMIC GOVERNANCE PROCESSES IMPROVE

PROGRAMMES PROJECTS & DEVELOPMENT FACILITATION

Development Facilitation Municipal Process  Lobby council and management are on the importance of redesigning the processes and procedures of the municipality.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 34 THRUST 1: MUNICIPAL’S ECONOMIC GOVERNANCE PROCESSES IMPROVE Redesign  Identify champions in each of the different divisions of the municipality Initiative which would drive a process redesign project.  Develop a capacity of team to understand and manage a municipal process redesign project.  Identify some of the major processes and procedures that need to be redesigned.  Develop a terms of reference and procure a facilitator to assist the municipality in redesigning processes.

Projects

 Municipal process redesign project  Red tape reduction process  Review of bylaws which affect economic development

Development Facilitation

 Lobby council and little management in order to get by in around an economic friendly procurement process.  Identify the major leaks out of the municipal economy especially related to municipal spend.  Identify the type of percentages and improvements that will need to be done within the procurement process.  Develop an action plan that would set out in an orderly manner the Procurement processes that would be followed to implement the procurement Process process improvement project. Improvement  Develop terms of reference and appoint a facilitator would assist the municipality to implement the procurement process improvement

Projects

 Study to determine the amount of leakage that occurs within the Ditsobotla municipality.  Review of municipal procurement system.  Review and adaptation of relevant procurement processes and procedures.

Development Facilitation Develop  policies and by- Identify important policies and by-laws which affect the general laws that would economic environment of the municipality. improve the  Lobby council and management of Ditsobotla to buy into updating, changing and developing new policies.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 35 THRUST 1: MUNICIPAL’S ECONOMIC GOVERNANCE PROCESSES IMPROVE business  Consult all relevant role players around the updating or development environment of the policies.  Develop terms of reference and appoint a policy specialist would assist the municipality to develop new policies.

Projects

 Policy development around informal business.  Policy development around identified policies affecting the economic environment of the municipality

THRUST 2: SMME & COMMUNITY BUSSINESS SUPPORT

PROGRAMMES PROJECTS & DEVELOPMENT FACILITATION

Development Facilitation

 Promote manufacturing of arts & crafts by local people, e.g. gemstone ornaments, and facilitate access to arts & crafts skills training  Provide social, health, and educational services, for persons with alcohol dependencies  Support the integration of disadvantaged or hard-to-place workers  Undertake ‘buy local’ campaigns assisting marketing and consumption of local products  Facilitate the development of community support co-operatives Social capital  Encourage local accommodation and restaurant operators in and around renewal and Lichtenburg to purchase the fresh and bottled produce from community community gardens, local manufactured soaps, candles, handiworks, etc. development  Identify opportunities for baking and/or catering for tourism and local initiatives consumption  Develop, expand, diversify and support the NGO sector through the development of a NPO umbrella body.

Projects

 Establish a local youth drop-in centre for youth to explore entrepreneurship and help them identify growth opportunities within local community  Undertake a feasibility for the establishment of refuse buy-back voucher centres, undertake pilot and once successful roll-out to other communities  Establish horticulture and green waste recycling for compost, gardening and animal feed

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 36 THRUST 2: SMME & COMMUNITY BUSSINESS SUPPORT

PROGRAMMES PROJECTS & DEVELOPMENT FACILITATION

 Establish a pilot agriculture community garden and joint production surrounding public owned facilities and roll-out to other communities if proven successful  Establish a pilot community bank and roll-out to other communities if proven successful  Undertake an audit of natural art and craft manufacturing skills through community halls in the different areas  Undertake feasibility for the establishment of an arts and crafts production village with arts and crafts manufacturers, jewellery and ornament incubators, exhibition and workshop stalls and curio shops, etc.  Establish recycled goods manufacturing co-operatives (plastic furniture, gifts/crafts, paper, etc.)  Establish building material manufacturing co-operatives (bricks, bio- degradable materials, and utilisation of district resources such as limestone, copper, manganese and iron ore to manufacturing building materials, etc.)  Establish a bakery, biscuits and sweets processing cooperative  Establish bee farming and honey production co-operatives  Establish community sewing and handiworks co-operatives  Establish candle and soap-making cooperatives

Development Facilitation

 Develop SMME grouping system/clustering along commodity supply chains to facilitate networking & information sharing  Provide support and & facilitate development and effective operation of one dedicated business chamber  Support and promote business visitation programme to support local emerging businesses in association with Business Support Centre  Launch annual entrepreneur of the year competition and annually identify SMME and start-ups in tourism, agriculture, SMME as nominees entrepreneurial  Facilitate the implementation of a SMME village development and  Facilitate the development of investor networks that link entrepreneurs and support financiers (incl. finance institutions, corporate investors and individual investors).  Promote cultural development and acceptance of innovation through engaging in small-scale entrepreneurial competitions with young population  Facilitate the drawing up of public procurement policies to assist local and emerging businesses (regulatory reform)  Assist in lobbying of financial sources  Facilitate business linkages between SMMEs and larger private sector enterprises for financial support

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 37 THRUST 2: SMME & COMMUNITY BUSSINESS SUPPORT

PROGRAMMES PROJECTS & DEVELOPMENT FACILITATION

 Initiate business visitation, customer care and information dissemination to support local emerging businesses  Raise business awareness of local buying by initiating buy-local campaigns  Undertake intensive marketing of the municipal incentive packages (developed as part of this study)  Facilitate establishment of local forums and sectoral discussion platforms, such as a LED, business, industrial forums to facilitate group learning activities, explore joint marketing and networking opportunities, etc.

Projects

 Establish a business/manufacturing incubator to provide support, facilities and training for development of local entrepreneurs to supply local needs  Launch LED opportunities marketing campaign by distributing posters to entice business start-ups in projects identified by LED Strategy  Establish local Business Support Centre for central access to different support agencies, support services, government support services  Establish a tender, business plan, government incentives, local recruitment support desk/centre  Develop, populate and maintain a local business, product and service provider database (business directory) and distribute information to facilitate supplier-client linkages (networking)  Develop an Early Warning System to identify business retention needs  Produce a financial resources (funding) database and distribute

Development Facilitation

 Support recruitment service linked to local farmers and businesses  Draw-up a memorandum of understanding with schools, colleges and training centres to develop and expand curricular to include tourism, agriculture, agro-processing and basic trade related skills  Facilitate access to ABET in liaison with SETAs Skills  Facilitate the development of an annual youth entrepreneurship competition development and  Liaise with educational institutions to promote career opportunities and host mentorship annual job fairs focused on local opportunities to encourage graduating students to obtain local jobs or develop local businesses  Promote training in business ownership and financial management skills through Business Support Centre  Support and promote the establishment of SETA learnership programmes in collaboration with the proposed Business Support Centre and concentrate on ensuring that the various SETAs operate effectively, and demonstrably so,

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 38 THRUST 2: SMME & COMMUNITY BUSSINESS SUPPORT

PROGRAMMES PROJECTS & DEVELOPMENT FACILITATION to raise the human resource and technical skill levels of lower management and labour  Promote and support development of database of experienced mentors to support emerging entrepreneurs in association with the proposed Business Support Centre  Enhance the roles of intermediaries/business consultants to play a stronger role in providing start-up support to entrepreneurs  Facilitate the development of a ‘buddy system’ to connect youth to mature and commercial local companies or retired mentors in association with the proposed business support centre  Facilitate the expansion of further learning centres offering practical courses e.g. home based sewing industries, community gardens, baking, etc.  Facilitate access to improved practical & technical subjects at local schools in tourism, agriculture, SMME development, plumbing, electricians, etc.

Projects

 Establish a construction workers association  Develop database & network of experienced business mentors to support local emerging entrepreneurs  Establish a list of local maintenance and service providers for SMMEs (i.e. accounting, repair, telecommunications, human resources)  Undertake a skills audit to identify skills needs  Establish and maintain an unemployment desk with a skills register. The unemployment desk should support job placements and also include a rating system whereby temporary placed workers are rated

THRUST 3: AGRICULTURE BENEFICIATION AND VALUE-CHAIN DEVELOPMENT

PROGRAMMES PROJECTS & DEVELOPMENT FACILITATION

Development Facilitation

 Facilitate public-private partnerships for development of agro-processing facilities Agro-processing  Support continued marketing and expansion of algae production plant and and value-adding investigation and marketing of other algae plants such as spirulina, and diversification of end-products  Ensure continued discussion with institutions like SEDA and with national Institutions like IDC and DTI to formulate financing mechanisms for the

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PROGRAMMES PROJECTS & DEVELOPMENT FACILITATION establishment of BBBEE farming enterprises founded on principles of PPP and sustainable business

Projects

 Undertake a feasibility to establish fruit processors in fruit producing settlements processing fruit into juice, sun-dried fruits, etc.  Undertake a feasibility to establish nut processing/packaging and the manufacturing of peanut butter  Undertake a feasibility to establish a olive processing co-operative processing olive oil, purees, and other olive products  Undertake a feasibility to establish a livestock meat processing and packing industry  Undertake a feasibility to produce and market sunflower oil on land claim beneficiaries  Undertake feasibility for the expansion and/or revitalisation of cotton production and beneficiation

Development Facilitation

 Implement organic certification and facilitate emerging farmers and co-operatives meeting requirements  Entice communities to start chicken farming, aquaculture production units, cut-flowers, drought-resistant crops, olive farming, cowpeas farming, etc.  Consult with the Department of Agriculture and the Agricultural Self-sustaining Research Council (ARC) to identify genetically modified strains that can and niche- survive harsher climates and state-of-the-art indoor growing methods produce development Projects

 Undertake feasibilities for the establishment of organic and/or hydroponic systems for production of variety of niche products such a mini vegetables, vegetarian niche products, cut-flowers (Amaryllis), etc. for local demand and tourism industry  Undertake feasibilities for production co-operatives practising olive farming.  Undertake feasibility for aquaculture production units.  Undertake feasibilities for production co-operatives producing cowpeas, etc.

Development Facilitation

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PROGRAMMES PROJECTS & DEVELOPMENT FACILITATION

Farmer support,  Promote and facilitate the creation of private commercial enterprises training, and enabling farm workers to empower themselves by providing farm worker inputs & services training, education and social welfare arm development  Bring Commercial Farmers and Cooperatives together through Agri-BEE Partnerships  Liaise with DLA, DOA & other land claim stakeholders for successful implementation of farming activities on land with agricultural potential under settled land claims and ensure continued monitoring, evaluation and support to ensure sustainability  Organise working group among same type livestock owners with assistance from the DoA  Undertake joint ventures with commercial farming enterprises to host agricultural open days/demonstrations  Facilitate access to training for seasonal farmers and farm workers during off- peak seasons  Ensure equitable access to and participation in agricultural opportunities through the National and Provincial Government’s Land Reform Program and the Comprehensive Agricultural Support Program (CASP) and others.  Facilitate provision of information on how to access CASP, LRAD, and other funding  Facilitate development of commercial to emerging farmer mentorships  Promote farmer utilization of extension officers  Initiate shared transport and machinery scheme to support emerging farmers  Facilitate access to water for emerging farmers  Facilitate the acquisition of suitable land for sustainable small farming enterprises through the projects catered for under LRAD.  Promote conversion of livestock to productive and marketable breeds

Projects

 Establish cooperative for hiring of farming implements, small-scale processing equipment, tools and machinery and other equipment  Establish a local manufacturer of agricultural fertilisers (consider local reeds) and pesticides  Develop and implement a livestock improvement & fatting programme scheme

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PROGRAMMES PROJECTS & DEVELOPMENT FACILITATION

Development Facilitation

 Facilitate negotiations with Invest North West, national departments related to the Western Frontier SDI, to negotiate contracts with local SMMEs along value chains and services for this spatial development initiative  Assess whether Lichtenburg might not be able to host a major reputable Freight Forwarding company that will make use of the benefits of the Western Frontier SDI.  Investigate potential and promote opportunities for development of storage & distribution and transport hub or truck stop to facilitate intermodal movement which will take advantage of the proposed IDZ in Mafikeng.  Undertake studies to see how Ditsobotla can take advantage of the IDZ Support large precinct, industrial precinct, airport and cargo-hub precinct which will be anchor developed at the Mafikeng Airport. initiatives and  Research alternative/sustainable manufacturing options and emerging develop spin-off technologies, e.g. renewable energy technologies. opportunities  Promote the manufacturing of suitable air cargo goods specialising in high value-to-weight products, perishable goods, etc.  Facilitate collective agreements with freight forwarders to create a discounted uniform container freight rate for manufacturing firms

Projects

 Promote a hub for the manufacturing of hi-tech electronic components  Develop mineral beneficiation industries which could take advantage of the proximity of the Mafikeng Airport.  Identify and develop SMMEs that will take advantage of processing of agricultural products which could be easily shipped from the Mafikeng Airport.

Development Facilitation Mining exploration,  Undertake investigations to identify untapped resources in processing, and collaboration with DME and geosciences district-wide  Promote mineral deposits to potential investors support  Facilitate financial, funding, and training support for small-scale mining activities

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PROGRAMMES PROJECTS & DEVELOPMENT FACILITATION

 Investigate the potential for the establishment of one or more small mining operations within a cluster of small and larger operations that could co-operate in the utilisation of central beneficiation activities from operations surrounding Lichtenburg  Continually evaluate and negotiate local contracts/procurement procedures to favour local SMMEs in forward and backward linkages along the mining value chain  Facilitate negotiations with management of mine houses to negotiate contracts with local SMMEs along value chains and facilitate the drawing up of supplier contracts with mine houses so that Lichtenburg can develop into a major mining distribution services centre  Monitor the effect and value presented by the S&LP projects at a district-wide level and provide S&LP advice and support  Facilitate in conjunction with the DME, the assessment of the economic viability of the existing mineral, marble & granite deposits.  Establish a database of available land for mining development and identification of who owns the mineral rights in association with DME  Facilitate training programmes with FET and appropriate training providers for training of miners in Lichtenburg in anticipation of future expansion of the mining sector  Facilitate support & mentorship programmes between mining companies and mining entrepreneurs  Ensure local representation in Ngaka Modiri Molema District delegations attending annual mining summits at Provincial and National levels  Negotiate inputs into Social & Labour Plans of mines and facilitate its completion and implementation to ensure local benefit

Projects

 Undertake feasibility for the establishment of slate manufacturing cluster including small-scale slate mining, local slate value-adding etc.  Undertake a feasibility for the establishment of a Colour stone mining co-operative and beneficiation of gemstones  Identify and develop SMMEs that will be supported by mining operations (e.g. transport services, vehicle repairs, retail product suppliers and deliveries, spare parts, protective wear, etc.)

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PROGRAMMES PROJECTS & DEVELOPMENT FACILITATION

 Undertake feasibility for the development of a district-wide mining beneficiation and support hub to support training, S&LP, and mining linkages amongst others.

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This Section sets out the most efficient management structure and the roles and responsibilities involved. Priority projects and development facilitation tasks and actions involved in the implementation of the strategy, with timeframes, financial and other resource requirements also being provided. A mechanism for impact monitoring and evaluation concludes the section.

6.1 Institutional Thrust: Capacity, Partnerships and Human Resources Development Building In order for the Ditsobotla to effectively plan and implement this LED Strategy, it is important that certain institutional arrangements and implementation guidelines be established. The aim of this institutional thrust is to capacitate Ditsobotla Local municipality to be able to perform its LED roles and responsibilities in the most effective way. The programmes forming the basis of the institutional thrust include: Programme 1: Internal LED Capacitation Programme 2: Promote, develop and improve Public Private Partnership Programme 3: Human Capital Development Programme 4: Community Economic Development Focus

6.2 Institutional Framework The formation of an efficient institutional structure is key to the successful facilitation of this LED strategy. It is, therefore, essential that the institutional structure within which local economic development in Ditsobotla Municipality is undertaken is reviewed. The Figure below sets out the existing organisational structure of Ditsobotla Municipality as it pertains to the LED Unit. At present, the LED Unit of the municipality is located under the Strategic Operational Manager under the office of the municipal manager. The head of the LED Unit job description amongst other is:  responsible for the LED unit,  Help with projects in rural and urban areas,  Help with coordination of projects and social issues in the community  Community development  Implementation and maintenance of infrastructure  Promotion of socio-economic communication  Special projects In other words, presently the responsibility for all activities related to LED rests on the shoulders of 1 person. The LED unit is also currently reviving the LED forum which in the past had not been as successful as it could have been. The proposed management structure is shown hereunder.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 45 Figure 5: Proposed management structure for Ditsobotla Municipality LED Unit

The head of the LED Unit (General Manager) will have at least 3 Manager posts. One of these posts will be an LED Investment Facilitator who will also be part of the Municipal Manager’s direct support team. The other 2 managerial posts will be a Programme Coordinator for LED & Trade and a Coordinator for Tourism who will each manage additional posts as indicated in the proposed organogram above. This document will only detail responsibilities of the:  General Manager: LED, Tourism & Trade  Programme Coordinator LED & Trade and the positions managed  Investment Facilitator General Manager: LED Tourism & Trade The responsibilities of the head of the LED Unit would entail functions such as:  Provide Strategic vision, planning expertise and operational leadership required to achieve the department’s goals by providing insight on the economic challenges as well as opportunities and devising strategies on how to address such challenges and harness existing potential to achieve economic growth in town. (Develop vision, mission and outline objectives of the department in consultation with all staff members).  Structure programmes by developing and designing appropriate interventions in the respective focus areas as agreed by Council and delegate authority to Programme Managers by assigning certain tasks to ensure effective communication and efficient operations in the department and throughout Ditsobotla local Municipality.  Participate in planning, implementation and evaluate of the Department’s strategies and procedures by working through various structures such as ward committees, organized Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 46 business, other spheres of Government, parastatals, Non-Governmental organizations, etc. to understand key development priorities, assess impact in the livelihoods of communities and their business ventures and ensure integrated development amongst all role players.  Provide overall management of the sub-sections of Trade and Investment Promotion, Rural and Agricultural Development, Tourism, SMMEs by meeting with relevant managers on a regular basis, reviewing progress and providing strategic guidance to ensure attainment of the Department’s and municipal’s objectives.  Overall maintenance and implementation of various Economic Development and Tourism programs and projects by providing requisite tools and systems as those will create a conducive environment for performance by various Managers. Ensuring that resources such as budget, staff, administrative support, relevant equipment and office space are provided.  Provide overall management of institutional systems for delivery of Economic Development initiatives (implementing Agents) by developing relevant policies/ by-laws to ensure compliance with the prevailing municipal legislative framework such as the Municipal Finance Management Act and the amended Municipal Systems Act. Ensure resources are utilized in accordance with the intended use.  Provide performance management of staff by setting Key Performance Indicators and conducting periodic assessment on development objectives and ensure attainment of the municipal economic development objectives and ensure that the municipality receives a good return on investment through effective and efficient management.  Manage the department’s budget at both planning and monitoring stages. Authorizing expenditure, monitoring over and under-expenditure, ensure compliance with the Municipal Finance Management Act and taking corrective action where necessary to promote good corporate governance, transparency and accountability.  Give support to the Municipal Manager on Economic Development issues by advising him of the economic situation of the municipality as well as necessary steps to be taken in addressing challenges and taking advantage of opportunities to ensure the following: o Economic growth within the municipality o Effective participation of the historically disadvantaged communities. o Development of relevant skills to harness economic opportunities within the municipality. o Sustainable development within the municipality o Promotion of and support of key growth sectors within the municipality o Growth in incomes, reduction of unemployment and improvement of citizens’ livelihoods o Building goodwill amongst the citizens within the municipality  Represent Ditsobotla Local Municipality on International, National, Provincial and Local Economic Development Forums to ensure that there is:

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 47 o Understanding of global economic trends that would eventually affect our local municipality. o Understanding of International co-operation between South Africa and other countries (e.g. Trade Agreements, Technical Support Programmes, etc) o Understanding of opportunities for co-operation with other cities (local and International) within a given scope o Alignment of vision and plans amongst all spheres of government and all key stakeholders. o Sharing of resources for the benefit of the municipality o Sharing of information and expertise o Representation of needs of the municipality o Strategic positioning and extensive marketing of the municipality for purposes of attracting investment and tourists into the Municipality.  Organize and prepare strategic reports and submit to the Economic Development & Tourism Strategic Committee and Council to ensure the following: o The council makes informed decisions on the promotion of economic development within the municipality. o Awareness of programmes and projects by all Councillors and further information dissemination to local structures o Support of such by councillors o Promote transparency o Overall responsibility for skills development of staff within the Economic Development Component by sending them to relevant courses and capacity building exercises to ensure they are able to perform their respective tasks and develop their careers and add value to the Municipality.  Overall responsibility for skills development of staff within the Economic Development Component by sending them to relevant courses and capacity building exercises to ensure they are able to perform their respective tasks and develop their careers and add value to the Municipality.  Develop and manage an Economic Development Strategy for Ditsobotla Local Municipality by conducting a situation analysis based on the existing challenges, opportunities strengths and weaknesses and designing short, medium and long term interventions, resource mobilization strategies, etc. to ensure attainment of economic development objectives. Facilitate the integration of cross-cutting issues in the strategy such as skills development, promotion of Broad Based Economic Empowerment, impact of the HIV/AIDS epidemic on the local economy, preserving indigenous knowledge and environmental issues  Constantly update the council on Economic Development Forum issues in Ditsobotla Local Municipality via the Municipal Manager to ensure sufficient knowledge of the economic status within the city and informed decision making.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 48  Develop policy on Local Economic Development issues and ensure compliance with all prevailing legislative framework to encourage effective participation of previously disadvantaged individuals in the economic mainstream.  Ensure establishment and operationalization of an Economic Development Forum where all stakeholders within Ditsobotla Local Municipality will participate and input into Economic Development issues to ensure alignment, encourage integrated development and avoid of resources through unnecessary duplication. The forum will serve as interactive platform where joint programmes are designed by stakeholders as well sharing information and resources.  Ensure integration of Economic Development plans into the municipal IDP and budget by making input during the planning and consultative phases of the IDP to ensure: o Compliance with legislation o Leverage of support from other Directorates within the municipality o Input is obtained from communities and local structures on their economic development priorities o Integration of programmes and projects  Ensure integration with National, Provincial and District plans to leverage resources by disseminating relevant information and actively participating in joint planning exercises and forums. Cultivate a culture of cooperative governance and development amongst all players.  Facilitate broader stakeholders consultation and participation on economic development through establishment of strategic partnerships to ensure broader support of the economic development vision and programmes, establish more networks and linkages to existing initiatives and foster sustainable development.  Mobilizing resources (financial & otherwise) through establishment of networks and partnerships to ensure sustainable economic development  Managing appointed service providers by drafting services level agreements and monitoring performance during project implementation to ensure attainment of agreed upon deliverables.

Project Coordinator LED and Trade  Understanding Foreign Direct Investment by reviewing FDI trends and factors propelling overseas investments and examine how investments location is selected, to ensure that an enabling environment is created for investment within the Ditsobotla Local Municipality.  Review analyses and monitor the global, national and domestic trends of the national and FDI by obtaining and checking economic data on an ongoing basis. Review and identify relevant investment products to market in line with demand through commissioning sector specific research and collaborating with relevant industry players. Provide concrete recommendations and an action plan on the interventions required to realize significant investments in specific sectors.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 49  Review previous research done by comparing such with current trends with In the market and do an up to date analysis and assessment of products and competitors in other localities in order to identify gaps and opportunities. Conduct a comprehensive strengths weaknesses, opportunities and threats of Ditsobotla Local Municipality to focus solely on issues that affect investment promotions to ensure; Determine key issues for the development of lucrative investment climate for the domestic and international services and manufacturing industry in different sectors within the Ditsobotla Local Municipality, to encourage diversification of the local economy.  Identification of investment opportunities by assessing the local potential in various sectors to market in line with the Industrial Development Zone (ELIDZ), Local Economic Development Strategy, SA and Provincial Sectors Growth Strategy and Plans so that opportunities can be considered and acted upon. Clear definition of investment opportunities including Municipality owned assets, Identification of target markets, to inform the decision making process. Assessment of target markets sectoral trends in source province; identification of potential investors (profiling thereof); determining potential investor needs to ensure that sustainable investments are made.  Compile an Investment promotion action plan: concrete recommendations and an action plan on the interventions required to realise significant investment in the identified sectors, to address constraints and to maximize the use of all assets. Outline of an ideal promotion plan for target markets and target investors; identification of the key role players for investment promotion, identification of appropriate investment promotion channels and identification of appropriate investment promotion tools in order to promote sound investments.  Servicing Investors in preparing for site visits, managing the visit programme and the post follow up. Provision of aftercare and support once an investment is in place, to ensure sustainability.  Report on progress to General Manager: Economic Development and Tourism by presenting exception reports.  Align business development and growth strategies with national, provincial and local government strategies; work closely with all Programme Managers within the Department to ensure skills transfer in the area of Trade and Investment Promotion.  Establish networks and effective partnerships with other agencies.  Prepare a profile of potential for growth in medium to big business in the Ditsobotla Local Municipality by gathering, analysing the Municipalities economy and to facilitate the flow of information to the investor, to support investment decisions.  Identify the key constraints on growth by bringing together the analytical work set out and working with business and the community to ensure sound investment decisions.  Assist business growth by promoting effective linkages between large business, the Industrial Development Zone and successful small business to create synergies between local businesses.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 50  Assess the overall progress strategy, programmes and projects by setting measures and targets, and monitoring achievements, identify opportunities and weaknesses and developing responses to enable continuous improvement in policy and performance.  Review annual progress, by reporting in writing to the General Manager on the programme and performance against Annual Plan and budget indicators to enable the General Manager to seek revisions of resources, objectives or indicators.  Contribute to the revision of the IDP , The Annual Plan and the Budget by reviewing programme goals and effectiveness, and preparing proposals for future projects and resource allocations to support the General Manager’s contribution to the compilation of a coherent and sustainable Municipal Plan Budget.  Develop the Programme Managers’ own skills and capacity by participating constructively with the General Manager in the conduct of the Mangers own review, the performance review and a performance agreement for the coming year to enable continuous improvement in service delivery. Investment Facilitator The LED Investment Facilitator will have the responsibility of steering the process of promoting investment opportunities within Ditsobotla Municipality. The successful implementation of this Strategy is also dependant on the coordinated and integrated co- operation between the proposed Investment Facilitator and the various departments within the municipality. The Investment Facilitator should function as a designated implementation officer for local economic development within the municipal structure. The investment facilitator should have the following key focus areas:  The planning and implementation of catalytic economic projects that will contribute to economic growth and diversification across all economic sectors  Marketing and promotion of the economic opportunities in the area, including investment promotion, research, brokerage/matchmaking and aftercare  The provision of Business Support Services In addressing these focus areas, the Investment Facilitator will be responsible for the identification, planning, conceptualisation, packaging, implementation, facilitation, development and monitoring of economic projects and initiatives that are commercially viable and sustainable. The proposed investment facilitator should thus assist with:  Attracting new business and promoting investment in all sectors of the economy.  Enhancing District inward investment.  Promoting and developing business efficiencies and competitiveness.  Implementing projects identified in the LED Strategy, IDP, and any other strategy or programme that Council deems necessary.  Identification, prioritization, planning facilitation and implementation of projects (large and small)  Advising potential business owners on their business proposals  Facilitating funding attainment of projects.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 51  Facilitating partnerships  Marketing  Preparing financials and business plans for business owners Since the proposed investment facilitator is situated within the Office of the Municipal Manager, it is deemed vitally important that the proposed post should function as an Autonomous municipal champion and as a business support desk and should thus be available at all times and hence not tied up in bureaucratic meetings and administrative tasks. The task of the investment facilitator is to strengthen the capacity of the current LED Unit and resources in place within the municipal area, without using a semi-external body. The Investment Facilitator is thus envisaged to be the focused driver of the investment promotion agenda. Since the Investment Facilitator is placed within the direct support team of the Office of the Municipal Manager, this means that whichever investment opportunities come under direct attention of the municipal manager can be immediately and directly handed over to the Investment Facilitator. The Investment Facilitator can also immediately without delay, and with sufficient clout, power, and authority attend to problems faced by the business sector (e.g. electricity cuts). In other words it is considered important that a specific role for the implementation of projects be created within the direct support team of the Municipal Manager, to ensure that initiatives do not remain only strategies and identified projects, but are followed through onto the ground. Furthermore, other than addressing the hierarchy within the LED Unit, it is relevant to note that it is not sufficient to only increase the number of personnel that is employed, but also that the right personnel with the appropriate qualifications, experience and training is appointed. In this regard, it may be necessary for staff appointed to the LED Unit to undergo specific LED training. This training could include aspects such as the economic theories that underlie local economic development, basic concepts and influences on economies, procedures related to LED, undertaking situational analyses to understand the socio- economic and economic profiles of the Municipality, identifying opportunities and constraints, converting opportunities and constraints into programmes and viable projects, compiling feasibility studies, gaining access to capital and funding, implementing the LED Strategy, Programmes and Projects, monitoring and evaluating the progress, etc.

Economist: LED Controls the critical key performance areas of the functionality and provides input into the broader Local Economic Development objectives, by  Identifying with the key deliverables and immediate goals detailed in the Council’s Integrated Development Plan in respect of the communication, investment, tourism and agricultural dimensions of local economic development.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 52  Mapping out initiatives and interventions necessary for the delivery of a professional and quality service with due consideration given to the needs of the target public and priorities requiring attention.  Providing information based on trends and expected outcomes to facilitate the provisioning for specific activities/ interventions during the functional budgeting process.  Participating in meetings and presenting information and opinions on economic development opportunities and the capability of current marketing initiatives to support strategies and, develop and strengthen relationships within and outside the organization. In order to ensure the functionality is capable of supporting Council’s Local Economic Development objectives through recognition of immediate priorities and longer term interventions. Identifies with key dimensions and opportunities with regards to Local Economic Development, by  Co-ordinating broader based stakeholder workshops to seek ideas, establish priorities and determine strengths, weaknesses and threats.  Formulating plans detailing interventions, actions and timelines guiding the delivery and/ or execution of activities.  Assessing and evaluating Local Economic Development project proposals and applications and preparing reports summarizing findings and including specific recommendations for consideration.  Conducting situational analysis and feasibility studies to assess the impact of specific economic development initiatives and opportunities.  Interacting with the established local business sector to elicit support with job creation and poverty alleviation initiatives. Co-ordinates and executes specific project/ programme requirements and monitors application and outcomes, by  Conducting training to develop understanding and improve capabilities of the local community to participate in economic development initiatives.  Assessing project deliverables against agreed outcomes and milestones and, establishing reasons for non achievement of critical requirements.  `Presenting alternative options to address constraints or bottlenecks in execution phases  Evaluating performance against agreed measures and standards through feedback and situational assessments. In order to ensure Local Economic Development projects contributes to the empowerment of local communities through sustained job opportunities and/ or business potential. Attends to the administrative recording, reporting and recordkeeping requirements/ procedures, by

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 53  Preparing investigational reports and summaries detailing functional progress and/ or outcomes for submission to the immediate superior for consideration and inclusion in specific Committee Agendas.  Compiling notices, agendas and minutes of functional meetings and attending to the circulation.  Updating system information with specific project information and/ or confirming payments due against transactional details and forwarding documentation for processing.  Formulating responses to correspondence and enquires from the general public, Councillors and Officials, referring to policies and resolutions of Council.  Maintaining records of work in progress, notices and correspondence, updating, filing and/ or removing obsolete records and, retrieving information for reference. In order to ensure laid down administrative procedures and reporting requirements are complied with and accurate information disseminated to support specific decisions/ actions In order to ensure assessment of the local situation is taken into account and specific interventions prioritized to support growth in the local economy.

LED Officers The LED Officers are also each suggested to get separate ‘portfolios’ and job descriptions. Due to the economic situation of Ditsobotla municipality, the possibility of one of the development officers being more focussed on agricultural related matters such as the promotion and development of co-operatives should be considered. It is also advised that the four technical thrusts identified in this LED get split between the two officers. The one officer needs to take responsibility for implementing Thrust 1 and 2, namely, Economic Governance of the municipality and SMME and community business support. Whereas the other officer needs to take responsibility for Thrust 3 and 4, namely agricultural beneficiation and value chain development, and maximise and enhance the benefits from strategic location. Functions of the LED Officers should therefore entail: Facilitate community and economic development planning in order to identify and establish economic development opportunities  Facilitate the community and economic development planning process  Establish and support a Community Economic Development Committee  Establish and support economic development sub-committees (i.e. Tourism Committees)  Develop economic profiles of the region and community  Facilitate the development of a community economic development plan including vision, goals and objectives

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 54  Research and provide recommendations on community economic development opportunities  Evaluate results of economic development studies and agreements and make recommendations  Take minutes at meetings and maintain economic development committee files and Reports

Identify opportunities for community economic development in order to development sectors, projects and initiatives • Identify sectoral opportunities for economic development (i.e. mine support, tourism, forestry, arts and crafts, etc.) • Act as a liaison between local organizations, businesses and individuals and representatives of government, business and industry concerning economic development • Develop partnerships within the community to develop and promote opportunities • Assist local organizations, businesses and individuals to take advantage of economic development opportunities and major projects • Assist with the development of job creation projects • Conduct surveys and research on market opportunities • Identify capital development program opportunities • Identify community training and development requirements to take advantage of economic development opportunities  Secure funding for economic development activities and programs • Research private and public sector economic development funding opportunities • Consult with industry and government representatives concerning eligibility requirements for funding • Prepare proposals for funding to support community economic development Assist local organizations, businesses and individuals with establishing economic and community development plans, businesses and projects  Identify opportunities for joint ventures  Assist with negotiations concerning joint ventures  Provide assistance on preparing a business plan  Provide advice on market analysis and economic opportunities  Provide advice on product development and identification of target markets  Identify management capabilities and recommend training requirements

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 55  Determine start up costs, forecast sales and conduct a break even analysis  Assist with financing  Assist with marketing planning  Conduct financial analysis on proposed business plans and opportunities  Provide advice on licensing, taxation and business related requirements  Conduct site visits and monitor business results  Provide after care services such as assisting with bookkeeping, establishing cash controls and providing training  Maintain files and records on local businesses and economic development opportunities

Promote the community in order to expand economic development opportunities  Represent the community at regional, territorial and national meetings and conferences on economic development  Develop community and regional networks  Develop a business registry  Attend trade shows  Develop a communications strategy  Develop sectoral strategies to promote various opportunities (i.e. tourism, arts and crafts, etc.)  Develop brochures and promotional materials  Develop a Community Economic Development Web site  Promote the use of private sector business services  Liaise with industry and government representatives to promote local businesses and individuals Perform other related duties as required.

It is also necessary for the LED Unit’s financial capacity to be improved. The LED Unit should have a dedicated budget for the implementation of LED projects. It is suggested that an annual amount of at least R1 000,000 be made available to the LED Unit to implement viable projects that are able to make a lasting difference in the local economy. A pool fund, is suggested, which is a fund that receives contributions from different agencies, and also internally, to finance a set of budget lines or activities agreed as eligible in support to a sector programme. As such eligibility criteria need to be agreed upon. In the interim this pool fund can be utilised for feasibility studies, etc. It is however, also relevant to note that in undertaking local economic development, the Municipality should make use of external support mechanisms, such as establishing linkages

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 56 beyond the Municipality as part of working with a wider group of stakeholders to advance local economic development in the Municipality. One such mechanism is to establish a dedicated LED forum, which comprises the full spectrum of local stakeholders, including all sectors of the economy, relevant departments and local communities.

6.3 Implementation Guidelines for Priority Focus Areas The following programmes, per thrust, should be prioritised, in no particular order:  Agro-processing and value-adding  Social capital renewal and community development initiatives  Support large anchor initiatives and develop spin-off opportunities However, the projects and facilitation actions per programmes were also prioritised on the basis of the following criteria, namely:  The amount of existing information that was available  The ease of implementation  The impact on the local economy The following projects are proposed from which priorities per thrust can be developed:  Agricultural beneficiation and value-chain development: o Undertake a feasibility to establish fruit processors in fruit producing settlements to processing fruit into juice, dried fruit seed oil, etc. o Undertake feasibilities for production co-operatives producing cowpeas, etc. o Undertake a feasibility to establish a olive processing co-operative processing olive oil, purees, and other olive products o Undertake feasibilities for the establishment of organic and/or hydroponic systems for production of variety of niche products such a mini vegetables, vegetarian niche products, cut-flowers (Amaryllis), etc. for local demand and tourism industry o Undertake feasibility for production co-operatives practising olive farming and roll- out. o Undertake feasibility for aquaculture production units and roll-out. o Develop and implement a livestock improvement programme and fatting scheme  SMME and community business support: o Launch LED opportunities marketing campaign by distributing posters to entice business start-ups in projects identified by LED Strategy o Establish and maintain an unemployment desk with a skills register. The unemployment desk should support job placements and also include a rating system whereby temporary placed workers are rated o Establish a tender, business plan, government incentives, local recruitment support desk/centre o Develop database & network of experienced business mentors to support local emerging entrepreneurs o Produce a financial resources (funding) database and distribute

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 57 o Undertake a feasibility for the establishment of refuse buy-back voucher centres, undertake pilot and once successful roll-out to other communities o Establish a pilot agriculture community garden and joint production surrounding public owned facilities and roll-out to other communities if proven successful o Establish a pilot community bank and roll-out to other communities if proven successful o Establish a business/manufacturing incubator to provide support, facilities and training for development of local entrepreneurs to supply local needs o Establish local Business Support Centre for central access to different support agencies, support services, government support services o Establish a construction workers association o Establish a local youth drop-in centre for youth to explore entrepreneurship and help them identify growth opportunities within local community o Undertake feasibility for the establishment of an arts and crafts production village with arts and crafts manufacturers, jewellery and ornament incubators, exhibition and workshop stalls and curio shops, etc. o Establish bee farming and honey production co-operatives o Establish candle and soap-making cooperatives o Establish a bakery, biscuits and sweets processing cooperative  Tourism related development: o Commission a detailed study to investigate all aspects of the construction and management of an Youth Outdoor Adventure, Development and Training Centre o Develop half/full day guided special interest historical walk/tour to existing heritage resources and monuments. o Identify and develop guided cultural route and township tourism such as ‘Township Walkabout’ including township accommodation, traditional meals, and shebeens/ taverns, etc. o Investigate the possible range of local products for incorporation into a local guided route to rural settlements to open up the settlements to development. Each part of the route should have its own theme and activity such as guided mountain bike trails, quad bike trails, hiking, etc. to the various rural settlements. Essential tourist facilities such as toilets and ‘resting lapas’ and refreshments at road side stalls need to be constructed at strategic points and a feasibility for the development of rural accommodation should be undertaken. o Undertake feasibility for establishment of farm stay/farm vacation developments for community benefit on private farms through PPPs o Undertake a feasibility to establish a game hunting safari cluster  Maximise and enhance benefits from strategic location: o Undertake feasibility for the development of a district-wide mining beneficiation and support hub to support training, S&LP, and mining linkages amongst others. o Undertake a feasibility for the establishment of a mining co-operative and beneficiation of mining raw materials

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 58 The following development facilitation actions are proposed for each priority per thrust:

 Agricultural beneficiation and value chain development: o Entice communities to start chicken farming, aquaculture production units, cut- flowers, drought-resistant crops, olive farming, cowpeas farming, teff farming, cassava farming, etc. o Consult with the Department of Agriculture and the Agricultural Research Council (ARC) to identify genetically modified strains that can survive harsher climates and state-of-the-art indoor growing methods o Promote and facilitate the creation of private commercial enterprises enabling farm workers to empower themselves by providing farm worker training, education and social welfare arm o Bring Commercial Farmers and Cooperatives together through Agri-BEE Partnerships o Liaise with DLA, DOA & other land claim stakeholders for successful implementation of farming activities on land with agricultural potential under settled land claims and ensure continued monitoring, evaluation and support to ensure sustainability o Facilitate access to training for seasonal farmers and farm workers during off-peak seasons o Facilitate development of commercial to emerging farmer mentorships o Initiate shared transport and machinery scheme to support emerging farmers o Facilitate access to water for emerging farmers o Facilitate the acquisition of suitable land for sustainable small farming enterprises through the projects catered for under LRAD. o Promote conversion of livestock to productive and marketable breeds  SMME and community business support: o Undertake ‘buy local’ campaigns assisting marketing and consumption of local products and encourage local accommodation and restaurant operators in and around Lichtenburg to purchase the fresh and bottled produce from community gardens, local manufactured soaps, candles, handiworks, etc. o Facilitate the development of community support co-operatives o Provide support and & facilitate development and effective operation of one dedicated business chamber o Launch annual entrepreneur of the year competition and annually identify start-ups in tourism, agriculture, SMME as nominees o Facilitate the implementation of the proposed SMME village o Assist in lobbying of financial sources o Initiate business visitation, customer care and information dissemination to support local emerging businesses o Undertake intensive marketing of the municipal incentive packages (developed as part of this study) o Facilitate establishment of local forums and sectoral discussion platforms, such as a LED, business, industrial forums to facilitate group learning activities, explore joint marketing and networking opportunities, etc.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 59 o Facilitate the development of a ‘buddy system’ to connect youth to mature and commercial local companies or retired mentors in association with the proposed business support centre  Tourism related development: o Facilitate development of large scale facilities in the area: e.g. waterfront development at the lake, beauty spa’s overlooking the lake, etc. o Promote and facilitate the sustainable development, use and PPP of current public facilities o Facilitate the development of Lake-related recreational opportunities o Facilitate the funding of major tourism projects that would have considerable impacts on the development of the Ditsobotla tourism sector o Facilitate a private sector familiarisation tours for current tourism establishments so that they get to know there area and what is on offer as they are able to be well informed to inform tourists of local offerings o Facilitate access to appropriate training, conservation programmes and accreditation for site guides, emerging product owners & activity operators o An effort should be made to revive interest amongst the agricultural community in allowing tourists to visit farms and other places of interest involved with the planting, harvesting, packaging and processing of produce. o Facilitate development of overnight farm stays (cottages, traditional farmhouses) through PPP initiatives  Maximise and enhance benefits from strategic location: o Facilitate the development of the cultural precinct, industrial precinct, manufacturing hub etc. o Promote the manufacturing of suitable goods specialising in high value-to-weight products, perishable goods, etc. o Undertake investigations to identify untapped resources in collaboration with DME and geosciences o Facilitate financial, funding, and training support for small-scale mining activities o Facilitate in conjunction with the DME, the assessment of the economic viability of the other existing mineral deposits for BEE beneficiation o Establish a database of available land for mining development and identification of who owns the mineral rights in association with DME o Facilitate training programmes with FET and appropriate training providers for training of mine workers in anticipation of future expansion of the mining sector

6.4 Summary of costs and budget roll out for proposed activities Through analysis and some minimum consultation, the table below provides a summary of proposed high priority projects which can be dealt with almost immediately. However these

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 60 and the proposed allocated capital requirements are subject to the in-depth consultation with other stakeholders and role players. Table 16: Summary of priority anchor projects and facilitation actions Project name Approximate Municipal Implementation Total capital facilitation budget municipal requirements budget (if implemented budget internally) (if Priority implemente d internally) LED opportunities posters 1 R100 000 per R0 R0 R0 and investment incentives annum from booklets and marketing sponsors campaign Land claims support 2 Type R0 R0 R0 dependant Labour and business 3 MSR NGO and R0 R0 R0 support desk internal Manufacturing incubator 4 R3 000 000 Feasibility R200 000 R200 000 done as part of LED Outdoor water based 5 R2 700 000 Feasibility R200 000 R200 000 recreational rental hub done as part of LED Integrated aquaculture 6 R1 000 000 R50 000 R150 000 R200 000 and irrigation production units Community refuse buy- 7 R500 000 R150 000 R0 R150 000 back voucher centres Fruit processing clusters 9 R1 200 000 R50 000 R150 000 R200 000 Community bank, garden, 10 Member R250 000 R0 R250 000 and support co-operatives contributions Bee farming and honey 11 R1 000 000 R50 000 R100 000 R150 000 production co-operative District wide mining 12 Type of mining R200 000 R0 R200 000 beneficiation and support related entities station attracted dependent Lake adventure arch 13 R1 000 000 R50 000 R150 000 R200 000 Farm stay accommodation 14 R1 500 000 R50 000 R100 000 R150 000 Olive processing co- 15 R3 250 000 R50 000 R150 000 R200 000 operative Support large anchor 16 Type of spin-off R0 R0 R0 initiatives and develop activities spin-off opportunities dependent Slate production cluster 17 R800 000 R50 000 R100 000 R1500 000 and related activities Game hunting safari hub 18 Type attracted R100 000 R0 R100 000 dependent TOTAL R1 050 000 R1 300 000 R2 400 000

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 61 The table below provides an indication of budget roll-out for project implementation from the LED unit. Table 17: Budget roll-out for implementation of priority LED projects

PRIORITY PROJECT BUDGET (in RANDS) PER FINANCIAL YEAR

2015/16 2016/17 2017/18 2018/19 2019/20 LED Poster and investment Sponsors incentives campaign Land claims support Internal and facilitation with DoA Labour and business Internal support desk Manufacturing incubator Feasibility done R200 000 as part of LED Outdoor water based Feasibility done recreational rental hub as part of LED R200 000 Integrated aquaculture and irrigation production R50 000 R150 000 units Community refuse buy- R150 000 back voucher centres Fruit processing clusters R50 000 R150 000 Community bank, garden, R200 000 R50 000 and support co-operatives Bee farming and honey R50 000 R100 000 production co-operative District wide mining beneficiation and support R200 000 station Orange river adventure R50 000 R150 000 arch Vineyard farm stay R50 000 R100 000 accommodation Olive processing co- R50 000 R150 000 operative Support large anchor initiatives and develop Internal spin-off opportunities Salt production cluster and R50 000 R100 000 salt rock art sculptures Game hunting safari hub R50 000 Total project R450 000 R350 000 R500 000 R500 000 R500 000 implementation

6.5 Monitoring and Evaluation Matrix Monitoring and evaluation (M&E) should be considered during each step of implementation and not as a specific “add-on” conducted only at the end of the process.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 62 The following indicators are proposed:  LED implementation index: The indicators utilised as performance proxy for the performance of the LED unit are: o The number of LED projects successfully implemented o The number of LED actions per programme successfully facilitated o The number of direct permanent employment opportunities created o The number of direct temporary employment opportunities created  Agricultural beneficiation and value-chain development index: The following proxies are used to measure this index: o Agriculture Sector GDP o Agriculture Sector Employment o Agro-processing GDP o Agro-processing Employment  SMME and community business support index: The proxies used for measuring self- sustaining SMME and community economic development of Ditsobotla are: o Number of new co-ops registered at the registrar of co-operatives o Number of LED projects successfully implemented in rural areas o Number of direct permanent employment created in rural areas o Number of direct temporary employment created in rural areas  Tourism related development index: The following indicators are used as proxies to measure the success of the LED in increasing community benefit and SMME spin-offs from tourism development, namely: o The number of tourism spin-off SMMEs/community projects successfully implemented o The number of tourism spin-off actions per programme successfully facilitated o GDP growth for catering and accommodation o Employment growth for catering and accommodation  Maximise and enhance benefits from strategic location index: The following indicators are thus used to measure the success of the LED Unit in implementing this Thrust: o Overall GDP o Overall Employment o Tress Index for GDP o Number of actions successfully facilitated o The number of mining spin-off SMMEs/community projects successfully supported/implemented

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 63 Figure 6: Monitoring and Evaluation Framework

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 64 7 INCENTIVE PLAN

The purpose of this section is to outline available incentive schemes on a national level and highlight the prospects for financial and non-financial investment incentives in Ditsobotla LM which could be introduced in the area to retain existing businesses and to attract new businesses.

7.1 Introduction and Background to Incentives The word ‘incentive’ is not clearly understood and thus sometimes used in different context by different people. Generally, economic incentives are referred to as cash payments or ‘tax breaks’, however, the word itself has a broader meaning: ‘Incentive is the direct or indirect cost or benefit used by government that changes behaviour by motivating a decision or action by consumers, businesses or other participants in the economy which would not otherwise have taken place in order to attract and retain companies and facilities for the purpose of promoting development of the economy and increasing social welfare’.

7.2 Legal Considerations One of the important legal aspects to incentives is the Municipal Finance Management Act No. 56 of 2003 (MFMA), which became effective in July 2004 and is supported by the annual Division of Revenue Act. This legislation has been aligned with other local government legislation, such as the Structures Act, Systems Act, Property Rates Act and their regulations, to form a coherent package. National Treasury's primary objective is to secure sound and sustainable management of the financial affairs of government, national, provincial and local, and to lead such policies and reforms. This entails supporting the development of a coherent approach that assists in the improvement of delivery of services to communities. The MFMA aims to modernise budget, accounting and financial management practices by placing local government finances on a sustainable footing in order to maximise the capacity of municipalities to deliver services to communities. It also aims to put in place a sound financial governance framework by clarifying and separating the roles and responsibilities of the council, mayor and officials. The MFMA is required by the Constitution, which obliges all three spheres of government to be transparent about their financial affairs. It also forms an integral part of the broader reform package for local government, as outlined in the 1998 White Paper on Local Government. MFMA provisions and implications relevant to incentives:  Avoidance of financing of recurrent expenditure through borrowing  Extensive reporting requirements  Formal and open budget development processes  Requires development of complex skills-set

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 65  Abolition of RSC levies: o Income from RSC levies equivalent to 41-56% of property tax, and were more buoyant o R24 billion has been appropriated from the national budget to replace the RSC levies during an interim three year phase, but this should not become long-term The MFMA, in section 14, states the following with regards to disposal of capital assets:  Municipality may not transfer ownership as result of sale of capital asset needed to provide the minimum level of basic municipal services  Municipality may transfer ownership, but only after municipal council, in meeting open to public: o Decides on reasonable grounds that the asset is not needed to provide minimum level of basic municipal services o Has considered fair market value of the asset and economic and community value to be received in exchange for asset  Any transfer of ownership must be fair, equitable, transparent, competitive and consistent with supply main management policy According to the South African Cities Network (2008) municipal partnership options have been severely constrained by the MFMA. The MFMA has had certain unintended consequences regarding the ability of local governments to work in partnership with the private sector to facilitate complex property developments. Many recent township investments have taken place as a result of partnership agreements and institutional arrangements which were concluded prior to the MFMA and would not be currently possible. However, according to the South African Cities Network (2008) municipalities should relax their interpretation of section 14 of the MFMA, particularly when the projects under consideration have significant public benefit. The intention of the legislation was perceived to proscribe the entrepreneurial use of public land by preventing the sale of land below market value and prohibiting one-on-one transactions through joint ventures. Yet the MFMA does not necessarily have to be a prohibitive constraint. This view is supported by a recent court decision (Waterval JV Property Company (Pty) Ltd v City of Johannesburg, 2008) which found that the sales price of public land should only be informed by market prices, rather than being determined by it. In the judgement the court found that the intention of section 14 (2) is to authorise council to deal in property owned by it, provided that certain norms and used to determine the decision-making process. Provided that council complies with these norms, a valid sale takes place. The court maintained that it is incurred to state that there is a generalised prohibition against selling land at less than market value. All that is required is that the council consider the fair market value when weighing up whether or not to sell the asset, and if so, for how much. Section 14 (2) is broad enough to authorise a council to donate property if though that some commensurate community value will be derived from doing so.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 66 7.3 Background to National Investment Incentives It needs to be noted that the proposed incentives of Ditsobotla municipality are to be implemented within another context; i.e. the existence of incentives offered by National Government departments. The dti provides numerous incentives to potential investors. Incentive schemes are grouped into six categories:  Investment support  Small business development  Increasing competitiveness  Innovation and technology  Export assistance  Industrial development zones

7.4 Local Investment Environment The following table outlines sets of key criteria applicable to each sector against which the local economy is expected to be evaluated by potential investors. For each sector, the table indicates the level of importance of each criterion in the decision-making on the scale of low, medium, and high. It also provides information on the level of performance of the Ditsobotla LM with regard to each criterion, thus providing information on the weaknesses and strengths of the local economy. Table 18: Investment Assessment rating

Level of importance in decision making Set of criteria Ditsobotla scorecard Agric. Mining Manuf. Other Availability of skilled labour Low Medium High High Low

Availability of serviced sites Low Low High Medium Low

Availability of land High High Medium Medium Medium

Access to electricity High High High High Medium

Access to water High High High High Medium

Access to telecommunications Medium High High High Medium

Access to railroads Low High High Low High

Access to ports (air, sea, inland) Medium High High Low High

Transportation network Medium Medium High High Medium

Proximity to markets Medium Low High High Medium

Access to raw Low High Medium Low Low materials/suppliers

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 67 Level of importance in decision making Set of criteria Ditsobotla scorecard Agric. Mining Manuf. Other Conducive climate High Low Low Low Medium

Availability of schools, clinics, Medium High High High Medium etc.

Entertainment/shopping Low Low High High Medium

Quality of life Medium High High High Medium

Availability of incentives High High High High Low

Co-operation of government Low High High Medium Medium

Given the information presented in the above table, it can be summarised that Ditsobotla LM needs to concentrate on addressing the following constraints:  Availability of skilled labour  Provision of serviced sites and land  Breaching the divide between the local producers and markets  Provide incentives or a competitive package of rates and taxes  Promote a pro-business government It is however also relevant to analyse the capability of Ditsobotla Municipality in supporting local businesses and attracting new investment. See below Table. Table 19: Investment promotion capacity review

Component Ditsobotla LM

Incentive Package No

Investment Promotion Centre No

Promotional material Limited

Database of potential investors No

Business support provided Limited

The above table highlights that Ditsobotla is unable to offer support to local businesses, attract new investors, and to market the area properly. The municipality does not have a dedicated Investment Promotion Centre, no incentive packages are available for potential investors, municipal tariffs do not distinguish between different businesses and do not offer discounts to local businesses, no database of potential investors exists, effective promotional material is lacking, and marketing activities are generally limited to exhibitions and summits.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 68 7.5 Potential Investment Incentives for Ditsobotla Local Municipality Currently, eligible businesses in Ditsobotla LM can apply for national incentives. The challenge for the municipality is however to create a supportive environment for industries to access these schemes successfully. As such information dissemination, application support, business mentoring and after-care are required. The municipality should thus play a facilitating role to ensure that businesses and prospective investors can have access to these incentives. Key tasks include:  Undertake information dissemination by advertising and promoting National incentives,  Provide necessary support for applications such as to provide application forms to businesses and prospective investors  Provide the contact details of the respective responsible officers at the dti  Provide mentoring, follow-up and after-care support to the businesses In addition to National Incentives, a summary of the proposed local incentives is provided below. Table 20: Summary of incentives per area

Priority LED area Development Detail – target sector and timeframe incentives available

1. Industrial  Property rates rebates  Available to SME start up business primarily areas engaged in: o Agri-value chain activity, o Niche agricultural products, o Manufacturing and beneficiation entities, o Services orientated entities, o ‘green’ and ‘brown’ industries’ o Community owned entities e.g. co-operatives in rural settlements o New start-ups in transport and logistics, solar power, district-wide mining support, new technology, etc.  Available for the first three years of operation.  Councils discretion – suggestion: 45% reduction first year, 25% reduction 2nd year and 10% reduction 3rd year

 Available to SME start up business primarily  Reduction in engaged in activities as detailed above. municipal service charges  Councils discretion – suggestion: 45% reduction first year, 25% reduction 2nd year and 10% reduction 3rd year

 Land offered at market rate  Land concession

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 69 Priority LED area Development Detail – target sector and timeframe incentives available

 Municipality to subsidise transfer and registration costs, approvals of building plans, rezoning, and legal contracts, etc.  Available to new business primarily engaged in activities as detailed above.

2. Other  Property rates rebates  Available to SME start up business primarily township and engaged in: business o Tourism township infrastructure areas in Lichtenburg development start-ups and other o New catalytic tourism firms towns o Community owned or PPP retail and services orientated entities o New start-ups in transport and logistics, solar power, district-wide mining support, new technology, etc.

 Available to SME start up business primarily  Reduction in engaged in activities as detailed above. municipal service charges  Councils discretion – suggestion: 45% reduction first year, 25% reduction 2nd year and 10% reduction 3rd year  Free 1st 6 months free rental of office space  Land concession to municipal property, which are not occupied for three months or more  Donate land to non-profit organisations

3. Rural  Property rates rebates  Available to SME start up business primarily settlements engaged in: o Agri-value chain activity, o Niche agricultural products, o Manufacturing and beneficiation entities, o Community owned entities e.g. co- operatives in rural settlements o Tourism township infrastructure development start-ups o New catalytic tourism firms and tourism activities  Available for the first three years of operation.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 70 Priority LED area Development Detail – target sector and timeframe incentives available

 Councils discretion – suggestion: 45% reduction first year, 25% reduction 2nd year and 10% reduction 3rd year  Available to SME start up business primarily  Reduction in municipal service engaged in activities as detailed above. charges  50% reduction in first year of operation and 25% for following two years.  Councils discretion – suggestion: 45% reduction first year, 25% reduction 2nd year and 10% reduction 3rd year  Municipal land required for land reform to  Land concession be transferred to beneficiaries of land reform project for nominal amount.  Non serviced land under 100m2 could be given at a nominal fee or leasehold. Connection fees for services can be negotiated.  Donate land to non-profit organisations

4. All areas  Municipal facilitation  Information service available to all potential of access to incentives investors – focus on target sectors. offered by national and provincial government and their agencies.

 Structured package  Firm has a significant contribution to make in depending on terms of job creation and investment requirements inflows.

The incentive scheme should commence on its date of adoption by council. It will thus not apply retrospectively. Council may further determine any deviations to the scheme.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 71 8 Projects Identified by Communities

WARD 15 TLHABOLOGANG FLAGSHIP PROJECTS: FARMING, MANUFACTURING & SERVICES 1. Candle Making 9. Abattoir & Butchery 2. Salon 10. Commercial Gardening 3. Artisans 11. Coligny Youth Centre (Existing) 4. Informal Tuck-shop 12. Dry Clean & Car wash 5. Morgue 13. Pottery/Entertainment 6. Garden Service 14. Brick Making 7. Poultry 15. Artisans 8. Piggery 16. Sewing 17. Security Services

WARD: 14 VENUE: WELVERDIENT CARLISONIA FLAGSHIP PROJECTS: DIAMOND, MANGANESE MINING & SERVICES 1. Brick Making 5. Poultry 2. Mining 6. Sell Clothes 3. Tuck-shop –General Dealer 7. Tailor 4. Traditional Beer/Tavern

WARD 12 VENUE: SHIELA FLAGSHIP PROJECTS: FARMING & SERVICES 1. Brick Making 7. Butchery& Sheep Rearing 2. Selling Clothes 8. Mechanic 3. Food Services/Catering /Bakery 9. Electronics/Electrical 4. Crop Farming/Garden Appliances Repair 5. Salon 10. Petrol Attendants Training 6. Carpentry, Plumbing, Painting 11. Shebeen/Tavern & Welding 12. Poultry

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 72 WARD 14 VENUE: BAKERVILLE 1. Food Services 6. Piggery, Goat & Cattle Farming 2. Diamond Mining 7. Sewing 3. Crop Farming (Vegetable) 8. Sport & Recreation 4. Artisans 9. Special Request: Covered ground 5. Garden Services 10. Recycling

WARD 1 BOIKHUTSO FLAGSHIP PROJECTS: FARMING, SERVICES & MANUFACTURING 1. Selling (Clothes, etc.) 6. Crop Farming 2. Sewing 7. Food Services 3. Financial Services 8. Artisans (Electrician, Carpenter, 4. Brick Making Bricklayer, Plumber) 5. Butchery

BOIKHUTSO EXT FLAGSHIP PROJECTS: SERVICES, BAKERY 1. Selling Ice cream 7. Steel Production 2. Scaffolding 8. Community Garden 3. Fitness/Sport & Recreation 9. Car Wash Centre 10. Upholstery 4. Tavern 11. Tailoring Sewing 5. Bakery 12. Catering 6. Cell phone Repairs

WARD 10 VERDWAAL 1 FLAGSHIP PROJECTS: FARMING & ARTISANRY 1. Poultry & Piggery 4. Early Learning Centre 2. Community Garden 5. Car Wash& Heavy Electrical 3. Sewing 6. Animal Farming 7. Upholstery 12. Garden Service 8. Mechanic 13. Plumbing 9. Brick Making 14. Welding & Glass Fitting 10. Catering 15. Cleaning 11. Carpentry

WARD 15 TLHABOLOGANG FLAGSHIP PROJECTS: BAKERY, FARMING, ARTISANRY 1. Spray Painting 9. Electricians 2. Security Services 10. Artisans (Builders, Tillers, 3. Candle Making Painters, Welders & Carpenters) 4. Bakery 11. Garden Services 5. Poultry 12. Salon 6. Piggery 13. Dry Cleaners 7. Brickmaking 14. Car Wash 8. Sewing

WARD 16 COLIGNY FLAGSHIP PROJECTS: SERVICES 1. Food Services 3. Construction 2. Butchery 4. Events

WARD 03 BOIKHUTSO FLAGSHIP PROJECTS: ARTISANRY, FARMING, COMMERCE & SERVICES EXISTING INITIATIVES 1. Steel Production 8. Clothing Sales 2. Glasswork 9. Plastering 3. Tailoring Sewing 10. Ice cream 4. Panel beating 11. La Vita Products 5. Electricians 12. Upholstery 6. Building Pipefitting 13. Carpentry 7. Artisan 14. Bakery

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 74 15. Gemmed Day Care 23. Pothole Repairs 16. Tuck-shop Piggery 24. Financial Service 17. Catering 25. Menoto (food) 18. Puncture 26. Commercial Farming 19. Achaar 27. Wood & Coal 20. Boilermaker 28. Shoemaker 21. Plumbing 29. Cell phone Repairs 22. Scaffolding

FUTURE INITIATIVES 1. Poultry 9. Internet Café 2. Boiler Chicken 10. Brickmaking 3. Fuel Station 11. Driving School 4. Fitment Centre 12. Scaffolding 5. Sports Centre(Boxing) 13. Photography 6. Tavern 14. Bicycle Repairs 7. Old Age 15. Cleaning Service 8. Disabled Care Centre

WARD 02 BOIKHUTSO FLAGSHIP PROJECTS: LIME QUARRY, TAR MIXING PLANT, ROAD MAINTENANCE & MANUFACTURING 1. Events 11. Textile 2. Textile 12. Co-operatives Support 3. Road Maintenance/Potholes 13. Infrastructure Dev Repairs 14. Bakery, Contradicted for 4. Knitting & Sewing(need feeding scheme etc. formalization) 15. Local Involvement 5. Sustainability Projects 16. Road Maintenance/Potholes 6. Projects Repairs 7. Future Initiatives 17. Knitting& Sewing (Need 8. Disabled(Disabled Formalization) care)apparatus Repairs 18. Tar Mixing Plant (Dormant) 9. Sports Centre (General) 19. INFO CENTRE 10. Agricultural Hubs 20. Quarry (Lime; Cement)

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 75 21. Disposable& Toilet Paper 24. Garden Services Manufacture 25. Piggery; Poultry 22. Confectionary 26. Brickmaking 23. Florist

WARD 12 SHEILA FLAGSHIP PROJECTS: FARMING, ARTISANRY & COMMERCE EXISTING INITIATIVES 1. Food Services 7. Shebeen 2. Electrical Services 8. Clothing Sales 3. School Tuck shop 9. Plumbing 4. Crop Farmer 10. Plastering, Painter 5. Electronics 11. Brick maker 6. Mechanic 12. FUTURE INITIATIVES 1. Poultry 6. Petrol Attendant Training 2. Mechanic 7. Welding; Wire Fencing 3. Abattoir-Sheep Rearing 8. Catering 4. Car Wash 9. Bakery 5. Co-operative 10. Brick Maker

WARD 7 ITSOSENG FLAGSHIP PROJECTS: FARMING & MANUFACTURING EXISTING INITIATIVES 1. Crèche 5. Sewing (Support) 2. Garden Maintenance 6. Electricity, Tiling 3. Fine Arts 7. Carpenter (Support) 4. Silkscreen Printing 8. Sculpturing FUTURE INITIATIVES 1. Crop Farming 4. Media 2. Warehousing 5. Piggery 3. Poultry 6. Music Production

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 76 7. Tissue& Candle Manufacture 8. Bakery

WARD 14 RIETVLEI FLAGSHIP PROJECTS: SLATE MINE, ROAD MAKING, BUILDING HOUSES 1. Health Issue 5. Local Involvement 2. Dirt Road 6. Poultry 3. Road maintenance 7. Graveyard Maintenance 4. Environmental Issues

GRASFONTEIN WARD 14 FLAGSHIP PROJECTS: DIAMOND, MANGANESE MINING & FARMING 1. Farming 8. Dressmaking 2. Nursery (HBC) 9. Brick makers & Builders 3. (Itereleng HBC) 10. Plumber 4. Poultry(Tshwaraganang) 11. Welders 5. Registered 12. Carpenters 6. Diamond Mining 13. Electricians 7. Individuals 14. Tuck-shop

WARD 1 BOIKHUTSO FLAGSHIP PROJECTS: FARMING & COMMERCE 1. Abattoir (registered) 4. Clothing Food Services 2. Crop Farmer—Botala Veg & 5. Sewing Poultry 6. Brickmaking 3. Carpentry, Electricians & Bricklayers

WARD 14 BAKERVILLE FLAGSHIP PROJECTS: DIAMOND MINING, RECYCLING & FARMING 1. Artisans 4. Recycling 2. Garden Services 5. Diamond Mining 3. Creative 6. Sewing

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 77 7. Community Garden 9. Cattle Farming 8. Piggery & Goats

WARD 16 TLHABOLOGANG FLAGSHIP PROJECT: TAAIBOSCHSPRUIT DAM DEVELOPMENT 1. Piggery and Poultry 5. Security 2. Development of Taaiboschpruit 6. Home Based Care Dam 7. Recreation centre- Old People 3. Agisang- Construction, 8. Events Electrician, Builder, Welfare, Management/Recreation Carpenter, Tiling, Welding etc. 9. Crop Farming/Commercial 4. Food Services/Informal Tuck- farming shop/Butchery/Catering

WARD 01 BOIKHUTSO FLAGSHIP PROJECTS: TAR MIXING PLANT, MANUFACTURING & FARMING 1. Event Management 8. Piggery/Poultry 2. Disabled Apparatus Repairs 9. Transport 3. Brick Making 10. Paving and Tar Maxing Plant- 4. Florist decoration and Catering Road maintenance and Pothole patching 5. Toilet paper- Pamper Production 11. Textile 6. Bakery- confectionary 12. Sports and Recreation centre 7. Garden services/Maintenance 13. Agricultural hubs

WARD 12 ITSOSENG FLAGSHIP PROJECTS: MANUFACTURING, LOGISTICS & FARMING 1. Warehouse for general storage 7. Sewing T-Shirt Printing 2. Kotulo Vegetable Production 8. Crèche 3. Garden Service (Maintenance) 9. Poultry& piggery 4. Tolo Tobias Bakery 10. Sports Recreation Music 5. Electricity Tiling& Carpentry Production 6. Toilet roll& Candle Manufacturing 11. Arts-Sculpture & Fine Arts

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 78 WARD 13 PUTFONTEIN FLAGSHIP PROJECT: CROP & STOCK FARMING 1. Piggery 3. Sewing 2. Dairy 4. Vegetable garden

WARD 17 KGOMOLA FLAGSHIP PROJECTS: ARTISANRY & SMALL SCALE FARMING 1. Electrical (Electronics) 6. Artisan – Welding, Carpentry, 2. Knitting/Sewing (Plastics) Bricklaying, Tiling, Roofing, Plumbing 3. Artwork 7. Salon (Hair) 4. Vegetable Garden 8. Poultry 5. Petrol Mechanic

WARD 19 MEETMEKAAR FLAGSHIP PROJECTS: FARMING & MANUFACTURING 1. Service development / Youth 10. Artisans centre 11. Brick making 2. Street names 12. General dealer 3. Bakery and catering 13. Pampers, pads and tissue 4. Poultry making 5. Piggery 14. Knitting and sewing 6. Artisans- carpentry, Bricklaying 15. Crèche 7. Cleaning and maintenance 16. Chalk making 8. Cattle farming (Dairy) 17. Candle and Polish making 9. Vegetable garden

WARD 21 ITEKENG FLAGSHIP PROJECTS: FARMING & MANUFACTURING 1. Artisans-Welding, Carpentry, 3. Ward 21 – bakery/catering Tiling, roofing 4. Morgue/Mortuary 2. Ward 21- support group (Care- 5. Crop farming givers)

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 79 6. Piggery 13. Home based care 7. Sewing 14. Bakery and Catering 8. Poultry 15. Primary Cooperatives (Agriculture) 9. Brick making 16. Garden services 10. Construction 17. Library 11. Vegetable garden 18. Animal farming (Cattle and Sheep) 12. General dealer (tuck shop) 19. Home Based Care

WARD 21 GAMALOKA FLAGSHIP PROJECTS: FARMING 1. POULTRY- Egg and Meat 4. Vegetable garden 2. Piggery 5. Cattle farming- meat and milk 3. Sewing 6. Crop farming

WARD 19 MATILE 2 FLAGSHIP PROJECTS: CROP AND ANIMAL FARMING, GRAVEYARD UPKEEP & BAKERY 1. Arts and Crafts (Handcrafts) 9. Youth centre 2. Crop/Vegetable farming 10. Multi-Purpose centre/ 3. Early Learning centre telecommunication centre/public 4. Artisans-Welding, tiling, phones/Library/Internet café carpentry, brick laying 11. Graveyard maintenance 5. Sewing 12. Upholstery 6. Poultry/Piggery 13. Brickmaking 7. Catering/Bakery 8. Graveyard maintenance

WARD 13 NKAIKELA FLAGSHIP PROJECTS: MANUFACTURING, RECYCLING, FARMING 1. Stock Farming 5. Crop farming 2. Poultry 6. Recycling 3. Sports and Recreation 7. Fence 4. Artisans/Wood mill repairs 8. Fencing

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 80 9. Candle making 15. Early learning 10. Security 16. Poultry 11. Crop farming 17. Garden vegetable 12. Tailoring / sewing 18. Piggery 13. Poultry 19. Crop farming 14. Brick making 20. Cattle farming 21.

WARD 21 PHATSIMA FLAGSHIP PROJECTS: ROAD MAINTENANCE & FARMING 1. Crop and animal farming ding,Fitters&Turner,Carpenters 2. Live Technical production ,Bioler Maker aspects (Events 9. Beauty Parlour organisation/sound/stage/light 10. Catering/Bakery s/audio) 11. Stone Masonry 3. Tuck-shop 12. Textile-Screen printing 4. Recreation Centre(Artists) 13. Car wash 5. Crèche (EAC) 14. Poultry 6. Entertainment Centre 15. Orphanage 7. Tailoring/Sewing 16. Road Maintenance 8. Artisan— Electronic,Plumbing,Tiling,Wel 17. Poultry

WARD 10 VERDWAAL 2 FLAGSHIP PROJECTS: MANUFACTURING, ARTISANRY & ABBATTOIR 1. Internet café 10. Recycling 2. Ba –Rua-Kgomo 11. Graveyard 3. Poultry 12. Construction& Manufacturing 4. Nursery 13. Early Learning 5. Bakery 14. Catering 6. Sports and Recreation 15. Electricians 7. Salon 16. Panel Beating 8. Sewing Group 17. Piggery 9. Music Production 18. Tuck shop

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 81 19. Electricity 32. Boiler making 20. Traditional Drinks 33. Photography and Bicycle 21. Fuel Station& ATM Repairs 22. Financial Services 34. Internet Café 23. Building 35. Clothing Sales 24. Boiler Chicken and Poultry 36. Wood and Coal 25. Driving school 37. Potholes Repair 26. Toilet paper; Disposable 38. Disabled and Old Age Care Nappies Manufacturing Centre 27. Cleaning 39. La Vita(Herbal Medicine) 28. Driving school 40. Brick Making 29. Glass works 41. Butchery 30. Plumbing 42. Shoe Maker 31. Pipe ,Water and Sewer Infrastructure

WARD 19 SPRINGBOKPAN FLAGSHIP PROJECT: CROP & STOCK FARMING 1. Foundation drop in centre 9. Cooking oil 2. Artisan-Tilling, Brick laying, 10. Brick making roofing ,carpenter ,ceiling 11. Sewing/bead making ,electrician 12. Poultry/Piggery 3. Life stock 13. Crop farming 4. Goat Farming 14. Vegetable garden 5. Enterprise farming (Individual Farmers) 15. Crèche-Boipelo 6. Poultry 16. Rekadira -Home based care 7. Emerging crop farming 17. Candle making 8. Catering

WARD 13 GA MOTLATLA FLAGSHIP PROJECT: CROP, STOCK FARMING & BAKERY 1. Cattle farming & Piggery 3. Animal weighing for auctions 2. Vegetable garden 4. Bakery

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 82 5. Sewing

WARD 11 PHATSIMA FLAGSHIP PROJECT: FARMING, BAKERY, ARTISANRY & ENTERTAINMENT 1. Crop and Animal Farming 9. Beauty Parlour 2. Live Technical Production 10. Catering/Bakery 3. Tuck-shop 11. Stone Masonry 4. Recreation Centre 12. Textile/Screen-printing 5. Crèche 13. Poultry 6. Entertainment Centre 14. Orphanage 7. Tailoring & Sewing 15. Car was 8. Artisanry

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 83 9 CONCLUSION AND WAY FORWARD

Drawn from this strategy is that Ditsobotla Local Municipality has an abundance of economic options and opportunities for addressing the challenges that it faces and unlocking its economic development potential. With diligent implementation of this LED Strategy, which is rooted in the realities of the area, with a set of logical interventions aimed at enhancing the functionality and desirability of the area, it is expected that Ditsobotla can stimulate economic growth and development of the municipal area. The expected outcomes will be increased employment and income levels, as well as reduced poverty. A critically important aspect in terms of the way forward for the successful implementation of this LED Strategy is to develop the LED unit and fill the posts as described in order to ensure that LED obtains the rightful recognition it deserves. Successful implementation of this LED Strategy urges the need for the proposed institutional Investment Driver to be established as a matter of urgency. This is essential in ensuring that momentum and commitment is not lost, particularly as it could be difficult to turn around and could negatively influence future efforts to initiate similar development initiatives. Secondly if a platform for local investment is to be built it is critical that all stakeholders and parties involved in the LED process take ownership of the programmes and projects identified in this strategy. Most importantly, it requires alignment of different levels of government and government agencies, and a consensus and partnership with the private sector and (often competing) interest groups within the community. The LED Unit alone will not succeed unless the political ambition to ensure success is included in the LED process as a whole. This political ambition can be initiated and developed through the inclusion of all interested and affected parties, stakeholders and role players during the planning and implementation phases through activating and making use of the LED Forum. Through the participation and inclusion of all of these stakeholders, the political will, interest and communication is stimulated, which when combined, will contribute to the success of the strategy. Thirdly, Ditsobotla needs to have a system through which public entrepreneurs can be developed along with their capacity to package projects for funding. It is critical that Ditsobotla assemble an accessible team of officials to consult, to facilitate site visits, with enough time allocated to share information with and facilitate trips with interested investors as recommended through the proposed Investment Facilitator. This is more important than any incentive. At the centre of all successful LED projects, is a project manager, frequently supported by a project team, committed to seeing the project through to the end. Lastly, it is also suggested that the monitoring and evaluation matrix be incorporated into the performance management system so as to ensure accountability and responsibility for the implementation of the LED Strategy. The monitoring and evaluation process is designed to track performance and identify where and when adjustments in implementation at the project level need to be made or where more fundamental changes to the plan vision or objectives might need to occur. The LED strategy should also adapt continuously to respond to the competitive environment.

Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 84 Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 85