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An Assessment of the Impact of Local Economic Development in Mbhashe Local Municipality with Special Focus on Agricultural Projects

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An Assessment of the Impact of Local Economic Development in Mbhashe Local Municipality with Special Focus on Agricultural Projects An assessment of the impact of Local Economic Development in Mbhashe Local Municipality with special focus on agricultural projects By Sicelo Mniki Submitted in partial fulfilment of the requirements for the degree of Masters in Development Studies at the Nelson Mandela Metropolitan University April 2013 Supervisor: Ms Elizabeth Saunders DECLARATION OF ORIGINALITY I hereby wish to declare that the work contained in this research project is my own original work, that all sources used or quoted have been acknowledged by means of complete references, and that this report was not previously submitted by me or any other person at any other university for a degree. ........................................ ..................................... S. MNIKI DATE I hereby cede copyright in favour of Nelson Mandela Metropolitan University. ........................................ ..................................... S. MNIKI DATE i DEDICATION I wish to dedicate this achievement to my two children, Phumelela and Sinovuyo Mniki, who are the best thing that ever happened to me. This is for them, my children: “your pride in life should not be in never falling, but it should be in rising every time you fall”. This is an inspiration to them to rise above all the challenges and be the best that they can be in life. ii ACKNOWLEDGEMENTS Firstly and foremost, I wish to express my sincere gratitude to the Almighty for giving me the strength to overcome all the challenges that nearly derailed my ambitions. Secondly, I would like to thank my supervisor, Ms Elizabeth Saunders, for the academic guidance and encouragement. I would like to say to her; “it was a blessing to have you as my academic mother, I have learnt so much from you”. I would like to take this opportunity to extend my further gratitude to the following people who gave me all the necessary support to ensure that I emerge victorious in completing this project: The LED Portfolio Head in Mbhashe, Councillor Jafta, for his support The LED officer in Mbhashe, Ayanda Njili, for sharing his passion and information about the agricultural projects and for his dedication to assist. Cwayita Mda from the Department of Rural Development and Agrarian Reform for her support. Mbhashe IDP coordinator, Buyiswa Jafta, for ensuring that I get all the necessary IDP information for Mbhashe municipality Freddie September and Nompucuko Sigwela from Statistics South Africa, for assisting with analysis of Census 2011. All the chairpersons of the Farmers‟ Associations for ensuring that my meetings with farmers went well. All the farmers from Ndakeni, Tswelelitye and Madwaleni villages who shared their experiences with me. To my two sisters, Zuziwe and Nokubonga Mniki for their moral support. iii ACRONYMS ADM Amathole District Municipality ATFS Agrarian Transformation and Food Security AREDS Amathole Regional Economic Development DARD Department of Agriculture and Rural Development DRDAR Department of Rural Development and Agrarian Reform DEAT Department of Environmental Affairs and Tourism ECP Eastern Cape Province EC PDOA Eastern Cape Provincial Department of Agriculture GDP Gross Domestic Product IDASA Institute for a Democratic Alternative for South Africa IDP Integrated Develoment Plan LED Local Economic Development MDGs Mellenium Development Goals MLM Mbhashe Local Municipality MPF Maize Producing Farmers MPP Maize Production Project PGDP Provincial Growth and Development Plan RDS Rural Development Strategy SALGA South African Local Government Association Stats SA Statistics South Africa iv Table of Contents DECLARATION OF ORIGINALITY ...................................................................................................... i DEDICATION .................................................................................................................................. ii ACKNOWLEDGEMENTS................................................................................................................. iii ACRONYMS .................................................................................................................................. iv EXECUTIVE SUMMARY ................................................................................................................... 1 CHAPTER 1 .................................................................................................................................... 3 1.1 Introduction and background to the study ................................................................. 3 1.1.1 Background of the study area ............................................................................. 4 1.1.2 Main areas of focus in Local Economic Development (LED) strategy as part of Mbhashe‟s Integrated Development Plan (IDP) ........................................................... 6 1.2 Problem statement ...................................................................................................... 7 1.3 Sub objectives ............................................................................................................. 8 1.4 Research questions..................................................................................................... 8 1.5 Significance of the study ............................................................................................. 8 1.6 Research outline .......................................................................................................... 8 CHAPTER 2 .................................................................................................................................. 10 2.1 Introduction ................................................................................................................ 10 2.2 Socio economic environment in South Africa ......................................................... 10 2.3 The role of local government in socio economic development.............................. 11 2.4 Overview of national policy and legislative framework for Local Economic Development (LED) .............................................................................................................. 13 2.4.1 Constitution of the Republic of South Africa, Act 108 of 1996 ....................... 13 2.4.2 White Paper on Local Government (1998) ...................................................... 13 2.4.3 Local Government: Municipal Structures Act (1998) ...................................... 14 2.4.4 Local Government: Municipal Systems Act 32 of 2000 .................................. 15 2.4.5 IDP Legislative Framework ............................................................................... 16 2.4.6 LED Framework ................................................................................................. 17 2.5 Provincial policy context for LED.............................................................................. 17 2.5.1 Provincial Growth and Development Plan ....................................................... 18 2.5.2 Siyazondla Homestead Food Production Project (SHFPP) ........................... 18 2.5.3 Impact of the Provincial Growth and Development Plan (PGDP).................. 19 2.5.4 Rural Development Strategy for the Eastern Cape Province ........................ 20 2.5.5 Amathole Regional Economic Development Strategy (AREDS) ................... 21 2.6 IDP and LED in Mbhashe Municipality .................................................................... 21 v CHAPTER 3 .................................................................................................................................. 24 3.1 Introduction ................................................................................................................ 24 3.2 Research methodology ............................................................................................. 24 3.2.1 The target population......................................................................................... 24 3.2.2 The sample ......................................................................................................... 25 3.2.3 Research tools used and their advantages ..................................................... 25 3.3 Data analysis ............................................................................................................. 26 CHAPTER 4 .................................................................................................................................. 30 4.1 Introduction ................................................................................................................ 30 4.1.1 Gender of farmers in Mbhashe Municipality .................................................... 30 4.1.2 Age of farmers in Mbhashe municipality .......................................................... 31 4.1.3 Farmers‟ level of education ............................................................................... 32 4.1.4 IDP consultation in Mbhashe ............................................................................ 33 4.1.5 Fulfilment of farmers‟ socio economic needs .................................................. 34 4.1.6 Farmer‟s expectations from their partnership with Mbhashe municipality .... 35 4.1.7 Fulfilment of farmers‟ expectations of the maize initiative .............................. 36 4.1.8 Challenges identified by maize production farmers in Mbhashe ................... 38 4.1.9 Strategies to address maize production challenges ....................................... 39 4.1.10 Community benefits
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