CAMDEBOO MUNICIPALITY
LOCAL ECONOMIC DEVELOPMENT PLAN
MARCH 2009
Researched and Compiled by:
Team Members:
Dr Deon Pretorius Dr Anton de Wit Anton Lamprecht Rory Riordan George Mandis Vusi Tshabalala Natasje de Lange Anette Pocock Susan Van Niekerk Kevin Abrahams
In collaboration with:
Leonie Fouche‟ IDP/LED Co-ordinator Camdeboo Municipality TABLE OF CONTENTS
Acronyms 11
Foreword by the Camdeboo Mayor 14
Executive Summary 16
CHAPTER 1 29
Introduction 29
1.1 Cacadu and Camdeboo 29
1.2 Background to Local Economic Development (LED) of Camdeboo 31
1.2.1 Legislative Background 31 1.2.2 Camdeboo Municipality and Thina Sinako 32
1.3 Scope of Work / Terms of Reference 33
1.4 Areas of Work per Result Areas and Activities 36
1.5 Public Participation Strategy 37
CHAPTER 2 40
Local Economic Development (LED) in Perspective 40
2.1 Introduction 40
2.2 Report on Review of Legislation and Models 40
2.2.1 Legislative Background to LED in South Africa 41 2.2.2 Early Difficulties for LED 44 2.2.3 The DPLG and Policy Guidelines for Implementing LED in South Africa 44 2.2.4 Criticism of the DPLG LED Model 47 2.2.5 Pro-Poor LED in South Africa 48 2.2.6 LED and the Policies of Sustainability 49
2 2.2.7 Other Models for LED 51 2.2.8 The World Bank‟s LED Primer 54 2.2.9 Proposed Model / Process for Camdeboo 55
CHAPTER 3 58
Situational Analysis and Other Relevant Statistical Data 58
3.1 Introduction 58
3.2 QOL Focus 58
3.3 QOL Assessment in the Camdeboo Municipality 58
3.4 LED Focus and Assessment in the Camdeboo Municipality 60
3.5 Data Collection 61
3.6 Presentation of the QOL and LED Information 62
3.7 QOL and LED Information - Summary of Results 62
3.8 Business Analysis 74
3.8.1 Introduction 74 3.8.2 The Value of the Information 74 3.8.3 Camdeboo Trade Audit Highlights 74 3.8.4 Business Activities Clustered 75 3.8.5 Sustainable Communities 80
CHAPTER 4 86
Camdeboo Municipality 86
4.1 Introduction 86
4.2 Economic Analysis 86
4.2.1 Background and History – The Karoo in General 87 4.2.2 Sectoral Analysis and Local Economic Assessment and Economic Profile 91 4.2.3 Aberdeen – sectors 92
3 4.2.4 Mohair 94 4.2.5 Small Scale Angora Goat Farming by PDI Farmers 98 4.2.6 Small Scale Beneficiation of Wool and Mohair 100 4.2.7 Conclusions 105 4.2.8 Wool and Lamb/Mutton 106
4.3 Other Agricultural Opportunities for Camdeboo 113
4.3.1 Cattle 114 4.3.2 Ostriches 115 4.3.3 Game Farming 118 4.3.4 Agave 120 4.3.5 Aloe Ferox 123 4.3.6 Camdeboo Bream (Aquaculture) 127 4.3.7 Other Agricultural Opportunities 128
4.4 Tourism in the Camdeboo 129
4.4.1 The Situation Analysis Document 129 4.4.2 The Tourism Sector Plan Document 132 4.4.3 Conclusions 138
4.5 Commercial Goods and Services 138
4.5.1 Graaff-Reinet 138 4.5.2 Aberdeen and Nieu-Bethesda 142
4.6 Government 142
4.7 Industry 142
4.7.1 Karoo Taxidermy 142 4.7.2 Montego Foods 143
4.8 Recommendations 143
4.8.1 Size and Services of the Camdeboo Economy 143 4.8.2 Camdeboo Business Forum 143 4.8.3 Animal Farming 143 4.8.4 Rainfed Crops – Agave and Aloe Ferox 144
4 4.8.5 Irrigated Crops 144 4.8.6 Aquaculture and Aquaponics 144 4.8.7 Tourism 144 4.8.8 Infrastructure 145 4.8.9 Industrial Promotion 145 4.8.10 Aberdeen and Nieu-Bethesda 145
4.9 A Range of Pro-Poor Policies, Strategies and Plans to bring Low-Income Workers and People from Previously Disadvantaged Backgrounds, into the Camdeboo Economy 146
4.9.1 Reviewing Opportunities – Possible Projects Already Mentioned in this Report 146 4.9.2 Policies to Promote Informal Trading 146 4.9.3 S A Revenue Services (SARS) – Relationship Therewith 148 4.9.4 Small Businesses, Money and Management Help 148 4.9.5 Black Economic Empowerment Partners and Deals 148 4.9.6 Learning from Successful Business People 149 4.9.7 Rates Holidays 149 4.9.8 Community Development/Job Creation Projects 149 4.9.9 Opportunities in Education, Health Service Provision 149 4.9.10 Tertiary Education Institutions 149 4.9.11 Business Opportunities 150 4.9.12 Final Advice 150
4.10 LED and IDP Institutional Capacity in the Camdeboo Municipality 151
4.10.1 A Brief Analysis of the Camdeboo Municipality Annual Financial Statements, 30 June 2006, and Related Issues 151 4.10.2 Comparison of Balance Sheets 151 4.10.3 Comparison of Income Statements 151 4.10.4 Some Conclusions 153 4.10.5 A Brief Review of the Camdeboo Municipality Integrated Development Plan (IDP) 2007 - 2012 (1st Review, 28 May 2008) as it refers to Local Economic Development (LED) 154 4.10.6 Municipal Priorities 155 4.10.7 LED in the Camdeboo IDP 156 4.10.8 LED Staff 157
5 4.10.9 LED Projects Listed in the IDP Schedules 157 4.10.10 Comment 157
4.11 By-Laws that Affect Economic Activity 158
4.11.1Liquor Trading Hours By-law 158
4.12 Supply Chain Management Policy 158
4.12.1 Camdeboo‟s Supply Chain Management Policy 158 4.12.2 Camdeboo‟s Preference Points System 158
4.13 One Stop Business Agency 159
4.13.1 Development Agencies 159 4.13.2 Comment 160
4.14 Zoning Scheme 160
4.14.1 The Status Quo 160 4.14.2 Comment 161
4.15 Heritage Protection Policies 162
4.15.1 Status Quo 162 4.15.2 Comments 163
4.16 Availability of Land 164
4.17 The Camdeboo Municipality and Sustainability 164
4.17.1 Water and Sanitation 164 4.17.2 Water and Sanitation Reticulation 165 4.17.3 Maintenance of the Water and Sanitation Asset Base 166 4.17.4 Bulk Water Provision 167
4.18 Camdeboo Municipality – Assessment of Other Municipal Infrastructure 170
4.19 Conclusions 172
6 CHAPTER 5 175
LED Strategy Plan 175
5.1 Strategic Planning 175
5.2 The Current Situation - SWOT Analysis 175
5.2.1 SWOT Definition 175 5.2.2 Camdeboo SWOT 177 5.2.3 Nieu-Bethesda SWOT 180 5.2.4 Aberdeen SWOT 181
5.3 Strategic Areas of Priority 182
5.3.1 Overview: Vision, Sustainable Communities and Strategic Priorities 182 5.3.2 Vision: Socio-Economic Development 182
5.3.3 Strategic Priority Area 1 - Socio Economic and Economic Development – Balancing Growth and Pro-Poor Development 185 5.3.4 Strategic Priority Area 2 - Institutional Structures, Systems, HR Capacity and a Functional LED Institutional Arrangement 187 5.3.5 Strategic Priority Area 3 - Sector Development – Agriculture, Tourism and Heritage 193 5.3.6 Strategic Priority Area 4 - Strategic Infrastructure and Resources 196 5.3.7 Action Plan - Camdeboo LED Priorities, Objectives and Strategies 199
7 LIST OF TABLES
Table 1: Sample size per sub-place 61
Table 2: Unemployment in Camdeboo Municipality 63
Table 3: Acquisition of skills by employed people in Camdeboo Municipality 64
Table 4: Monthly household income by sub-pace in Camdeboo Municipality 64
Table 5: Aspects of need experienced by households in Camdeboo Municipality 65
Table 6: Household material deprivation in Camdeboo Municipality 66
Table 7: Awareness of HIV/AIDS status in Camdeboo Municipality (ranked) 67
Table 8: Awareness of TB status in Camdeboo Municipality (ranked) 68
Table 9: Sanitary services in Camdeboo Municipality 68
Table 10: Electricity supply in Camdeboo Municipality 69
Table 11: Household water supply in Camdeboo Municipality 69
Table 12: Refuse removal in Camdeboo Municipality 70
Table 13: Perception of unsafe neighborhoods by sub-place in Camdeboo Municipality (ranked) 71
Table 14: Most important safety concern by sub-place in Camdeboo Municipality 71
Table 15: Most important neighbourhood-based concern by sub-place in Camdeboo Municipality 72
Table 16: Most important service by sub-place in Camdeboo Municipality 72
Table 17: Levels of satisfaction with the neighbourhood as a whole by sub-place in Camdeboo Municipality (ranked) 73
Table 18: Household heads who feel that general conditions in their residential areas have deteriorated (ranked) 73
Table 19: 354 Business entities were identified, of which most occur in Graaff-Reinet 74
Table 20: Business Activities Clustered 75
Table 21: Services/aspects that are regarded as important by most household heads 82
Table 22: Top five services/aspects that most household heads by Camdeboo sub-place are dissatisfied with 82
8 Table 23: Reasons why household heads do not feel safe in their neighbourhoods by Camdeboo sub-place 84
Table 24: This table outlines world mohair production from 1972 to 2007, and identifies production by the main producing countries (all in million kilograms) 95
Table 25: The history and the size of the South African 96
Table 26: Major centers of South Africa‟s mohair production 97
Table 27: Proposed arrangements 98
Table 28: Enterprise budget 99
Table 29: Operational expenses 101
Table 30: South African Production and sales value 106
Table 31: Sources of South Africa‟s production (2006/07 figures in kg) 107
Table 32: Defining characteristics of these groups of farmers, according to Van der Hoff, the following 109
Table 33: Summary of projected developments 111
Table 34: Production Capabilities of Municipalities 114
Table 35: The Number of Cattle in South Africa by Province 2001- 2005 114
Table 36: Animal „utilization‟ (hunted) has changed over the years 2002 - 2005 as follows 118
Table 37: Income was generated from hunting the following numbers of animals 119
Table 38: Production undertaken by a patented process 126
Table 39: Summarized profile of foreign and domestic tourists based on Grant Thornton‟s analysis of national and provincial data 129
Table 40: The number of accommodation establishments, and number of rooms and beds, in the area 130
Table 41: Number of bednights sold 130
Table 42: Comparison as follows with other South African destinations 131
Table 43: Present situation of the Camdeboo tourist market 131
Table 44: Growth percentages recommends for the Camdeboo Tourist Industry 132
Table 45: Projected income for tourism industry in the Camdeboo 132
Table 46: Employment and Gross Domestic Product contributions using suitable tourism industry multipliers 132
9 Table 47: Core actions with regard to Camdeboo Tourism Sector Plan 133
Table 48: The budget of the Camdeboo LTO as projected 133
Table 49: Income Statement 152
Table 50: Statistics of the Two Municipalities Include 152
Table 51: Compensations 152
Table 52: Development Priorities 155
Table 53: Costs to upgrade reticulation 166
Table 54: Cost for other Municipalities 166
Table 55: Water sources for Aberdeen and Nieu-Bethesda 170
ANNEXURES
1. List of Stakeholders
2. Quality of Life Profile Camdeboo (Global)
3. Quality of Life Profile GRN Town
4. Quality of Life Profile GRN Kroonvale
5. Quality of Life Profile GRN Umasizakhe
6. Quality of Life Profile GRN Kekana Village
7. Quality of Life Profile Aberdeen Town
8. Quality of Life Profile Aberdeen, Hagenheim and Lotusville
9. Quality of Life Profile Aberdeen Mandela Square
10. Quality of Life Profile Nieu-Bethesda Town
11. Quality of Life Profile Nieu-Bethesda Pienaarsig
REFERENCES 200
10 Acronyms AA Agave Americana ABD – HL Aberdeen - Hagenheim/Lotusville ABD – MS Aberdeen - Mandela Square ABD - T Aberdeen – Town ABSA ABSA Bank South Africa AIDS Acquired Immune Deficiency Syndrome ASGISA Accelerated Shared Growth Initiative of South Africa ARC Agricultural Research Council BEE Black Economic Empowerment CAPEX Capital Budget CBO Community Based Organization CDM Cacadu District Municipality CMS Cape Mohair Spinners CSIR Council for Scientific and Industrial Research CSAP Camdeboo Satellite Aquaculture Project CTO Community Tourism Organization DMA District Management Areas DOA Department of Agriculture DPLG Department of Provincial and Local Government EGDS Economic Growth and Development Strategy EIA Environmental Impact Assessment EU European Union FET College expansion FNB First National Bank GDP Gross Domestic Product GIS Geographical Information System GRN – Kekn Graaff-Reinet - Kekana Village GRN - Krv Graaff-Reinet - Kroonvale GRN – T Graaff-Reinet - Town HOD Head of Department IDP Integrated Development Plan IGRF International Geomagnetic Reference Field KFC Kentucky Fried Chicken LED Local Economic Development LEDF Local Economic Development Fund LG Local Government LG SETA Local Government Service Sector Education and Training Authority LTO Local Tourism Organization MAAP Mossel Bay-Albertinia Aloe Producers MSM Material Science and Manufacturing MSA Municipal Systems Act NSDP National Spatial Development Perspective NBD – Pns Nieu-Bethesda - Pienaarsig NBD – T Nieu-Bethesda - Town NGO Non Government Organisation NSDP National Strategic Development Plan PACA Participatory Appraisal of Competitive Advantage PAC Pan African Congress PGDP Provincial Growth and Development Plan P-P Public Private PSC Project Steering Committee QOL Quality of Life RDP Reconstruction and Development Programme
11 RSA Republic of South Africa SDF Spatial Development Framework SPU Spatial Development Unit SMME Small, Micro and Medium Enterprise SLED Sustainable Local Economic Development SALGA South African Local Government Association SWOT Strength, Weaknesses, Opportunities and Threats SARS South African Revenue Services UIF Unemployment Insurance Fund USNRC United States National Research Council WCED World Commission on Environment and Development
12
LED Vision Statement
To grow a vibrant economy that integrates people and places into one economy, that will attract investment, create employment and enhance the quality of life of our inhabitants.
LED Mission Statement
Camdeboo Municipality needs to create an enabling environment for economic growth, investment attraction, enterprise development and retention and this must happen in terms of a strategic approach with sustainable, measurable results that will make a meaningful and positive impact on the lives of our people.
13
Foreword by the Mayor
Ladies and Gentlemen,
It is my privilege to write the foreword to our Local Economic Development Strategic Plan. Section 152 of the South African Constitution, Act 108 of 1996, states that:
1. The Objects of Local Government are
▪ to provide democratic and accountable government for local communities, ▪ to ensure the provision of services to communities in a sustainable manner, ▪ to promote social and economic development, ▪ to promote a safe and healthy environment, and ▪ to encourage the involvement of communities and community organizations in the matters of local government.
2. A Municipality must strive, within its financial and administrative capacity, to achieve the objects set out in subsection (1).
Section 153 of the Constitution instructs that a Municipality must:
▪ Structure and manage its administration and budgeting and planning processes to give priority to the basic needs of the community, and to promote the social and economic development of the community, and ▪ Participate in national and provincial development programmes.
THUS, LADIES AND GENTLEMEN, OUR CONSTITUTION PLACES LOCAL GOVERNMENT AT THE PIVOT OF SOCIO-ECONOMIC DEVELOPMENT.
LED is one of the most important Key Performance Areas of the Municipality‟s Integrated Development Plan, making it an integral part of the operations of a Municipality. Since its establishment after the Municipal Amalgamations in December 2000, the Camdeboo has been functioning without an LED Plan and, as a result, has approached LED in an uncoordinated and haphazard manner, without clear, cohesive and strategic direction.
14 Today I am proud to announce that this kind of approach is now something of the past. A new day has dawned and we are presenting a brand new strategic Plan to give effect to our Constitutional mandate, which is to create an enabling environment for economic growth and development, thereby stimulating job opportunities and enhancing the living conditions and lives of our people. I therefore want to thank all who played a role in developing this document and am immensely proud and grateful to our Camdeboo Community, Officials, Councillors, Business and Government Sectors, Professor Deon Pretorius and his Team of experts at Development Partners, and especially Miss Leonie Fouché for her indelible work and for burning the midnight oil at both ends to ensure the realization of this LED Strategic Plan.
To all of you, Ladies and Gentlemen, who contributed, congratulations and keep up the good work.
Thank you very much Baie dankie Enkosi khakulu
DAANTJIE JAPHTA Camdeboo Mayor
Camdeboo Municipality P.O. Box 71 Graaff-Reinet 6280
Tel: 049 – 8922121 Fax: 049 – 8924319
15 EXECUTIVE SUMMARY
Introduction and Overview
This Executive Summary provides an overview of significant conclusions, findings and recommendations that are relevant to the LED Strategic Planning exercise. The summary is divided into the following five sections that correspond with the approach to this LED strategic planning.
Socio-Economic Development and Economic Development – the focus is on the findings and recommendations of the Socio-Economic Survey and the Business Survey.
Institutional Structures, and Systems and Capacity – the focus is on the analysis of the Camdeboo Municipality‟s budget and finances, IDP, organogram and capacities.
Infrastructure and Resources – this combines the findings of the Socio-Economic Survey with the Institutional and Financial Analysis of the Municipality.
Sector Focus summarizes the findings and recommendations of the Analysis of the Camdeboo Economy.
Urban and Rural Environment – the focus is on the environmental issues that arose and give focus to smaller urban towns.
Socio-Economic and Economic Development
Quality of Life: Basic Needs
Overview
The Socio-Economic Survey focused on Quality of Life issues in the Camdeboo Municipality. Major outcomes include:
The Camdeboo Municipality is characterised by a very young population. Almost half of the entire population is younger than 25 years; and of this group of people, nearly a third is younger than 15.
The unemployment rate for the Camdeboo Municipality as a whole – expressed as a percentage of all people between the ages of 18 and 65 – stands at 25.3%. This aggregated figure, however, hides certain extremes at a more local level.
Four employment sectors dominate the situation of employed people in the Camdeboo Municipality, namely Trade (business – wholesale/retail) 29%; Community Services (Government departments – national, provincial, local) 20.5%; Construction 11.6%; and Domestic (home maker, domestic service) 11.2%.
Education – less than 40% of adults have completed Grade 7; less than 30% have completed Grade 12; and about 10% have a tertiary qualification.
16 The predominant monthly household income – in the case of about 65% of all households – varies between R801 and R3,500, with the largest share (37.6%) falling within the R801 – R1,500 income category.
Government Grants play a significant role in assisting households in making a living, with 41% of all households in this context relying on an Old Age Pension and 28.1% on a Child Support Grant, for example.
Poverty is a major concern with more than 25% of all households that cannot always afford food, clothing, health care, transport and education.
Material deprivation manifests at considerable levels, with 68.8% of all households without a motor vehicle in working order; more than 85% without a computer; 55% without an electrical washing machine; while 70.9% do not enjoy the luxury of a hot water geyser.
Dwellings in the three urban settlements of the Camdeboo Municipality are fairly well serviced. 96.7% of all dwellings either have a flushing toilet inside or outside the dwelling; 98.6% are electrified; 98.2% of all dwellings have piped water, either inside the dwelling or inside the yard; and in the case of 87.2% of all dwellings, refuse bags are removed by the local authority at least once a week.
Levels of satisfaction with municipal services are remarkably high. Sanitary services (toilet), electricity supply, main water source and refuse collection all attract satisfaction levels above the 79.7% mark.
The five biggest neighbourhood-based concerns include (a) the quality of roads in the neighbourhood; (b) pavements / sidewalks; (c) the draining of storm water after rainfall events; (d) the quality of police protection; (e) and the safety of persons and their possessions.
The three services that are generally most important to households are all health related and include (a) accessible primary health care services; (b) an accessible hospital; and (c) ambulance services.
Local Economic Development (LED) Needs
Overview
The Socio-Economic Survey focus included two LED components – spatial shopping behaviour and migration. The economy of the greater Camdeboo area is small, unsophisticated and underdeveloped. Growth is stunted due to a large leakage of income to other areas. A low skills profile, high unemployment and poverty levels add to curtail the economic growth and development of this area. Key findings include the following:
37.3% of all household heads feel that the economic situation of their households has deteriorated over the past 5 years, while 28.3% are of the opinion that it actually has improved over this time.
Almost 20% of all households in the Camdeboo Municipality sometimes buy goods and/or services in another town. Leakage, more specifically, includes 73.7% for Nieu- Bethesda (Town); 63.5% for Aberdeen (Town); 60.7% for Nieu-Bethesda (Pienaarsig); and 47.7% for Graaff-Reinet (Town).
17 For the Camdeboo Municipality to increase its economic profile substantially, profitable economic activity within the area needs to be identified and encouraged. This will ultimately raise local employment levels, encourage training and skills development activities, and bring about increased income levels. This will encourage further economic development.
Recommendations
The development of a One-Stop-Business Agency, a Camdeboo Development Agency with a PDI department offering mentoring, support and access to finance for PDI businesses.
The development of policies for the management and promotion of “Informal Trading”. This is to include by-laws, leases, land demarcation, aesthetics and support.
That the CM LED officer, and possibly staff in the proposed Development Agency, should be trained in the services offered by business support agencies and thereafter advise small business in this regard, and mentor them on an ongoing basis.
Those occasional workshops with the above agencies are conducted in the CM area, and that the CM organizes these.
In order to encourage existing businesses to take on BEE partners, the CM should work with, for example, the ECDC, to create a fund of capital that could be lent to prospective BEE partners to buy shares in an existing company, thereby making the BEE deal both attractive financially and an opportunity to re-finance the company.
That the CM conduct a workshop with local business people, the intention of which is to identify opportunities (and possibly people) who could open new businesses to supply existing Camdeboo businesses, and also to satisfy existing opportunities and openings for new businesses as may exist.
That the Municipal LED Officer be tasked to identify all opportunities for Job Creation Projects (Department of Social Development), and to promote CM as a vehicle for these projects.
That the LED Officer works with the Provincial Departments of Education and Health to obtain funding for SMMEs to provide gardening, security and maintenance services at state schools and hospitals, and begin a programme in this regard.
The Camdeboo IDP lists a number of unfunded projects with Socio-Economic potential. These need to be revisited as private/public partnerships, for instance:
Aberdeen Heritage Archive and Tourist Bureau (Private initiative) Divu Kilae Ceramic Sculpture Project (Private initiative) Upgrading of Tourism Office (Formation of LTO structure) Upgrading of Camdeboo National Park Infrastructure (SANParks) One-Stop Truck Inn (Private initiative)
18 Institutional Structures and Systems, HR Capacity
Development Agency
Overview
The Development Agency approach has the advantage of bringing a new player into Camdeboo‟s Local Economic Development; bringing the local business community into an organisation designed around LED; and providing other financial sources (IDC, etc.) to multiply the CM contribution to LED. Thought could be given to establishing separate premises and seconding the Municipal LED officer, and the proposed SMME specialist, to this organisation; as well as housing the Publicity Tourism Office in this new Development Agency.
Recommendations
That the CM approach the IDC regarding funding to set up a Camdeboo Development Agency.
That a suitable private sector benefactor be approached to donate suitable premises for this organization.
That CM considers seconding their LED officer and the proposed SMME officer to this organization.
That the CM approaches the Publicity Toursim Office with regard to placing it under the umbrella of the proposed Development Agency.
That CM negotiates with the backers of the proposed Karoo Development Foundation, to house this also in Graaff-Reinet in the proposed Camdeboo Development Agency premises.
That the CM lobby for the creation of a School of Entrepreneurship, and a Small Business Support Unit, to be set up within its jurisdiction.
That the CM LED Officer, or the to-be-formed Development Agency, will assemble information re business opportunities, etc., and disseminate this within the Camdeboo Small Business Community.
Municipal Structure and Capacity
Overview
The Camdeboo Municipality is well run, financially strong and is delivering the full spectrum of municipal services. LED stakeholders interviewed for the quality of services delivered, praise it. Points of concern, however, exist:
The municipality has a relatively small total income, which constrains spending on critical projects and on building up a LED capacity.
19 Backlogs exist in the provision of a number of municipal services, particularly housing. Rapid development of low income housing puts strain on all other municipal services.
The maintenance of all new infrastructure puts additional responsibility on an already depleted staff complement.
Many senior posts in the organogram need to be speedily and suitably filled, or constraints on service delivery will occur as well as organisational malfunctions. Unless these senior positions are speedily and adequately filled, service delivery could be threatened, as could institutional coherence.
Recommendations
That CM review unfilled posts and prioritize the importance of LED and recruit an LED Officer, and Town Planner.
That the LED Officer develop an LED budget and plan based on the Strategic Priority Areas identified in the LED Strategic Plan.
That there is a review of the Camdeboo Supply Chain Management Policy, with an inspection of the preference points system for both local and PDI businesses.
Infrastructure and Resources
Municipal Infrastructure
Overview
Backlogs exist within the areas of infrastructure services. A 2005 municipal survey by the Cacadu District Municipality suggested the following backlogs in service provisions:
15% of households did not have electricity.
. 4% of households did not have portable drinking water accessible within 200 meters of the dwelling.
. Generally, as noted in the Camdeboo IDP document, “Camdeboo Municipality does not have adequate water supplies and has an unstable situation”.
. 20% of households have septic tanks and non-Municipal sewerage.
. 18% of households do not have weekly refuse removal.
. The housing backlog is variously estimated at between 4,000 units and 12,327 units.
This indicates that a considerable amount of work remains to be done in this regard. There is also the issue of maintenance of the new infrastructure.
20 Recommendations
. That the CM develops a business plan to build as many houses as are necessary to eliminate its backlog.
. That the CM identifies and then advertises a site suitable for an „Ultra City” transport hub for private sector development. This in conjunction with the TIA previously mentioned.
. That the CM compile a Business Plan for efficient sorting and re-use of waste deposited at its waste disposal site.
. That the CM encourages the development of a golf estate at the present golf course.
. That the CM identifies and then advertises sites for further Retirement Complexes to encourage the growth in the local reticulation industry.
. That the CM develops an annual maintenance programme for the upkeep of the all the new systems that are put in place.
Land
Overview
The issue of land availability for business and industrial purposes manifests itself in all three of the urban areas. Most land for business or industry is confined to the traditional town centres. Little if any is to be found in the townships. This is an inhibiting factor in trying to encourage and engage people in work in the townships. Graaff-Reinet has additional physical constraints because of its geographic location.
Recommendations
A comprehensive Land Plan for Camdeboo is required, which outlines ownership of the land, present zoning and erf sizes. This should be commissioned soonest. Thereafter a programme for releasing of land for industrial and other use must be created.
At this stage, possible brownfields projects (the old Power Station and Tennis Courts in Graaff-Reinet, for example) are identified and considered for proposal calls.
That the CM workshops with existing industrialists the opportunities for outsourcing existing work done, and other opportunities to manufacture locally products at present bought from out of town, particularly as far as such opportunities can involve PDI businesses.
Bring to the market industrial and commercial land, which is made available to PDI developers and businesses on a preferential basis.
That the CM considers offering property tax concessions for any new business that purchase land from the CM, the cost of which could be built into the selling price of the land.
21 Sector Focus
Agriculture
The Mohair Industry Overview
The Mohair industry appears to be well-organised and mostly self-sufficient. The private sector produces mohair, and shears, classes, scours, cards, combs, washes, draws, spins, weaves, knits, dyes and finishes this mohair, all to a lesser or greater extent. Industry cooperative organisations like Mohair SA organise the industry and do marketing and co- ordination. The industry is functioning well, is profitable (as of now) and is well informed of future trends in all relevant variables. Clearly, in all of the above, it would seem unnecessary for a Municipality to attempt to become a role-player.
Recommendations
There are, however, three areas in the industry which appear to be able to accommodate sensitive government intervention.
Angora Goat Farming: A feasibility study on the costs outlined possibilities and the potential of setting up a small farm relying on angora goats within the area of the Cacadu District Municipality (Source: AgricDIS from the University of the Free State, July 2006).
Small Scale Beneficiation of Wool and Mohair: A Business Plan for Knitting Mohair and Wool in the Cacadu District Municipality proposes a model for small scale knitting of mohair and wool. 92% of South Africa‟s nearly 50 000 tons of wool, and about the same percentage of our 3000 tons of mohair, is exported non-value added. Plainly this must create value-added opportunities.
Mohair Value Chain Potential: (a much larger-scale version of the opportunities than the two above). The project planned by Cape Mohair Spinners has 3 phases namely:
Phase I: Mohair Goat Farming - establish 10 new farmers. Phase II: Processing - utilize existing facilities and technical expertise. Phase III: Value added manufacturing, - establish an operation to make fashion garments.
(Source: Commission of the European Communities, March 2006)
Conclusions
The above three examples suggest some areas where a municipality could be an active player, with others, in promoting the mohair industry, and in promoting access for PDI persons to enter this industry. Plainly, a mohair industry-specific LED officer, with experience and energy, housed in a Development Agency, could play a meaningful role in developing opportunities in this industry.
22 The Wool Industry
Overview
Essentially the same comment can be made re the mohair industry. The industry is extremely complex and relies on a variety of variables most of which are beyond the control of the farmer (weather and particularly rainfall; wool prices on the international market; exchange rates, etc.) What role, if any, a municipality can play is not obvious.
The Wool Industry has (National Wool Growers Association, SA) an organisation that is extensively involved in aiding traditional farmers to improve productivity and thereby their income. These programmes include Genetic Improvement Scheme, ComMark Trust, Parasol Project (Vetenarian), Master Mentorship Programme and Infrastructure Provision. (Source: National Wool Growers Association of SA, Annual Report July 2006 to June 2007).
Recommendations
Small Scale Merino Farming by PDI Farmers: A feasibility study similar to that of the mohair industry analysed the costs, the possibilities and potential of setting up a small farm relying on merino sheep farming in the Cacadu District. (Source: AgriDIS from the University of the Free State, July 2006).
Value Added: Small Scale Knitting Opportunities: Similar to Mohair industry. (Source: AgriDIS from the University of the Free State, July 2006).
Small Scale Merino Farming by PDI Farmers: Similar to the feasibility study for the mohair industry. (Source: AgriDIS from the University of the Free State, July 2006).
Value Chain Improvements in PDI Farming of Wool: there is an opportunity to rollout the technology improvement initiative that was started by brokers and the ARC for small wool growers in the Eastern Cape. The scope and magnitude of any expansion of the programme would be subject to a feasibility study to ensure continued uptake of the wool produced by the small growers. (Source: Dr Grey van der Hoff).
Other Non-Traditional Industries
Overview
In addition to the traditional agricultural products (wool, mutton, mohair and ostrich), a range of new niche products is emerging. These include the "biblical fruits" (pomegranates, figs and olives), indigenous plants (hoodia, skeletium and aloe ferox), leather works, hydroponic vegetable production, agave plants (fibre, alcoholic drinks, and medicinal products), essential oils (such as lavender and wild rosemary), aquaculture (fish farming in Karoo dams), and goat's milk products.
Cattle: AgriDIS has again looked at the possibility of creating small-scale PDI beef farmers, and their study suggests the following:
if land can be bought on a government grant and as such is not a project cost,
a capital cost of R468,000 is required to purchase 40 cows and 1 bull, create pastures, fencing and water points, and
23 annual operating costs of R57,588 are set-off against project income of R185,180, giving the project an income of R45,000 per annum after servicing a Land Bank loan of R46,800.
Ostriches: This paper suggests that the world market could absorb the product from 240,000 Eastern Cape ostriches (there were 50,000 at time of writing). This would require the establishment of new feeding farms; 3 feed growing farms and a feed mixing factory. Abattoirs and tanneries would be further utilized, and value-added opportunities for providing shoes, handbags, wallets etc. would be created.
Aloe: According to the analysis in van Schalkwyk (2003), the global demand for Aloe Ferox derivatives is estimated to reach an annual maximum of 1,2 billion litres of non-concentrated gel of whole leaf extract for soft drinks and liquid supplement, 18,6 tons of 200x concentrated gel powder for dietary supplements and cosmetics and 107,6 tons of filleted leaves for the food industry. This demand is complemented by 30 000 kg of dried leaf powder for herbal tea/supplements and 75kg of aloesin. If capacities and opportunities are optimally used, the total value of the aloe derivatives could peak at US $8,2 billion per year.
The Camdeboo Municipality has, commendably, begun operations for the beginning of an Aloe Ferox industry in Camdeboo. 114 hectares of municipal land has been leased to the Living Aloe Company (Pty) Limited, which in turn is 40% held by the Zikhuliseni Rhafu Trust, a local empowerment Trust. The Kellogg foundation had made some seed capital available, and a start is being made on a Camdeboo Aloe Ferox initiative.
Agave: Karoo cultivated Agave Americana has resulted in the plant being used, mostly in its beginning phase, in three potential industries in Camdeboo.
Alcohol Production - A large factory was established just outside of Graaff-Reinet and is about to restart operations. This could be the basis of an excellent PDI farming project.
Paper-making uses - a pre-feasibility study, to be followed by a three-year research programme, in two phases, (begun on 1 April 2008) While still in its early stages, the project is suggesting very valuable uses for AA.
Inulin Production - Inulin is used increasingly in foods because it has unusual nutritional characteristics. A recent (21 July 2008) article from Time Magazine outlines some of the potential of Agave in the Inulin industry; and indicates some of the recent growth of this industry.
Bream: An innovative project, the opportunity created by a drop in pilchard quotas has been seen by the Camdeboo Satellite Aquaculture Project (CSAP) as an opportunity. Aquaculture is the rearing of aquatic organisms in captivity, and CSAP are proposing to rear oreochromis mossambicus. The fish will then be sold under contract (the details of which are already agreed and signed), and will be sold into the gap in the market left by the reduction in the pilchard quota.
Tourism
General Overview
The tourism industry is growing in the Karoo. A recent survey in the Little Karoo identified open spaces and unspoiled scenery as a major attraction for urban and foreign tourists. This
24 includes eco-tourism (spring flower tours, national parks, private conservation areas and game farms), small-town tourism (based on Victorian Karoo architecture), railway tourism, gastro-tourism (star-gazing and telescopes), bicycle riding and hiking, hot-air ballooning, palaeontology, horse shows, the new Richmond book town, and the most valuable commodity of all – the space, emptiness and solitude which is possible in the Karoo.
Camdeboo Municipality has a Tourism Sector Plan, (currently under review) which consists of the following three documents:
A Situation Analysis, outlining the (then) state of the tourism industry in Camdeboo (dated November 2004),
An Infrastructure Assessment Report (undated), and
A Final Tourism Sector Plan, dated March 2005.
Recommendation
That the Camdeboo Municipality updates its Tourism Sector Plan, taking into account:
The existing Camdeboo Tourism Sector Plan,
Clear budget implications for all proposed projects and overheads, and income streams,
The need for dedicated staff to promote Camdeboo Tourism, possibly from the proposed Development Agency,
Skeleton business plans for: o Conference facilities, o Entertainment facilities (cinema etc), o Backpackers facilities, o Adventure tourism products, o The proposed expansion of the Red Reinet Stigting to Aberdeen and Nieu- Bethesda, o Greatly increased use of the Graaff-Reinet airport, including microlite flights, o Train-based tourism facilities, including, . Port Elizabeth-Graaff-Reinet-Cradock-Port Elizabeth trips, . Graaff-Reinet to Clifton trips, o The use of the Dam and its facilities, o Festivals o A family hotel, o The possibility of expanding the Camdeboo National Park up to the Mountain Zebra National Park, and the implications thereof, o The promotion of the Royal Block and other township-based attractions, o The promotion of any other recommended tourist attraction.
Heritage Tourism
Overview
The historic heritage of Graaff-Reinet (4th oldest town to be established in SA) has created a unique urban environment with 220 national monuments. It is unique in the Eastern Cape. This unique resource has given Graaff-Reinet a competitive advantage that has led to a
25 strong tourism industry. This has both a local and international market profile. Houses of architectural and aesthetic merit and a host of B&B‟s compliment the many historic buildings. The weakness of this industry is that it is confined essentially to the horseshoe of Graaff- Reinet, is not linked to other areas of Graaff-Reinet and to Camdeboo‟s other two urban centres (Aberdeen, Nieu-Bethesda), it competes for space with local consumer retail stores, and national through traffic, and links with other aspects of tourism (national parks and game farming) are tenuous and informal.
Recommendations
The Camdeboo Municipality should commission a Traffic Impact Assessment in this regard, and request solutions re possible re-routing of large trucks, etc., from the commissioned traffic engineers.
The Camdeboo Municipality should enact, with its Zoning Scheme, Conservation Zone regulations as envisaged in 8.1 above, and as, (probably) spelled out in annexure A of the present Graaff-Reinet Zoning Scheme, to cover all heritage areas and buildings in Camdeboo, as well as natural environments of value.
Attached to the Town Planning Department of the Municipality should be an office of a Municipal Heritage Officer, tasked to police this legislation effectively. Possibly this officer would also support the Town Planner in other work.
Our recommendation is to request Professor McLachlan to broaden the area of his study to all of Camdeboo Municipality, and to recommend on all historically valuable areas and buildings within the Municipality.
The Camdeboo Municipality has a wider role to play in the tourism industry than merely tourism promotion through the Camdeboo LTO, tourism development and HR and entrepreneurial development. There are various other responsibilities that the municipality needs to acknowledge in regard to tourism promotion and development. These responsibilities include:
The maintenance of public amenities;
Safety and security by visible and regular policing at key tourism attractions;
Prioritisation of the tourism industry by all municipal departments by giving favourable consideration of general infrastructure developments that may aid tourism, taking cognizance of tourism in town planning, facilitating tourism development, etc.; and
Standardization of signage.
Game and Nature Reserves
Overview
A number of studies of game farming in the Eastern Cape conclude that:
2.8 million hectares of the Eastern Cape was game fenced by 2005 – this is nearly 20% of the entire Eastern Cape, up from 14.5% in 2002,
26 Possibly 32,000 hunters shot 240,000 animals, which value exceeded R280 million (up from R168 million in 2002), in 2005. (Source: Prof P. du P. van Niekerk, Nelson Mandela Metropolitan University)
There is a trend throughout the Eastern Cape of more game farms and less traditional farming. In the Camdeboo there are now four new game farms. All farms, according to an industry source, do some hunting. However, traditional farming in the Eastern Cape is still the most important form of income generation for the majority of ranches in the Eastern Cape. The main game producing areas in the Eastern Cape coincided with the areas where extensive sheep, goat and cattle farming were practiced. Farmers do mixed farming.
When utilization of game was compared to the production norms of the various game species, it became clear that current levels of utilization were within the limits required for sustainability and that game numbers in the Eastern Cape would increase if the current levels of utilization were maintained. This industry (the hunting industry) is possibly worth R25 million to R30 million per annum to the Camdeboo District.
Space Tourism
Overview
A major new possibility is that of "space tourism", which is due to be initiated by Virgin Galactic in New Mexico in 2009. The South African Karoo offers all the features required of spaceports. It is a remote area, far from population centres; it is located at fairly high altitude; it enjoys many sunny, cloudless days; and it provides many other tourism spin-offs (particularly astro-tourism, in the Carnarvon-Williston-Sutherland region). In addition, the skies in the Southern Hemisphere are particularly interesting for stargazers and potential space tourists.
Recommendation
Such an investment in a spaceport will cost about R2 - 3 billion, and could be done by a public-private partnership.
Urban and Rural Environment
Aberdeen and Nieu-Bethesda
Overview
Aberdeen and Nieu-Bethesda are considerably less developed than is Graaff-Reinet, and a special focus on development here should be considered.
Recommendations
That CM works with specific government departments to increase the amount of government infrastructure in, particularly, Aberdeen; including:
o A possible archive, o An upgrade of the hospital to involve some specialist disciplines, o An upgrade of the schools, to make them attractive as boarding School destinations,
27 o The Municipal Swimming pool, with or without private sector investment, o The road to Klipplaat, and other roads, o To RDP housing stock.
That CM commission a Business Plan for the redevelopment of Fonteinbos Nature Reserve, including the bottling of water and the provision of overnight accommodation.
Environment
Overview
The Karoo certainly is isolated and extensive, extreme, dry, beautiful, hot and full of natural phenomena of considerable interest, and small, crime-free towns of extraordinary charm.
Recommendations
That the Camdeboo Development Foundation encourages farmers to establish conservancies, and endangered species (such as the riverine rabbit) need to be protected. Sustainable farming and town planning should be encouraged.
Preservation of the area‟s Palaeontology needs to be a significant focus of the Camdeboo Development Foundation.
Camdeboo Development Foundation should promote its developmental objectives without destroying its main asset – the space and tranquillity of the region. The key should be to make the region better, but not to change its nature.
28 CHAPTER 1
Introduction
1.1 Cacadu and Camdeboo
The Cacadu District Municipality (CDM) is situated in the Western Portion of the Eastern Cape Province, covering an area of 58,242 square kilometres. The area of the district municipality includes nine local municipalities and other portions collectively known as the District Management Areas (DMAs).
The main languages among the 388,201 people are Xhosa and Afrikaans. (2001 Census). The district code is DC10. The name Cacadu is derived from the Khoikhoi word tkakadao, which means "bulrush river". This was an earlier name for the current Papkuils River near Port Elizabeth, and a river tributary to the northeast.
In South Africa, a Local municipality or Category B municipality is a type of municipality that serves as the third, and most local, tier of local government. It falls within the demarcated area of the district municipality (also known as "districts"); there are no local municipalities in any of the 6 metropolitan municipalities, which have their own respective systems of urban governance. There are 231 local municipalities in South Africa. Multiple towns, cities and farms may occupy the expanse of a local municipality. A mayor and municipal council usually govern local municipalities.
29 Camdeboo Municipality (EC101) is one of the 9 Local Municipalities situated within the Cacadu District and incorporates the towns of Graaff-Reinet, Aberdeen and Nieu- Bethesda.
Founded in 1786, Graaff-Reinet is the fourth oldest town in South Africa (after Cape Town, Stellenbosch and Swellendam) and, a town that is it proud of its history. Having preserved its heritage and with 220 national monuments (mainly funded by the late billionaire businessperson Anton Rupert, who grew up in the town), it is quite unique in the Eastern Cape. This is the kind of heritage preservation you see in the Western Cape, with its gabled roofs and leiwater channels. The stark plain of Camdeboo stretches south from the town to the Camdeboo Mountains that surround it.
Aberdeen is situated in the Camdeboo Plains of the Eastern Karoo between Graaff- Reinet and the Garden Route. This district is renowned for its wool and mohair, being the largest mohair producing area in South Africa. The town has an extremely healthy climate, a restful and rural atmosphere, unpolluted air.
Aberdeen was founded in 1856. Named after the birthplace of Rev. Andrew Murray in Scotland, it was originally a farm called "Brakfontein". Today Aberdeen is a town attracting many newcomers, some of them refugees from the big cities! With the healthy climate and the slow pace of life, the town presents a relaxing reprieve from the stresses and strains of modern urban life.
The village of Nieu-Bethesda is set in the fertile valley of the Sneeuberg Mountains. It is so secluded that development took a back seat leaving a rare historical integrity. It has become a popular retreat for artists and because of its unique appeal; this is a place that no visitor should miss.
The Owl House is an artwork that evolved from Helen Martins who, after having considered how dull and grey her life had become she resolved that she would strive to bring light and colour into her life. That simple decision, to embellish her environment, was to grow into an obsessive urge to express her deepest feelings, her dreams and her desires.
The Owl House is a major tourist attraction for Nieu-Bethesda. Economic development has, thus far, proceeded with suitable regard for the cultural and historical integrity of the village. The Athol Fugard play, „The Road to Mecca‟, which was subsequently filmed, was based and filmed in Nieu-Bethesda.
This region is generally underdeveloped, particularly lacking in manufacturing facilities. The economy is dependent on extensive farming, which has shed a great deal of labour during the last twenty years. At the same time, many of the Camdeboo towns have shown some developmental potential, in terms of tourism and crafts.
Climate
Fairly harsh conditions prevail in the Camdeboo Municipal area. The area is generally characterised by hot summers and very cold winters. In winter, cold fronts sweeping in from the south-west result in snow on the high laying ground.
In summer, very high temperatures sometimes exceeding 40C occur when berg wind conditions prevail, usually during January and February. Summer (January) temperatures vary from an average maximum of about 32C to an average minimum of about 16C, whilst winter (July) maximums and minimums are about 20C and 6C respectively. The prevailing wind direction is from west and north-west, with an easterly and south-easterly component during summer months.
30 Topography and Drainage
The topography in the area comprises of two types of landscapes, i.e. mountainous terrain and valleys. Most of this area lies in a valley, including urban areas of Aberdeen and Graaff- Reinet.
One of the unique topographical features of the area is the Valley of Desolation. The drainage system of Camdeboo Municipality is through the Sunday‟s River and tributaries, which drains into the Nqweba Dam. High lying areas are found towards the north where Nieu-Bethesda is situated.
1.2. Background to Local Economic Development (LED) of Camdeboo
1.2.1 Legislative Background
The Constitution (Act 108/1996) of South Africa, the White Paper on Local Government (1998), the Municipal Structures Act (117/1998) and the Municipal Systems Act (32/2000) all mandate Municipalities to create and promote environments conducive to sustainable economic development, to ensure the upliftment of local communities.
Chapter 7 of The Constitution outlines the role and responsibilities of Local Government. Sections 152 & 153 place emphasis on Local Government‟s Objects and Developmental Duties, especially in terms of service delivery and socio-economic development. This responsibility is further entrenched in other pieces of legislation, such as the Municipal Structures Act (117/1998) and the Municipal Systems Act (32/2000).
Chapter 5 of the Municipal Systems Act (MSA) places an obligation on Municipalities to undertake developmentally-orientated planning by way of an Integrated Development Plan (IDP), in order to achieve the objects and duties as required by The Constitution; Section 26 of the MSA outlines the core components of the IDP and emphasizes that it must reflect, inter alia:
the council‟s development priorities and objectives for its elected term, including its local economic development aims and its internal transformation needs,
the council‟s development strategies, which must be aligned with any national or provincial sectoral plans and planning requirements binding on the municipality in terms of legislation.
During the course of 2006, Cacadu District Municipality embarked on the establishment of a district-wide Economic Growth and Development Strategy. Research Findings were workshopped at LED Indabas in Port Elizabeth. Problems existing on local level were identified and Local Municipalities were urged to develop their own Strategic Plans, in order to address the developmental needs of their communities and to create a synergy effect with the DM‟s exercise.
Furthermore, dplg its assessment of the 2006/07 IDPs, stressed clearly the importance of integrating LED with the Municipality‟s IDP, and having a Strategy Plan in place. LED is stated as a developmental priority in IDP, but the listed LED projects were described as being “haphazard”, with no clear linkages. dplg’s recommendation to Camdeboo Municipality:
31 “Develop the LED Strategy to include District Development Strategy, PGDP, Asgi-SA, NSDP, National LED Guidelines and Provincial and National Strategies.”
The Municipality‟s LED Unit is not fully developed and exists as a single post which, until recently, was combined with the IDP function, namely that of IDP/LED Co-ordinator. This position was activated during June 2005 and the incumbent still single-handedly has to perform both of these demanding functions, without any sub-structure or Agency support.
The lack of clear and coherent LED Strategies for the Camdeboo caused an absence of structured objectives ~ there was no strategic direction and appropriate programmes could not be linked as a result; projects were not properly identified, prioritized or implemented ~ this resulted in a very fragmented and ad hoc approach to LED planning. For this reason, the establishment of an LED Strategy Plan was placed as a HIGH Priority on Camdeboo‟s Integrated Development Plan. Thanks to the Thina Sinako LGSF Programme, it has now come to fruition.
1.2.2 Camdeboo Municipality and Thina Sinako
Camdeboo Municipality became involved with the Thina Sinako Provincial LED Support Programme during 2006, when its rollout commenced in the Cacadu District. Miss Leonie Fouché, the Municipality‟s IDP/LED Co-ordinator, developed a draft Concept Note and Logical Framework as a prerequisite for entering the programme. Partnerships form the cornerstone of these EU-funded programmes, thus a suitable Delivery Partner was identified to assist the Municipality in both the Application and Implementation Phases of the Project.
A formal Partnership Agreement (subject to the terms and conditions of the EU Commission and Provincial Treasury) was entered into between Camdeboo Municipality and the firm Development Partners, headed by Professor Deon Pretorius based in Port Elizabeth. Several briefing and consultative sessions ensued, which culminated in a comprehensive and relevant Funding Application, delivered to the Offices of Thina Sinako / Provincial Treasury on Tuesday, 14th August 2007.
The Application was subjected to a very critical assessment; each section was evaluated and scored by a panel of adjudicators, using a very stringent points allocation system. Camdeboo was fortunate to have passed the test and funding by the EU for this Project was approved.
The total Project Value is R1, 318,845
R881,473 EU Commission, in partnership with Provincial Treasury in Bhisho R150,000 co-funding by Cacadu District Municipality R150,000 co-funding by Camdeboo Local Municipality R137,372 “in-kind” contribution by Camdeboo Local Municipality*
(*Costed contributions such as space and resources utilized for the purpose of the Project‟s implementation, smooth running and day-to-day management.)
The EU contribution was split into 3 instalments (Tranches), namely:
R440,736.50 the month prior to official commencement of the Project R264,441.90 once 70% of the 1st Tranch had been expended R176,294.60 at completion of the Project
32 The Project Cycle was 12 months, with the official date of implementation 1st April 2008, and ending on 31st March 2009.
Co-operation between the Camdeboo Municipality and Messrs Development Partners has been good throughout the various phases of the Project. There was frequent consultation and active participation by the members making up the Development Partners Team and Leonie Fouché, the Municipal Driver of the Project.
1.3 Scope of Work / Terms of Reference
This Project was envisioned as a three-dimensional process, consisting of the following main Activities and Outcomes:
Undertake a socio-economic baseline survey through a participatory process and explore different options for a more permanent observatory tool that could track changes on this baseline in the longer term (i.e. design and establish a Socio- Economic Database),
Develop an LED Strategic Plan reflecting an analysis of the above data and key interventions to capitalize on identified competitive advantages by way of an Action Plan, which is linked to an effective Monitoring System,
Conduct an analysis of present institutional arrangements and propose an appropriate Institutional Framework best suited to facilitate the rollout of the above Action Plan.
The following is an extract from the Delivery Partner‟s Terms of Reference:
The Application‟s Concept Note will serve as the basis of the Project‟s planning and operational framework. In addition, the Delivery Partner is to complete the Funding Application and submit it, on behalf of the Municipality (Lead Applicant) to the given address in Bhisho by the due date: Tuesday 14th August 2007, no later than 15:00.
The LED Strategic Plan must map a clear path for all Role-players and Agencies; as a tool it must ensure a holistic, cohesive and co-ordinated approach towards local economic development ~ it must guide the implementation of measures or interventions which will contribute towards achieving the developmental aims and objectives of the Municipality.
The first steps call for rapid but rigorous evaluation of the local economy per sector; the identification of potential economic opportunities and niche products, including the expansion of existing tourism and agricultural potential.
The Delivery Partner is also to take into consideration the various other Sector Plans & Research Reports that are applicable to the Camdeboo Municipality, as well as the Cacadu District in which it falls. These would include the Tourism Sector Plans, Agricultural Plans, Business Surveys (Prof. Doreen Atkinson), and other studies by inter alia Rhodes and the University of the Free State. Camdeboo‟s IDP, SDF, other applicable Plans, Frameworks and Policies should inform the LED Strategic Plan; whilst the National Framework for LED in South Africa, the NSDP, PGDP and the District‟s EGDS should form its cornerstones.
The purpose of the LED Strategic Plan should not be to identify as many Projects as possible. The focus must be on the situation and what can be done to improve it, add value and enhance the lives of the people in the Camdeboo, with emphasis on
33 sustainability. SMART Objectives must be designed which can be aligned with outcomes-based Programmes that will convert into appropriate Projects. LED is about a collective, integrated and co-operative facilitation process.
The socio-economic baseline survey should also include the impact of HIV/Aids on the area‟s economy, the effect that migratory patterns may have and how social issues such as housing & services backlogs, illiteracy and alcoholism could restrain or undermine economic activity within communities. Does the School Curriculum, for instance, accommodate subjects that can be of benefit to learners once they are ready to move into the Job Market? Are there enough educational institutions in our area? How accessible and affordable is training and skills development for persons who did not receive a good school education, etc.?
The 2001 Census statistics are deemed unreliable and sample surveys will need to be conducted to give a sense of what the situation is currently and a method to calculate accurately projected trends over the next few years. We also need to know the extent to which certain economic activities have changed over the years, for instance, conventional farming vs. game farming and the impact this may have on local business. The Economic Profile must reflect the status of all three towns and their surrounding areas in the Camdeboo.
In Summary, the Following Outcomes/Deliverables are expected from the Delivery Partner:
ACTIVITY TIMELINE
th th Complete and submit application for EU Funding. 16 July 2007 to 14 August 2007 Mobilize Stakeholders. Conduct the necessary research, To commence as soon as application has throughout the Camdeboo (Aberdeen, Graaff-Reinet, Nieu- been evaluated and approved : Bethesda and rural areas) in order to compile a comprehensive Situational Analysis (to include local assessment & SWOT Adjudication process 4 months, August analysis, social and economic profile, gaps, backlogs, needs, To November 2007, constraints and potential of the respective communities, what Funding allocation resources are available). Determine our competitive and Dec. 2007, comparative advantage, for instance Agriculture = wool & Project Implementation Jan. 2008. mohair, Tourism = heritage. As soon as data becomes available (to run Set up Socio-Economic Database within Municipality. concurrently with main Action).
Conduct workshops by way of public meetings in all three towns. As soon as surveys have been completed Develop a Vision, Objectives & Strategies. Align with relevant and in accordance with Delivery Partner‟s National, Provincial, District and Local Policies, Plans, Strategies Implementation Plan, in consultation with & Frameworks (e.g. NSDP, IDP, SDF, EGDS, ASGISA, PGDP, the Municipality. (Dates to be agreed upon etc.) Identify suitable Programmes or Interventions. Identify and confirmed.) how the private sector could assist with LED and through which mechanisms? What other tools? An overview of LED projects already implemented and their failure or success should be given. Proposals as to the type of Initiatives / Projects that will contribute to LED to be reflected.
Prepare draft LED Strategic Plan with Action Plan & Institutional 1 Month preparation period. Submit to Framework and table for approval at Ordinary or Special Council Council: 3 wks, plus 21 days inspection Meeting. Advertise the following week for inspection. Distribute. period. (Dates to be confirmed.)
Final Stakeholder Forum Meeting: report on comments, 1 Month for meeting, amendments and additions & amendments. Finalize document/s, print & submit to preparation of final document. (Dates to be Council for adoption and implementation. confirmed.)
34 The whole process must take place in an accountable and transparent manner, by way of proper consultation with all Role-players and Stakeholders, full community participation and with transfer of skills to the LED Unit.
The status of this Project is HIGH PRIORITY; therefore, its cycle from beginning to end should commence and be completed as speedily as possible.
(NB: Timelines were adjusted in accordance with the transfer of the 1st Tranch by Bhisho, which affected the date of commencement of the Project.) Specific challenges that need to be addressed
Understanding Local Economic Development and the role of Local Government,
Expectations of the community vs. what the Municipality can deliver, Unemployed and Indigent sector of Camdeboo‟s society, Integration of 2nd Economy with 1st Economy, Getting Private Sector committed and involved, Impact of HIV/Aids on economy, Skills shortage & illiteracy, Permanent and sustainable employment, Limitations in industrial development, Poverty gap, Investment incentives, Business retention and expansion, Cross-boundary collaboration, Balance between pro-poor and pro-growth.
Points to Ponder or to Explore
Mobility of people and the prevalence of HIV/Aids,
Are shebeens really contributing towards our economy?
Can we all become Entrepreneurs or is one born with intrinsic entrepreneurial characteristics?
Where should economic development take place, where not? Do we stick rigidly to the principles of the NSDP?
Are Development Agencies serving their purpose? What is the latest on this issue?
To which extent will we be able to create economic corridors and how strongly should we encourage economic hubs and incubators?
People tend to confuse Social Development (and SPUs) with LED: in some respects, they become intertwined, yet they are separate issues and processes. The type of
35 intervention will either address a social need, or produce an economic benefit… or both. Where do we draw the line?
1.4 Areas of Work per Result Areas and Activities
Results/Activities Result 1 (Socio-economic baseline survey) 1.1 Conduct literature review. 1.2 Design methodology. 1.3 Capture data. 1.4 Analyze results to inform LED plan. 1.5 Generate recommendations. 1.6 Draft and present final report. Result 2 ( Socio-economic database commissioned) 2.1 Determine nature of data needs. 2.2 Identify/Design appropriate software. 2.3 Procure relevant IT hardware. 2.4 Populate database with results of survey (RA 1) and test. 2.5 Design database maintenance plan. 2.6 Develop an economic development monitoring strategy. 2.7 Train database operator(s). Result 3 ( LED Plan) 3.1 Conduct literature review relevant to LED. 3.2 Agree on appropriate model / approach. 3.3 Conduct stakeholder analyses. 3.4 Establish working groups. 3.5 Conduct resource and asset audit. 3.6 Conduct sectoral analyses and local economic assessment. 3.7 Draft economic profile. 3.8 Generate / Formulate shared economic vision, LED goals, objectives, design strategies to inform projects and programmes, an action plan, establish criteria for success and develop a monitoring strategy and in addition, evaluation plans.
3.9 Assess LED plan against resource requirements.
3.10 Formulate recommendations in relation to skills and capacity development, strategic partnerships, support systems and resource sustainability.
3.11 Present plan for approval
Result 4 (Analyse internal and external arrangements) 4.1 Identify necessary internal institutional capacity, infrastructure and conditions for LED implementation. 4.2 Analyze external environment including resources, stakeholders, social capital and support required for LED implementation.
4.3 Present recommendations for approval. Result 5 ( Awareness and capacity building programmes) 5.1 Assess knowledge and awareness levels in relation to LED amongst municipal official and councillors. 5.2 Design awareness programmes for officials and Councillors, stakeholders. 5.3 Implement programmes. 5.4 Evaluate impact.
36 1.5 Public Participation Strategy
Prior to the Project starting, various Stakeholders were sensitized that Camdeboo Municipality was about to develop an LED Strategy Plan. This was tabled and discussed at several Council Meetings and was referenced in the Municipality‟s IDP. Professor Deon Pretorius and Mr Vusi Tshabalala of Development Partners gave a detailed presentation to the IDP/LED Representative Forum on 12th March 2008. At the commencement of the Project, notices informing the public about the Project and inviting all interested parties to participate were placed in the following newspapers:
The Advertiser
The Herald
Die Burger
The same notices were also placed at strategic points on Municipal Notice Boards throughout the Camdeboo and high visibility was maintained throughout, with the view to create public awareness and interest. Several briefing sessions were held between Development Partners and various local Stakeholders. Ward Councillors were interviewed and encouraged to mobilize their Ward Committees in getting involved with the Project.
Specific structures for participation & co-ordination were utilized
Project Steering Committee (PSC),
LED Committee,
IDP Steering Committee,
Camdeboo Municipal Council (Special & Ordinary Meetings),
IDP/LED Representative Forum,
Ward Councillors & Ward Committees,
General Public Meetings (e.g. Mayoral Outreach & IDP Review Ward Consultations).
The following measures were taken to encourage and facilitate participation and co-ordination:
A Project Steering Committee (PSC) was established, consisting of representatives from the Camdeboo Municipality, Development Partners, Thina Sinako and Cacadu District Municipality.
PSC Meeting Minutes & Reports were referred to Council‟s LED Committee and then to full Council, enabling all internal structures to be kept fully informed of the Project‟s progress and the extent of participation by internal Role-players and external Stakeholders.
37 Regular presentations and feedback on the Project were given to the IDP/LED Stakeholder Forum, which is fully representative of all three Towns in the Camdeboo, as well as Sector Departments.
During Camdeboo‟s Mayoral Outreach and IDP Ward Consultations Programme that ran from September to October 2008, all Communities (in 6 Wards) were informed about the Project, its progress and anticipated outcomes.
Municipal Role-players (the Mayor, Municipal Manager, IDP/LED Co-ordinator, HODs / Managers, Ward Councillors and any other parties that were required to ensure the successful implementation and completion of the Project) were interviewed and sensitized as to their role in the Project, specifically the link between Ward Councillors and their Ward Committees, whilst the Mayor and Municipal Manager had to be seen as giving the political and administrative leadership in the Project.
Thina Sinako and its Provincial Treasury Partner were regularly consulted and updated.
Cacadu District Municipality, Sector Departments and other structures deemed necessary in the successful execution of this exercise were kept in the loop.
The neighbouring Municipalities Ikwezi and Blue Crane Route were provided with Information Packs on the Project and invited to participate.
Comprehensive Workshops were held with the Municipality as well as the Communities in all three towns (Graaff-Reinet, Aberdeen and Nieu-Bethesda) to present the draft LED Strategic Plan and preliminary results of the Surveys, GIS Mapping, etc.
Herewith a record of formal meetings and workshops held in respect of the project during its implementation period
LED Committee Project Steering Committee Community 7 April 2008 4 August 2008 Workshops 4 June 2008 6 October 2008 Graaff-Reinet 4 August 2008 1 December 2008 2 February 2009 6 October 2008 2 February 2009 1 December 2008 2 February 2009 Aberdeen IDP/LED Rep. Forum 3 February 2009 IDP Steering 10 September 2008 Committee 19 November 2008 Nieu-Bethesdsa 28 January 2009 3 February 2009
38 In addition, Messrs Development Partners visited the Camdeboo on a number of occasions to interview and consult with local Stakeholder organizations and individuals, inter alia on:
16 April 2008 13 – 14 May 2008 4 & 12 June 2008
Training of Fieldworkers took place 14 - 15 August 2008 and Mr Vusi Tshabalala visited the area during the Surveys.
39 CHAPTER 2
Local Economic Development (LED) in Perspective
2.1 Introduction
The key deliverable of this exercise is a coherent Local Economic Development Strategic Plan for the Camdeboo Municipality. A strategic plan is required to meet the challenges of economic and employment growth in the Camdeboo Municipal Area.
Since there are many models and approaches to local economic development, the main activity was to assess current approaches, agree on an approach, and to develop it through a participatory process.
The following list of activities constituted the broad outline and approach adopted:
A critical review of the LED models and approaches (this also includes the Legislative Context),
Stakeholder analyses and formation of working groups that include a mixture of stakeholders to ensure a community-based approach,
The assessment of resources and assets in the area that can be used as a basis for development,
Profiling and SWOT analyses of economic sectors as part of an economic assessment and profile of the area,
The production of a LED Strategic Plan that consists of a shared economic vision developed by way of a participatory process, a set of goals, strategies and an action plan. It will also include criteria for success,
Assessment of the LED plan against resource requirements,
The formulation of recommendations in relation to skills and capacity development, strategic partnerships, support systems and resources for sustainability.
Present plan for approval.
2.2 Report on Review of Legislation and Models
What follows is a report on the first activity stated above, i.e. A review of the LED models and approaches including the Legislative Context.
40 2.2.1 Legislative Background to LED in South Africa
The Constitution of the Republic of South Africa, Act 108 of 1996
The constitutional basis for the involvement of Local Governments in South Africa in Local Economic Development (LED) is clause 152 (1) (c) of the Constitution of South Africa, which, in addressing the Objects of Local Government, includes as an object of Local Government:
(c) to promote social and economic development.
However, Local Government Functional Areas and Areas of Exclusive Competence are set out in Schedule 4 Part B, and Schedule 5 Part B – neither mention Local Economic Development.
Legislation Relating to Local Government and LED
The White Paper on Local Government (1998)
The White Paper on Local Government (1998) sets out the economic functions of local government in more detail, confirming a shift towards the concept of „developmental local government‟,
These new responsibilities include marketing and investment support for the locality; small business support (including support for skills, access to premises, networking, access to finance); assistance to targeted growth sectors; training and labour placement services,
The White Paper is, of course, a statement of policy direction and not legislation. What followed from the White Paper has been five Acts of legislation which, taken together, give legislative underpinning to the aims of the White Paper. These Acts are:
The Municipal Demarcation Act of 1996 The Municipal Structures Act (117 of 1998, as amended) The Municipal Systems Act (32 of 2000, as amended) The Municipal Finance Management Act (56 of 2003); and The Municipal Property Rates Act (6 of 2004)
Local Government: Municipal Systems Act 32 of 2000
The Municipal Systems Act is the piece of legislation that is applicable to LED: Chapter 5, on Integrated Development Planning, includes the following clause when referring to “Core Components of Integrated Development Plans” [Clause 26 (c)] „the council‟s development priorities and objectives for its elected term, including its local economic development aims and its internal transformation needs‟ [must be reflected in the municipality‟s Integrated Development Plan]
2.2.2 Early Difficulties for LED
Two studies identified a range of early successes and challenges faced by LED in South Africa.
41 The World Bank and the Development Bank of South Africa funded investigation of Pro-Poor Local Economic Development in South Africa, which concluded in July 2006. It was supported by a reference group which included the South African Local Government Association (SALGA) and the Department of Provincial and Local Government (dplg), and research was conducted by researchers from, inter alia, Rhodes University; the Universities of the Witwatersrand and Kwa Zulu-Natal, Khanya – aicdd and others (P-P LED).
Amongst the conclusions of this large research programme are the following:
Economic development is perceived very differently by the various municipalities ranging from building „a globally competitive region so that all communities can benefit from economic growth‟ (eThekwini) to more modest goals, e.g. „poverty alleviation through job creation‟ (Moqhaka/Kroonstad).
Most rural municipalities (92%) define LED as multifaceted including poverty relief or the promotion of economic growth.
66% of urban municipalities see no distinction between addressing poverty and promoting economic growth. This is an aspect of concern, as economic growth per sector is not sufficient to address poverty, notably where there is persistent and widespread inequality as is the case in South Africa.
In terms of mechanisms for implementing LED, 56% of both urban and rural municipalities report having a dedicated LED Unit/Department and 82% of rural municipalities have an LED Officer.
In terms of their economic development focus, LED features to some degree in municipal IDP‟s but only 48% of rural municipalities have developed a defined LED policy. Common themes included job creation; skills development; excellent city; sectoral targeting; investment attraction; inner city redevelopment, infrastructural development. The range of LED interventions includes:
o Development of an Economic Development Strategy, often as part of the IDP, o Grants/rebates to attract new investors, o Area-based support, mainly for larger firms while non-financial support for inward investment includes information provision, lobbying of business, investment facilitation and technical support (13 municipalities), o Infrastructure and industrial and commercial sites, o Supporting SMME‟s, including preferential procurement, SMME support centres/business incubators, support for the informal sector, o Support for sectors/clusters, o Support for the poorest sections of the community including skills training, local area support, housing support, advisory services, procurement and public works, o Research or information activities, e.g. a database of economic trends, sector information and relevant information, o Support for export and marketing.
In rural municipalities, LED is more embedded in district than local municipalities. While LED officers and/or LED Units have often been appointed, the absence of guiding policy, direct political links and weak institutional support systems is not ideal.
This Research Project did, however, highlight a large number of concerns about local economic development in South Africa:
42 LED is not yet well embedded in municipal practice, as shown by the limited funds allocated, the absence of poverty reduction targets and the lack of detail of the impact of interventions. It is still early days for many municipalities, whose policy is still being developed and concrete results appear to be limited. In addition, the lack of monitoring and evaluation is a cause for concern.
LED is unevenly developed and operationalised across the South African urban system. Major divides exist as a group between the largest, most well resourced and capacitated municipalities and the smaller urban centres in terms of policy development, institutionalisation of LED and applied practice. This is even true for some of the larger secondary cities. However, there are some exceptions to this general picture.
LED is defined and understood very differently, which reflects the absence of national LED guidelines, and the short time with which municipalities have been actively taking forward LED approaches.
This results in challenges in determining objectives and targets as well as differences between councils, which hinders the scope for comparison. There are differing views held between government departments as to whether LED should have pro-poor or pro- market focus and a legacy of support for unsustainable, low skilled community projects has negatively impacted on perceptions of the efficacy of LED.
Even in the case of flagship projects such as developing flagship infrastructure, results clearly do not always live up to expectations.
LED is sometimes perceived as marginal to the mainstream basic services delivery mandate of local government.
There is considerable variation in the amount of resources and staff devoted to LED, the degree to which LED has moved beyond policy pronouncements and the results achieved.
The compartmentalization of economic development and lack of coherence is a significant problem. There are pro-poor statements in the policies of many municipalities, but this is often not translated into significant LED budgets, or the actions of other municipal departments.
This impedes the overall scale and impact of council LED policies. In addition, there is an apparent failure to link line-function interventions or national government-funded projects explicitly into LED e.g. housing construction and infrastructure.
The varying size of LED units, the presence or absence of professional staff and resource differences creates a very diverse profile in terms of what exists and also in terms of actual impact.
Most municipalities are initiating some form of partnerships, even if many are weak. The objectives of these relationships need to be more clearly articulated and the concept needs more direct focus in IDPs.
Although there are forums and mechanisms for public-private interaction in most places, there seem to be relatively few cases of direct collaboration in joint projects. There is only limited private sector involvement which highlights the need to establish the previously mentioned partnerships.
43 For community-based economic development to work, participatory identification of strengths and opportunities at a local level is required as well as fostering of community energy and commitment to take forward their own development. In practice top-down approaches seem much more common.
The devolution of significant and real power to affect LED is impeded when local municipalities lack the skills and capacity to effect change. This applies to councillors and officials and is a major constraint which government itself has recognised as needing attention.
Significant devolution has taken place without adequate funds to run LED offices, pay for training or to finance projects, creating what is locally known as an „unfunded mandate‟.
Real economic growth is being noted in pro-market supported ventures, e.g. convention centres, place marketing etc., and the challenge is to try and ensure that there are genuine pro-poor employment and development spin-offs from such activities, as well as activities which specifically target growth at the bottom, either in support for the informal sector, in agriculture, in community-based tourism etc.
Whither LED in South Africa? is a paper written by Doug Hindson and Valerie Vicente, and published in July 2005 (Hindson and Vicente). This paper outlines the „difficult birth‟ of LED policy in South Africa.
Local economic development (LED) policy in South Africa is going through a difficult birth. During the first decade of democracy, the focus of municipal LED initiatives was on community economic development projects, many of which proved economically unviable and had no lasting impact on poverty reduction. Cooperation between government, local businesses and the voluntary sector was often weak or non-existent and non-state actors felt sidelined from most government initiatives. There was lack of consensus over the goals of LED, whether these were primarily to promote growth or poverty reduction. Added to this was confusion over the target groups, processes, institutional arrangements and tools of LED. Underlying these difficulties were paradigm conflicts over the role of the state and markets in development. More fundamentally, local economies globalisation, forces that entrenched inherited spatial patterns, crosscutting government’s efforts to integrate prosperous and impoverished localities and regions. LED practice, as pursued by (local) government, had indifferent results, both in terms of economic growth and sustained poverty reduction. In particular, the experience of the Local Economic Development Fund (LEDF), set up by the Department of Provincial and Local Government (dplg) to support poverty reducing LED projects, produced dismal results.
2.2.3 The dplg and Policy Guidelines for Implementing LED in South Africa
Responding to these difficulties, two major efforts were made by the dplg to formulate a national policy framework for LED. Refocusing Development on the Poor, dated 2001, was the first such effort.
The main aim of this document was to bring „the poor to the centre of LED Strategy‟.
It was focussed on measures that were to address their needs directly within poor areas, namely community economic development linked to municipal infrastructure service delivery, human resource development and the retention and expansion of local enterprises. The document argued that LED should be implemented within IDP processes that are holistic, people-centred, and focused on job creation, urban and rural development in poor areas. It
44 emphasised the need to pool public funding sources for LED and to apply these within integrated LED programmes.
Hindson and Vicente believe this document contained „a number of flaws which were to prove fatal‟. Three were:
The failure to address the question of the competitiveness of the formal economy under increasing pressures of economic globalisation,
A lack of attention to the connections between growth in the developed economy and employment and income generation opportunities for the poor in the underdeveloped economy,
A lack of attention to the core LED questions of enterprise and market development.
While this document was widely circulated, it was never officially released and failed to reach the Cabinet.
Policy Guidelines for Implementing LED in South Africa is the second major attempt by dplg to draft a national policy framework. The process began early 2003 and resulted in the circulation of a number of drafts, culminating in the officially circulated guidelines of March 2005. The following is the beginning of the Executive Summary of this document.
This national framework for LED in South Africa aims to support the development of sustainable local economies through integrated government action. This government action is developmental and stimulates the heart of the economy, which consists of a collection of enterprises including cooperatives that operate in local municipal spaces.
The framework is underpinned by an appreciation of the evolving practice of LED internationally and is based on the unique South African context and challenges. It contextualises the move towards ‘new institutionalism’ that breaks down the distinction between economy and society, showing how economic decision-making and action is shaped by the shared values, norms, beliefs, meanings, and rules and procedures, of the formal and informal institutions of society. The normative agenda of the New Institutionalism is to develop shared meaning and values, and to strengthen the networks of social interaction. This has also been variously described as building social capital, or developing social cohesion.
There are 9 guiding principles identified, supported by 7 main objectives and 8 main outcomes. These are:
Guideline Principles
1. Through a developmental approach, Government has a decisive and unapologetic role to play in shaping the economic destiny of our country.
2. Local Economic Development is an outcome of actions and interventions resulting from local good governance and the constant improvement and integration of national priorities and programs in local spaces.
3. Inward investment from the state or private sector will only be effective where the potential and competitive advantages of each area are known and exploited.
45 4. Promoting robust and inclusive local economies requires the concerted, coordinated action of all spheres and sectors of government centred on the application and localisation of the principles espoused in the National Spatial Development Perspective (NSDP).
5. Locally owned appropriate solutions and strategies must emerge to support national frameworks in both rural and urban local spaces and should promote sustainable development and sustainable human settlements.
6. South Africa competes in a global and increasingly integrated world economy whose threats must be minimised and whose opportunities must be exploited.
7. Private companies, including social enterprises and cooperatives, form the heart of the economy and have a crucial role to play as partnerships with public and community role players that will ultimately stimulate robust and inclusive local economies.
8. People are the single greatest resource and including all citizens in development and increasing their skills leads to increased opportunities for stimulating local economies.
9. Local initiative, energy, creativity, assertive leadership and skills will ultimately unlock the latent potential in local economies and will shape local spaces.
Objectives of the Framework
1. To shift towards a strategic approach to the development of local economies and overcome challenges and failures in respect of instances where municipalities themselves try to manage a litany of non-viable projects or start-ups.
2. To support local economies in realising their optimal potentials and making local communities active participants in the economy of the country.
3. To elevate the importance and centrality of effectively functioning local economies in growing the national economy.
4. To wage the national fight against poverty more effectively through local level debates, strategies and actions.
5. To improve community access to economic initiatives, support programmes and information.
6. To improve the coordination of economic development planning and implementation across government and between government and non-governmental actors.
7. To build greater awareness about the importance and role of localities and regions which globally are playing an increasingly significant role as points of investment facilitated by supportive national policies?
Outcomes of the Framework over the Next Five Years
1. Analysis of the 52 district and metro municipal economies undertaken and the development of a shared understanding of the challenges and potentials of these areas studied.
46 2. The competitive advantage of all District and Metro municipalities are identified, incorporated in its LED strategy and exploited.
3. All District and Metro Municipalities have credible LED programs, which are being effectively implemented by a dedicated local economic development unit or similar entity.
4. All Local Municipalities have at least one staff member (at least qualified through the LGSETA LED Learnership) dedicated to coordinating inputs that strengthen the local economy.
5. The implementation of the IGRF Act and the effective utilisation of IGR structures occur to encourage and facilitate discussion and joint economic planning among municipalities and with Provincial and National Government.
6. All municipalities have innovative spatial development strategies, land-use policies, by- laws and implementation capacity to facilitate fast and effective business establishment and functioning, especially for informal/street traders, and SME‟s.
7. All municipalities have at least one public-private partnership through which a major investment is being implemented.
8. A national excellence centre for monitoring, learning and research in local and regional economies is established.
The Policy Guidelines Conclude with Two Major Policy Thrusts and Four Key Strategies. They are:
Major Policy Thrusts
Public sector Leadership and Governance, and
Sustainable Community Investment Programmes,
Key Strategies
Build public and market confidence in municipalities,
Identify and exploit the comparative and competitive advantage of the 52 metro and district municipal regions,
Intensify enterprise support including for cooperatives tender,
Introduce sustainable community investment programmes focussing on organising committees for development and maximising circulation of public spending in local economies.
2.2.4 Criticism of the dplg LED Model
The dplg model has received criticism from many sources, three of which we will consider in detail:
47 Hindson and Vicente
Hindson and Vicente detail many objections to the dplg model, of which we will consider only a few:
The dplg model identifies „economic growth and poverty eradication‟ as the overall main goals of LED. These are to be achieved by two measures; (i) supply side measures which are national government policy and programmes in this regard; and (ii) self-driven measures, which bring central government policies and resources within the framework of locally conceived actions to promote LED. Hindson and Vicente believe this continues the mistake of keeping central government at centre-stage, which runs counter to international trends which see government playing an enabling rather than a driving role in LED. „A centrally-determined LED is, of course, an oxymoron‟.
The Guidelines are underpinned with the belief that, while macro-economic policy has been successful in stabilising the South African economy, it has failed to secure sufficiently high levels of growth to reduce poverty and unemployment. The main reason for this is that South Africa is still characterised by „two parallel economies‟. Hindson and Vicente believe that this dual economy model, which implies shifting resources from the first to the second economy in order to stimulate this economy and the employment it creates, is not without challenge and is caught up with the larger question of where the market works better than the state, and vice versa.
The Guidelines identify the 52 Metropolitan and District municipalities as the appropriate territorial areas for the development of local economies – and seek to create „robust and inclusive local economies‟ amongst all of them.
Hindson and Vicente do not believe that it is realistic to assume that all of these 52 territories can develop viable local economies within acceptable cost restraints. They agree with the National Spatial Development Perspective developed by the Presidency, which seeks to classify areas in terms of both economic potential and needs – in areas of both potential and need, government should fund fixed capital investment, but in areas of need only, basic social services only should be provided; and people encouraged to migrate out to areas of greater opportunity. LED policy should not focus only on local conditions, but also larger, even global, trends.
Current practice in LED sees four main spheres of LED – enterprise, locality and community development, and good governance.
Hindson and Vicente agree with the emphasis of the Guidelines on enterprise and locality development (improving the social, economic and environmental conditions in which business operate), but believe that the Guidelines have neglected community development (measures to improve the health, housing, education, welfare of households and communities in the locality) which is for them „an integral sphere of LED‟.
2.2.5 Pro-Poor LED in South Africa
While this enormous study does not explicitly criticise the Guidelines, the 6 Policy Implications that emerge from the research are often in contradiction to the Guidelines, or fill- in areas in which the Guidelines are silent. These Policy Implications are:
1. It is essential that municipalities do not just conflate economic growth and poverty objectives. Trickle-down of wealth is not significant, and specific activities are needed to
48 promote pro-poor growth). Concentrating support for the poor on basic services will not create economic livelihoods, and may continue to foster a dependency on the state. Thus, it is important to address growth of the formal First Economy, but also to target specifically the small-scale and informal Second Economy, and the case studies have indicated some means of doing so. Policy can explicitly target pro-poor development, either directly or indirectly, through the encouragement of appropriate market interventions.
2. There is a need to arrive at an acceptable series of definitions of just what is meant by key terms such as LED, pro-poor LED, pro-growth LED and pro-poor growth/inclusive LED. Pro-poor growth should include increasing growth linked with reducing poverty and decreasing inequality. Given the lack of consensus about these terms nationally and internationally, consensus is clearly needed.
3. It is essential to recognise the fundamental importance of the small/informal sector economy and to support its development as far as is possible which specifically favours SMMEs, CBOs and BEE companies. Much of this is potentially available in South Africa.
4. Having a policy in place does not guarantee that there will be pro-poor outcomes. There are real applied constraints on local governments, notably on implementation capacity which impact on the ability to implement change. Municipalities must be encouraged to devote realistic budgets and staff to LED Units, and LED services if results are to be attained. Pro-poor LED services and projects also need to be adequately financed. The current bias in favour of pro-growth economic activities and pro-poor spending on basic needs will, in many cases, not have significant pro-poor economic impacts. Developmentally, interventions need to be accepted as part of all municipal functions in practise and policy. LED officials also need to conceptualise the broader range of interventions, which influence poverty as being part of LED.
5. There is still far too much competition between levels of government including local and district municipalities, and between these municipalities and provinces. There is inadequate involvement of the private sector, with severe implications in terms of duplication and lack of synergy. Partnership formation/growth coalitions need to be encouraged strongly. The private and NGO sector in particular, where they exist in significant strength, need to be encouraged to contribute more meaningfully to local development, either through corporate social responsibility or coalition formation. They should be supported and encouraged to engage in collaborative and independent action.
6. It is critical that local governments initiate defined monitoring and evaluation programmes to gauge the success of their initiatives.
2.2.6 LED and the Policies of Sustainability
In May 2007 Wendy Grant and Mark Swilling wrote, as part of P-P LED in South Africa, a paper entitled ‘From LED to SLED? Local Government and the Policies of Sustainability’. It contains much that is noteworthy.
They note that we live in a highly unequal world, connected to rapidly degrading ecosystems, with looming threats connected to climate change, high oil prices and food insecurities. The challenge of sustainable development is to eradicate poverty and inequality, and in doing so to rebuild eco-systems and natural resources. While human needs continue to expand, our eco-systems are finite and are being substantially eroded.
49 Unlike many innovative cities around the world, South African Local Governments have, almost without exception, created and approved Integrated Development Plans and Local Economic Development Plans that depend on technologies prescribed by mainstream engineering, planning and architectural principals drawn almost entirely from American urban design traditions. This has resulted in:
The continued belief in an endless supply of cheap electricity generated principally by coal-fired power stations. Priority has not been given to energy efficiency or renewable energy options,
The continued use of road-based transportation solutions that favour the private car and minibus taxi,
Water and sanitation systems that fail to promote water efficiency, rainwater harvesting, re-use of grey water, etc. etc. Water demand will outstrip supply by 2030 as things now go – yet IDPs and LEDs rarely focus on water saving,
Almost no recycling of domestic waste,
While 15% of the world‟s food is grown in urban areas, South African local governments have done little to promote urban agriculture,
Despite many policy statements favouring compact cities, our society remains addicted to low density urban sprawl along road transportation routes, which increases average distances between home and work,
Low density spatial sprawl makes affordable public transportation economically unviable; it is mall-centred which destroys the social lifeblood of local communities as neighbourhood commercial centres collapse; it assumes cheap energy to make it work, and that funds are available to endlessly extend water, sanitation, road and storm water infrastructure systems,
Housing the poor on cheap land on the periphery is highly profitable for developers, but in the end costs the fiscus more than purchasing more expensive inner city land,
Sprawl in some areas has been so bad that it would be cheaper for the state to pay people to stay at home than to subsidize the costs of transporting them to work,
As the oil price rises, this will become an increasingly attractive proposition.
Local Government in South Africa is caught between two mutually exclusive paradigms: the municipal developmentalism that inspires the Municipal Systems Act, particularly its requirement of IDP‟s that include LED strategies, and the environmental conservationism that inspires the National Environmental Management Act, particularly the prescribed Environmental Impact Assessments (EIAs).
Neither of these policy frames adequately captures what sustainable urban development means. Efficient use of natural resources and increased use of renewable resources is simply not a requirement when it comes to IDPs and EIAs. However, if we can uncouple urban development from eco-system degradation and unsustainable use of resources, we move necessarily beyond the „development-conservationist‟ dualism.
More broadly, sustainability thinking and „ecologically sustainable development and use of natural resources‟ was never part of the core body of knowledge that informed the way IDPs were conceptualised.
50 The LED community does not typically consider its themes (whether in government, consulting firms or parastatals like DBSA). With few exceptions the consultants and officials involved with the formulation of IDPs and LED plans belong to a generation of development thinking entirely separate from ecological sciences. For them, the EIA community looks after environment – „the greenies‟.
This results in a fragmented approach where the relationships between social, economic and natural environmental concerns are treated separately. On the EIA side, a major policy shortcoming is that there is no provision for a mandatory EIA-type process at town or city level, only at project level. A recent review of the process of IDP formulation concludes that none of the IDPs has been informed by a strategic environmental assessment.
The authors place considerable value on the 2006 document, „National Framework for Sustainable Development in South Africa‟ (RSA 2006), which, they believe, will assist local governments „to lead the way in designing low carbon affordable and sustainable infrastructure‟.
2.2.7 Other Models for LED
There are three available sets of conclusions about LED Models, and proposed actions in the LED arena that can make a difference to a local community. They are:
Pro-Poor LED in South Africa This research programme recommends the following examples of pro-poor interventions in LED that can be applied:
Economic Development Can incorporate the elements in the table below, Strategy Should include interventions across the whole spectrum of municipal operations, not just in an economic development unit. Improving the local Creation of zones where combined residential and small business use business climate are permitted, Review of procurement procedures to permit informal businesses to access municipal contracts. Grants/rebates to attract Subsidised training and skills development of disadvantaged inward investment employees of investors. Non-financial support for Provision of land, planning rights if employ certain numbers of Inward Investment disadvantaged employees. Support to investors to use their corporate social investment fund in ways relevant to disadvantaged people/informal economy. Investment in Provision of incubators, infrastructure and Provision of market stands for informal traders, infrastructure-related Creation of produce markets, services Creation of input supply depots for farmers, Construction of access road, Contracts for community-based or SMME construction and maintenance, Support for specific infrastructure to support projects, e.g. the railway station in Creighton, Planning suitable infrastructure for service delivery in rural areas, e.g. cell phone payment of electricity bills, Indigent policy to support access of poor people to services. Investment in Provision of incubators. industrial/commercial sites Skills development Support for adult and functional literacy programmes, Skills training, Training in entrepreneurship and marketing.
51 Procurement support for Preferential procurement for SMMEs and for BEE companies, SMME’s/informal sector Promotion of procurement opportunities for informal businesses, Encouraging large business to source locally including from SMMEs and informal sector. SMME/Informal sector Subsidised business advice, support Support for collective marketing processes, Subsidised support for market research, tenders, export, Support for SMMEs (BEE or not), requiring progress to BEE standards, at least for employment and skills development, Support for collective organisations of informal traders to interact with authorities, Support for agriculture and land reform processes including commonages, Support for cooperatives, particularly service and marketing, cooperatives, as well as credit unions, Promotion of accessible and fair micro-finance schemes. Livelihoods support Improving access to cash transfers such as social grants, Support for agriculture for food security and incomes in both rural and urban areas, Promotion of periodic markets, Promotion of community-based service mechanisms, e.g. for waste, home-based care etc. Assessing which municipal services could be delivered or supported using community-based or SMME mechanisms. Capacity-building support for CBOs. Sectoral development Promotion of sectors based on local knowledge, skills and environment e.g. agriculture, agri-processing, culture and tourism. Special employment Subsidies for specific groups, e.g. disabled, youth to be employed or on schemes learnerships. Special development Particular incentives in development zones for labour-based industries, zones for employment or training. Research and information Analysing informal sector, supply Assessing livelihoods – baseline and regular evaluations, Undertaking participatory planning processes to obtain views of disadvantaged people on priorities and strategies, Assessing potential economic opportunities in disadvantaged areas, e.g. using PACA methodology.
The Hindson Vicente Model of Roles of Different Actors in LED This project has created two useful models – one of the roles of different actors in LED (see Table below) and the other of Institutional Arrangements for LED (second table).
Sphere of Central and Local Businesses Communities, Specialist LED Provincial Government and their CBO’s & service Government organisations community providers enterprises Enterprise Development Business Finances private BDS Intermediation Provision of Users Provision of Developmen some services specialised t Systems services to (BDS) SMMEs Finance Finances specialised Intermediation Intermediation Users Specialised SMME providers & micro finance provides matching provision finances Cluster & Can finance research Facilities cluster & Involved in Community Specialist value chain & upgrade initiatives VCs. development cluster & VCs & enterprise research and their governance involved in facilitation clusters &VCs Market Can support regional Facilities local Can facilitate Can link Provide development & international research & membership enterprises & specialist
52 research & facilitation facilitation involvement in households to services in MD specialist market providers development Organisation Encourages business Facilitates Creates & Creates and Can help al support organisation & unity business maintains supports facilitate organisation, business community producer & where needed associations enterprise other business associations Locality Policy, Responsible for Manage the whole Should be Should be planning & NSDS and PGDs territory, the involved in IDP‟s involved in IDPs management budget &the IDPs and economic of the form territory Basic Principal role of Important roles for Should play Should be more infrastructure coordination, financing, greater role in involved in & services financing & regulation coordinating & expressing need prioritisation, delivery & & priorities implementation regulation & maintenance Environment Providing legal Regulation Takes up Beneficiaries & Specialists, framework & business take up standard regulation opportunities opportunities setters & monitors Community Asset base Responsibility for Responsibility for Build and help Build asset base Specialist setting national providing basic maintain assets in partnership providers, standards, providing assets & services, and provide with local facilitators finance & regulation regulation, in some services government, partnership with play role in communities maintenance Organisation Provides a national Facilitates growth Creates own Creates own Can provide al support policy framework of local organisations organisations support for organisations organisation building Community Supportive legislation Provides a Linkages with Help to form and Specialists in enterprise such as on supportive community support service cooperatives environment enterprises as community provision for source inputs & enterprise community for sales enterprises Micro- Policy framework & Intermediation Users Users Providers finances support institutions BDS Policy framework & Intermediation Users Users Providers support institutions Market Provide supportive Intermediation Beneficiaries Beneficiaries Provide development policy environment & market finances for development specialists services
Institutional Arrangements for LED
ROLES OF ACTORS STAGES IN LED COSTS & WHO PROCESS BEARS THEM ADVANTAGES DISADVANTA GES Networks Based on mutual Good place to Low cost, local Low cost, Needs interest & delivery of start & can play resources, connects actors personal & tangible results roles at all stages resource sharing & is flexible institutional commitment & vulnerable to break down Units in LG Highlights lG role in It is best if these Staff & Gives LED May not be LED promotion emerge as need is administrative higher profile & priority & can demonstrated for costs borne by resources in LG dissipate them LG resources Fora Draws in re- May be a step May be Builds Can end as
53 preventative towards voluntary, costs relationships & talk shop or leadership of operational 7 can be shared shared vision platform for organised actors strategic or LG can cover power play partnerships costs Area Multiple roles Can follow a Shared costs, Strategic, short Durability, Partner- focussed on forum, can lead to shared run results maintaining ships delivering results an agency responsibilities oriented, flexible coherence, & rapid learning accountability & poverty focus Agencies Concentrates LED Should ideally Resource- Concentration of Can duplicate functions in one emerge out of intensive, skills & services roles, absorb agency, may or may strategic generally public coherence & resources, be not promote partnership, if funded durability, bureaucratic & partnerships need is clear delivery oriented inaccessible, may need region base
2.2.8 The World Bank’s LED Primer
The World Bank has funded a document entitled „Local Economic Development : a Primer Developing and Implementing Local Economic Development Strategies and Action Plans‟ by Greg Swinburn, Sofoya Goga and Fergus Murphy. Nine programmes developed in this document can be summarised as follows:
PROGRAMME POSSIBLE DEVELOPMENT DRIVER Improving the Land, property and development planning, Development facilitation (planning) local business investment climate Infrastructure provision and maintenance, Service delivery Business registration and licensing, Regulation Encouraging local business standards, Development facilitation (economic development) Internal operations and procedures, Governance and administration Investment promotion and marketing. Development facilitation (economic development) Investment in hard These focus on key large infrastructure Service delivery strategic improvements to make the area more attractive for infrastructure business retention, expansion and recruitment (e.g. roads, railways, ports, telecommunications, improving water supply and sanitation, improved electricity) Investment in Derelict site reclamation programmes, Service delivery sites and Adaptation of disused buildings, premises for Industrial and commercial site preparation, business Upgrading out of date or abandoned industrial premises, Developing industrial estates, business parks or science parks. Investment in soft This involves investing in or improving the infrastructure commercial environment for business and includes: Enabling or providing skills training Development facilitation (economic development) Providing increased business focused education Development facilitation (economic and access to education development) Supporting research and development Development facilitation (economic development) Provision of access to capital and finance Development facilitation (economic development) Supporting the development of business and trade Development facilitation (economic associations development) Improving the delivery of municipal services to Service delivery business
54 Social inclusion strategies Crime prevention measures Service delivery Encouraging local This involves providing advice, support and Development facilitation business growth resources to enable existing business to grow. (economic development) This includes procurement policies and buy local Governance and Administration campaigns Encouraging new This involves providing advice, technical support, Development facilitation (economic enterprise information and resources to help individuals to set development) up their businesses Promoting inward Attracting large manufacturing and service sector Development facilitation (economic investment employers into communities is one of the most development) difficult, frustrating and risks of LED strategies. Therefore, careful consideration should be given to the benefits of this type of strategy. Sector (and Cluster development is an approach that Development facilitation (economic business cluster) concentrates on encouraging and supporting inter- development) development firm collaboration, institutional development and targeted industrial sectors. These are sophisticated LED strategies and should only be undertaken following in-depth research Area Strategies for area targeting and regeneration Development facilitation (economic targeting/regenera address specific site or small area LED issues. development) tion strategies While most LED initiatives can be targeted at a municipal-wide level, area targeting examines a specific area within a municipality to address a specific area-based problem such as a redundant factory, a declining shopping area, a slum or a district.
2.2.9 Proposed Model / Process for Camdeboo
Taking the above into consideration, we recommend the following model for creating an LED Plan for Camdeboo.
First Steps:
1. CM to identify LED Team Leaders (Politician and Official),
2. Municipal team to be assembled,
3. Process to LED Policy agreed,
4. System to liaise with other levels of government to be agreed,
5. Stakeholders Group to be confirmed.
Participants from Government, Participants from Municipality, Participants from Business, Participants from Communities; CBOs; Community Enterprises, Specialist Service Providers.
REVIEW AND RECOMMENDATIONS PROCESSED AND DELIVERED
Review Municipality and its Processes
1. Analysis of Camdeboo Municipality‟s Annual Financial Statements, 30 June 2006.
55
2. Review of Camdeboo Municipality‟s Integrated Development Plan, 2007-2012.
3. By-Laws that affect Economic Action.
4. Supply Chain Management Policy.
5. One-Stop Business Agency.
6. Zoning Scheme.
7. Heritage Protection Policies.
8. Availability of Land.
9. The Camdeboo Municipality and Sustainability.
10. Water and Sanitation.
11. Camdeboo Municipality – Assessment of Other Municipal Infrastructure.
12. Conclusions
Assessment of Local Economy
1. Collect Data re Economy,
2. Audit, Identify Gaps,
3. Do Assessment in the following framework:
Agriculture - Mohair - Wool and Lamb/Mutton - Other Agriculture Opportunities . Cattle . Ostriches . Game Farming . Agave . Aloe Ferox . Camdeboo Bream Tourism
Commercial and Services
Government
Industry
4. Analyse Comparative Target Growth Sectors and advise on:
Business Development Services,
Possibility of Clusters and Value Chain Development,
56
Market Development,
Inward Investment,
LED Donors/Guarantors,
Business Finance,
Informal Sector Development and Policy Framework,
Integration of Low-Income Households into economy.
Create Vision and effect LED Programme
Stakeholders to Workshop Consultant‟s Review Document,
Goals and Objectives Set,
Develop LED Programme includes Targets,
Develop LED Project Profile,
Create Institutional Framework,
Create Monitoring and Evaluation System,
Create System to deliver Research and Information,
Create cycle of Strategic Review.
57 CHAPTER 3
Situational Analysis and Other Relevant Statistical Data
3.1 Introduction
Social and economic planning and policy formulation are very much reliant upon the availability of adequate (baseline) information that can be readily applied to the solution of relevant challenges as well as the effect of monitoring over a period of time.
The following sections present an overview of the social and economic information production process in the Camdeboo Municipality. In terms of the nature of the actual data produced this process had a two-fold focus, namely (a) Quality of Life (QOL) related information as well as (b) Aspects of Local Economic Development (LED) – both obtained at the household level.
3.2 QOL Focus
The QOL concept provides for a particularly rich variety of information, which extends beyond conventional socio-economic data. QOL basically refers to the quality of human existence – that is, how good and satisfying human life is (Scanlon, 1993). It is, needless to say, a particularly abstract concept and is therefore known to include both objective and subjective interpretations.
In its objective conceptualisation, QOL refers to a state of basic human need satisfaction (Griffin, 1986), with categories of basic needs forming its constituent parts or components (Knox, 1975). These categories usually include immediate needs such as food, water, clothing, health, education, and housing, as well as secondary needs such as sanitation, transport, communication, income, economic security, employment, political freedom, recreation, and a safe and aesthetic work, living and natural environment (Doyal & Gough, 1991). In the light of such needs, QOL in short is an indication of the access that people have to a variety of material goods and services, as well as the socio-economic conditions under which they exist.
In its subjective conceptualisation, QOL refers to the personal perceptions of people that are relevant to the quality of their existence. It includes components such as the level of satisfaction that people express towards available material goods and services, the socio-economic conditions under which they exist, as well as subjective assessments and evaluations of other aspects, which are relevant to the quality of their existence (Møller & Schlemmer, 1983).
3.3 QOL Assessment in the Camdeboo Municipality
For the Camdeboo Municipality, a combined objective-subjective empirical approach was followed in order to produce a wide range of QOL related information. With reference to this combined approach, the operational focus, in other words, is on the material goods and services that people have access to, the socio-economic conditions under which they exist, their satisfaction with the latter, as well as other subjective assessments. This operational approach predominantly conforms to that applied in QOL surveys and research in South Africa as well as abroad (Diener & Suh, 1997; Møller, 1997).
58 The following QOL related components and associated aspects were included for application and assessment concerning the Camdeboo Municipality:
Demographic Attributes – including:
- household size;
- categorisation of household head;
- language;
- gender;
- ethnicity; and
- age.
Socio-Economic Status – including:
- employment status;
- employment sector and duration of work;
- acquisition of skills;
- educational attainment (school and tertiary education);
- household income;
- forms of support used by households in ‘making a living’;
- livelihood support received by households;
- aspects of need and material deprivation (poverty);
- health (HIV/AIDS and TB); and
- safety and security.
Dwellings and Associated Services – including:
- dwelling type and ownership;
- land-line telephones;
- sanitation;
- electricity;
- water; and
- refuse removal.
59 Subjective Assessments of Aspects - including:
- personal economic situation at present and projected into the future;
- satisfaction with sanitation, electricity, water and refuse removal, as well as satisfaction with the dwelling as a whole;
- satisfaction with neighbourhood-based aspects and/or services (health care, public phones, safety and security, pollution, community and educational facilities, etc.);
- selection of aspects and/or services that households value the most;
- satisfaction with the neighbourhood as a whole; and
- past-present comparisons and future outlook regarding conditions in the neighbourhood as a whole.
Looking at the above, a wide range of relevant aspects is covered by the QOL focus. Relevance in this case means that considerable consensus exists amongst researchers and practitioners about the importance of these aspects, not only in a general QOL conceptual context (Rao, 1978; Carvalho & White, 1994), but also in the context of QOL challenges and related priorities in a contemporary South Africa (Schlemmer & Møller, 1997; Liebenberg & Pillay, 2000; Khosa, 2001).
3.4 LED Focus and Assessment in the Camdeboo Municipality
The QOL focus was included with the specific aim to aid the LED planning and policy process in the Camdeboo Municipality. This inclusion stems from a holistic approach to the question of LED that goes beyond the conventional concern with narrow economic baseline information alone. For example, it is the conviction here that the capability of people to successfully engage in local economic activity and thus to enhance their QOL largely depends on adequate access to the wider attributes associated with a secure, well-housed and serviced, healthy and well-educated population. Such attributes include most of the components and aspects covered by the above-mentioned QOL focus. Informational aspects with a more direct LED relevance nevertheless remain essential and were produced for the Camdeboo Municipality. Some of these are covered by the QOL focus, such as aspects of people‟s socio-economic status (their employment status and relevant employment sector, skills acquisition and educational attainment, for example). Two components, however, stand alone from the QOL focus, namely: a) spatial shopping behavior, and: b) migration.
The spatial shopping behavior component assesses the extent to which people shop outside the boundaries of their respective urban settlements leading to an outflow of money from such settlements. It also looks at the reasons for this particular shopping behavior, the recipient urban settlements, which gain from this, as well as the nature of produce, and services on which people spend their money in this case. It furthermore takes into account the nature of produce and services that are desired by people locally but are not available.
The migration component accounts for people leaving their respective urban settlements in order to locate elsewhere, taking with them skills, expertise, and so on. It looks, amongst others, at the reasons why they leave, their destinations as well as the relevant employment sectors that are at stake in this case.
60 The last-mentioned two components and associated aspects represent the informational types that are possible to produce at the household level. They, together with that contained under the QOL focus, add to LED related information and arguments that relate to a broader spatial focus, such as individual urban settlements or even the Camdeboo Municipality as a whole.
3.5 Data Collection
The following summary pertains to the collection of QOL and LED related information in the Camdeboo Municipality:
Information on the above-mentioned QOL and LED components and aspects were collected by means of a questionnaire survey at the household level in each of the three settlements, which form part of the Camdeboo Municipality – that is, Graaff-Reinet, Nieu- Bethesda and Aberdeen. The questionnaire used for this purpose appears in Annexure 1.
Consultative meetings with relevant Ward Councillors and municipal officials preceded the Camdeboo Municipality QOL and LED fieldwork survey. Consultation with Ward Councillors was essential to gain community support for the survey and to identify potential fieldworkers from each of the Camdeboo municipal wards.
A system of simple random sampling was used to identify the dwellings whose households were included in the survey. Demarcated satellite images of the Camdeboo settlements, superimposed on the relevant cadastral layer, served as sampling frame in this case.
A sample size of slightly more than 10% of all households in the three Camdeboo settlements of Graaff-Reinet, Nieu-Bethesda and Aberdeen applied to the QOL and LED fieldwork survey. The latest census information for the Camdeboo Municipality provided the point of departure in this case. In order to maximise the utility of information and reduce the effect of ecological fallacy, each of the three settlements was furthermore stratified into sub-places in terms of apparent levels of development. The number of households in the sample per sub-place is shown in Table 1.
Table 1: Sample size per sub-place
Settlement Sub-place Sample size
Graaff-Reinet Graaff-Reinet Town 169 Kekana Village 49 uMasizakhe 177 Kroonvale 303
Nieu-Bethesda Nieu-Bethesda Town 21 Pienaarsig 28
Aberdeen Aberdeen Town 52 Hagenheim/Lotusville 94 Mandela Square 72 TOTAL 965
61 Questionnaires were administered to households by five teams of local fieldworkers. Members of these teams were selected, as far as possible, based on their existing fieldwork experience and/or tertiary education and were furthermore subjected to a process of specialised training concerning the interpretation and communication of the relevant questionnaire items.
An extensive quality assurance system was employed in the Camdeboo fieldwork survey:
- The location of dwellings whose households were surveyed was captured by means of a Global Positioning System. This procedure returned images of the spatial distribution of the sample per individual neighbourhood and were helpful to ensure that an even survey coverage was obtained – particularly in neighbourhoods where unmarked and/or informal dwellings and unnamed streets limited the applicability of conventional sampling methods.
- An on-site project manager also headed each fieldwork team in order to minimise conventional data problems such the erroneous recording of responses and non- response errors. Questionnaires were furthermore thoroughly scrutinised before and after data capturing and potentially questionable and/or erroneous recording of responses as well as non-responses referred back to the fieldworkers for clarification and/or correction.
A team of trained data capturers, captured data into a custom designed system. The raw data was taken from the questionnaires following approval by the on-site manager. This database was subsequently subjected to a process of descriptive statistical analysis in order to produce the QOL and LED related data that is presented for the Camdeboo Municipality as a whole as well as each of the relevant sub-places.
3.6 Presentation of the QOL and LED Information
The QOL and LED related data produced for the Camdeboo Municipality is firstly presented in the conventional and tabled manner – in the form of separate data reports for every sub-place as well as the municipality as a whole.
The QOL and LED related data is, however, also presented in a more unrestricted and digital format. In other words, the way in which the data is depicted (in a single spreadsheet) includes the individual questionnaire items in the first column of the database, all applicable response options in the second column, as well as the corresponding numerical performance of all the Camdeboo sub-places which follow thereafter. The observer can thus view the entire database produced for the Camdeboo sub-places in an instant, which enables quick inter-place comparisons concerning any particular variable.
The user friendliness of the data is enhanced by its added availability in digital format. This enables the end user to customise the responses if so desired – by combining or ranking them for example – in order to suit the demands of individual queries.
3.7 QOL and LED Information - Summary of Results
The Camdeboo QOL and LED fieldwork survey involved a study of 965 households across nine urban sub-places. Key findings of this project – for the municipality as a whole with some data shown for all sub-places – include the following:
62 The Camdeboo Municipality is characterised by a very young population:
- Almost half of the entire population is younger than 25 years; and
- of this group of people, nearly a third is younger than 15.
Concerning ethnicity, Coloured people make up the majority of the population (64.5%), followed by Africans (22.1%), Whites (12.8%) and Asians (0.4%).
The predominant language spoken is Afrikaans (71.6%), followed by isiXhosa (20.7%) and English (6.9%).
The unemployment rate for the Camdeboo Municipality as a whole – expressed as a percentage of all people between the ages of 18 and 65 – stands at 25.3%. This aggregated figure however hides certain extremes at a local level. Unemployment in such cases as illustrated in the Table below varies between 40.0% for Kekana Village and 3.1% for Graaff-Reinet (Town).
Table 2: Unemployment in Camdeboo Municipality
Unemployment - % of population between 18 and 65 Settlement Sub-place years unemployed and looking for work Graaff-Reinet Graaff-Reinet Town 3.1 Kekana Village 40 uMasizakhe 29.3 Kroonvale 27.9
Nieu-Bethesda Nieu-Bethesda Town 15 Pienaarsig 25
Aberdeen Aberdeen Town 4.2 Hagenheim/Lotusville 27.8 Mandela Square 36.2
Four employment sectors dominate the situation of employed people in the Camdeboo Municipality, namely:
- Trade (business – wholesale/retail) 29%
- Community Services (Government departments – national, provincial, local) 20.5%;
- Construction 11.6%; and
- Domestic (homemaker, domestic service) 11.2%.
The acquisition of skills by the employed, in order to perform an economic function, is mostly based on in-service training (31.1%) and self-taught skills (30.3%). Only 17.0% of
63 all employed people acquired their skills through formal post-secondary school training and/or education. The table below provides a breakdown of this data by sub-place.
Table 3: Acquisition of skills by employed people in Camdeboo Municipality
Formal post-Grade 12 training/education Settlement Sub-place In-service training Self-taught (university, technikon, college) Graaff- Graaff-Reinet Town 24.9 36 11.9 Reinet Kekana Village 7.7 7.7 50 uMasizakhe 17 35.8 24.5 Kroonvale 10.6 55.3 15.9
Nieu- Nieu-Bethesda Town 3.8 11.5 65.4 Bethesda Pienaarsig 0.0 17.1 71.4
Aberdeen Aberdeen Town 30.8 28.3 14.2 Hagenheim/Lotusville 1.6 6.3 84.4 Mandela Square 0.0 2.4 92.9
Education is a significant challenge in the Camdeboo Municipality:
- Less than 40% of all people older than 18 years have completed their primary school education (Grade 7);
- less than 30% have completed Matric (Grade 12); while
- only about 10% have some form of tertiary education.
The predominant monthly household income – in the case of about 65% of all households – varies between R801 and R3,500, with the largest share 37.6% falling within the R801 – R1,500 income category. Only about 20% of all households in the Camdeboo Municipality earn more than R3,500 per month. The table below provides a breakdown of the monthly household income by sub-place.
Table 4: Monthly household income by sub-pace in in Camdeboo Municipality
ABD - ABD - GRN - GRN - GRN - GRN - NBD - NBD - ABD - T HL MS Krv T Kekn uMz Pns T No Income 3.3 1.4 0.0 2.3 2.9 15.2 2.3 0.0 0.0 R1 – R200 3.3 2.8 0.0 1.7 0.0 6.5 2.3 0.0 0.0 R201 – R500 16.3 15.5 0.0 3 0.0 13.0 2.3 0.0 0.0 R501 – R800 8.7 5.6 0.0 4 0.0 8.7 5.7 10.7 5.9 R801 – R1500 38 47.9 2.3 41.8 7.1 30.4 43.1 71.4 41.2 R1,501 – R3,500 30.4 26.8 20.9 29.8 17.1 19.6 31 10.7 35.3 R3,501 – R4,500 0.0 0.0 7 7.4 4.3 2.2 2.3 0.0 0.0
64 R4,501 – R6,000 0.0 0.0 4.7 4.3 2.9 4.3 1.1 7.1 0.0 R6,001 – R8,000 0.0 0.0 30.2 1.3 12.9 0.0 4 0.0 11.8 R8,001 – R11,000 0.0 0.0 11.6 1.3 14.3 0.0 1.7 0.0 0.0 R11,001 – R16,000 0.0 0.0 16.3 2.0 18.6 0.0 1.1 0.0 0.0 R16,001 – R30,000 0.0 0.0 7 0.7 12.9 0.0 2.9 0.0 5.9 R30,001 and above 0.0 0.0 0.0 0.3 7.1 0.0 0.0 0.0 0.0 TOTAL 100 100 100 100 100 100 100 100 100
ABD - HL = Aberdeen - Hagenheim/Lotusville GRN - Krv = Graaff-Reinet - Kroonvale ABD - MS = Aberdeen - Mandela Square GRN - T = Graaff-Reinet - Town ABD - T = Aberdeen - Town GRN - Kekn = Graaff-Reinet - Kekana Village NBD - Pns = Nieu-Bethesda - Pienaarsig GRN - uMz = Graaff-Reinet - uMasizakhe NBD - T = Nieu-Bethesda - Town
Government Grants play a significant role in assisting households in making a living, with 41.0% of all households in this context relying on an Old Age Pension and 28.1% on a Child Support Grant for example.
With poverty a concern in the Camdeboo Municipality, more than 25% of all households cannot always afford food, clothing, health care, transport and education. The problem of poverty in this context is naturally more severe in some sub-places than others as illustrated in the table below.
Table 5: Aspects of need experienced by households in Camdeboo Municipality
% households with not enough ABD - ABD - GRN - GRN - GRN - NBD - NBD - ABD - T GRN - T money in past 12 HL MS Krv Kekn uMz Pns T months for … Shelter (bond or 6.4 8.5 1.9 30.8 6 26.7 31.3 25.9 4.8 rent) Food 11.7 30.6 1.9 43.7 4.9 31.8 37.5 10.7 0.0
Clothing 18.1 40.3 9.6 53.8 12.8 50 47.6 21.4 23.8
Electricity 7.4 18.1 1.9 34 4.3 31.1 34.5 17.9 0.0
Water 6.4 16.7 0.0 27.7 4.9 28.3 31 14.3 0.0
Health care 44.7 8.5 34.6 52.8 17.1 48.9 47.6 0.0 0.0
Transport 58.5 27.8 36.5 57.2 14 42.6 44 42.9 14.3
Leisure 63.4 37.5 51.9 66.9 25.9 57.8 58.3 50 38.1 A land-line 87.2 77.8 78.8 64.9 41.5 63.8 60.5 7.1 4.8 telephone Education 34 23.6 9.6 58.7 6 44.7 48.8 10.7 9.5
ABD - HL = Aberdeen - Hagenheim/Lotusville GRN - Krv = Graaff-Reinet - Kroonvale ABD - MS = Aberdeen - Mandela Square GRN - T = Graaff-Reinet - Town ABD - T = Aberdeen - Town GRN - Kekn = Graaff-Reinet - Kekana Village NBD - Pns = Nieu-Bethesda - Pienaarsig GRN - uMz = Graaff-Reinet - uMasizakhe NBD - T = Nieu-Bethesda - Town
65 Material deprivation manifests at considerable levels in the Camdeboo Municipality, with:
- 68.8% of all households without a motor vehicle in working order;
- more than 85% without a computer;
- 55% without an electrical washing machine; while
- 70.9% do not enjoy the luxury of a hot water geyser.
Material deprivation also shows remarkable differences between the sub-places as evident in the table below.
Table 6: Household material deprivation in Camdeboo Municipality
% households ABD - ABD - GRN - GRN - GRN - NBD - NBD - ABD - T GRN - T without ... HL MS Krv Kekn uMz Pns T A motor vehicle in working 93.6 94.4 40.4 81.1 12.7 93.9 78.3 89.3 40 condition At least one cell 43.6 29.2 13.5 33.3 7.8 38.8 39.2 39.3 25 phone A television 38.3 31.9 0.0 13.2 3 28.6 19.8 21.4 35
A radio 44.7 27.8 63.5 23.5 16.3 40.8 22.2 35.7 15
A computer 97.9 97.2 70.6 94 60.2 98 90.9 96.4 75
An electric stove 20.2 13.9 0.0 15.2 5.5 33.3 18.1 17.9 20
A microwave 75.5 70.8 53.8 51.3 9.1 63.3 48.9 67.9 50 An electric washing 76.6 84.7 38.5 57.6 8.5 87.8 65.9 64.3 45 machine A vacuum 98.9 100 82.7 92 30.9 93.9 91.4 92.9 50 cleaner A fridge 43.6 37.5 0.0 16.6 0.6 36.7 24 32.1 25 Piped hot water 97.9 100 1.9 91.3 1.8 97.9 87.2 96.4 50 (geyser)
ABD - HL = Aberdeen - Hagenheim/Lotusville GRN - Krv = Graaff-Reinet - Kroonvale ABD - MS = Aberdeen - Mandela Square GRN - T = Graaff-Reinet - Town ABD - T = Aberdeen - Town GRN - Kekn = Graaff-Reinet - Kekana Village NBD - Pns = Nieu-Bethesda - Pienaarsig GRN - uMz = Graaff-Reinet - uMasizakhe NBD - T = Nieu-Bethesda - Town
37.3% of all household heads feel that the economic situation of their households has deteriorated over the past 5 years, while 28.3% are of the opinion that it actually has improved over this time.
Almost 20% of all households in the Camdeboo Municipality sometimes buy goods and/or services in another town, mainly because of:
66 - a greater variety of goods and/or services there (27.2%); and
- the fact that such goods and/or services are relatively cheaper (24.9%).
Extreme values in this case are however hidden by the last-mentioned aggregate value for the Camdeboo Municipality as a whole.
- Nieu-Bethesda (Town) 73.7%, Aberdeen (Town) 63.5%, Nieu-Bethesda (Pienaarsig) 60.7% and Graaff-Reinet (Town) 47.7% all reflect relatively high percentages of people buying goods and/or services elsewhere.
Food and groceries (including alcohol / tobacco), clothing and bedding (sheets, blankest, etc.), entertainment (including restaurant visits) and furniture, in this order, represent the main bundle of goods and/or services that people seek elsewhere.
Clothing and bedding (sheets, blankets, etc.), food and groceries (including alcohol / tobacco), furniture and medical services (including dentist, pharmacy, medical doctor, psychological services), in this order, represent the main bundle of goods and/or services that people prefer to buy locally but are not always available.
Concerning migration, 17.9% of all household members have left their respective settlements over the past 5 years.
- More than half of these people went to the Western Cape Province and in the case of more than 80%, the reason for leaving was specifically employment related.
- Employment sectors mostly implicated in the last case are, in order of appearance, Trade (business – wholesale/retail), Domestic (homemaker, domestic service) and Community Services (Government departments – national, provincial, local).
Almost four out of every ten people in the Camdeboo Municipality do not know their HIV/AIDS status, while the corresponding number for TB is slightly higher. Percentages for the individual sub-places are given in the tables below.
Table 7: Awareness of HIV/AIDS status in Camdeboo Municipality (ranked)
% household heads unaware of Sub-place their HIV/AIDS status
Nieu-Bethesda - Pienaarsig 53.6 Aberdeen - Town 50 Graaff-Reinet - Kekana Village 47.9 Aberdeen - Mandela Square 43.1 Nieu-Bethesda - Town 42.1 Graaff-Reinet - Kroonvale 38.3 Graaff-Reinet -Town 33.7 Graaff-Reinet - uMasizakhe 31.6 Aberdeen - Hagenheim/Lotusville 22.3
67 Table 8. Awareness of TB status in Camdeboo Municipality (ranked)
% household heads unaware of Sub-place their TB status Aberdeen - Town 82.7 Graaff-Reinet -Town 52.1 Graaff-Reinet - uMasizakhe 43.9 Graaff-Reinet - Kekana Village 41.7 Aberdeen - Mandela Square 37.5 Graaff-Reinet - Kroonvale 36.6 Nieu-Bethesda - Pienaarsig 28.6 Aberdeen - Hagenheim/Lotusville 26.6 Nieu-Bethesda - Town 21.1
Of the heads of households who had indicated that they suffer from TB at present, almost 25% had never received treatment at all.
Apart from land-line telephones – 70.1% of all dwellings do not have a land-line telephone installed – dwellings in the three urban settlements of the Camdeboo Municipality are fairly well serviced:
- 96.7% of all dwellings either have a flushing toilet inside or outside the dwelling. Percentages by sub-place are given in the table below.
Table 9: Sanitary services in Camdeboo Municipality
ABD - ABD - GRN - GRN - GRN - NBD - NBD - ABD - T GRN - T HL MS Krv Kekn uMz Pns T Toilet inside 59.1 52.1 100.0 48.8 98.2 61.2 41.7 7.1 73.3 dwelling (flushing) Toilet outside 40.9 45.1 0.0 50.2 1.2 38.8 57.7 21.4 0.0 dwelling (flushing) Toilet outside dwelling (currently 7 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.0 0.0 buckets only) Toilet outside 0.0 1.4 0.0 0.7 0.6 0.0 0.6 71.4 20.0 dwelling (pit)
ABD - HL = Aberdeen - Hagenheim/Lotusville GRN - Krv = Graaff-Reinet - Kroonvale ABD - MS = Aberdeen - Mandela Square GRN - T = Graaff-Reinet - Town ABD - T = Aberdeen - Town GRN - Kekn = Graaff-Reinet - Kekana Village NBD - Pns = Nieu-Bethesda - Pienaarsig GRN - uMz = Graaff-Reinet - uMasizakhe NBD - T = Nieu-Bethesda - Town
- 98.6% of all dwellings are electrified (conventional meters or pre-paid systems). Percentages by sub-place are given in the table below.
68 Table 10: Electricity supply in Camdeboo Municipality
ABD - ABD - GRN - GRN - GRN - NBD - NBD ABD - T GRN - T HL MS Krv Kekn uMz Pns - T Electricity with conventional 1.1 0.0 46.2 8.4 81.7 2 8.0 0.0 11.1 meters Electricity with 98.9 100.0 53.8 89.9 17.8 91.8 91.4 100 72.2 prepaid card Other electricity supply, e.g. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 generators (wind, petrol, etc.) Dwelling does NOT 0.0 0.0 0.0 1.7 0.6 6.1 0.6 0.0 16.7 have electricity
ABD - HL = Aberdeen - Hagenheim/Lotusville GRN - Krv = Graaff-Reinet - Kroonvale ABD - MS = Aberdeen - Mandela Square GRN - T = Graaff-Reinet - Town ABD - T = Aberdeen - Town GRN - Kekn = Graaff-Reinet - Kekana Village NBD - Pns = Nieu-Bethesda - Pienaarsig GRN - uMz = Graaff-Reinet - uMasizakhe NBD - T = Nieu-Bethesda - Town
- 98.2% of all dwellings have piped water, either inside the dwelling or inside the yard. Percentages by sub-place are given in the table below.
Table 11: Household water supply in Camdeboo Municipality
ABD - ABD - GRN - GRN - GRN - NBD - NBD - ABD - T GRN - T HL MS Krv Kekn uMz Pns T Piped water (tap) inside 32.3 18.1 100 35 98.8 27.1 31.8 85.7 52.6 dwelling
Piped water 66.7 79.2 0.0 64.7 0.0 72.9 68.2 7.1 0.0 (tap) inside yard
Community tap < 200m from 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 dwelling Community tap > 200m from 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 dwelling Borehole / rainwater tank / 0.0 0.0 0.0 0.0 0.6 0.0 0.0 0.0 26.3 well
Dam / river / 0.0 0.0 0.0 0.3 0.0 0.0 0.0 0.0 0.0 stream / spring Other: (i.e. water kiosk, water vendor, 1.1 2.8 0.0 0.0 0.6 0.0 0.0 7.1 21.1 tanker, nearby house)
ABD - HL = Aberdeen - Hagenheim/Lotusville GRN - Krv = Graaff-Reinet - Kroonvale ABD - MS = Aberdeen - Mandela Square GRN - T = Graaff-Reinet - Town ABD - T = Aberdeen - Town GRN - Kekn = Graaff-Reinet - Kekana Village
69 NBD - Pns = Nieu-Bethesda - Pienaarsig GRN - uMz = Graaff-Reinet - uMasizakhe NBD - T = Nieu-Bethesda - Town
- In the case of 87.2% of all dwellings, refuse bags are removed by the local authority at least once a week. Percentages by sub-place are given in the table below.
Table 12: Refuse removal in Camdeboo Municipality
ABD ABD - GRN - GRN - GRN - NBD - ABD - T GRN - T NBD - T - HL MS Krv Kekn uMz Pns Refuse bags removed from the house by 98.9 100 100 85.5 98.8 88.9 85.1 0.0 15.8 local authority at least once a week Refuse bags removed from the house by local authority, less 1.1 0.0 0.0 13.1 0.0 8.9 13.7 0.0 10.5 often (e.g. once every 2/3 wks) Refuse house bins emptied at the house 0.0 0.0 0.0 0.3 0.0 2.2 1.1 100 52.6 by local authority at least once a week Refuse house bins emptied at the house 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 by local authority, less often Removal by local authority from 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 community refuse container Placed on communal refuse dump but not 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 collected by local authority
Placed on own refuse dump but not collected 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 by local authority
Other means of disposal (e.g. burnt in 0.0 0.0 0.0 1 1.2 0.0 0.0 0.0 21.1 pit)
ABD - HL = Aberdeen - Hagenheim/Lotusville GRN - Krv = Graaff-Reinet - Kroonvale ABD - MS = Aberdeen - Mandela Square GRN - T = Graaff-Reinet - Town ABD - T = Aberdeen - Town GRN - Kekn = Graaff-Reinet - Kekana Village NBD - Pns = Nieu-Bethesda - Pienaarsig GRN - uMz = Graaff-Reinet - uMasizakhe NBD - T = Nieu-Bethesda - Town
Levels of satisfaction with municipal services by household heads are remarkably high:
- Sanitary services (toilet), electricity supply, main water source and refuse collection all attract satisfaction levels above the 79.7% mark.
70 Slightly more than a quarter of all household heads feel that their neighbourhoods are not safe. Main reasons for this generally include the following, namely the incidence of:
- Alcohol and drug abuse; - housebreaking; - murder; - public violence; and - rape.
The perception of unsafe neighborhoods for each of the sub-places is shown in the table below followed by the most important safety concern in each.
Table 13: Perception of unsafe neighborhoods by sub-place in Camdeboo Municipality (ranked)
% household heads who feel Sub-place that their neighbourhoods are not safe
Aberdeen - Town 96.2 Graaff-Reinet - Kekana Village 53.8 Graaff-Reinet - Kroonvale 41.2 Graaff-Reinet - uMasizakhe 29.8 Aberdeen - Hagenheim/Lotusville 18.3 Graaff-Reinet -Town 16.7 Aberdeen - Mandela Square 8.6 Nieu-Bethesda - Town 5.3 Nieu-Bethesda - Pienaarsig 0.0
Table 14: Most important safety concern by sub-place in Camdeboo Municipality
Sub-place Most important safety concern
Aberdeen - Town Area is too dark at night / insufficient street lights Alcohol and drug abuse / People are often intoxicated / Graaff-Reinet - Kekana Village drunk Alcohol and drug abuse / People are often intoxicated / Graaff-Reinet - Kroonvale drunk Alcohol and drug abuse / People are often intoxicated / Graaff-Reinet - uMasizakhe drunk Aberdeen - Hagenheim/Lotusville Area is too dark at night / insufficient street lights Graaff-Reinet -Town Houses are often broken into Aberdeen - Mandela Square Rape Nieu-Bethesda - Town Houses are often broken into Nieu-Bethesda - Pienaarsig –
71 The five biggest neighbourhood-based concerns, from a household head dissatisfaction point of view, include: - The quality of roads in the neighbourhood; - pavements / sidewalks; - the draining of storm water after rainfall events; - the quality of police protection; and - the safety of persons and their possessions.
The most important concern by sub-place is shown in the table below.
Table 15: Most important neighbourhood-based concern by sub-place in Camdeboo Municipality
Sub-place Most important concern
Graaff-Reinet -Town Quality of police protection in the neighbourhood. Graaff-Reinet - Kekana Accessibility of primary health care services in or near the neighbourhood (e.g. Village clinic). Graaff-Reinet - uMasizakhe Pavements / sidewalks in the neighbourhood (general). Graaff-Reinet - Kroonvale Accessibility of a police station in or near the neighbourhood. Aberdeen - Town Illumination of the neighbourhood at night by street lights / high mast lights, etc. Aberdeen - Quality of roads in the neighbourhood. Hagenheim/Lotusville Aberdeen - Mandela Square Quality of roads in the neighbourhood (general). Nieu-Bethesda - Town Quality of roads in the neighbourhood (general). Nieu-Bethesda - Pienaarsig Accessibility of a hospital in or near the neighbourhood.
The three services that are generally most important to households, according to household heads, are all health related and include:
- Accessible primary health care services; - an accessible hospital; and - ambulance services.
The most important service by sub-place is shown in the table below.
Table 16: Most important service by sub-place in Camdeboo Municipality
Sub-place Most important service
Graaff-Reinet -Town Accessible shops for the purchase of daily groceries. Graaff-Reinet - Kekana Village Ambulance services. Graaff-Reinet - uMasizakhe Ambulance services. Graaff-Reinet - Kroonvale Ambulance services. Aberdeen - Town Accessible hospital. Aberdeen - Hagenheim/Lotusville Accessible primary health care services. Aberdeen - Mandela Square Accessible primary health care services. Accessible primary health care services / Good quality health care at primary Nieu-Bethesda - Town health care services. Accessible primary health care services / Good quality health care at primary Nieu-Bethesda - Pienaarsig health care services.
72 Levels of satisfaction with the neighbourhood as a whole are high with 61.1% of all household heads indicating that they are either satisfied or very satisfied in this case. The table below shows levels of satisfaction, ranked from highest to lowest levels, by sub- place.
Table 17: Levels of satisfaction with the neighbourhood as a whole by sub-place in Camdeboo Municipality (ranked)
Satisfaction with the neighbourhood as a whole
Sub-place dissatisfied neutral satisfied Aberdeen - 3.2 6.4 90.4 Hagenheim/Lotusville Aberdeen - Mandela Square 4.2 11.1 84.7 Graaff-Reinet -Town 3 12.4 84.6 Nieu-Bethesda - Town 15.8 10.5 73.7 Nieu-Bethesda - Pienaarsig 17.9 21.4 60.7 Graaff-Reinet - Kekana 8.3 35.4 56.3 Village Graaff-Reinet - Kroonvale 14.9 37.2 48 Graaff-Reinet - uMasizakhe 11.4 46.3 42.3 Aberdeen - Town 7.8 54.9 37.3
41.8% of all household heads feel that general conditions in their residential areas have improved over the past 5 years, while almost 50% are of the opinion that conditions will improve further in the near future.
- The percentage of household heads who feel that general conditions in their residential areas have deteriorated over the past 5 years is shown by sub-place in the table below.
Table 18: Household heads who feel that general conditions in their residential areas have deteriorated (ranked)
% household heads who feel that general conditions in their Sub-place residential areas have deteriorated Aberdeen - Town 66.7 Nieu-Bethesda - Town 36.8 Aberdeen - Hagenheim/Lotusville 24.5 Graaff-Reinet -Town 21.5 Graaff-Reinet - Kroonvale 17.2 Aberdeen - Mandela Square 15.3 Graaff-Reinet - uMasizakhe 14.9 Nieu-Bethesda - Pienaarsig 14.3 Graaff-Reinet - Kekana Village 2.1
73 3.8 Business Analysis
3.8.1 Introduction
The economy of the greater Camdeboo area is small and unsophisticated and growth is stunted due to a large leakage of income to other areas. A low skills profile and high unemployment levels add to curtailing the economic growth and development of this area.
For this area to substantially increase its economic profile, profitable economic activity within the area needs to be identified and encouraged. This will ultimately raise local employment levels, encourage training and skills development activities, and bring about increased income levels - which will encourage further economic development in the area.
Residents in the area have a relatively low skills profile. Poverty levels are high, and residents are highly dependent on government grants and subsidies. What follows is a summary of results from a qualitative research exercise involving a selection of the population and traders from the Camdeboo area intended to gain insight into quality of life and trader perspectives.
These insights are used to complement a multi-dimensional analysis aimed at identifying need and demand that may provide opportunities for enterprise, investment and development in Camdeboo area. The results of such an exercise are typically used to structure and give direction to qualitative research.
3.8.2 The Value of the Information
Having accurate information regarding the socio-economic needs of the Camdeboo area affords stakeholders the unique opportunity to contribute to economic enabling conditions, allowing the opportunity for profitable partnerships between the Public and Private Sector and encouraging a more self-sufficient economy with sustainable results.
3.8.3 Camdeboo Trade Audit Highlights
The following presentation offers a top-level overview of the Trade environment in the areas covered for the Camdeboo Survey.
Detailed drill downs can be accessed by direct manipulation of the database.
Table 19: 354 Business entities were identified, of which most are situated in Graaff-Reinet
Town: Total Businesses read ABERDEEN 89 ADENDORP 5 GRAAFF-REINET 232 NIEU - BETHESDA 28 Grand Total 354
74 3.8.4 Business Activities Clustered
As expected General Trade [Such as Convenience stores, Spazas, Superettes etc,] in addition to other retail, dominates the business sector. Also of note is Hospitality, Automotive related sales and services, and specialized trade, e.g. Video shops, Hairdressers, etc.
Table 20: Business Activities Clustered
CATEGORY QUESTION CLUSTER Number Percent BUSINESS ACTIVITIES Core business Arts and Crafts 19 5% Automotive 21 6% Baking 2 1% Building 6 2% Education 1 0% Electrical/Plumbing 5 1% Farming 5 1% Financial Services 2 1% General Trade 77 22% Hospitality 42 12% Liquor 11 3% Manufacture 3 1% Medical 9 3% Other 12 3% Petrol 5 1% Professional Services 20 6% Restaurant 24 7% Retail 67 19% Special Trade 23 6% Core business Total 354 100%
Monthly Turnover - Income data was very seldom offered. Of those who indicated income: Hospitality dominates. This data is not substantive.
ABERDEEN ADENDORP GRAAFF-REINET NIEU - BETHESDA
16000 15000
14000
12000
10000
8000
6000 5600 5000
4000 3280 3000
1800 2000 950
0 Arts and Crafts General Trade Hospitality Liquor Restaurant Retail Approximate turnover per month: BUSINESS INCOME AND EXPENSES
75 Employment: Casual vs. Salary In the ratio between Casual vs. Permanent employment, the tendency is towards salaried/wage employment. People Employed: Casual People Employed: Salary
10
9
8
7
6
5 5
4
3
2
1 1
0 BUSINESS ACTIVITIES
Employment: Casual vs. Salary Digging deeper, we find that the main variance in Salaried vs. Casual employment is in Graaff-Reneit, where the ratio is 6 to 1. In other centers, it is more like 2 to 1.
People Employed: Casual People employed: Salary
30
25
20
15
10
6
5
2 2 1 1 2 0 1 0 ABERDEEN ADENDORP GRAAFF-REINET NIEU - BETHESDA BUSINESS ACTIVITIES
Employment: Casual vs. Salary
76 Only in the local manufacturing segment do we see more casuals employed than salaried. This is a typical trait of this sector, and must therefore reflect the type of manufacturing occurring in the area.
People Employed: Casual People employed: Salary
30
25 25
20
15
11 11 10
6 6 5 5 5 5 4 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 1
0
Other
Retail
Petrol
Liquor
Baking
Medical
Building
Farming
Education
Hospitality
Services
Restaurant
Automotive
Professional
Manufacture
Special Trade Special
General Trade General
Arts and Crafts and Arts
Financial Services Financial Electrical/Plumbing BUSINESS ACTIVITIES
Business Profiles The loosely clustered profiles for each town are of interest. As expected, Graaff-Reinet has the widest range of activities.
Arts and Crafts Automotive Baking Building Education Electrical/Plumbing Farming Financial Services General Trade Hospitality Liquor Manufacture Medical Other Petrol Professional Services Restaurant Retail Special Trade
100% 1% 0% 0% 9% 13% 90% 20% 25% 7% 80% 0% 20% 6% 1% 70% 6% 20% 6% 14% 0%1% 7% 6% 0% 60% 4% 2% 0% 9% 3% 11% 50% 20% 3% 2%1%
40% 0% 13% 14%
0% 30% 37% 17% 20% 40% 0% 32% 2%1% 1% 0% 10% 2% 0%3% 1%0% 3% 7% 0% 3% 0% 3% ABERDEEN ADENDORP GRAAFF-REINET NIEU - BETHESDA Core business BUSINESS ACTIVITIES
Head/Regional Offices Combining “None and Not specified”, 90% of Businesses do NOT have Head/Regional Offices. This indicates a high degree of Individual rather than Franchised/Corporate owner-
77 ship. The high incidence of Johannesburg Head office is not unusual. Port Elizabeth is also dominant.
NONE NOT SPECIFIED PORT ELIZABETH JOHANNESBURG CAPE TOWN GRAAFF-REINET GEORGE UITENHAGE BLOEMFONTEIN DURBAN MIDDLEBURG MIDRAND MOSSEL BAY QUEENSTOWN TULBACH DUBAI DURBANVILLE PAROW PINETOWN PRETORIA
100% 0% 0% 0% 1%0% 1%0% 1% 2%0% 0%1% 3% 5% 1% 90% 3% 3%
80%
70%
60%
50% 87% 87% 40%
30%
20%
10%
0% Head office Regional office BUSINESS ACTIVITIES
Location of Supply
38% are not externally supplied. GR and P.E. dominate.
Location Of Supply
100%
80%
60% 38% 40% 29% 18% 20% 4% 3% 2% 1% 1% 0%
NA
DURBAN CAPE TOWN ABERDEEN UITENHAGE
GRAAFF-REINET PORT ELIZABETH JOHANNESBURG
Location of Supply
Graaff-Reinet and Port Elizabeth supply the widest variety of Businesses. Note approximately 10% in the retail sector are supplied by Johannesburg suppliers. Aberdeen is found in Liquor and General Trade, suggesting Wholesaling from that area.
78 NA Graaf Reinet Port Elizabeth Johannesburg Durban Aberdeen Uitenhage Cape Town Other
100% 0% 0% 0%
90% 18% 7% 26% 33% 18% 6% 13% 80% 19% 0% 14% 16% 50% 33% 33% 7% 70% 13% 25% 40% 34% 5% 18% 36% 60% 0% 24% 24% 38% 53% 50% 100% 0% 6% 40%
40% 8% 40% 75% 26% 69% 67% 63% 63% 30% 58% 56% 50% 50% 48% 45% 44% 20% 36% 36% 29% 29% 26% 10% 20%
0%
Other
Retail
Petrol
Liquor
Baking
Medical
Building
Farming
Education
Hospitality
Services
Restaurant
Automotive
Professional
Manufacture
Special Trade Special
General Trade General
Arts and Crafts and Arts
Financial Services Financial Electrical/Plumbing Location SUPPLIER DETAILS
Population Served
Local trade dominates at 72%. About 1/3 claim to have Provincial/National coverage. However, this seems an exaggeration, probably due to individual misunderstanding of the question.
Population Served
100 80 72 56 60
40 33 15 20 0 Only Local Community Spread Across Town Serves Other Towns Provincial/National Coverage
Barriers to Business
75% of respondents indicated that their businesses were limited.
79 ECONOMY LACK OF CAPITAL INFRASTRUCTURE COMPETITION FUEL PRICES OTHER SMALL POPULATION RED TAPE ISOLATION LACK OF SKILLED LABOUR PRICE RISES ADVERTISING/MARKETING CRIME
25% 23%
20%
17%
15% 14%
10%
7% 6% 6% 5% 5% 5% 4% 4% 4% 3%
2%
0% Total
3.8.5 Sustainable Communities
Introduction
Sustainability is often described as a process of change, progress or transition over time towards sustainable development as an ultimate aim (USNRC, 1999; Urquhart & Atkinson, 2000; Oelofse, 2001; Maloutas, 2003). Sustainable development – popularly defined as „Development that meets the needs of the present without compromising the ability of future generations to meet their own needs‟ (WCED, 1987:43) – is generally known to encompass at least three (sustainability) dimensions (NMBM, 2007), and these are:
Protection and conservation of natural resources (environmental sustainability);
satisfying basic human needs (social sustainability); and
facilitating economic growth and prosperity, as well as adequate employment opportunities for all (economic sustainability).
Looking at the last-mentioned sustainability dimensions, a sustainable community can therefore primarily be described as something in which people‟s quality of life (QOL) takes precedence – through basic need satisfaction, economic growth and adequate employment opportunities – all facilitated in a manner that does not compromise the health and integrity of the natural environment.
Towards Sustainable Communities in the Camdeboo Municipality: The Role of QOL Information.
QOL information is usually produced with some utility in mind. This sometimes includes academic applications, but it is more often than not aimed at guiding policy, planning and special intervention where necessary (Clark & Wilson, 1994; Herbert & Thomas, 1997).
80 Through the identification of QOL related problems and deficiencies, the information produced in the Camdeboo survey is mainly expected to perform a role as baseline information and thus be useful in the context of local policy and planning.
For this reason, many of the QOL related aspects are reported by means of objective information – for example, the particular service levels enjoyed by a household and their social-economic status. However, subjective assessments are also employed to reveal the perceptions of people in such and other cases – for example, the satisfaction expressed by the household head towards their dwellings and a variety of services rendered to the household as well as other QOL related issues.
This follows the widely acknowledged notion that policy and planning also requires subjective information and that people‟s perceptions should therefore be as important to the politician, planner and policy maker as objective reports on the state of their living environments (Veenhoven, 2002).
Whereas baseline information establishes a point of departure against which future QOL trends in a community can be compared, the QOL information produced for the Camdeboo Municipality can also be applied to aid immediate planning intervention in order to enhance local (social and economic) sustainability.
The obvious planning vehicle in this case is local Integrated Development Planning (IDP) and of particular relevance is the second IDP phase – that is, Analysis – upon which much of this planning process is fleshed out. The analysis phase of the IDP basically involves a situational investigation that paves the way for the identification of local priorities. These priorities or development challenges are subsequently addressed by a sequence of strategies and projects.
The QOL information produced for the Camdeboo Municipality enables the local IDP process in the provision of contemporary data with which to identify priority areas in each of the relevant sub-places.
For example, Table 21 shows the services/aspects that are regarded as important by most household heads in each of the Camdeboo sub-places. Table 22 on the other hand depicts the top five services/aspects that most household heads are dissatisfied with. It is clear from these examples – especially Table 22 – that several place-specific development priorities could be conceived for possible planning intervention. Table 23 equally highlights potential planning focus areas by identifying the reasons why household heads feel unsafe in their respective neighbourhoods. Although the Camdeboo sub-places are generally fairly well provided for in terms of municipal services, the QOL information nevertheless reveals several planning opportunities in this area. The data reveals, for example, that:
Landline telephones are non-existent in the majority of dwellings in all areas except Graaff-Reinet (Town) and Nieu-Bethesda (Town),
Sanitary services in Pienaarsig (Nieu-Bethesda) is a challenge with non-waterborne sewerage predominating,
Large percentages of dwellings in Aberdeen (Hagenheim/Lotusville; Mandela Square) and Graaff-Reinet (uMasizakhe; Kekana Village; Kroonvale) do not have piped water inside,
Health-related services could finally be implicated by the fact that fairly large percentages of household heads in all Camdeboo sub-areas are unaware of their particular HIV status. The Camdeboo QOL information is aimed at directly promoting the
81 social dimension of sustainability and the economic dimension indirectly. Apart from the QOL information, other methodologies, such as Geographical Information Systems (GIS), could be fruitfully applied to further advance the sustainability of the Camdeboo sub-areas via the IDP process.
With reference to the Sustainable Community Planning Guide (NMBM, 2007) as a valuable tool, GIS plays an essential role in the efficient placement of services and amenities – such as clinics, parks and recreational open space, schools, police and fire stations, community halls, and so on – and thus to ensure that local communities enjoy adequate coverage.
Table 21: Services/aspects that are regarded as important by most household heads
GRAAFF-REINET
TOWN KROONVALE
Accessibility of a police station in or near the Shops for the purchase of daily groceries neighbourhood KEKANA VILLAGE UMASIZAKHE
Ambulance services Ambulance services
NIEU-BETHESDA
TOWN PIENAARSIG
Accessible primary health care services Accessible primary health care services
ABERDEEN
TOWN HAGENHEIM / LOTUSVILLE
Accessible hospital Accessible primary health care services
MANDELA SQUARE
Accessible primary health care services
Table 22: Top five services/aspects that most household heads by Camdeboo sub-place are dissatisfied with
GRAAFF-REINET - KEKANA VILLAGE
Quality of roads in the neighbourhood
Pavements / sidewalks in the neighbourhood
Accessibility of public phones in or near the neighbourhood
Quality of service at the police station in or near the neighbourhood
Accessibility of a police station in or near the neighbourhood
GRAAFF-REINET - KROONVALE
Accessibility of a police station in or near the neighbourhood
Pavements / sidewalks in the neighbourhood
Quality of service at the police station in or near the neighbourhood
82 Quality of police protection in the neighbourhood
Quality of roads in the neighbourhood
GRAAFF-REINET - TOWN
Quality of police protection in the neighbourhood
Pavements / sidewalks in the neighbourhood
Safety of persons and their possessions in the neighbourhood
Illumination of the neighbourhood at night by street lights / high mast lights, etc.
Recreational facilities (parks / playgrounds / recreational open space, etc.)
GRAAFF-REINET - UMASIZAKHE
Pavements / sidewalks in the neighbourhood
Quality of roads in the neighbourhood
Accessibility of a police station in or near the neighbourhood
The draining of storm water after rainfall events in the neighbourhood
Quality of service at the police station in or near the neighbourhood
ABERDEEN - MANDELA SQUARE
Quality of roads in the neighbourhood
The draining of storm water after rainfall events in the neighbourhood
Levels of air pollution (smoke / dust / odours) in the neighbourhood
Ambulance services
Pollution of the neighbourhood by domestic and other forms of solid or liquid waste
ABERDEEN - HAGENHEIM / LOTUSVILLE
Quality of roads in the neighbourhood
Pollution of the neighbourhood by domestic and other forms of solid or liquid waste
Accessibility of public phones in or near the neighbourhood
The draining of storm water after rainfall events in the neighbourhood
Levels of air pollution (smoke / dust / odours) in the neighbourhood
ABERDEEN - TOWN
Illumination of the neighbourhood at night by street lights / high mast lights, etc.
Safety of persons and their possessions in the neighbourhood
The draining of storm water after rainfall events in the neighbourhood
Pavements / sidewalks in the neighbourhood
Quality of roads in the neighbourhood
NIEU-BETHESDA - PIENAARSIG
Accessibility of a hospital in or near the neighbourhood
Quality of roads in the neighbourhood
Pavements / sidewalks in the neighbourhood
83 Ambulance services
Serviceability of public phones in or near the neighbourhood
NIEU-BETHESDA - TOWN
Quality of roads in the neighbourhood
Pavements / sidewalks in the neighbourhood
Accessibility of a hospital in or near the neighbourhood
The draining of storm water after rainfall events in the neighbourhood
Ambulance services
Table 23: Reasons why household heads do not feel safe in their neighbourhoods by Camdeboo sub-place
ABD - ABD - ABD - GRN - GRN - GRN - GRN - NBD - NBD
HL MS T Krv T Kekn uMz Pns - T Alcohol and drug abuse / People are often intoxicated 11.1 20 29.4 53.1 1.2 50 49.5 - 0 / drunk Area is too dark at night / 55.6 0 39.2 1.5 20.5 2.6 3.9 - 0 insufficient street lights Cars / taxis / buses are driven at high speed / 5.6 0 3.9 3.1 2.4 0 1.9 - 0 carelessly Drug dealers operate in the 0 0 0 4.1 0 2.6 2.9 - 0 area
Houses are often broken into 22.2 0 19.6 8.8 37.3 5.3 11.7 - 100
Murder 0 0 0 16 0 21.1 25.2 - 0
Not enough police patrolling 0 0 5.9 3.1 22.9 7.9 0 - 0 the area / not visible
No trust in neighbours / other 0 0 0 1 2.4 2.6 0 - 0 people in my community
People often fight with one 0 0 2 5.2 0 0 1 - 0 another / public violence
Rape 5.6 80 0 2.1 0 5.3 2.9 - 0
Theft from cars 0 0 0 0 8.4 0 0 - 0
Violent gangs 0 0 0 2.1 0 2.6 1 - 0
Theft of cars 0 0 0 0 4.8 0 0 - 0
TOTAL 100 100 100 100 100 100 100 - 100
KEY: GRN - Krv = Graaff-Reinet - ABD - HL = Aberdeen - NBD - Pns = Nieu-Bethesda – Kroonvale Hagenheim/Lotusville Pienaarsig
84 GRN - T = Graaff-Reinet - Town ABD - MS = Aberdeen - Mandela Square NBD - T = Nieu-Bethesda – Town GRN - Kekn = Graaff-Reinet - ABD - T = Aberdeen - Town Kekana Village GRN - Umz = Graaff-Reinet - uMasizakhe
85 CHAPTER 4
Camdeboo Municipality
4.1 Introduction
In the agreed three-stage process to conclude a Local Economic Development (LED) Model for Camdeboo Municipality, stage two involves the Consultant Team from Development Partners providing a written review, with recommendations, on three areas of activity:
A Review of the Camdeboo Municipality and its capacity to be the senior partner in the local economic development programme of the Camdeboo area;
A Review of the Economy of the Camdeboo area; and
A Proposal of a range of pro-poor policies, strategies and plans to bring low-income categories of Camdeboo into the Economy.
4.2 Economic Analysis
86 4.2.1 Background and History – The Karoo in General
Camdeboo Municipality is at the centre of the Eastern Cape Karoo. The Karoo is a semi-arid area of approximately 400,000km² situated in the central and western interior of South Africa. It straddles 4 provinces, 10 District Municipalities and 31 Local Municipalities (7 in the Western Cape; 2 in the Free State; 14 in the Northern Cape and 8 in the Eastern Cape). The interior of South Africa was colonized by Europeans who progressed eastwards and northwards from Cape Town from about 1700 onwards. The colonial authorities allocated land to pastoral farmers on an extensive expansion governed by a perpetual inherited lease system. Because of the arid nature of the Karoo, as early as 1829 it was recognized that 2,500 hectare was insufficient for commercial pastoralism, and farms of up to 12,500 hectare were allocated.
This required enormous tracts of land, which were filled out firstly in a northerly direction up the West Coast, and thereafter in an easterly direction that reached Camdeboo by 1770. By 1780 farmers had taken occupation of virtually the entire Karoo. Prior to 1860 and the discovery of gold and diamonds, the agricultural output of this region dominated South Africa‟s economy – particularly wool, which was critical to the development and expansion of the industrial revolution in Britain.
Sheep numbers in South Africa rose from 2 million in 1845 to 6 million in 1855 and on to 22 million in 1911, where after drought, overgrazing and other factors saw these numbers drop. Wool exports grew from 50 tons in the 1840s to 10,000 tons in the mid-1850s.
This growth led to agriculture in South Africa growing links to the world economy, and then dominated by Britain. Small towns began to spring up, acting as focal points for trade, services, retail and agricultural supplies.
The 20th Century saw dramatic changes in the population and economy of the Karoo.
Land under agricultural production (primarily extensive rangeland farms) has remained constant at about 5. 24 million hectares.
However, the total number of farmers has declined from about 3,500 (1928) to about 1,400 (2002). This has seen the demise of smaller farmers; more efficient farmers who handle price drops, rising input costs, periodic economic shocks, etc., better; and rural depopulation, have consolidated farms.
While the total number of sheep has dropped from around 3 million (1928) to just over 1 million (2002), this is often the result of more effective and more sustainable farming practices. The total number of cattle, which has fluctuated dramatically, was just over 60,000 in 1928 – it reached nearly 100,000 by 1958, dropped to 20,000 in 1993, and has risen to nearly 80,000 in 2003.
Of equal interest are the population trends.
Rural populations increased by 12% from 1904 to 1960, and thereafter declined 37% to 2004. Rural communities are affected differently:
- the white rural community declined continually, from 33,000 persons in 1904 to 6,000 in 2004, - the African community increased gradually from 30,000 in 1904 to 42,000 in 1960; thereafter it declined to 17,000 in 2004,
87 - the coloured rural community is the only one to have increased over this 100 year period: from 16,000 persons in 1904 to 35,000 in 1960, and, after a drop to 25,000 in 1991, back to 35,000 in 2004, making it the biggest single race group in this rural area now.
Urban populations are more robust in growth:
- Graaff-Reinet has grown from about 12,000 people in 1904 to about 35,000 in 2004, - Cradock from 8,000 to 28,000,
- Somerset East from 5,000 to 21,000 and
- Middelburg from about 5,000 to about 17,000.
These four towns, the „big four‟ of the Eastern Cape Karoo, have all shown good growth and are now considerably bigger than the „straddlers‟, led by Jansenville (8,000 citizens in 2004).
The urban population groups have had different rates of growth:
the white urban group was about 16,000 people in 1904, and remains at that level in 2004,
the African urban group has risen from 10,000 to nearly 70,000 over this period,
the Coloured group has increased from 15,000 to about 57,000,
In total, urban populations have increased by 240% from 1904 to 2004.
Possibly the most significant barometer of the changing dynamics of the Eastern Cape Karoo towns is the change in the number of businesses in these towns. Here two different trends are noticeable:
The „big four‟ Karoo towns have had a combined 192% increase in the number of businesses from 1888 to 2006:
Graaff-Reinet from 80 to 300, Cradock from 60 to 230, Somerset East from 80 to 130 and Middelburg from 30 to 125.
The „other eight‟ urban centers (Aberdeen, Hofmeyer, Jansenville, Pearston, Steynsburg, Steytlerville, Venterstad and Willowmore), tend to have fewer businesses in 2006 than they had in 1888. Business numbers grew until the 1930 depression, where after a 55% decline (1921-2006) set in.
In summary, these facts are put by Nel, Hill and Atkinson into the following description:
The most spatially evident change over the last 100 years has been from a rurally dominated region composed of, in relative terms, a large number of relatively small, well populated farms serviced by minor service centers, to an economy marked by the dominance of a limited number of large service centers, the associated marginalization of smaller towns, and a reduced number of farming units which have experienced greater levels of commercialization and mechanization.
88 In terms of agriculture, the absolute number of farms are (sic) in decline, whilst the area under production has remained constant, inferring that average farm sizes are increasing (which has implications in terms of the decreasing number of farmers and labourers). Overall, the stock numbers and rates have declined in absolute terms, but in reality, this reflects a shift in farming practice to more efficient systems.
In contrast to the uniform picture in agriculture, there is an obvious divide between the four larger centers and the smaller ones with a distinct difference in population growth and economic activity being experienced during the recorded time. The larger towns (population 10,000 in 1960) are undergoing significant population and business growth, whilst the smaller centre (-10,000 in 1960) are experiencing business loss, and limited population growth. Concerning a racial breakdown, the white population is in absolute decline, especially in rural districts, while the coloured and black urban population is increasing. The only population group increasing in rural areas is that of the coloured population.
Thus, we are seeing a variety of socio-economic trends at play.
Small Karoo centre economies are hard-hit by citizens „buying out‟ in larger centers – or metropolitan areas. A researcher noted that she could not buy a cheese-grater in Aberdeen – shoppers venture on, to Graaff-Reinet or Port Elizabeth, to do their shopping. This leads to less support for small centre shops, less stock in them, and further waves of „buying out‟. Mobility has increased, with expanding car ownership and taxi facilities, again making „distance shopping‟ more possible.
Similar trends exist in the agricultural economy – the reduction in farms leads to a reduced number of farmers and a reduced rural population – this leads to a reduction in the variety and volume of goods purchased by the farms, and the more specialized agricultural equipment required by bigger farms is often bought from large urban centers. Local economics again suffer from this trend.
The consolidation of farms and the shrinking of the minor centers leads to an out-migration of skilled and wealthy people – at the same time the influx of farm workers now entering the urban centers, and the arrival of people from the Transkei and other poorer areas, puts great pressure on infrastructure and facilities that are funded by government. The abolition of influx control further contributed to the arrival, in large numbers, of African people in Karoo towns.
With racial integration of schools, schools with a minority of white learners have gradually lost all their white learners to larger centers – this process has adversely affected Aberdeen and supported Graaff-Reinet. And, with some schools having an „empty hostel on weekends‟ policy, this results in the buying power of the farming community being brought to Graaff-Reinet every Friday and Monday.
Controls over liquor provision have mostly collapsed, and township liquor outlets are the fastest growing informal businesses. Researchers note that this may be taking place to the detriment of shops and providers of other services. The Community Development worker at Pienaarsig in Nieu-Bethesda notes that on the weekend of social grant payouts Pienaarsig is awash with liquor.
The expansion of social grant payouts to the elderly, the disabled and parents with young children (in the Camdeboo Municipal, area 10,077 pensions/grants are paid out to a total community of 45,000 people) has seen a number of new social trends reinforced
89 Previously, a community was a place to earn a living in. This is no longer true – while previously workless people would migrate to the metropoles, today the social grant network allows rural communities, particularly communities in small rural centers, to remain in these centers, again placing an enormous cost onto the provision of government services.
Previously, the number of businesses and job opportunities in that centre, which in turn were supported by the farming community, sustained small centre urban populations. No longer – large-scale farmers bypass small centers as commercial points, and small-centre communities are kept in place by social grants instead of employment possibilities.
There are, however, a number of important economic and social assets built into these rural and small urban economies.
Infrastructure in the towns is generally good, and represents a great deal of sunken capital in housing, water, sanitation, roads and other infrastructure. Social services are likewise adequately provided, with clinics, schools, banks, post offices and retail shopping.
Agricultural expertise is high, with skilled and experienced commercial farmers, often now involved in social programmes also.
There are a growing number of black and coloured commonage farmers, who represent the beginnings of a new generation of farmers.
There is a growing phenomenon of „reverse migration‟, with previously city people returning to Karoo towns to invest in, mostly, tourist related infrastructure – art galleries, restaurants, B&Bs, curio shops, etc. Some of the Karoo towns, Graaff-Reinet particularly, have developed significant tourist attractions, with excellent hotels and B&Bs, restaurants, nature- based attractions as well as art galleries, museums and theatres.
The Karoo, as with other of South Africa‟s rural areas, is now developing a wave of interest amongst tourists – many of whom have now visited the large centers and the game parks, and who are looking for additional attractions. The Karoo certainly is – isolated and extensive, extreme; dry, beautiful, hot and full of natural phenomena of considerable interest, and small, crime-free towns of extraordinary charm.
Government policy has, regretfully, over recent years contributed to the stagnation rather than the development of the Karoo. In the words of researchers Nel, Hill and Atkinson:
In contrast to the twentieth century government focus on farming concerns, in recent years the post-apartheid government is adopting a strongly urban-orientated policy focus. This reflects the reality that the majority of the population has now urbanized and that the economy is dominated by the wealth production of the larger cities. In policy terms the 2003 National Spatial Development Programme and the 2007 Regional Industrial Development Strategy have divided the country into areas of high and low resource potential and economic activity and have proposed that government resources and support focus on the core nodes (The Presidency, 2003; DTI, 2007). Under such a scenario the extensive rangelands of the Karoo with its low population density has been systematically marginalized. The situation has been exacerbated by the fact that under the 1994 provincial demarcation process, the Karoo which used to fall almost exclusively within the boundaries of a single province has now become sub-divided between four new ones, which tend to focus their resource on their key industrial centers and generally regard the Karoo as a rural ‘backwater’). To date no province has devised a Karoo specific policy. (Atkinson, 2006
90 4.2.2 Sectoral Analysis and Local Economic Assessment and Economic Profile
Camdeboo Municipality has about 45,000 citizens, of which
Graaff-Reinet has a population of 32,461 Aberdeen 6,321 Nieu-Bethesda 1,009 Rural (Farm District) 4,579
This includes 20,427 registered voters.
The Employable Sector (16-65 year age group) has the following profile:
Employed 9,845 (37%) Unemployed: 7,589 (20%) Unemployed 5,435 Cannot find work 1,989 Seasonal Workers 165 Not Economically Active: 9,226 (43%) Scholar or Student 3,322 Home-maker 1,515 Pensioner 2,230 Ill/disabled 1,397 Chooses not to work 762 Total Employable Sector 26,660
*Into this community, the following numbers of grants are paid by Government:
Old Age Pensions 1,701 Disability Grants 2,158 Foster Care 307 Child Support Grant 5,820 Other 91 Total Grants 10,077
(all of the above figures are from the Revised Camdeboo IDP, 28 May 2008)
*The major employers in the area, by employed people, are (2001 Census figures):
Community, Social and Personal Services (mostly Government) 2,068 people (21%) Agriculture 1,969 people (20%) Private Household Employment (servants and B&B workers) 1,772 people (18%) Wholesale and Retail Trade 1,575 people (16%) Construction 690 people (7%) Other 1,771 people (18%) Total Employed 9,845 people (100%)
Of those in employment, 50% are in elementary occupations and a further 14% are service or shop workers,
91 There are just over 10,000 household in Camdeboo, with the following (2001) income profile:
39% of households had an income of R800 per month or less 43% had a household income of R801 - R3,200 per month, and 18% of households had an income of R3,200 per month or more
While the above is not the most severe poverty profile of a South African Municipality, it points to:
- 4 sectors of the economy are the dominant employers, and are almost equal in size; Government; Agriculture; Tourism and Retail Trade,
- Employment levels are low, and often those in employment are paid very low wages,
- Grant dependency is considerable,
- Unemployment has increased recently – the Socio-Economic Profile of the Cacadu District Municipality includes calculations as to the changes in percentages of un- employed persons – in Camdeboo, this has risen from 30% in 1996 to 39% in 2001.
4.2.3 Aberdeen – Sectors
By 2004, government services were the fastest growing sector of the economy, with the following eight year growth in employment:
1996 2004 Post and Telecommunications 25 24 Public Administration and Defense 91 126 Education 156 214 Health and Social Work 12 16
TOTAL 284 380 (+33%)
There were, in 2006, 66 businesses in Aberdeen, with the only growth categories (since 1961) being:
Guest Houses, B&Bs (1 to 5) Art Gallery (0 to 1) Nightclub (0 to 1) Bottle Store (1 to 4) Restaurants (0 to 2) Specialist Arts, Craft shops (0 to 3) Builder/Carpenter (0 to 4) Department Store (PEP Store), and (0 to 1) Transport (0 to 4)
All other categories of business had either decreased, or occasionally remained static in numbers. This suggests that the emerging tourist trade is providing opportunities that entrepreneurs are taking up, and that the decline in other business is being compensated for by new tourist facilities.
Businesses were still predominantly white-owned 54%, with 20% being owned by Coloured owners, and 18% by Africans. The three biggest categories of businesses were:
92 i. Groceries, Vegetables, Butcheries, Bakeries ii. Construction, Artisans iii. Alcohol related businesses (informal shebeens had not been counted – this is thus significantly undercounted)
Entrepreneurs are dominantly residents of long standing (51% have lived in Aberdeen for over 20 years), while 70% of Aberdeen‟s businesses have been owned for 5 years or less. Of the 22 very new businesses, only 8 have been started by new residents – the majority of new businesses are being started by long-standing residents.
Many are confident that the economy was improving 40%, and 75% aspired to expand their businesses. These businesses, on aggregate, were employing 220 people (this figure, the product of a survey, does not tie in with the Census data figure previously quoted in the study). Dr Atkinson‟s study suggested an 85% un- or underemployment rate.
Business leakage was noted – Graaff-Reinet, with a wide range of shops, is only 55km away. Many locals regularly shopped there. This is the squeeze – 69% of Aberdeen‟s businesses relied entirely on local support, as limited as that is – yet these locals are, anyway, shopping elsewhere. This is a very tough problem.
Dr Atkinson conducted a workshop with Aberdeen businesspeople on 20 July 2006. This led to the identification of a number of areas of potential development, as well as problem areas.
The areas of potential include
Wool, mohair and water are all readily available – surely some downstream value added processes could be accommodated?
The area has enormous tourist potential - an unpolluted environment; evocative landscapes; human-scale of the town; low crime rates; a well kept caravan park; a well maintained historic cemetery; the Fonteinbos Nature Reserve, while in bad condition, had enormous potential for restoration; the „heritage town‟ qualities of Aberdeen; open spaces that could become parks – all of this reveals an enormous, untapped, tourist potential.
The Buchu herb grows well here – but studies have not been undertaken as to its commercial potential.
Aberdeen is a geographically central town, with considerable passing traffic – more effort needs to be made to get motorists off the main road and into town.
Most households were electrified.
Large infrastructure programmes (roads and housing) are pending.
Possibly between R1 and R2 million in social grants are flowing into Aberdeen every month – this, with multipliers, could lead to R3 million in local spending.
Problems were also identified
Education and training levels are low, and training opportunities were difficult to access,
93 Informal liquor sales were a scourge – they absorb an enormous amount of local spending and spread social curses,
The Municipal commonage is overgrazed,
Communication with the municipality is limited, and municipal policy on, for example, departures is not readily understood,
Shoppers head-off to Graaff-Reinet, rather than buy in Aberdeen.
Dr Atkinson then moves on to ask what this study of Aberdeen tells us about small Karoo towns, and concludes:
The loss of purchasing power to nearby Graaff-Reinet is a problem,
The business community is still predominantly owned by white citizens,
The informal sector is weakly developed, except for the liquor trade,
70% of Aberdeen‟s businesses are less than 6 years old, and many are owned by people new to Aberdeen – Aberdeen is attracting new investment capital, albeit in small quantities,
Business owners are relatively well educated, but there remains a massive need for training, which is not easily accessed,
Communication between the business community and the Municipality needs attention,
When national roads bypass smaller cities, a lot of potential business is lost,
Business lacks support from organizations,
Agricultural production is not stimulating off-farm non-agricultural enterprises,
Government policy is not favouring small towns, as has been noted,
Government services are an increasingly important part of small town economies,
Emigration presents challenges. For years, unemployed and relatively unskilled people migrate into small towns, and skilled people migrate out. Only now is this trend changing, with an influx of skilled and experienced investors returning to small towns. This is an international phenomenon,
There is no evidence of „clustering‟ of businesses.
4.2.4 Mohair
(Much of the information in Section 4.1 of this report comes from an interview with Mr Deon Saayman, General Manager of Mohair South Africa, and from that organization Review/Oorsig, 2007. For both of these, my gratitude).
94 World Production of Mohair
Table 24: This table outlines world mohair production from 1972 to 2007, and identifies production by the main producing countries (all in million kilograms).
YEAR SOUTH TURKEY USA ARGEN- AUSTRALIA NEW LESOTHO OTHER TOTAL AFRICA TINA ZEALAND 1972 3.7 4.1 4.6 1 - - 0.8 - 14.2 1973 3.4 4.1 4.5 1 - - 0.6 - 13.6 1974 3.7 4.1 3.8 1 - - 0.6 - 13.2 1975 3.8 3.9 3.9 1 - - 0.6 - 13.2 1976 4.1 4 3.6 1 - - 0.6 - 13.3 1977 4.6 4.1 3.6 1 - - 0.4 - 13.7 1978 4.9 4.5 3.7 1 - - 0.5 - 14.6 1979 5.4 4.5 4.2 1 - - 0.5 - 15.6 1980 6.1 4.5 4 1 - - 0.6 - 16.2 1981 6.9 4.5 4.5 1 - - 0.6 - 17.5 1982 7.6 4.5 4.5 1 - - 0.6 - 18.2 1983 7.2 3.8 4.8 1.1 - - 0.7 - 17.6 1984 8.1 3.5 5 1 - - 0.7 - 18.3 1985 9.2 3.5 6 1 - - 0.8 - 20.5 1986 11 3 7.23 1 - - 0.8 - 23 1987 11.5 2.9 7.3 1 1 - 0.8 - 24.6 1988 12.2 2 7.8 1 1 0.4 0.7 - 26 1989 11.7 1.8 7.8 1 1.2 0.6 0.6 - 24.9 1990 10.1 1.2 7.3 1 0.6 0.4 0.6 - 21.8 1991 7.6 1.2 7.4 0.9 0.5 0.3 0.5 - 18.4 1992 6.7 0.8 7.1 0.6 0.5 0.3 0.4 - 16.8 1993 6 0.8 6.5 0.6 0.4 0.3 0.4 - 15 1994 5.7 0.6 5.4 0.4 0.4 0.2 0.4 - 13.3 1995 5.4 0.4 4.8 0.5 0.4 0.2 0.5 - 12.4 1996 5.6 0.4 3.5 0.4 0.4 0.2 0.5 - 11 1997 5.2 0.4 2.5 0.4 0.3 0.2 0.4 - 9.4 1998 5 0.4 1.5 0.4 0.3 0.2 0.4 - 8.2 1999 4.5 0.4 1.2 0.25 0.25 0.2 0.4 - 7.2 2000 4.3 0.4 1 0.25 0.25 0.2 0.5 - 6.9 2001 4.2 0.3 0.8 0.3 0.25 0.2 0.5 0.3 6.8 2002 4.2 0.3 0.75 0.3 0.2 0.1 0.45 0.3 6.6 2003 3.95 0.25 0.9 0.3 0.25 0.15 0.45 0.3 6.55 2004 3.7 0.2 0.85 0.25 0.25 0.15 0.45 0.2 6.05 2005 3.6 0.3 0.8 0.3 0.2 0.15 0.6 0.25 6.2 2006 3.35 0.3 0.8 0.4 0.15 0.1 0.75 0.2 6.05 2007 3 0.35 0.55 0.45 0.2 0.1 0.75 0.2 5.6
Of note here:
World production peaked in 1988 at 26 million kilograms. It has since dropped to a quarter of this amount (in 2007), or 5.6 million kilograms.
South Africa is the world‟s premier mohair producer. South Africa‟s percentage of the total world mohair clip has risen from 26% in 1972, to 54% in 2007.
Despite this huge penetration success, South Africa‟s production was, in 2007, about a quarter of what it was in 1988 (3 million kilograms vs. 12.2 million kilograms).
95 South Africa’s Production
Table 25: The History and the Size of the South African Mohair Industry
YEAR GOATS PRODUCTION (MILLION PRICE (S/KG) VALUE (R’000) KG) 1969 1.5 5.1 139.5 7,148 1970 1.2 4.1 108.7 4,423 1971 1.1 4.3 69.9 2,979 1972 0.9 3.7 197.4 7,277 1973 0.9 3.4 331.5 11,272 1974 0.9 3.7 245.2 9,033 1975 1 3.8 416.4 16,015 1976 1.1 4.1 668.5 27,474 1977 1.1 4.6 639.1 27,730 1978 1.2 4.9 1,048.2 51,044 1979 1.3 5.4 1,095.3 52,867 1980 1.5 6.1 706.7 31,894 1981 1.7 6.9 791.3 45,755 1982 1.8 7.6 838.4 54,504 1983 1.7 7.2 1,314.7 94,831 1984 1.9 8.1 1,554.3 125,729 1985 2.2 9.2 2,045.1 185,528 1986 2.6 11 1,669.1 155,516 1987 2.7 11.5 1,591.9 129,345 1988 2.9 12.2 1,271.3 127,706 1989 3 11.7 1,324.1 108,260 1990 2.6 10.1 1,140.2 73,574 1991 2 7.6 1,198.5 75,244 1992 1.8 6.7 1,145 63,899 1993 1.6 6 958.9 47,909 1994 1.5 5.7 2,214.4 120,860 1995 1.4 5.4 2,488.3 102,136 1996 1.4 5.6 2,281.5 95,485 1997 1.4 5.2 2,506 130,312 1998 1.3 5 2,785 139,250 1999 1.2 4.5 3,946 177,570 2000 1.1 4.3 5,228 224,844 2001 1.1 4.2 4,455 187,110 2002 1.1 4.2 5,634 236,628 2003 0.975 3.95 3,791 149,745 2004 0.9 3.7 4,375 161,875 2005 0.85 3.6 5,847 210,492 2006 0.825 3.35 7,808 261,568 2007 0.925 3 7,838 235,140
Of note here:
In 2007, 925,000 mohair goats were farmed in South Africa, and they produced 3 million kilograms of mohair. This sold at an all-time high average price of R78.38 per kilogram,
This gave the industry an income of R235 million,
The industry was heavily export orientated, with the following being the countries that bought the most mohair from South Africa in 2007:
Italy 945,060 China 729,904
96 France 496,685 United Kingdom 428,583 Taiwan 324,423 Japan 161,335 Korea 119,947 USA 75,610 Germany 53,175 India 48,549 Turkey 40,204 Spain 24,120 Hong Kong 14,341 Australia 11,914 Malaysia 1,810 Denmark 1,254 Uruquay 186 New Zealand 26
Total Exported 3,477,630 kg
Thus the total exported is greater than the total produced – many producing countries send their product to South Africa to be washed, combed, processed and re-exported,
South Africa is truly the world centre of Mohair.
The Eastern Cape as South Africa’s Centre of Production
Table 26: Major Centers of South Africa’s Mohair Production
DISTRICT % CONTRIBUTION DISTRICT % CONTRIBUTION Willowmore/Rietbron 11.25 Beaufort West 3.40 Aberdeen 10.15 Adelaide 3.15 Port Elizabeth 8.89 Albany 2.99 Jansenville 8.75 Murraysburg 2.98 Cradock 8.24 Uitenhage 2.88 Somerset East 7.72 Prins Albert 2.32 Graaff-Reinet 5.71 Fort Beaufort 1.57 Bedford 7.96 George 1.54 Pearston 4.16 Uniondale 1.53 Steytlerville 3.49 Middelburg C 1.30
Thus the Eastern Cape is the South African centre of this industry, and, by implication, the world centre.
Camdeboo
As the above statistics suggest, Camdeboo (Aberdeen and Graaff-Reinet) together account for 18.1% of South Africa‟s total clip – in 2007 this would have been 543,000 kilograms worth R42,560,000.
Comment - The Mohair Industry in Macro Detail
Almost all of the mohair produced in South Africa is produced by private sector farmers on land they own or rent from other private sector owners. The industry they are involved in is extremely complex, and success is clearly not guaranteed. Many variables, including the
97 most important variables, are not in the farmers‟ control – weather, particularly rainfall; mohair prices; volumes required in the international market; foreign exchange rates, etc. etc. Even small movements in any of these variables can see disaster appear. At times, circumstances appear such that even the most committed mohair farmers may switch, partially or completely, to merino farming or game farming, depending on perceived market conditions.
Under such conditions it is difficult to see what the role of the Camdeboo Municipality could be in the industry. Municipalities are slow-moving, bureaucratic institutions, lacking entirely the quick responses called for by rapidly moving market conditions.
Further, the Mohair industry appears to be well-organized and mostly self-sufficient. The private sector produces mohair, and shears, classes, scours, cards, combs, washes, draws, spins, weaves, knits, dyes and finishes this mohair, all to a lesser or greater extent. Industry cooperative organizations like Mohair SA organize the industry and do marketing and coordination. The industry is functioning well, is profitable (as of now) and is well informed of future trends in all relevant variables. Clearly, in all of the above, it would seem unnecessary for a Municipality to attempt to become a role-player.
There are, however, three areas in the industry which appear to be able to accommodate sensitive government intervention. They are outlined below.
4.2.5 Small-Scale Angora Goat Farming by PDI Farmers
AgricDIS from the University of the Free State in July 2006 did a feasibility study on the costs, and possibilities, of setting up a small farm relying on angora goats within the area of the Cacadu District Municipality.
Table 27: Proposed Arrangements
CAPITAL 100 ewes with 4 rams 100 @ R550 plus 4 R55,000 COSTS @R1,500 3ha of land required 312ha @ R1,000 R312,000 per goat 4 water points and a 4 @ R200 and R40,800 barn (150m²) for @R40,000 shelter TOTAL CAPITAL R413,800 COST
The report believes that a lambing percentage of 100 can be accepted, which means that 100 ewes would wean 100 kids. After 6 months the kids would be sheared, generating R200 per kid, while R120 is generated by the shearing of each mature goat. Shearing would again take place after another 6 months – twice per annum. After one year, an average of 50 „kapater‟ (castrated) kids could be sold at R300 each.
98 Table 28: Enterprise Budget
LIVESTOCK Angora Goats No. of Ewes 100 Cacadu District AREA Municipality SSU per Ewe 1.22 122 DATE 2005 Lamb%/Ewe 75 Wean% /Ewe 65 Mass Value per each Unit Price/Unit Number Value/farm SU Product Income 24,012 196.82 Hair: Lamb 1 Kg 87 124 10,788 88.43 Hair: Weaned Lamb 0 Kg 0 0 0 0.00 Hair: Young Ewe 0 Kg 0 0 0 0.00 Hair: Young Kapater 1.5 Kg 48 59 4,248 34.82 Hair: Ewe 2 Kg 22 204 8,976 73.57 Hair: Lamb 0 Kg 0 0 0 0.00 Trade Income 10,439 85.57 Old Ewe 37 Kg 7 21 5,439 44.58 Ewe Lamb 20 Kg 8 4 64 5.25 Kapaters 20 Kg 7 29 4,060 33.28 Ram 50 Kg 6 1 300 2.46 Total Capital Income 34,451 282.39 Minus: Goat purchase 900 7.38 Ram Ram 90 1 900 7.38 Gross Production 33,551 275.01 Direct allocated variable cost R/Total R/goat Feed 2,900 23.77 Goat Health 2,600 21.31 Transport Products 174.46 1.43 Goats 2,500 20.49 Marketing 1,900 15.57 Casual Labour 581.94 4.77 Pack material 163.48 1.34 Miscellaneous Insurance Seed Fertiliser Total Direct allocated variable cost 10,819.88 88.69 Gross Margin 22,731.12 186.32
The report notes that this farm would provide a family with an annual income of R22,731 or less than R2,000 per month – which is low, lower than the R2,000 per month required.
However, should the farmer have 200 ewes to begin with, a gross margin of R45,462 could be made annually – this would give the family an income of R24,000 annually, and leave over R21,462 which could service a Land Bank Loan of R121,000, which could be used to expand the business.
99 4.2.6 Small Scale Beneficiation of Wool and Mohair
A second article by AgriDIS: University of the Free State, as of July 2006 and entitled „Business Plan for Knitting Mohair and Wool in the Cacadu District Municipality‟, suggests a model for small scale knitting of mohair and wool.
This article notes that 92% of South Africa‟s nearly 50,000 tons of wool, and about the same percentage of our 3,000 tons of mohair, is exported non-beneficiated. Plainly this must create value-added opportunities.
Hand knitting and weaving are considered as two beneficiation options – weaving, however, is seen as a complicated process which requires a lot of equipment. Knitting, however, is less costly, less management-intensive and produces product faster. Industry experts and the author of the paper agree – the best opportunities for beneficiation lie with hand knitting, where the only costs are the mohair or wool, and knitting needles. A jersey can be knitted in 3 days; bed socks, small caps and scares can be finished in half a day. According to the Managing Director of Cape Wool and Mohair, Mr Jan van der Westhuysen, in 2006 hand- knitted mohair fashion-wear was in great demand in the United States. Two examples were given:
1. a slow knitter, who could knit a jersey, and a scarf in 5 days, would earn R1,360 per month;
2. a knitter who could knit a jersey, a scarf, a small cap and a pair of bed socks in 5 days could earn R1, 760 per month.
Not princely sums, but it all helps to feed the kids.
Either of these knitters would require between R1,540 and R2,040 in capital to set themselves up (2 knitting needles, and 100 rolls of mohair).
The authors of the report suggest that the municipality should play the role of provider of initial capital, and possibly help to form a marketing co-op for selling the work of the many knitters. Further, they could provide training in knitting for new knitters; or pay to have this provided.
A 3-Phase Mohair Value-Chain Project
In March 2006 a seven-person project team, commissioned by the Commission of the European Communities, prepared a series of reports on Value Chain Possibilities in Agriculture in the Eastern Cape. A paper was prepared on a value-chain possibility for a Mohair project. It suggests a much larger-scale version of the opportunities inspected in 4.2.2 and 4.2.3.
The project on the table being planned by Cape Mohair Spinners is outlined below as 3 phases namely:
Phase I: Mohair Goat Farming – establish 10 new farmers,
Phase II: Processing – utilize existing facilities and technical expertise,
Phase III: Value added manufacturing – establish and operation to make fashion garments.
100 Phase I: Mohair Goat Farming
PROGRAM INTERVENTION REQUIREMENT COST
Establish 10 BEE 600 to 800 ha per R700 000 x 10 5 per X5= Angora goat BEE farmer R7 million farm 250 farmers 100
Supply goats for 200 ewes and 3 R70 000 x10 each farm rams per farm (R300 per ewe & R3 300 per ram) R0.7 million
Provide *Fencing R100 000 x 10 infrastructure *Troughs R1 million
*Gates *Sheds *Other
Training & *Genetic breeding R20 000 per mentoring *Farming practices farmer x R10 *Quality control R0.2 million *Business management *dipping and closing *Shearing and classing
Cater for *Wages R60 000 per farm operational *Dips and doses x 10 expenses *Communication R0.6 million *Transport *Fuel
Total R9.5 million)
Graphic Illustration Phase I: Mohair Goat Farming
Total cost for phase 1 is estimated at R9, 5 million including operational expenses for 10 farmers in year one.
Table 29: Operational Expenses
Land to cater for 200 animals per farm R 700,000 Purchasing of 200 ewes @ R300 per ewe R 60,000 Infrastructure R 100,000 Training and mentoring for BEE farmers R 20,000 Operational expenses R 60,000 Rams @ R3,300 per ram R 10,000 Total R 950,000 Establishing 10 farms R 9,500,000
At 5 jobs per farm (including farmer) 50 direct jobs would be established through Phase I of the project. Based on the multiplier effect of 5 persons being supported by each job
101 created, 250 indirect jobs would also be created. The investment per employment opportunity would amount to R190,000. Seasonal employment opportunities will also be created when shearing takes place twice a year. Normally 4 persons are required, which would create 40 temporary jobs twice a year.
With 200 ewes each producing 4 kg per annum, 800 kg per annum could be produced per farm. At a price of R80/kg plus an income of R64,000 would be generated per farmer in year one, which would be close to breakeven with 4 workers each. Based on a 70% kidding ration the flock will increase to 340 by year 2 and an income of R108, 800 where a profit would become possible.
Phase II: Processing
Cape Mohair Spinners (CMS) will enter into an agreement with the BEE farmer cluster to purchase all clips produced at going market prices. Buying directly from their own source of supply would ensure the farmers a better price than having to sell it via auctions. CMS would process the clips into mohair yard before supplying the downstream value added facilities.
10 farms produce BEE Farmers 200x4kg = 800 kg x 10 / 8,000kg
Cape Mohair Spinners enter into agreement to purchase total output at market related price
CMS process Creates 5 new grease mohair into jobs in processing fancy yarns
Supply new value- added established manufacturers
Five additional jobs would be created through processing the additional input of grease mohair. CMS would continue supplying their existing customers as well.
102 Phase III: Value Added Manufacturing – establish a New Facility
The three above phases provide a vertically integrated operation although shareholding would differ for each phase.
CMS tp provide *designs Cape Mohair *market access Spinners supply *product development fancy skilled yarns *range selection *yarn selection *administration *training & mentoring
Establish value-added CMS to secure a 1000 square factory employing 100 meter factory and enter into people to produce knitted rental agreement mohair products
Equip with machinery and *Commence training and equipment. Recruit workers mentoring (select from recently *Provide product design retrenched knitwear and range selection factories *Secure markets local (35%) and export (65%)
Knit fabric on 31 hand knit *hip to customers machines (Flying Tiger) *MSC to do quality control Cut, make and trim *Invoice customers finish and pack *Collect payments Box and crate *Apply debtor control *Project management
103 Project Design Criteria
The project driver would be Cape Mohair Spinners (CMS) supported by the Eastern Cape Department of Agriculture. The role players are onboard and stakeholder interest has been explained.
Recommended Objectives
Phase 1 Phase II Phase III Farming Processing value-added manufacturing
100% BEE 100% BEE 100% BEE FarmersFarmers 70% CMS Workers Trust IndividualIndividual 30%70% FrenchCMS 100% BEE Shareholding shareholdersshareholders ofof shareholder30% French Workers theirtheir farms farms shareholder Trust OperateOperate as as a a clustercluster
Responsibilities Produce mohair Process into fancy Produce quality clips yearns mohair products Hand knit fabric
Job creation Direct 100 Direct 5 Direct 110 Indirect 500 Indirect 20 Indirect 550
Investment R9.5 million Nil R5.2 million required
Possible DOA: R3.5 million CMS: R200,000 funding EU: R5.8 million N/A ECDC: R0.5 million structure Dol: R0.2 million EU: R2 million *Own operations R2.5 million
*Based on producing 10 000 units and selling them at R350 per piece in year 1 an income of R2.5 million could be generated.
104 The objectives for the project intervention are:
Phase I
Create 50 direct jobs through establishing10 BEE Angora goat farmers as a co- operative,
Create indirect support for 250 people,
Strengthen the development of Angora goat farming that has been neglected and declining for many years,
Capitalize on securing a captured market through agreement with CMS to purchase full output produced by BEE farmers,
Grow BEE farmers into medium sized farms e.g. up to 5,000 goats.
Phase II
Utilize modern processing and spinning facilities of CMS with established management expertise,
Capitalize on obtaining international input and market feedback through shareholder agreement between CMS and French company, FFM (Major European player in mohair processing),
Utilize available excess mohair processing capacity at CMS.
Phase III
Create downstream value added facility to produce mohair fashion garments,
Design, training, administration and project management will be provided by CMS,
Create 100 direct new jobs and give shares to workers,
Create a further 500 indirect jobs,
Develop value added sub-sector of the value chain for manufacturing garments.
4.2.7 Conclusions
The above three examples suggest some areas where a municipality could be an active player, with others, in promoting the mohair industry, and in promoting access for PDI persons to enter this industry.
The reports quoted are, of course, now time-dated and costs, etc. contained therein will no longer be accurate. But each example suggests an area where a supportive Municipality could be a coordinator of economic activity – with, inter alia, Mohair South Africa; the National and Provincial Departments of Agriculture; the Cacadu District Municipality, etc. Plainly, a mohair-industry specific LED officer, with experience and energy, housed in a Development Agency, could play a meaningful role in developing opportunities in this industry.
105 4.2.8 Wool and Lamb/Mutton
[Much of the information was provided by Mr Andre Strydom, General Manager of Cape Wools SA, and from the documentation of Cape Wools and the National Wool Growers Association of SA. To all of these sources, my thanks]
Industry Background
Internationally, wool is a much larger business than mohair. The global wool clip in 2004/2005 was as follows:
1. Australia - 25% of global wool clip (475 million kg greasy) 2. China - 18% 3. New Zealand - 11% 4. Argentina - 3% 5. Turkey - 2% 6. Iran - 2% 7. United Kingdom - 2% 8. India - 2% 9. Sudan - 2% 10. South Africa - 1% 11. United States - 0,77%
Table 30: South African Production and Sales Value
PRODUCTION (MIL KG) SALES VALUE (R MIL) 1995/1996 61.5 R538.1 1996/1997 55.7 R644.8 1997/1998 50.6 R614.0 1998/1999 54.3 R497.6 1999/2000 49.8 R512.8 2000/2001 48.6 R674.8 2001/2002 47.5 R1,015.4 2002/2003 44.2 R1,303.1 2003/2004 46.4 R1,003.5 2004/2005 46.5 R837.9 2005/2006 45.9 R743.3 2006/2007 46.8 R1,217.6
Both South African and Australian wool is mostly produced from Merino Sheep.
The above table identifies a challenge the industry has faced – due to increased use of synthetic fibers, there has been a long-term decreasing demand for wool. The collapse of the price of wool began in 1966 with a 40% drop, and, thereafter, with occasional interruptions, the price has tended down.
The result has been a sharply reduced production and movement of resources into production of other commodities - particularly the production of meat.
106 Table 31: Sources of South Africa’s Production (2006/07 figures in kg).
Eastern Cape 14,145,639 Free State 10,271,581 Western Cape 8,292,745 Northern Cape 5,531,019 Mpumalanga 2,568,693 Kwa-Zulu Natal 871,815 Other Provinces 585,796 Namibia 9,255 Lesotho 3,348,944 Unallocated 7,765 Direct Purchases 1,189,660 TOTAL PRODUCTION (kg) 46,822,912
The 2006/07 season was the best in four years, and the second best ever in terms of Sales Value – the dramatic decline of the rand visa vie foreign currencies in 2001/02/03 saw turnovers shoot up in the industry, setting up six successive good years.
Most of South Africa‟s wool is exported, with China now being the biggest buying country, taking 30% of South Africa‟s clip (and 70% of Australia‟s!). Italy and the Czech Republic are the next two biggest customers of South African wool. 25% of South Africa‟s wool is exported to the European Union.
As can be seen, the four „Karoo Provinces‟ dominate South Africa‟s production, with the Eastern Cape being the biggest supplier, providing 30% of South Africa‟s clip in 2006/07. Of the Eastern Cape suppliers, approximately 5% comes from Aberdeen district, and with 5% from Graaff-Reinet, these two districts supplied 1,193,000 kg of wool in 2004/05, of the Eastern Cape‟s 11,972,394 kg.
Wool is, of course, only a part of the income that accrues to farmers who farm sheep – industry sources suggest that wool provides sheep farmers with 30-35% of their income, and meat (lamb and mutton) with 60-65% of their earnings.
The above suggests that the sheep farmers in the Camdeboo Municipal area should have, approximately, the following aggregate income:
Wool earnings R33 mil Meat earnings R67 mil Total income R100 mil
Comment - The Wool/Meat Industry in Macrodetail, and Development Opportunities
Essentially the same comment as made re the mohair industry in section 4.2.1 of this report applies here also: the industry is extremely complex and relies on a variety of variables most of which are beyond the control of the farmer (weather and particularly rainfall; wool prices on the international market; exchange rates, etc. etc.) What role, if any, a municipality can play in not obvious.
Further, the Wool Industry has, in the National Wool Growers Association of South Africa, an organization that is extensively involved in aiding traditional farmers to improve productivity and thereby their income. These programmes include (information from National Wool Growers Association of South Africa, Annual Report July 2006 to June 2007):
107 Genetic Improvement Scheme, which has seen,
o The replacement of 3200 inferior rams with 3200 quality rams in communal areas. o The establishment of 8 group breeding schemes in communal areas. o The establishment of sound veld management policies in 4 communities.
ComMark Trust projects have seen a significant improvement of wool production in communal areas of the Eastern Cape,
Parasol Project has used University of Pretoria Veterinary faculty persons to train production advisors and farmers in communal areas on scientific methods of controlling internal parasites,
Master Mentorship Programme involved the training and mentorship of communal wool producers in 300 sheds,
Infrastructure Provision including 5 shearing sheds, 16 dipping tanks and 3 handling and judging pens, were provided in developing farming communities.
In a paper released on 7 March 2006, Mr Grey van der Hoff, and a member of a project team doing work a Value Chain research in the Wool Industry, differentiated between three types of wool growers:
Most of the wool production in South Africa derives from around 9,700 commercial farmers owning about 20 million sheep organized into the National Wool Growers Association (NWGA), receiving the services of the two major brokerage firms, and selling largely via the Wool Exchange. The rest of the production comes mainly from the nearly 3 million sheep owned by around 200,000 black farmers in the Eastern Cape (former Transkei and Ciskei). This represents 13 per cent of the national sheep herd, but currently only produces 3 per cent of total wool production and 1.4 percent of value realized at auction.
However, there are important differences within black producers. One group - termed ‘emergent farmers’ – is participating in the livestock and pasture improvement schemes instigated by the government and industry in recent years. This group is also beginning to develop confidence in building structures of participation in auction markets, although many remain involved in spot market sales also.
There is also a substantial group – possibly 60,000 owners – who remain ‘traditional’ wool farmers: largely unorganized in terms of improvement and market participation, although deriving a significant part of their income from sheep (wool and mutton).
Finally, there are those – possibly 120,000 owners – who have very small herds, have little or no access to grazing or finance to invest in wool production, but nonetheless retain small herds at low cost, with very little income. These are termed ‘marginal’ producers.
108 Table 32: Defining characteristics of these Ggoups of farmers, according to Van der Hoff, are the following:
WHITE COMMERCIAL BLACK EMERGING BLACK TRADITIONAL FARMERS FARMERS FARMERS
Tenure Private freehold Communal, quitrent, Communal arrangements PTO, state schemes Average size of 2,000 50 12 herd % Ewes in herd 60% 30% Less than 30% Annual weaning % 80% Less than 60% Less than 40% Mortality rate Low Medium-High High Sheep left out overnight unless Sheep herded by boys, at night Sheep herded by boys, Herding/penning too cold. Sheep separate from sheep kraaled with cattle and at night sheep kraaled other stock goats with cattle and goats
Target wool/sheep 4kg 1.8kg - 2.4kg 1.2kg - 18kg Trading stores, Sell wool to Wool brokers Speculators speculators and don't trade in open market Price /kg of wool R18.43 R1.20 - R2.4 Bartered Rangeland management Rotating pastures Communal grazing Communal grazing Winter feed Yes If available No Scab, control worm dosing Subject to national scab mite Some exposure to control programme national scab mite Animal Health control programme
Nature of extension User-pays Receive some extension None for free (NGOs, DoA) Membership of National Wool Growers associations Association Off-shore textiles (90%), Final destination Off-shore textiles (90%), Off-shore textiles (90%), local of wool local textiles, local carpets local textiles, local textiles, local carpets carpets May sell for slaughter Alternative use of Sell mutton and hides May sell for slaughter locally sheep locally Average annual R89 R22 R4 wool margin per sheep Access to abattoirs Yes No No Average annual R240 R70 R12 margin per sheep (lambs, wool, mutton)
The table above reveals the revenue consequences of being unable to sort and grade wool at the production site, producing lower quality wool and having to rely on traveling wool speculators for access to wool brokerages.
109 Poor producers without the ability to grade their wool and without market access typically receive R1,20/kg – R2,40/kg for their wool. Once this wool has been sorted and graded wool brokerages pay R12/kg – R43/kg for it.
These constraints are common among traditional woolgrowers in the Eastern Cape. A recent initiative by the wool brokerages, in collaboration with the Agricultural Research Council, The Dohne Institute, the National Wool Growers Association and RuLiv NGO has transformed the supply chain and increased the revenue received by wool producers. The initiative involves:
The construction of communal sheering and grading sheds, The provision of sorting tables and baling technology, Training in sheering and grading of wool, The contracting of transport to relay wool from the sheering sheds to wool auctions, Extension efforts to transfer commercial husbandry practices to emerging woolgrowers.
To date some 240 shearing sheds have been constructed and estimated 12,000 sheep producers have benefited from the programme. The initiative has realized 6-10 fold increases in revenue received by wool producers without an increase in the number of sheep. The effort has only reached an estimated 20% of the sheep in the Eastern Cape, and the scope for expanding the rollout of new production and sorting technologies remains enormous.
All the above suggests a limited opportunity for a municipality to enter into development projects in this industry – nevertheless three are seen as possible.
Small Scale Merino Farming by PDI Farmers
Similar to the feasibility study for the mohair industry, AgriDIS from the University of the Free State in July 2006 did a feasibility study on the costs, and possibilities, of setting up a small farm relying on merino sheep farming in the Cacadu District.
110 Table 33: Summary of projected developments
CAPE AND MOHAIR WOOL
LIVESTOCK Merino No of Ewes 100 Cacadu District AREA Municipality SSU per Ewe 1,37 1,37 DATE 2005 Lamb%/Ewe 95 Wean%/Ewe 85 Value per Mass each Unit Price/Unit Number Value/farm SU Production Income Gross Sales 12,208.8 89,12 Wool: mature sheep 4,7 Kg 18 128 10,828.8 79,04 Wool: Lambs 1 Kg 23 60 1,380 10,07 Trade Income 28,561.5 208,48 Old Ewe 45 Kg 9 21 8,505 62,08 Ewe Lamb 24 Kg 12 18 5,184 37,84 Hamels 27 Kg 12,5 43 14,512.5 105,93 Ram 60 Kg 6 1 360 2,63 Total Capital Income 40,770.3 297,59 Minus: Sheep purchase 1,800 13,14 Ram Ram 1800 1 1,800 13,41 Gross Production 38,970.3 284,45 Direct allocated variable cost R/Total R/sheep Feed Bought 1,730 12,63 Self produces 1,918 14,00 Sheep health 1,960 14,31 Transport Products 1,450 10,58 Sheep 3,000 21,90 Marketing 2,815 20,55 Shearing Costs 490 3,58 Wool bags 352 2,57 Casual labour 470 3,43 Total Direct allocated variable cost 14,185 103,54 Gross Margin 24,785.3 180,91
Again, as in the mohair example, it is noted that a farm with 100 merino ewes could provide a family with an annual income of R24,785, or about R2,000 per month.
However, should the farmer have 200 ewes to begin with, this could be doubled, and the additional income could service a Land Bank loan of about R125,000, which could be used to expand the business.
Value Added: Small Scale Knitting Opportunities
In section 4.2.3 of this report we considered a second report by AgriDis. University of the Free State, being a “Business Plan for Knitting Mohair and Wool in the Cacadu District
111 Municipality”. This report, as its title says, considers both mohair and wool together – we will not repeat what has been written in 4.2.3, but it applies to wool as it applied to mohair.
Value Chain Improvements in PDI Farming of Wool
The paper by Dr Grey van der Hoff, sets out a series of challenges facing PDI Wool farmers, and outlines actions required to remedy or capitalize on those opportunities. They are as follows:
OPPORTUNITIES/THREATS STRENGTHS WEAKNESSES ACTIONS REQUIRED TO REMEDY OR CAPITALISE other role players e.g. Increase revenue received by wool producers. ARC, NWGA, etc. for emerging farmers Construction of communal sheering & grading sheds.
Provide sorting tables and bailing Technology.
Training in sheering and grading of wool. Contracting transport to relay wool to wool auctions.
Extension efforts aimed at trans- forming commercial husbandry practices to emerging wool Growers. Decreasing prices and price Role player support Wool oversupply. Increase local value added. inconsistency. schemes and members processing to enable greater of trade. price control. Availability of LCF assistance Results achieved by Finding new drivers Co-ordinate rural wool growers for: - Construction of present initiative. and people with into functional co-operatives. communal shearing dedication to continue. sheds. - Providing training in Provide infrastructure & training grading of wool to to the communal co-ops. emerging wool growers. the program and - Obtaining shearing further rollout. equipment, sorting. Market demand for wool tables & bailing declined in recent technology. years.
Define and ensure future role of Support from lead institutions. Commitment and past Slow pace of delivery. Support institutions and Involvement and Continued support to drive the Critical role Initiative. Performed.
112 This leads Van der Hoff to make the following proposals:
Programme Intervention Proposals
The international demand curve for wool remains flat and together with a strong currency has contributed to a poor raw wool market. Despite these adverse conditions there is an opportunity to rollout the technology improvement initiative that was started by brokers and the ARC for small wool growers in the Eastern Cape. The scope and magnitude of any expansion of the programme would be subject to a feasibility study to ensure continued uptake of the wool produced by the small growers.
Project Design Criteria
The project design criteria would entail ensuring a market orientation amongst growers, establishing new project ownership criteria, aligning the stakeholders, their respective roles, involvement and responsibilities. It is a unique opportunity in a depressed industry sector that could increase income generation and employment opportunities. The jobs to be created or wool growers that would be supported by the initiative would depend on the magnitude and scope of the project initiative. Based on the past success of the programme it is not unrealistic to project further job creation for 500 people.
Recommended Objectives
Preliminary objectives for project would be to:
Create 500 new jobs,
Apply and obtain financial assistance from the LCF fund or similar funding programmes.
Recommendations Regarding Implementation
It is recommended that:
The role players and stakeholder future roles, responsibilities and involvement be confirmed to ensure a continue driver for the initiative,
If roles cannot be confirmed alternative drivers to be identified and activated,
Conduct feasibility study to determine off-take of wool produced to ensure future market.
Conclusions
As we have concluded in the section on Mohair, there are opportunities and limits on the work a Municipality can do in a field as technical and complex as wool and mutton farming.
Three projects have been outlined – while the passing of time has rendered the proposed budgets no longer accurate, the project proposals again indicate the sort of work a good agricultural officer, connected to a development agency, could undertake in bringing together many players to effectively motivate projects to bring PDI farmers effectively into the wool/mutton industry.
4.3. Other Agricultural Opportunities for Camdeboo
Having covered the two main agricultural activities of the Camdeboo in considerable detail, we will now inspect a variety of other agricultural activities, albeit in lesser detail.
113 In 2006 the Cacadu District Municipality tasked AgriDis of the University of the Free State to assess the agricultural potential of the area of the Cacadu District Municipality. The following table is their conclusion:
Table 34: Production Capabilities of Municipalities
Municipality Products CAM BCR IKW MAK NDL SRV BAV KOU KOK ABE Apples X X X X X Chicory X X X X x X Cotton X X X X Kikuyu X X X X x Lucerne X X X X x Pears X X X X x Pecan nuts X X X X x Pineapples X X X X Stone Fruit X X X X X X X Citrus X X X X X X X X X X Angora X X X X X X X Beef Cattle X X X X X X X X Dairy X X X X X Mutton and Wool X X X X X X X X X Ostriches X X X X X X X X X Boer Goats X X X x Key
Camdeboo (CAM) Blue Crane Route (BCR) Ikwezi (IKW) Makana (MAK) Ndlambe (NDL) Sunday‟s River Valley (SRV) Baviaans (BAV) Kouga (KOU) Kou-Kamma (KOK) Aberdeen plains (ABE)
We will consider a number of these opportunities.
4.3.1 Cattle
Beef and dairy cattle are huge industries in South Africa, as the following table indicates:
Table 35: The Number of Cattle in South Africa by Province 2001-2005
2001 2002 2003 2004 2005 PROVINCE ,OOO head (August) Western Cape 490 498 501 496 492 Northern Cape 464 473 771 468 476 Free State 2,241 2,254 2,256 2,253 2,281 Eastern Cape 3,039 3,125 3,083 3,042 3,072 Kwa-Zulu Natal 2,736 2,771 2,744 2,749 2,813 Mpumalanga 1,328 1,327 1,332 1,347 1,359 Limpopo 1,203 1,165 1,144 1,138 1,192 Gauteng 282 267 264 273 278 North West 1,724 1,754 1,743 1,747 1,800 TOTAL 13,507 13,634 13,538 13,513 13,763
114 Dairy is not a significant Camdeboo industry – while the Eastern Cape produces over 20% of South Africa‟s milk, the industry is effectively located in the Tsitsikamma part of the province where high rainfall leads to good pastures.
While the above table shows that the Eastern Cape has the largest herd of cattle in South Africa, it is estimated that 150,000 small-scale cattle farmers in the Eastern Cape collectively own 1,7 mil head of cattle, or 65% of the Province‟s total herd. These farmers contribute less than a third of the provincial slaughter value.
AgriDIS figures suggest that Graaff-Reinet farmers own about 15,000 head of cattle, and Aberdeen farmers about 3,000.
AgriDIS has again looked at the possibility of creating small-scale PDI beef farmers, and their study suggests the following:
if land can be bought on a government grant and as such it is not a project cost,
a capital cost of R468,000 is required to purchase 40 cows and 1 bull, create pastures, fencing and water points, and
annual operating costs of R57,588 are set-off against project income of R185,180, giving the project an income of R4,500,000 per annum after servicing a Land Bank loan of R46,800.
Again, this project appears viable although all costs are obviously dated. Again, the services of a dedicated agricultural extension officer operating from a Development Agency could see such a project, or projects, coordinated and begun.
4.3.2 Ostriches
Background
South African farmers have farmed ostriches since about 1860. The industry certainly has had its ups and downs, but by 2002 the South African ostrich industry „processed‟ 300,000 birds a year. This represented a meat production of +/- 5 million kg, and 300,000 ostrich skins – an industry of approximately R750 million per year.
Then came Avian Flu, and the culling of about 15,000 birds. The industry suffered a big drop off, and is only now rebuilding itself. 70% of ostriches are in the Western Cape, and 20% in the Eastern Cape (or about 50,000 birds), where there are also 2 ostrich abattoirs and 4 tanneries.
The Value Chain in this industry starts with rearing birds eggs, which are hatched in incubators to produce 12,000 chicks in a 42 day cycle. Thereafter 1 hectare of land is required to rear 100 birds – after 6 months feathers are plucked, and the birds are slaughtered at 12 to 14 months, when they weigh about 90 kg. This yields 17 kg of meat, a hide (approximately 1,48m²), and more feathers. Hides are high grade leather, and can be used for garments, shoes, belts, wallets etc. Feathers are used for dusters and exotic clothing. 90% of ostrich meat goes to Europe, and hides to Italy and the Far East. China, Europe and Brazil buy feathers. Mr Grey van der Hoff wrote a report on the Value Chain for the Ostrich Industry in the Eastern Cape (7 March 2006) in which he noted that ostriches compare favourably with beef as an industry.
115 A cow can produce a calf which will reach the market 654 days after conception and yield 250 kg of meat,
An ostrich produces possibly 40 chicks annually – they reach the market 407 days after conception and yield 1,800 kg of meat; 50m² of leather and 36 kg of feathers. A female ostrich, over her life of 40 plus years, could yield 72 tons of meat; 2,000m² of leather and 1,450 kg of feathers.
This paper suggests that the world market could absorb the product from 240,000 Eastern Cape ostriches (there were 50,000 at time of writing). This would require the establishment of new feeding farms; 3 feed growing farms and a feed mixing factory. Abattoirs and tanneries would be further utilized, and value-added opportunities for providing shoes, handbags, wallets etc. would be created. The paper proposes the establishment of 20 BEE ostrich rearing farmers in the Eastern Cape.
The project is presented as follows:
Establish 20 BEE Infrastructure for 1st 6 farms is in farmers in the process in Pearson to be set up Eastern Cape e.g. fencing
Rear birds from 1 day to 6 months old
Allocate 1ha to each farmer on Timing: Ground is available. The lease or owned land and provide fencing takes a few days. Birds 100 birds to each farmer are available to be purchased. Estimated time to set up is 2 months
Provide ongoing mentoring support Contract a BEE training Develop a course to as well as classroom and on- consultant specializing in be registered with the-job training agriculture department of labour
Phase I will require an investment of R2 million for infrastructure only.
This will create 55 BEE employment opportunities including the owner/manager. It would indirectly support a further 200 people. The projection is to produce 2,000 birds in year one. However, the opportunity is there to process far more birds by obtaining EU funding to purchase 6,000 slaughter birds over a 3-month period.
This would require an investment of R9 million and create another 200 jobs at an investment of R45,000 per job. Taking the multiplier effect into consideration more than a 1,000 people could be supported through implementation of the project. Additional feeding farms, feed growing farms and a feed mixing factory has the potential to create a further 230 employment opportunities.
116 Ostrimark SA is one of South Africa‟s leading ostrich meat and leather producers. Their tanning facility was commissioned in 2002 and enhances the company‟s long time commitment to live and work in close harmony with the environment. The deal has the full support of the Americas Africa Renaissance group from Atlanta, Georgia, USA.
They form an integral part of this project, as they will own 33.35 of this BEE model, Ostrimark 33.35% and the BEE participants the other 33.34%. The AAR is committed to provide access to the US market. Furthermore, the Makana Municipality will be an active role-player in the future success of the BEE project e.g. Mayor Vumile Lwana and the Business Development Executive, Mr Ramie Xonxa.
Phase ll: Further Processing and Market Access
Reared birds go to Ostrimark Ostrimark undertaking to purchase who will take all birds offered all birds produced by BEE farmers by farmers
Birds slaughtered, de-skinned Skins go to Abattoir Obtain 2 x tanning drums and de-feathered * R80 000 each
Meat is de-boned Skins are tanned and Agreement with US shipped to USA Company to purchase every skin produced
Meat cut into fillets or steaks
Packed and frozen or Concept agreement in place shipped fresh to export with Holland on an exclusive markets basis
Phase III: Value Added Products
The plan is to establish an incubator consisting of a central facility and 20 small factory premises of 40 m² around it to produce various value added products such as:
Rearing Skins Feathers Hand painted eggs Wallets, Belts, Book Dusters, computer duster, plumes, covers, Shoes show horse head gear Etc.
The planning around this project is advanced, and many agreements are in place. Further, there is demand for ostrich products in the market that would qualify this project a number of times. The following are its costs:
117
Phase I Funding Phase II Funding Phase III Funding Infrastructure R2 million 2 x tanning drums R160 000 (EU Incubator facility R2.3 million EU; Funded by DOA New feeder Local Competitiveness Fund) LCF. Working capital: ECDC/EU farms Purchase 6,000 birds R9.0 million over 3 months (EU – Local Competitiveness Fund) BEE jobs created: 200 BEE jobs created: 5 BEE jobs created: 100 Multiplier – Indirect jobs for Multiplier - further 500 indirect further 1,000 people jobs
4.3.3 Game Farming
Background
Prof P. du P. van Niekerk, of the Nelson Mandela Metropolitan University, has conducted a number of studies of game farming in the Eastern Cape. Amongst the conclusions of his latest study are:
2.8 million hectares of the Eastern Cape is game fenced by 2005 – this is nearly 20% of the entire Eastern Cape, up from 14.5% in 2002,
Possibly 32,000 hunters shot 240,000 animals, which value exceeded R280 million (up from R168 million in 2002), in 2005,
Of the 668 respondents to his survey, most were in a multiples of farming activities, the greatest number of whom were involved with:
Beef 53% Wool 51% Mutton 44% Plant Products 10% Game 9.1% Dairy 9.1%
Table 36: Animal ‘Utilization’ (Hunted) has changed over the years 2002 to 2005 as follows:
2002 2005 Springbok 111,658 841,714 Kudu 23,637 26,601 M Reedbuck 23,124 21,005 Duiker 4,070 6,888 Steenbok 1,163 1,837 Blesbok 15,682 24,554 Impala 6,960 20,900 Bushbuck 3,868 6,265 Fallow Deer 6,026 9,702 Warthog 4,194 14,071 Black Wildebeest 1,991 6,514 Grey Rhebuck 634 577 Eland 423 1,738 Red Hartebeest 802 2,066 Blue Wildebeest 502 2,276 Nyala 291 761 Lechwe 758 2,270 Gemsbuck 705 1,220
118 Waterbuck 0 719
This industry has created over 4,000 jobs
In his 2002 research, Prof. Van Niekerk found:
In 2002 Prof van Niekerk administered a questionnaire to game ranchers. A total of 458 ranchers responded. It was found that the average size of ranches is 3,564 hectares, but only 14% of ranches were game fenced. The main game producing areas in the Eastern Cape coincided with the areas where extensive sheep, goat and cattle farming were practiced.
Game numbers were determined for the various game species and these numbers were extrapolated for the Eastern Cape as a whole. Springbuck, mountain reedbuck and kudu were the most abundant game species. Hunting was the most important form of utilization of game in the Eastern Cape. The total value of the animals utilized per year was R168,252,655.
When utilization of game was compared to the production norms of the various game species, it became clear that current levels of utilization were within the limits required for sustainability and that game numbers in the Eastern Cape would increase if the current levels of utilization were maintained.
Traditional farming methods practiced in the Eastern Cape was still the most important form of income generation for the majority of ranches in the Eastern Cape. At this point in time the game industry could not be regarded as one of the major contributors to the income of most ranchers.
By 2005, the farmers surveyed the following income from hunting:
o 57% less than R20,000 o 24.5% between R20,000 and R50,000 o 5.5% between R50,000 and R75,000 o 13% more than R75,000 o 75.2% derive less than 10% o 13.4% derive between 11% and 20% o 4,4% derive between 21% and 40% o 2,7% derive between 41% and 60% o 4,3% derive more than 60%
Table 37: Income was generated from hunting the following numbers of animals
NUMBER PRICE INCOME INCOME UTILIZED (AVE) 2002 2005 Springbok 84,171 419.85 37,852,062 35,339,194 Kudu 26,601 2,526.97 50,843,187 67,219,928 M Reedbuck 21,005 600-96 10,098,090 12,623,164 Duiker 6,888 408-07 1,575,090 2,810,786 Steenbok 1,837 609-48 562,892 1,119,614 Blesbok 24,554 756-97 10,397,166 18,586,641 Impala 20,504 882-05 5,435,760 18,805,553 Fallow Deer 9,702 1,030-91 4,790,670 10,003,793 Warthog 14,145 829-85 3,673,944 11,676,819 Black Wildebeest 6,514 2,618-30 6,034,721 17,055,606 Eland 1,728 7,346-37 3,352,275 12,767,991 Red Hartebeest 2,066 2,860-53 1,724,300 5,909,855
119 Bushbuck 6,265 1, 361-36 5,252,744 8 52,892 Grey Rhebuck 577 2, 929-89 1,585,000 1,609,546 Blue Wildebeest 2,276 3,534-85 1,895,050 6,724,009 Nyala 761 8,043-27 3,395,097 6,120,928 Lechwe 2,270 10,700-00 7,038,788 24,289,000 Gemsbuck 1,220 3,534-85 2,583,120 4,312,517 Waterbuck 719 8,183-94 0 5,884
HUNTING CAPTURE CROPPING TOTAL 150,647,637 60 012 049 63 481 381 274 141 067 55% 21.9% 23,1% 100
In his 2002 research, Prof van Niekerk noted the following for the Camdeboo:
9 respondents to the survey, or 1.9% of all respondents, were from Aberdeen.
35 respondents, or 7.4% of all respondents, were from Graaff-Reinet.
This suggests that this industry (the hunting industry) is possibly worth R25 million to R30 million per annum to Camdeboo.
Mr Peter Burdett, the Park Manager of the Camdeboo National Park (not a hunting park but a park in the SANPark Stable) notes that, in 2005, there was only one privately owned game park in the Camdeboo (Samara 28,000 ha). There are now four others – Asante Sana (15,000 ha), Mount Camdeboo (28,000 ha of very upmarket game viewing), Glen Harry (10,000 ha) and the Rupert Family Trust farm (12,000 ha). More are envisaged. All farms, according to an industry source, do some hunting.
4.3.4 Agave
Agave is a succulent plant of a large botanical genus of the same name, belonging to the family Agavaceae. Chiefly Mexican, the plants now occur in the United States, parts of Central America and were introduced into Europe in the middle of the 16th Century. One of the most popular species is the Agave Americana (AA) which is now cultivated extensively in the Karoo and in the Camdeboo area particularly. Even under Karoo conditions, the AA requires no irrigation.
The plants have a large rosette of thick fleshy leaves, called a piná, each ending in a sharp point. Each rosette is monocarpic and grows slowly to flower only once. During flowering a tall stem or „pole‟ grows from the centre of the leaf rosette, and bears a number of flowers. Then the original plant dies. Normally this process takes 7 years to happen – in the Karoo this is longer (9-15 years). Farmers know to harvest the plant before it „starts a pole‟, as the natural sugars in the plant are converted into the pole.
Karoo cultivated AA has resulted in the plant being used, mostly in its beginning phase, in four industries.
Alcohol Production
A large factory was established just outside Graaff-Reinet in the 1990s to manufacture Agave (Gold and Silver), an alcoholic drink, similar to Mexican Tequila. Mr Gawie Venter was the motivator of this project, and Mr Roy McLachlan was an original investor.
This factory has had its ups and downs, including two periods of liquidation (it is at present recovering from the second). Problems related to the limited capital of the business;
120 difficulties experienced by the holding company and large marketing and distribution costs. Management feels that, with time and more capital, all of these could be overcome. Production rose to 1,200 litres per day, and could have reached 4,000. 7 agave farmers were on contract, supplying 18 tons of agave per day. The factory paid R150 per ton, and was willing to harvest and collect. At 1,000 plants per hectare, and 220 kg per plant, this could supply an agave farmer R30,000 per year per hectare, and could be the basis of an excellent PDI farming project.
Other Agave Uses
In 2005 a multi-disciplinary pre-feasibility study in local AA was launched by two CSIR units, namely Material Science and Manufacturing (MSM) (which investigated fibre production and processing, and paper-making uses for AA), and Biosciences, which investigated inulin production. This pre-feasibility study is being followed by a three-year research programme, in two phases, which begun on 1 April 2008. While still in its early stages, the project is suggesting very valuable uses for AA.
Inulin Production
Inulins are a group of naturally occurring polysaccharides (several simple sugars linked together) produced by many plants, including AA. They belong to a class of fibre known as fructans.
Inulin is used increasingly in foods because it has unusual nutritional characteristics. It ranges from completely bland to subtly sweet and can be used to replace sugar, fat, and flour. This is particularly advantageous because inulin contains a third to a quarter of the food energy of sugar or other carbohydrates and a sixth to a ninth of the food energy of fat. It also increases calcium absorption and possibly magnesium absorption, while promoting the growth of intestinal bacteria.
Nutritionally, it is considered a form of soluble fibre and is sometimes seen as a prebiotic. The consumption of large quantities (particularly by sensitive or unaccustomed individuals) can lead to gas and bloating. Inulin has a minimal impact on blood sugar, and – unlike fructose – is not insulemic and does not raise triglycerides, making it generally considered suitable for diabetics and potentially helpful in managing blood sugar-related illnesses.
121 A recent (21 July 2008) article from Time Magazine outlines some of the potential of Agave in the Inulin industry; and indicates some of the recent growth of this industry. A Mexican company, Neculti, has established a plant to process 800 tons of raw agave per month, yielding 150 tons of pure, dried inulin. Within 18 months to two years, this capacity will be extended to produce 5,000 tons per year.
Work performed at CSIR Biosciences found that the pinás of the local AA contain up to 25% of inulin, matching that of the Mexican plant. However, local plants are considerably larger than Mexican ones (200-300 kg vs. 80 kg) indicating the potential for a higher yield of inulin per hectare for local plants. Even the leaves of Karoo AA have been found to contain 16% of fructans, suggesting they could yield inulin as well. This could create hundreds of jobs in the agricultural sector.
122 Fibre and Paper Potential
CSIR research has already shown that AA contains fibres that can be extracted and used for the production of technical textiles and paper.
The yield of AA fibres is 6 tons per hectare, which is considerably higher than the yield of other commercial fibres crops (sisal – 0.6 tons/ha; flax – 1.8 tons/ha). Initial tests suggest that industrial trials are called for.
30% of fibres waste is generated, and, due to its large amount (200 tons per 100 ha), this textile waste can be used for industrial paper manufacture.
300 kg of AA yields 150 kg of pina (for agave alchole or inulin) and 150 kg of leaves, for fibre. This is truly a plant with huge potential for small farmers in the Karoo
4.3.5 Aloe Ferox
Background
Aloe is a genus containing about 400 species of flowering succulent plants. The genus is native to Africa, and is common in South Africa‟s Cape Province, the mountains of tropical Africa, and the neighbouring areas such as Madagascar, the Arabian Peninsula and the islands off Africa. 80% of all South Africa‟s aloes are in the Eastern Cape Province.
Aloe Vera, also known as the Medicinal Aloe, has no naturally occurring populations today, although closely related aloes do occur in northern Africa. The species is frequently cited as being used in herbal medicine since the beginning of the first century AD, following a mention in the New Testament (John 19:34-40 – „And there came also Nicodermus, which at the first came to Jesus by night, and brought a mixture of myrrh and aloes…‟). The species Aloe Vera was first described by Carl Linnaeus in 1753 as Aloe Perfoluta var. vera
It is now widely cultivated in North Africa, China, India, Pakistan and various parts of southern Europe (where it was introduced in the 17th century), as well as in Australia, Barbados, Belize, Nigeria, Paraguay and the USA. It is suggested, however, that these species derive from South Africa originally.
Today the indigenous plantings of aloes in the Eastern and Western Cape are almost all Aloe Ferox. These populations are mostly in the South-eastern Cape, around Mossel Bay and Albertina, but also inland behind Port Elizabeth and East London.
A study of the Aloe industry in South Africa by Van Schalkwyk (2003) is picked up in a Value Chain Report on Aloe Ferox Project, by Prof Gavin Fraser. This report provides much information on the potential for an Aloe Ferox industry in the Eastern Cape, and will be discussed in the following.
Market Opportunities
Aloe Vera and Aloe Ferox
The report sees Aloe Ferox derivatives, other than bitters, facing great challenges from the dominant international position of Aloe Vera. To comply with international legal and quality requirements for aloe gel, a number of criteria have to be met, including:
Absence of bacterial contamination,
123 Aloin content < 10 ppm (it is often over 25 ppm),
Mostly free from Colour and Odour,
Stabilized by preservative and other technical processes,
No adulteration,
Certificate of Analysis,
Retention of full biological activity.
International Market
Should the above be possible, the report suggests the following markets become available:
Functional foods: Here a market for functional additives could be about US $30 billion (2001),
Milk and Yogurt: Aloe Vera is used as an ingredient in probiotic dairy products, which is a market of US $ 3.3 billion.
Fruit Juice and Fruit Juice Drinks are a US $ 36.2 billion market (2000), and fortified drinks, lifestyle drinks and organic juices can all use Aloe Vera products.
Dietary Supplements (market US $ 45.6 billion in 2001), includes vitamins and mineral supplements; herbal products and sports drinks.
Cosmetics and Cosmeceuticals (market US $103.2 billion in 2000), mostly skin care products, and products containing aloe vera are common here.
The Report concludes here:
According to the analysis in van Schalkwyk (2003), the global demand for Aloe Ferox derivatives is estimated to reach an annual maximum of 1.2 billion litres of non- concentrated gel of whole leaf extract for soft drinks and liquid supplement, 18.6 tons of 200x concentrated gel powder for dietary supplements and cosmetics and 107.6 tons of filleted leaves for the food industry. This demand is complemented by 30,000 kg of dried leaf powder for herbal tea/supplements and 75kg of aloesin. If capacities and opportunities are optimally used, the total value of the aloe derivatives could peak at US $8,2 billion per year by 2005.
Harvesting and Processing
Prof Fraser describes this process as follows:
Poor communities mainly do harvesting of natural growing Aloe Ferox. The harvesters would arm themselves with a sickle, strong gloves, a rubber or leather arm protector, a spade and a plastic sheet. At a central point among a group of plants a shallow drain basin is scraped and lined with the plastic sheet. The leaves of the plant are scored with a single 3 or 4 centimeters from the deep base, deep enough to make them easy to break off. The leaves are transported rapidly to the plastic lined
124 drainage basin and stacked in a circle around the edge of the plastic sheet so that the bitter sap can drain into the depression. The pile of leaves looks like an inverted cone and the height of the cone depends on the number of plants in the vicinity. The pile of leaves is left to drain for about 6 to 8 hours. After allowing sufficient time for drainage, the accumulated sap is emptied out of the plastic sheets into plastic containers.
The sap as well as the freshly cut leaves can now be brought to a central point or to be delivered to the factory where the produce could be bought from the harvester.
Various intermediate products are manufactured from aloe leaves and aloe sap.
Aloe Bitters
Aloe bitters is also known as Aloe crystals are created when the bitter sap is boiled for three to four hours. When it cools it solidifies into a crystalline lump. The crystalline is sold in three forms: in the crystalline form, in granulated form (the crystalline is crushed into small pieces) and in a powder form.
Aloe Gel
The leaves are sliced, minced and squeezed to separate the sap from the leaves. The leaves are boiled to obtain the gel.
Aloe Gel Powder
Aloe gel powders are highly refined and require relatively sophisticated extraction technology. The methods used are freeze-drying or spray-drying.
Aloe Drinks (juice)
Aloe drinks are made at the end of the production of aloe gel before it is left to cool. The liquid is poured into a mixing pot where raw sap is mixed with the gel. Preservatives are now added and the drinks bottled.
Aloe Leaf Powder
This natural dietary fibre is obtained from the drained leaves. The dried pieces are milled into a fine powder. It does not contain additives.
Other Products
Other products make a very small part of the market but if economically produced local and export markets would be sought. These products include aloe tea and aloe jam.
The following parts of the aloe leaves are used commercially:
Whole leaves,
Whole leaf extract,
The inner fillet,
125 The bitter exudes.
Leaves are shipped refrigerated whole or skinned and shock-frozen.
The inner fillet contains an aqueous gel rich in acetylated and pectic polysaccharides, enzymes, amino acids growth factors, vitamins and minerals. The gel is widely used in skin care and personal care products because of its moisturizing, wound healing, and anti-inflammatory activity. Pure or enriched aloe juices are marketed as a drink to prevent gastrointestinal and arthritic conditions and to strengthen the immune system. The juice is distributed either as a food or as a liquid supplement.
Water-extracts from the whole leaves, with the aloin removed, are increasingly replacing pure gel in juice production, due to the higher solid matter content. The bitter sap is rich in anthracene chromones, such as aloin, aloesin, aloeresin A and B. Aloin and aloesin are the most important from a commercial point of view. Aloin is in demand by the pharmaceutical and food industries for use as a laxative and flavouring agent. Aloesin is a potent tryosinase inhibitor and used as a natural skin- whitening agent by the cosmetic industry.
The processing of Aloe Ferox is old-fashioned and technical equipment required is primitive. Furthermore, there is no quality control, proof of biological activity, check for the presence or absence of bacterial contamination, depletion of aloin, nor an established market standard. Processors sell intermediate products to exporters, to extract suppliers and overseas agencies. Whole leaf juices and personal care products are marketed domestically via direct marketing and factory outlets. These products are also sold internationally via the internet and sales agents.
Much of this must be improved in order for Aloe Ferox products to justify an increased share of this enormous market, and to make inroads in Aloe Vera’s market success.
South African Suppliers
At the time of the writing of Prof Fraser‟s report, there were two processing plants in the South African aloe industry, namely:
African Aloe CC in Uniondale, which began operating in 1995.
Table 38: Production Undertaken by a Patented Process
VOLUME OF LEAVES USED PRODUCTS AMOUNT PER LEAF PRODUCTION (TONS) Aloe bitter crystals 100,000 kg 0.0036 13 889 Aloe leaf bitter 36,000 kg 0.05 360 Aloe white leaf powder 1,000 kg 0.05 10 Aloe fillet juice 60,000 l 0.2 150 Aloe juice 34,040 l 0.2 85.1 Herbal wonders 30,000 l 0.2 75 Aloe gel 14,48 l 0.075 0.7 Aloe gel powder 12,000 kg 0.00625 960 Aloe fillets 0 kg 0.35 0
126 Demand now outstrips supply from this source.
Mossel Bay-Albertinia Aloe Producers (MAAP) – this plant is situated in Albertinia and sources aloe from commercial plantings in the Western Cape. They produce gel; spray-dried white gel powder, whole leaf liquidized product and dried leaf powder.
Beginnings in Camdeboo
The Camdeboo Municipality has, commendably, begun operations for the beginning of an Aloe Ferox industry in Camdeboo. 114 hectares of municipal land has been leased to the Living Aloe Company (Pty) Limited, which in turn is 40% held by the Zikhuliseni Rhafu Trust, a local Empowerment Trust. The Kellogg foundation had made some seed capital available, and a start is being made on a Camdeboo Aloe Ferox initiative.
4.3.6 Camdeboo Bream (Aquaculture)
Background
The South African annual pilchard quota was 457,000 tons in 2004. This has been reduced to 90 776 tons in 2008, and further reductions are expected. At present 89% of South Africa‟s population consume tinned pilchards – this suggests that 5.5 million South African, mostly poor South Africans, will lose access to this as a food source. Fish is a superb source of micronutrients such as iron, iodine, zinc, calcium, vitamins A and B as well as fatty acids – a few hundred grams of fish consumed makes the difference between food security and starvation.
An innovative project, the opportunity created by drop in pilchard quotas has been seen by the Camdeboo Satellite Aquaculture Project (CSAP), as an opportunity.
Aquaculture is the rearing of aquatic organisms in captivity, and CSAP is proposing to rear oreochromis mossambicus (or ideally the faster growing o.niloticus, if permits can be obtained) in captivity, at high densities using reticulating aquaculture systems which will be located within greenhouse tunnels in the Karoo. Artificial diets will be used for the duration of the production cycle (this will eventually be made by Graaff-Reinet‟s Montego Food on a special production facility) until market weight of 30 grams is achieved – this should produce approximately 10 tons of fish per tunnel per month.
The fish will then be sold under contract (the details of which are already agreed and signed), and will be sold into the gap in the market left by the reduction in the pilchard quota.
Why the Karoo?
The Camdeboo area has, according to project coordinator Liesl de la Harpe, ideal weather. Tilapia like warm water, which the Karoo provides all summer, and, because of the lack of rain and the availability of solar heating, the insulated tunnels can be warmed inexpensively in winter.
What is Proposed?
At present Thina Sinako, and Eastern Cape Government/European Union local economic development support vehicle, has made R750,000 available to the project, and this has been used to „design‟ CSAP. This includes obtaining environmental authorization; Project
127 design; aquaculture system design; feasibility study; supplier and input assessment; compilation of legal documentation; formulation of a Training Plan; Operating Manual, Marketing Plan and Business Plan; and identifying associates, sub-contractors etc.
The project will have two phases: the Pilot Phase and the Commercial Phase.
The PILOT PHASE will see the establishment of a central farm management structure and facilities, as well as four tunnels in three different sites, and much other initial work. This is now well underway, and production trials have begun, and the first fish harvested, and lessons learned.
The COMMERCIAL PHASE: This will see the creation of 50 satellite farms between 2011 and 2015.
These farms will employ 5 women per farm, at a wage of R1,240 each per month; and should produce 120 tons of fish per annum, thereby feeding, in aggregate, nearly 800,000 people. Further jobs will be created in the central management farm (16) and at Montego Foods (60 persons), and at local contractors (30). Further jobs will be created at suppliers and sub-contractors of many sorts, and at the canneries.
Comments
This is an innovative and entrepreneurial project, and has a driver (the CSAP) a determined project co-ordinator (Ms Liesl de la Harpe) and a seed budget. The Pilot Scheme is beginning, and sound business planning is in place. It is plainly a project with great potential, albeit at the beginning of the tough part of the project cycle.
[This report relies on the Concept Note „Camdeboo Satellite Aquaculture Project‟, provided by Ms de la Harpe, and the review in the EP Herald of 8 July 2008]
4.3.7 Other Agricultural Opportunities
AgriDIS of the University of the Free State, in a paper on Agricultural Opportunities for Municipalities in the Cacadu District, outlines the following as the opportunities open to Camdeboo:
Animal Products Beef Mohair Wool Mutton Game Ranching Rainfall Crops Rainfed Aloe Irrigated crops Vegetables Sugar Beet Oranges Cotton Olives Apples and Pears Stone Fruit
We have considered all the non-irrigated options, and agreed that, under prevailing circumstances of bulk water supply, not to consider the prospects of irrigated crops until a more secure bulk water supply could be finalized.
128 4.4 Tourism in the Camdeboo
Camdeboo Municipality has a Tourism Sector Plan, (currently under review) which consists of the following three documents:
A Situation Analysis, outlining the (then) state of the tourism industry in Camdeboo (dated November 2004),
An Infrastructure Assessment Report (undated), and
A Final Tourism Sector Plan, dated March 2005.
The first and third documents are by Grant Thornton, and the second by Stewart Scott International (this has been covered extensively in another section of this report, and will not again be covered here).
4.4.1 The Situation Analysis Document
This document is in five sections; an Introduction; a section on South Africa and Eastern Cape Tourism; a section on Tourism Supply; a section on Tourism demand and a SWOT Analysis.
Table 39: Summarized profile of foreign and domestic tourists based on Grant Thornton’s Analysis of National and Provincial Data.
FOREIGN DOMESTIC ORIGIN UK Eastern Cape Germany Western Cape Netherlands Gauteng Kwa-Zulu-Natal PURPOSE OF VISIT Holiday VFR ACTIVITY PREFERENCE Nature/Wildlife Beach Historical sites Shopping Museum/Art Gallery Soccer Cultural Village Nature Reserves Adventure activity Religious Gatherings
The „tourism products‟ of the Camdeboo are then described, in the following categories:
Historical
A list of Graaff-Reinet‟s (only) remarkable national monuments. Here it is noted that Graaff- Reinet‟s museum received around 20,000 visitors in 2004/05, down from 27,000 in 2000. 38% (7625) of these visitors are foreign (Netherlands and Belgium 43%, Germany 15%, UK 11%, France 8%, Australasia 7%, etc); and 62% (12,380) domestic (Gauteng 17%, Mpumalanga 16%, North West 18%, Kwazulu-Natal 15%, Western Cape 12%, Free State 10%, and the Eastern Cape only 8%)
129 Cultural
Being Art Galleries, Places of Worship and Heritage Sites (incredibly, The Owl House in Nieu-Bethesda receives about 15,000 visitors per annum – compare this with the above figures)
Nature- Based Products
At the time of this Plan the area had only the following nature reserves and game farms:
1. The (the report lists 100,000 visitors in November 2005 – according to Mr Peter Burdett of SANParks, it is now called the Camdeboo National Park and attracts 43,000 visitors per annum predominantly to view the Valley of Desolation)
2. Samara Private Game Reserve (28,000 ha).
3. Asante Sana (15,000ha) Mount Camdeboo (28,000 ha)
4. Glen Harry (10,000 ha)
5. The Rupert Family Trust land (12,000 ha)
Tourist Accommodation
Table 40: The number of accommodation establishments, and number of rooms and beds, in the area
AREA NUMBER OF NO OF ROOMS OR TOTAL ESTABLISHMENTS UNITS NO OF BEDS Aberdeen 6 24 48 Adendorp 4 16 33 Graaff-Reinet 72 414 832 Graaff-Reinet Rural 24 90 180 Nieu-Bethesda 25 82 163 Nieu-Bethesda rural 4 25 50 TOTAL 135 651 1,306
From this, on an estimated occupancy of 80% the following projections can be made:
Table 41: Number of Bednights Sold
AREA ROOMS OR UNIT ROOMS OR UNIT OR DOUBLE BEDNIGHTS SOLD OCCUPANCY Aberdeen 80% 6,307 Adendorp 80% 4,205 Graaff-Reinet 80% 135,999 Graaff-Reinet Rural 80% 20,696 Nieu-Bethesda 80% 24,243 Nieu-Bethesda rural 80% 5,749 TOTAL 805 197,199
130 The report concludes that the study area receives 146,000 tourists staying in formal accommodation per annum, split between 29% foreign tourists (42,000 people) and 70% domestic tourists (103,000). (All of this ties in with a later survey of tourist accommodation and usage conducted by the Camdeboo municipality which found 133 such establishments in the study area, with 1,229 beds and occupied at 60% or supplying 265,811 bednights per year).
Table 42: Comparison with Other South African Destinations
TOTAL BED BED NIGHTS BED NIGHTS TOTAL NUMBER NUMBER OF NUMBER OF NIGHTS SOLD TO SOLD TO OF FOREIGN DOMESTIC SOLD FOREIGN DOMESTIC TOURISTS TOURISTS TOURISTS Aberdeen 6,307 2,659 3,648 4,663 1,356 3,308 Adendorp 4,205 1,773 2,432 3,109 904 2,205 Graaff-Reinet 135,999 57,340 78,659 100,551 29,233 71,318 Graaff-Reinet Rural 20,696 8,726 11,970 15,301 4,449 10,853 Nieu-Bethesda 24,243 10,221 14,022 17,924 5,211 12,713 Nieu-Bethesda Rural 5,749 2,424 3,325 4,250 1,236 3,015 TOTAL 197,199 83,143 114,056 145,799 42,388 103,411
FOREIGN DOMES TOTAL TIC Durban Metropole 736,000 2,700,0 3,436,000 00 Cape Town Metropole 1,300,000 1,900,0 3,200,000 00 Nelson Mandela Metropole 390,000 972,000 1,362,000 Buffalo City (East London 105,000 734,000 839,000 etc) Kouga (Jeffreys Bay, etc) 46,400 151,400 197,800 Lukhanji (Queenstown, etc) 2,700 174,500 177,200 Ndlambe (Port Alfred etc) 31,000 134,000 165,000 Camdeboo 43,000 115,000 158,000 Inkwanca (Molteno etc) 1,000 8,600 9,600
Table 43: Present Situation of the Camdeboo Tourist Market
FOREIGN FOREIGN DOMESTIC DOMESTIC DOMESTIC DOMESTIC LEISURE VFR HOLIDAY TRANSIT VFR BUSINESS Primary or Primary Secondary Primary Primary Secondary Secondary Secondary Market Foreign or Foreign Foreign Domestic Domestic Domestic Domestic Domestic Main Origin Dutch Dutch Gauteng Gauteng Gauteng Gauteng Germany Germany Western Western Western Western UK UK Cape Cape Cape Cape Tourism Stop on General Nature Transit General Business Product General Interest Holiday Stop Interest Bought Interest Stop Stop Tour Family Couples Couples Couples Couples Couples Business Structure with with with Children Children Children Age >30 >30 >30 >30 >30 >30
131 Income High High Middle to Middle to Middle to Middle to High High High High Average length of 1,5 days 3 days 5 days 1 day 3 days 1 day Stay Size of the Market 42,000 1,000 18,400 76,600 11,500 8,400 (No of Tourists pa)
4.4.2 The Tourism Sector Plan Document
Table 44: Growth Percentages Recommendation for the Camdeboo Tourist Industry
Market 2005 2006 2007 2008 2009 Segment Domestic VFR 2% 2% 3% 3% 3% Domestic Business 2% 2% 2% 2% 2% Domestic 2% 3,5% 4% 4,5% Leisure 2% Foreign Leisure 2% 3% 5% 7% 7%
Table 45: Projected Income for Tourism Industry in the Camdeboo
2004 2005 2006 2007 2008 2009 TOTAL DIRECT EXPENDITURE Year-1 Year-1 Year-2 Year-3 Year-4 Year-5 R'000 R'000 R'000 R'000 R'000 R'000 Expenditure by Foreign Holiday Tourists 59,328 63,540 68,719 75,762 85,119 95,631 Expenditure by Foreign Business Tourists 910 974 1,054 1,162 1,305 1,467 Expenditure by Domestic Holiday Tourists 8,089 8,663 9,279 10,035 10,853 11,851 Expenditure by Domestic VFR Tourists 1,011 1,083 1,160 1,254 1,357 1,481 Expenditure by Domestic Transit Tourists 21,594 23,127 24,769 26,788 28,971 31,637 Expenditure by Domestic Business Tourists 3,981 4,264 4,567 4,939 5,341 5,833 94,913 101,652 109,547 119,940 132,946 147,900
Table 46: Employment and Gross Domestic Product Contributions Using Suitable Tourism Industry Multipliers
CONTRIBUTION TO EMPLOYMENT 2004 2005 2006 2007 2008 2009
Total additional direct expenditure 94,913 101,652 109,547 119,940 132,946 147,900
Employment multiplier for the Camdeboo Municipal area 7.2 6.86 6.53 6.22 5.92 5.64
132 Net contribution to employment in the 683 697 715 746 788 834 Camdeboo Municipal area (# of jobs) CONTRIBUTION TO GDP 1,011 1,083 1,160 1,254 1,357 1,481 Total additional direct expenditure 94,913 101,652 109,547 119,940 132,946 147,900
Income multiplier for the Camdeboo Municipal area Net addition to the Camdeboo Municipal GDP 98,710 105,718 113,929 124,738 138,264 153,816
Actions to Achieve these Figures
Table 47: Core actions with regard to Camdeboo Tourism Sector Plan
CAMDEBOO TOURISM SECTOR PLAN
Product HR & SMME Infrastructure Institutional Development Development Development Framework
*Karoo Nature *Tourism *Water Supply *Establish Reserve Entrepreneurial *Cellular Camdeboo *Camdeboo Arts Programme Network LTO & culture *Tourism Coverage *provide Project Awareness *Road LTO *Airport *HR maintenance funding Developent Developent *Signage *facilitate *Facilitation of Facilitation *Public establishment other tourism Ablutions of CTO's developments *Lack of Security
The municipal sphere includes the creation of the Camdeboo Local Tourism Organization (LTO, a Municipal Entity) which would have the responsibilities of tourism destination marketing, and of running a main tourism information office.
Various Community Tourism Organizations (CTOs) would be formed which would provide input to the marketing plan, develop tourism products and serve as satellite information offices. Table 48: The Budget of the Camdeboo LTO as Projected
MARKETING BUDGET 35Brand 00000000 & Logo Development* 35,000 0 0 0 0 Public Relations 30,000 32,000 34,000 36,000 38,000
133 Trade Shows 75,000 80,000 85,000 90,000 95,000 Sales Visits, etc. 20,000 21,000 22,000 23,000 24,000 Route Brochure 100,000 0 0 0 0 Design* Route Brochure 50,000 53,000 56,000 59,000 63,000 Production Brochure 5,000 2,200 2,400 2,600 2,800 Management Exhibition Material 10,000 11,000 12,000 13,000 14,000 Website Design* 15,000 0 0 0 0 Website Management 5,000 5,000 5,000 5,000 5,000 Events Promotion 35,000 37,000 39 000 41,000 43,000
OPERATIONAL BUDGET Tourism Manager 125,000 133,000 141,000 149,000 158,000 Secretarial Support 40,000 42,000 45,000 48,000 51,000 Information Officer 50,000 53,000 56,000 59,000 63,000 Office Expenses 40,000 42,000 45,000 48,000 51,000 TOTAL 511,200 542,400 573,600 607,800 635,000
There is a further role for the municipality, outlined in section 7.8 of the document.
The Camdeboo Municipality has a wider role to play in the tourism industry than merely tourism promotion through the Camdeboo LTO, tourism development and HR and entrepreneurial development. There are various other responsibilities that the municipality needs to acknowledge in regard to tourism promotion and development. These responsibilities include:
The maintenance of public amenities;
Safety and security by visible and regular policing at key tourism attractions;
Prioritization of the tourism industry by all municipal departments by giving favorable consideration of general infrastructure developments that may aid tourism, taking cognizance of tourism in town planning, facilitating tourism development, etc.; and
Standardization of signage.
By addressing these issues the Camdeboo Municipality will contribute to the growth in the tourism industry and the resulting employment creation.
Four pages of actions (48 in number) are published, and the budgetary implications thereof mostly ignored. These are as follows:
134
Objective Action To be completed end of year Responsible Budget Performance Indicator 1 2 3 4 5 2005 2006 2007 2008 2009 Institution Implementation Include the recommendations of the Tourism Sector X X X X X CM N/A Inclusion of recommen- Plan in the Cambedboo IDP dations in IDP Allocate funding to the relevant recommended X X X X X CM N/A Number of programmes programme implemented Review and monitor the Camdeboo Tourism X X X X X CM N/A Number of programmes Sector Plan on an annual basis implemented Marketing Develop Camdeboo logo and by-line X LTO R35,000 New Camdeboo logo & by-line Utilise Camdeboo logo and by-line in all X X X X X LTO N/A Utilization of the promotional material Camdeboo logo & by-line Complete a route brochure X LTO R100,000 Completion of the route brochure Produce and distribute the route brochure X X X X X LTO R50,000 Number of route brochures distributed Conduct Public Relations X X X X X LTO R30,000 Number of mentions Send Direct Mail X X X X X LTO N/A No of e-mails sent Local and Regional Advertising Campaign X X X X X LTO Funds to Increase in the number be secured of visitors Attend Trade Shows X X X X X LTO R75,000 Number of trade shows attended Conduct sales visits, workshops and X X X X X LTO R20,000 Number of sales visits, familiarzation trips etc conducted Complete a Camdeboo Website X LTO R15,000 Completion of the website Manage website and utilise it in all relevant X X X X X LTO R5,000 Number of visits to marketing material the website Compile and execute an events programme X X X X X LTO R35,000 Number of events and number of visitors to events
135
Objective Action To be completed end of year Responsible Budget 1 2 3 4 5 2005 2006 2007 2008 2009 Institution Product Development Put development of Karoo Nature X CM N/A Reserve to tender Establish a Camdeboo Arts & Culture Brand: *Establish a Camdeboo Arts & Culture X CM NA Association *Encourage the use of the Camdeboo X X X X X CM<O NA logo on arts & crafts Provide support to artists and crafters: *Provision of transport to fairs, events and X X X X X CM<O N/A festivals *Investigate marketing channels for X X X X X CMT N/A local produced goods Establish a Camdeboo Arts & Culture route X CM N/A Market the Camdeboo Arts & Culture route X X X X X LTO N/A
Improve the airport X X CM N/A
Outsource the municipal caravan parks X X CM N/A Facilitation of Attraction Developments X X X X X CM N/A
HR & ENTREPRENEURIAL Conduct the Enterprise Development and X X X X X CMT R45,000 DEVELOPMENT Support Programme Establish the Entrepreneurial Support X CMT N/A Function Provide assistance to entrepreneurs X X X X X CMT N/A
Conduct tourism awareness programmes X X X X X CMT R45,000
Facilitate HR Development X X X X X CMT N/A
136
Objective Action To be completed end of year ResponsibleBudget Performance Indicator 1 2 3 4 5 2005 2006 2007 2008 2009 Institution Infrastructure Augmentation of the bulk water supply to Graaff-Reinet Expansion of the cellular network coverage Maintenance of unsurfaced roads Maintenance of roads in towns Improve signage Build public ablution facilities Improve safety and security Institutional Framework Establish a Tourism Division in the Camdeboo X CM N/A Tourism Division Municipality Established Employ a tourism development officer X CM N/A Tourism development officer employed Facilitate tourism developments X X X X X CMT N/A Number of tourism developments facilitated Facilitate HR & Entrepreneurial Development X X X X CMT N/A Number of entrepreneurs and training programmes facilitated Establish a Camdeboo LTO X CM N/A Camdeboo LTO established Appoint a board of directors for the X CM N/A Board of Directors Camdeboo LTO appointed Nominate the 2 non-participating observers X CM N/A Non-participating observers from the Camdeboo Municipality nominated Employ a tourism manager, secretary and X LTO N/A Staff employed information officer Facilitate the establishment of CTO's X X X X X CMT N/A Sustainable Number of CTO's facilitated
137 4.4.3 Conclusions
The Tourism Sector Plan is a valuable document, containing much information and many recommendations. It has, however, a number of shortfalls.
It appears to have had limited circulation and as such has had limited implementation,
It does not appear to be tied in to budget realities (although this is always a challenge),
The report does not relate to the existing and functioning Graaff-Reinet Tourism Office, which provides a number of the functions recommended in the report,
In general, the process whereby a small municipality with limits on expenditure can fit into an albeit-well-crafted but expensive tourism plan does not seem to have been fully worked through – and this, is, as always, the key issue.
4.5 Commercial Goods and Services
The availability of commercial goods falls into two categories in the Camdeboo – Graaff-Reinet, and the rest
4.5.1 Graaff-Reinet
Here there is an acceptable variety of shops and service providers, including the following well- known chains:
Groceries – Shoprite, Spar, Fruit and Veg,
Financial Services – FNB, ABSA, Standard, Wesbank, Sanlam, Santam, Capitec, Old Mutual, Midland Board,
Furniture - Lewis, Russells, Furniture City, Joshua Doore, Sheet Street,
Clothes – Markhams, Jet, Truworths, Mr Price, Ackermans, PEP, Fochinis,
Chain Restaurants – Spur, KFC, Wimpy, Steers,
Individual Restaurants – A good variety exists here also – Drostdy Hotel, Coldsteam etc.
Motor – Algoa Toyota, Superquick, Seamans, MICA, Midas, Hi Q
Others – Clicks, Waltons, Amercian Swiss etc.
Obviously local citizens would enjoy a greater variety – but most of one‟s daily requirements can be obtained in Graaff-Reinet.
Certainly the largest and most advanced future development is a Plasto Properties proposal development on their site between Brestler Street and Maynier Street, in Spandauville. Here Plasto own 3, 4 hectares of land, which they have had zoned as follows:
Erf 8795 (11,115m²) – Residential 3 Erf 8796 (7,801m²) – Business 1 Erf 8797 (15,029m²) – Business 1
Onto this site (see attached figure) is proposed a three-part development. 138
A shopping centre (erf 8797), A hotel (erf 8796) and A set of townhouses (erf 8795) (see attached sketch).
This project does not, as yet, have a tenant mix, and as such it is difficult to predict what contribution to variety it will make. Gaps in the market appear to include high fashion clothing, and entertainment (movie houses).
139
140
141 4.5.2 Aberdeen and Nieu-Bethesda
The commercial variety in both Aberdeen and Nieu-Bethesda is very limited – we have noted that Dr Atkinson reported being unable to purchase a cheese-grater in Aberdeen, a town with only Pep Stores as a national chainstore in existence.
Nieu-Bethesda is even more limited – no petrol available and only one spaza shop supplying milk or fresh produce. No plans appear to be in the pipeline for developments in Nieu- Bethesda and very limited ones are on the horizon for Aberdeen.
4.6 Government
Possibly the fastest growing area of the Camdeboo economy is government, and again Graaff-Reinet is the principle beneficiary:
The redevelopment of Beyers Naude House into a regional headquarters of the Department of Education (underway) will see over 300 families relocating to Graaff- Reinet, to further swell the size of the purchasing economy.
The future development of a regional headquarters for the Department of Social Development is also scheduled for Graaff-Reinet in the near future.
A R100 million FET College expansion is planned, to bring departments of Agriculture, Engineering and Business into the local community.
The Provincial Roads construction head office is to be situated in Graaff-Reinet, and the construction units of Mtatha are to be moved there.
New road developments, Graaff-Reinet to Port Elizabeth and Graaff-Reinet, Pearston, are underway. The Aberdeen to Klipplaat road, and the Wellwood-Nieu-Bethesda roads, is also to be tarred.
In general, our study suggested that those in government employment have risen from 12.3% of the urban workforce to 20.5% - and this trend is plainly not slowing.
4.7 Industry
Despite the three handicaps of limited water; no railway connections and remoteness from South Africa‟s markets, industry in Graaff-Reinet appears to be flourishing, and all available industrial land has been take up (see Policies).
Interviews with prominent industrialists yielded many suggestions for subcontract or add-on industrial projects which could be used to create employment opportunities, new businesses (often with PDI ownership) and continue the trend towards successful industrial undertakings in Camdeboo.
4.7.1 Karoo Taxidermy,
This began as a start-up business in 1999, is now employing over 70 persons in two premises in Graaff-Reinet. They are proud of their success, part of what they attribute to their excellent staff; good relationships with and service from relevant municipal departments; and the good service they receive from local businesses and professionals.
142 They believe they could see 50 new jobs created in Graaff-Reinet to satisfy their requirements for product bought from out of town – they buy pedestals from Mossel Bay; they discard some hides that could be worked into product for sale; specialized tanning is often required, etc. Further, they have a service of setting up the spouses of staff members into spaza businesses of their own.
4.7.2 Montego Feeds,
This business was bought over by Mr Hannes van Jaarsveld from liquidators in 2000, now supplies between 10% and 15% of South Africa‟s pet food requirements from Graaff-Reinet. This is a remarkable achievement in such a short time – carcass meat is brought in from all over South Africa and Argentina; maize from the Free State, etc. They too, believe they have requirements that could be supplied by small businesses start-ups in Graaff-Reinet.
4.8 Recommendations
4.8.1 Size and Services of the Camdeboo Economy
In section 2 of this part of the review, we noted that, in 2001, about 10 000 people were employed in the Camdeboo, with the biggest sectors being Government (21%), Agriculture (20%), Tourism and Private Households (18%) and Commerce (16%). These ratios may still be about right, or they may vary year from year depending on the success or otherwise of sectors of the market.
But the happy truth is that the Camdeboo has four large economic sectors: Government; Agriculture; Tourism and Commerce. Each of these sectors has been reviewed, in depth, in this chapter. Now is the time to pull together recommendations from all of this.
4.8.2 Camdeboo Business Forum
There is a need for a carefully constructed Camdeboo Business Forum, possibly to advise a future Development Agency, and the Municipality, on economic issues.
The office of the Mayor, after consultation, should create a Camdeboo Business Forum with terms of reference and the necessary personnel and infrastructure. (We are pleased to hear that an initiative is underway to form a Chamber of Commerce)
4.8.3 Animal Farming
o We have inspected, in depth, the angora, merino, cattle, ostrich and game industries.
o All of the above industries have enormous potential in the Camdeboo district. As most farming land is in private hands, it is advisable for government to allow the wisdom of the farmers to decide in which of the above, or which blend of the above, each farmer embarks on at any particular time.
o Should, however, significant tracts of economically viable land be maintained in an unproductive mode, Council could consider imposing a special rate on this land to encourage its optimal usage.
o The previous text contained a number of recommendations as to how to help PDI farmers enter these areas of agriculture. Large scale interventions are beyond the resource availability and/or mandate of local government. However, local government can play a coordinating and motivating role, along with other levels of
143 government and the parastatals, etc., to realize their programmes. As such we recommend the Municipality enters into a closer working relationship with local Agricultural Extension Officers. These areas are then worked on the basis of a collaborative approach.
4.8.4 Rain Fed Crops – Agave and Aloe Ferox
While much is happening here – the factory is probably shortly to recommence manufacture; the CSIR programmes are underway; the Aloe project is continuing – we feel that these projects have an enormous amount of potential and merit.
It is recommended that the Agricultural Extension Officr be tasked with promoting these industries also.
4.8.5 Irrigated Crops
It is our previous recommendation that, until a secure bulk water supply to Graaff-Reinet is guaranteed, no promotional efforts be put into the creation of an irrigated crops industry.
4.8.6 Aquaculture and Aquaponics
Again, it is our belief that this proposed industry has enormous potential, and has a strong project driver (the CSAP). It is recommended that the Municipality support the CSAP in every way possible.
4.8.7 Tourism
We recommend that the Camdeboo Municipality update the Tourism Sector Plan, taking into account:
The existing Camdeboo Tourism Sector Plan,
Clear budget implications for all proposed projects and overheads, and income streams,
The need for dedicated staff to promote Camdeboo Tourism, possibly from the proposed Development Agency,
Skeleton business plans for:
o Conference facilities, o Entertainment facilities (cinema etc), o Backpackers facilities, o Adventure tourism products, o The proposed expansion of the Red Reinet Stigting to Aberdeen and Nieu-Bethesda, o Greatly increased use of the Graaff-Reinet airport, including microlite flights, o Train-based tourism facilities, including,
. Port Elizabeth-Graaff-Reinet-Cradock-Port Elizabeth trips, . Graaff-Reinet to Clifton trips,
144 o The use of the Dam and its facilities, o Festivals and proposals therefore, o A family hotel, o The possibility of expanding the Camdeboo National Park up to the Mountain Zebra National Park, and the implications thereof, o The promotion of the Royal Block and other township based attractions, o The promotion of any other recommended tourist attraction.
4.8.8 Infrastructure
The provision of infrastructure is in two ways advantageous – firstly, it employs people in building projects, and secondly, the institutions these create employ other people continually. It is recommended:
o That the CM develops a business plan to build as many houses as are necessary to eliminate its backlog.
o That the CM identifies and then advertises a site suitable for an „Ultracity‟ transport hub for private sector development. This in conjunction with the Transport Impact Assessment previously mentioned.
o That the CM compiles a Business Plan for efficient sorting and re-use of waste deposited at its Waste Disposal site.
o That the CM encourages the development of a golf estate at the present golf course.
o That the CM identifies and then advertises sites for further Retirement Complexes to encourage the growth in the local Reticulation industry.
4.8.9 Industrial Promotion
Recommendation: That the CM workshops, with existing industrialists, opportunities for outsourcing existing work done, and other opportunities to manufacture locally products at present bought from out of town, particularly as far as such opportunities can involve PDI businesses.
4.8.10 Aberdeen and Nieu-Bethesda
Aberdeen and Nieu-Bethesda are considerably less developed than is Graaff-Reinet, and a special focus on development here should be considered.
Recommendation: That CM works with specific government departments to increase the amount of government infrastructure in, particularly, Aberdeen; including:
A possible Eastern Cape Archive,
An upgrade of the hospital to involve some specialist disciplines,
An upgrade of the schools, to make them attractive as boarding School destinations,
The Municipal Swimming pool, with or without private sector investment,
145 The road to Klipplaat, and other roads,
To RDP housing stock,
That CM commissions a Business Plan for the redevelopment of Fonteinbos Nature Reserve, including the bottling of water and the provision of overnight accommodation.
4.9 A range of Pro-Poor Policies, strategies and plans to bring Low-Income workers, and people from previously disadvantaged backgrounds, into the Camdeboo Economy.
4.9.1 Reviewing Opportunities – possible projects already mentioned in this report
Already mentioned in this report are a variety of project opportunities that, if carefully used, could assist PDI businesses and individuals to grow. These include:
o A review of the Camdeboo Supply Chain Management Policy, with an inspection of the preference points system for both local and PDI businesses.
o The development of a One-Stop-Business Agency, a Camdeboo Development Agency with a PDI department offering mentoring, support and access to finance for PDI businesses.
o The bringing to the market of industrial and commercial land, made available to PDI developers and businesses on a preferential basis.
o Three entry level projects for the development of opportunities for PDI persons in the mohair industry have been proposed:
- Small scale Angora Goat Farming by PDI farms, - Small scale beneficiation of Wool and Mohair and - A 3-Phase Mohair Value-Chain Project
o Similarly, three entry level projects for the wool/mutton industry are suggested.
- Small scale Merino Farming by PDI farmers, - Value added: small scale knitting opportunities, - Value Chain improvements in PDI farming of Wool, - One project is suggested in the Beef Industry (B-6-1) - A value chain project in the Ostrich Industry is suggested, - Both Agave and Aloe Ferox are products which will reward small-scale PDI farmers with an opportunity to earn a living. - The Camdeboo Bream Aquaculture project also has a well-defined profile of opportunities for PDI involvement. - The proposed review of the Tourism Sector Plan should aim specifically at PDI involvement in the industry.
4.9.2 Policies to Promote Informal Trading
The City of Cape Town defines „Informal Trading‟ as „the economic activity undertaken by entrepreneurs who sell legal goods and services within a space declared to the public property‟. Non-registration with SARS as a payer of UIF is another defining characteristic.
146 This sector of the economy is often a vital first step for emerging traders, who enter a rough- and-tumble world of crude and brutal capitalism. The good survive, and the best grow to enter more formal economic opportunities. Eight types of informal activities can be identified:
Street/curbside trading,
Trading in pedestrian malls,
Markets (flea and craft markets, as well as sector based special markets),
Trading at transport interchanges,
Trading in public open spaces,
Mobile traders (roving, caravans, bakkies),
Intersection trading,
Special events (night markets and major events).
These informal activities require a range of management responses:
Policy formulation,
By-law enactment,
Leases drafted and signed (if necessary),
Management/enforcement of policy,
Control of aesthetics,
Supply of support and development trading.
On the operational level, the following services need to be supplied:
Security,
Cleansing,
Facilities (storage and ablutions),
Permit allocation,
Money collection,
Marketing,
Support services.
147 Recommendation
The above tasks are complex and varied, and require considerable effort in both policy and operations.
It is thus recommended that Camdeboo Municipality propagate a comprehensive Informal Trading Policy and Management Framework, which is sympathetic to the needs of the informal trader.
4.9.3 Relations with the S. A. Revenue Services (SARS)
During Development Partners‟ (DP) survey of Camdeboo businesses, DP became concerned that sections of the small business community harboured fears about SARS, and about SARS taking punitive action against these small businesses.
To DP‟s knowledge, SARS has a range of policies that are very favourable to small businesses, and believe that the fears expressed by this community are overstated.
Recommendation
That SARS run workshops in the Camdeboo Municipal area that focus on explaining SARS policies and activities around small businesses.
4.9.4 Small Businesses, Money and Management Help
Low levels of capitalization continually challenge small businesses, as do periods of negative cashflow, and management skills, marketing policies and opportunities and other areas of business. There exist a large number of agencies which, in one way or another are designed to provide help here, the East Cape Development Corporation (ECDC); Business Partners; Khula Enterprises etc.
Recommendations
That the CM LED officer, and possibly staff in the proposed Development Agency, should be trained in the services offered by business support agencies and thereafter advise small business in this regard, and mentor them on an ongoing basis.
That occasional workshops with the above agencies are conducted in the CM area, and that the CM organizes these.
4.9.5 Black Economic Empowerment Partners and Deals
While many established businesses would welcome BEE partners and shareholders, many concerns exist re the ongoing costs of taking in new partners; the challenges of training new partners in all aspects of the business and its markets, etc.
Recommendation
In order to encourage existing businesses to take on BEE partners, the CM should work with, for example, the ECDC, to create a fund of capital that could be lent to prospective BEE partners to buy shares in an existing company, thereby making the BEE deal both attractive financially and an opportunity to re-finance the company.
148 4.9.6 Learning from Successful Business People
During the interviews that have informed this report, a number of prominent and successful Camdeboo businesspersons proposed excellent ideas suggesting opportunities of where small businesses could be created to supply their firms, and many other ideas re small business opportunities.
Recommendation
That the CM conduct a workshop with local business people the intention of which is to identify opportunities (and possibly people) who could open new businesses to supply existing Camdeboo businesses, and also to satisfy existing opportunities and openings for new businesses as may exist.
4.9.7 Rates Holidays
Many suggestions have been made as to creating „Rates Holiday‟ for a period, to encourage new business start-ups. The following is one suggestion in this regard.
Recommendation
Any new business that purchases land from the CM should be given a rates holiday for a few years, the cost of which could be built into the selling price of the land.
4.9.8 Community Development/Job Creation Projects
National Government periodically runs job creation projects (Working for Water, etc). It is important that Municipalities avail themselves of these projects.
Recommendation
That the Municipal LED Officer be tasked to identify all opportunities for Job Creation Projects, and to promote CM as a vehicle for these projects.
4.9.9 Opportunities in Education and Health Service Provision
Many commentators have suggested that, in the world of government-funded schools and hospitals, limited gardening, security, maintenance etc. appears to be carried out. This provides an excellent opportunity for SMMEs to provide these services – provided they can be paid.
Recommendation
That the LED Officer works with the Provincial Departments of Education and Health to obtain funding for SMMEs to provide gardening, security and maintenance services at state schools and hospitals, and begin a programme in this regard.
4.9.10 Tertiary Education Institutions
Graaff-Reinet is one of a few Karoo towns that have Tertiary Education institutions operating in its books – such institutions could provide excellent back-up for SMME!
149 Recommendation
That the CM lobbies for the creation of a School of Entrepreneurship, and a Small Business Support Unit, to be set up within its jurisdiction.
4.9.11 Business Opportunities
Many business opportunities exist, and are publicized, in the journals of the large Chambers of Business and in the documents of the DTI. Such opportunities seldom reach SMMEs.
Recommendation
That the CM LED Officer, or the to-be-formed Development Agency, assembles information regarding business opportunities, etc., and disseminates this in the Camdeboo Small Business Community.
4.9.12 Final Advice
Gwen Swinburn is one of the worlds leading LED scholars and practitioners. At one stage she led the World Bank‟s effort in LED, with a global brief. Her experience in LED spans over 30 years.
She provides us, from her wisdom, with the following two lists.
Ten common issues contributing to less than ideal implementation
1. Lack of city-level socio-economic data,
2. Lack of institutional assessments to understand the capacity to undertake LED,
3. Little, if any, reference to developing indicators, monitoring, and evaluation,
4. Limited LED officers, staff capacity, and poor staff retention in local Government,
5. Political and donor priorities „trump‟ priorities identified in the strategies,
6. Absence or functional absence of the private sector and partnerships; LED teams too dominated by local and state governments and institutions,
7. Lack of funds to implement projects, incorrect assumptions, and miscalculations resulted in weak financial planning and inappropriate timeframes,
8. Lack of organizational capacity and horizontal coordination of projects in implementation,
9. Implementation of projects often the responsibility of state-controlled institutions over which local governments had little power or influence,
10. Lack of LED leadership.
Lessons for Local Governments
1. Strong political leadership and processes are a defining factor in the successful design and implementation of LED strategies.
150 2. Transparency pays. Do what you can to open the process of strategy development and implementation to the public and private sector – all great assets.
3. LED Staff Retention and Continuous Learning. Try to develop strategies to retain LED staff – effective implementation is positively correlated to staff retention. Use every opportunity to develop local and institutional capacities through training, mentorship programs, study tours, etc. LED Management Unit. This should be based in the local government, but implementation can be undertaken by other private and NGO partners, especially as some local government staff is not familiar with project implementation.
4. Maintain the stakeholder relationships. The forum should be maintained post agreement of the strategy to oversee implementation and annual updates. Maintain effective relationships with central governments and donors.
5. Strategies are not cast in stone. They can and should be updated to take account of new opportunities and threats. Strategies should be integrated with other local and national strategies.
6. Start small. Build on local resources and capacity – small successful projects are better than expensive failed projects – priorities.
7. Financial planning must be integrated into LED strategies. LED strategies should be planned according to power and capacity not needs – prioritization is essential. Annual operational plans will help here. Look at PPPs.
8. Stick to the Plan! Try to have donors fund your priorities, not the other way around; a good strategy is a great start. Try not to be tempted by „free‟ offers from donors; these always come at a cost if not a locally agreed priority.
4.10 LED and IDP institutional capacity in the Camdeboo Municipality
4.10.1 A brief analysis of the Camdeboo Municipality Annual Financial Statements, 30 June 2006, and related issues
The following is a brief analysis of the Camdeboo Municipality‟s Annual Financial Statements as of 30 June 2006.
In order to make them more understandable, I have compared them with another municipality in the Eastern Cape. Camdeboo services about 45,000 citizens – the other municipality about 147,000 citizens, or three times the Camdeboo number. The comparison is not meant to portray the other municipality in a difficult light, but instead to highlight the positives about Camdeboo.
4.10.2 Comparison of Balance Sheets
A Balance Sheet is, essentially, a statement of the assets and liabilities of an organisation on a particular day – the last day of the financial year.
4.10.3 Comparison of Income Statements
An Income Statement, previously called a “Profit and Loss Account”, is simply the total income of the organisation for the year, minus the costs of running the organisation. The
151 resultant figure is a profit (if positive) or a loss (negative), and is often referred to as „the Bottom Line”.
Table 49: Income Statement
CAMDEBOO % AN OTHER % MUNICIPALITY MUNICIPALITY OPERATING INCOME Grants and Subsidies Central Government 12,209,558 26,026,339 Provincial Government 10,477,637 EARNED INCOME Assessment Rates 7,030,303 764,056 Health Services 3,228,142 Traffic Control 1,385,697 Electricity 18,883,601 Water 6,390,511 Sewerage and Sanitation 3,877,310 Cleaning Services 1,942,565 24,106 Other 502,300 831,348 Total Income 55,449,987 38,123,486 Operating Expenditure 47,277,604 41,603,271 Appropriations (money put into 3,868,340 revolving Fund for future Capital Expenditure) Councillors’ Allowances (843,374) (692,093) Operating Profit (Loss) 4,304,043 (2,892,075)
Table 50: Statistics of the Two Municipalities Include:
Population 45,000 147,000 Municipal Area (km²) 1,291 Total Valuations Taxable R634,000,000 R111,138,000 Non Taxable R56,000,000 R365,000 Number of Properties Billed: Residential 780 Commercial 85 Government 182 Number of Employees 303 187
Table 51: Comparisons
CAMDEBOO AN OTHER A. BALANCE SHEET Capital Employed R80.5 mil vs. R1.5 mil Revolving Fund (money that can R48 mil R1,1 mil be used for Capital Spending) Reserves R24,5 mil 0 Customer deposits R1,0 mil 0 Employment of Capital Fixed Assets R25,5 mil R0,6 mil Debtors (money owing to the R16,5 mil R6,3 mil municipality) Investments R46,0 mil R0,5 mil Creditors (money owed by the R0,5 mil R7,2 mil Municipality) Overdraft (money owed to the R0,1 mil R8,1 mil Bank) B. INCOME STATEMENT Full spectrum of services No: Electricity, water, provided and charged for sewerage, health services,
152 traffic control income. Services not provided, nor charged for Almost no: Cleansing Property Rates R7,0 mil R0,8 mil Government Grants R12,2 mil (22% of total R36,5 mil (96% of total income) income) Appropriations: 8.3% of spending 0 Surplus (Profit) 7.7% of Earned Income Deficit (Loss) 180% of earned income C. SOLVENCY Current Assets/Current Liabilities 6,6 times Current Liabilities/Current Assets 2,2 times
4.10.4 Some Conclusions
The Camdeboo Municipality has a very strong Balance Sheet – it had, as of 30 June 2006, Statutory Funds (essentially a Revolving Fund for Capital Expenditure) of R48 mil; further reserves of R24.5 mil; Current Assets exceed Current Liabilities by nearly R55 mil (or 6.6 times) backed by R46 mil in Short Term Investments; and Creditors and Overdrafts are just more than R500,000, which are negligible. Debtors, at R16.5 mil, are high, however. This suggests a conservatively run Municipality, with one of the strongest balance sheets of all Eastern Cape municipalities. It is strongly solvent, with a good cash position.
The Income Statement is also strong, and conservatively run. On a total income of R55, 5 mil, a surplus of R4, 3 mil is shown, as well as nearly R4 mil being used as appropriations. Staff, at 303 heads, is low and clearly firmly controlled.
All-in-all, Camdeboo appears to be well run and in a strong position of solvency.
A challenge is, however, the relatively small total income. This does not allow for ambitious or extravagant increases in expenditure. It plainly is a constraint in the area of promoting Local Economic Development projects, and in building up a LED department.
Furthermore, as has been noted, the Camdeboo Municipality provides the full spectrum of municipal services, including, inter alia, the reticulation to its municipal area of electricity, water, sanitation; refuse removal, road maintenance, basic health services (8 clinics), library services and others.
Backlogs exist within the areas of the above services: a 2005 municipal survey by the Cacadu District Municipality suggested the following backlogs in service provisions:
o 15% of households did not have electricity, o 4% of households did not have portable drinking water provision within 200 meters of the dwelling, o Generally, as noted in the Camdeboo IDP document, „Camdeboo Municipality does not have adequate water supplies and has an unstable situation‟, o 20% of households have septic tanks and non-Municipal sewerage systems (no bucket toilets exist), o 8% of households do not have weekly refuse removal.
The housing backlog is estimated at between 4,000 units or 12,327 units (IDP Pg 34). While these backlogs are, by Eastern Cape standards, within acceptable levels, (with the
153 possible exception of the housing backlog), they do suggest that a considerable amount of work remains to be done in this regard.
Commendably, the Camdeboo Municipality has concluded its Organogram, as of 30 April 2008.
This organogram nevertheless reveals considerable areas of concern:
Unfilled posts, as of 30 April 2008, included the following: Director Technical Services and Infrastructure Director Budget and Treasury Director Corporate Services Manager, Administration Manager, Engineering Services and Infrastructure Chief Accountant Internal Auditors ICT Support Officers SPU Officer LED Officer Librarian Town Planner
Unless these senior positions are speedily and adequately filled, service delivery could be threatened, as could institutional coherence. (Some have, since 30 April 2008, been filled.)
Generally, of the 30 plus LED stakeholders personally interviewed, all of whom were asked for successes and failures of the Camdeboo Municipality, considerably more praise than criticism was heard – industrialists universally praised the services offered by the electricity department, and nothing by way of organisational weakness was clearly revealed in these interviews.
We thus conclude that the Camdeboo Municipality is well-run, financially strong and is delivering the full spectrum of municipal services. It is praised by LED stakeholders interviewed for the quality of services delivered. Points of concern, however, exist:
o The municipality has a relatively small total income, which constrains spending on critical projects; and on building up a LED capacity. o Backlogs exist in the provision of a number of municipal services, particularly housing. Rapid development of low income housing puts strain on all other municipal services; o Many senior posts in the organogram need to be speedily and suitably filled, or constraints on service delivery will occur as well as organisational malfunctions.
4.10.5 A Brief Review of the Camdeboo Municipality Integrated Development Plan (IDP) 2007-2012 (1st Review, 28 May 2008) as it refers to Local Economic Development (LED)
Camdeboo Municipality has an excellent 5 year IDP in place, which has recently (28 May 2008) received its first review. This review is noticeable in that it has created a projects register in which it has distinguished between funded and unfunded projects – an excellent development, because it separates reality from the „wish-list‟ (which is, of course, a very necessary thing). This is not the place to review this IDP, except for where it impacts on LED.
154 4.10.6 Municipal Priorities
Annexed to the IDP is a summary document of Ward Consultations and Public Meetings that were conducted in each ward in October 2007 as part of the IDP process. A similar modus operandi was followed in the public meetings in each of the six wards (2 separate meetings were held in Ward 2 because of the size of the Ward – one meeting in Nieu-Bethesda, and the second in Graaff-Reinet Town Hall).
The process was for the IDP/LED Co-ordinator, Ms Leonie Fouché, to brief the meeting on the Priority Issues raised during the November 2006 consultations. Approximately 10 priority issues in each ward were then debated, and pertinent concerns/proposals were noted.
Thereafter the meeting was given the opportunity to participate in a prioritising exercise. The 5 Development Priorities listed in the IDP were arranged on the wall, with detailed illustrations. Each member of the public present was then given a set of stickers which he/she had to affix under the two Priorities considered the most important by that individual. The tabulated results of this process are as follows:
Table 52: Development Priorities
CONSOLIDATION OF PRIORITIES W.2 W.2 W.4 In Order of Priority TOTALS W.1 (NB) (GRT) W.3 &5 W.6 1. Housing 145 23 36 13 17 34 22 2. Infrastructure 89 24 6 18 14 10 17 3. Local Economic Development 86 8 21 8 11 26 12 4. Institution Building 46 4 5 9 21 4 3 5. Community Building 30 9 0 6 5 8 2
From this process, the IDP could go forward by creating a set of LED Objectives:
The Constitutional Mandate of the Municipality is to promote Economic Development.
By creating an enabling environment for LED (e.g. services and infrastructure),
By organising itself institutionally to have the necessary capacity and resources with which to promote, co-ordinate and facilities activities and initiatives with focus on:
Job Creation, BEE & Partnerships, SMME, Industrial and Sector Development, Skills Development, Mainstreaming of 2nd Economy, Youth & Women.
This is accompanied by Four LED Strategies
Formulate & establish applicable LED intelligence, i.e. a LED Strategic Plan, incorporating a socio-economic survey, situational analysis (SWOT) and business profile of the area; Socio-economic Database & Economic Barometer.
Conduct Institutional Study & Formulate appropriate Institutional Framework for implementation.
155 Implement strategic LED Actions and Interventions, with the aim of creating networks, linkages, referral & support systems, appropriate policies, by-laws, incentives, services and infrastructure which will stimulate and facilitate LED, attract investment, encourage establishment and growth of business and industry in the Camdeboo.
Support, encourage and facilitate value-adding initiatives, programmes and projects.
4.10.7 LED in the Camdeboo IDP
LED is addressed in over 6 ½ pages of the Camdeboo IDP (Pg 46-52).
This begins with summaries of a Cacadu District Municipality strategy document „District – Wide Economic Growth and Development Strategy‟.
Promotion of LED is seen as requiring a number of strategies:
Investing in and maintaining good, sustainable infrastructure;
Ensuring a high standard of services;
Poverty eradication though long-term sustainable job creation, SMME establishment; industrial and other growth and investment.
Constraints include the shortage of water (particularly), a lack of adequate road and rail transport facilities and a lack of skills.
An Institutional Analysis suggested two priorities: i) The creation of an LED Plan; and ii) The creation of a municipal LED Unit, separate from the IDP Unit, which is budgeted for and operational.
Community needs suggested four focus areas: i) Job Creation; ii) Black Economic Empowerment and Partnerships; iii) Small Enterprise, Industrial and Sector development; and iv) Skills Development.
Finally, Economic Drivers were outlined, and activities, projects and programmes to be supported were identified in the following seven areas: i) Commercial Agriculture; ii) Tourism; iii) Agri-Processes; iv) Aquaculture; v) Manufacturing; vi) Mining; and vii) Other.
In all of these categories, links to projects in the 2007/12 IDP are outlined.
156 4.10.8 LED Staff
The new Organogram, which is an annexure to the IDP, foresees an IDP and LED staff structure of two persons: An IDP Officer/Co-ordinator; and an LED Officer/Co-ordinator.
Essentially this is the creation of one new post, with the present IDP/LED Co-ordinator retaining the IDP Portfolio but passing LED responsibilities to a to-be-appointed person. Budget strictures, implied in section 1 of this review, are presumably the reason for this very limited investment in staff in the LED portfolio.
4.10.9 LED Projects Listed in the IDP Schedules
It is arguable that all municipal projects have an LED impact, and as such could be listed as LED projects. However, the Camdeboo IDP has a specific listing of Local Socio-Economic Development Projects in its Project Register, and we will thus focus on these projects. Local Economic Development Projects: Funded Registrar, IDP Review 2008/09 Three projects are listed:
IDP REFERENCE NO. PROJECT NAME FUNDING BUDGET 2008/09 2009/10 2010/11 Linked to IDP 577 Aloe Project : Assembly Internal R90,000 of Steel Structure Linked to IDP 661 Aquaculture : Fish Internal R80,535 Dams and processing plant IDP 707 LED Strategic plan and Internal and External R1,3 mil the LED Intelligence
The Camdeboo IDP lists a number of unfunded projects with Socio-Economic potential. These need to be revisited as private/public partnerships, for instance:
Aberdeen Heritage Archive and Tourist Bureau (Private initiative) Divu Kilae Ceramic Sculpture Project (Private initiative) Upgrading of Tourism Office (Formation of LTO structure) Upgrading of Camdeboo National Park Infrastructure (SANParks) One-Stop Truck Inn (Private initiative)
4.10.10 Comment
The Camdeboo IDP document provides a thorough treatment of much in the LED area, and is most helpful in guiding this LED Strategy process. It is, of course, not meant by law to be the final document on Municipal LED programmes (the LED Strategic Plan is that), and as such noting its incompleteness (lack of coverage of the Municipality and its role in enabling LED; lack of coverage of the government sector and the commercial sector, etc.) is not so much a criticism as to note that it is a starting point for this LED exercise.
The Camdeboo IDP is a valuable document, and the municipal organisational structure (organogram) in the May 2008 revision is enormously useful, as are the projects listed in the attached project registers.
However, both in terms of the Municipal commitment to LED (the employment of one member of staff) and the Municipal commitment to LED Projects (limited funding to three LED projects), reveal great limitations in the willingness and/or financial capacity of the Camdeboo Municipality to be a significant player in local LED.
157 The excellent charts of projects, divided into funded and non-funded, should be expanded to include relevant private sector and community-based projects. GANTT charts for each project should be provided for monitoring purposes.
4.11 By-Laws that Affect Economic Activity.
4.11.1 Liquor Trading Hours By-law
This by-law is clearly set-out and we comment only as follows:
Nightclubs, pubs, bars, restaurants etc. are entitled to trade in liquor until 24h00, Monday to Saturday, as are Taverns and Shebeens.
Many persons interviewed in this project have suggested that this is too late. Does Council wish to have an item in this regard submitted for its consideration?
Once trading hours are finally established, all licensed premises should have a sign adjacent to their front door outlining the times of trading, and occasional police inspections should be carried out.
4.12 Supply Chain Management Policy
4.12.1 Camdeboo’s Supply Chain Management Policy
Camdeboo has a comprehensive supply chain management policy, which was adopted by Council on 8 June 2006.
This is divided into a section on Definitions and two full Chapters:
Chapter 1 Deals with the „Implementation of Supply Chain Management Policy‟, and
Chapter 2 Deals with the „Supply Chain Management System‟.
Further, there are three annexure:
Annexure A Reports relevant extracts from the Local Government: Municipal Finance Management Act No. 56 of 2003;
Annexure B Outlines a Code of conduct for Supply Chain Management Practitioners and other Role Players, and
Annexure C (Untitled) which lists preference policy and preference points calculation for procurement.
This document is comprehensive and adequate for its purpose. Staff at Camdeboo Municipality has mentioned that a review of this document is imminent.
4.12.2 Camdeboo’s Preference Points System
Proudly South African
In section 32 of the Procurement Policy Documents it is noted that:
158 „The Municipality supports the Proudly S A Campaign to the extent that, all things being equal, preference is given to procuring local goods and sources from firstly – suppliers and businesses within the municipality; secondly – suppliers and businesses within the relevant District Council; and thirdly – suppliers and businesses within the Republic‟.
Nowhere is „all things being equal‟ explained, and plainly such a phrase is fertile ground for litigation. Thankfully these issues are taken up in more detail in:
Preference Points
While this document is untitled and refers to „Regulations 3.1 and 5.1‟ in an unspecified document, it sets out a preference points system that, while not clearly explained, suggests the following points system:
PREFERENCE POINTS FINANCIAL HDI Equity PDI Super- Joint Local Small TOTAL POINTS vising Staff Venture Business Business POINTS Procurement disposals
The above suggests that local business will get 20 preference points in contracts less than R30, 000; 15 on contracts from R30,000-R480, 000, and only 5 in contracts above R480, 000.
HDI Equity turns on (60%) PDI Equity; 35% Women‟s Equity and 5% Disabled persons equity.
Conclusions
It is felt that the calculations in Annexure C should be more clearly spelled out, and that Council should apply its mind clearly to these issues, particularly the weightings given to local and HDI businesses, and pass a comprehensive and clear point system in this regard.
Further, nowhere in the Supply Chain Management Policy is reference made to any system of support for SMMEs, in particular HDI SMMEs, with regard to filling out tenders, business support of any kind, and systems to ensure speedy payment of creditors. It is felt that these merit consideration in the Supply Chain Management Policy of the Municipality, and the possible employment of an SMME officer, to support the LED officer and carry out the abovementioned tasks, should be considered.
4.13 One-Stop Business Agency
4.13.1 Development Agencies
Development Agencies have begun in a large number of Eastern Cape towns. They are often municipal entities, but with private sector directors and advisers. Often funding from the Industrial Development Corporation (IDC) has been obtained. IDC and private sector
159 involvement have often helped these Development Agencies to become successful and active players in developing their local economies. The IDC‟s dedicated staffers in this regard are:
Mr Stuart Bartlett (phone 082-4917497) and Ms Loshnee Naidoo (phone 083-2731155, e-mail [email protected])
While a previous application from the CM to the IDC for support in the establishment of a Development Agency failed, contact with Ms Naidoo has indicated that a reappraisal would be considered, but that no outcome could be guaranteed.
IDC documentation provided by Ms Naidoo includes useful documents on
Pre-establishment Milestones,
Pre-establishment Budgets,
Pre-establishment Phase Application Template,
General Expenses – Line Item Description.
The Development Agency approach has the advantage of bringing a new player into Camdeboo‟s Local Economic Development; bringing the local business community into an organisation designed around LED; and providing other financial sources (IDC, etc.) to multiply up the CM contribution to LED. Thought could be given to establishing separate premises and seconding the Municipal LED officer, and the proposed SMME specialist, to this organisation; as well as housing the Publicity Tourism Office in this new Development Agency.
4.13.2 Comment
It is recommended that:
the CM approaches the IDC re funding to set up a Camdeboo Development Agency,
That a suitable private sector benefactor be approached to donate suitable premises for this organisation,
That CM considers seconding their LED officer and the proposed SMME officer to this organisation,
That the CM approaches the Tourism Office to suggest its future location under the umbrella of the proposed Development Agency.
That CM negotiates with the backers of the proposed Karoo Development Foundation, to house this also in Graaff-Reinet in the proposed Camdeboo Development Agency premises.
4.14 Zoning Scheme
4.14.1 The Status Quo
The Zoning Scheme and its regulations for the Camdeboo Municipality appear not to be consolidated: we have copies of:
160
Zoning Scheme Regulations for Graaff-Reinet, compiled by Steyn Larsen Town Planners and Architects in July 2001,
Land Use Management Manual for Aberdeen, compiled by Urban Dynamics Town and Regional Planners in February 2000,
Town Planning Conditions for the town Planning scheme of Umasizakhe (1998),
Nieu-Bethesda is guided by the Land Use Planning Ordinance of 1985. (LUPA of 1985).
All of these appear to be in use in their envisaged area of jurisdiction.
4.14.2 Comment
The Graaff-Reinet Zoning Scheme is comprehensive in its section on „Definitions‟ – 114 terms are defined in detail. Further, the Graaff-Reinet Zoning Scheme is comprehensive in terms of Planning Zones: 29 are enumerated (2 agricultural; 6 Residential; 3 Business; 3 Industrial; 3 Institutional; 2 Resort; 3 Open Space; 3 Transport; and one each for Authority Zone; Special Zone; Conservation Zone and Undetermined Zone).
The Umasizakhe Planning Conditions are not as comprehensive, but its tabular presentation of Primary Uses and Consent Uses is very helpful and easy to follow.
The Aberdeen document is a different document – it is aimed at explaining the procedures set out in the Land Use Planning Ordinance and the Section 8 Zoning Scheme Regulations. It has a very useful graphic on the six steps required in the Procedure for Changing Land Use.
Plainly, a consolidated Camdeboo Municipal Zoning Scheme should be workshopped, agreed, passed through Council and Promulgated. With regard to Local Economic Development, this Zoning Scheme must be very clear and understandable with regard:
Primary Uses in each Zoning Scheme Area,
Consent Uses likewise,
Systems and procedures to approve Departures and Subdivision by Council,
Provide a map clearly outlining land use zonings,
Rules for the Control of Building Construction in the Historical Centre of Graaff-Reinet, and in sensitive areas in Aberdeen, Nieu-Bethesda and Umasizakhe (see next section).
While the Organogram on Page 13 envisages the appointment of a Town Planner, this post is vacant. Without effective management and control, a zoning scheme will be ineffective – this appointment is vital. Further debate is necessary as to whether this appointment ideally is situated in the Engineering Services and Infrastructure Division.
161 4.15 Heritage Protection Policies
4.15.1 Status Quo
Interviews with Mayor Japhta; Cllr Knott-Craig; Dr Roy Stauth and many other LED stakeholders have respectively emphasised the fundamental importance of the architectural heritage of Graaff-Reinet in supporting its rapidly growing tourism industry. This is taken as a given – this heritage has to be protected vigorously and effectively, and thus protection must extend to Aberdeen and Nieu-Bethesda as well.
Only the Graaff-Reinet Zoning Scheme makes reference to Conservation issues.
This Zoning Scheme contains on a „Conservation Zone‟ guidelines
Despite the fact that a specific use zoning is attached, according to these scheme regulations, to an erf, group of erven or erven in a specific area, or it such a specific zoning has not been determined, the council can declare such an erf, group of erven or area as a special zone if it should be on the opinion that, for particular reasons, any form of development on that erf or group of erven in that locality should be specially controlled, irrespective of the normal development restrictions prescribed elsewhere in this regulations.
For the application of regulation 3.28.1, the historical centre of Graaff-Reinet, as shown on the attached map as Annexure A, is considered a special area in order to protect and conserve the historical and architectural character of the old town, and the council may prescribe, as a restriction of the normal development rules, extraordinary requirements or conditions as far as it concerns:
(a) The street elevation of the buildings, (b) The maintenance of the buildings, (c) The showing of advertisements and erection of advertising boards or signs, (d) The provision of parking facilities on sites, (e) The height of buildings, (f) Coverage, (g) Floor factor, (h) Building lines, (i) Any other aspects deemed necessary by the Council in a particular case.
The special rules pertaining to the control over building construction in the historical centre, as set out in Annexure A, shall be prescribed as a general indication of the aims of the Council.
Conservation is as much an issue in the natural environment as it is in the built environment.
While the Zoning Scheme documents are silent in this regard, the following text is found in the Camdeboo Spatial Development Framework, as pertaining to „Policy for General Environmental Conservation‟ (Pg 60).
Apply the „precautionary‟ principles in cases where uncertainty surrounds the full impact of proposed development. This implies that if the impact of a proposed development is not fully known and cannot be established, the development should be put on hold until further clarity and decisions have been obtained from the relevant Department of Environmental Affairs.
162 Strictly enforce the environmental conservation regulations with respect to listed activities and EIA procedures.
Habitats and/or natural features deemed to be of importance or significant should be protected from in appropriate development; conserved and enhanced.
As a general rule, development should make a positive contribution towards environmental conservation and management. Development in sensitive areas should therefore only be granted on the basis that environmental management and conservation are promoted and enhanced for the long term sustainability of the area. This applies to urban and rural developments.
The STEP guidelines and procedures should be consulted and applied to all development proposals and initiatives.
4.15.2 Comments
In 2006 Professor Gavin McLachlan of the Nelson Mandela Metropolitan University‟s Department of Architecture quoted R8,000 to do a Heritage Survey of Graaff-Reinet. This has not yet been taken up. Our recommendation is to request Professor McLachlan to broaden the area of his study to all of Camdeboo Municipality, and to recommend on all historically valuable areas and buildings within the Municipality.
Further, a respected ecologist should be commissioned to review all habitats/natural environments in terms of the STEP Guidelines (currently: not vulnerable area; vulnerable area; endangered area; critically endangered area; network area; process area; municipal services/nature reserves/natural parks; impacted areas). Possibly the services of Mr Burdett of the Camdeboo National Park could be used in this regard, and suitable policy framed in this regard also.
Thereafter the Camdeboo Municipality should enact, with its Zoning Scheme, Conservation Zone regulations as envisaged above, and as, (probably) spelled out in annexure A of the present Graaff-Reinet Zoning Scheme, to cover all heritage areas and buildings in Camdeboo, as well as natural environments of value.
Attached to the Town Planning Department of the Municipality should be an office of a Municipal Heritage Officer, tasked to police effectively this legislation. Possibly this officer would also support the Town Planner in other work. Central to the recent restoration drive in the Graaff-Reinet built environment was the work of the Red Reinet Stigting. Plainly this type of effort should be continued, and spread to Aberdeen and Nieu-Bethesda. The Camdeboo Municipality should ideally enlist the help and resources of Mr Johan Rupert in this regard.
Concern was expressed by Dr Stauth, and repeated by others, about the large numbers of trucks that journey though Graaff-Reinet on a daily basis. Levels of noise pollution, and physical damage to pavement, roads and historic buildings were often mentioned.
The Camdeboo Municipality should commission a Traffic Impact Assessment in this regard, and request solutions re possible re-routing of large trucks, etc., from the commissioned traffic engineers.
163 4.16 Availability of Land
Land is fundamental to economic development. Should appropriately zoned and serviced land not be available, industrial and commercial development will be slow.
LED stakeholders repeatedly noted in interviews that there was a shortage of industrial land in Graaff-Reinet.
Housing land appears to be adequately available, however. The Camdeboo SDF suggests that the following is available:
Graaff-Reinet 481 ha, adequate for 10,488 housing units
Aberdeen 87 ha, adequate for 1,750 housing units
Nieu-Bethesda 19.3 ha, adequate for 380 housing units
TOTAL 587.3 ha, adequate for 12,618 HOUSING UNITS.
Whether some of this land is required for industrial, commercial or institutional uses, and whether it is in municipal hands, is not certain.
Fundamental to land availability is also land ownership – land in municipal ownership can be speedily made available, whereas land in private hands is another matter entirely.
Regretfully, there is no consolidated plan outlining land ownership and zoning. This is fundamentally required. The Town Planning firm who did the Camdeboo Spatial Development Framework suggests that available documentation, compiled with information recently sourced by the Municipality with regards to Property Valuations and other documentation could be combined to yield a comprehensive plan of Camdeboo, re land ownership and land zoning.
Comment
A comprehensive land plan of Camdeboo is required, which outlines ownership of the land, present zoning, and erf sizes. This should be commissioned as soon as possible. Thereafter a plan for the release of land for industrial and other use must be created.
At this stage, possible Brownfields projects (the old Power Station and Tennis Courts in Graaff- Reinet, for example) be identified and put out on proposal calls.
4.17 The Camdeboo Municipality and Sustainability
With water availability being an acknowledged critical factor in future economic growth, it is vital that the effluent from the water and sewerage system be re-used effectively. Likewise, solid waste sorting and recycling, alternate electricity sources, etc., all require assessment
4.17.1 Water and Sanitation
An adequate supply of potable drinking water is not only a necessity for human habitation, it is also a necessity for successful agriculture, commerce, industry and almost all other forms of human economic activity.
164 Camdeboo Municipality is the water services authority in the Camdeboo municipal area. It is the supplier of both surface water and groundwater supplies, and it is responsible for supplying potable water to the consumer by way of a water reticulation system, and to ensure that an adequate volume of water is supplied to the consumer at an affordable price. Further, the municipality is the bulk wastewater service provider, where its responsibility is to provide an adequate sanitation system that will transport sewerage from the consumer to the sewerage treatment works, where it has to be treated and discharged. No other authority has jurisdiction within the Camdeboo Municipal area.
4.17.2 Water and Sanitation Reticulation
In September 2005 the Joint Venture of Engineering Advice and Services cc, in conjunction with Maisha Development Engineers, did a situational analysis of the delivery of water and sanitation services in the region of the Cacadu District Municipality. This report divided Level of Supply (LOS) categories as follows: i. For Water
L.O.S. CATEGORY WATER 1 Nothing 2 Standpipe > 200m 3 Standpipe < 200m 4 Individual connection un-metered 5 Individual connection metered 6 Yard tank 7 Others ii. For Sanitation
L.O.S. CATEGORY SANITATION 1 Nothing 2 Pit latrine 3 VIP 4 Bucket 5 Conservancy tank 6 Septic tank 7 Small bore sewer system 8 Full water borne sewer system 9 Other This report notes the following L.O.S. for water reticulation in the Camdeboo Municipal area.
L.O.S. Camdeboo Municipality 1 Nothing 0 2 Standpipe > 200m 0 3 Standpipe < 200m 50 4 Industrial Connection Unmetered 0 5 Industrial Connection Metered 10,341 6 Yard Tanks 0 7 Other 0
All of the erven in Camdeboo are thus above RDP level for water supply. With regards sanitation the following L.O.S. were noted in the Camdeboo Municipal area.
L.O.S. Camdeboo Municipality 1 Nothing 0 2 Pit Latrine 217 3 VIP 0 4 Bucket 53
165 5 Conservancy Tank 165 6 Septic Tank 1,015 7 Small bore sewer system 725 8 Full waterborne sewer system 8,216 9 Other 0
Only the 217 Pit Latrines were seen as being below RDP level (2, 08% of all connections). Further, the 53 bucket sanitation connections are scheduled for eradication (0, 51% of units). (Subsequently these have been decreased to only 7 in Geluksdal)
This report then estimated the costs to upgrade the reticulation, and back-up bulk services to the service levels desired by the Camdeboo Municipality. This worked out to be:
Table 53: Costs to Upgrade Reticulation
Cost to upgrade Camdeboo Municipality Water Reticulation R36,000 Sanitation Reticulation R7,913,500 Bulk Storage Reservoir R3,085,672 Waste Water Treatment Works R2,787,682 Water Treatment Works R614,933 Governing Bulk 0 Water Supply Source R2,621,847 Total Upgrade Costs (September 2005) R16,319,384
In all of the above, the Camdeboo Municipality is in a good to very good situation compared to the other municipalities falling within the Cacadu District Municipality.
The above costs for those municipalities are:
Table 54: Costs for other Municipalities
Total Cost to Upgrade Ndlambe R90.1 mil Makana R89.4 Kouga R89 Sundays River R81.3 Kou Kamma R57.2 Baviaans R44.4 Blue Crane R26.7 Ikwezi R16.9 Camdeboo R16.3 mil
4.17.3 Maintenance of the Water and Sanitation Asset Base
A recent Section 78(1) assessment of the Internal Service Delivery Mechanisms (Phase 1) of the Camdeboo Municipality‟s Water Services, by Africon Engineers and ODA Consortium, suggests that significant problems with regard the maintenance of the Camdeboo water system are building up. This report says, inter alia:
Camdeboo’s water services asset base’s present-day value is estimated at R146,763,200 and described as in poor condition. The estimated rehabilitation backlog is R50 million. Given low maintenance expenditure levels on the operating budget it can be expected that the maintenance backlog will progressively increase over time. This asset profile points to severe sustainability problems that Camdeboo cannot maintain its existing service base without additional subsidisation.
166 The 9 Cacadu municipalities had the following estimated cost of rehabilitation of the water network:
Baviaans R 4.3 mil Blue Crane R 5.1 mil Makana R 4.2 mil Kou-Kamma R 2.5 mil Kouga R13.8 mil Ikwezi R 2.8 mil Sundays River R 4.9 mil Ndlambe R15.2 mil Camdeboo R50 mil
This report moves to the following conclusions:
From analysis of available information it is clear that Camdeboo‟s Water Services are experiencing financial stress that is translating into a very unhealthy pattern of under- investment in the maintenance of the system.
Modelling indicates that the service could descend into an operational deficit, even if no additional capital loans are incurred and maintenance expenditure remains conservative. It is therefore no certainty that Camdeboo will be able to meet its IDP and WSP objectives and to remain a viable service provider. The risk of service failure thus appears to be very high.
4.17.4 Bulk Water Provision
Graaff-Reinet
Graaff-Reinet Water Demand
In 2004 the consulting engineers, Ninham Shand, conducted a study for the Department of Water Affairs and Forestry around, inter alia, the present and future situation with regard to bulk water provision to Graaff-Reinet.
At the time, Graaff-Reinet‟s current peak annual water demand was 11,714m³/d. Projecting forward, Shand believed this would rise to 14,159m³/d (2015) and 15,883m³/d (2025). This peak demand was calculated by multiplying the projected average daily demand by 1.5.
Supply was considered from the following sources:
Present Graaff-Reinet Water Sources
Nqweba Dam
This dam, on completion in 1924, had a capacity of 80Mm³. Silting has resulted in its capacity dropping to 70% of this amount, or 47.2Mm³, in 1998.
Shand projects that, with further silting, this capacity will drop to 43.9Mm³ in 2025, and 41.6Mm³ in 2050 (Most Likely Scenario). They suggest also a Worst Case Scenario, which is 40,2Mm³ in 2025, and 37,9Mm³ in 2050. This leads to a reduced yield from this dam which would be:
2005: 11,575m³/d 2015: 8,985m³/d
167 2025: 6,575m³/d (worst case scenario)
Emergency (Northern) Well Field
This field was in full-time use when Shand wrote their report in 2004 – ten production boreholes yielded 5,000m³/d. Shand noted:
The infrastructure at the well field is old and in need of rehabilitation. The capacity of the well field has reduced significantly over the last approximately 15 years due to collapsed boreholes and old pumps. These are no flow meters or level recorders at any borehole.
Mimosadale Well Field (Moordenaars Acquifer)
This field was not in use in 2004. It delivered a yield of 2,300m³/d, but:
The water has a strong sulphurous taste and smell and can, in general, be considered as poor quality water.
Graaff-Reinet Water: Supply and Demand
Shand notes that, based on the above, the 2004 water yield was as follows:
Nqweba dam 11,575 m³/d Emergency Well Field 5,000 m³/d Mimosadam Well Field 2,300 m³/d Total yield 18,875 m³/d
This suggests that supply is adequate for peak demand (max, 15,883m³/d in 2025). While this looks adequate, Shand concludes:
However, the worst case scenario will be during drought conditions when the Nqweba Dam is either empty or the dam supply level is such that the available water is too saline or brak to be sued for domestic consumption. Under these circumstances the estimated shortfall would be approximately 4,400m³/d which must be supplied by an augmentation scheme as there will be no supply from the dam, and the town would rely on borehole water only.
Augmentation Schemes for Graaff-Reinet (only most significant noted here)
Increase in Capacity of Emergency Well Field
Shand believe this field could be extended by a further 2,700m³/d.
This would cost: Capital Costs R14m Annual Operational Costs R 3m Unit Cost of Water R3.00/m³
(The 2004 selling price of water in Graaff-Reinet varied from R1.51m³ to R3.85m³)
168 Increase in Capacity of Mimosadale Well Field (Moordenaars Aquifer)
Shand believes that this field could be extended by a further 2,635 m³/d. This would cost: Capital Costs R14m Annual Operational Costs R 3m Unit Cost of Water R3.00/m³
Swart Aquifer
Shand believes that this aquifer could yield 8650 m³/d.
This would cost: Capital Costs R 16m Annual Operational Costs R 3.8m Unit Cost of Water R1.20/m³
Dredging the Nqweba Dam
This would involve dredging the dam to reduce the silt volume, and to increase the storage capacity of the dam. This has not been priced.
Rainwater Tanks
Shand believe that, should a 10,000l tank or two 5,000l tanks be fitted to each home in Graaff-Reinet (2004 costs: R10,000 including piping per unit), this could result in all domestic properties becoming self-sufficient for drinking water.
Channel from Somerset East
It is possible to bring Orange River water from Somerset East to Graaff-Reinet by channel or tunnels. This scheme is at present being further investigated by Shand, on a commission from the Department of Water Affairs and Forestry.
Aberdeen and Nieu-Bethesda
The 2005 study conducted by Engineering Advice and Services, cc, in conjunction with Maisha Development Engineers, including the following table for underground water for Aberdeen and Nieu-Bethesda.
This table suggests that both Aberdeen and Nieu-Bethesda have adequate borehole water sources, of Water Quality 1.
169 Table 55: Water sources for Aberdeen and Nieu-Bethesda
COMMENT (INFO
NAMES DERIVED FROM
WSDP REPORTS)
VELOPED(ML/a)
QUARTEMARYCATCHMENT GEOLOGY GENERALWATER QUALITY CLASS WATERSUPPLY AREA EXPLOITATIONPOT (mm) SALINITYFACTOR (% BOREHOLESWITH TDS OF 2400mg//l) < CALCULATEDPOTABLE GROUNDWATER (ML/a) CSIRGROUNDWATER USE(ML/a) BALANCEOF POTABLE GROUNDWATER (ML/a) DESCRIPTIONOF GROUNDWATERSOURCE CURRENT GROUNDWATER DE INDIVIDUALDEVELOPED GW SOURCES(ml/A)
GROUNDWATER DEVELOPED(ML/a) ABER- N1 ADELAIDE 1 506 3.64 1840CALCULATED 0.93 1711 231 1480 Town 260 56 Water supply comes DEEN 4A fm from 10 x BH‟s in and around town. Safe N1 ADELAIDE 1 389 7.20 2804 0.93 2608 48 2562 Lotus 112 yield and extent of 4B fm ville aquifer not known. N1 ADELAIDE 1 657 7.84 5147 0.93 4787 0 4787 Themba- 112 Good quality spring 4C fm lesizwe water derived from spring associated with a dolomite sheet in the west. This water is used Nieu- N1 ADELAIDE 1 739 6.91 5104 0.93 4747 0 4747 2 x BH‟s 12 12 Safe yield and Bethesda 2A fm in abstraction from Hudson BH‟s not known. street Spring supplies some leading water
Comments:
Concern exists with regard to the backlogs in maintenance in the water and sanitation systems. Here a task team of Councillors and Officials should work with the engineers who have done the various reports in this regard, as well as the MIG Fund, DWAF and Cacadu, and any other sources, to put a comprehensive plan into place, and to action this plan.
Likewise, concern is expressed re long-term bulk water provision for, particularly, Graaff- Reinet. In this regard we recommend as above: a task team of Councillors and Officials should work with the engineers who have done the various reports in this regard, as well as the MIG fund, DWAF and Cacadu, and any other sources, to put a comprehensive plan into place, and to action this plan.
As there is a concern about the long-term bulk water provision for the urban area of Graaff-Reinet, it is very unlikely that water from any of the sources will become available for non-urban (essentially agricultural) use until the bulk-water provision issue is resolved. Agricultural planning should accept this as a reality.
4.18 Camdeboo Municipality – Assessment of Other Municipal Infrastructure
As an Appendix to the March 2005 Tourism Sector Plan commissioned by the Camdeboo Municipality, the engineering consultancy Stewart Scott International undertook to provide, and did provide, an Infrastructure Assessment Report of the area.
This report covered the following areas:
Utility Services
Water Supply Sanitation Electricity
170 Telecommunications Transportation
Road Links Air and Rail Public transport Car Rental and Taxis Fuel and Service
Roads and Access
General Benefits of Good Road Access Maintenance Management Current Road Access Problems Pedestrians and Cyclists Sign Posting
Emergency Services
Police Fire and Traffic Departments Medical Care and Hospitals Ambulance Services
General Facilities
Parking Facilities Ablution Facilities and Picnic Areas Lighting and Amenities Security and Amenities
Generally, the conclusions of this Assessment Report were positive, and the following are its recommendations on shortcomings and issues that need to be improved. We include them as one of our recommendations also:
Generally, the municipality has sound basic infrastructure. The Integrated Development Plan has certainly identified the shortcomings in terms of capital investment and maintenance. Funding for the implementation of projects may be a limiting factor.
Assessment of other Municipal Infrastructure
To summarise the findings of the infrastructure assessment for the tourism sector plan, the following gaps were identified.
Augmentation of the bulk water supply to Graaff-Reinet is required in the near future as the demand level closes in on the supply level.
Expansion of the cellular network coverage in the Camdeboo area is required, especially on the Nieu-Bethesda access roads.
Camdeboo Municipality is generally well served by national, provincial and district roads. The provincial and district roads, particularly the unsurfaced roads, are however in need of improved maintenance and some tourist attractions do not have a good road access (Fonteinbos particularly).
171 Roads in the towns are in need of maintenance. A road management system would enable prioritisation of maintenance and upgrading works and enable annual budgets to be calculated.
The airfield at Aberdeen requires maintenance and possible upgrading, should the demand arise.
Establishment of a bus terminus with associated facilities, possibly at the Graaff-Reinet station, would be highly beneficial.
Destination and tourist facility signage needs improvement and upgrading in certain instances.
Upgrading and improvement of the x-ray facilities at the Midland Hospital is required.
General public and tourist ablution facilities are urgently required in the towns and ablution facilities at the tourist attractions need to be cleaned and serviced on a regular basis.
There is a general lack of security at tourist amenities. Formalization of guarding services is urgently required.
4.19 Conclusions
The Camdeboo Municipality presents one of the strongest Balance Sheets of all Eastern Cape Municipalities. It is financially solvent – in fact strong – and shows signs of having been run financially conservatively over a long period. There are, however, three points of concern:
The CM has a relatively small total income, which constrains spending on important projects and LED capacity;
Backlogs exist in the provision of a number of municipal services, particularly housing. Rapid development of low income housing puts strain on all other municipal services;
Many key posts in the organogram require being speedily and suitably filled, or constraints on service delivery will occur as well as organisational malfunctions.
The CM IDP reveals concerns as to the municipality‟s commitment to LED, for this IDP reveals that only one LED staff member is on the organogram, and limited funding is made to only three LED projects. The excellent charts of projects, divided into funded and non- funded, should be expanded to include relevant private sector projects and community- based projects. GANTT Charts for each project should be provided for monitoring purposes. Nightclubs, pubs, bars, restaurants etc. are entitled to trade in liquor until 24h00, Monday to Saturday, as are Taverns and Shebeens.
Many persons interviewed in this project have suggested that this is too late. Does Council wish to have an item in this regard submitted for its consideration?
Once trading hours are finally established, all licensed premises should have a sign adjacent to their front door outlining the terms of trading, and occasional police inspections should be carried out.
172 The Points system whereby municipal tenders are awarded should be more clearly spelled out, where after the Council should apply its mind clearly to, particularly, the weightings given to local and HDI businesses, and agree on comprehensive and clear point system in this regard. The Supply Chain Management Policy should provide policy for support to SMME‟s, in particular HDI SMMEs, with regard to filling out of tenders, business support of any kind, and systems to ensure speedy payout of creditors. The possible employment of an SMME officer, to support the LED officer and carry out the abovementioned tasks, should be considered.
It is recommended that:
The CM approaches the IDC re funding to set up a Camdeboo Development Agency,
That a suitable private sector benefactor be approached to donate a suitable premise for this organisation,
That CM considers seconding their LED officer and the proposed SMME officer to this organisation,
That the CM approaches the Tourism Office with regard to placing it under the umbrella of the proposed Development Agency,
That CM negotiates with the backers of the proposed Karoo Development Foundation, to house this also in Graaff-Reinet in the proposed Camdeboo Development Agency premises.
A consolidated Camdeboo Municipal Zoning Scheme should be created.
With regard to Local Economic Development, this Zoning Scheme must be very clear and understandable with regard:
Primary uses in each Zoning Scheme Area,
Consent uses likewise,
Systems and procedures to approve Departures and Subdivision by Council,
Provide a map clearly outlining land use zonings,
Rules for the Control of Building Construction in the historical centre of Graaff-Reinet, and in sensitive areas in Aberdeen, Nieu-Bethesda and Umasizakhe (see next section).
While the Organogram on Page 13 envisages the appointment of a Town Planner, this post is vacant. Without effective management and control, a zoning scheme will be ineffective – this appointment is vital. Further debate is necessary as to whether this appointment ideally is situated in the Engineering Services and Infrastructure division.
In 2006 Professor Gavin McLachlan of the Nelson Mandela Metropolitan University‟s Department of Architecture quoted R8,000 to do a Heritage Survey of Graaff-Reinet. This has not yet been taken up. Our recommendation is to request Professor McLachlan to broaden the area of his study to all of Camdeboo Municipality, and to recommend on all historically valuable areas and buildings within the Municipality.
173 Further, a respected ecologist should be commissioned to review all habitats/natural environments in terms of the STEP Guidelines (currently: not vulnerable area; vulnerable area; endangered area; critically endangered area; network area; process area; municipal services/nature reserves/natural parks; impacted areas). Possibly the services of Mr Burdett of the Camdeboo National Park could be used in this regard, and suitable policy framed in this regard also.
Thereafter the Camdeboo Municipality should enact, with its Zoning Scheme, Conservation Zone regulations as envisaged in 8.1 above, and as, (probably) spelled out in annexure A of the present Graaff-Reinet Zoning Scheme, to cover all heritage areas and buildings in Camdeboo, as well as natural environments of value.
Attached to the Town Planning Department of the Municipality should be an office of a Municipal Heritage Officer, tasked to police effectively this legislation. Possibly this officer would also support the Town Planner in other work.
Central to the recent restoration drive in the Graaff-Reinet built environment was the work of the Red Reinet Stigting. This type of effort should be continued, and spread to Aberdeen and Nieu Bethesda. The Camdeboo Municipality should ideally enlist the help and resources of, Mr Johan Rupert in this regard.
Concern was expressed by Dr Stauth, and repeated by others, about the large numbers of trucks that journey though Graaff-Reinet on a daily basis. Levels of noise pollution, and physical damage to pavement, roads and historic buildings were often mentioned.
The Camdeboo Municipality should commission on Traffic Impact Assessment in this regard, and request solutions re possible re-routing of large trucks, etc., from the commissioned traffic engineers.
A comprehensive Land Plan for Camdeboo is required, which outlines ownership of the land, present zoning and erf sizes. This should be commissioned soonest. Thereafter a programme for releasing of land for industrial and other use must be created.
At this stage, possible Brownfields projects (the old Power Station and Tennis Courts in Graaff-Reinet, for example) is identified and considered for proposal calls.
Water and Sanitation Reticulation in Camdeboo appear to be of a very high level – the attainment of 100% RDP levels is accessible now.
Concern exists with regard to the backlogs in maintenance in the water and sanitation systems. Here a task team of Councillors and Officials should work with the engineers who have done the various reports in this regard, as well as the MIG Fund, DWAF and Cacadu, and any other sources, to put a comprehensive plan into place, and to action this plan.
Likewise, concern is expressed re long-term bulk water provision for, particularly, Graaff- Reinet. In this regard we recommend as above: a task team of Councillors and Officials should work with the engineers who have done the various reports in this regard, as well as the MIG fund, DWAF and Cacadu, and any other sources, to put a comprehensive plan into place, and to action this plan.
As there is a concern about the long-term bulk water provision for the urban area of Graaff- Reinet, it is very unlikely that water from any of the sources will become available for non- urban (essentially agricultural) use until the bulk-water provision issue is resolved. Agricultural planning should accept this as a reality.
174 CHAPER 5
LED Strategic Plan
5.1 Strategic Planning
Strategic planning is a process of defining strategy, or direction, and making decisions on allocating resources to pursue this strategy, including its capital and people. Strategic planning answers three key questions.
1. Where do you want to be? This entails your vision of the future, your status in the future, desired future state etc.
2. Where are you now? Your current status, the picture today, situational analysis etc.
3. How do you get there? Plan, actions strategies, priorities etc.
Simply put, strategic planning determines where an organization is going over the next year or more, how it's going to get there and how it'll know if it got there or not.
There are many approaches to strategic planning but all are based on the three key questions and have three essential elements:
Current Situation - evaluate the current situation and how it came about. Desired State - define goals and/or objectives (sometimes called ideal state) Plan - map a possible route to the goals/objectives from the current state.
The Desired state is articulated in the IDP vision, the LED vision and the notion of sustainability.
In order to determine where an organization is going, it needs to know exactly where it stands, then determine where it wants to go and how it will get there. The resulting document is called the strategic plan. Strategic planning is about allocating limited resources optimally for maximum effect towards the desired state (Vision). It is obvious that not all strengths and opportunities can be exploited or weaknesses and threats countered simultaneously. Strategic prioritization is therefore necessary.
5.2 The Current Situation - SWOT Analysis
5.2.1 SWOT Definition
The current situation is described and analyzed using a SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats). Identifying and defining opportunities and threats provide the means to harness the strengths and weaknesses towards fulfilling the vision.
SWOT analysis is a Strategic Planning tool to identify Strengths, Weaknesses, Opportunities, and Threats arising from the current situation (internal and external factors) affecting the current environment.
175
A SWOT analysis is the essential building block of the strategic planning process. A SWOT divides the situational analysis into four segments.
Strengths: attributes of the organization which are helpful to achieving the objective. Weaknesses: attributes of the organization which are harmful to achieving the objective. Opportunities: external conditions which are helpful to achieving the objective. Threats: external conditions which could do damage to the business's performance.
A SWOT is essential because subsequent steps in the process of planning are dependent on the SWOT to indicate issues that need to be addressed for achievement of the objectives.
Interactive workshops were held with all three communities of Camdeboo to support the data collection process. The data collection process involved:
. one-on-one interviews, reports, statistics, surveys, site visits, workshops etc
In the process of collecting data it became clear that each urban community had different issues and it therefore was essential to develop location specific SWOTs for each of the smaller urban areas.
176 Camdeboo SWOT focused mainly from the perspective of the Graaff-Reinet focus group. Aberdeen SWOTs and Nieu-Bethesda
This allows for the issues facing these smaller centres to be recognized without being overlooked, overwhelmed by the dominant centre, Graaff-Reinet.
5.2.2 Camdeboo SWOT
Strengths Opportunities
Established business nucleus. Graaff- Govt service centre, explore govt policy of Reinet has a core of businesses (retail, service provision locally, build on existing service and lesser extent manufacturing nucleus. Recycling of existing govt buildings. to build upon).
Service centre nucleus. Govt offices The gap in consumer demand supply, can be decentralizing to Graaff-Reinet e.g. filled e.g. the building of shopping mall to south education, police college etc. of horseshoe.
Historic heritage (physical and cultural) Redefine small urban centres, link into GR ties to Europe. economy e.g. NB arts centre small country village, Aberdeen game tourism. Oasis in the Karoo. Substantial number of B&Bs in support Truck stop can take advantage of the location of historic heritage. through traffic (east-west north-south).
Strong game farming and tourism Events festivals conferences, there is an industry. existing nucleus e.g. Harley Davidson Rally, International Mohair Summit, Karoo Development Conference and Trade Fair.
Transport focus, national east-west and Strategic location within a national park, north-south routes, meeting point branding advantage, opportunities for more (800,000 vehicles pa). integrated product development tourism.
Financial stability, strongest of small 2010 world cup, shortage of accommodation in Karroo town. PE, offers local opportunities with existing number of B&B‟s.
Infrastructure backlog small. Route Development, Gauteng - Mossel Bay.
Education system, good schools good Agri-tourism. matric pass rates (60% lowest).
177 Rich in fossils. New business e.g. call centres SA needs 2,500 only 200 exist.
Existing sports and recreation facilities Buy local. underutilized.
One-stop info and service centre (SEDA, ECDC, Municipal etc).
Fossil centre of South Africa.
South of Graaff-Reinet, land is available, currently needs zoning planning.
Establishment of bank branches outside horse shoe of Graaff - Reinet to service grant payments (10,000 grants) and facilitate other business.
Weakness Threats Little co-operation and integration Regional centralization in GR, threat to other between game and heritage tourism (no small urban centres. formal process to facilitate functional links).
Little integration or penetration of Water is a need for major infrastructure, capital heritage tourism into disadvantaged costs are beyond local control and capacity. areas (geographic and functional integration).
Retail consumer demand is not fully Migration for employment or educational fulfilled. Out of town shopping mainly PE purposes away to bigger centres e.g. PE. (financial leakage out of area).
Branding publicity, lack of overall co- Climate change and prolonged long-term ordination. droughts.
Organizational weakness, intra and inter Too many liquor outlets. sectors, private/public. No system for co-operation between sectors. e.g., Business chamber established how it could interact with municipality.
The understaffed Municipal organization Infrastructure service is nonexistent or too slow and its limited financial capacity with e.g. Eskom, Telkom (critical to start ups). small financial base (R55m pa) is a limiting factor in raising capital for major projects.
178 Land availability is restricted in Govt Projects, Lack of depth, focus on horseshoe, here heritage and consumer production not on support for marketing. business compete for the same space often in direct conflict.
Local capacity scarcity (limitations) National Spatial Development Framework across range of disciplines and in focuses development on the metros not small different stakeholder communities rural towns. particularly in disadvantaged communities etc is a block to entrance into the market.
Water shortage, tentative supply via Nqweba dam.
Maintenance of infrastructure is increasing the backlog and the need for skilled labour and necessary finances.
Shortage of industrial land, no industrial sites available.
Lack of co-ordinated and integrated public transport, 3 taxi association no synchronized routes timetables etc.
Limited tertiary education offered. MET courses limited.
Govt biggest employer, need to register PDIs to supply chain.
Lack of shopping facilities outside the Horseshoe.
ICT section missing, not well developed in Graaff-Reinet.
Communication from municipality to people / communities is weak.
Trucks, through traffic, parking in main road, fast food outlets.
Lack of depth of govt. projects, focus on production not on support for marketing.
SWOT Overview:
Graaff-Reinet is the centre of the economic and social life of the area. It is the dominant economic hub, it provides government, educational, health, cultural and recreational
179 facilities. It is also high profile, well known nationally and internationally for its historic heritage and accompanying tourism. This is both an advantage (strength and opportunity) and a potential disadvantage (threat to the smaller urban centres). The opportunity is there to build on an established nucleus, to create the thresholds necessary for further growth and development. In building Graaff- Reinet needs to address a number of issues (weaknesses) that could hamper development:
Institutional structures, capacity and systems integration (public and private),
infrastructure particularly water,
socio-economic issues and quality of life (introduction and integration into formal economy of disadvantaged excluded. Graaff-Reinet is an element of an economic system, it needs to understand these links (external beyond Camdeboo) and internal in building its socio-economic base.
5.2.3 Nieu-Bethesda SWOT
Strengths Opportunities Tourism, natural pristine Public transport to other centres (non- environment, draw card for particular existent). type of tourist (peaceful, safe).
Character quiet, individualistic. Broadband link in village and offer new opportunities e.g. adult education.
Projects, e.g. PPC support for owl makers, can be built upon.
Game farm existing nucleus, malaria free area, not well publicized, tourist potential.
Land ownership, stable existence of old title.
Weakness Threats Individualism incoherent Development uncoordinated indiscreet development of sense of community. threaten the balance.
Divide between sectors of the Drought, and agricultural base of village community too wide, not enough and area. integration.
Education levels and skills too low to Education system weakness, state of support development. school and level of teacher qualification. Housing shortage for incoming Water source underground, threat of people. contamination from development.
180 SWOT Overview:
Its greatest asset (advantage opportunity) is its unique rural rustic isolation, its physical environment, water availability and complementary rural/urban development. Its isolation and effort needed to access Nieu Bethesda are competitive advantages in a niche resident/tourist market.
Unchecked development could destroy this uniqueness yet growth is required. The major issues are socio economic (pro poor policies). Development needs to be sensitively managed.
5.2.4 Aberdeen SWOT
Strengths Opportunities Mohair centre offers opportunities. Municipal owned land.
Water availability unlike Graaff- Railway line existing infrastructure. Reinet oasis.
Tourism base of B&Bs. Gateway to the Eastern Cape.
National route but bypass weakens Tourism oasis. this strength.
Railway line exists to revive and build upon.
W Cape E Cape route (Klipplaat road).
Weakness Threats Employment shortage emigration of No academic institutions, young emigrate youth and skills. lost to town.
Local development work to outside Excessive alcohol usage. contractors.
Spend outside Aberdeen for daily consumer products.
Easy access to Graaff-Reinet discourages local entrepreneurship and business establishment.
Communication between municipality and community poor.
Land and industrial locations not of service to communities, SDF 2005. Lack of office space to attract government departments.
N9 by pass lost opportunities for
181 Aberdeen.
RDP houses being sold to outsiders to finance consumption.
Information, access, unreliable delivery of newspapers, limited access to internet.
SWOT Overview:
Aberdeen suffers from its proximity to Graaff-Reinet, most goods and services required locally are obtained in Graaff-Reinet. The convenience of access via the N9 and the N9‟s bypass of Aberdeen have disadvantaged the town.
For all its closeness to Graaff-Reinet, Aberdeen has gained little advantage (tourist links, relocation of government services, establishment of business etc.) This has compounded the socio-economic issues facing the Aberdeen community. It needs to use its assets (water, mohair, gateway status, historic heritage etc.) to build a viable economy and address socio economic issues.
5.3 Strategic Areas of Priority
5.3.1 Introduction: Vision and Strategic Priorities
The results of this study (SWOT) have culminated in defining a desired end state and a set of strategic priorities. As indicated before the study produced a myriad of insights about what is desirable for the future and many specific recommendations.
However, as a data base this wide-ranging set of information will be made available to the Camdeboo Municipality and its stakeholders for analysis and perusal as and when required. For the purposes of a manageable and implementable strategic plan the ideal is to have a „handful‟ of highly significant and strategic items that serve as key pillars and drivers of the plan to towards vision.
The study culminated in defining vision that links socio-economic development and economic development and four strategic priorities:
1. Balancing a Pro-growth and Pro-Poor Approach, 2. A functional institutional arrangement, 3. Selected sectors for focus, 4. Strategic resources key to development.
5.3.2 Vision: Socio-Economic Development
Nature and Function of a Vision Statement
A vision statement is a description of a future desired state conveyed in the present tense (as if it already exists). It is important that the desired state, the vision, informs the whole process from the start. It should have:
182 Clarity and lack of ambiguity, Vivid and clear picture, Description of a bright future, Memorable and engaging wording, Realistic aspirations, Alignment with organizational values and culture.
A vision statement outlines what you want to be. It concentrates on the future. It is a source of inspiration. It provides clear decision-making criteria. A vision statement is more specific in terms of both the future state and the time frame. Vision describes what will be achieved if the organization is successful.
The pursuit of a better future requires that one has an understanding and agreement of what that future should entail. Vision is very important. It provides one with a goal to pursue and to achieve. It helps one to overcome seemingly insurmountable obstacles, enables one to make choices and decision. It introduces a rationale in one‟s action. Any choice must be aligned, supported and synergized by a broader vision.
This study was based on the premise that the socio-economic needs and challenges provide opportunities for economic development. Differently stated, ‟quality of life is the key to successful local economic development.‟
Thus, this study makes a linkage between a broad range of contextual and enabling conditions that are essentially socio-economic in nature and economic development. The essence of the argument is that economic development and growth cannot be sustained if it occurs in an environment of poverty, low skills, and dependency on government grants, crime and insecurity.
In addition, economic development cannot be sustained if it coincides with the exploitation and degradation of natural resources and the environment. The implication of this line of thinking is that the notion of sustainability – the idea of a sustainable municipal district and sustainable towns and communities becomes a key concept in the vision, planning and action towards a better future for all.
Concept of Sustainability
Sustainable development – popularly defined as „Development that meets the needs of the present without compromising the ability of future generations to meet their own needs‟ (WCED, 1987:43) – is generally known to encompass at least three (sustainability) dimensions (NMBM, 2007). These are:
protection and conservation of natural resources (environmental sustainability); satisfying basic human needs (social sustainability); and facilitating economic growth and prosperity, as well as adequate employment opportunities for all (economic sustainability).
We live in a highly inequitable world, connected to rapidly eroding ecosystems, with looming threats connected to climate change, high oil prices and food insecurities. The challenge of sustainable development is to eradicate poverty and inequality, and in doing so to rebuild
183 eco-systems and natural resources. While human needs continue to expand, our eco- systems are finite and are being consistently eroded.
Sustainable towns are places where people want to live and work, now and in the future. They meet the diverse needs of existing and future residents, are sensitive to their environment, and contribute to a high quality of life. They are safe and inclusive, well planned, built and run, and offer equality of opportunity and good services for all. For towns to be sustainable, they must offer:
decent homes at prices people can afford, good public transport, schools, hospitals, accessible shops, work opportunities, a clean, safe environment, open public space where they can relax and interact, the ability to have a say on the way their neighborhood is run.
Sustainable towns embody the principles of sustainable development. They do this by: balancing and integrating the social, economic and environmental components of their community,
meeting the needs of existing and future generations, respecting the needs of other communities in the wider region or internationally to make their own communities sustainable.
The Camdeboo IDP Vision
The formulation of an LED vision must take cognisance of the existing Camdeboo IDP Vision: Camdeboo Municipality strives to ensure the socio-economic development and effective participation of all it’s inhabitants within an economically viable and sustainable environment, where equal opportunities are promoted. Poverty is eradicated and services provided at an affordable cost within a crime-free, healthy environment and well managed administration.
The IDP vision statement provides the initial point of departure for the development of a LED Vision statement. The terms of reference, the initiating interviews with a range of stakeholders provided strong indication on LED vision/mission. The interactive workshop with communities further clarified and the process of survey, data collection and investigation quantified qualified LED vision/mission.
184 Some key elements have emerged to base such a statement.
Elements Remarks Economic Sector focus: The strengths of the economy are its Tourism historic and natural. foundation. This includes historic heritage
Service centre status. (unique tie back to Holland, Europe). Agriculture: commercial and Large scale farming within that the potential emerging. links to small scale emerging farmers. Integration
Integrated tourist experience The functional and physical links between the (Africa/Europe). various urban areas need to be emphasised and planned as the means of how of things Regional geographic reach. need to be seen and done. The area needs to be one single system. Understand it is system.
Holistic includes established and emerging communities and markets.
Linking the urban centres as a whole as opposed to each being viewed as independent of each other Sustainability
Socio Economic needs must be The stakeholders and organisations need to be defined and focus of plans on identified and their input form part of planning meeting such needs, thus raising q of and implementation. l. Community needs and perceptions are Socio economic needs are an indicators of what needs to be done and for indication of economic opportunity. whom and why.
A Camdeboo LED Vision: To grow a vibrant economy that integrates people and places into one economy, that will attract investment, create employment and enhance the quality of life of our inhabitants.
5.3.3 Strategic Priority Area 1: Socio-Economic and Economic Development - Balancing Pro-Growth and Pro-Poor Approach
Overview and Summary Analysis
An important implication of the multi-faceted approach to a vision that was adopted in this study is the dual emphasis on economic growth and addressing socio-economic needs. Thus, instead of choosing between pro-growth and pro-poor, it is suggested that an inclusive and balanced approach be adopted in which there is room for the pursuit of prosperity as well as adequate employment opportunities for all. This is the essence of economic sustainability.
A sustainable community is therefore a community in which people‟s quality of life (QOL) takes precedence through meeting basic needs, economic growth and adequate
185 employment opportunities and facilitated in a manner that does not compromise the health and integrity of the natural environment.
It is essential that municipalities do not just conflate economic growth and poverty objectives. The Trickle-down of wealth is not sufficient, and specific activities are needed to promote pro-poor growth. Concentrating support for the poor on basic services will not create economic livelihoods; it will only continue to foster a dependency on the state.
Thus, it is important to address growth of the formal first economy, but also to target specifically the small-scale and informal second economy. Policy can explicitly target pro- poor development, either directly or indirectly, through the encouragement of appropriate market interventions
The Socio Economic Survey profiles the Camdeboo population in terms of demographics and socio economic status shows that the Camdeboo Municipality is characterised by a very young population. Almost half of the entire population is younger than 25 years; and of this group of people, nearly a third is younger than 15.
The unemployment rate for the Camdeboo Municipality as a whole – expressed as a percentage of all people between the ages of 18 and 65 – stands at 25.3%. This aggregated figure, however, hides certain extremes at a local level. Unemployment in such cases as illustrated in the Table below varies between 40% for Kekana Village and 3.1% for Graaff- Reinet (Town).
Education is a significant challenge in the Camdeboo Municipality. Less than 40% of all people older than 18 years have completed their primary school education (Grade 7), less than 30% have completed Matric (Grade 12) while only about 10% have some form of tertiary education.
The predominant monthly household income of about 65% of all households – varies between R801 and R3,500, with the largest share (37.6%) falling within the R801 – R1,500 income category. Only about 20% of all households in the Camdeboo Municipality earn more than R3,500 per month.
Government Grants play a significant role in assisting households in making a living, with 41% of all households in this context relying on an Old Age Pension and 28.1% on a Child Support Grant.
Material deprivation manifests at considerable levels in the Camdeboo Municipality, with 68.8% of all households without a motor vehicle in working order, more than 85% without a computer, 55% without an electrical washing machine; while 70.9% do not enjoy the luxury of a hot water geyser. Material deprivation also shows remarkable differences between the sub-places as evident in the table below.
The five biggest neighbourhood-based concerns, from a household head dissatisfaction point of view, include:
the quality of roads in the neighbourhood; pavements / sidewalks; the draining of storm water after rainfall events; the quality of police protection; and the safety of persons and their possessions.
186 Almost 20% of all households in the Camdeboo Municipality sometimes buy goods and/or services in another town, mainly because of a greater variety of goods and/or services there (27.2%) and the fact that such goods and/or services are relatively cheaper (24.9%). Extreme values in this case are however hidden by the last-mentioned aggregate value for the Camdeboo Municipality as a whole: Nieu-Bethesda (Town) 73.7%, Aberdeen (Town) 63.5%, Nieu-Bethesda (Pienaarsig) 60.7% and Graaff-Reinet (Town) 47.7% ~ all reflect relatively high percentages of people buying goods and/or services elsewhere.
The Survey defines both the need (physical) and the perception of service rendered. These needs are an indication and source of economic development opportunities. The provision of services and the level of the service are opportunities for poverty alleviation and local economic development.
The needs and levels of satisfaction have been identified by geographic area to the level of enumerator district. Generally housing provision has met demand, infrastructure is still lacking in some areas. However, the biggest issue is the maintenance of these services and skills and labour needed.
The Economic Analysis of the Camdeboo Municipality highlighted the economic soundness of the municipality‟s finances but showed that its small base restricted its infrastructure and service programme.
The Economic Analysis also showed that human resources in terms of numbers and skills are totally inadequate.
The Municipality also lacks institutional systems to promote LED and Pro-Poor Policies, although there are government departments and agencies operating each works in isolation of each other.
Recommended Strategies
Review of infrastructure programme based on the socio economic assessment and review of service provider profile of past projects,
Review of Supply Chain Management with emphasis of improving local service provider input. This to include points review, skills development and support programme,
SMME development and the establishment of an integrated support system e.g. SEDA, ECDC, Department of Social Welfare Development, Department of Agriculture, Cacadu,
Promotion of heritage tourism in disadvantaged areas with links support back into the historic heritage,
Allocation and development of land in the disadvantaged areas for the development of SMMEs.
5.3.4 Strategic Priority Area 2: Institutional Structures, Systems, HR Capacity and Functional LED Institutional Arrangements
Overview and Summary Analysis
The best LED plan in the world will fail if it is not supported by a willing and able organizational / institutional arrangement that serves as a means or a vehicle to guide and
187 implement the plan. For this purpose it is essential that the LED vision and plan be embraced by the leaders of the Camdeboo Municipality, business and civil society. Strategic decisions must be informed by quality data and information and supported by strategic planning and action. The key words are common goal, coherence, information, concerted action, effective leadership and management, broad buy-in, social capital. The Municipality needs the required organizational, human resources and technology to make this work.
The analysis of the Municipality, the business survey and the interviews with key stakeholders indicated a lack of institutions and systems to support and integrate the developed economy and those outside that economy. A business forum has only recently been established in Graaff-Reinet, the municipality has only nominal LED capacity, and other government departments and LED support agencies operate largely independently. The development of an LED Plan offers an opportunity for all stakeholders to operate within a defined system of support to increase reach and effectiveness.
A Camdeboo Local Economic Development Agency
There are a number of players in the LED functioning in Camdeboo. However, each operates on its own. The Development Agency approach has the advantage of bringing a new player into Camdeboo‟s Local Economic Development; bringing the local business community into an organisation designed around LED and providing other financial sources (IDC, etc.) to multiply up the Camdeboo Municipality contribution to LED.
Thought could be given to establishing separate premises and seconding the Municipal LED officer, and the proposed SMME specialist, to this organisation, as well as housing the Publicity Tourism Office in this new Development Agency. IDC and private sector involvement have often helped these Development Agencies to become successful and active players in developing their local economies.
Institutions need information, The Camdeboo process (Social and Economic and Business Surveys) provides valuable baseline data so vital to planning and policy formulation. The data collected include:
Demography (Gender, Age, Marital Status, Household Size, Race/Ethnicity, Highest Completed Education, Current Employment Status, Household Income, Household Ownership Status, Type of Housing).
Socio-economic status (including, household income and income sources; educational attainment; employment status, sector and history; skills; household support in „make a living‟; household needs; material deprivation; subjective projection of personal economic situation – past-present comparisons and future outlook).
LED specific information (including household expenditure patterns; geographical leakage of household expenditure, and goods and services as well as the monetary value involved; and local emigration patterns).
Health (HIV/AIDS and TB).
Dwellings and services (including subjective evaluation thereof).
Safety and security.
Subjective evaluation of neighborhood based goods/ services/ infrastructure.
188 Basic Social Capital components (including Groups and Networks; Trust; Co- operation, Information and Communication; Social Cohesion; and Empowerment and Political Action).
Its availability to both public and private sector is not only advantageous but invaluable. A system is necessary to make the data available and to keep it up to date.
In summary:
The municipality has a relatively small total income, which constrains spending on critical projects and on building up a LED capacity.
Backlogs exist in the provision of a number of municipal services, particularly housing. Rapid development of low income housing puts strain on all other municipal services.
Many senior posts in the organogram require to be speedily and suitably filled, or constraints on service delivery will occur as well as organisational malfunctions.
There is no integration or coordination between the various LED agents. In addition there are gaps in the LED agents represented in Camdeboo.
There is no comprehensive data system to inform LED planning and decision making.
Monitoring and Evaluation
Monitoring and evaluation (M&E) should be conducted on a regular basis as part of the implementation of an LED Plan. For each step of the LED process the objectives stated in the LED Plan provide opportunities for M&E. Moreover, the Quality of Life measurement conducted as part of this study produced baseline information and a framework to determine needs, opportunities, priorities, goals and performance measures for LED and IDP purposes that will provide a means of assessing the impact of both the LED and IDP plans on the community of Camdeboo and its sub-communities.
Monitoring means to “observe” or to “check performance”. It is a continuous process of collecting information to measure performance against the objectives of the Plan. Monitoring accepts the design of the strategy measuring progress and performance, and identifies successes or failures as early as possible.
Evaluation uses the information from monitoring to analyse the process, programmes and projects to determine if there are opportunities for changes to the strategy, programmes and projects. Evaluation, like monitoring, should promote learning. In the implementation stage of a LED strategy, evaluation is used to determine if the actions are meeting the strategic objectives, efficiently, effectively and/or at all.
M&E is not conducted to find fault and be critical, possibly having adverse effects on the project. Instead, M&E is a vehicle for accountability; but it is also a management tool for improving the process, programs and projects. M&E should be used to enhance learning and capacity building throughout all steps of the LED, to empower the participants to do a better job, and to help promote implementation partnerships as partners work through the process together. Done on a regular basis, M&E is a proactive management tool that provides timely, reliable and valid information for adjusting and modifying the LED. The M&E process should be a collaborative one with all those involved to promote learning and a better outcome.
189 By tracking performance, monitoring ensures that limited resources for economic development can be put to „“best use‟” and that negative or unintended impacts can be identified and minimised. Furthermore, effective monitoring and evaluation will sound the alarm when internal and external circumstances in the economic environment have changed, when key opportunities are being missed, or when implementation of a project is no longer effective. Adjustments in action plans, changes in priorities, or a complete refocusing of strategic objectives can then be made to ensure the economic development plan remains useful over time. Ongoing monitoring and evaluation should result in the gradual evolution and upgrading of the strategic plan, taking the local area closer and closer to its envisioned future.
Monitoring and Evaluation of Project Objectives is part of the task of the LED and IDP office; it is a management function that must be performed on a regular basis. Monitoring of the impact of the LED and IDP on the quality of life of the communities of CM will require expert assistance. It is advised that this is done at an interval of 18 months or 2 yrs.
The following steps will be required:
Step 1. LED and IDP officials must operationalise the monitoring or evaluation function of the LED plan by:
Using the Project Objectives
Workshopping the relevant information contained in the LED Plan, particularly the Business Survey and the Quality of Life information, with sub- communities to determine needs, priorities, goals and performance measures.
Step 2. Refining the objectives, actions, timelines and role-players in the LED Plan if required and translate this into a management plan.
Step 3. Drafting “Growth and Development” Plans for sub-communities based on decentralized workshops.
Step 4. Integrate the results from Steps 2. and 3. to determine when, where, how to monitor and evaluate.
Step 5. Develop a strategy to maintain business level as contained in the Business Survey.
Step 6. Determine the interval and frequency Quality of Life measurement and agree on a relationship with external expertise to assist.
Refer to sources like Local Economic Development //network for Africa (LEDNA) http://www.ledna.org/en/taxonomy/term/320.) and the World Bank (http://web.worldbank.org) and the local publication, The Practice of Social Research by Earl Babbie and Johann Mouton (2002) for guidance.
Implementation of IT Systems and Database
The following actions were successfully completed in the course of the project:
1. Assessment of the IT needs of the CM in relation to LED and IDP.
2. Recommendations to address needs and agreement on a package of hardware and
190 software to be procured.
3. Procurement through Development Partners.
4. Installation of hard and software - Appropriate hard and software was procured and installed before 31 March.
5. Down-load of data - Socio-Economic / Quality of Life data and Business data was installed on hardware systems in the course of the project.
Ongoing maintenance of database
1. Training of officials to work with data-base
2. 100 USB drives were branded with the Development Partners and Camdeboo Municipality logo / crest to be distributed to key stakeholders, potential investors, visitors etc.
3. Service, maintenance and IT consultancy – Should service and maintenance of hardware be required, this would be available from Anton Lamprecht (ThinkICT) of Development Partners. This decision would be entirely at the discretion of the Camdeboo Municipality.
4. Ongoing update of Business Data should be conducted by a dedicated CM official who must use the questionnaire that was used for the Business Survey in order to keep up with data to reflect the changing nature of business in the CM. The accumulated data can be analyzed on a regular basis (6 or 12 months) to identify patterns and trends.
5. Periodic update of Quality of Life Profiles as part of M&E. It is recommended that Development Partners or a similar agency be used to perform an objective and scientific measurement of the quality of life of the communities of the CM. This exercise can be conducted on an 18 months or 2 year interval and will serve as vital opportunity to evaluate the impact of the LED and IDP Plans and to generate modifications if and as required.
Recommended Strategies
Plan and establish an LED structure (Institutional Framework) in the Municipality that can monitor and review progress on the implementation of the LED Plan. This will include an HR component and a budget (internal).
Review LED projects and Actions including such LED components of non LED projects e.g. infrastructure projects or social programmes and develop and implement set of strategic LED projects or component projects and actions and interventions with the aim of job creation and economic integration that will encourage establishment and growth of business and industry in the Camdeboo and a climate (environment) conducive to doing business.
Review existing systems of communication between Municipality and Communities and formulate strategies and plans (programmes, systems) to improve lines of communication.
191 Review the municipal organogram with a view to improving effectiveness of the municipal function, Appoint a Town Planner, this post is vacant or as an interim measure town planning capacity. Without effective management and control, a zoning scheme will be ineffective – this appointment is vital.
Plan and establish an „external‟ LED structure (recommended structure Development Agency). In addition to basic staff, there should also be systems to bring into play other structures e.g. business forum, tourism organisation, community forums, heritage committee, government departments, support agencies etc. More specifically it is recommended that:
o That the CM approaches the IDC re funding to set up a Camdeboo Development Agency. Review the original application to the IDC for funding with the purpose of sourcing funds for the new structure.
o That a suitable private sector benefactor be approached to donate a suitable premise for this organization.
o That CM considers seconding their LED officer and the proposed SMME officer to this organization.
o That the CM approaches the Tourism Office with regard to placing it under the umbrella of the proposed Development Agency.
o That CM negotiates with the backers of the proposed Karoo Development Foundation, to house this also in Graaff-Reinet in the proposed Camdeboo Development Agency premises.
Develop and implement a programme and campaign to introduce the concept of integration (intra public and inter public private) with the aim of creating networks, linkages, referral & support systems, appropriate policies, by-laws, incentives, services and infrastructure which will stimulate and facilitate LED, attract investment, encourage establishment and growth of business and industry in the Camdeboo.
Formulate & establish applicable LED intelligence system that incorporates the socio- economic survey, the situational analysis (SWOT), the business survey (of this study) to provide a basis for data dissemination for decision making and planning and that is capable of updating the data.
Monitoring and evaluation (M&E) should be conducted on a regular basis as part of the implementation of an LED Plan.
LED and IDP officials must operationalise the monitoring or evaluation function of the LED plan by:
o Using the Project Objectives
o Workshopping the relevant information contained in the LED Plan, particularly the Business Survey and the Quality of Life information, with sub-communities to determine needs, priorities, goals and performance measures.
Service, maintenance and IT consultancy – Should service and maintenance of hardware be required, this would be available from Anton Lamprecht (ThinkICT) of Development Partners. This decision would be entirely at the discretion of the
192 Camdeboo Municipality.
Ongoing update of Business Data should be conducted by a dedicated CM official who must use the questionnaire that was used for the Business Survey in order to keep up with data to reflect the changing nature of business in the CM. The accumulated data can be analyzed on a regular basis (6 or 12 months) to identify patterns and trends.
Periodic update of Quality of Life Profiles as part of M&E. It is recommended that Development Partners or a similar agency be used to perform an objective and scientific measurement of the quality of life of the communities of the CM. This exercise can be conducted on an 18 months or 2 year interval and will serve as vital opportunity to evaluate the impact of the LED and IDP Plans and to generate modifications if and as required.
5.3.5 Strategic Priority Area 3: Sectors Deserving Focus
Overview and Summary Analysis
Whereas some LED plans tend to over-emphasize sectors, subsectors, projects and programmes the argument here is that within certain limitations and realistic parameters the choice of sector or subsector is an arbitrary matter. There may be a number of sector options for focus but the choice of focus is less important than making the choice and acting on the choice. It is important that choices be aligned and synergized with a coherent vision.
The Economic Analysis of the Camdeboo economy has identified four main sectors: tourism, agriculture, government services and retail. The two key sectors selected for focus are tourism and agriculture based on their spread throughout the Camdeboo and the range of aspects (subsectors) each sector (i.e. complexity).
Agriculture and Emerging Farmers
Low productivity is associated with a low rainfall area and arid areas are sparsely populated. In some areas of the Karoo , the population density is less than 1 or 2 person per km². This has contributed to their political insignificance of the region, as the various provincial and national governments have invariably given more attention to their more populous regions.
The economy has been largely based on extensive sheep and goat farming. During the last fifty years, extensive stock farms have been consolidated, and due to the economic climate, they have shed a great deal of labour. Many of these unemployed farm workers have drifted to the towns, to join the ranks of the urban unemployed. The recent advent of game farming has contributed to this trend of human displacement, although opportunities in agri-tourism and eco-tourism have created scope for new and more sophisticated types of employment.
The economic survey shows that commercial farming is in a transition phase, domestic to game. This trend is uneven, not universal throughout the region but quite discernable. It is in private hands with private capital driving it. On the other hand, through the Department of Agriculture there are projects and initiatives to develop small emerging farmers. These seem to be isolated from commercial farming. A major consideration in these small farming initiatives is the challenging environment, water is a major issue, and therefore crop farming is not an alternative.
193 Recommended Strategies
Current initiatives are few and uncoordinated. Opportunities abound in various industries (agave, mohair, ostriches) and need to be linked to govt policy to create a holistic and functional approach fostering an integrated relationship between projects and stakeholders .e.g. dept of agriculture acts on own, this approach yields knee jerk reactions, one off projects etc.
Analyses of the shift regarding the dynamic of domestic to game, understand its consequences (jobs, veld capacity, links to tourism etc) to see how it can be better promoted managed etc rather than laissez faire.
Technical skills training and life skills need to be part of project development.
Drawing on work done by Doreen Atkinson, Mark Ingle and Sue Taylor. Uniquely Karoo products are based on the provisioning (e.g. natural rangeland), regulating (carbon sequestration), cultural (spiritual, recreational) or supporting (evolution, soil formation) ecosystem services of the region. In addition to the traditional agricultural products (wool, mutton, mohair and ostrich), a range of new niche products are emerging. These include the "biblical fruits" (pomegranates, figs and olives), indigenous plants (hoodia, skeletium and aloe ferox), leather works, hydroponic vegetable production, agave plants (fibre, alcoholic drinks, and medicinal products), essential oils (such as lavender and wild rosemary), aquaculture (fish farming in Karoo dams), and goat's milk products.
Tourism and Heritage
Tourism forms a key industry in the Camdeboo. The tourism industry is growing in the Karoo. A recent survey in the Little Karoo identified open spaces and unspoiled scenery as a major attractant for urban and foreign tourists. This includes eco-tourism (spring flower tours, national parks, private conservation areas and game farms), small-town tourism (based on Victorian Karoo architecture), railway tourism, astro-tourism (star-gazing and telescopes), bicycle riding and hiking, hot-air ballooning, paleontology, horse shows, the new Richmond book town, and the most valuable commodity of all – the space, emptiness and solitude which is possible in the Karoo.
The two most prominent tourist attractions are the historic heritage particularly of Graaff- Reinet the national park and game farms. The historic heritage of Graaff-Reinet (4th oldest town to be established in SA) has created a unique urban environment and a competitive advantage that has led to a strong tourism industry. This has both a local and international market profile. Houses of architectural and aesthetic merit and a host of B&Bs complement the many historic buildings.
The weakness of this industry is that it is confined essentially to the horseshoe of Graaff- Reinet, is not linked to other areas of Graaff-Reinet and to Camdeboo‟s other two urban centres (Aberdeen, Nieu-Bethesda), it competes for space with local consumer retail stores, and national through traffic, and links with other aspects of tourism (national parks and game farming) are tenuous and informal.
In addition to these traditional tourist attractions there are number of potential growth areas for tourism. Several high-technology projects are being undertaken in the Karoo. This includes SALT (Southern African Large Telescope) in Sutherland, the SKA (Square Kilometre Array telescope) in Carnarvon, ultra light aircraft manufacture in Somerset East. Projects using ecosystems services include carbon sequestration projects in the southern
194 Karoo. In addition, solar and wind energy generation have massive potential in the Karoo? There are already plans afoot to initiate uranium mining near Beaufort West.
A major new possibility is that of „space tourism‟, which is due to be initiated by Virgin Galactic in New Mexico in 2009. The South African Karoo offers all the features required of spaceports. It is a remote area, far from population centers; it is located at fairly high altitude; it enjoys many sunny, cloudless days; and it provides many other tourism spin-offs (particularly astro-tourism, in the Carnarvon-Williston-Sutherland region). In addition, the skies in the Southern Hemisphere are particularly interesting for stargazers and potential space tourists. Such an investment in a spaceport will cost about R2 - 3 billion, and could be done by a public-private partnership.
In addition, a groundswell of creativity is the hallmark of new craft products in the Karoo. These include wire and glassware (from Jagersfontein), tobacco pipes (from Ladysmith), decoupage ostrich eggs (from Aberdeen), and cement statuettes (from Nieu-Bethesda).
Recommended Strategies Historic heritage needs to be protected and promoted.
The Nelson Mandela Metropolitan University‟s Department of Architecture (Professor Gavin McLachlan) proposed doing a Heritage Survey of Graaff-Reinet. This has not yet been taken up. It is recommended that the study be broadened to all of Camdeboo Municipality, and to recommend on all historically valuable areas and buildings within the Municipality.
The Camdeboo Municipality should enact, with its Zoning Scheme, Conservation Zone regulations to cover all heritage areas and buildings in Camdeboo, as well as natural environments of value.
Attached to the Town Planning Department of the Municipality should be an office of a Municipal Heritage Officer, tasked to police effectively this legislation. Possibly this officer would also support the Town Planner in other work.
Central to the recent restoration drive in the Graaff-Reinet built environment was the work of the Red Reinet Stigting. Plainly, this type of effort should be continued, and spread to Aberdeen and Nieu-Bethesda. The Camdeboo Municipality should ideally enlist the help and resources of private sector benefactors.
A study to be undertaken to asses and measure the effect the large numbers of trucks that journey though Graaff-Reinet on a daily basis. Levels of noise pollution, and physical damage to pavement, roads and historic buildings were often mentioned. The Camdeboo Municipality should commission on Traffic Impact Assessment in this regard and request solutions re possible re-routing of large trucks, etc., from the commissioned traffic engineers.
Historic heritage needs to be functionally linked to the other subsectors of the tourism economy, game parks and game farming. Need to feed off each other to grow the stay and the numbers.
Historic heritage needs to be feed into the disadvantaged areas to create a holistic and balanced tourist experience e.g. Royal Block development. Not linked in any meaningful way.
195 Historic heritage needs to bring geographic and functional link to other small towns e.g. Aberdeen (left largely unexploited).
Expand tourism from local to regional, link it into PE as a gate and start of tourist experience (rail opportunities).
Develop institutional systems to facilitate the development of functional and geographic links between the subsectors and the different area of Camdeboo.
Promote an integrated tourism brand but clearly define its subsectors e.g. Aberdeen Oasis.
Investigate an alternative truck route, need to divert heavy-duty vehicles away from historic core. Links back to above priority to safeguard the heart of the economy.
An ecologist should be commissioned to review all habitats/natural environments in terms of the STEP Guidelines (currently: not vulnerable area; vulnerable area; endangered area; critically endangered area; network area; process area; municipal services/nature reserves/natural parks; impacted areas).
5.3.6 Strategic Priority Area 4: Strategic Resources
Overview and Summary Analysis
Land and water together with the protection and promotion of the unique Karoo environment consistently emerged as specific resources that are of strategic significance in the Camdeboo area.
The Environment
The environment has extensively been fared for domestic purposes over many years. There is now a transition from domestic to game farming. The effect or impact of this transition needs to be understood in order formulate better policies for environmental safeguards. Therefore a respected ecologist should be commissioned to review all habitats/natural environments in terms of the STEP Guidelines (currently: not vulnerable area; vulnerable area; endangered area; critically endangered area; network area; process area; municipal services/nature reserves/natural parks; impacted areas). Possibly the services of Mr Burdett of the Camdeboo National Park could be used in this regard, and suitable policy framed in this regard also.
Recommendations
Further, a respected ecologist should be commissioned to review all habitats/natural environments in terms of the STEP Guidelines (currently: not vulnerable area; vulnerable area; endangered area; critically endangered area; network area; process area; municipal services/nature reserves/natural parks; impacted areas). Possibly the services of Mr Burdett of the Camdeboo National Park could be used in this regard, and suitable policy framed in this regard also.
Thereafter the Camdeboo Municipality should enact, with its Zoning Scheme, Conservation Zone regulations as envisaged as, (probably) spelled out in annexure A of the present Graaff Reinet Zoning Scheme, to cover all heritage areas and buildings in Camdeboo, as well as natural environments of value.
196 Water
Water is a scarce resource generally in the Camdeboo particularly in the urban areas. Graaff-Reinet the biggest and most vibrant of the three urban centers bears the greatest challenge. The economy of the rural areas is geared to the dryness of the Karoo.
Water is an issue throughout the Camdeboo, in some areas more than others. The urban areas, with greatest concentrations of people and development and therefore demands are at the centre of the water issue. Graaff-Reinet, the largest centre and the heart of the local economy, is the most affected. The town is supplied by Nqweba Dam, secured for the town by a private benefactor. The reliability of this supply is dependent on the elements. Droughts mean water shortages.
The worst case scenario will be during drought conditions when the Nqweba Dam is either empty or the dam supply level is such that the available water is too saline or brak to be used for domestic consumption. Under these circumstances, the estimated shortfall would be approximately 4,400m³/d, which must be supplied by an augmentation scheme as there will be no supply from the dam, and the town would rely on borehole water only.
Likewise, concern is expressed re long-term bulk water provision for, particularly, Graaff- Reinet. In this regard it is recommended that a task team of Councillors and Officials should work with the engineers who have done the various reports in this regard, as well as the MIG fund, DWAF and Cacadu, and any other sources, to put a comprehensive plan into place, and to action this plan.
There is a concern about the long-term bulk water provision for the urban area of Graaff- Reinet. Until the bulk-water provision is secured it is very unlikely that water from any of the sources will become available for non-urban uses e.g. urban agricultural, market and food gardens etc. The 2005 study, conducted by Engineering Advice and Services, for Aberdeen and Nieu-Bethesda, in conjunction with Maisha Development Engineers, includes the following table for underground water reserved for Aberdeen and Nieu-Bethesda. Both Aberdeen and Nieu-Bethesda have adequate borehole water sources, of Water Quality 1.
A further dynamic regarding water is the provision of infrastructure (Water and Sanitation Reticulation) which in Camdeboo appears to be of a very high level (the attainment of 100% RDP levels is accessible now) However, concern exists to the backlogs in maintenance of this the water and sanitation systems. Here a task team of Councillors and Officials should work with the engineers who have done the various reports in this regard, as well as the MIG Fund, DWAF and Cacadu, and any other sources, to put a comprehensive plan into place, and to action this plan.
Recommended Strategies
There are a number of Augmentation Schemes for Graaff-Reinet (only most significant noted here) which should form the core of the approach to water:
Increase in Capacity of Emergency Well Field: This field could be extended by a further 2700m³/d. (Capital Costs R14m, Annual Operational Costs R3m, Unit Cost of Water R3.00/m³.
Increase in Capacity of Mimosadale Well Field (Moordenaars Aquifer) this field could be extended by a further 2,635 m³/d. (Capital Costs, R14m, Annual Operational Costs R3m, Unit Cost of Water, R3.00/m³).
197 Swart Aquifer (this aquifer could yield 8,650 m³/d. - Capital Costs R16m, Annual Operational Costs R3,8m, Unit Cost of Water R1.20/m³).
Dredging the Nqweba Dam. This would involve dredging the dam to reduce the silt volume, and to increase the storage capacity of the dam. This has not been priced.
Rainwater Tanks. A 10,000l tank or two 5,000l tanks should be fitted to each home in Graaff-Reinet (2004 costs: R10,000 including piping per unit), this could result in all domestic properties becoming self-sufficient for drinking water.
Channel from Somerset East. It is possible to bring Orange River water from Somerset East to Graaff-Reinet by channel or tunnels. This scheme is at present being further investigated by Shand, on a commission from the Department of Water Affairs and Forestry.
Land
Land and its availability in the urban areas for business and industrial activities is limited. Such zoned land is confined to the „traditional areas of town‟. The „township areas‟ are markedly under-provided and therefore no opportunity to encourage development and stimulate local economies.
The Socio-Economic Survey and the Economic Analysis of the local economy (Graaff- Reinet) highlight the narrowness of the local economy and land availability for business shows a weakness. Most business land is confined to the Horseshoe. Its physical definition limits space as well as the dynamics heritage versus consumer retail. The disadvantaged areas have limited if any space for business expansion. Little provision has been made in these poorly developed areas for land availability (industrial/business) as stimulants for economic growth. This pattern is also the case in Aberdeen and to a much lesser extent in Nieu-Bethesda.
The local economic analysis shows that there is a trend of government departments being established in Graaff-Reinet. Some former government buildings have been recycled (teachers college now police college). There is a need to review this trend its impact on the historic heritage and the need to service the other towns and their economic need.
Recommended Strategies
Review the town plans and their zoning schemes to make provision for land outside the horseshoe (Graaff-Reinet) and in the disadvantaged areas. Similar process for Aberdeen.
Survey available buildings in Aberdeen as part of a Camdeboo approach to provincial government to site government offices in Aberdeen.
Reassess government‟s decentralization policy and promote the towns of Graaff- Reinet and Aberdeen. Land availability for such could be linked back into the retail consumer function.
A consolidated plan outlining land ownership and zoning is a fundamental requirement as part of the development of a forward looking land use plan (Spatial Development Framework for each urban area).
198 A comprehensive land plan of Camdeboo is required, which outlines ownership of the land, present zoning, and erf sizes. This should be commissioned soonest. Thereafter a plan for the release of land for industrial and other use must be created.
A consolidated Camdeboo Municipal Zoning Scheme should be workshopped, agreed, passed through Council and promulgated.
The Zoning Scheme if it is to be used as an instrument to facilitate development and therefore local economic development it must have simple, uncomplicated definitions and systems of assessments for:
o Primary Uses in each Zoning Scheme Area, o Consent Uses likewise, o Systems and procedures to approve Departures and Subdivision by Council, o Provide a map clearly outlining land use zonings, o Rules for the Control of Building Construction in the Historical Centre of Graaff-Reinet, and in sensitive areas in Aberdeen, Nieu-Bethesda and Umasizakhe.
4.3.7 Action Plan – Camdeboo LED Priorities, Objectives and Strategies
The attached A3 Insert presents a comprehensive summary of the area‟s strategic location and economic planning recommendations.
199 References:
AgriDIS: University of the Free State: Agriculture Potential of the Cacadu District Municipality. Supplied by Mr Greg Ducie, Cacadu District Municipality.
AgriDIS: University of the Free State: Angora Goal Management Information, July 2006
AgriDIS: University of the Free State: Business Plan for Knitting Mohair and Wool in the Cacadu District Municipality, July 2006.
AgriDIS, University of the Free State: Beef Management Information, July 2006.
AgriDIS: University of the Free State: Feasibility Study of Small Scale Merino Sheep Farming in the Cacadu District Municipality. Supplied by Mr Ducie, CDM
AgriDIS: University of the Free State: Agricultural Opportunities for Municipalities in the Cacadu District. Cacadu District Municipality, supplied by Mr Greg Ducie
Ashley, Caroline: Facilitating Pro-Poor Tourism in the Private Sector. ODI, London. October 2005.
Atkinson, D: The Arid Areas Socio-Economic Research Programme. CDS University of the Free State, 20 February 2007.
Atkinson, D and Marais, L : the Arid Areas Programme Volume 1: District Socio-Economic Profile and Development Plan; CDS, University of the Free State, November 2007.
Atkinson, D: An Analysis of the Aberdeen Business Sector: ISER, Rhodes University, 20 September 2006.
Boguslavsky, Dr Alexander of the CSIR: Personal Interview
Boguslavsky, Dr Alexander: Production and Beneficiation of Agave Americana Plant in the Great Karoo: Personal Communication
Camdeboo Trust: Camdeboo Satellite Aquacultue Project, Concept Note. Personal Correspondence from Ms Liesl de la Harpe
Camdeboo Municipality, Annual Financial Statements, 30 June 2006
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203 Personal Interview Candidates:
Interview with W. Anton Westerberg, EAS Engineers.
Interview with Mr Thomas Jachers, Ninham Shand
Personal Interview with Mr Deon Saayman, General Manager, Mohair South Africa.
Personal Interview with Mr Andre Strydom, General Manager, Cape Wools S.A.
Mr. Roy McLachlan, of Karoo Agave: Personal Interview
Mr Daniel “Patrys Smith”: Personal Interview
Mr Peter Burdett, Manager, Camdeboo National Park. Personal interview
Mr Johan Malherbe: Amatenda. Personal Interview
Dr Roy Stauth: Graaff-Reinet Tourism Office. Personal Interview
Mr Dawie Putter: Supaquick. Personal Interview
Ms Tertia Moos: GR Tourism Office. Personal Interview
Mr Buks Marais: Karoo Guesthouse. Personal Interview
Ms Christa Hahn. Personal Interview
Mr Johan Minnaar, Optician. Personal Interview
Mr Mark Fynney, The Wedge. Personal Interview
Mr David Chutu and Ms Lizelle Nutt: Department of Agriculture. Personal Interviews
Mr Roelof Goedhals: Mount Camdeboo Private Game Reserve. Personal Interview
Mr David McNaughton: Karoo Connections. Personal Interview
Mr Bernie Weyers, Architect: Personal Interview
Mr John Crankshaw, Midlands Board. Personal Interview
Mr Peter Whitlock, Architect. Personal Interview
Mr Dan Davis, Airport Manager. Personal Interview
Mr Hilary Graham: Aberdeen Pottery Project: Personal Interview
Mayor D. Japtha
Cllrs. Abels, Reid, Knott-Craig, Hoffman, Mbotya, and Jacobs
Merssrs Langbooi, Kombani and Oliphant
204 Mesdames Fitchet, Fouchė, Poswa and Smith, all of the Camdeboo Municipality. Personal Interviews
Mr Willie Potgieter, Plasto Properties: Personal Interview
Mr Hannes van Jaarsveld, Montego Feeds. Personal Interview
Mr Frank Gentry, Karoo Taxidermy. Personal Interview
Mr Greg Ducie, Cacadu District Municipality. Personal Interview
Dr Hendrik Lloyd, NMMU. Personal Interview
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