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CONTENT 1. Executive Summary ...... 4 2. Pixley ka Seme District Overview ...... 5 2.1 Historical Perspective ...... 5 2.2 Location ...... 5 2.3 Spatial Status ...... 7 3. Social Development ...... 11 3.1 Key Social Demographics ...... 11 3.1.1 Population ...... 11 3.1.2 Gender, Age and Race ...... 11 3.1.3 Households...... 13 3.2 Health Profile ...... 13 3.3 Covid 19 ...... 14 3.4 Poverty Dimensions ...... 16 3.4.1 Inequality ...... 17 3.4.2 Employed / Unemployed ...... 17 3.5 Crime ...... 18 3.6 Education and Skills profile ...... 19 4. Drivers of the Economy ...... 21 Overview ...... 21 Primary Sector ...... 23 Secondary Sector ...... 24 Tertiary Sector ...... 24 Informal Economy ...... 25 5. Service Delivery ...... 26 5.1 Water ...... 26 5.2 Sanitation...... 26 5.3 Human Settlements ...... 26 5.4 Waste Management ...... 27 5.5 Roads and Transport ...... 28 5.6 Electricity ...... 28 6. Governance and Management ...... 28 6.1 Municipal Performance ...... 28 6.2 District Municipal Capacity ...... 29 6.3 Traditional Affairs Governance ...... 29 7. Projects to diversify and grow people and the economy ...... 30 7.1 Social Development Projects ...... 30 7.2 Spatial Development ...... 31 7.3 Infrastructure and Economic projects ...... 32 7.4 Environmental Forecast ...... 33 8. Key Recommendations ...... 35 8.1 Priority projects from Integrated Development Plan ...... 35 8.2 Investor and Sponsorship Opportunities...... 37

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1. Executive Summary The Pixley ka Seme District Municipality covers an area of 103 411km², which is also 27,7% of the total area that constitutes the Northern . The district is the second largest in the country in terms of land size, following Namakwa which is the largest. This district municipal area is the eastern-most district Municipality within the , and borders on the , and provinces. There are 8 category B (local) municipalities within the municipal area, namely, Emthanjeni, Kareeberg, Renosterberg, Siyancuma, Siyathemba, Thembelihle, Ubuntu and Umsobomvu.

The district has a population of 220 830, which is 16.4 % of the total population of the Northern Cape Province. The annual population growth rate for 2019 was 1.5 percent. The district had a total number of 61 296 households and a population density of 2.14 people per square kilometres. There are 244 child headed households and 20 721 (36.8%) women headed households. 35.3% (77 953) of the population lived below the lower poverty line in 2019. 30.5% of the population older than 20 years had matric or higher qualification. 25.2% of the population older than 15 years have not completed grade 7 and is regarded as not functionally literate.

On 17 June 2020, the total number of confirmed Coronavirus COVID-19 cases in the Northern Cape was 211 and 1 death. 1 518 019 screenings and 17 513 tests were done in the Province. The Pixley ka Seme District had 64 cases, of which the majority (41) were in Umsobomvu, followed by Renosterberg with 11.

With a GDP of R 12.5 billion in 2019 (up from R 6.67 billion in 2009), the Pixley ka Seme District Municipality contributed 12.21% to the Northern Cape Province GDP of R 102 billion in 2019. In 2019, the Pixley ka Seme District Municipality achieved an annual growth rate of -0.69% which is a significant lower GDP growth than the Northern Cape Province's 0.00%. In 2019, the community services sector (tertiary) is the largest within Pixley ka Seme District Municipality accounting for R 3.31 billion or 30.4% of the total GVA in the district municipality's economy. The sector that contributes the second most to the GVA of the Pixley ka Seme District Municipality is the transport sector (tertiary) at 13.6%, followed by the agriculture sector (primary)with 13.4%. The Primary sector (agriculture and mining) is expected to grow at an average annual rate of -1.42% between 2019 and 2024, with the Secondary sector (manufacturing, electricity and construction) growing at -2.39% on average annually. The Tertiary sector (trade, transport, finance and community services) is expected to grow at an average annual rate of -1.47% for the same period. PROFILE: CITY OF JOHANNESBURG METRO 5

2. Pixley ka Seme District Overview 2.1 Historical Perspective The District is named after Pixely ka Seme, one of the founders of the African National Congress. The seat of the District is Emthanjeni and the main town . "De Aar", was so named because of the many water-bearing arteries that occur underground. The town developed because of the railway line between and Kimberley.

In Siyancuma, , the first town to be established north of the , or Griquatown as it is sometimes known in English, is one of the country’s most important foundation towns. It was a stopover on the trade route and important for commerce throughout the history of the country. The town, 168 kilometres north of Kimberley, is also known for its abundance of semi-precious stones.

The Griqua currency became the first South African currency in 1815, according to the Reserve Bank. It also became the country’s first decimal coinage and the world’s first Christian Missionary coinage. The town is considered an important missionary town, and was the home of Scottish minister Robert Moffat, who wrote the first Sesotho translation of the bible.

“THE DISTRICT IS IDEALLY PLACED, AS RIVERS SUCH AS THE ORANGE RIVER PASS THROUGH SECTIONS AS WELL AS WELL AS VARIOUS NATIONAL ROUTES.”

2.2 Location The Pixley ka Seme District Municipality (DC07) is situated in the south-east of the Northern Cape Province. It shares its boundaries with three other provinces, namely the Free State to the east, the Eastern Cape to the south-east, and the Western Cape to the south-west.

The district is ideally placed, as rivers such as the Orange river pass through certain sections of the district as well as well as various national routes. These provide a potential source of income into the area via different avenues. There are 7 main towns within the local municipalities are Douglas, , Carnavon, , 6 PROFILE: CITY OF JOHANNESBURG METRO

Colesberg, and De Aar (with De Aar being the largest of these towns). The closest major city to these towns is in the Free State province.

The District municipal area is ideally located some key major routes such as the from the Northern Province, , and Johannesburg to Cape Town. The route from joining the to and the rest of the Eastern Cape, the route form Johannesburg via Kimberley to Cape Town, the N10 from via linking Namibia to the Eastern Cape go through the region. The railway network around De Aar is one of the largest in . Two of the major dams in South Africa, the and Gariep Dams, are situated on the borders of the district municipality.

“THE REGION IS ALSO RICH WITH HISTORY AND CULTURE.” PROFILE: CITY OF JOHANNESBURG METRO 7

2.3 Spatial Status

Emthanjeni Local Municipality derives its name from isiXhosa meaning a "vein". The people of the area receive water from underground. This underground water serves as a life - supporting system, or vein, to the people of the area. It is the main economic hub of the District with the three main towns of De Aar, and Hanover. De Aar is best known for its central location as a railway gateway which joins Johannesburg, Cape Town, Port Elizabeth and Namibia.

Kareeberg Local Municipality derives its name from “Karee” which originates from the tribe ‘A’ of the Khoi Khoi. Berg is an name meaning a mountain. The name also originates from a well - known mountain range in the region, known as the Kareeberge (Karee Mountains). The municipality comprises of three towns, that is, Carnarvon, Van Wyksvlei and . This Municipality is mainly agriculture driven and is an entry point to the Western Cape Province from the Northern parts of the country. It is the second-largest municipality of the eight that make up the district, accounting for 17% of its geographical area. The name originates from a mountain range in the region, the Karee Mountains.

Renosterberg Local Municipality derives its name from Afrikaans meaning 'rhinoceros mountain". The municipality is named after the mountain range found in the area. It was formed through the amalgamation of three towns, that is, , Vanderkloof and Phillipstown. 8 PROFILE: CITY OF JOHANNESBURG METRO

It is the smallest of eight municipalities in the district, making up only 5% of its geographical area. Petrusville is a typical upper semi-desert suburb with flat hilltops. The region is also rich with history and culture. The Dutch Reformed Church Museum exhibits century-old clothing and a horse-drawn hooded cart. The Pillar Fountain was erected to honour King Edward VII. Most of the original town dwellings are simple structures with a prominent, covered veranda as protection against the sun. The more elaborate homes have traces of Victorian style, but still maintain a Karoo- like integrity. In the Karoo Battlefields, the bitter conflict brought about by the Anglo- Boer War (1899-1902) has left its mark in world history. The best-marked and most accessible sights form part of the N12 Battlefields Route, which links the Karoo to the Fields. National Monuments include the old prison museum, the magistrate's offices, the Reformed Church, and Teichhouse.

Vanderkloof Dam attracts tourists for angling and water-related sports. It is regarded as one of the most beautiful regions in the province. It enjoys warm winter days, cool evening temperatures and rainfall during the winter season. The summers are hot to very hot and dry.

Siyancuma Local Municipality, which derives its name from isiXhosa meaning “we are smiling”. The original inhabitants of the area were Batswana, the Griquas at a later stage, and the also settled in the area. A lot of inter-marriages took place until the apartheid government created the unwanted 'class' status between the different ethnic groups. The removal of the apartheid laws brought the smiles back onto the faces of the community since they can now live happily as before without the 'class' status. The name "Siyancuma" celebrates this achievement.

The municipality comprises in the main of three towns, that is, Campbell, Douglas and Griekwastad and has densely populated rural settlement called Smitchdrift. It accounts for 16% of the District’s geographical area and is mainly driven by agriculture and mining.

“PRIESKA (SIYATHEMBA) AND CARNARVON (KAREEBERG) HAVE CHANGED CHARACTER FROM SMALL RURAL TOWNS TO POTENTIALLY REGIONAL HUBS”

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Siyathemba Local Municipality, was initially established as ‘Primanday’ which was a combination of the names Prieska, and Niekerkhoop. Its name was changed in 2001 and is derived from Nguni “we hope” or “we trust”. Because Prieska was a mine dump, the people in the area developed an illness known as asbestosis. Certain mine heaps have been rehabilitated in the area, although the people have already lost hope. By naming the municipality Siyathemba, the community trusts that their living conditions will get better.

It comprises of three towns, that is, Marydale, Prieska and . Prieska was originally named Prieschap, a Koranna word meaning ‘place of the lost she-goat', and used to be a fording place for travellers over the Orange River. Known to the locals as ‘the gem of the Northern Cape', Prieska is the seat of the municipality and is located on the hills of the Doring Mountains on the southern banks of the Orange River. Prieska's infrastructure is impressive – it has Eskom power; an abundant water supply from the Orange River, with the Gariep and the Vanderkloof Dams on the upstream side of the river; easy access to the main railway line to Namibia; tarred road linkage with Kimberley, Upington and De Aar; two landing strips for light aircraft; and complete and reasonably inexpensive industrial stands, with or without siding facilities. Industrial activities include: grain silos; a cotton mill; a bakery; manufacture of furniture, built-in cupboards; cattle fodder pellets; and a tiger’s eye processing plant. Niekerkshoop is attractively placed between hills, and large trees shade the streets. There is no domestic water supply but irrigation water is supplied by a spring to the north of the town. On the north-west side of Marydale is a rich underground water source, and the main means of water supply is by borehole and wind pumps. It depends mainly on sheep farming.

The Thembelihle Local Municipality derives its name from Nguni ‘beautiful hope’ or ‘place of hope’. It was formed through the amalgamation of three towns, that is, Hopetown, and Orania. The outcome of the dispute regarding Orania has not yet been decided upon and the uncertainty still exists as to where Orania is demarcated. The municipality is in the heart of the Karoo and accounts for only 8% of the District’s geographic area.

This mostly agricultural landscape is rich in natural resources. The first diamond was discovered in Hopetown and a great part of the Anglo-Boer War was fought in these parts. The new emblem depicts the diversity of Thembelihle inhabitants and its surroundings.

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Ubuntu Local Municipality derives its name from Nguni ‘humanity’. The name was decided upon because the municipality's main priority is to serve the public in a humane ad friendly manner. The municipality comprises of the three towns of Victoria West, Loxton and Richmond. It is the largest of the eight municipalities that make up the district, accounting for almost a quarter of its geographical area. Its seat is Victoria West. It is mainly agriculture driven.

Umsobomvu Local Municipality derives its name from Nguni ‘a rising dawn’ it is also an isiXhosa name for a star that usually appears at the crack of dawn. This star symbolises the new era for the municipality. The municipality comprises of three towns, Colesberg, Norvalspond and . It is the second smallest of the eight municipalities in the district. Colesberg is a town located on the main road from Cape Town to Johannesburg. In a sheep-farming area spread over 500 000 hectares, greater Colesberg breeds many of the country’s top merinos. It is also renowned for producing high-quality racehorses and many stud farms, including one owned by legendary golfer, Gary Player. Towerberg or Coleskop is a prominent hill near the town and a landmark easily seen from a distance by travellers. Colesberg saw a large number of battles and skirmishes during the second Anglo-Boer War and the Colesberg Garden of Remembrance is located just outside the town. The town boasts many buildings that were built in a blend of Cape Dutch and Georgian architecture, with ceilings of reed and yellowwood timbers, and others that display a range of designs reflecting the changes of 19th century building. Originally, plots were pegged out and sold on the site of the town to fund the building of the Dutch Reformed Church. Noupoort is a town in the eastern Karoo region that principally revolved around the railways and is still used as a traction change-over facility from diesel to electric locomotives on the Noupoort-Bloemfontein line. It links up with the electric line to De Aar, part of the main artery for iron ore and manganese exports from the Northern Cape through Port Elizabeth Harbour on the south coast. The main sectors here are agriculture, services industry, tourism, and hospitality.

Prieska (Siyathemba) and Carnarvon (Kareeberg) have in recent years changed character from small rural towns to potentially regional hubs as a result of investments in renewable energy generation and the radio telescope project, respectively.

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3. Social Development 3.1 Key Social Demographics 3.1.1 Population With a population of 220 830 people, the Pixley ka Seme District Municipality as of 2019 housed 0.4% of South Africa's total population. Between 2008 and 2018 the population growth averaged 1.38% per annum which is similar than the growth rate of South Africa as a whole (1.57%). Compared to Northern Cape's average annual growth rate (1.66%), the average annual growth rate in Pixley ka Seme's population at 1.38% was similar than that of the province.

3.1.2 Gender, Age and Race The Pixley ka Seme District Municipality has 50.6% or 111 833 females and 108 977(49.4%) males. The median age is 26, with 59% of the population being of working age between 18 and 64 years.

The largest share of population is within the young working age (25-44 years) age category with a total number of 64 900 or 29.4% of the total population. The age 12 PROFILE: CITY OF JOHANNESBURG METRO category with the least number of people is the 65 years and older age category with only 16 200 people, as reflected in the population pyramids below.

Population structure, Total, 2019 DC07 Pixley ka Seme vs. National

Male Female

DC07 Pixley ka 75+ Seme 70-74 65-69 South Africa 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 05-09 00-04

6,0% 4,0% 2,0% 0,0% 2,0% 4,0% 6,0% Source: IHS Markit Regional eXplorer version 1946

By comparing the population pyramid of the Pixley ka Seme District Municipality with the national age structure, the most significant differences are: • There is a significant smaller share of young working age people - aged 20 to 34 (23.7%) - in Pixley ka Seme, compared to the national picture (26.9%). • The area seems to be a migrant sending area, with many people leaving the area to find work in the bigger cities. • Fertility in Pixley ka Seme is slightly higher compared to South Africa as a whole. • The share of children between the ages of 0 to 14 years is slightly larger (28.8%) in Pixley ka Seme compared to South Africa (28.6%). Demand for expenditure on schooling as percentage of total budget within Pixley ka Seme District Municipality will therefore be higher than that of South Africa.

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In 2018, the Pixley ka Seme District Municipality's population consisted of 31.3% African (64 800), 8.69% White (18 000), 59.31% Coloured (123 000) and 0.70% Asian (1 440) people.

3.1.3 Households In 2019, the Pixley ka Seme District Municipality comprised of 61 296 households. This equates to an average annual growth rate of 1.67% in the number of households from 2008 to 2018. With an average annual growth rate of 1.38% in the total population, the average household size in the Pixley ka Seme District Municipality is by implication decreasing. This is confirmed by the data where the average household size in 2008 decreased from approximately 3.7 individuals per household to 3.6 persons per household in 2018.

244 Households in Pixley ka Seme are headed by people under the age of 18. This forms one third of the total number of child-headed households in the Northern Cape. Approximately 36.8 % of the Households are headed by women.

3.2 Health Profile For the percentage of deaths by broad cause, deaths are classified into four groups, namely: (i) injuries; (ii) noncommunicable diseases; (iii) HIV and TB; and (iv) communicable diseases together with maternal, perinatal and nutritional conditions. Data are given by gender and age group for the period 2013-2015. In Pixley ka Seme, more than 70% of deaths under 1 year can be attributed to communicable diseases together with maternal, perinatal and nutritional conditions. However, as people get older the causes of death changes, e.g. the over 50 category most deaths can be attributed to non-communicable diseases.

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The provincial health system consists of a hierarchy of facilities, which include 126 fixed primary health care clinics and 33 community health centres, 11 district hospitals, 1 specialised hospital, 1 regional hospital and 1 tertiary hospital. 8 of 11 district hospitals provide 24-hour operating theatre access. The tertiary hospital provides 32 of the 37 sub-specialities, although not all are led by a sub-specialist (e.g. respiratory medicine and infectious diseases falls under general medicine). All 14 Hospital Boards and 121 of PHC structures have been appointed. 8 of the 11 District Hospital CEOs are permanent.

The Pixley Ka Seme district, due to its relatively poor and underdeveloped condition, has an average of nearly 80% of the population uninsured (health insurance). The district municipality has 3 district hospitals: the De Aar, in Colesberg and Bill Pickard Hospital in Prieska. Ideal clinics are 36 in total with no functional clinic committees.

3.3 Covid 19 In Northern Cape there were 211 confirmed cases of which 62 had recovered by the 17th of June 2020. 61 Cases were in Pixley ka Seme of which 41 were in Umsobomvu.

The Council for Scientific and Industrial Research (CSIR) in collaboration with Albert Luthuli Centre for Responsible leadership have developed a set of COVID-19 Vulnerability Indicators using available data and knowledge. It identifies vulnerabilities present in communities and identifying areas in need of targeted coordinated interventions and early response. The purpose of the indicators is intended to support the early prevention/mitigation and preparedness phase of the disaster management PROFILE: CITY OF JOHANNESBURG METRO 15

cycle and informing disaster management decision making. It is not based on epidemiological modelling but a response to highlighting intervention areas due to underlying situation. The composition of the index follows two main factors, namely: transmission potential and health susceptibility.

Transmission potential areas identify areas that prevent social distancing to be practiced and where limitations of practicing good basic hygiene. The health susceptibility index denotes areas where large number of people are potential more susceptible to being adversely affected by COVID-10 due to factors such as age and underlying health conditions. The Pixley Ka Seme vulnerability profile is presented below. The map shows low vulnerability areas (blue dotted areas) versus areas with higher vulnerability (red dotted areas)

The area shows low vulenrability as it is sparsely populated but for the economic hubs of Prieska, Richmond, Colesburg, Hopetwon and Cambell which show extreme vulnefrability. Area specific GIS vunerability maps are available curtosy of CSIR at: https://pta-gis-2-web1.csir.co.za/portal2/apps/opsdashboard/#/390a74fb10844c7a85396e60555a866d 19 Quarantine facilities have been identified for the Pixley Ka Seme by 29 May 2020:

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TOWN State-owned or NO OF NO OF STATUS OF FACILITY Activated Private ROOMS BEDS Site AVAILABLE AVAILABLE Colesberg Private 3 3 Not assessed Pending De Aar State-Owned 3 Not assessed Pending De Aar State-Owned 4 Not assessed Pending De Aar State-Owned 12 Not assessed Pending De Aar State-Owned 56 Not assessed Pending De Aar State-Owned 6 63 Not assessed Pending Colesberg Private 21 21 Not assessed Pending Umsobomvu NU State-Owned 16 28 Assessed and approved Activated by DPW or Province Douglas State-Owned 8 6 Not assessed Pending Colesberg Private 4 4 Not assessed Pending Griekwastad State-Owned 3 8 Not assessed Pending Hanover Private 7 40 Not assessed Pending Sol Plaatjie NU State-Owned 67 Not assessed Pending Kimberley State-Owned 15 30 DOH Compliant Pending De Aar Private 18 18 Not assessed Pending Prieska State-Owned 2 8 Not assessed Pending Vanderkloof State-Owned 10 10 Assessed and approved Activated by DPW or Province State-Owned 9 54 Assessed and approved Activated by DPW or Province Hopetown State-Owned 7 Assessed and approved Pending by DPW or Province TOTAL 122 442

3.4 Poverty Dimensions In 2019, there were 78 017 people living in poverty, using the lower bound poverty line of R810 per person per month. This is 5.9% higher than the 73 650 in 2009. The percentage of people living in poverty, using the lower poverty line definition, has decreased from 39.3% in 2009 to 35.3% in 2019, which indicates a decrease of 4 percentage points. However using the upper bound poverty line of R1 227 per person per month, 54% of people in the district live in poverty.

“TRANSMISSION POTENTIAL AREAS IDENTIFY AREAS THAT PREVENT SOCIAL DISTANCING TO BE PRACTICED AND WHERE LIMITATIONS OF PRACTICING GOOD BASIC HYGIENE.” PROFILE: CITY OF JOHANNESBURG METRO 17

Number and percentage of people in poverty Pixley ka Seme, 2009-2019 140 000 58%

120 000 56% 54% 100 000 52% 80 000 50% 60 000 48% 40 000 46%

20 000 44%

0 42% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Number of people in poverty Source: IHS Markit Regional eXplorer version 1946

3.4.1 Inequality The Gini coefficient is a summary statistic of income inequality. It varies from 0 to 1. If the Gini coefficient is equal to zero, income is distributed in a perfectly equal manner, in other words there is no variance between the high- and low-income earners within the population. In contrast, if the Gini coefficient equals 1, income is completely inequitable, i.e. one individual in the population is earning all the income and the rest has no income. Generally, this coefficient lies in the range between 0.25 and 0.70.

3.4.2 Employed / Unemployed In 2018, Pixley ka Seme employed 45 400 people which is 13.98% of the total employment in Northern Cape Province (325 000), 0.28% of total employment in South Africa (16.1 million). Employment within Pixley ka Seme increased annually at an average rate of 0.59% from 2008 to 2018.

Also, in 2018, a total number of 23 400 people were reported as unemployed in Pixley ka Seme, which is an increase of 3 900 from 19 500 in 2008. The total number of unemployed people within Pixley ka Seme constitutes 18.27% of the total number of unemployed people in Northern Cape Province. The Pixley ka Seme District Municipality experienced an average annual increase of 1.84% in the number of unemployed people, whilst the Northern Cape Province as a whole had an average annual increase in unemployment of 2.14%. 18 PROFILE: CITY OF JOHANNESBURG METRO

3.5 Crime The crime index is a composite, weighted index which measures crime. The higher the index number, the higher the level of crime for that specific year in a particular region. The index is best used by looking at the change over time, or comparing the crime levels across regions

For the period 2007/2008 to 2017/2018 overall crime has decreased at an average annual rate of 0.87% within the Pixley ka Seme District Municipality. Violent crime decreased by 1.19% since 2007/2008, while property crimes increased by 2.08% between the 2007/2008 and 2017/2018 financial years.

IHS Crime Index - calendar years (weighted avg / 100,000 people) - Pixley ka Seme District Municipality, 2007/2008- 2017/2018

“FOR THE PERIOD 2007/2008 TO 2017/2018 OVERALL CRIME HAS DECREASED AT AN AVERAGE ANNUAL RATE OF 0.87%”

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3.6 Education and Skills profile

The number of people without any schooling in Pixley ka Seme District Municipality accounts for 22.33% of the number of people without schooling in the province and a total share of 0.71% of the national. In 2019, the number of people in Pixley ka Seme District Municipality with a matric only was 32 000 which is a share of 14.7% of the province's total number of people that has obtained a matric. The number of people with a matric and a Postgrad degree constitutes 18.7% of the province and 0.26% of the national.

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4. Drivers of the Economy Overview Table: Gross Domestic Product (GDP) - Pixley ka Seme, Northern Cape and National Total, 2008- 2018 Pixley ka Northern Cape National Total Pixley ka Pixley ka Seme Seme as % of Seme as % of province national 2008 6.7 54.7 2,369.1 12.3% 0.28% 2009 6.7 54.4 2,507.7 12.2% 0.27% 2010 7.3 60.1 2,748.0 12.1% 0.27% 2011 7.8 64.0 3,023.7 12.2% 0.26% 2012 8.4 68.2 3,253.9 12.3% 0.26% 2013 8.8 72.6 3,540.0 12.2% 0.25% 2014 10.5 83.5 3,805.3 12.5% 0.27% 2015 11.0 86.2 4,049.9 12.8% 0.27% 2016 11.5 90.4 4,359.1 12.7% 0.26% 2017 12.1 96.5 4,653.6 12.5% 0.26% 2018 12.3 98.6 4,873.9 12.5% 0.25% Source: IHS Markit Regional eXplorer version 1750 With a GDP of R 12.3 billion in 2018 (up from R 6.71 billion in 2008), the Pixley ka Seme District Municipality contributed 12.46% to the Northern Cape Province GDP of R 98.6 billion in 2018 increasing in the share of the Northern Cape from 12.27% in 2008. The Pixley ka Seme District Municipality contributes 0.25% to the GDP of South Africa which had a total GDP of R 4.87 trillion in 2018 (as measured in nominal or current prices).It's contribution to the national economy stayed similar in importance from 2008 when it contributed 0.28% to South Africa, but it is lower than the peak of 0.28% in 2008.

It is expected that Pixley ka Seme District Municipality will grow at an average annual rate of 0.15% from 2018 to 2023. The average annual growth rate of Northern Cape Province and South Africa is expected to grow at -0.03% and 1.50% respectively.

The establishment of the Square Kilometre Array project in the western segment of the municipal area is the most significant investment of any kind in recent years. In this regard, it is important for all stakeholders to ensure that the ‘other’ sources of local or regional livelihoods, e.g. agriculture, are not undermined. However, since the introduction of the project the following elements of the local economy has benefited significantly: road infrastructure, local job opportunities created (mainly Black Economic Empowerment driven), purchasing of local supplies and services, e.g. in the hospitality industry and the property market through higher demand and the construction of new houses.

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Another key aspect of beneficiation is the introduction of improved high-speed broadband connection for previously unconnected communities. It is important to note that Carnarvon in the Kareeberg municipal area is seen as the main geographic hub of investment in terms of the SKA project. In this regard, and seen in the broader regional context, it is an imperative for all three tiers of government to become involved in the monitoring and evaluating of change in, inter alia, the socioeconomic status of the directly and indirectly affected communities. For example, to monitor the implementation and results of the human capital development programmes.

The challenge is also to optimise, share and sustain these collateral benefits to the local and regional economy and by implication, to the local communities. For example, the financial sustainability of mainly the Kareeberg Municipality will impact on the standard and availability of certain services and infrastructure and proper land use management will result in a socio-political approach to sharing the tourism-related opportunities.

Gross Value Added (GVA) is a measure of output (total production) of a region in terms of the value that was created within that region. GVA can be broken down into various production sectors. In 2018, the community services sector is the largest within Pixley ka Seme District Municipality accounting for R 3.06 billion or 28.5% of the total GVA in the district municipality's economy. The sector that contributes the second most to the GVA of the Pixley ka Seme District Municipality is the agriculture sector at 15.9%, followed by the transport sector with 14.4%. The sector that contributes the least to the economy of Pixley ka Seme District Municipality is the manufacturing sector with a contribution of R 364 million or 3.38% of the total GVA.

Table: Gross Value Added (GVA) by broad economic sector - Pixley ka Seme District Municipality, 2018 Pixley ka Northern Cape National Total Pixley ka Seme Pixley ka Seme as % of Seme as % of province national Agriculture 1.7 6.4 106.1 26.8% 1.61% Mining 0.4 19.4 350.9 1.9% 0.10% Manufacturing 0.4 3.0 572.9 12.0% 0.06% Electricity 0.7 3.3 166.0 19.8% 0.40% Construction 0.4 2.8 170.3 13.7% 0.23% Trade 1.3 10.5 652.7 12.6% 0.20% Transport 1.5 10.7 426.7 14.4% 0.36% Finance 1.3 11.9 854.4 11.3% 0.16% Community services 3.1 20.4 1,041.3 15.0% 0.29% Total Industries 10.8 88.5 4,341.3 12.2% 0.25% Source: IHS Markit Regional eXplorer version 1750

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Primary Sector The primary sector consists of two broad economic sectors namely the mining and the agricultural sector. The following chart represents the average growth rate in the GVA for both of these sectors in Pixley ka Seme District Municipality from 2008 to 2018.

Figure: Gross Value Added (GVA) by primary sector - Pixley ka Seme, 2008-2018

Between 2008 and 2018, the agriculture sector experienced the highest positive growth in 2008 with an average growth rate of 14.3%. The mining sector reached its highest point of growth of 8.7% in 2013. The agricultural sector experienced the lowest growth for the period during 2011 at -12.6%, while the mining sector reaching its lowest point of growth in 2009 at -11.8%. Both the agriculture and mining sectors are generally characterised by volatility in growth over the period.

The main deposits in Pixley ka Seme include alluvial diamond mining along the Orange River and various semi-precious stones, such as tiger-eye and zinc deposits. The region also has various saltpans for the potential of salt production. The development of new Orion Mine in the region provides prospects for job opportunities and procurement opportunities.

Livestock production is spread throughout the district municipality, with sheep and goats being the main livestock commodities. Aquaculture at the Van der Kloof Dam shows huge potential and can be investigated despite the challenges of long time delays due to EIAs and other studies. The district municipality should leverage of the province agricultural strategy to leverage and realize benefits that can be derived from agricultural and agro processing activities. With the Agri Parks as a strategic pillar for the economic growth of the district, 24 PROFILE: CITY OF JOHANNESBURG METRO

Secondary Sector The secondary sector consists of three broad economic sectors namely the manufacturing, electricity and the construction sector. Between 2008 and 2018, the manufacturing sector experienced the highest positive growth in 2010 with a growth rate of 7.6%. The construction sector reached its highest growth in 2009 at 11.8%. The manufacturing sector experienced its lowest growth in 2018 of -3.2%, while construction sector reached its lowest point of growth in 2018 a with -2.1% growth rate. The electricity sector experienced the highest growth in 2018 at 2.0%, while it recorded the lowest growth of -5.7% in 2013.

“THE MAIN DEPOSITS IN PIXLEY KA SEME INCLUDE ALLUVIAL DIAMOND MINING ALONG THE ORANGE RIVER AND VARIOUS SEMI- PRECIOUS STONES.”

Figure: Gross Value Added (GVA) by secondary sector - Pixley ka Seme, 2008-2018

Tertiary Sector The tertiary sector consists of four broad economic sectors namely the trade, transport, finance and the community services sector. The following chart represents the average growth rates in the GVA for these sectors in Pixley ka Seme District Municipality from 2008 to 2018. PROFILE: CITY OF JOHANNESBURG METRO 25

Figure: Gross Value Added (GVA) by tertiary sector - Pixley ka Seme, 2008-2018

The trade sector experienced the highest positive growth in 2010 with a growth rate of 4.3%. The transport sector reached its highest point of growth in 2008 at 3.9%. The finance sector experienced the highest growth rate in 2008 when it grew by 5.9% and recorded the lowest growth rate in 2009 at -0.8%. The Trade sector also had the lowest growth rate in 2009 at -6.2%. The community services sector, which largely consists of government, experienced its highest positive growth in 2008 with 6.6% and the lowest growth rate in 2009 with -1.0%.

Informal Economy The informal sector is vital for the areas with very high unemployment and very low labour participation rates, the informal sector is used as a survival mechanism.

Informal employment is much harder to measure and manage, simply because it cannot be tracked through the formal business side of the economy. Informal employment is however a reality in South Africa and cannot be ignored. The number of formally employed people in Pixley ka Seme District Municipality counted 39 300 in 2018, which is about 86.46% of total employment, while the number of people employed in the informal sector counted 6 150 or 13.54% of the total employment. Informal employment in Pixley ka Seme increased from 4 600 in 2008 to an estimated 6 150 in 2018.

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5. Service Delivery 5.1 Water In 2018, Pixley ka Seme District Municipality had a total number of 28 200 (or 46%) households with piped water inside the dwelling, a total of 25 300 (44.25%) households had piped water inside the yard and a total number of 636 (1.11%) households had no formal piped water.

5.2 Sanitation In 2018, Pixley ka Seme District Municipality had a total number of 47 200 flush toilets (83.4% of total households), 4 360 Ventilation Improved Pit (VIP) (7.62% of total households) and 1 740 (3.05%) of total households’ pit toilets.

5.3 Human Settlements Pixley ka Seme District Municipality had a total number of 26 100 (43.70% of total households) very formal dwelling units, a total of 27 300 (45.61% of total households) formal dwelling units and a total number of 3 960 (6.63% of total households) informal dwelling units.

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When looking at the formal dwelling unit backlog (number of households not living in a formal dwelling, including traditional and other) over time, it can be seen that in 2008 the number of households not living in a formal dwelling were 5 610 within Pixley ka Seme District Municipality. From 2008 this number increased annually at 1.31% to 6 390 in 2018.

The total number of households within Pixley ka Seme District Municipality increased at an average annual rate of 2.01% from 2008 to 2018, which is higher than the annual increase of 2.13% in the number of households in South Africa.

5.4 Waste Management Pixley ka Seme District Municipality had a total number of 44 400 (79.7%) households which had their refuse removed weekly by the authority, a total of 1 270 (2.22%) households had their refuse removed less often than weekly by the authority and a total number of 7 400 (12.94%) households which had to remove their refuse personally (own dump).

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5.5 Roads and Transport As per the District municipality IDP 2019, the current condition of tarred roads within the district is good, whilst the condition of the gravel roads is poor. In addition, they are stormwater management issues on some roads in the urban areas which makes them prone to flooding. The available modes of public transport available in the district include minibus/taxi, bus and train.

5.6 Electricity Pixley ka Seme District Municipality had a total number of 2 450 (4.29%) households with electricity for lighting only, a total of 50 500 (88.28%) households had electricity for lighting and other purposes and a total number of 4 240 (7.42%) households did not use electricity.

6. Governance and Management

6.1 Municipal Performance The district comprises of 8 local municipalities and 1 district municipality. The performance cannot be measured as an aggregate as all entities are autonomous. The table below gives highlights of key performance and governance parameters. Table: Municipality performance MUNICIPALITY AUDIT OUTCOME LIQUIDITY RATIO

PIXLEY KA SEME DM Unqualified emphasis of matter 1.17 EMTHANJENI unqualified emphasis of matter 0.1 KAREEBERG Unqualified 2.2 RENOSTERBERG Qualified 0.0 THEMBELIHLE Qualified 0.08 SIYATHEMBA Disclaimer Not available SIYANCUMA Qualified 0.03 UBUNTU Qualified 0.1 UMSOBOMVU unqualified emphasis of matter 0.06

Source Municipal finance 2017/18 outcomes

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The Auditor General outcomes give an interpretation of the financial position of the municipality in line with Generally Recognised Accounting Practices (GRAP). None on the municipalities have received a clean audit which is an unqualified opinion with no findings. However, Pixley DM, Emthanjeni and Umsobomvu have received unqualified opinions with emphasis of matter which are still acceptable.

The liquidity ratio represents the municipality's immediate ability to pay its current liabilities, an indicator of more than 1 is good. Apart from the District Municipality all the local municipality are in a bad financial position in term of the liquidity ratio.

6.2 District Municipal Capacity

6.3 Traditional Affairs Governance According to latest DTA information there are no traditional authorities are present.

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7. Projects to diversify and grow people and the economy 7.1 Social Development Projects The current proposed social development projects spanning sports, recreation, Early Childhood Development, Education facilities (inclusive of Higher education and TVET’s, student accommodation).

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7.2 Spatial Development The Northern Cape Provincial Spatial Development Framework (2018: P 77) states that the first structuring element is the development and reinforcement of a system of varied growth centres. This will enable greater access to development opportunities, as well as equitable access to a system of local opportunities

The Northern Cape PSDF identified regional and smaller regional growth centres. De Aar will serve as smaller regional growth centre. (Figure 5). In the context of Pixley ka Seme District, the remainder of the municipalities, the various towns as depicted in Figure 6 will serve as small service ~, transportation ~ and agriculture centres:

Figure: NC PSDF Nodes (2018: P83)

The agricultural and mining sectors as well as the potential growth in manufacturing in the district are largely dependent on an efficient freight transport system. The strategic location of the Pixley Ka Seme District with strong linkages towards the Free State, Western Cape and Eastern Cape Provinces, positions the district as a logistical hub 32 PROFILE: CITY OF JOHANNESBURG METRO for goods and services to be transported along the N1 and N12 national routes. (Pixley ka Seme RDP, 2017: P265)

The Northern Cape PSDF (2019:P 164) propose integrated sustainable human settlements through the following policy priorities: • Accelerate the upgrading of informal settlements; • Prioritise the regeneration of inner cities preventing urban decay; • Provide additional options for accessing urban opportunities; • Promote densification including support for back-yarding; • Regenerate townships through precinct development planning initiatives; • Support inclusionary housing; • Identify and fast track land for settlement interventions; • Promote spatial clustering’s by the identification of centrally located service areas in rural settlements; • Applying urban design principles; and • Transform public spaces into safe places of community life

It should be noted that within the Pixley ka Seme District the sustainability of settlements poses as a challenge because the NSDF presents a shift towards the east. The district needs to mitigation against climate change and the impact thereof on water availability, this might hamper the expansion of human settlements. The expansion of mining settlements is also not allowed.

7.3 Infrastructure and Economic projects Catalytic projects can be defined as those projects that when pursued, would have a significant positive impact on more than one area, community, sector and directly or indirectly improve the lives of the people within the district. The following table includes the top 25% of high impact/catalytic projects as identified in the Northern Cape Provincial Growth Development Plan 2018 applicable to the Pixley ka Seme District Municipality:

“IT SHOULD BE NOTED THAT WITHIN THE PIXLEY KA SEME DISTRICT THE SUSTAINABILITY OF SETTLEMENTS POSES AS A CHALLENGE BECAUSE THE NSDF PRESENTS A SHIFT TOWARDS THE EAST.” PROFILE: CITY OF JOHANNESBURG METRO 33

Table: PKSDM Catalytic Projects PGDP Driver of Change Project Sector Driver 1: Economic Growth, SKA Visitor Centre Tourism Development And Prosperity Driver 4: Accountable & Provincial mining Mining Effective Governance strategy (Mining and mineral beneficiation) Driver 1: Economic Growth, SKA Science Visitors’ Innovation and the Development And Prosperity Centre (SVC) in Carnarvon knowledge economy Driver 2: Social Equity & Agri-Park Programme Agriculture and agro- Human Welfare processing Driver 1: Economic Growth, Vanderkloof Fisheries Agriculture and agro- Development And Prosperity and Cage Trout Farming processing

Driver 3: Environmental Shale gas fracking Mining and mineral Sustainability And Resilience beneficiation Driver 2: Social Equity & SIP 15 Broadband Roll- Innovation and the Human Welfare out knowledge economy Driver 1: Economic Growth, New Industries in the Innovation and the Development And Prosperity manufacturing revolution knowledge economy Driver 2: Social Equity & Logistics Hub / storage Rural development, land Human Welfare facilities for locally produced reform and food security crops Driver 1: Economic Growth, SIP 16 SKA Innovation and the Development And Prosperity knowledge economy Driver 2: Social Equity & One Hectare One Agriculture and agro- Human Welfare Household processing

Driver 3: Environmental A Renewable energy Energy Sustainability And Resilience and gas energy business incubator Driver 3: Environmental A Renewable energy Energy Sustainability And Resilience and gas energy skills development centre Driver 1: Economic Growth, De Aar Transport and Transport and storage Development And Prosperity Logistics Hub Driver 1: Economic Growth, Pixley Ka Seme Energy Development And Prosperity (Renewable Energy SEZ) Driver 3: Environmental Promote small-scale Rural development, land Sustainability And Resilience and subsistence farming reform and food security

7.4 Environmental Forecast Chapter Six of the Northern Cape Spatial Development Framework (NCSDF) has delineated various environmental issues, including, but not limited to the biosphere, habitat change, biodiversity protection, local biome, centres of endemism, land transformation, alien invasive species, unsustainable use of resources, over grazing, harvesting of natural resources, predator control, critical biodiversity areas, environmental sensitive areas, land cover, atmospheric conditions and pollution levels, climate change, fire risk day increases, solar energy potential and risks, hydrosphere and marine protected areas, geo hazards such as sinkholes and erosion, minerals and mining, water, water rights, tourism and vulnerability within the Northern Cape.

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Table: PKSDM Climate Change Vulnerability

Source: NC Provincial Report On Socio-Economic Challenges 2019

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8. Key Recommendations 8.1 Priority projects from Integrated Development Plan Agriculture is one of main economic activities in the Pixley ka Seme district which has ideal conditions for irrigation farming, especially the cultivation of grains and vegetables due to the Orange River which runs through the Municipality. The main livestock farming in the region include cattle, sheep, and goat farming. Game breeding has also been identified as one of the opportunities which could be linked with the tourism sector for Game reserves and hunting activities.

The district municipality should integrate the provincial agricultural strategy to leverage and realize benefits that can be derived from agricultural and agro processing activities in the IDP. With the Agri-Parks as a strategic pillar for the economic growth of the district, some key elements are: ▪ Primary Production ▪ Processing ▪ Agro Logistics ▪ Marketing ▪ Training and Extension Services

The establishment of the Square Kilometre Array (SKA) project in the western segment of the municipal area is the most significant investment of any kind in recent years. Since the introduction of the project the following elements of the local economy has benefited significantly: road infrastructure, local job opportunities created (mainly Black Economic Empowerment driven), purchasing of local supplies and services, e.g. in the hospitality industry and the property market through higher demand and the construction of new houses.

Another key aspect of beneficiation is the introduction of improved high-speed broadband connection for previously unconnected communities. It is important to note that Carnarvon in the Kareeberg municipal area is the main geographic hub of investment in terms of the SKA project. It is therefore imperative that national and provincial government support the District by monitoring and evaluating the socio- economic and other impacts on communities that are directly and indirectly affected by the project, including results of the human capital development programmes arising from the SKA project.

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The district municipal area of Pixley ka Seme is favourably located and could benefit by having national roads pass through it. The N1, N9, N10 and the N12 traverse and intersect within the district, linking Pixley ka Seme to the northern part of South Africa towards Bloemfontein and Johannesburg and the southern part towards Cape Town and Port Elizabeth. The ONE PLAN of the district will have to take this comparative advantage into consideration to ensure socio-economic spinoffs of its location.

The challenge is also to optimise, share and sustain these collateral benefits to the local and regional economy and to the local communities. Critically, the financial sustainability of mainly the Kareeberg Municipality will impact on the standard and availability of certain services and infrastructure and proper land use management will result in a socio-political approach to sharing the tourism-related opportunities. Greater support will have to be provided to this municipality and the district.

“THE ONE PLAN OF THE DISTRICT WILL HAVE TO TAKE THIS COMPARATIVE ADVANTAGE INTO CONSIDERATION TO ENSURE SOCIO- ECONOMIC SPINOFFS OF ITS LOCATION.”

The residential land uses are concentrated in an inter and intra settlement dispersed spatial distribution. This makes the application of the development principles such as sustainable human settlement development from an urban integration perspective a huge challenge and in some cases only attainable over a long term. If further necessitates the prioritization of settlements within predetermined urban development boundaries with the focus on spatial infill, densification, and urban consolidation as the preferred spatial form as objective of housing development within Pixley ka Seme District Municipality. In this regard it is critical the local municipalities facilitate an improved match between the demand and supply of different state-assisted national housing programmes. This approach envisages that municipalities will play a significantly and increased role in the housing process. This will assist to build linkages between housing delivery, spatial planning, socio-economic development, basic infrastructure provision and improved transportation system. It will thus support the integration of housing into the IDP’s, ensuring more effective management, budgetary and delivery coherence. PROFILE: CITY OF JOHANNESBURG METRO 37

8.2 Investor and Sponsorship Opportunities The District is endowed with a climate that allows Renewable Energy (RE) technologies like solar photovoltaic (PV) and wind generation to be installed almost anywhere in the country. These would contribute to South Africa’s process of diversifying its energy-mix to enhance energy security while also lowering green-house gas emissions.

According to the Renewable Energy Independent Power Producer Programme (REIPPP) focus on Northern Cape Provincial Report, Siyathemba Local Municipality has five (5) REIPPP projects in the area which produce 408MW combined. By successfully attracting a share of the Independent Power Producer Programme (IPPPP) portfolio investment, Emthanjeni, Siyathemba, Ubuntu, Renosterberg and Umsobomvu, are currently benefitting from substantial socio-economic development (SED) and Enterprise Development (ED) contributions leveraged by the IPPPP commitments. The SED and ED contributions provide an opportunity for the identification of viable projects that will promote the economic development of Siyathemba and neighbouring municipalities in the district.

As an international initiative by the International Square Kilometre Array Committee that sought to establish a fourth site that will be situated in the Southern Hemisphere, the Square Kilometre Array (SKA) Telescope holds great potential for human development in the region. The Karoo Array Telescope (Meerkat) project situated in the Pixley ka Seme District involves the construction of a world-class radio telescope, which is being built by the Department of Science and Technology and National Research Foundation near the towns of Carnarvon and Williston. The project is of national and potentially international importance and inherently holds educational and training opportunities for young people within the area.

National and provincial governments will have to support the district to ensure that technicians and scientists are developed through partnerships with the SKA to benefit young people across the province and the district.

Agriculture is a key economic factor in the district. Despite the largely semi-arid and arid environment in the district, the fertile land that lies alongside the Orange, Vaal and Riet Rivers supports the production of some of the country’s finest quality agricultural products. The district is well known for the quality of its meat –Karoo lamb, the production of wool, mohair, wine, maize and wheat. Livestock production is spread 38 PROFILE: CITY OF JOHANNESBURG METRO throughout the district municipality, with sheep and goats being the main livestock commodities.

Since agriculture is the cornerstone of food security in the country, Pixley ka Seme could position itself to be the supplier of agri-produce. To realize this, the expertise from companies such as GWK, OVK, BKB and all other agriculture companies in the area will be crucial to attract young people into agricultural technology and innovation. Through partnerships with these companies, the district municipality should leverage on its location to enhance the benefits that can be derived from agricultural and agro processing activities.

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