Nodal Economic Profiling Project Kgalagadi Northern Cape Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Context

IInn 22000011,, SSttaattee PPrreessiiddeenntt TThhaabboo MMbbeekkii aannnnoouunncceedd aann iinniittiiaattiivvee ttoo aaddddrreessss uunnddeerrddeevveellooppmmeenntt iinn tthhee mmoosstt sseevveerreellyy iimmppoovveerriisshheedd rruurraall aanndd uurrbbaann aarreeaass ((““ppoovveerrttyy nnooddeess””)) iinn SSoouutthh AAffrriiccaa,, wwhhiicchh hhoouussee aarroouunndd tteenn mmiilllliioonn ppeeooppllee..

TThhee UUrrbbaann RReenneewwaall PPrrooggrraammmmee ((uurrpp)) aanndd tthhee IInntteeggrraatteedd SSuussttaaiinnaabbllee RRuurraall Maruleng DDeevveellooppmmeenntt PPrrooggrraammmmee Sekhukhune ((iissrrddpp)) wweerree ccrreeaatteedd iinn 22000011 ttoo address development in these Bushbuckridge address development in these aarreeaass.. TThheessee iinniittiiaattiivveess aarree Alexandra hhoouusseedd iinn tthhee DDeeppaarrttmmeenntt ooff Kgalagadi Umkhanyakude PPrroovviinncciiaall aanndd LLooccaall Government (dplg). Zululand Government (dplg). Maluti-a-Phofung Umzinyathi Galeshewe Umzimkhulu I-N-K Alfred Nzo Ukhahlamba Ugu

Central Karoo OR Tambo Chris Hani

Mitchell’s Plain Mdantsane Khayelitsha Motherwell

UUP-WRD-Kgalagadi Profile-301106-IS 2 Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Kgalagadi poverty node

Activities

z Research process Documents

People z Overview

z Economy

– Overview

– Selected sector: Mining

– Selected sector: Tourism

– Selected sector: Agriculture

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Kgalagadi Profile-301106-IS 3 Nodal Economic Profiling Project Business Trust and dplg, 2007 Research process Kgalagadi Summary of what we have done

AAccttiivviittiieess DDooccuummeennttss PPeeooppllee

z Desk research z Six different types of z Meetings with documents government / public z One visit to node ± Four documents on sector and private ± Monday 30 October marketing and sector / local people to Friday 3 district strategy ± Eight meetings with November 2006 ± One local economic district and local ± Understanding of development (LED) municipalities potential for regeneration study ± Eleven meetings economic growth, ± One feasibility study with SMMEs, big specific ± One Independent businesses, opportunities for Development Trust independent investments (IDP) review consultants, local ± Visits to potential ± Three documents on people economic growth mining at local and initiatives across the national level tourism, agriculture, ± Two business plans mining, manufacturing and retail sectors

UUP-WRD-Kgalagadi Profile-301106-IS 4 Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Kgalagadi poverty node

z Research process

Introduction

z Overview Key data points

Current action z Economy

± Overview

± Selected sector: Mining

± Selected sector: Tourism

± Selected sector: Agriculture

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Kgalagadi Profile-301106-IS 5 Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Overview

IInnttrroodduuccttiioonn KKeeyy ddaattaa ppooiinnttss CCuurrrreenntt aaccttiioonn

Introduces the node; Lists pertinent acts and Describes current summarises key issues figures interventions

SSnnaappsshhoott GGeeooggrraapphhyy GGoovveerrnnaannccee

AArreeaa ssuummmmaarryy SSppaattiiaall ddeevveellooppmmeenntt IIDDPP aasssseessssmmeenntt

KKeeyy cchhaalllleennggeess DDeemmooggrraapphhyy DDeevveellooppmmeenntt pprroojjeeccttss

LLooccaall ppeeooppllee ppoorrttrraaiitt IInnccoommee aanndd eemmppllooyymmeenntt

EEdduuccaattiioonn

HHeeaalltthh

DDeevveellooppmmeenntt ssccoorreeccaarrdd

UUP-WRD-Kgalagadi Profile-301106-IS 6 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Kgalagadi Snapshot

Key information KKggaallaaggaaddii Population (2001) 176,909

Area 12,979 km2

Population density (2001) 13.63 / km2

Estimated GDP (2004) R3.25 billion

Province Northern Cape

Main town / city Kuruman, Hotazel

HHiissttoorriiccaall // GGeenneerraall oovveerrvviieeww

TThhee KKggaallaaggaaddii DDiissttrriicctt MMuunniicciippaalliittyy iiss oonnee ooff tthhee ffiivvee ddiissttrriiccttss ooff tthhee NNoorrtthheerrnn CCaappee pprroovviinnccee

TThhee nnaammee KKggaallaaggaaddii iiss ooff SSeettsswwaannaa oorriiggiinn::

±± ""KKggaallaa"" mmeeaannss ""ddiissttaannccee"" aanndd ""ggaaddii"" mmeeaannss ""llaarrggee"" ±±iinn tthhiiss iinnssttaannccee mmeeaannss ""ffaarr""

±± TThhee nnaammee hhaass bbeeeenn mmiissssppeelllleedd ffoorr aa vveerryy lloonngg ttiimmee aass KKaallaahhaarrii.. TThhiiss wwaass dduuee ttoo tthhee ccoolloonniiaall aauutthhoorriittiieess wwhhoo wweerree uunnaabbllee ttoo pprroonnoouunnccee tthhee nnaammee ccoorrrreeccttllyy

AAss tthhee rraaiinn ddiimmiinniisshheedd tthhrroouugghhoouutt tthhee yyeeaarrss,, tthhee ppllaaccee bbeeccaammee aa sseemmii--ddeesseerrtt

IInn MMaarrcchh 22000066 tthhee DDiissttrriicctt MMuunniicciippaalliittyy ((DDMM)) wwaass pprroonnoouunncceedd aass ppaarrtt ooff tthhee NNoorrtthheerrnn CCaappee aanndd nnoo lloonnggeerr aa ccrroossss-- bboorrddeerr ddiissttrriicctt wwiitthh tthhee NNoorrtthh WWeesstt.. TThhee hhaanndd--oovveerr pprroocceessss sshhoouulldd bbee ccoommpplleetteedd bbyy MMaarrcchh 22000077

Source: Stats SA Census 2001, Quantec, Wikipedia, Monitor profile UUP-WRD-Kgalagadi Profile-301106-IS 7 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Kgalagadi Area summary

Similar to many other nodes, the Kgalagadi District comprises a number of local municipalities which have distinct differences

GGaammaaggaarraa aanndd Kgalagadi District Municipality map MMoosshhaawweenngg KKuurruummaann zz TThhee GGaammaaggaarraa llooccaall zz TThhee MMoosshhaawweenngg mmuunniicciippaalliittyy llooccaall mmuunniicciippaalliittyy rreepprreesseennttss tthhee rreepprreesseennttss tthhee rreeaall ddeevveellooppeedd ppaarrtt ooff ppoovveerrttyy nnooddee tthhee nnooddee zz IItt aaccccoommmmooddaatteess ±± TThhee mmaaiinn mmiinneess 110055,,000000 ppeeooppllee are all active District (60% of the district are all active Management (60% of the district tthheerree Area Moshaweng mmuunniicciippaalliittyy zz IInn GGaa--SSeeggoonnyyaannaa,, ppooppuullaattiioonn)) iinn 116655 tthhee ddiissttrriicctt vviillllaaggeess mmuunniicciippaalliittyy iiss bbaasseedd zz SSeerrvviiccee aanndd iinn KKuurruummaann iinnffrraassttrruuccttuurree bbaacckkllooggss aarree mmuucchh ±± TThhee ttoowwnn iiss Ga- Gamagara more severe there eeccoonnoommiiccaallllyy Segonyana more severe there vviibbrraannttaanndd aallll tthhaann eellsseewwhheerree tthhee mmaajjoorr bbrraannddss zz NNoo eeccoonnoommiicc aaccttiivviittyy aarree pprreesseenntt tthheerree zz TTrriibbaall aauutthhoorriittiieess

Source: The Demarcation Board website, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 8 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Kgalagadi Some observations about Kgalagadi

“Within different levels of local and provincial government there appear to be ignorance regarding the current situation of key economic sectors, and mismanagement in terms of potentially successful projects which have become stranded” – Kuruman Farmers’ Association

“BEE processes have been slow in the mining sector … Now the big mining companies need to get involved in this, especially on the procurement side” ± District Municipality

“Moshaweng, one of the three local municipalities, is the actual poverty node … The rest of the district municipality is much better off” ± District Municipality

“To have a successful project, the thing you need the most is an entrepreneur … someone able and committed to drive the initiative … otherwise, the project won’t be able to fly” ± Hotazel Manganese Mines

“We can’t fund a project for five years which doesn’t even break even!” ± District Municipality

UUP-WRD-Kgalagadi Profile-301106-IS 9 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Kgalagadi Key challenges

IInnffrraassttrruuccttuurree cchhaalllleennggeess EEccoonnoommiicc ddeevveellooppmmeenntt cchhaalllleennggeess

zz IInn tthhee rruurraall aarreeaass,, aacccceessss ttoo bbaassiicc zz KKggaallaaggaaddii iiss ffaarr ffrroomm mmaajjoorr cciittiieess,, aanndd iittss sseerrvviicceess iiss ssttiillll eexxttrreemmeellyy ppoooorr ttoowwnnss aarree ssmmaallll

zz TTrreemmeennddoouuss bbaacckkllooggss iinn tthhee pprroovviissiioonn ooff zz TThheerree iiss aa llooww bbaassee ffoorr eeccoonnoommiicc rrooaaddss,, hhoouussiinngg,, hheeaalltthh // eedduuccaattiioonn ddeevveellooppmmeenntt oorr iinnvveessttmmeenntt ooppppoorrttuunniittiieess ffaacciilliittiieess aanndd bbaassiicc sseerrvviicceess iinn aallll sseeccttoorrss eexxcceepptt mmiinniinngg

SSkkiillllss cchhaalllleennggeess MMiiggrraattiioonn

zz LLaacckk ooff mmaannaaggeerriiaall aanndd bbuussiinneessss sskkiillllss zz EEccoonnoommiicc ggrroowwtthh aanndd jjoobb ccrreeaattiioonn bbootthh iinn tthhee ppuubblliicc aanndd pprriivvaattee sseeccttoorrss ooppppoorrttuunniittiieess aarree llooccaatteedd iinn tthhee wweesstteerrnn ppaarrtt

zz MMaannyy pprroojjeeccttss ffaaiill ttoo ddeelliivveerr tthhee iinntteennddeedd bbeenneeffiitt wwiitthhiinn tthhee pprroojjeecctteedd ttiimmeeffrraammee,, zz MMiiggrraattiioonn ffrroomm tthhee eeaasstteerrnn aanndd ppoooorreerr eessppeecciiaallllyy iinn aaggrriiccuullttuurree ppaarrtt ooff tthhee nnooddee ((MMoosshhaawweenngg)) iiss aa ccoonnssttaanntt ffeeaattuurree

Source: Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 10 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Kgalagadi Local resident portrait – Tumo Jantjie

Tumo Jantjie was born in Kuruman and attended the PH Maoeketsi Agricultural High School. With an interest in agriculture, Tumo decided to continue his education by completing a Diploma in Agricultural Management in 2002 at the Port Elizabeth Technikon. As the course required practical training, Tumo found employment at the Wilco Marizzabe Poultry farm. Within a year he had been promoted to night supervisor.

However, shortly thereafter, Tumo resigned and returned home to Kuruman to run the family business which consisted of a bottle store, shop and restaurant, as his parents needed help.

In 2004, Tumo’s brother, who had been working in Mmabatho returned home and took over the family business, as Tumo wanted to increase his working experience elsewhere.

In October 2004, Tumo got a job at Imperial Car Hire in Pretoria as a driver responsible for the collection and delivery of cars in the area. Within a short period, Tumo had been promoted to a rental agent and transferred to the Pietersburg branch. After being in Pietersburg for two months, a job opportunity to manage a poultry abattoir in Kuruman came up. As Tumo was previously from the area and had experience in poultry farming, the opportunity was too good to pass up. The job application and interview with the local municipality was successful and Tumo accepted the position.

Source: Monitor interviews UUP-WRD-Kgalagadi Profile-301106-IS 11 Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Overview

IInnttrroodduuccttiioonn KKeeyy ddaattaa ppooiinnttss CCuurrrreenntt aaccttiioonn

Introduces the node; Lists pertinent acts and Describes current summarises key issues figures interventions

SSnnaappsshhoott GGeeooggrraapphhyy GGoovveerrnnaannccee

AArreeaa ssuummmmaarryy SSppaattiiaall ddeevveellooppmmeenntt IIDDPP aasssseessssmmeenntt

KKeeyy cchhaalllleennggeess DDeemmooggrraapphhyy DDeevveellooppmmeenntt pprroojjeeccttss

LLooccaall ppeeooppllee ppoorrttrraaiitt IInnccoommee aanndd eemmppllooyymmeenntt

EEdduuccaattiioonn

HHeeaalltthh

DDeevveellooppmmeenntt ssccoorreeccaarrdd

UUP-WRD-Kgalagadi Profile-301106-IS 12 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Kgalagadi Geography

This node previously used to be cross-border; only early this year (2006) has it been declared part of the Northern Cape province

MMaapp GGeeooggrraapphhiiccaall ffeeaattuurreess

LLooccaall mmuunniicciippaalliittiieess,, ppooppuullaattiioonn aanndd mmaajjoorr ttoowwnnss

LLooccaall mmuunniicciippaalliittiieess ±± MMoosshhaawweenngg ((6600%% ooff tthhee ddiissttrriicctt ppooppuullaattiioonn)) ±± GGaa--SSeeggoonnyyaannaa ±± GGaammaaggaarraa

District OOnnee DDMMAA ((DDiissttrriicctt MMaannaaggeemmeenntt AArreeaa)) Management ±± NNDDCCMMAA4455

Moshaweng Area MMaajjoorr ttoowwnnss:: ±± KKuurruummaann,, DDiibbeenngg,, SSiisshheenn,, HHoottaazzeell,, KKaatthhuu

TTrraannssppoorrttaattiioonn

TThhee NN1144 ffrroomm UUppiinnggttoonn ttoo VVrryybbuurrgg ccrroosssseess tthhee Ga- ssoouutthheerrnn ppaarrtt ooff tthhee nnooddee Gamagara Segonyana TTeerrrraaiinn aanndd nnaattuurraall rreessoouurrcceess

NNoo mmaajjoorr wwaatteerr ssoouurrcceess lliikkee rriivveerrss aanndd nnaattuurraall ddaammss ±± MMoosstt ooff tthhee wwaatteerr ccoommeess ffrroomm uunnddeerrggrroouunndd ssoouurrcceess

Source: SA Explorer, Municipal Demarcation Board, Statistics South Africa UUP-WRD-Kgalagadi Profile-301106-IS 13 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Kgalagadi Geology Kalahari rock types dominate Kgalagadi

GGeeoollooggyy

Bokkeveld

Bushmanland

Clarens

Drakensberg

Kalahari

Meinhardskraal

Soutpansberg

Transvaal

Note: After climate, geology is the second most important factor in the formation of soil-terrain landscapes. It affects natural fertility and erodibility and is thus indirectly responsible for a variety of soil-plant niches or habitats. Source: Agricultural Geo-Referenced Information System UUP-WRD-Kgalagadi Profile-301106-IS 14 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Kgalagadi Vegetation The vegetation in Kgalagadi is tropical bush and savanna

VVeeggeettaattiioonn ((AAccoocckkss vveelldd ttyyppee ggrroouuppss))

Pure grassveld types

Tropical bush and savanna type

Source: Agricultural Geo-Referenced Information System UUP-WRD-Kgalagadi Profile-301106-IS 15 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Kgalagadi Aridity zones The western part of Kgalagadi is more arid than the eastern part

AArriiddiittyy zzoonneess

Hyper-arid zones

Arid zone

Semi-arid zone

Source: Agricultural Geo-Referenced Information System UUP-WRD-Kgalagadi Profile-301106-IS 16 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Kgalagadi Rainfall (mean annual) Kgalagadi is extremely dry; it receives very little rainfall

RRaaiinnffaallll ((mmeeaann aannnnuuaall))

0-200 mm

201-400 mm

401-600 mm

601-800 mm

801-1,000 mm

> 1,000 mm

Source: Agricultural Geo-Referenced Information System UUP-WRD-Kgalagadi Profile-301106-IS 17 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Kgalagadi Agricultural infrastructure

Limited infrastructure is available next to the N14

AAggrriiccuullttuurraall iinnffrraassttrruuccttuurree

Source: Monitor profile UUP-WRD-Kgalagadi Profile-301106-IS 18 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Kgalagadi Spatial development

Over 70% of the population does not have access to waste removal and telephone services

KKeeyy iinnddiiccaattoorrss:: 22000011 OObbsseerrvvaattiioonnss zz PPooppuullaattiioonn DDeennssiittyy:: 1133..6633 ppeerrssoonnss//kkmm22 zz MMoosstt ooff tthhee iinnffoorrmmaall ddwweelllliinnggss aarree bbaasseedd iinn tthhee MMoosshhaawweenngg LLooccaall MMuunniicciippaalliittyy ((LLMM)) zz PPooppuullaattiioonn:: RRuurraall 9933..77%%,, UUrrbbaann 66..33%% zz SSiinnccee mmoosstt ooff tthhee llaanndd iiss iinnvvaaddeedd bbyy tthhee bbuusshh zz Dwellings: Formal 93.7%, Informal 6.3% Dwellings: Formal 93.7%, Informal 6.3% aanndd ddooeess nnoott hhaavvee sseettttlleemmeennttss,, tthhee aaccttuuaall ffiigguurree ffoorr ppooppuullaattiioonn ddeennssiittyy iiss mmuucchh hhiigghheerr

Households Without Access to Basic Services: 2001 Type of Housing: 2001 100% Separate House or 80% Brick Structure 80% 72% s 63.6% d l Traditional Housing with o 20.5% h

e Traditional Material

s 60% u

o 48%

H 44% Informal Dwelling /

f 6.3% o Shack 40% e g a t

n House / Flat / Room e 1.5% c

r 20% in Backyard e P

0% Other 8.1% Electricity Piped Water Waste Telephone Removal 0% 35% 70%

Note: Definitions of basic access: Electricity for lighting; piped water within 200 m; waste removal by municipality or communal dump; phone or cell phone Source: Stats SA Census 2001

UUP-WRD-Kgalagadi Profile-301106-IS 19 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Kgalagadi Demography Over 65% of the population is less than 29 years old

Age Distribution: 2001 Gender Distribution: 2001 40% 100% 38.0% TToottaall PPooppuullaattiioonn:: 117766,,990099 80% s

s 47.6% 30% t 50.0% t 27.4% n

n Male e e d d i 60% i s s

17.4% e e 20% R R

f f 12.4% 40% o o

Female % % 10% 52.4% 50.0% 4.7% 20%

0% 0% 0-14 15-29 30-44 45-64 65 + Total Population Head of Household

Household Size: 2001 Language Distribution: 2001 80% 100% 85.7% TToottaall NNoo.. ooff HHoouusseehhoollddss:: 4400,,888855 s s d

60% t 75% l n o 46.8% e h d e

41.2% i s s u 40% e 50% o R

H f

f o

o

%

% 20% 25% 12.0% 11.5% 0.9% 0.4% 1.0% 0% 0% 1 to 3 4 to 7 8 + Setswana Afrikaans IsiXhosa English Other

Source: Stats SA Census 2001 UUP-WRD-Kgalagadi Profile-301106-IS 20 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Kgalagadi Income and employment Over 78% of the households live below the poverty line

Annual Household Income: 2001 Employment Figures: 2001 80% 70% 64.4% 61.7%

s Household Subsistence Household Subsistence s d t l 60% n o LLeevveell:: RR1199,,220000 ppeerr aannnnuumm e h d e i s s u

40% e 35% o R

H 22.2% f

f o

o 16.0% 13.7%

20% % % 9.1% 6.0% 4.2% 2.7% 0% 0% Below R9601 - R19201 - R38401 - R76801 - Above Employed Unemployed Not Economically R9600 19200 38400 76800 153600 R153601 Active

Employment by Industry (Top 5): 2001 Work Status: 2001

s 50% 100% n s o n s

o 92.1% r s e 40% r 80% e P

P d

e d y

30% e 60%

o 24.1% y l o p l p m 20% 16.9% 40% m E

f 12.4% 11.5% E

o 10.4% f

o

10% 20% %

% 5.3% 1.2% 1.2% 0.3% 0% 0% Community; Mining and Wholesale Agriculture; Private Paid Self- Employer Paid Family Unpd.Family social and quarrying and retail hunting; households Employee Employed Worker w orker personal trade forestry and services fishing

Source: Stats SA Census 2001 UUP-WRD-Kgalagadi Profile-301106-IS 21 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Kgalagadi Education Secondary and tertiary education levels are lower than the national average

School Attendance (Aged 5-24 years): 2001 Education Levels (Aged 20+ years): 2001 80% 50% 74% 71% 67% Kgalagadi Kgalagadi 40% 60% Very low school All Nodes All Nodes 32% attendance Rest of SA 29% 28% Rest of SA 30% 25% 25% 24% 40% 22% 30% 19% 28% 25% 20% 15% 15% 14%13% 20% 9% 10% 6% 6% 6% 5%5% 3% 1% 1% 0% 0% None Pre-school & School Tertiary None Some Complete Some Std 10 / Higher Primary Primary Secondary Grade 12

Number of Schools: 2002 KKeeyy iissssuueess 120 ¡ 116 ¡ Moshaweng has the lowest percentage of people who No.of schools Moshaweng has the lowest percentage of people who ppaasssseedd mmaattrriicc,, eessttiimmaatteedd aatt 44..55%%,, wwiitthh GGaammaaggaarraa aatt 80 Total number of schools 204 1166..99%% aanndd GGaa--SSeeggoonnyyaannaa wwiitthh 1100..77%% ¡ 36 ¡ AAss tthhee ttrraannssppoorrtt iinnffrraassttrruuccttuurree ccaatteerrss lleessss ffoorr tthhee mmoorree 40 31 21 rruurraall ppaarrttss ooff tthhee ddiissttrriicctt,, cchhiillddrreenn mmuusstt wwaallkk lloonngg ddiissttaanncceess ttoo sscchhooooll,, oorr aarree ffoorrcceedd ttoo rreemmaaiinn aabbsseenntt 0 ffrroomm sscchhooooll Primary Intermediate / Secondary / Undefined ±± IInn tthheessee rruurraall aarreeaass mmoosstt aarree ffaarrmm sscchhoooollss Middle High

Note: Tertiary education includes university, college, technikon and adult education Source: Stats SA Census 2001, Demarcation Board website, LED Economic Regeneration Study, Monitor interviews UUP-WRD-Kgalagadi Profile-301106-IS 22 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Kgalagadi Health The antenatal HIV-infection rate is much higher than the node average

Per Capita Health Expenditure: 2001 Antenatal HIV Infection Rate: 20051 250 50% 199

200 V 40% I H

n h 29% t i o 150 140 135 30% s 26% r

W 24%

e d P

e / t

100 s 20% R e T

50 % 10%

0 0% Kgalagadi Node Average Rest of SA Kgalagadi Node Average Rest of SA

Daily Number of Patients Per Nurse: 2005 Health Facilities in Kgalagadi: 2003 60 30 26 52.7 Moshaweng y a D

Ga-segonyana /

e 20 s

r Gamagara u N

26.8 26.3 / 30

s t n

e 10 i t 6 a P 2 2 2 2 1 0 0 0 0 Kgalagadi Node Average Rest of SA Fixed Clinics Mobile Clinics Hospitals

Note: Data are based on municipal demarcation as of 2001; 1HIV prevalence among antenatal patients (pregnant women) Source: Health Systems Trust Reports: The District Health Barometer, 2005 and Health and Related Indicators, 2005, Demarcation Board website UUP-WRD-Kgalagadi Profile-301106-IS 23 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Kgalagadi Development scorecard

Kgalagadi development scorecard Difference vs Rural node All node National Rank within Kgalagadi national average average average rural nodes average 1=Best, 14=Worst Poverty incidence (% of households 78.1% 84.7% 81.0% 65.3% 12.8% 2 below HSL)1

Employment rate 22.2% 15.4% 19.3% 33.7% 11.5% 3

Households without basic 48.3% 64.9% 55.1% 27.9% 20.4% 3 access to water2 Households without access to 43.6% 56.7% 50.3% 30.3% 13.3% 5 electricity3 Percentage of adults with low / no 56.2% 60.3% 54.1% 40.3% 15.9% 4 education4

Better than national average Worse than national average

Note: 1HSL = Household Subsistence Level and is equal to R19,200 per annum (R1,600 per month); 2Defined as not having piped water within a distance of 200 m of dwelling (government policy on minimum basic human need); 3Based on households that do not use electricity as a source for lighting; 4All adults aged 20+ years with no schooling at secondary level or above (Stats SA indicator of educational deprivation) Source: Stats SA Census 2001 UUP-WRD-Kgalagadi Profile-301106-IS 24 Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Overview

IInnttrroodduuccttiioonn KKeeyy ddaattaa ppooiinnttss CCuurrrreenntt aaccttiioonn

Introduces the node; Lists pertinent acts and Describes current summarises key issues figures interventions

SSnnaappsshhoott GGeeooggrraapphhyy GGoovveerrnnaannccee

AArreeaa ssuummmmaarryy SSppaattiiaall ddeevveellooppmmeenntt IIDDPP aasssseessssmmeenntt

KKeeyy cchhaalllleennggeess DDeemmooggrraapphhyy DDeevveellooppmmeenntt pprroojjeeccttss

LLooccaall ppeeooppllee ppoorrttrraaiitt IInnccoommee aanndd eemmppllooyymmeenntt

EEdduuccaattiioonn

HHeeaalltthh

DDeevveellooppmmeenntt ssccoorreeccaarrdd

UUP-WRD-Kgalagadi Profile-301106-IS 25 Nodal Economic Profiling Project Business Trust and dplg, 2007 Governance Kgalagadi District Municipality structure The Kgalagadi District Municipality incorporates three local municipalities and a District Management Area (DMA)

KKggaallaaggaaddii DDiissttrriicctt MMuunniicciippaalliittyy

NNCCDDMMAA4455** // NNCCDDMMAACCBB11**

GGaa--SSeeggoonnyyaannaa GGaammaaggaarraa LLooccaall MMoosshhaawweenngg LLooccaall LLooccaall MMuunniicciippaalliittyy MMuunniicciippaalliittyy MMuunniicciippaalliittyy

Note: *The DMA (District Management Area) is administered directly by the Kgalagadi District Municipality. The former name is reported in the Demarcation Board website, the latter on the maps at the District Municipality. Source: Fourth Reviewed IDP, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 26 Nodal Economic Profiling Project Business Trust and dplg, 2007 Governance Kgalagadi Political structure of the Kgalagadi District Municipality

EExxeeccuuttiivvee MMaayyoorr CCoouunncciilllloorr BB SS MMeerreeeeoottllhhee ((MMss))

MMaannaaggeerr:: MMaayyoorraall OOffffiiccee TT FF MMooggaappii

MMuunniicciippaall MMaannaaggeerr MM KK MMmmooiieemmaanngg

CCoommmmuunniittyy DDeevveellooppmmeenntt aanndd IInntteerrnnaall AAuuddiitt FFiinnaanncciiaall SSeerrvviicceess TTeecchhnniiccaall SSeerrvviicceess CCoorrppoorraattee SSeerrvviicceess SSeerrvviicceess PPllaannnniinngg VVaaccaanntt VVaaccaanntt BB MM OOlliivviieerr EE AA GGaabboorroonnee NN PP DDiittsshheetteelloo LL EE TTsshheettllhhoo

Source: Fourth Reviewed IDP, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 27 Nodal Economic Profiling Project Business Trust and dplg, 2007 Governance Kgalagadi Sources of funding and budget breakdown The municipality capital budget is estimated to increase by 400%

Kgalagadi District Municipality Capital Budget: 2004-2007 45 Other Financial Source / CMIP 39.9 39.9 External Loans 38.5 38.5 Other Assets 0.2 Community 0.2 Infrastructure

30

Millions of Rands 38.3 38.5 39.7 39.9

15

6.8 7.7

3.5 1.0 4.2 4.2 0 1.5 Expenditure Sources Expenditure Sources Expenditure Sources 2004/2005 2005/2006* 2006/2007*

Note: *. Data for 2005/2006 and 2006/2007 are estimates from the IDP Source: Fourth Reviewed IDP, Demarcation Board website, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 28 Nodal Economic Profiling Project Business Trust and dplg, 2007 Governance Kgalagadi Sources of funding and budget breakdown (continued) Over 70% of the sources of funding for the municipality operating budget is represented by subsidies and grants Kgalagadi District Municipality Operating Budget: 2004-2007 200 General + Ad Hoc Expenditure / Other Salaries, Wages and Allowances Repairs and Maintenance Allocations Local Municipalities

External contributions Subsidies and Grants + Other Other Income / Equitable Share Regional Levies 150

121.4 127.5 123.4 121.4 127.5 116.4 15.1 9.1 14.4 9.0 7.0 15.7 7.1 6.8 Millions of 6.3 17.9 Rands 100 18.7 24.4 18.3 21.6 22.6

50 93.5 90.2 71% 80.6 88.3 82.6 86.7

0 Expenditure Sources Expenditure Sources Expenditure Sources 2004/2005 2005/2006* 2006/2007*

Note: *. Data for 2005/2006 and 2006/2007 are estimates from the IDP Source: Fourth Reviewed IDP, Demarcation Board website, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 29 Nodal Economic Profiling Project Business Trust and dplg, 2007 Governance Kgalagadi Overview of nodal management – private sector point of view

Capability z Demonstrated a clear understanding of the challenges within the node z Beginning to apply lessons learnt from past failures z The IDP reflected the link between the main issues, objectives, strategies and key projects z Beginning to appoint project champions based on skills and are focusing on potential markets for project output during the planning stage

Inter-nodal politics z Alignment and coordination between the district and local municipalities can be improved

Source: Based on Monitor interviews of private sector participants UUP-WRD-Kgalagadi Profile-301106-IS 30 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Kgalagadi Key facts of the IDP

GGeeooggrraapphhiicc aarreeaa ¢ The Kgalagadi District Municipality and the local municipalities Covers more than the node covered within it Covers exactly the node covered Covers less than the node

Month / Year of latest ¢ Month / Year of latest May 2006 ppuubblliiccaattiioonn

¢ The actual document is 85 pages

Length / Form ¢ Length / Form Most of it (43 pages) regards the project phase

¢ The District Municipality, particularly the Municipal Manager and the Public sector mainly PIMS-Centre Private sector mainly AAuutthhoorr // MMaaiinn ¢ Consultants were used only for specific tasks Both equally contributors contributors ± SDF, LERS (Local Economic Regeneration Study), Integrated Includes consultants Transport Plans, Waste Management Programmes, Does not include consultants Environmental Management Programmes Relies only on consultants

TTiimmiinngg ¢ This review process took place from September 2005 till May 2006

PPrroocceessss ooff ccrreeaattiioonn ¢ The Municipal Manager manages the process, the PIMS-Centre KKeeyy co-ordinates it

aspects ¢ aspects Consultants are utilised only for specific tasks

Other key related ¢ Other key related N/A ddooccuummeennttss

Source: Fourth Reviewed IDP, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 31 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Kgalagadi Key characteristics of the IDP

Provides insight mainly ¢ FFooccuuss // PPuurrppoossee Describe issues and projects designed to tackle them Provides information mainly Both equally

Easy to find / access ¢ AAcccceessssiibbiilliittyy We received this IDP from the Kgalagadi District Municipality Difficult to find / access

Generally, very vague ¢ PPrreecciissiioonn When describing issues and projects, it is very precise Generally, quite precise

AAccttuuaall uusseerr ggrroouupp // KKeeyy ¢ Issues and projects presented look tailored for the government and Government mainly current recipients the public sector rather than the private one Private sector mainly current recipients Both equally

¢ Current IDP has the potential to drive the debate and influence the Is viewed as key guiding document EExxtteenntt ooff uussaaggee // IImmppaacctt course of actions Is used minimally, very little impact

¢ The District Municipality collected all the information from the Local Municipalities and the District Management Area and develop a list of issues prioritised for the next five years

¢ Comparing this list with those of the local municipalities one will find OOtthheerr aassppeeccttss that some of the issues in the local municipalities are not necessarily a priority for the district municipality ± that is due to the specific local conditions in that particular municipal area and also due to the capacity in that municipality to successfully deal with that issue

Source: Fourth Reviewed IDP, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 32 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Kgalagadi Contents of the IDP relevant to the node

TTyyppeess ooff iinnffoorrmmaattiioonn ccoonnttaaiinneedd iinn tthhee IIDDPP AAsssseessssmmeenntt

Examples of key issues areas Examples of key issues areas Typical level of detail provided Examples of key issues areas Examples of key issues areas Typical level of detail provided Highly comprehensive covered not covered across issue areas covered not covered across issue areas breadth depth ¢ ¢ ¢ ¢ DDiissttrriicctt--wwiiddee nneeeeddss ¢ LLeessssoonnss aanndd ffoolllooww--uuppss ffrroomm ¢ AAnn iissssuuee iiss iiddeennttiiffiieedd aass aa

¢ previous IDP reviews priority by the district ¢ previous IDP reviews priority by the district TThhee ffuuttuurree ggooaallss

¢ municipality ¢ municipality

¢ Prioritisation of projects or ¢ Prioritisation of projects or

Strategy and objectives ¢ Strategy and objectives ¢ iissssuueess TThheenn,, tthhee oobbjjeeccttiivvee rreellaatteedd ttoo ¢ ¢ PPrroojjeeccttss tthhaatt iissssuuee iiss ssttaatteedd ¢ ¢ ¢ FFuunnddiinngg ¢ FFiinnaalllyy,, pprroojjeeccttss wwhhiicchh sshhoouulldd ffuulflfiill tthhee oobbjjeeccttiivvee aanndd aaddddrreessss Key issues tthhee iissssuuee aarree pprreesseenntteedd not covered

QQuuaalliittyy ooff iinnffoorrmmaattiioonn ccoonnttaaiinneedd iinn tthhee IIDDPP AAsssseessssmmeenntt

Highly reliable ¢ ¢ SSoommee ddaattaa pprreesseenntteedd iinn tthhee IIDDPP aanndd tthhee DDeemmaarrccaattiioonn BBooaarrdd wweebbssiitteeddoo nnoott mmaattcchh ±± SSttiilll ssoommee ccoonnffuussiioonn wwiitthh rreeggaarrdd ttoo tthhee nnuummbbeerr aanndd tthhee iiddeennttiittyy ooff tthhee mmuunniicciippaalliittiieess ±± IInnffoorrmmaattiioonn oonn tthhee mmuunniicciippaalliittyy bbuuddggeett iiss nnoott cclleeaarr ¢ ¢ TThhee IInntteeggrraattiioonn PPhhaassee ppllaannss aanndd ddooccuummeennttss aarree nnoott pprreesseenntteedd iinn tthhee ccuurrrreenntt IIDDPP ±± TThheerree iiss jjuusstt aa rreemmiinnddeerr ttoo tthhee rreessppoonnssiibbllee ppeerrssoonn ttoo ttaallkk ttoo tthhee mmuunniicciippaalliittyy Very risky to use for investment decisions

Source: Fourth Reviewed IDP, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 33 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Kgalagadi Action orientation of the IDP for the node

AAccttiioonnss pprrooppoosseedd AAsssseessssmmeenntt

EExxaammpplleess ooff kkeeyy aaccttiioonnss pprrooppoosseedd iinn IIDDPP EExxaammpplleess ooff kkeeyy aaccttiioonnss nnoottpprrooppoosseedd iinn IIDDPP Highly action-oriented ¢ ¢ ¢ IInn oorrddeerr ttoo ssoollvvee IIssssuuee ##22 ((llaacckk ooff ssuuffffiicciieenntt ¢ PPrriioorriittiissaattiioonn ooff pprroojjeeccttss wwiitthhiinn tthhee IIDDPP,, ee..gg..:: ppuubblliicc ttrraannssppoorrtt ccaauusseedd bbyy llaacckk ooff pprrooppeerr aacccceessss ±± IInnddiiccaattee wwhhiicchh iissssuueess aarree mmoorree ccrriittiiccaall tthhaann rrooaaddss iinn tthhee vvaasstt aarreeaass ooff tthhee ddiissttrriicctt)) aanndd ootthheerrss aacchhiieevvee tthhee rreellaatteedd oobbjjeeccttiivvee:: ¢ ¢ FFeeaassiibbiilliittyy // iimmpplleemmeennttaattiioonn ooff pprroojjeeccttss,, ee..gg..:: ±± UUppggrraaddee 66 kkmm ooff tthhee BBaattllhhaarrooss ±±TTssiinneenngg RRooaadd ttoo aa ssuubbssttaannddaarrdd ssuurrffaacceedd rrooaadd bbyy ±± SSttaattee mmoorree cclleeaarrllyy hhooww ttoo rraaiissee aanndd ssppeenndd 22000055//22000066 tthhee mmoonneeyy bbuuddggeetteedd ffoorr eeaacchh pprroojjeecctt Key action areas ¢ ±± PPaavvee aanndd rree--ggrraavveell tthhee HHoottaazzeell ±±VVaannzzyyllssrruuss ¢ EEccoonnoommiicc sseeccttoorrss ttoo ffooccuuss oonn ggooiinngg ffoorrwwaarrdd not covered RRooaadd bbyy 22000077

SSuuppppoorrtt ooff iimmpplleemmeennttaattiioonn ooff tthhee pprrooppoosseedd aaccttiioonnss AAsssseessssmmeenntt ¢ ¢ DDeeaaddlliinneess ffoorr ssppeecciiffiicc pprroojjeeccttss aarree pprreesseenntt Drives ¢ ¢ CCoosstt eessttiimmaatteess aarree iinnddiiccaatteedd ffoorr eeaacchh pprroojjeecctt implementation well ¢ ¢ RReessppoonnssiibbiilliittyy iiddeennttiiffiieedd aatt aa mmuunniicciippaall ddeeppaarrttmmeenntt lleevveell ¢ ¢ LLaacckk ooff mmiilleessttoonneess ¢ ¢ SSoouurrccee ffuunnddeerrss iiddeennttiiffiieedd ffoorr mmoosstt ooff tthhee pprroojjeeccttss

Does not drive implementation

Source: Fourth Reviewed IDP, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 34 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Kgalagadi General assessment of the IDP in relation to the node

GGeenneerraall aasssseessssmmeenntt ––DDooeess tthhee IIDDPP ddeelliivveerr wwhhaatt iitt pprroommiisseess?? AAsssseessssmmeenntt ¢ ¢ LLoonngg lliisstt ooff iissssuueess,, oobbjjeeccttiivveess aanndd pprroojjeeccttss,, bbuutt wwiitthh nnoo cclleeaarr uunnddeerrssttaannddiinngg ooff wwhheetthheerr tthhee mmuunniicciippaalliittyy Highly hhaass tthhee aapppprroopprriiaattee bbuuddggeett aanndd ccaappaabbiilliittyy satisfactory ¢ ¢ SSttrraatteeggyy iiss wweelll ddeeffiinneedd aanndd lliinnkkss ddiirreeccttllyy ttoo hhiigghh lleevveell iissssuueess ¢ ¢ NNoo cclleeaarr ssttaatteemmeenntt ooff hhooww tthhee ssuucccceessss ooff tthhee IIDDPP wwiilll bbee mmeeaassuurreedd ¢ ¢ LLEEDD ssttrraatteeggyy iiss mmeennttiioonneedd aass IIssssuuee ##66 aaddddrreesssseedd bbyy tthhee IIDDPP ¢ ¢ NNoo cclleeaarr ffooccuuss oonn eeccoonnoommiicc ggrroowwtthh aanndd sseeccttoorrss wwiitthh ggoooodd eeccoonnoommiiccppootteennttiiaall Delivers less than it promises

IIDDPP ccoonnttrriibbuuttiioonn ttoo ssttiimmuullaattiinngg eeccoonnoommiicc ggrroowwtthh AAsssseessssmmeenntt

WWhhaatt ttoo kkeeeepp ddooiinngg WWhhaatt ttoo ddoo ddiiffffeerreennttllyy Very useful to growth debate ¢ ¢ ¢ UUnnddeerrssttaanndd tthhee nneeeeddss ooff tthhee nnooddee ¢ PPrriioorriittiissaattiioonn ooff iissssuueess iinn tthhee nnooddee ¢ ¢ ¢ AAppppllyy aa ssttrraatteeggiiccaalllyy ssttrruuccttuurreedd aapppprrooaacchh ttoo ¢ OOuuttlliinnee ssppeecciiffiicc ttaarrggeettss ffoorr oobbjjeeccttiivveess ((sshhoorrtt-- ttaacckkllee iissssuueess,, ii..ee..:: aanndd lloonngg--tteerrmm ttaarrggeettss)) ¢ ±± TThhee cchhaaiinn tthhrroouugghh wwhhiicchh sseevveerraall sstteeppss lleeaaddss ¢ MMoorree aatttteennttiioonn ttoo eeccoonnoommiicc ggrroowwtthh iinn tthhee ffrroomm aann iissssuuee ttoo aa sseerriieess ooff pprroojjeeccttss,, nnooddee,, hhooww ttoo ssttiimmuullaattee iitt,, hhooww ttoo ccrreeaattee aann ffoollloowwiinngg aa ssttrraatteeggyy aanndd mmeeeettiinngg kkeeyy eennaabblliinngg eennvviirroonnmmeenntt

performance indicators (KPIs) ¢ performance indicators (KPIs) ¢ MMoorree ddeettaaiill iiss rreeqquuiirreedd oonn tthhee ccaappaabbiilliittiieess tthhaatt Does not contribute tthhee mmuunniicciippaalliittyy nneeeeddss ttoo ddeelliivveerr to growth debate

Source: Fourth Reviewed IDP, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 35 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Kgalagadi Summary of IDP assessments

IIDDPP ddeelliivveerrss wwhhaatt iitt LLeevveell ooff ddeettaaiill AAccttiioonnss pprrooppoosseedd pprroommiisseess Highly comprehensive Highly Highly breadth depth action-oriented satisfactory

Key issues Key action areas Delivers less than not covered not covered it promises

QQuuaalliittyy ooff SSuuppppoorrtt ooff CCoonnttrriibbuuttiioonn ttoo iinnffoorrmmaattiioonn iimmpplleemmeennttaattiioonn ssttiimmuullaattiinngg ggrroowwtthh

Highly Drives Very useful to reliable implementation well growth debate

THIS SEEMS GENEROUS

Very risky to use for Does not drive Does not contribute investment decisions implementation to growth debate

Source: Fourth Reviewed IDP, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 36 Nodal Economic Profiling Project Business Trust and dplg, 2007 Development projects Kgalagadi IDP Project Phase III The Kgalagadi Municipality applies a structured strategic approach to addressing issues, going through a series of steps, from identifying an issue to designing an intervention

£ Issues are organised by subject (e.g. Health Services, 11.. IIssssuuee ## Water, Road and Transport)

£ Every issue has a corresponding objective, which is a 22.. OObbjjeeccttiivvee high level goal to be achieved in five to ten years’ time

Ideally, each £ For each objective, several KPIs are determined to project will 33.. KKPPII** tackle an measure performance regarding that specific goal aspect of a

specific issue £ Strategies indicate an overarching plan to address the 4. Strategies 4. Strategies related KPIs

£ Each strategy leads to one or more projects 55.. PPrroojjeecctt ##

£ Every project has a name, a location, a specific 66.. PPrroojjeecctt ddeettaaiillss objective, some indicators, a cost estimate and a responsible manager

Note: *Key Performance Indicator Source: Fourth Reviewed IDP, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 37 Nodal Economic Profiling Project Business Trust and dplg, 2007 Development projects Kgalagadi IDP Project Phase III (continued) Through the steps described earlier, the first phase of the process goes from an identified issue to a specific project which will address it

Issue # Objective KPI Strategies Projects

1. Health services: Every individual to have Walking distance of Upgrading of P 1.1 M: Lack of proper and access to primary health all community existing health Implement a sufficient primary health services and facilities in five members to clinics structures and comprehensive facilities and insufficient years (20 km radius) and the services PHC package / Planting of 500 trees rendering of related continued provision of upgrade clinics municipal health services in municipal health services in the All local municipalities P 1.2 M: Staffing district total Kgalagadi area to participate in a and equipment of clean town campaign clinics

3. Water: Within five years all Number of Ensure a P 3.1 M: Provision Certain communities within households in Kgalagadi will households provided distribution of of water in area are exposed to have access to good quality with clean water taps, 200 m Moshaweng hazardous health conditions drinking water supply systems, walking distance Number of P 3.10 G: due to poor basic services according to from each sustainable water Provision of water household in sources developed in Ga-Segonyana each village Number of jobs created

Source: Fourth Reviewed IDP, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 38 Nodal Economic Profiling Project Business Trust and dplg, 2007 Development projects Kgalagadi IDP Project Phase III (continued) The second phase of the process indicates all the details relevant to each project

Project no. Project details (previous Cost Responsible Name Location Objective Indicators table) estimate manager P 1.1 M Implement a All wards in Erection and 1. Easy access to R19,600,000 Nomondi comprehensive Moshaweng upgrading of +/- wide range of Ditshetelo - PHC package / clinics and high quality PHC Dept. of Health upgrade clinics health centres services (NW and NC) 2. Easy access to secondary and tertiary services P 1.2 M Staffing and To provide staff 1. Number of staff R2,120,000 equipment of and equipment members clinics to all newly built appointed clinics (22) 2. Numbers of clinics fully equipped

P 3.1 M Provision of Zero Provide 1. Number of R642,604 Mr Ben Olivier water in communities households Moshaweng with water provided with according to water P 3.10 G Provision of Bathlaros R4,401,216 RDP standards 2. RDP standard water in Ga- Segonyana

Source: Fourth Reviewed IDP, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 39 Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Kgalagadi poverty node

z Research process

z Overview

z Economy

£ GDP and employment ± Overview £ Prioritisation of economic sectors ± Selected sector: Mining

± Selected sector: Tourism

± Selected sector: Agriculture

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Kgalagadi Profile-301106-IS 40 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Kgalagadi Nodal and provincial GDP The GDP and the GDP per capita for the node have grown at a higher rate than those for the province

GDP per Capita 2004 (Constant 2000 prices) Total GDP per Node (Constant 2000 prices) 35,000 5.0 CAGR (1995-2004) CAGR (1995-2004) = 3.2%

s 4.0 3.55 GDP per capita for the node 2.4% d 3.25 n 3.05 3.14 3.08 3.14 1 2.98 a 2.87 30,000 GDP per capita for the province 1.2% 8 2.67 2.75 R

0 3.0 9 , 5 f 2 7 0 o 6 6

2 4 4 , 4 6 s , 8 7 2 5 2 5 5 6 n 0 , 2 2.0 0 2 0 9 2 7 o , 7 , 4 5 i , 8 , l 4 4 2 9 l 3 7 3 i , 2 2 25,000 , 2 2 2 B 2

2 1.0 2 8 9 4 , 0 5 9 5 8 0.0 9 8 6 1 1 8 5 0 1 2 , 4 3 2 1 0 9 8 7 6 5 7 20,000 4 2 , 0 0 0 8 8 7 , 0 0 0 0 0 9 9 9 9 9 7 , , s , 7 3 3 3 1 7 0 0 0 0 0 9 9 9 9 9 7 7 , d 6 1 7 7 1 2 2 2 2 2 1 1 1 1 1 1 1 6 , , n 1 1 5 5 a 1 1 R 15,000 Total GDP per Province (Constant 2000 prices) 30 CAGR (1995-2004) = 2.2% 22.2 22.8 10,000 s 21.0 21.4 21.1 21.4

d 20.5 19.3 20.1 n 18.8

a 20 R f o 5,000 s n o i

l 10 l i B 0 4 3 2 1 0 9 8 7 6 5 0 0 0 0 0 9 9 9 9 9 0 0 0 0 0 0 9 9 9 9 9 4 3 2 1 0 9 8 7 6 5 2 2 2 2 2 1 1 1 1 1 0 0 0 0 0 9 9 9 9 Comparison of 9 0 0 0 0 0 9 9 9 9 9 2 2 2 2 2 1 1 1 1 GDP per capita 1 with the 69.1% 68.6% 68.8% 70.6% 70.8% 70.9% 66.4% 71.8% 65.9% 76.7% provincial average

Source: Quantec, Monitor analysis; GDP = Gross Domestic Product; CAGR = Compound Annual Growth Rate UUP-WRD-Kgalagadi Profile-301106-IS 41 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Kgalagadi Contribution to GDP by economic sector Mining represents still more than half of the nodal GDP

GDP by Major Sector: 2004 60%

50.2%

40% P D G

4 0 0 2

f o 20% % 13.1%

8.4% 7.4% 6.1% 5.1% 4.2% 3.2% 1.2% 1.2% 0% Mining General Wholesale & Finance & Transport & Community, Agriculture, Manufacturing Construction Electricity & Government Retail Trade; Business Commu- Social & Other Forestry & Water Services Catering and Services nication Personal Fishing Accommodation Services

Millions of 1,783 465 299 263 217 181 149 112 43 41 Rands

Source: Stats SA Census 2001, Quantec, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 42 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Kgalagadi Contribution to employment by economic sector Government and community services account together for 44% of jobs in the node

Employment by Major Sector: 2004 40%

30.6%

n o i t a l u p 5 o 6 P -

5 d 20% 1 e

y d o e l g p 13.9% 13.4%

A 13.0% m E

f o 8.2% 7.9%

% 6.7% 4.2% 1.8% 0.4% 0% General Wholesale & Community, Mining Manufacturing Finance & Agriculture, Construction Transport & Electricity & Government Retail Trade; Social & Other Business Forestry & Communication Water Services Catering & Personal Services Fishing Accommodation Services

No. of Jobs 10,430 4,726 4,561 4,447 2,779 2,678 2,271 1,448 614 134

Source: Stats SA Census 2001, Quantec, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 43 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Kgalagadi GDP by sector Combining size and growth rate allows us to start identifying sectors that may have good growth potential

GDP by Sector 2004 (Constant 2000 prices) Wholesale & Retail Trade; 2000 Transport & Communication Catering & Accommodation Transport Communication Trade Catering

1,000 13 Mining 134 83 2004 285

) 62% 38% 96% 4% 4 0

0 Average CAGR 2

( 800 for employment: 3.2%

s 140 29 1995 185 12 d n a

R 83% 17% 94% 6% f

o 600 General

s 0 60 120 180 240 0 100 200 300 400

n government o i

l Community, social l services Agriculture, Forestry & Fishing Mining i and other personal M services CoalGold Other n 400 i Wholesale and retail Finance and P business trade; catering and 149 5 14 1,764

D 2004 accommodation

G services Transport and 1% 99% 200 communication Electricity Manufacturing Agriculture, and water forestry and 54 1995 5 19 1,198 Construction fishing 0 2% 98% -5% 0% 5% 10% 15% 0 70 140 210 0 50 100 2010500 CAGR (1995-2004)

Source: Quantec, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 44 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Kgalagadi Employment by sector Combining size and growth rate, also in terms of job created, allows us identify sectors that may have good growth potential

Employment by Sector Wholesale & Retail Trade; 12,000 Manufacturing Catering & Accommodation Average CAGR Food Metal Others Trade Catering for employment: 0.2% General government 492 1,369 918 2004 3,991 736 10,000 services 18% 49% 33% 84% 16% s

n Wholesale and retail o i

l trade; catering and l 8,000 i 577 1,039 982 1995 2,769 850 accommodation M

)

4 22% 40% 38% 76% 23% 0 Community, social 0

2 and other personal ( 6,000 0 1000 2000 3000 0 2,000 4,000 6,000

t services n

e Finance & Business Services Mining m y Agriculture, Mining Finance Business CoalGold Other o l 4,000 p forestry and

m fishing 785 1,893 2004 153 4,781 E Manufacturing 29% 71% 1% 6% 93% 2,000 Finance and Transport and business communication Electricity services 616 1,401 1995 461 4,247 and water Construction 0 31% 69% 1% 9% 99%

-8% -6% -4% -2% 0% 2% 4% 0 1000 2000 3000 0 500 1000 1500 62000000 CAGR (1995-2004)

Source: Quantec, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 45 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Kgalagadi Quantitative prioritisation using economic data The average index (from 100 – high, to 0 – low) represents a quantitative assessment of the potential for economic growth and job creation of the ten different sectors

GDP Employment

Sectors 2004 GDP in Number of Average index Employment constant 2000 GDP index employees index prices (Rm) (2004)

1 Mining 1,783 100 4,447 42 71 High

2 General government services 465 24 10,430 100 62

3 Wholesale and retail trade; 299 15 4,726 45 30 catering and accommodation 4 Community, social and other 181 8 4,561 43 26 personal services

5 Finance and business services 263 13 2,678 25 19

6 Manufacturing 112 4 2,779 26 15

7 Agriculture, forestry and 149 6 2,271 21 13 fishing

8 Transport and communication 217 10 614 5 7

9 Construction 43 0 1,448 13 6 Low 10 Electricity and water 41 0 134 0 0

/100 /100 /100

Source: Quantec, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 46 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Kgalagadi Qualitative prioritisation of top five sectors

Sectors Average index Potential for growth Assessment

¤ Mining is the single largest GDP contributor and is growing rapidly Mining 71 ¤ Rich mineral deposits together with current major investments give the mining sector strong potential for growth

¤ The public sector is the largest employer in the district and makes an important General contribution to nodal GDP

government 62 ¤ services However, the public sector is funded by taxation, and therefore is itself dependent on growth in the private sector

¤ Some attractions in the area (e.g. the Kuruman Eye, the Kuruman Moffat Mission, Wholesale and the Wonderwerk Caves)

retail trade; ¤ 30 Lots of B&Bs and guest houses in the area provide accommodation catering and ¤ accommodation Adventurous tourism and some niche markets (e.g. country life experience especially for European visitors)

Community, ¤ This is also part of the public sector, and includes teachers and health care social and other 26 professionals personal services ¤ Therefore, the same assessment applies as for general government services

Finance and ¤ The sector is a relatively significant contributor to GDP and is seeing good growth business 19 ¤ However, it is a consumption sector, and is its strength is dependent on other services sectors that generate wealth

Low growth High growth potential potential Source: Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 47 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Kgalagadi Qualitative prioritisation of top potential sectors

Sectors Average index Potential for growth Assessment

¤ The climate is definitely too warm for most crops ± However, livestock is common, especially cattle (80%), sheep (12%), goats Agriculture, (4%) and game (4%)

forestry and 13 ¤ fishing Water sources are scarce in the area ± However, underground sources like the Kuruman Eye are available and could provide irrigation for some areas

Low growth High growth potential potential Source: Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 48 Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Kgalagadi poverty node

z Research process

z Overview

z Economy

± Overview ¥ Description of current value chain

¥ Growth constraints and solutions

± Selected sector: Mining ¥ Potential for sector

¥ Past and current efforts ± Selected sector: Tourism

± Selected sector: Agriculture

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Kgalagadi Profile-301106-IS 49 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Overview of the mining sector

IInnppuutt PPrroodduuccttiioonn TTaarrggeett mmaarrkkeettss

WWhhaatt ddoo tthheeyy ddoo // WWhhoo ddoo tthheeyy sseerrvvee // WWhhaatt ddoo tthheeyy rreellyy oonn?? pprroodduuccee?? ttaarrggeett // sseellll ttoo??

z Rich mineral deposits z Mining of manganese z Global market trends are around Hotazel by BHP crucial ± Manganese and iron ore Billiton deposits are huge in the z Iron ore and manganese Northern Cape and z Mining of iron ore around are processed especially in Kgalagadi Kathu by Kumba ± Iron ore to produce District Municipality Resources iron z Abundance of unskilled z Extracted minerals are ± Manganese ore is an labour, especially from the ªexportedº outside node important component Moshaweng Local for further processing of steel production, Municipality used to improve the z Machinery and equipment quality of steel need to be imported from Europe and USA

Source: Monitor interviews UUP-WRD-Kgalagadi Profile-301106-IS 50 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Inputs – Labour and skills While the node has a ready supply of unskilled labour, there is a deficiency of qualified local workers required to take up technical and managerial positions

Education Levels (Aged 20+): 2001 z Mining companies in Kgalagadi are 50% encouraged to recruit locally and are Kgalagadi criticised for not doing so Rest of SA 40% z There is a large supply of unskilled labour, especially from Moshaweng 32% +

0 Local Municipality 2 30% d e

g 25% A

24% . 25%

p ± However, skills required for

o 22% P

technical and managerial f o 20% positions are missing % 15% 15% 14%

z 9% Initiatives like the development of a 10% mining logistics hub and / or the 6% 6% 5% provision of mining-related training (in association with tertiary 0% institutions and Adult Basic None Complete Std 10 / Education and Training [ABET] Primary Grade 12 programmes) might improve the Some Some Higher Primary Secondary situation

Source: Stats SA Census 2001, LED Regeneration Study – Sectoral overview, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 51 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Production – Overview of the mines The mining activity in Kgalagadi is concentrated around Hotazel in the District Management Area (DMA), and around Sishen in Gamagara Local Municipality

Current mining activity in Kgalagadi Major mining companies operating in Kgalagadi: 2006

BHP Billiton

Assmang

Kumba Resources

Iron ore Manganese Clay

Source: LED Regeneration Study – Sectoral overview, Monitor interviews UUP-WRD-Kgalagadi Profile-301106-IS 52 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Production – Sishen Iron Ore Mine Recently, clay has been discovered and mined in Sishen which could potentially be a source of future growth

HHiissttoorriiccaall // GGeenneerraall ccoonntteexxtt CCuurrrreenntt pprroodduuccttiioonn aanndd pprroocceessssiinngg** ¥ ¥ ¥ ¥ TThhee mmiinniinngg hhoouussee ooppeerraattiinngg aatt tthhee SSiisshheenn IIrroonn TThhee pprroodduuccttss ooff tthhee mmiinnee iinncclluuddee iirroonn oorree aanndd OOrree MMiinnee iiss KKuummbbaa RReessoouurrcceess ((pprreevviioouussllyy hhiigghh qquuaalliittyy ccllaayy:: kknnoowwnn aass IIssccoorr)) ±± tthhee ccllaayy hhaass rreecceennttllyy bbeeeenn ddiissccoovveerreedd bbyy ¥ ¥ TThhee mmiinnee eemmppllooyyss 33,,000000 ppeeooppllee iinncclluuddiinngg KKuummbbaa RReessoouurrcceess wwiitthhiinn tthhee aarreeaa aaddmmiinniissttrraattiivvee ssttaaffff aanndd ccoonnttrraaccttoorrss ±± iitt hhaass bbeeeenn tteesstteedd aanndd ffoouunndd ttoo bbee ooff hhiigghh ¥ ¥ TThhee mmaaiinn pprroodduucctt iiss iirroonn oorree:: qquuaalliittyy,, wwhhiicchh ccaann bbee uusseedd iinn tthhee mmaannuuffaaccttuurree ±± oonnllyy 3300%% ooff tthhiiss iiss ssoolldd llooccaallllyy ooff cceerraammiiccss ±± tthhee rreemmaaiinniinngg 7700%% iiss eexxppoorrtteedd ttoo 3366 cclliieennttss iinn ±± 116677 mmiilllliioonn ttoonnnneess ooff ccllaayy iiss ssaaiidd ttoo bbee tthheerree ¥ 1166 ccoouunnttrriieess tthhrroouugghh tthhee ppoorrtt ooff SSaallddaannhhaa,, ¥ SSttrraatteeggiicc ppllaannnniinngg nneeeeddss ttoo bbee uunnddeerrttaakkeenn aass tthhee nnoorrtthh ooff CCaappee TToowwnn mmiinnee iiss aa ggrreeaatt ddiissttaannccee ffrroomm tthhee mmaarrkkeett:: ¥ ¥ TThhee mmiinnee ccuurrrreennttllyy ooffffeerrss mmiinnee ttoouurrss iinncclluuddiinngg ±± hhoowweevveerr,, rraaww mmaatteerriiaall ccoossttss aarree llooww aanndd tthhee tthhee ttoouurr kknnoowwnn aass tthhee ªªRRooaarriinngg RRoouutteeºº sskkiillllss ttoo mmiinnee tthhee ccllaayy eexxiisstt ¥ ¥ TThhee SSiisshheenn MMiinnee iiss sseeeenn aass oonnee ooff tthhee sseevveenn ±± IItt iiss bbeelliieevveedd tthhaatt 8800%% ooff aalll cceerraammiicc ttiilleess aarree llaarrggeesstt ooppeenn ccaasstt mmiinneess iinn tthhee wwoorrlldd wwiitthh aann iimmppoorrtteedd,, ssoo tthhee pprroojjeecctt ccoouulldd pprroovviiddee aa mmaajjoorr ooppeenn ppiitt:: eeccoonnoommiicc bboooosstt ttoo tthhee aarreeaa ¥ ±± 1111 kkmm lloonngg ¥ TThhee oonnllyy bbeenneeffiicciiaattiioonn ccuurrrreennttllyy ttaakkiinngg ppllaaccee aatt ±± 11..55 kkmm wwiiddee aanndd tthhee mmiinnee iinncclluuddeess tthhee ccrruusshhiinngg,, wwaasshhiinngg aanndd screening, heavy media separation, blending and ±± 440000 mm ddeeeepp screening, heavy media separation, blending and llooaaddiinngg ooff iirroonn oorree

Note: *2003 data Source: LED Regeneration Study – Sectoral overview, Monitor interviews UUP-WRD-Kgalagadi Profile-301106-IS 53 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Production – Manganese mines The manganese mines in Kgalagadi account for almost 80% of the world’s reserve base

HHiissttoorriiccaall // GGeenneerraall ccoonntteexxtt ¥ ¥ SSoouutthh AAffrriiccaa hhaass 8800%% ooff tthhee wwoorrlldd’’ss rreesseerrvvee bbaassee ooff mmaannggaanneessee,, wwhhiicchh iiss eessttiimmaatteedd aatt 1122 bbiilllliioonn ttoonnnneess.. –– AAllmmoosstt aallll ooff tthheessee ddeeppoossiittss aarree llooccaatteedd iinn tthhee KKaallaahhaarrii mmaannggaanneessee ffiieelldd iinn tthhee NNoorrtthheerrnn CCaappee ¥ ¥ TThhee mmiinniinngg hhoouusseess tthhaatt ooppeerraattee iinn tthhiiss aarreeaa iinncclluuddee:: –– SSaammaannccoorr ssiittuuaatteedd iinn HHoottaazzeell wwhhiicchh aallssoo ooppeerraatteess:: ¦ ¦ tthhee WWeesssseellss mmiinnee,, wwhhiicchh iiss cchhaarraacctteerriisseedd bbyy uunnddeerrggrroouunndd ooppeerraattiioonnss ¦ ¦ tthhee MMaammaattwwaann mmiinnee,, wwhhiicchh iiss aann ooppeennccaasstt mmiinnee –– AAssssmmaanngg ssiittuuaatteedd iinn BBllaacckkrroocckk ¥ ¥ CCoommbbiinneedd tthheessee mmiinneess’’aannnnuuaall ccaappaacciittyy iiss eessttiimmaatteedd aatt 33..44 mmiilllliioonn ttoonnnneess ooff oorree:: –– IInncclluuddeess 11..11 mmiilllliioonn ttoonnnneess uusseedd ffoorr ssiinntteerr pprroodduuccttiioonn –– 4400%% ooff pprroodduuccttiioonn iiss eexxppoorrtteedd ttoo ffeerrrroo--aallllooyy pprroodduucceerrss

BBllaacckkrroocckk MMiinnee** HHoottaazzeell MMiinnee** ¥ ¥ ¥ IIttss mmaannggaanneessee,, mmiinneedd ssoolleellyy ffoorr eexxppoorrtt ppuurrppoosseess,, iiss ¥ IItt pprroodduucceess ssiixx ddiiffffeerreenntt qquuaalliittiieess ooff mmaannggaanneessee tthhaatt ttrraannssppoorrtteedd ttoo gglloobbaall mmaarrkkeettss vviiaa rraaiill rraannggee ffrroomm 8833%%--5500%% ppuurriittyy ¥ ¥ ¥ TThhee mmiinnee eemmppllooyyss 992233 ppeeooppllee aanndd tthhiiss iiss eexxppeecctteedd ¥ MMoosstt ooff tthhee hhaarrdd--tteecchh mmaacchhiinneerryy iiss iimmppoorrtteedd ffrroomm ttoo ssttaayy ssttaattiicc wwiitthh nnoo ffuurrtthheerr ggrroowwtthh eexxppeecctteedd tthhee UUSSAA,, FFrraannccee aanndd GGeerrmmaannyy ¥ ¥ TThhee mmiinnee hhaass tthhrreeee uunnddeerrggrroouunndd sshhaaffttss –– TThhiiss mmiinnee iinncclluuddeess bbootthh ooppeennccaasstt aanndd uunnddeerrggrroouunndd ¥ ¥ TThhee mmiinneerrss aarree aallll rreessiiddeennttss ooff BBllaacckkrroocckk aanndd tthhoossee aaccttiivviittiieess ¥ wwhhoo lliivvee oouuttssiiddee hhaavvee aa lliivviinngg--oouutt aalllloowwaannccee ¥ EEmmppllooyymmeenntt iiss ssttaattiicc wwiitthh aa ggrroowwtthh ooff aabboouutt 00..55%% ppeerr yyeeaarr –– TToottaall eemmppllooyymmeenntt iinn tthhiiss mmiinnee iiss 11,,220000 ppeeooppllee

Note: *2003 data Source: LED Regeneration Study – Sectoral overview, Monitor interviews UUP-WRD-Kgalagadi Profile-301106-IS 54 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Production – South African output While detailed production data are not available on a nodal level, national production of the two main resources mined in the area has increased over the last two decades

South African production of manganese ore: 1983-2004 5

4

3 t K 2

1 CAGR 1983-2004: 1.8%

0 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

South African production of iron ore: 1983-2004 40

30 t

K 20

10 CAGR 1983-2004: 4.2% 0 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

Source: Department of Minerals and Energy: Statistical Tables 2005, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 55 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Production – Contribution to nodal economy The mining sector accounts for approximately half of the nodal GDP; however, employment figures for the same sector are not as impressive and have decreased over the last decade

GDP by mining (Constant 2000 Prices): Kgalagadi 1995-2004 Employment by mining: Kgalagadi 1995-2004 2.0 6,000 1.8 CAGR 1995-2004: 4.3% 5,300 CAGR 1995-2004: -1.9% 4,854 1.5 1.4 4,447 1.4 4,341 4,307 4,415 1.3 1.2 4,000

) s n d o i n l l i

a 1.0 B R (

2,000

0.0 0 1995 1997 1999 2001 2003 2004 1995 1997 1999 2001 2003 2004

Mining as Mining as % % of nodal 45.7% 46.5% 47.5% 46.6% 47.3% 50.2% of nodal 15.8% 14.3% 13.1% 13.1% 13.0% 13.0% GDP employment

Source: Quantec, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 56 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Production – Employment and migration trends Internal migration, from the poorest areas of the node to the mines, takes place extensively

Kgalagadi District Municipality map and relevant MMaannggaanneessee mmiinneess internal migration trends UUnnsskkiilllleedd llaabboouurr

z zz CCoonncceennttrraatteedd z MMoosshhaawweenngg aarroouunndd HHoottaazzeell,, iinn LLooccaall tthhee DDMMAA MMuunniicciippaalliittyy,, kknnoowwnn aass tthhee zz BBHHPP--BBiilllliittoonn llooccaall ªªrreeaall ppoovveerrttyy ooffffiiccee iiss bbaasseedd iinn nodeº of the area, tthhee aarreeaa nodeº of the area, pprroovviiddeess uunnsskkiilllleedd llaabboouurr z IIrroonn oorree mmiinneess z HHoossttss 6655%% ooff tthhee ddiissttrriicctt ppooppuullaattiioonn z z CCoonncceennttrraatteedd zz NNoo rreeaall eeccoonnoommiicc aarroouunndd SSiisshheenn,, iinn aaccttiivviittyy aanndd vveerryy GGaammaaggaarraa LLooccaall sseevveerree bbaacckkllooggss MMuunniicciippaalliittyy iinn iinnffrraassttrruuccttuurreess zz KKuummbbaa RReessoouurrcceess aanndd bbaassiicc iiss aaccttiivvee iinn aarreeaa sseerrvviicceess

MMiiggrraattiioonn’’ss ccoonnsseeqquueenncceess

z Most of the disposable income of mine workers is spent outside the node, mainly in mining towns z Economic activity will hardly take place in the poorest area of the node

Source: South Africa Mineral Industry (SAMI) 2004/2005, Demarcation Board website, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 57 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Production – Expansion New actors are interested in investing in the area, and companies already present are increasing their production through new operational sites

UUnniitteedd MMaannggaanneessee ooff KKaallaahhaarrii ((UUMMKK)) KKhhuummaannii MMiinnee PPrroojjeecctt ¥ ¥ ¥ AA SSoouutthh AAffrriiccaann--RRuussssiiaann jjooiinntt vveennttuurree bbeettwweeeenn aa ¥ TThhee pprroojjeecctt eennttaaiillss tthhee ddeevveellooppmmeenntt ooff aann 88..44 BBllaacckk EEccoonnoommiicc EEmmppoowweerrmmeenntt ((BBEEEE)) ccoommppaannyy mmiilllliioonn ttoonn ppeerr aannnnuumm iirroonn--oorree eexxppoorrtt mmiinnee

(51%) and RENOVA (49%) ¥ (51%) and RENOVA (49%) ¥ The location is the farms Bruce, King and ¥ The location is the farms Bruce, King and ¥ Consortium will complete a detailed geological Consortium will complete a detailed geological MMookkaanniinngg nneexxtt ttoo tthhee eexxiissttiinngg SSiisshheenn mmiinnee ssuurrvveeyy,, aasssseessss rreesseerrvveess aanndd ddrraafftt aa ffeeaassiibbiilliittyy ssttuuddyy bbyy 22000077 ±± AA ppiitt wwiitthh tthhee aannnnuuaall ccaappaacciittyy ooff 11..55--22..00 KKuummbbaa RReessoouurrcceess’’ eexxppaannssiioonn mmiilllliioonnss ttoonnss mmiigghhtt bbee bbuuiilltt ¥ ¥ ¥ ¥ The tight supply / demand situation in the TThhee ppllaann iiss ttoo mmaakkee hhiigghh vvaalluuee--aaddddeedd pprroodduuccttss The tight supply / demand situation in the aanndd bbuuiilldd pprroocceessssiinngg ffaacciilliittiieess iinn tthhee aarreeaa sseeaabboorrnnee iirroonn oorree iinndduussttrryy uunnddeerrppiinnnneedd tthhee aannnnoouunncceemmeenntt ooff sseevveerraall eexxppaannssiioonn pprroojjeeccttss bbyy pprroodduucceerrss lliikkee KKuummbbaa ppeerrffoorrmmiinngg aatt rreeccoorrdd lleevveellss ¥ ¥ IInn MMaarrcchh 22000055,, KKuummbbaa ssiiggnneedd aann aaggrreeeemmeenntt wwiitthh TTrraannssnneett tthhaatt pprroovviiddeess aa nneeww ccoonnttrraacctt ffoorr tthhee ttrraannssppoorrtt aanndd hhaannddlliinngg ooff eexxppoorrtt iirroonn oorree ffrroomm SSiisshheenn ttoo SSaallddaannhhaa ±± TThhee ccoonnttrraacctt ccaatteerrss ffoorr aa rraanndd--bbaasseedd ttaarriiffff aanndd ccaappaacciittyy ooff uupp ttoo 3355 mmiilllliioonn ttoonnss ppeerr aannnnuumm ((MMttppaa)) bbyy 22000099 ¥ ¥ IInn tthhee sshhoorrtt tteerrmm,, rraaiill ccaappaacciittyy wwiillll bbee iinnccrreeaasseedd ttoo tthhee ccoonnttrraaccttuuaall vvoolluummee ooff 2233..55 MMttppaa ¥ ¥ TThhee ppllaannnneedd ccaappaacciittyy rraammpp uupp ffrroomm tthhee ccuurrrreenntt 2299..00 MMttppaa wwiillll eennttaaiill uuppggrraaddiinngg aallll rraaiill wwaaggoonnss

Source: LED Regeneration Study – Sectoral overview, Investment Partner website, Kathu Gazette, company websites, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 58 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Target markets – Geography Manganese ore mined in South Africa is mostly exported, although local sales have been growing at a much higher rate than the exports

South African sales by geography for manganese ore: 1984-2004 CAGR 120% 1984-2004

R202,513 R721,509 R644,921 R934,498 R1,738,719 Total 11.3% 100% 15.7% 23.0% 34.2% 80% 41.2% 37.8% Local Sales 16.3% s e l a S

l a t 60% o T

f o

% 84.3% 40% 77.0% 65.8% 58.8% 62.2% Export Sales 9.6% 20%

0% 1984 1989 1994 1999 2004

Source: Department of Minerals and Energy: Statistical Tables 2005, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 59 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Target markets – Geography (continued) Iron ore export sales have grown at a higher rate than local sales over the last two decades

South African sales by geography for iron ore: 1984-2004 CAGR 120% 1984-2004

R202,513 R721,509 R644,921 R934,498 R1,738,719 Total 13.3% 100%

25.0% 22.8% 25.0% Local Sales 11.4% 34.2% 80% 35.5% s e l a S

l a t 60% o T

f o

% 40% 75.0% 77.2% 75.0% Export Sales 14.2% 64.5% 65.8%

20%

0% 1984 1989 1994 1999 2004

Source: Department of Minerals and Energy: Statistical Tables 2005, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 60 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Target markets – Demand Demand for iron ore has been higher and has grown faster than for manganese ore

South African sales of manganese ore: 1983-2004* 4

3 t

K 2

1 Export Sales CAGR 1983-2004: 0.9%

0 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

South African sales of iron ore: 1983-2004 30 Export Sales 25 Local Sales 20

t CAGR 1983-2004: 5.6% 15 K

10

5 CAGR 1983-2004: 1.9% 0 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003

Note: *No data are available for the local sales tonnes Source: Department of Minerals and Energy: Statistical Tables 2005, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 61 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Target markets – Competitors and competitiveness Costs, especially in terms of logistics, have decreased the area’s profitability for mining companies

zz KKggaallaaggaaddiihhaass oonnee ooff tthhee wwoorrlldd''ss hhiigghheesstt ddeelliivveerryy ccoossttss ±± ee..gg.. rraaiill ccoossttss hhaavvee ttrriipplleedd iinn tthhee llaasstt ffiivvee yyeeaarrss TThhrreeaatt ooff ccoommppeettiittoorrss zz AAuussttrraalliiaa Average costs for mining in Kgalagadi ±± CCoossttss ttoo eexxppoorrtt ttoo CChhiinnaa aarree oonnee--tthhiirrdd tthhee ccoossttss tthhaatt mmiinneess Mining Delivery iinn KKggaallaaggaaddii ssuussttaaiinn costs costs zz 45% 55% GGhhaannaa ±± LLoowweerr mmiinniinngg aanndd ddeelliivveerryy ccoossttss zz GGaabboonn ±± CCuurrrreennttllyy tthhee bbiiggggeesstt ccoommppeettiittoorr zz KKggaallaaggaaddiiiiss aatt tthhee wwrroonngg eenndd ooff tthhee ccoosstt ccuurrvvee ±± TThhee mmoorree tthhee aarreeaa pprroodduucceess,, tthhee lloowweerr tthhee wwoorrlldd pprriiccee,, tthhee ttiigghhtteerr tthhee mmaarrggiinnss

Source: South Africa Mineral Industry (SAMI) 2004/2005, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 62 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Barriers / Solutions related to inputs

Barrier / Constraint Potential solution

§ Low skilled labour available § Develop a mining logistics hub and / or provide mining-related training in association with tertiary institutions and ABET programmes § § Lack of un-mined areas with mineral deposits Diversify the local economy so that it does not depend solely on mining activities

Source: LED Regeneration Study – Sectoral overview, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 63 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Barriers / Solutions related to target markets

Barrier / Constraint Potential solution

§ Lack of infrastructure for mineral processing and § Development of sufficient processing infrastructure local beneficiation

§ Long distances to markets § Establish local markets through the local § Sometimes transporting goods to Johannesburg is processing and beneficiation of raw materials more expensive than to PE: although the distance is less, there are more corridors to cross

§ Mining monopoly § Provide for SMME development within the mining sector and / or provide shares to the local communities

Source: LED Regeneration Study – Sectoral overview, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 64 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Assessment of the potential of the mining sector Resources are available, but costs need to be reduced to regain global competitiveness

MMaannggaanneessee IIrroonn oorree

100% z 80% The demand for fine Sishen ore from 75% Chinese mills is increasing z Pacific Rim countries account for 50% almost 65% of export volumes 22% 25% z In 2004, in order to develop and expand the Sishen mine, Kumba 0% Resources agreed to invest in the rail South Africa's % of global SA's % of the world ore export market manganese resources and port infrastructure

MMoorree ssuuppppoorrtt iinn tteerrmmss ooff iinnffrraassttrruuccttuurree aanndd llooggiissttiiccss ttoo iinnccrreeaassee oouuttppuutt

§ GDP and job creation

§ Increased activity in the area and regained competitiveness would increase the GDP and create employment, although more indirectly than directly related to the mines

§ Beneficiation

§ New initiatives like United Manganese of Kalahari (UMK) are planning to build processing facilities in the area

§ This would stimulate other beneficiation activities and would ensure the development of the local economy by means of adding value to locally available resources Source: South Africa Mineral Industry (SAMI) 2004/2005, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 65 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Mining Kgalagadi Key contacts

Position / Name Reason to contact Organisation

Patrick Mabalane BHP Foundation § Involved in both mining and the BHP Foundation § Understands what funding requirements a project might have § Open to pursuing investment opportunities in the node as the area is strategic to their mining operation

Jeff Leader BHP Mine Manager § Knows the activities in Hotazel in detail for Hotazel § Can describe the manganese extraction industry, especially in Manganese Mines terms of costs and competitors (HMM)

UUP-WRD-Kgalagadi Profile-301106-IS 66 Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Kgalagadi poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Mining § Description of current value chain

§ Growth constraints and solutions

± Selected sector: Tourism § Potential for sector

§ Past and current efforts ± Selected sector: Agriculture

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Kgalagadi Profile-301106-IS 67 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Kgalagadi Pictorial overview

The Wonderwerk Caves The Kuruman Eye The Wonderwerk Caves The Kuruman Eye

The Moffat Mission in Kuruman The Raptor Rehabilitation Centre The Moffat Mission in Kuruman The Raptor Rehabilitation Centre

The absolute The absolute majority live in rural majority live in rural areas areas

UUP-WRD-Kgalagadi Profile-301106-IS 68 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Kgalagadi Overview of the tourism sector

IInnppuutt PPrroodduuccttiioonn TTaarrggeett mmaarrkkeettss

WWhhaatt ddoo tthheeyy ddoo // WWhhoo ddoo tthheeyy sseerrvvee // WWhhaatt ddoo tthheeyy rreellyy oonn?? pprroodduuccee?? ttaarrggeett // sseellll ttoo??

z The Kalahari ªbushveldº z Accommodation: z The node is visited by z The Moffat Mission in ± B&Bs and guest houses both domestic and Kuruman can be found mainly in international tourists, including: z The Raptor Kuruman Rehabilitation Centre ± However, most of them ± Tourists driving from Johannesburg / z The Wonderwerk Caves accommodate and are designed for contractors / Pretoria to Namibia, z The Kuruman Eye long-term renters rather who decide to make a than tourists stop and spend one night z Some niche markets are pursued: ± German, Belgian and ± Adventurous tourism British second- comers, who look for ± Green tourism niche activities / ± Wildlife / country life experience experience Source: Kgalagadi DM Tourism Market Study, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 69 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Kgalagadi Inputs – Kalahari Raptor Rehabilitation Centre and the Kuruman Eye Main attractions within a few kilometres of Kuruman

KKaallaahhaarrii RRaappttoorr RReehhaabbiilliittaattiioonn CCeennttrree TThhee KKuurruummaann EEyyee § § § § TThhee cceennttrree iiss ssiittuuaatteedd oonn aa 660000 hhaa ggaammee rreesseerrvvee TThhee EEyyee iiss aa nnaattuurraall uunnddeerrggrroouunndd ffoouunnttaaiinn ddeelliivveerriinngg § § IItt ccaarreess ffoorr iinnjjuurreedd aanndd oorrpphhaanneedd bbiirrddss ooff pprreeyy,, 2200--3300 mmiilllliioonn lliittrreess ooff ccrryyssttaall cclleeaarr wwaatteerr ddaaiillyy pprreeddaattoorrss aanndd ssmmaallll mmaammmmaallss ±± AAppppaarreennttllyy,, iitt iiss tthhee bbiiggggeesstt nnaattuurraall ffoouunnttaaiinn iinn tthhee § § RReessiiddeennttss iinncclluuddee:: MMaarrttiiaall,, BBllaacckk,, SSnnaakkee aanndd TTaawwnnyy ssoouutthheerrnn hheemmiisspphheerree § eeaagglleess,, SSppootttteedd aanndd GGiiaanntt EEaaggllee oowwllss,, ffaallccoonnss,, eettcc.. § LLooccaatteedd iinn tthhee cceennttrree ooff KKuurruummaann;; tthhee TToouurriisstt § § SSppaacciioouuss aavviiaarriieess ffuulll ooff CCaammeelltthhoorrnn ttrreeeess aarree sseett uupp IInnffoorrmmaattiioonn CCeennttrree iiss bbaasseedd nneexxtt ttoo iitt § § § § VVuullttuurreess hhaavvee tthheeiirr oowwnn ccaammpp WWaass ddiissccoovveerreedd bbyy SSaammuueell DDaanniieell iinn 11880011 § § § § AA pprrooggrraammmmee ffoorr sscchhoooollss iiss rruunn aanndd tthhee eedduuccaattiioonn IItt iiss ppooppuullaatteedd bbyy ggoollddffiisshh,, ccaarrpp,, bbaarrbbeell aanndd bblluuee cceennttrree iilllluussttrraatteess tthhee mmaajjoorr tthhrreeaattss ttoo tthhee bbiirrddss ooff pprreeyy kkuurrppeerr § § PPrrooccllaaiimmeedd aa NNaattiioonnaall MMoonnuummeenntt iinn 11999922

Source: Raptor Centre brochure, Kuruman brochure, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 70 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Kgalagadi Inputs – Wonderwerk Caves and Kuruman Moffat Mission Outside Kuruman, the Caves and the Mission are the other main attractions of the area

WWoonnddeerrwweerrkk CCaavveess KKuurruummaann MMooffffaatt MMiissssiioonn § § § § SSiittuuaatteedd 4433 kkmm ffrroomm KKuurruummaann TThhee mmiissssiioonn wwaass eessttaabblliisshheedd iinn 11881166 § § § § WWaatteerr aanndd ggaass wweerree rreessppoonnssiibbllee ffoorr tthhee ffoorrmmaattiioonn ooff SSccoottttiisshh mmiissssiioonnaarryy DDrr RRoobbeerrtt MMooffffaatt aanndd hhiiss wwiiffee tthhee ccaavvee aarrrriivveedd iinn KKuurruummaann iinn 11882200 § § § § SSeevveerraall aarrcchhaaeeoollooggiiccaall eexxccaavvaattiioonnss;; ffiinnddss aarree kkeepptt iinn MMooffffaatt ttrraannssllaatteedd tthhee ffiirrsstt BBiibbllee iinnttoo SSeettsswwaannaa aanndd tthhee MMccGGrreeggoorr MMuusseeuumm iinn KKiimmbbeerrlleeyy pprriinntteedd iitt oonn hhiiss oowwnn pprreessss § ±± BBuusshhmmaann hhaaiirr,, ssttoonnee aarrtteeffaaccttss,, ddeeccoorraatteedd oossttrriicchh § MMooffffaatt cchhuurrcchh wwaass ccoommpplleetteedd iinn 11883388 § eegggg sshheellllss,, eennggrraavveedd ssttoonneess,, ppoolllleenn ddaattiinngg bbaacckk § TThheeiirr ddaauugghhtteerr''ss mmaarrrriiaaggee ttoo eexxpplloorreerr DDaavviidd 440000,,000000 yyeeaarrss,, BBuusshhmmeenn ppaaiinnttiinnggss,, aanniimmaall bboonneess LLiivviinnggssttoonnee ttooookk ppllaaccee iinn tthhee MMooffffaatt cchhuurrcchh § § § TThheerree iiss aa ssttaallaaccttiittee wwhhiicchh ggrroowwss dduurriinngg tthhee rraaiinnyy § PPrrooccllaaiimmeedd aa NNaattiioonnaall MMoonnuummeenntt iinn 11993399 sseeaassoonn

Source: Kuruman Moffat Mission - A historical survey, Kuruman brochure, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 71 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Kgalagadi Production – Accommodation in Kuruman Bed & Breakfasts and guest houses are very common in Kuruman, although they seem to target contractors and temporary workers rather than tourists

BBeedd && BBrreeaakkffaasstt CChhaalleettss aanndd ccaarraavvaann ppaarrkkss GGuueesstt hhoouusseess

zz SSiinnggllee rroooomm:: oonn aavveerraaggee zz CCaarraavvaann ssttaanndd:: RR5500 zz SSiinnggllee rroooomm:: oonn aavveerraaggee RR117700,, rraannggee bbeettwweeeenn zz SSiinnggllee rroooomm:: RR330000 RR220000,, rraannggee bbeettwweeeenn RR112200--RR220000 RR114400--RR227755 zz DDoouubbllee rroooomm:: RR444400 zz DDoouubbllee rroooomm:: oonn aavveerraaggee zz DDoouubbllee rroooomm:: oonn aavveerraaggee zz RRoooomm ffoorr 33--44 ppeeooppllee:: RR444400 RR220000,, rraannggee bbeettwweeeenn RR227700,, rraannggee bbeettwweeeenn zz Chalets: RR118800--RR338800 Chalets: RR118800--RR336600 ±± 33--bbeedd cchhaalleett:: RR117766 zz BBrreeaakkffaasstt:: rraannggee bbeettwweeeenn zz BBrreeaakkffaasstt:: rraannggee bbeettwweeeenn RR2200--RR4400 ±± 44--bbeedd cchhaalleett:: RR221122--RR224466 RR2255--RR4400

HHootteellss aanndd mmootteell SSeellff--ccaatteerriinngg ffaacciilliittiieess

zz Single room: range between Single room: range between GGuueesstt ffaarrmmss // llooddggeess WWoonnddeerrwweerrkk CCaavveess RRaappttoorr CCeennttrree RR111100--RR227755 zz SSiinnggllee ffllaatt:: oonn zz TThhrreeee cchhaalleettss ffoorr zz OOnnee cchhaalleett zz DDoouubbllee rroooomm:: rraannggee average up to 4 people z bbeettwweeeenn RR115500--RR443300 average up to 4 people z UUpp ttoo 22 ppeeooppllee RR114400--RR115500 zz R200 single z zz Three main facilities: R200 single z RR770000 ppeerr nniigghhtt Three main facilities: z z DDoouubbllee ffllaatt // zz R300 for 2 ±± EEllddoorraaddoo MMootteell ((33--ssttaarr)) R300 for 2 22 ppeeooppllee:: rraannggee ppeeooppllee ±± KKggaallaaggaaddii HHootteell ((22--ssttaarr)) bbeettwweeeenn zz RR337755 uupp ttoo 44 ±± WWrreenncchhvviillllee:: NNoorrtthh SSttaarr RR220000--RR226600

Source: Kuruman brochure, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 72 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Kgalagadi Overview of target markets Tourists on the way to Namibia and Botswana and contractors are critical sources zz MMaarrkkeettss // CCuussttoommeerrss ±± MMoosstt vviissiittoorrss aarree ddoommeessttiicc ttrraavveelllleerrss eessppeecciiaallllyy iinn tthhee ppeeaakk sseeaassoonn ((mmiidd JJuullyy ±± mmiidd OOccttoobbeerr))

zz MMaarrkkeett sseeggmmeennttss ±± DDoommeessttiicc ((ffrroomm JJoohhaannnneessbbuurrgg)) aanndd ffoorreeiiggnn ttoouurriissttss oonn tthhee rrooaadd ttoo NNaammiibbiiaa aanndd BBoottsswwaannaa aanndd wwiilllliinngg ttoo ssttoopp oovveerr ±± NNiicchhee mmaarrkkeettss:: eeccoo--ttoouurriissmm,, aaddvveennttuurree rroouutteess,, hhiissttoorriiccaall // aarrcchhaaeeoollooggiiccaall ssiitteess ±± BBuussiinneessssmmeenn aanndd ccoonnttrraaccttoorrss wwhhoo nneeeedd ttoo rreessiiddee iinn tthhee aarreeaa ffoorr ssoommee ttiimmee

zz MMaarrkkeettiinngg // TTaarrggeett aarreeaass ±± MMaarrkkeettiinngg iinniittiiaattiivveess aarree ppoooorrllyy mmaannaaggeedd oorr iinneeffffeeccttiivvee ±± PPrroodduuccttss sshhoouulldd bbee mmuucchh mmoorree iinntteeggrraatteedd aanndd ccoo--oorrddiinnaatteedd

zz CCoommppeettiittoorrss // TThhrreeaatt ooff ssuubbssttiittuuttee pprroodduuccttss ±± NNaattuurree aanndd ggaammee rreesseerrvveess wwhhiicchh ooffffeerr tthhee ssaammee wwiillddlliiffee // ccoouunnttrryylliiffee eexxppeerriieennccee ±± TThhee KKggaallaaggaaddii TTrraannssffrroonnttiieerr PPaarrkk,, wwhhiicchh iiss mmoossttllyy oouuttssiiddee tthhee nnooddee

Source: Kgalagadi Municipality LED Strategy, Kgalagadi Tourism Market Survey, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 73 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Kgalagadi Target markets Domestic travellers are the main market for Kgalagadi, although some European tourists stop over on their way to Namibia and Botswana

Visitor statistics of Kgalagadi: July 2001-June 2002 450 54% 47% Other 47% 391 Netherlands 352 Europe and UK 5.9% RSA 11.3% 11.1% 300 266 28.1% 2.3% 6.8% Visitors 14.3% 82.9% 150

60.8% 76.7%

0 July - October 2001 November 2001 - February March - June 2002 2002

Source: Kgalagadi Municipality LED Strategy, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 74 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Kgalagadi Barriers / Solutions related to inputs

Barrier / Constraint Potential solution

§ Infrastructure: Roads § Address the issues ± Some of the main attractions (i.e. Kuruman ± The district will need to work with the Department Raptor Rehabilitation Centre) can only be of Transport and other relevant stakeholders to reached with a 4x4 vehicle prioritise improvements to the road network and ± Sometimes, even with a 4x4, it is get extremely initiate the required road projects difficult, especially when rainy ± Also, prioritisation of basic services provision is

§ critical Infrastructure: Services ± In specific areas like the Moshaweng Local Municipality, backlogs are severe ± This means that opportunities in the tourism sector are constrained by inadequate or non-existent access to telecommunications, water and electricity

§ Lack of information § Develop fully operational tourist information ± Tourist information centres are not efficiently centres alongside a database operated ± Undertake a survey and assessment of available ± Limited availability of tourism information resources both in terms of attractions and staff negatively impacts ability to plan strategically ± Undertake a detailed needs analysis ± Upgrade of tourist information centre in Kuruman

Source: Kgalagadi Municipality LED Strategy, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 75 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Kgalagadi Barriers / Solutions related to target markets

Barrier / Constraint Potential solution

§ No district tourism associations in the area § Establishment of a Kgalagadi District Tourism ± Information is not shared Association ± Marketing is not as effective as it could be ± Have a more effective joint marketing of the node ± Services are not improved ± Facilitate the information sharing between all the actors involved in the sector

§ Weak competitive position § Develop an aggressive integrated strategy ± No unique selling proposition ± More focused marketing efforts ± Remote location from main economic centres ± Integrate the various products into one package

§ Tourists in transit § Prolong the journey ± The length of stay of the traveller to Namibia or ± Package a meander option, where tourists in Botswana is limited transit could consider a second overnight stop

§ Limited economic benefit from contractors’ / § Tailor tourism options visitors’ tourism ± Identify and promote activities relevant to the ± The majority of the area's tourists are contractors contractors segment to induce incremental value and temporary workers ± Studies show that 80% of guests are visitors or contractors of the mines

Source: Kgalagadi Municipality LED Strategy, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 76 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Kgalagadi Assessment of the potential of the tourism sector The key to success is to strategically package and sell tourism products aimed at the few niche markets available for the area

EEccoo--ttoouurriissmm AAddvveennttuurree rroouuttee HHiissttoorryy // AArrcchheeoollooggyy § § § s s In the western parts of the Related activities: Several sites of u u c

c node archeological and

o ± Mining tours (i.e. o f f palaeontological ± The least populated Kumba Resources and o o t importance t

and most pristine Kathu mines) e e r

r natural environments in ± Field work and

e ± 4x4 routes and trails e

h the node research ongoing h (i.e. potentially in § § W W Includes hunting and Kiangkop) Cultural and historical game farming ± Hiking trails (three attractions are either already exist) present or planned

SSttrraatteeggiicc ppaacckkaaggiinngg aanndd mmaarrkkeettiinngg

z More people visiting ± Higher number of tourists going to Namibia and Botswana would stop over z Longer stays ± The average stay would rise from one to two to three nights, given the activities available in the area z Higher spending ± Both per capita and total spending in the area would increase enormously

Source: Kgalagadi Municipality LED Strategy, Kgalagadi Tourism Market Survey, Monitor interviews, Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 77 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Kgalagadi Barriers / Solutions to investments

Idea Business plan Funding Implementation

The quality of the basic People have no Funding often goes to No real integration infrastructure (road, experience of writing a projects that are not able among structures and water, etc.) often limits proper business plan to sustain themselves actors involved in the the ideas put forward by sector entrepreneurs Blockages / Barriers There is a lack of creativity with a pronounced (and perhaps repetitive) focus on certain areas Municipality initiative to Workshops and training Mandate feasibility Combine all tourism guarantee the basic offered by the Chamber studies to determine the structures in the district infrastructure of Commerce economic rationale and into one body sustainability of Potential Map out existing proposed projects solutions attractions to identify potential gaps

Source: Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 78 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Kgalagadi Key contacts

Position / Name Reason to contact Organisation

Zebo Tshetlho LED manager § Involved with LED projects, which are often related to the tourism sector § Can describe potential and constraints of the sector in the area

Amina Banoo Kuruman Moffat § Has been working at the Moffat Mission for several years Mission § Knows tourists' interest in visiting Kgalagadi receptionist § Can describe source markets for tourism in the area

N Ditshetelo Moshaweng Local § Works in the real ªpoverty nodeº, Moshaweng Local Municipality Municipality § Knows about tourism potential and projects happening in the area municipal manager (e.g. the Kiangkop development)

Jaison Finlay Kuruman Raptor § Manages the Raptor Centre together with his parents Rehabilitation § Is involved in preserving the birdlife and wildlife in the area Centre

UUP-WRD-Kgalagadi Profile-301106-IS 79 Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Kgalagadi poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Mining

± Selected sector: Tourism § Description of current value chain

§ Growth constraints and solutions

± Selected sector: Agriculture § Potential for sector

§ Past and current efforts z Investment opportunities

z Summary

z Appendix

UUP-WRD-Kgalagadi Profile-301106-IS 80 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Kgalagadi Overview of the agriculture sector

IInnppuutt PPrroodduuccttiioonn TTaarrggeett mmaarrkkeettss

WWhhaatt ddoo tthheeyy ddoo // WWhhoo ddoo tthheeyy sseerrvvee // WWhhaatt ddoo tthheeyy rreellyy oonn?? pprroodduuccee?? ttaarrggeett // sseellll ttoo?? § § Area has limited § Production mainly Adult cattle and calves potential for agriculture livestock: are sold at the auctions ± Farming conditions ± Cattle within the district not suitable ± Sheep ± Some cattle is sold § Availability of labour in ± Goats to the abattoir in Kuruman the area ± Game § Good road linkages to ± Feedlots outside the Gauteng and the Free district State § Commercial farming and subsistence farming occurs in the area

Source: Monitor interviews UUP-WRD-Kgalagadi Profile-301106-IS 81 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Kgalagadi Inputs Kgalagadi has inputs constraints which make the development of the agricultural sector difficult

OOvveerrvviieeww § § CClliimmaattee –– SSeemmii--aarriidd wwiitthh hhoott ssuummmmeerrss((2299°°CC––3377°°CC)) aanndd ccooooll ttoo ccoolldd wwiinntteerrss ((77°°CC––99°°CC)) –– SSeeaassoonnaall rraaiinnffaalll mmeeaann iiss 337733..33 mmmm;; hhoowweevveerr,, eevvaappoorraattiioonn iiss hhiigghheerr tthhaann pprreecciippiittaattiioonn –– LLooww rriisskk ooff ffrroosstt § § SSooiill aanndd tteerrrraaiinn –– llaanndd iiss ffllaatt ((ssoommee ppaarrttss ddeesseerrtt--lliikkee)) –– SSooiill iiss ttoooo ssaannddyy ffoorr ccrroopp ffaarrmmiinngg –– PPaarrttss ooff ggrraazziinngg llaanndd aarree iinnvvaaddeedd bbyy aaccaacciiaa ssccrruubb//ttrreeeess § § OOtthheerr –– SShhoorrttaaggee ooff wwaatteerr––hheennccee tthhee aarreeaa iiss rreelliiaanntt oonn ffoouunnttaaiinnss aanndd bboorreehhoolleess ((wwaatteerr ttaabbllee iiss ddrrooppppiinngg)) –– RReessoolluuttiioonn ooff llaanndd ccllaaiimmss iinn tthhee aarreeaa iiss ssllooww –– EEmmeerrggiinngg ffaarrmmeerrss hhaavvee lliimmiitteedd sskkiillllss –– IInnffrraassttrruuccttuurree iiss ddeetteerriioorraattiinngg,, ee..gg.. rrooaadd nneettwwoorrkk

Source: Monitor interviews UUP-WRD-Kgalagadi Profile-301106-IS 82 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Kgalagadi Production Subsistence farming occurs mainly in Moshaweng, while commercial farming occurs in the rest of the district

SSuubbssiisstteennccee ffaarrmmiinngg ¨ ¨ OOccccuurrss iinnMMoosshhaawweenngg LLooccaall MMuunniicciippaalliittyy ¨ ¨ MMaaiinnllyy lliivveessttoocckk,, ppoouullttrryy aanndd vveeggeettaabblleess ±± WWidideellyy ddiissppeerrsseedd ppooppuullaattiioonn ±± OOvveerrggrraazziinngg pprreevvaalleenntt ¨ ¨ LLaacckk ooff sskkiilllss rreessuulltteedd iinn bbaadd ffaarrmmiinngg pprraaccttiicceess aanndd llooww yyiieellddss

CCoommmmeerrcciiaall ffaarrmmiinngg ¨ ¨ OOccccuurrss iinn DDiissttrriicctt MMaannaaggeemmeenntt AArreeaa aannddGGaa-- SSeeggoonnyyaannaammuunniicciippaalliittyy ±± LLaarrggee ffaarrmm ssiizzeess ±± FFooccuuss oonn lliivveessttoocckk pprroodduuccttiioonn ¨ ¨ FFaarrmmiinngg ooppeerraattiioonnss aarree cclloossee ttoo bbrreeaakkeevveenn Mainly commercial Mainly subsistence rreefflleeccttiinngg aa eessttimimaatteedd 22%% farmers farmers ttoo 44%% rreettuurrnn iinn ggoooodd yyeeaarrss

Source: Monitor interviews and Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 83 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Kgalagadi Production (continued)

PPrroodduuPccrttoiioodnnu caatnniioddn PPrriicceess

LLiivveessttoocckk CCrrooppss OOtthheerr ¨ ¨ ¨ ¨ LLiivveessttoocckk ffaarrmmiinngg ddoommiinnaatteess tthhee nnooddee ¨ LLiimmiitteedd pprroodduuccttiioonn ooff mmaaiizzee ffoorr ggrraaiinn,, ¨ VVeeggeettaabbllee pprroodduuccttiioonn bbyy ssoommee ±± CCaattttllee 8800%% ((eesstt.. 118800,,000000 lliivveessttoocckk aanndd wwhheeaatt ssuubbssiisstteennccee ffaarrmmeerrss units (LSU)) units (LSU)) ¨ ±± MMaaiizzee ffoorr ggrraaiinn pprroodduuccttiioonn ¨ NNoo pprroodduuccttiioonn ddaattaa aarree aavvaaiillaabbllee ±± SShheeeepp 1122%% ((eesstt.. 2277,,000000 LLSSUU)) eessttiimmaatteedd aatt 220000 mmeettrriicc ttoonnnneess ±± GGooaatt 44%% ((eesstt.. 99,,000000 LLSSUU)) ±± WWhheeaatt pprroodduuccttiioonn eessttiimmaatteedd aatt 112244 ±± GGaammee 44%% ((eesstt.. 99,,000000 LLSSUU)) mmeettrriicc ttoonnnneess ¨ ¨ PPoouullttrryy ffaarrmmiinngg bbyy ssuubbssiisstteennccee ffaarrmmeerrss

PPPrriircooeddsuu cactntiiodon np araonnfddiit aPPbrriiicllciieteyss

LLiivveessttoocckk CCrrooppss OOtthheerr ¨ ¨ ¨ ¨ ¨ TThhee ccaattttllee iiss ssoolldd aatt aauuccttiioonnss wwiitthhiinn ¨ HHiigghh iinnppuutt ccoossttss aanndd bbaadd ffaarrmmiinngg NNoo ccoonnttrrooll oovveerr pprriicceess aanndd tthhee nnooddee aanndd ttoo tthheeKKuurruummaannaabbaattttooiirr ccoonnddiittiioonnss nneeggaattiivveellyy aaffffeecctt tthhee ddeeppeennddeenntt oonn ccoonnssuummeerrss iinn tthhee aatt mmaarrkkeett--rreellaatteedd pprriicceess pprrooffiittaabbiilliittyy ooff ccrroopp ffaarrmmiinngg llooccaall aarreeaa ¨ ¨ ¨ ¨ ¨ SSuubbssiisstteennccee ffaarrmmeerrss tteenndd ttoo ggeett lloowweerr ¨ NNoo pprriicciinngg ddaattaa aarree aavvaaiillaabbllee NNoo pprriicciinngg ddaattaa aarree aavvaaiillaabbllee pprriicceess dduuee ttoo ccoonncceerrnnss oovveerr aanniimmaall hheeaalltthh,, ggrraazziinngg rreeggiimmeennss aanndd hheerrdd iimmpprroovveemmeenntt

Source: Monitor interviews, Monitor analysis, Status Quo Report UUP-WRD-Kgalagadi Profile-301106-IS 84 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Kgalagadi Target markets A major portion of the production is sold to buyers outside the node

zz MMaarrkkeettss // ccuussttoommeerrss ±± CCaattttllee © © MMaajjoorriittyy ooff tthhee ccaallvveess aarree ssoolldd aatt aauuccttiioonnss iinn KKuurruummaann,, wwhhiicchh aarree ttaakkeenn oouutt ooff tthhee nnooddee © © FFeeeeddlloottss cclloosseerr ttoo BBllooeemmffoonntteeiinn aanndd JJoohhaannnneessbbuurrgg aarree ttyyppiiccaall bbuuyyeerrss © © SSoommee ccaattttllee iiss ssoolldd ttoo aabbaattttooiirrss iinn KKuurruummaann aanndd CChhrriissttiiaannaa.. TThhee KKuurruummaann aabbaattttooiirr oonnllyy hhaass tthhee ccaappaacciittyy ttoo mmeeeett llooccaall ddeemmaanndd hheennccee ccaattttllee iiss sseenntt ttoo CChhrriissttiiaannaa,, wwhhiicchh iiss oouuttssiiddee tthhee nnooddee ±± SShheeeepp © © MMaajjoorriittyy ssoolldd aatt aauuccttiioonnss iinn UUppiinnggttoonn © © MMeeaatt pprroocceessssiinngg ppllaannttss iinn UUppiinnggttoonn aallssoo bbuuyy ddiirreeccttllyy ffrroomm ffaarrmmeerrss ±± GGooaattss © © GGooaattss aarree ssoolldd aatt aauuccttiioonnss ttoo bbuuyyeerrss ffrroomm KKZZNN sseerrvviicciinngg tthhee IInnddiiaann mmaarrkkeett © © SSoommee ggooaattss aarree ssoolldd ddiirreeccttllyy ttoo ccuussttoommeerrss iinn tthhee llooccaall aarreeaa ±± GGaammee © © GGaammee oonn ffaarrmmss iiss mmaaiinnllyy uusseedd ffoorr hhuunnttiinngg ppuurrppoossee © © TTaarrggeett mmaarrkkeett iinncclluuddeess mmaaiinnllyy ffoorreeiiggnn gguueessttss © © AA ssmmaallll ggaammee aauuccttiioonn iiss hheelldd oonnccee aa yyeeaarr iinn KKuurruummaann

Source: Monitor interviews UUP-WRD-Kgalagadi Profile-301106-IS 85 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Kgalagadi Barriers / Solutions related to inputs

Barrier / Constraint Potential solution

§ Poor basic infrastructure § Major upgrade of the basic services ± Many emerging farmers without access to proper drainage, roads, water supplies or electricity, especially in Moshaweng

§ Lack of skills § Training ± Many emerging black commercial farmers lack ± Municipality initiatives to build skills management and financial skills ± Mentorship programme ± Subsistence farmers apply bad farming practices, ± Increase the number of extension officers to assist e.g. overgrazing the agricultural sector

§ Lack of fertile land § Promote the use of fertilisers ± Soil types in the area are infertile for crop farming ± Provide adequate training to ensure fertilisers are used effectively and efficiently

§ Lack of water resources § Upgrade water supply ± Area is extremely dry with no major river ± Consider ways of channelling water from the fountains to surrounding farms

§ Lack of adequate equipment § Municipality and Dept of Agriculture to facilitate sharing ± Some emerging farmers do not possess or have of assets in the area by partnering emerging farmers access to implements and equipment, e.g. tractors with the larger commercial farmers § Provide a service based on the pay per use basis, e.g. tractors § Provide assistance in obtaining second-hand equipment

Source: Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 86 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Kgalagadi Barriers / Solutions related to target markets

Barrier / Constraint Potential solution

§ Low quality of produced products § Mentorship programme ± People tend to think that quantity is better than ± Utilise the knowledge of the commercial farmers quality ± Application of bad farming practices, e.g. overgrazing

§ Little value-add within the node § Processing within the node

§ Understanding of market § Train people to understand the market ± Emerging black commercial farmers and ± Teach people market dynamics and how to extract subsistence farmers sell to the local shop or direct a higher price for their products to people in the node at whatever price they are ± Gather people in co-ops to increase their offered buying/selling power

§ Infrastructure § Co-operatives ± High logistical cost of getting cattle to the ± Gather people to share the cost of getting people market/auction to the market ± Develop a collection network / service to get cattle to market and inputs to the farm

Source: Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 87 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Kgalagadi Assessment of the potential of the agriculture sector The key to success is to train the subsistence farmers and improve the processing capacity in the district s s u u c c EEmmeerrggiinngg ffaarrmmeerrss CCoommmmeerrcciiaall ffaarrmmeerrss o o f f

o o t t

z Upgrade infrastructure to z Promote the mentoring and e e r r e

e support the agricultural sector partnership model between the h h z established and emerging

W Mentorship programme to give W

/ /

people the right farming skills commercial farmers o o d

d z z Develop agricultural clusters in Develop a co-ordinated o o t t

production plan to optimise output

t areas where good farming t a a z

h conditions exist, e.g. around Develop agri-processing capacity h W W fountains within the node

AAggrriiccuullttuurraall sseeccttoorr hhaass lliimmiitteedd ppootteennttiiaall iinn tteerrmmss ooff ffuurrtthheerr ggrroowwtthh

zz IInnccrreeaassiinngg tthhee pprroodduuccttiivviittyy ooff tthhee ccoommmmuunnaall ffaarrmmeerrss wwoouulldd lleeaadd ttoo ssoommee jjoobb ccrreeaattiioonn aanndd iimmpprroovveedd ffoooodd sseeccuurriittyy zz MMoorree eeffffiicciieenntt uussee ooff aaggrriiccuullttuurraall iinnffrraassttrruuccttuurree // rreessoouurrcceess,, ee..gg.. wwaatteerr ssoouurrcceess zz SSuubbssiisstteennccee ffaarrmmeerrss wwiillll bbeenneeffiitt ffrroomm ccoonnssiisstteenntt hhiigghh qquuaalliittyy oouuttppuutt zz PPrroocceessssiinngg ooff pprriimmaarryy oouuttppuutt wwiitthhiinn tthhee nnooddee wwiillll rreessuulltt iinn ggrreeaatteerr vvaalluuee bbeeiinngg rreettaaiinneedd aanndd ccoouulldd ccrreeaattee ssoommee jjoobbss

Source: Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 88 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Kgalagadi Barriers / Solutions to investments

Idea Business plan Funding Implementation

People have no People have no security When implementing experience of writing a to warrant a loan from projects for emerging proper business plan the bank farmers they are often left alone without the Blockages / necessary network Barriers

Municipality initiatives Workshops and training Locally based initiatives Mentorship programme to provide basic programmes for investment within the with commercial farmers infrastructure node Joint ventures with larger farmers Potential Co-operatives to share solutions experiences

Source: Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 89 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Kgalagadi Key contacts

Position / Name Reason to contact Organisation

Louis Hauman Chairman of § Knowledge of farming practices in the area Kuruman Farmers’ § Understanding of the issues and challenges faced by the Union established commercial farmers in Kgalagadi

Mr Wayand Nel Northern Cape § Knowledge of the agricultural sector in the district Department of § Understanding of the agricultural initiatives undertaken in the area Agriculture

Mr Tumo Jantjie Poultry Abattoir § Understanding of the issues and challenges faced by the emerging anager black poultry farmers, as well as the abattoir

Jan Zandberg Siyatusha Agri § Aware of the activities of the subsistence farmers in the Consultants – Moshaweng area Managing Director § Actively trying to establish farming activities in the district

UUP-WRD-Kgalagadi Profile-301106-IS 90 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Kgalagadi Stranded projects Many projects have failed in the implementation phase

IIddeeaa BBuussiinneessss ppllaann FFuunnddiinngg IImmpplleemmeennttaattiioonn

RReeaassoonnss ffoorr ffaaiilluurree ¨ ¨ LLaacckk ooff ccaappaabbiilliittyy wwiitthhiinn tthhee mmuunniicciippaalliittyy ±± PPrroojjeeccttss aarree iinniittiiaatteedd wwiitthhoouutt dduuee ccoonnssiiddeerraattiioonn ooff tthhee ccoonnttiinnuueedd ssuussttaaiinnaabbiilliittyy aanndd eeccoonnoommiicc vviiaabbiilliittyy ±± LLaacckk ooff ffooccuuss oonn tthhee ooppeerraattiioonnaall aassppeeccttss,, ee..gg.. aacccceessss ttoo mmaarrkkeett ±± LLaacckk ooff uunnddeerrssttaannddiinngg ooff tthhee ssyysstteemmssttoo ssuuppppoorrtt aa ccoommmmeerrcciiaall vveennttuurree ¨ ¨ LLaacckk ooff oowwnneerrsshhiipp aanndd ccoommmmiittmmeenntt ±± BBeenneeffiicciiaarriieess ooff mmuunniicciippaalliittyy--ddrriivveenn pprroojjeeccttss ddoo nnoott ttaakkee oowwnneerrsshhiipp ooff tthhee pprroojjeeccttss ±± LLaacckk ooff uunnddeerrssttaannddiinngg ooff tthhee ggoovveerrnnaannccee rreeqquuiirreemmeennttsswwiitthh rreessppeecctt ttoo ooppeerraattiinngg aa lleeggaall eennttiittyy ¨ ¨ LLaacckk ooff sskkiilllss ±± TThhee bbeenneeffiicciiaarriieess aarree nnoott aaddeeqquuaatteellyy ttrraaiinneedd wwiitthh rreessppeecctt ttoo mmaannaaggeemmeenntt

Source: Monitor interviews UUP-WRD-Kgalagadi Profile-301106-IS 91 Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Kgalagadi poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Mining

± Selected sector: Tourism

± Selected sector: Agriculture

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Kgalagadi Profile-301106-IS 92 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Kgalagadi Summary of identified investment opportunities

AAggrriiccuullttuurree // AAggrrii--pprroocceessssiinngg TToouurriissmm

Opportunity Potential Opportunity Potential

Wonderwerk Caves Vegetable farming expansion

Livestock abattoir Bothithong Cultural Village

Goat processing plant

Poultry cluster

ªªPPootteennttiiaallººiiss aa qquuaalliittaattiivvee aasssseessssmmeenntt ooff aa ggiivveenn pprroojjeecctt''ss aattttrraaccttiivveenneessss bbaasseedd oonn iittss eemmppllooyymmeenntt = Low Potential ppootteennttiiaall aanndd lliikkeelliihhoooodd ooff ssuucccceessss rreellaattiivveettoo ootthheerr iinnvveessttmmeenntt ooppppoorrttuunniittiieess iinn tthhee sseeccttoorr = High Potential

UUP-WRD-Kgalagadi Profile-301106-IS 93 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Kgalagadi Vegetable farming

Level of action Vegetable Farming Business plan formulation complete? VVeeggeettaabbllee FFaarrmmiinngg required from Scale AAggrriiccuullttuurree Greenfield x Private sector # of Jobs All funding in place?

MMaannyyeeddiinngg Brownfield Public sector Funds Req'd Appropriate operational capacity available?

Concept Data and commentary

Description ¨ The Kgalagadi District Municipality together with the local community is trying to establish a 135 ha vegetable farm in Manyeding ¨ The project is being done in phases ¨ Phase one involved an investment of R5 million to construct a dam and water pipeline to transport water from a nearby fountain to the farm. Majority of the funding has been provided by the Department of Agriculture in the Northern Cape ¨ Post Harvest Technologies have expressed an interest in establishing a processing plant at the farm to produce vegetable puree for the European market The dam providing irrigation ¨ An opportunity exists in participating in phase two which involves establishing water farming operations at estimated cost of R5 million (land preparation, inputs, training, irrigation, working capital, etc.)

Economic rationale ¨ The availability of a reliable water supply ¨ Secure market for the produce through Post Harvest Technologies

Employment ¨ Potential for the employment of 280 people

Enabling conditions ¨ Agreement on the construction of the processing plant ¨ Updated business case demonstrating the sustainability of the project within a reasonable time frame Contact details Mr Zebo Tshetho, LED Manager, Kgalagadi District Municipality, (053) 712-1001 Arable land around the dam

UUP-WRD-Kgalagadi Profile-301106-IS 94 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Kgalagadi Poultry cluster

Level of action Poultry cluster Business plan formulation complete? PPoouullttrryy cclluusstteerr required from Scale AAggrriiccuullttuurree Greenfield x Private sector # of Jobs All funding in place?

MMaarruuppiinngg Brownfield Public sector Funds Req'd Appropriate operational capacity available?

Concept Data and commentary

Description ¨ The Kgalagadi District Municipality has established a poultry abattoir in Maruping ¨ The abattoir has an existing capacity of approximately 200 chickens per day which could be doubled if further trays and refrigeration is provided ¨ Currently the abattoir is under-utilised due to a shortage of throughput; only operates for ten days a month ¨ In order to increase the number of birds available for processing a poultry cluster is proposed. The cluster will consolidate all the small farmers in a central area and co-ordinate the supply of the birds to the abattoir

Chickens Economic rationale ¨ Consolidate the production in one area and achieve an economy of scale for the existing poultry abattoir ¨ Provide a market for the other failed poultry projects in the district

Employment ¨ Uncertain as it depends on the number of farms that operate within the cluster

Enabling conditions ¨ The existing poultry farmers must commit to supporting the development of the cluster ¨ The local market must be analysed to determine the level of demand and price elasticity Contact details Mr Zebo Tshetho, LED Manager Kgalagadi District Municipality, (053) 712-1001

UUP-WRD-Kgalagadi Profile-301106-IS 95 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Kgalagadi Goat processing plant

Level of action Kgalagadi Dipudi Project Business plan formulation complete? KKggaallaaggaaddii DDiippuuddii PPrroojjeecctt required from Scale AAggrriiccuullttuurree Greenfield x Private sector # of Jobs All funding in place?

BBeennddaall VViillllaaggee Brownfield Public sector Funds Req'd Appropriate operational capacity available?

Concept Data and commentary

Description ¨ The Kgalagadi District Municipality together with other stakeholders was Post Harvest instrumental in establishing a goat farming project which involved setting up 43 Technologies Goat Interest Groups with a membership of ranging from 10 to 40 farmers ¨ The farmers in the project want to extract great value by adding value to their output ¨ An opportunity exists for the establishment of a separate processing facility focusing on meat, leather, cashmere and diary production ¨ The business plan indicates an infrastructure funding requirement for primary production of R6m; feedlot R0.5m; tannery and cashmere R0.6m; abattoir R0.6m; dairy R0.6m and equipment of R0.4m

Goats in a paddock Economic rationale ¨ Provision of a production facility to support the existing goat farmers ¨ Ability to extract greater value by processing the goat meat and by-products further ¨ High demand for goat products

Employment ¨ The project will support 464 farmers and based on an assumption that each farmer could create two jobs, approximately 1,000 jobs could be created

Enabling conditions ¨ A marketing study is required to confirm the level of market demand ¨ Financial projections must be prepared using the output of the market study to support key assumptions ¨ The availability of goats from farmers must be analysed to ensure the Processed goat meat production capacity is utilised Contact details Mr Zebo Tshetho, LED Manager Kgalagadi District Municipality, (053) 712-1001

UUP-WRD-Kgalagadi Profile-301106-IS 96 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Kgalagadi Wonderwerk Caves expansion

Level of action Wonderwerk Caves Business plan formulation complete? WWoonnddeerrwweerrkk CCaavveess required from Scale TToouurriissmm Greenfield Private sector # of Jobs All funding in place?

OOuuttssiiddee KKuurruummaann Brownfield x Public sector Funds Req'd Appropriate operational capacity available?

Concept Data and commentary

Description ¨ Located 43 km south of Kuruman are the Wonderwerk Caves which are 25 m wide and 120 m long. Tourists to the area may view the inside of the cave and potentially stay at the site in self-catering accommodation ¨ Since the caves are located off the main road there is an opportunity to develop the site by upgrading the facilities at the site ¨ The upgrade could involve improvements to the accommodation, adding a restaurant and other recreational facilities focused on retaining visitors for a bed Wonderwerk Caves night

Economic rationale ¨ The Wonderwerk Caves are one of the district's major tourism attractions and do attract some visitors ¨ Ability to leverage an existing niche market travelling through the area

Employment ¨ Estimated ten jobs could be created

Enabling conditions ¨ The excavation being done within the caves must be completed and public access must be restored ¨ Development of a business plan and financial viability must be commissioned

Accommodation at the Contact details Mr Zebo Tshetho, LED Manager Kgalagadi District Municipality, (053) 712-1001 Wonderwerk Caves

UUP-WRD-Kgalagadi Profile-301106-IS 97 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Kgalagadi Bothithong Cultural Village

Level of action Bothithong Cultural Village Business plan formulation complete? BBootthhiitthhoonngg CCuullttuurraall VViillllaaggee required from Scale TToouurriissmm Greenfield x Private sector # of Jobs All funding in place?

KKiiaannggkkoopp Brownfield Public sector Funds Req'd Appropriate operational capacity available?

Concept Data and commentary

Description ¨ Development of a Bothithong Cultural Village and 4 x 4 route at Kiangkop located within the Moshaweng Local Municipality ¨ The village is expected to consist of four chalets, an interpretive centre, restaurant building, craft production centre and an open-air boma ¨ The project envisages the development of a cultural route linking the cultural village to other historical sites in the area, e.g. missionary graves, old church buildings, a look-out point, etc. ¨ The project will support the promotion of local pottery, arts and crafts, traditional food and drink, curio manufacturers and music and cultural dance ¨ Example of a cultural village 4 x 4 route will attract overnight guests at the cultural village ¨ A feasibility study commissioned by the municipality indicates that an investment of R5 million is required to establish the infrastructure

Economic rationale ¨ The area has currently no existing tourism assets although visitors do come to the area ¨ Area's scenic beauty and cultural heritage could be leveraged for tourism

Employment ¨ Potentially seven permanent positions and ten part-time positions

Enabling conditions ¨ Market study to confirm demand needs to be completed ¨ Business plan to be developed demonstrating viability ¨ The access roads to the proposed site need to be upgraded Example of traditional dancing Contact details Nomonde Ditshetelo, Municipal Manager, Moshaweng, (053) 773-9300

UUP-WRD-Kgalagadi Profile-301106-IS 98 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Kgalagadi Livestock Abattoir

Level of action Livestock Abattoir Business plan formulation complete? LLiivveessttoocckk AAbbaattttooiirr required from Scale AAggrriiccuullttuurree Greenfield Private sector # of Jobs All funding in place?

KKuurruummaann Brownfield x Public sector Funds Req'd Appropriate operational capacity available?

Concept Data and commentary

Description ¨ The agricultural sector of the node is based on livestock production ¨ A privately owned abattoir operates in Kuruman but is restricted in terms of its capacity and only caters for the demand of the local market ¨ The abattoir has only one production line which restricts its ability to process multiple types of animals, e.g. cattle, goats or sheep. In addition separate storage facilities are also required ¨ Due to the lack of capacity some commercial farmers use abattoirs outside the node, e.g. Christiana ¨ An opportunity exists for the expansion of the abattoir to ensure the needs of the farmers in the node are addressed Cattle in a feedlot ¨ Initial estimates indicate that approximately R20 million would be required for the upgrade

Economic rationale ¨ Since 98% of the agricultural production in the node relates to livestock product the demand for processing exists ¨ The processing of cattle, goats and sheep reduces the abattoir's reliance on cattle and improves its viability

Employment ¨ Potentially a further ten jobs could be created

Enabling conditions ¨ The existing owners of the Kuruman abattoir must agree to the expansion ¨ Commercial farmers must commit to supporting the processing facility within the node Contact details Lois Hauman, Commercial Farmer, (053) 751-1631 Example of an abattoir

UUP-WRD-Kgalagadi Profile-301106-IS 99 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Kgalagadi Legend

Title, name of investment opportunity BBiioo SSuuiissssee OOrrggaanniicc VVeeggeettaabblleess Indicates whether this opportunity is based on Main sector or industry the opportunity current or previous operations (brownfield), or is located in AAggrriiccuullttuurree Greenfield whether this opportunity requires building up a new business ‘from scratch’ (greenfield). Intuitive description of geographic location 2200kkmm ffrroomm VVrryyhheeiidd Brownfield x

= Unknown / Insufficient data ? to estimate

No additional Opportunity will Level of action Opportunity highly contribution fail if no additional required from endangered required assistance found Private sector Heavy / high-level No intervention Local assistance intervention Public sector required required required

No additional jobs 10-50 jobs 50---– 150 jobs 1-10 jobs created >150 jobs created Scale created created created # of Jobs No funding R10 million Funds Req’d required required required required required

Some financial Detailed financial Only idea exists and operational and operational aspects explore plans Business plan formulation complete? No funding / no Half of all funding No funding All funding in place? investors currently requirements requirements / all committed committed capital in place Appropriate operational capacity available? No management / Entrepreneurs / All necessary committed operators require expertise entrepreneur assistance available

UUP-WRD-Kgalagadi Profile-301106-IS 100 Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Kgalagadi poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Mining

± Selected sector: Tourism

± Selected sector: Agriculture

z Investment opportunities Understanding the Kgalagadi poverty node Potential sources of economic growth ± Short term z Summary Potential sources of economic growth ± Long term Assessment of current activities z Appendix What needs to be done now?

UUP-WRD-Kgalagadi Profile-301106-IS 101 Nodal Economic Profiling Project Business Trust and dplg, 2007 Summary Kgalagadi Understanding the Kgalagadi poverty node

Key observations from Kgalagadi Key characteristics of node

¨ The district comprises three local municipalities and one DMA (district management area) which is controlled by the Kgalagadi OOvveerrvviieeww District Municipality ¨ Moshaweng Local Municipality, which has 60% of the population, Commercial and lacks basic infrastructure and has the lowest economic activity subsistence farming

¨ GDP CAGR 1995-2004 is 2.4% compared with 1.2% for the Low level of skills

province Examples of the EEccoonnoommyy,, ¨ The economy of the node is driven by income from the mining mismanagement of oovveerrvviieeww sector (50% of GDP) assets ¨ Government is the main source of employment Growing mining sector ¨ The district is constrained by the lack of tourism assets Gravel roads in ¨ EEccoonnoommyy,, B&Bs / guest houses in the area support business travellers many areas ttoouurriissmm ¨ Tourists in the district are generally passing through en route to

other destinations, e.g. Namibia, Botswana Lack of tourism assets

¨ Farmers in the district focus on livestock farming (cattle, sheep, Desert-like goats, game) environment EEccoonnoommyy,, ¨ Agriculture is constrained by a lack of water, high temperatures aaggrriiccuullttuurree and bad soil conditions ¨ Primary production is sold to buyers outside the node for further processing

Source: Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 102 Nodal Economic Profiling Project Business Trust and dplg, 2007 Summary Kgalagadi Potential sources of economic growth – short term

Economic growth of firm in node

Increase sales? Decrease cost?

Purchases Labour Infra- Other Provide new Increase quality of structure product / service current offering

For Import Skills Other export substitution

Where to focus?

Agriculture

¨ Tourism Public sector Improve the cluster support to marketing ¨ approach with regards Package campaign of local to the subsistence accommodation with establishments farmers the other activities in ¨

¨ B&Bs Increase the local the area ¨ supply thus decreasing ¨ Develop products Tourism events the demand for around the niche imported goods markets which exist already Not a focus Key focus area area Source: Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 103 Nodal Economic Profiling Project Business Trust and dplg, 2007 Summary Kgalagadi Potential sources of economic growth – long term

Economic growth of firm in node

Increase sales? Decrease cost?

Purchases Labour Infra- Other Provide new Increase quality of structure product / service current offering Estimate of cost structure of average firm in node For Import Skills Other export substitution

Where to focus?

Agri-processing Mining beneficiation activities

¨ Increase infrastructure Manage to process ¨ provision agricultural goods that are These initiatives would add produced in the area value and stimulate the local ¨ Specific interventions in economy in terms of job

¨ the Moshaweng area After the import substitution creation and provision of ¨ in the short term, exporting skills Upgrade roads and of goods outside the node provision of basic ¨ might take place in the long They do not take place services term extensively but new actors coming in have already planned to do them Source: Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 104 Nodal Economic Profiling Project Business Trust and dplg, 2007 Summary Kgalagadi Assessment of current activities

Key observations from Kgalagadi

WWhhaatt iiss bbeeiinngg ddoonnee??

Agricultural projects are targeted towards poverty alleviation and social development

Municipality is actively trying to drive projects although the environment is difficult considering the constraints with respect to tourism and agriculture

The Moshaweng area has been prioritised for development in terms of services and infrastructure

Local municipalities are working with the mining companies to undertake projects

Strategic choice

Do more of Do different things; the same do things differently

¨ Continue to focus on agricultural projects with an economic perspective

¨ Engage mining companies in developing mining and processing operations

¨ Continue to cluster project initiatives to create economies of scale Source: Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 105 Nodal Economic Profiling Project Business Trust and dplg, 2007 Summary Kgalagadi What needs to be done now?

Key observations from Kgalagadi

SSoolluuttiioonnss ttoo ccoonnssttrraaiinnttss // iinnvveessttmmeenntt ooppppoorrttuunniittiieess

The district and local municipalities must become more efficient in dealing with the private sector when potential investment opportunities are being undertaken (i.e. reduce delays)

Focus on a few specific opportunities that prove to be both viable and sustainable

Key learning from past projects must be applied to guide future actions

Municipality must initiate projects but ensure that the beneficiaries take control and responsibility for future activities

Requires involvement of key stakeholders

Department of Agriculture Northern Cape

Department of Agriculture North West

Kgalagadi District Municipality

Department of Tourism Northern Cape

Kuruman Farmers' Union

Source: Monitor analysis UUP-WRD-Kgalagadi Profile-301106-IS 106 Nodal Economic Profiling Project Business Trust and dplg, 2007 Kgalagadi Kgalagadi poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Mining

± Selected sector: Tourism

± Selected sector: Agriculture

z Investment opportunities Itineraries of field trips z Summary Key stakeholders Key documentation z Appendix Photo collages

UUP-WRD-Kgalagadi Profile-301106-IS 107 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Kgalagadi Itinerary of field trip

TTrraavveell sscchheedduullee // LLooccaattiioonnss MMaaiinn aaccttiivviittiieess CCoommmmeennttss ¨ ¨ ¨ 7h55 flight to Kimberley Meeting with three people at the Compared with other nodes, the Monday, 30 October municipality seems to have Monday, 30 October ¨ District Municipality Car rental and three-hour drive to relevant information on relevant 22000066 ¨ Kuruman Then interview about agriculture sectors and opportunities ¨ Various trips to visit projects ¨ Collection of documents at the ¨ Tuesday, 31 October around Kuruman municipality Meetings generally with Tuesday, 31 October passionate and competent project 2006 ± Mainly LED projects presented ± One good interview there 2006 ¨ managers in the IDP Extensive visit of two projects

¨ Trip to the caves in the morning ¨ Visit to the Wonderwerk Caves Wednesday, 1 ¨ Understanding of the Tourism and Wednesday, 1 ¨ and the Moffat Mission Trip to Hotazel to meet Jeff Mining sectors in the area

November 2006 ¨ November 2006 Leader from BHP and to Kathu Interview with Jeff from BHP ¨ ¨ Meeting with the Mayor and with Interviews in Kuruman ¨ Agri Department The Moshaweng Local Thursday, 2 ¨ Thursday, 2 Visit to the Raptor Rehab Centre Municipality is much worse off November 2006 ¨ Visits to the Raptor Rehab Centre

November 2006 ¨ than the rest of the node Interview in Churchill and to the poorest area ¨ Trip to Kathu for interview with ¨ There seems to be an FFrriiddaayy,, 33NNoovveemmbbeerr local LED manager ¨ Interview at Gamagara Local understanding of the mistakes 22000066 ¨ Trip to Kimberley airport to catch Municipality committed in the past in choosing the 17h35 flight to Johannesburg and prioritising LED projects

UUP-WRD-Kgalagadi Profile-301106-IS 108 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Kgalagadi Key stakeholders, actors, information carriers

PPrriivvaattee sseeccttoorr // GGoovveerrnnmmeenntt PPuubblliicc sseeccttoorr LLooccaall ppeeooppllee NNGGOOss OOtthheerr bbuussiinneessss

Thabo Mathabathe Mr Merementsi Jaison Finlay Nodal Manager Dept of Agriculture Raptor Rehab

Tumi Mogapi Mr Nel Patrick Mabalane District Municipality Dept of Agriculture BHP

Zebo Tshetlho Tumo Jantjie Louis Hauman Kuruman Farmers District Municipality Abattoir Union

Billy Musec Jan Zandberg Alta Klipwerf District Municipality Agri Consultant Guesthouse

B S Mereeotlhe Jeff Leader DM Mayor BHP

N Ditshetelo AJamisinoan BFainnlaoyo Moshaweng Municipal Manager MRaopfftaotrM Ciessnitoren

Israel Mei Neels Lehuls Moshaweng Extension officer Wonderwerk Cave

Hendry Hormiet Gamagara Municipality

= referred to = have appointment = have met = key person, suggest to involve in future discussions

UUP-WRD-Kgalagadi Profile-301106-IS 109 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Kgalagadi Key documentation

AAuutthhoorr // TTiittllee MMaaiinn iissssuueess ccoovveerreedd YYeeaarr OOrrgg..

Fourth Reviewed Integrated Development Plan for Issues, strategies, and relevant projects to address those Kgalagadi District 05/2006 Kgalagadi District Municipality issues Municipality

Department Overview of the mining sector in South Africa, with detailed South Africa Mineral Industry (SAMI) 2004/2005 XMinerals and 12/2005 description of the world trends for each mineral Energy

Kgalagadi Tourism Market Survey: Development Strategy Analysis of the tourism sector, especially in terms of K2M 11/2004 and Implementation Plan potential and strategic choices required going forward

Description of the Manyeding Vegetable Cluster project by Business Plan Vegetable Cluster Siyatusha cc the agricultural consultancy in charge of managing it

Department of Department of Minerals and Energy: Statistical Tables 2005 National statistics for the mining sector Minerals and 2005 Energy

Analysis of the status quo and of the potential for LED in LED Regeneration Study XUrban Econ 06/2003 the Kgalagadi District Municipality

Current local, domestic and international markets; results Mt Nebo Kgalagadi District Municipality Marketing Strategy for Kgalagadi District Enterprise (KDE) market survey; XDevelopment 07/2004 specific interventions; marketing strategy Agency

Memorandum on Export Mining Minerals around Kgalagadi Hotazel Description of the Kgalagadi Jewellery Project 05/2004 Municipal Area Manganese Mines

tick if on file

UUP-WRD-Kgalagadi Profile-301106-IS 110 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Kgalagadi Key documentation (continued)

AAuutthhoorr // TTiittllee MMaaiinn iissssuueess ccoovveerreedd YYeeaarr OOrrgg..

Assessment of bio-physical resource base and farming Tshenolo Feasibility Study into Food Security Programmes in the system; SWOT analysis; model development and Resources and 10/2006 KDM validation; marketing of agricultural products OABS

Description of the Kgalagadi Goat Production and Kgalagadi Dipudi Business Plan Processing Project and of the Kgalagadi Dipudi co- X 2003 operative Enterprise

A source of general information regarding the district and Status Quo Report of the total Kgalagadi Area the various local municipalities within the Kgalagadi District, covering all aspects of importance

Draft implementation plan developed during the DGDS - Description of key sectors and approach following the Kgalagadi District ‘Building sustainable partnerships for growth and 07/2005 Strategy-Action-Responsibility-Timeframe guideline Municipality development in Kgalagadi’

LED Regeneration Study X UrbanX Econ 06/2003

Current local, domestic and international markets; results Mt Nebo Kgalagadi District Municipality Marketing Strategy for Kgalagadi District Enterprise (KDE) market survey; DeveloXpment 07/2004 specific interventions; marketing strategy Agency

Memorandum on Export Mining Minerals around Kgalagadi Hotazel Description of the Kgalagadi Jewellery Project 05/2004 Municipal Area Manganese Mines

tick if on file

UUP-WRD-Kgalagadi Profile-301106-IS 111 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Kgalagadi Photo collage #1 – Constraints to economic growth

MHuisgmea infargaesmtruecnttu oraf le mcoisnmomanica gineimtiaetnivte s Poor road conditions in the rural parts of the node MHuisgmea infargaesmtruecnttu oraf le mcoisnmomanica gineimtiaetnivte s Poor road conditions in the rural parts of the node

One of the main attractions in the area, the Unsustainable projects funded by the municipality One of the main attractions in the area, the Unsustainable projects funded by the municipality Wonderwerk Caves, has been closed for two years Wonderwerk Caves, has been closed for two years

The absolute The absolute majority live in rural majority live in rural areas areas

UUP-WRD-Kgalagadi Profile-301106-IS 112 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Kgalagadi Photo collage #2 – Opportunities for investments

The Maruping Poultry Abattoir The Maruping Poultry Abattoir

The Vegetable Cluster project, with the The Vegetable Cluster project, with the related dam and arable land next to it related dam and arable land next to it The mining sector is huge in the area The mining sector is huge in the area

The absolute The absolute majority live in rural majority live in rural areas areas

UUP-WRD-Kgalagadi Profile-301106-IS 113 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Kgalagadi Photo collage #3 – People of the node

School in the rural part of Moshaweng School in the rural part of Moshaweng

Launch of the donkey carts project Launch of the donkey carts project

Informal settlements Informal settlements

The absolute The absolute majority live in rural majority live in rural areas areas

UUP-WRD-Kgalagadi Profile-301106-IS 114 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Kgalagadi Photo collage #4 – Businesses of the node

Bakkies are very common in the node B&Bs are popular in Kuruman Bakkies are very common in the node B&Bs are popular in Kuruman

Most of the big brands are present in Kuruman Tuck shops and refrigerators Most of the big brands are present in Kuruman Tuck shops and refrigerators

The absolute The absolute majority live in rural majority live in rural areas areas

UUP-WRD-Kgalagadi Profile-301106-IS 115