Central Karoo District Municipality 2017
CENTRAL KAROO DISTRICT: AT A GLANCE
1. DEMOGRAPHICS 2
2. EDUCATION 2
3. HEALTH 2
4. POVERTY 2
5. BASIC SERVICE DELIVERY 2
6. SAFETY AND SECURITY 2
7. THE ECONOMY 2
8. INFRASTRUCTURE DEVELOPMENT 2
SOURCES 34
2
Central Karoo District: At a Glance
Population Estimates, 2018; Actual households, 2016
75 688 21 980
2016 2016
Gini Coefficient 0.57 Matric Pass Rate 84.8% Human Development Index 0.6
2016
9 74.9% 0.0 8.0%
Percentage change between 2016 and 2017 in number of reported cases per 100 000
-9.1% -21.8% 11.6% -11.3% -22.1
Percentage of households with access to basic services, 2016
95.1% 90.8% 95.4% 97.1% 97.8%
2016 2016
39 Unemployment Rate Drought Financial Sustainability (Grant dependency)
58 23.2% Stagnating Economic Growth
Contribution to GDP, 2015
Wholesale and retail trade, Agriculture, forestry and General Government catering and accommodation fishing
2 22.9% 22.9% 17.7%
1
DEMOGRAPHICS
This first chapter of the SEP focusses on the people living in the Central Karoo District. A demographic perspective on a municipality allows to observe not only simple changes in population growth, but also to look at other various developments that influence the social life of every citizen. Demographics allow to emphasise aspects of society like, e.g. gender, race, migration or life expectancy. Decisions made by politicians as well as by the administration affect in almost every case at least one aspect of Demographics. Therefore, a good understanding of this area is crucial for the government’s work.
The overview of key demographic factors given in this chapter comprises of the estimates of population size, the distribution of population within age cohorts and furthermore the dependency ratio, which is of high importance for understanding economic activity in the area as well as for planning welfare systems. With this short, but informative overview, the SEP tries to help the municipalities in their budgeting process by delivering precise data as a solid foundation for future decisions.
Data source: Department of Social Development, 2017
1 2017 Socio-economic Profile: Central Karoo District Municipality
POPULATION
4 500 000 4 000 000 3 500 000 3 000 000 2 500 000 2 000 000 1 500 000 1 000 000 500 000 0 Cape Central Karoo City of Cape Overberg West Coast Winelands Eden District District Town District District District 2018 864 028 75 688 4 055 580 619 224 284 272 433 445 2019 874 413 76 354 4 094 582 625 186 287 752 439 036 2020 884 565 77 020 4 131 722 631 005 291 150 444 497 2021 894 441 77 685 4 167 003 636 682 294 466 449 847 2022 904 058 78 350 4 200 484 642 220 297 701 455 051 2023 913 391 79 014 4 232 276 647 627 300 860 460 132 The population of the Central Karoo District is expected to expand at a moderate rate across the next 5 years. As per above, the population will grow from 75 688 people in 2018 to 79 014 in 2023 which equates to a 0.9 per cent year-on-year growth rate.
AGE COHORTS
Children: Working Age: Aged: Dependency Year 0 - 14 Years 15 - 65 Years 65 + Ratio 2011 21 683 44 950 4 370 58.0
2018 20 430 49 643 5 616 52.5
2023 19 267 52 975 6 772 49.2
The above table depicts the population age cohorts of those living within the Central Karoo District. The total population is broken down into three different groups: Age 0 - 14: children; Age 15 - 65: working age population; Age 65+: seniors. A comparison between the 2018 and 2023 estimates show a sharp increase in the number of people within the working age and aged cohorts whilst the children grouping decreases across the same reference period. Labour market dynamics has in recent times increased the demand for skilled labour. This demand is potentially being met by external professionals which increases the concentration of people in the working age cohort. The dependency ratio in the Central Karoo is subsequently estimated to decrease notably towards 2023.
2 2017 Socio-economic Profile: Central Karoo District Municipality
2
EDUCATION
Education and training improves access to employment opportunities and helps to sustain and accelerate overall development. It expands the range of options available from which a person can choose to create opportunities for a fulfilling life. Through indirect positive effects on health and life expectancy, the level of education of a population also influences its welfare.
Data source: Western Cape Education Department, 2017
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LEARNER ENROLMENT
700 000
600 000
500 000
400 000
300 000
200 000
100 000
0 Cape City of Cape West Coast Overberg Central Karoo Winelands Eden District Town District District District District 2014 613 393 57 501 139 088 39 542 101 165 14 151 2015 628 048 58 909 141 263 40 501 102 412 14 182 2016 639 251 60 348 142 130 40 841 103 011 14 333
Learner enrolment in the Central Karoo District only increased marginally at an average annual rate of 0.6 per cent between 2014 and 2016, lower than any other district in the Western Cape. This rate is mostly influenced by the low enrolment rate in Beaufort West (where the majority of pupils in the Central Karoo are concentrated) across the same period (0.5 per cent). LEARNER-TEACHER RATIO Learner–teacher ratios within the various local municipalities of the Central Karoo District increased exponentially since 2014. The ratio is the worst in Prince Albert where the number of children per teacher increased from 31.8 in 2014 to 55.0 in 2016. Beaufort West increased from 32.2 in 2014 to 51.6 in 2016 whilst Laingsburg increased from 31.3 to 48.0 across the same period.
Increased learner-teacher ratios are a major concern as it is commonly assumed that children receive less personalised attention in larger class environments and that high learner-teacher ratios are detrimental to improved educational outcomes. GRADE 12 DROP-OUT RATES
High school drop-out rates in the Central Karoo District are alarmingly high. In Laingsburg, the drop-out rate was 72.3 in 2016 meaning that 72.3 per cent of all learners that enrolled in Grade 10 in Laingsburg in 2014 dropped out of school by the time they reached Grade 12 in 2016. The rate for Prince Albert was 48.1 per cent whilst Beaufort West was the lowest at 38.0 per cent. These high levels of drop-outs are influenced by a wide array of economic factors including unemployment, poverty, indigent households, high levels of households with no income or rely on less than R515 a month and teenage pregnancies.
The high drop-out rate is particularly concerning given the ever increasing demand for skilled and highly skilled labour within the region.
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EDUCATIONAL FACILITIES
The availability of adequate education facilities such as schools, FET colleges and schools equipped with libraries and media centres could affect academic outcomes positively.
35
30
25
20
15
10
5
0 Number of Schools with Libraries Total Number of Schools 2014 23 29 2015 23 29 2016 23 29
There were 29 schools within the greater Central Karoo District in 2014 of which 23 had functional libraries. The number of schools in the District remained unchanged since then. Although learner-enrolment in the District has only increased marginally, the number of schools could become problematic in future, evident from the fact that the learner-teacher rate in the District has increased significantly in recent years.
90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Cape City of Cape West Coast Overberg Central Karoo Winelands Eden District Town District District District District 2014 46.2% 72.1% 77.2% 78.6% 77.4% 79.3% 2015 46.2% 72.1% 77.2% 78.6% 76.9% 79.3% 2016 46.3% 70.4% 76.3% 79.8% 75.3% 79.3%
Above graph depicts the percentage of no-fee schools within the various Districts of the Western Cape. The Central Karoo District, arguably the poorest region in the Western Cape, from an economic perspective, has the largest number of no-fee schools – 79.3 per cent (102) of the total 129 schools across the District in 2016 were considered to be no-fee institutions. The fact this number has remained unchanged since 2014 does however appear problematic amidst increased economic hardship across the Province and South Africa as a whole.
5 2017 Socio-economic Profile: Central Karoo District Municipality
EDUCATION OUTCOMES
Education remains one of the key avenues through which the state is involved in the economy. In preparing individuals for future engagements in the broader market, policy decisions and choices in the sphere of education play a critical role in determining the extent to which future economy and poverty reduction plans can be realised. This section measures the matric pass rates within the Central Karoo District.
100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Beaufort West Prince Albert Laingsburg 2014 67.60% 76.60% 76.60% 2015 85.50% 98.30% 69.20% 2016 76.60% 69.20% 90.30%
Matric pass rates amongst the various local municipalities in the Central Karoo District varied considerably between 2014 and 2016. In Beaufort West, the matric pass rate increased significantly from 67.6 per cent of all matrics in 2014 to 85.5 per cent in 2015, before dropping to 76.6 per cent in 2016. Similarly, the pass rate in Prince Albert increased well between 2014 (76.6 per cent) and 2015 (98.3 per cent) before dropping off in 2016 (69.2 per cent). The inverse was true for Laingsburg, where the pass rate dropped notably from 76.6 per cent in 2014 to 69.2 per cent in 2015, before jumping to 90.3 per cent in 2016. At 69.2 per cent in 2016, Prince Albert had the lowest pass rate in the Central Karoo District. A decrease in the matric pass rate does not bode well for improved access to higher education opportunities.
The Central Karoo and Eden Districts collectively achieved a matric pass rate of 84.8 per cent in 2016 which is slightly below the Provincial average of 86.0 per cent.
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3
HEALTH
Health is another major factor contributing to the general quality of life in the Central Karoo. It is therefore important to monitor the public health facilities as well as a variety of factors as diseases like HIV or TB and general topics that affect the community, like maternal health. This Socio-economic Profile provides the basic statistics concerning those issues. Since this profile focusses on the public health facilities, private facilities do not appear in it.
Data source: Department of Health, 2017
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HEALTHCARE FACILITIES
All citizens’ right to access to healthcare services are directly affected by the number and spread of facilities within their geographical reach. South Africa’s healthcare system is geared in such a way that people have to move from primary, with a referral system, to secondary and tertiary levels.
30 25 20 15 10 5 0 Total Number of Number of Number of number of Number of PHC Clinic - Number of Community ART clinics/ TB clinics/ PHC facilities district non-fixed PHC Clinics - Day Centres treatment treatment (Fixed hospitals (mobiles/sat Fixed sites sites Clinics, CHCs elite) and CDCs) 2014 1 10 4 13 8 27 9 2015 1 12 4 8 8 22 9 2016 1 12 4 9 8 22 9
In 2016, the Central Karoo District had a total number of 9 primary healthcare facilities – 8 fixed PHC clinics as well as 1 community day centre. In addition, there are 12 ART and 22 TB treatment sites as well as one regional hospital within the municipal area. The number of ART treatment sites increased between 2014 and 2015 whilst the number of TB clinics decreased notably across the same period. The total number of PHC clinics also decreased between 2014 (13) and 2015 (8). EMERGENCY MEDICAL SERVICES
Access to emergency medical services is critical for rural citizens due to rural distances between towns and health facilities being much greater than in the urban areas. Combined with the relatively lower population per square kilometre in rural areas, ambulance coverage is greater in rural areas in order to maintain adequate coverage for rural communities.
The number of ambulances per 10 000 people in the Central Karoo was in 2017 estimated to be 1.71. Despite the region’s lower population numbers, the number of ambulances remain a major concern for local authorities and several reported cases have been noted where inhabitants could not be transported to medical facilities in the event of an emergency.
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HIV/AIDS
HIV/AIDS management is crucial given its implications for
the labour force and the demand for healthcare services.
Registered patients Number of new ART HIV Transmission Rate Area receiving ART patients 2014 2015 2016 2014 2015 2016 2014 2015 2016 City of Cape 131 177 145 232 162 704 27 663 30 275 32 268 1.3 1.3 0.7 Town West Coast 6 521 7 651 8 910 1 484 1 790 1 835 1.4 1.5 0.8 Cape Winelands 19 615 23 172 27 162 4 595 5 195 5 097 1.7 1.7 1.5 Overberg 7 233 8 703 10 397 1 451 1 983 1 767 1.3 0.6 0.0 Eden 14 805 17 391 20 127 3 278 3 820 3 603 1.6 1.4 1.8 Central Karoo 1 418 1 416 1 631 327 300 299 3.4 4.3 1.4
The number of registered patients receiving antiretroviral treatment (ART) in the Central Karoo District remained unchanged between 2014 and 2015, before increasing by 15.2 per cent to 1 631 patients in 2016. The number of new ART patients however decrease slightly from 327 patients in 2014 to 300 in 2015 and 299 in 2016. The increase in the number of registered patients corresponds with the increase in treatment facilities in the District.
In addition to improving the quality of life of the patient, antiretroviral treatment to mothers both before and at birth, also decreases the chances that infants will contract HIV from their mothers. Progress made to increase access to ART medication contributed to the HIV transmission rate between mother and child decreasing considerably since 2014.
TUBERCULOSIS
615 610 610 605 2014 600 597 2015 594 595 2016 590 585 Number of TB patients
The number of TB patients within the Central Karoo District has gradually been declining from 610 patients in 2014 to 597 in 2015 which equates to a 2.1 per cent decline. This number slightly decreased to 594 in 2016.
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CHILD HEALTH
Central Karoo Health Indicator Western Cape District Immunisation 74.9% 79.9%
Malnutrition 10.2 2.3
Neonatal mortality 14.0 4.6 rate
Low birth weight 21.8% 14.3%
The Department of Health strongly advises mothers to protect their children from infectious diseases by getting them vaccinated from birth to when they are 12 years old. Vaccination is free of charge at all health facilities. The Department also runs immunisation campaigns and health workers are sent to nursery schools and crèches to immunise the children. The full immunisation coverage rate for children under the age of one in the Central Karoo District in 2016 was 74.9 per cent which is lower than the Western Cape rate of 79.9 per cent.
There were 10.2 malnourished children under five years per 100 000 people in the Central Karoo District in 2016 which is almost three times that of the Western Cape rate of 2.3.
The Province had by 2016 already achieved its goal of reducing neonatal deaths to 6 per 1 000 live births by 2019. The Central Karoo District’s neonatal mortality rate (NMR) was at 14.0 in 2016 still more than double the provincial target. To put this high number into perspective, it is worth noting that the Eden District had the second highest neonatal mortality rate at 6.9.
A total of 21.8 per cent of all babies born in the Central Karoo District in 2017 were considered to be underweight which is considerably higher than the provincial rate of 14.3 per cent.
DEFINITIONS
Immunisation: The immunisation rate is calculated as the number of children immunised as a percentage of the total number of children less than one year of age. Immunisation protects both adults and children against preventable infectious diseases. Low immunisation rates speak to the need for parents to understand the critical importance of immunisation, as well as the need to encourage parents to have their young children immunised.
Malnutrition: Expressed as the number of malnourished children under five years per 100 000 people. Malnutrition (either under- or over-nutrition) refers to the condition whereby an individual does not receive adequate amounts or receives excessive amounts of nutrients.
Neonatal mortality rate: Measured as the number of neonates dying before reaching 28 days of age, per 1 000 live births in a given year. The first 28 days of life (neonatal period) represent the most vulnerable time for a child’s survival. The Province’s target for 2019 is 6.0 per 1 000 live births.
Low birth weight: Percentage of all babies born in facility that weighed less than 2 500 g. Low birth weight is associated with a range of both short- and long-term consequences.
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MATERNAL HEALTH
Central Western Health Indicator Karoo District Cape Maternal Mortality Ratio 0.0 0.1 Delivery Rate to Women 8.0% 5.7% under 18 years Termination of Pregnancy 0.0% 1.1% Rate
The maternal mortality rate for the Central Karoo District is zero whilst the Western Cape rate is 0.1 which attests of improved maternal healthcare interventions such as the upskilling of health professionals, especially nurses, and the implementation of best practices.
The delivery rate to women under the age of 18 years in the Central Karoo District has gradually been on the decrease from 9.8 per cent in 2015 to 8.0 per cent in 2016. The Western Cape rate for 2016 was 5.7 per cent.
The termination of pregnancy rate in the Central Karoo District was zero in 2016 whilst the Western Cape rate was 1.1 per cent.
DEFINITIONS
Maternal health refers to the health of women during pregnancy, childbirth and the postpartum period.
Maternal mortality rate: Maternal deaths per 100 000 live births in health facilities. Maternal death is death occurring during pregnancy, childbirth and the puerperium of a woman while pregnant or within 42 days of termination of pregnancy, irrespective of the duration and site of pregnancy and irrespective of the cause of death (obstetric and non-obstetric).
Births to teenage mothers: Percentage of babies born to mothers under the age of 18 years. Teenage pregnancy is almost always unplanned; as a result, when young parents are placed in a position to care for their children, life can become particularly tough, especially
if they do not have family or social support.
Termination of pregnancy: The percentage of terminations as a proportion of the female population aged 15 to 44 years. Government hospitals, designated private doctors and gynaecologists, and non-profit providers offer safe and legal termination of pregnancy. To have a free abortion, the request must be made at a primary healthcare clinic, where the pregnancy will be confirmed, counselling provided, an appointment made, and a referral letter be given to a facility where the procedure can be performed.
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4
POVERTY
This section shows living conditions and economic circumstances of households within the Central Karoo District based on most recent data including Statistics South Africa’s Non- Financial Census of Municipalities 2016 and Quantec. Economic theory suggests that when an economy prospers its households are expected to enjoy a good standard of living. On the contrary, a declining economy tends to lower the standards of living of people. This section uses indicators in terms of GDP per capita, income inequality, human development, as well as indigent households and free basic services to show the current reality of households residing in the Central Karoo.
The deteriorating financial health of households and individuals under the weight of economic pressures, specifically between 2011 and 2015, has resulted in an increase in the poverty levels, according to the Poverty Trends in South Africa report released by Statistics South Africa in 2017. The report cites rising unemployment levels, low commodity prices, higher consumer prices, lower investment levels, household dependency on credit, and policy uncertainty as the key contributors to the economic decline in recent times. These recent findings indicate that the country will have to reduce poverty at a faster rate than previously planned.
According to the report the categories of people vulnerable to poverty remained to be African females, children 17 years and younger, people from rural areas, and those with no education. Inflation-adjusted poverty lines show that food poverty increased from R219 in 2006 to R531 per person per month in 2017. The lower-bound poverty line has increased from R370 in 2006 to R758 per person per month in 2017 while the upper-bound poverty line has increased from R575 in 2006 to R1 138 per person per month in 2017.
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GDPR PER CAPITA
An increase in real GDPR per capita, i.e. GDPR per person, is experienced only if the real economic growth rate exceeds the population growth rate.
80 000 70 000 60 000 50 000 40 000 30 000
20 000 GDPR per capita per GDPR 10 000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Western Cape City of Cape Town West Coast Cape Winelands Overberg Eden Central Karoo
Source: Stats SA 2017, own calculations
It is clear from above graph that GDP per capita in the Central Karoo District is significantly below the Western Cape average and that of any other district. These low levels of GDP per capita is reflective of the District’s relative low economic output, coupled with the small population size. INCOME INEQUALITY
The National Development Plan has set a target of reducing income inequality in South Africa from a Gini coefficient of 0.7 in 2010 to 0.6 by 2030.
0.62
0.60
0.58
0.56
0.54
Gini coefficientGini 0.52
0.50 City of Cape West Coast Cape Overberg Eden Central Karoo Western Cape Town Winelands 2010 2011 2012 2013 2014 2015 2016
Source: Global Insight, 2017
It is concerning to note that income inequality has on average been increasing in not only the Central Karoo District, but the broader Western Cape Province as well. Income inequality in the Central Karoo District is however notably lower than in any other District. Households and individuals within the Central Karoo therefore benefit more equally from regional growth. The Gini coefficient for the Central Karoo is estimated to be 0.57 in 2016.
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HUMAN DEVELOPMENT The United Nations uses the Human Development Index (HDI)1 to assess the relative level of socio-economic development in countries.
0.8
0.6
0.4 HDI
0.2
0 City of Cape West Coast Cape Overberg Eden Central Karoo Western Cape Town Winelands 2010 2011 2012 2013 2014 2015 2016 Source: Global Insight, 2017
Despite increasing levels of income inequality across the Western Cape, overall human development appears to gradually be on the increase in all districts. Although the HD Index in the Central Karoo is relatively low in comparison to other districts, it appears to be improving at a rate faster than any other district. Do bear in mind that HDI only considers a select number of indicators (education, housing, access to basic services and health) and does therefore not offer a conclusive reflection of the overall levels of human development. The Central Karoo District’s HDI is calculated to be 0.68 in 2016. INDIGENT HOUSEHOLDS
The constraining macroeconomic climate is expected to impact heavily on the various municipal areas of the Western Cape, especially in rural communities where an economic downturn will result in significant job losses. Rising unemployment figures will subsequently result in a decrease in expendable household income which, coupled with rising inflation rates, will force many families into poverty. Municipal services will ultimately become unaffordable, resulting in these households becoming reliant on free basic service which will in turn strain the already limited resources of a municipality.
Area 2014 2015 2016 Central Karoo District 6 161 7 353 8 341 Western Cape 404 413 505 585 516 321 Source: Department of Local Government, 2017
The number of indigent households with the Central Karoo District has since 2014 been increasing rapidly. This increase can potentially be linked to job losses within the agricultural sector.
1 The HDI is a composite indicator reflecting education levels, health, and income. It is a measure of peoples' ability to live a long and healthy life, to communicate, participate in the community and to have sufficient means to be able to afford a decent living. The HDI is represented by a number between 0 and 1, where 1 indicates a high level of human development and 0 represents no human development.
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5
BASIC SERVICE DELIVERY
The Constitution of the Republic of South Africa states that every citizen has the right to access to adequate housing and that the state must take reasonable legislative and other measures within its available resources to achieve the progressive realisation of this right. Access to housing also includes access to services such as potable water, basic sanitation, safe energy sources and refuse removal services, to ensure that households enjoy a decent standard of living.
This section reflects on housing and basic services access levels (Census 2011) and the incremental progress municipalities have made hereto within the last 5 years (Community Survey 2016).
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HOUSEHOLDS
In order to ensure basic service delivery to all, municipal budget allocations should be informed by credible and accurate assumptions regarding the number of households within a municipal area.
Access to formal housing and services in the Central Karoo District is measured against a total of 19 076 households in 2011 and 21 980 in 2016 which equates to average annual growth of 2.9 per cent (581 households). The District’s household growth rate was therefore below that of the Western Cape (3.4 per cent).
Average Average Area 2011 2016 annual annual growth increase 2011 - 2016 Central Karoo District 19 076 21 980 2.9% 581 Western Cape 1 634 000 1 933 876 3.4% 59 975 ACCESS TO HOUSING
SERVICE STANDARD DEFINITION: Households with access to a formal dwelling.
Average Average Total annual annual Area 2011 2016 increase increase growth 2011 - 2016 2011 - 2016 2011 - 2016 Central Karoo District 97.0% 97.8% 3 003 601 3.1% Western Cape 80.4% 82.4% 280 254 56 051 3.9%
The percentage of households with access to a formal dwelling in the Central Karoo District increased slightly from 97.0 per cent in 2011 to 97.8 per cent in 2016 which indicates that housing delivery across the District takes place at a faster rate than the growth in the total number of households. The number of formal dwellings in the Central Karoo increased by 3 003 between 2011 and 2016, at an average annual rate of 3.1 per cent, which translates into approximately 601 additional formal dwellings per year over this period.
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ACCESS TO WATER
Given the Western Cape’s current drought situation, great focus is currently placed on water availability, supply and quality. Access to safe potable water is essential to prevent the contraction and spread of diseases and maintaining a healthy life.
SERVICE STANDARD DEFINITION: Households with access to piped water inside the dwelling or yard or within 200 metres from the yard.
Average Average Total annual annual Area 2011 2016 increase increase growth 2011 - 2016 2011 – 2016 2011 - 2016 Central Karoo District 99.4% 95.1% 1 930 386 2.0% Western Cape 99.1% 99.0% 294 292 58 858 3.4%
An additional 1 930 households enjoyed access to piped water in the Central Karoo District between 2011 and 2016. The number of households in the District across this period however increased by 2 904 which indicates that growth in the number of households is outpacing the delivery of water services. Access to water services subsequently decreased from 99.4 per cent in 2011 to 95.1 per cent in 2016 – the lowest access rate amongst all other districts. Access levels across the Western Cape as a whole remained relatively unchanged between 2011 (99.1 per cent) and 2016 (99.0).
ACCESS TO SANITATION
Access to sanitation promotes health and dignity through the provision of safe disposal and treatment of human waste. Where sanitation systems are inadequate, negative health effects can be extremely serious. The current drought highlights challenges in the use of potable water within the sanitation services process.
SERVICE STANDARD DEFINITION: Households with access to a flush or chemical toilet connected to the sewerage system.
Average Average Total annual annual Area 2011 2016 increase increase growth 2011 - 2016 2011 – 2016 2011 - 2016 Central Karoo District 89.5% 97.1% 4 270 854 4.6% Western Cape 90.5% 94.6% 351 662 70 332 4.4%
The Central Karoo District has since 2011 made significant progress in terms of providing all citizens with access to acceptable standards of sanitation services, to the extent that 97.1 per cent of all households in 2016 enjoy access to a flush toilet connected to a sewerage system, up from 89.5 per cent in 2011. The Central Karoo has the highest access levels amongst all districts.
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ACCESS TO ELECTRICITY
Energy is essential for human life and households generally apply electricity for cooking, heating and lighting purposes. Energy sources also have usage risks; for example, health and safety risks especially in the use of paraffin and open flame usage.
SERVICE STANDARD DEFINITION: Households with access to electricity as the primary source of lighting.
Average Average Total annual annual Area 2011 2016 increase increase growth 2011 - 2016 2011 - 2016 2011 - 2016 Central Karoo District 89.4% 95.4% 3 931 786 4.2% Western Cape 93.4% 96.5% 340 551 68 110 4.1%
The provision of electricity in the Central Karoo District accelerated notably since 2011 with access to electricity as primary lighting source increasing from 89.4 per cent in 2011 to 95.4 per cent in 2016. Similarly, access levels across the Western Cape increased from 93.4 per cent in 2011 to 96.5 per cent in 2016. These increases can largely be attributed to the enhanced roll-out of the Integrated National Electrification Programme (INEP). ACCESS TO REFUSE REMOVAL
Refuse removal is an essential service that ensures that health related problems are kept at bay. A lack of or inadequate service is likely to result in illegal dumping. There are growing concerns around the land and environmental limitations in the creation and lifespan of landfill sites. This would benefit greatly from the ‘reduce – reuse – recycle’ approach, that encourages non-wasteful consumption practices (reduce), the reuse of products where possible (reuse) and the recycling of the product where its use in current form has been exhausted (recycle).
SERVICE STANDARD DEFINITION: Households who have solid waste removed by local authorities at least weekly.
Average Average Total annual annual Area 2011 2016 increase increase growth 2011 – 2016 2011 - 2016 2011 - 2016 Central Karoo District 78.7% 90.8% 4 946 989 5.9% Western Cape 89.9% 86.8% 211 083 42 217 2%
Great strides have been made to extend refuse removal services to all households in the Central Karoo i.e. access to waste removal services at least once a week improved from 78.7 per cent in 2011 to 90.8 per cent in 2016. The remaining backlog can arguably be attributed to outlining farm areas that does not fall within the ambit of responsibility of the various local municipalities.
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SAFETY AND SECURITY
The Constitution upholds the notion that everybody has the right to freedom and security of the person. The safety of persons and property is therefore vitally important to the physical and emotional well-being of people and business. Without the respect of person and property, it would be impossible for people to live peacefully, without fear of attack and for businesses to flourish.
The extent of crime in South Africa does however not only have a significant impact on the livelihood of citizens, but also affects the general economy. Crime hampers growth and discourages investment and capital accumulation. If not addressed with seriousness, it has the potential to derail both social and economic prosperity.
People’s general impressions, as well as official statistics on safety and crime issues, mould perceptions of areas as living spaces or places in which to establish businesses. The discussion in this section that follows is limited to the reported contact and property-related crime such as murder and sexual crimes, as well as crime heavily dependent on police action for detecting drug-related crimes and driving under the influence of alcohol/drugs.
Note: Percentage change calculation will differ from the actuals reflected due to rounding down to per 100 000 population.
Data source: The data depicted in the following section was sourced from the 2017 Crime Statistics released by the South African Police Service (SAPS) in October 2017. Incidences of crime per 100 000 were calculated using actual crime and estimated population figures provided by SAPS. Also note that although the crime data contained in the following section is for ease of reference depicted as a single calendar year, it is in actual fact referring to criminal activity within a financial year i.e. incidences of murder for 2016 is referring to occurrences within the period April 2016 to March 2017.
The information relating to fatal crashes and crash fatalities were sourced from the Department of Transport and Public Works.
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MURDER
Area 2016 2017 % Change
Central Karoo District 54 48 -11.3% (per 100 000)
Western Cape 50 50 0.5% (per 100 000)
Definition: Murder is a social contact crime resulting in the loss of life of the victim, but excludes cases where the loss of life occurred as a result of a response to a crime, for example self-defence.
The murder rate in the Western Cape remained unchanged at 50 incidences per 100 000 population between 2016 and 2017. It is relieving to note that the number of murders across the Central Karoo District decreased notably from 54 incidences per 100 000 people in 2016 to 48 in 2017 which equates to a 11.3 per cent decrease. The Central Karoo rate is also slightly below that of the Western Cape. Despite this decrease and its relatively small population, the Central Karoo has the highest murder rate amongst the various districts of the Western Cape. SEXUAL OFFENCES
Area 2016 2017 % Change
Central Karoo District 184 143 -22.1% (per 100 000) Western Cape 111 108 -2.3% (per 100 000)
Definition: Sexual offences includes rape (updated to the new definition of rape to provide for the inclusion of male rape), sex work, pornography, public indecency and human trafficking.
The rate of sexual violence in South Africa is amongst the highest in the world. In addition, a number of sexual offence incidences often go unreported (as in the case of rape).
The number of reported cases of sexual offences per 100 000 people in the Central Karoo is at 143 in 2017 considerably higher than the Western Cape average of 108. The Central Karoo is the District with the second highest sexual offences rate (second only after the Eden District). That being said, incidence of sexual offences in the District decreased by 22.1 per cent between 2016 (184) and 2017 (143).
In turn, sexual offences in the Western Cape as a whole decreased slightly from 111 incidences per 100 000 people in 2016 to 108 in 2017 (2.3 per cent decrease).
20 2017 Socio-economic Profile: Central Karoo District Municipality
DRUG-RELATED CRIMES
Area 2016 2017 % Change
Central Karoo District 1 655 1 847 11.6% (per 100 000)
Western Cape 1 461 1 633 11.8% (per 100 000)
Definition: Drug-related crimes refers to the situation where the perpetrator is found to be in possession of, under the influence of, or selling illegal drugs. This is a crime detected through police activity rather than reports by members of the public. An increase in crimes of this nature may therefore reflect an increase in police.
Drug-related crimes have a negative impact on human development by degrading the quality of life as it infiltrates all aspects of society including families, health, the work environment and the economy. It is very concerning to note that drug-related offences increased considerably between 2016 and 2017 in both the Central Karoo (11.6 per cent) and the Western Cape as a whole (11.8 per cent). At 1 847 reported cases per 100 000 people in 2017, drug-related crimes within the Central Karoo is higher than in any other district in the Western Cape. DRIVING UNDER THE INFLUENCE
Area 2016 2017 % Change
Central Karoo District 173 135 -21.8% (per 100 000)
Western Cape 182 196 7.6% (per 100 000)
Definition: DUI refers to a situation where the driver of a vehicle is found to be over the legal blood alcohol limit. This is a crime detected through police activity rather than reports by members of the public.
Despite concerted efforts by government our roads are still considered amongst the most dangerous in the world. Reckless driving and alcohol consumption remain the top reason for road accidents.
The number of cases of driving under the influence of alcohol or drugs per 100 000 people in the Central Karoo District decreased significantly by 21.8 per cent from 173 incidences in 2016 to 135 in 2017. This decrease can potentially be attributed to more visible policing efforts as well as the roll-out of awareness campaigns. The number of DUI cases across the Western Cape as a whole increased notably from 182 reported cases in 2016 to 196 in 2017 (7.6 per cent).
21 2017 Socio-economic Profile: Central Karoo District Municipality
RESIDENTIAL BURGLARIES
Area 2016 2017 % Change
Central Karoo District 1 039 945 -9.1% (per 100 000)
Western Cape 739 700 -5.3% (per 100 000)
Definition: Residential burglary is defined as the unlawful entry of a residential structure with the intent to commit a crime, usually a theft.
Given its regular occurrence and the psychological impact on victims, residential burglaries are an obstinate concern in South Africa. Residential burglaries are on the decrease across the Western Cape as a whole – the number of burglaries per 100 000 people decreased from 739 reported cases in 2016 to 700 in 2017 which amounts to a 5.3 per cent decrease. Similarly, burglaries in the Central Karoo decreased from 1 039 cases in 2016 to 945 in 2017, a 9.1 per cent decrease. FATAL CRASHES
Area 2015 2016 % Change
Central Karoo District 38 39 2.6%
Western Cape 1 202 1 228 2.2%
Definition: A crash occurrence that caused immediate death to a road user i.e. death upon impact, flung from the wreckage, burnt to death etc.
In 2015, there were a total of 38 fatal crashes involving motor vehicles, motorcycles, cyclists and pedestrians within the jurisdiction of the Central Karoo District Municipality. This number remained relatively unchanged, only increasing by one incident in 2016.
22 2017 Socio-economic Profile: Central Karoo District Municipality
ROAD USER FATALITIES
Area 2016 2017 % Change
Central Karoo District 61 58 -4.9
Western Cape 1 357 1 397 3.0
Definition: The type of road user that died in or during a crash i.e. driver, cyclist, passengers, pedestrians.
According to a recent study, the majority of road fatalities in Africa fall within the working age cohort - between the ages of 15 - 44 years - whilst three out of four fatalities were found to be male (Peden et al., 2013). The untimely death of these primary breadwinners therefore impacts directly upon not only the livelihood of family structures, but deprive society of active economic participants that contribute towards growth and development. The socio-economic impact of such road fatalities has proven to be particularly devastating in South Africa where the majority of road users hail from poor and vulnerable communities.
The previous section specified that a total of 39 fatal crashes occurred within the Central Karoo District in 2016. A total of 58 road users died in those crashes. This is 13 less deaths than the 61 recorded in 2015.
Additional, lower-level information regarding the time, location, gender, ages of above specified crashes are available from the Department of Transport and Public Works upon request.
23 2017 Socio-economic Profile: Central Karoo District Municipality
7
THE ECONOMY
Economic growth at the municipal level is essential for the attainment of economic development, the reduction of poverty and improved accessibility. Fostering this growth requires an in-depth understanding of the economic landscape within which each respective municipality operates.
Most municipalities within the Western Cape are currently experiencing hydrological drought conditions where the severe weather is affecting groundwater levels in natural springs, streams, reservoirs and dams to the extent that potable water has reached alarmingly low levels. An overview of the current economic reality facing the municipalities of the Western Cape would therefore not be complete without elaborating on the manner in which the drought impacts upon the short and medium term financial and economic sustainability of local authorities.
24 2017 Socio-economic Profile: Central Karoo District Municipality
ECONOMIC SECTOR PERFORMANCE
The Central Karoo’s average annual five-year GDPR growth rate of 2.1 per cent is less than the average annual 10-year growth rate of 3.0 per cent, indicating that the economy did not fully recover from the recession. The regional economy contracted again in 2016 by 1.2 per cent mainly as a result of the contraction of the agriculture, forestry and fishing, the electricity, gas and water, the manufacturing, the mining and quarrying, the transport, storage and communication and the community, social and personal services sectors.
Below table outlines the GDPR performance of the various sectors and associated subsectors that contributed to the Central Karoo District’s economy between 2005 and 2016.
Central Karoo District GDPR performance per sector, 2005 – 2016
Contribution R million Trend Real GDPR growth (%) to GDPR (%) value Sector 2015 2015 2005 - 2015 2010 - 2015 2011 2012 2013 2014 2015 2016e Primary Sector 14.6 382.3 4.5 1.1 0.8 1.9 3.0 8.7 -2.9 -9.3 Agriculture, forestry 14.5 381.2 4.5 1.1 0.8 1.9 3.0 8.7 -2.9 -9.3 and fishing Mining and quarrying 0.0 1.1 0.8 3.5 3.5 1.8 4.1 8.0 1.5 -5.0 Secondary Sector 13.8 361.3 2.6 1.8 2.0 -0.2 1.6 3.4 -0.3 -0.1 Manufacturing 2.5 66.9 1.1 2.3 2.6 1.9 -1.6 1.7 0.4 -0.4 Electricity, gas and 5.6 146.1 1.1 1.3 3.7 1.1 -0.1 0.0 0.1 -5.3 water Construction 5.6 148.3 5.4 1.9 0.2 -2.8 5.3 7.4 -1.1 4.4 Tertiary Sector 71.7 1 882.9 2.8 2.4 4.1 2.9 2.9 1.8 1.0 0.6 Wholesale and retail 15.0 392.9 2.1 2.3 3.6 3.0 1.1 0.5 0.3 0.8 trade, catering and accommodation Transport, storage 15.6 409.8 0.5 0.3 2.0 0.7 1.0 1.7 -1.9 -2.2 and communication Finance, insurance, 11.1 290.2 4.3 2.6 2.8 3.4 2.3 2.5 3.7 2.1 real estate and business services General government 20.4 536.6 4.2 4.0 6.4 3.9 5.2 3.6 1.4 2.0 Community, social 9.6 253.4 3.0 2.4 5.1 3.8 5.1 -0.7 2.0 -0.8 and personal services Total Central Karoo 100 2 626.5 3.0 2.1 3.2 2.4 2.8 3.2 0.2 -1.2 District Source: Quantec Research, 2017 (e denotes estimate)
Economic activities within the primary sector are largely driven by the agriculture, forestry and fishing subsector which contributed 14.5 per cent to the District’s GDPR in 2015. With average annual growth of 4.5 per cent between 2005 and 2015, agriculture, forestry and fishing was the second fastest growing subsector in the District (behind construction at 5.4 per cent). Despite its historic strong showing, this subsector declined considerably in recent years, maintaining growth of only 1.1 per cent between 2010 and 2015. The agriculture, forestry and fishing subsector achieved a growth rate of 8.7 per cent in 2014 due to declining global maize prices and increases in meat prices, which favoured local livestock farmers. On a national level, slaughter numbers increased significantly in 2014 due to the higher prices in that year, which impacted the future growth rate of the agriculture, forestry and fishing sector as flocks need
25 2017 Socio-economic Profile: Central Karoo District Municipality
to be rebuilt. Together with the drought conditions, maize price increases, and the reduced stock, the agriculture, forestry and fishing sector contracted in 2015 and 2016.
The GDPR contribution of the mining and quarrying sector is insignificant across the District, although potential for mining exists, with uranium and shale gas deposits located in the District and the possibility of utilising these resources are currently being explored.
Secondary sector activities in the Central Karoo are driven by the construction; electricity, gas and water subsectors and to a lesser extent, the manufacturing subsector. The construction subsector reached a GDPR growth rate of 7.4 per cent in 2014, which also contributed to the good economic growth of the District during that time. Road works on the N1 in 2013, between Laingsburg and Leeu-Gamka as well as between Leeu-Gamka and Beaufort West, contributed to this growth (SANRAL, 2014). The construction subsector, which grew by 4.4 per cent, achieved the highest growth rate in 2016 compared to other sectors which can be attributed to investment from the Beaufort West Municipality in acquiring service providers for the paving of roads as well as the upgrade and extension of sewer works.
It is evident that the Central Karoo District’s economy is mostly characterised by tertiary sector activities which collectively contributed 71.7 per cent (R1.883 billion) to the total GDPR. This sector has historically performed moderately, experiencing average annual growth of 2.8 per cent between the period 2005 and 2015. Tertiary sector growth subdued in the last 5 years, growing by 2.4 per cent between 2010 and 2015 and is expected to decrease even further to 0.6 per cent in 2016. Beaufort West is the biggest town in the District, hence why the municipal area represents the largest tertiary sector within the CKD.
The three largest contributors to the tertiary sector was in 2015 the general government (20.4 per cent), transport, storage and communication (15.6 per cent) and the wholesale and retail, trade, catering and accommodation (15.0 per cent) subsectors. These three subsectors were also the largest contributors to the overall economy of the Central Karoo, collectively contributing R1.229 billion to GDPR in 2015. The general government subsector, whose activities are mainly concentrated within Beaufort West, has been growing at an above average pace, maintaining average annual growth of 4.3 per cent between 2005 and 2015, only slowing slightly to 4.0 per cent in the last 5 years (2010 – 2015). The strength of this subsector is further illustrated by the estimate that it will grow at 2.0 per cent in 2016 in a time where the District’s growth is expected to be -1.2 per cent.
Given the District’s geographical importance as strategic transport corridor towards the northern part of South Africa, the transport, storage and communication subsector contributes significantly to economic activities within the Central Karoo. Despite its large contribution to GDPR, this subsector has recorded less than satisfactory growth of 0.5 per cent between 2005 and 2010. Growth has further slowed to 0.3 per cent for the period 2010 – 2015.
Wholesale and retail trade, catering and accommodation subsector performed consistently, maintaining average annual growth of 2.1 per cent for the period 2005 – 2015, albeit below the District average of 3.0 per cent across the same period.
26 2017 Socio-economic Profile: Central Karoo District Municipality
LABOUR
The number of job opportunities in the Central Karoo was in 2015 estimated to be approximately 18 501 which equates to 0.7 per cent of employment in the Western Cape. The region is therefore the smallest employer in the Western Cape. The majority of these jobs were in 2015 concentrated within the tertiary sector (68.7 per cent; 12 708). Job creation across the District has been relatively consistent since 2005, with 2 076 employment opportunities created between 2005 and 2015 and 2 023 in the last five years (2010 – 2015). Job creation will however stagnate towards 2016 with only 6 additional opportunities expected to be created.
Below table reflects the employment growth trends within each economic sector contributing to the district economy.
Drakenstein employment growth per sector Contribution to Number of Trend Employment (net change) employment (%) jobs Sector 2015 2015 2005 - 2015 2010 - 2015 2011 2012 2013 2014 2015 2016e Primary Sector 22.9 4 243 -798 814 -119 211 195 -209 979 -16 Agriculture, 22.9 4 242 -798 814 -119 211 195 -209 979 -16 forestry and fishing Mining and 0.0 1 0 0 0 0 0 0 0 0 quarrying Secondary Sector 8.4 1 550 125 104 33 18 46 59 28 32 Manufacturing 1.6 305 -77 -15 -5 -17 16 -11 5 -10 Electricity, gas and 0.5 93 37 21 2 5 3 2 4 5 water Construction 6.2 1 152 165 98 36 30 27 68 19 37 Tertiary Sector 68.7 12 708 2 749 1 105 243 240 340 337 248 -10 Wholesale and 22.9 4 231 773 219 92 94 65 81 96 -64 retail trade, catering and accommodation Transport, storage 5.5 1 014 276 65 -6 36 39 -25 62 -46 and communication Finance, 7.9 1 461 234 52 24 -1 21 -2 47 -17 insurance, real estate and business services General 17.7 3 278 1 021 561 149 76 72 211 -52 82 government Community, social 14.7 2 724 445 208 -16 35 143 72 95 35 and personal services Total Central Karoo 100 18 501 2 076 2 023 157 469 581 187 1 255 6 District Source: Quantec Research, 2017 (e denotes estimate)
The agriculture, forestry and fishing and the wholesale and retail trade, catering and accommodation subsectors were in 2015 the largest employers within the Central Karoo, each contributing 22.9 per cent of jobs to total employment. Despite the large share of total employment, these two subsectors did not create the most job opportunities between 2005 and 2015. It was in fact the general government subsector that create the most opportunities with 1 021 jobs. In comparison, wholesale and retail trade, catering and accommodation created 773 jobs whilst agriculture, forestry and fishing in turn shed 798 jobs.
27 2017 Socio-economic Profile: Central Karoo District Municipality
Last mentioned subsector however recovered notably to create more jobs than any other subsector across the last 5 years (814 between 2010 and 2015). The agriculture, forestry and fishing subsector does however remain volatile in terms of employment creation, mainly due to the temporary employment needs of the sector where production volumes determine labour needs. This sector shed jobs in 2011, 2014 and 2016, but contributed to a significant increase in employment in 2015. Diminishing outputs within this subsector also significantly impacted upon the manufacturing sector, evident from the fact that last mentioned constantly shed jobs over the past decade.
Unemployment Rates for the Western Cape (%)
Area 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e
City of Cape Town 18.8 18.4 17.6 18.1 18.5 18.8 19.2 18.8 19.3 20.0 21.0
West Coast 7.2 7.6 7.9 8.5 8.7 9.2 10.1 10.4 11.0 11.3 11.7
Cape Winelands 9.0 9.2 9.2 9.8 9.8 10.1 10.7 10.6 10.9 11.2 11.6
Overberg 10.0 10.3 10.2 10.9 11.0 11.4 12.1 12.0 12.4 12.8 13.5
Eden 16.0 16.1 15.5 15.9 16.1 16.5 17.0 16.6 17.1 17.8 18.7
Central Karoo 20.6 20.9 20.7 21.0 20.8 21.2 22.0 21.6 22.1 22.6 23.2
Western Cape 15.8 15.7 15.3 15.8 16.1 16.4 17.0 16.7 17.2 17.8 18.7
Source: Quantec Research, 2017 (e denotes estimate)
The Central Karoo District has historically had the highest unemployment rate amongst the various districts of the Western Cape. The unemployment rate for this District is in 2016 estimated to be 23.2 per cent, significantly above the Provincial average of 18.7 per cent.
28 2017 Socio-economic Profile: Central Karoo District Municipality
8
INFRASTRUCTURE DEVELOPMENT
As economic theory and empirical work suggest that public investment in infrastructure will boost economic growth by stimulating related private sector investments – the so-called “crowding-in effect” – as well as providing a solid foundation for social development (Swilling, 2006). In South Africa the importance of infrastructure has not only been emphasised at national level but also at regional level. The Western Cape Government’s main infrastructure budgets and investment, both in social and economic infrastructure over the 2017 MTEF, includes spending by provincial government departments and public entities; as well as spending on public private partnerships.
In the Western Cape, the region needs efficient transport systems, water and sanitation, telecommunications and power supplies in order to influence the standard of living of their populations and regional economic growth. There is, thus, a pressing need to determine whether government’s strategy on infrastructure investment will yield the desired economic growth benefits at micro (i.e. project or sector level) or at national or macro level.
29 2017 Socio-economic Profile: Central Karoo District Municipality
PROVINCIAL INFRASTRUCTURE SPEND
In fulfilment of Provincial Strategic Goal 1 (PSG 1: Grow the economy and create jobs), the Western Cape Government has dedicated R28.0 billion towards infrastructure development across the 2017 Medium Term Expenditure Framework (MTEF). This amount will be spent on new assets, replacements assets maintenance and repairs, upgrades and additions, rehabilitation, renovation as well as the refurbishment of existing assets (Western Cape Estimates of Provincial Revenue and Expenditure, 2017). Of this total, an amount of R26.1 billion has been set aside for physical infrastructure developments whilst R231.0 million and R1.7 billion will respectively be channelled towards broadband connectivity and public private partnerships.
The total Provincial Infrastructure budget for 2017/18 amounts to R8.6 billion which will be split amongst the various municipal districts by taking into consideration a wide array of socio- economic variables, most notably anticipated population growth trends as well as estimated economic growth potential, the latter being influenced largely by the 2014 Growth Potential Study of Towns (Donaldson et al, 2014). Below graph depicts the spatial distribution of provincial infrastructure spend for the 2017/18 financial year.
West Coast R731.5 million 9% Overberg Across districts R416.0 million R2.6 billion 5% 30% Eden R1 billion 12%
Cape Winelands City of Cape Town R1.3 billion R2.4 billion Central Karoo 15% 28% R127.7 million 1%
Source: Provincial Treasury, 2017
The City of Cape Town assumes the majority of the Western Cape’s infrastructure allocations with an estimated infrastructure spend of R2.4 billion (28 per cent of Provincial allocation). The Cape Winelands region is another notable receiver of infrastructure funding with approximately R1.3 billion (15 per cent of Provincial allocation) allocated from the Provincial Government.
30 2017 Socio-economic Profile: Central Karoo District Municipality
Provincial Infrastructure Allocations: Central Karoo District
There have been varying levels of infrastructure investments and development across the 131 towns outside the Cape Town Metropolitan areas. Some towns have solid development potential while others are declining. A number of growth factors have contributed to this decline (Donaldson et al 2010). Amongst these factors is a deteriorating infrastructure. Municipal infrastructure consists mainly of bulk treatment plants, pump networks, pump stations treatment works, reservoirs and distribution pipelines, electricity transmission and distribution infrastructure. In some municipalities’ infrastructure remains under threat and requires increasingly more astute management whilst other municipalities have invested significantly in infrastructure provision and experience high growth rates.
The previous graph indicated that of the R8.6 billion total 2017/18 WCG infrastructure budget, an amount of R128.0 million (or 1.0 per cent) will be spent within the Central Karoo District. Below table depicts how this amount will be spent between the various local municipalities within the Districts.
Central Karoo Vote Laingsburg Beaufort West Prince Albert District
CapeNature - - - - Education - - - - Health - 500 3 081 850 Human Settlements - - 24 000 10 739 Public Works 4 072 - - - Roads 47 970 1 500 - 35 000 Social Development - - - - Total 52 042 2 000 27 081 46 589
Source: Provincial Treasury, 2017
Given its mandate as a district municipal authority, provincial infrastructure spend within the Central Karoo District Municipality will in 2017/18 exclusively fund road and public works projects to the value of R52.0 million. Social infrastructure allocations are in turn directed towards the jurisdiction of the various local municipalities. The R52.0 million allocation towards the District Municipality will be applied towards the maintenance of surface (R19.1 million) and gravel (R19.9 million) roads. An amount of R9.0 million will specifically be directed towards flood damage repairs to road structures near Laingsburg-South.
Other than the District specific allocation, provincial infrastructure spend will in 2017/18 largely be concentrated within the Prince Albert area as a result of a major road reseal project underway within Prince Albert Road (R35.0 million) as well as a large housing unit project in Prince Albert itself (R10.5 million). A substantial amount has also been budgeted to fund the construction of service sites in Beaufort West. Allocations towards Laingsburg will in turn be applied towards upgrades and additions at the Laingsburg Clinic, bridge repairs as well as the reseal of the road near Matjiesfontein.
31 2017 Socio-economic Profile: Central Karoo District Municipality
The following table lists the Top 10 2017/18 provincial infrastructure projects (in terms of value) in the Central Karoo District, inclusive of projects within the jurisdiction of local municipalities.
R’000 Sector Project description Municipality 2017/18 2018/19 2019/20
Transport C1037 PRMG Prince Albert Road reseal Prince Albert 35 000 60 000 2 000 Transport C1051.3 Flood damage repairs Laingsburg South Central Karoo 9 000 300 - area District Public Dan de Villiers Refurbishment Central Karoo 4 072 - - Works District Health CI810004: Beaufort West - Hill Side Clinic - Beaufort West 2 140 100 - Replacement Health CI820034: Prince Albert Ambulance Station - Prince Albert 800 1 400 50 Upgrade and Additions including wash bay Health CI810053: Laingsburg Clinic - Upgrade and Laingsburg 500 1 000 1 849 Additions Health CI810177: Nelspoort Hospital - Repairs to Wards Beaufort West 1 3 000 6 500
Health CI810178: Nelspoort Hospital - Electrical Cable Beaufort West 1 5 000 - Replacement Transport C1085 PRMG Beaufort West-Willowmore reseal Beaufort West - 30 000 10 000
Transport C1053.6 Seweweekspoort regravel Laingsburg - 17 000 17 000 Source: Provincial Treasury, 2017
It is clear that provincial infrastructure spend within the Central Karoo will in 2017/18 predominantly be directed towards road transport and health. The transport allocation acknowledges the need to maintain the road network which serves as a catalyst for growth throughout the region. Furthermore, the allocation towards health services strengthen the capacity to address pressing health-related issues that stunt district-wide social development. MUNICIPAL INFRASTRUCTURE SPEND National and Provincial Transfers
The main sources of infrastructure funding at municipal level mostly emanate from either internal (own) revenue and National or Provincial Government grants. These grants are complimentary to municipal own funding and are aimed to address historical social and economic infrastructure backlogs.
The combination of dedicated provincial and municipal infrastructure spend will truly set the Municipality and ultimately the Province on a higher growth path and improved socio-economic environment.
The following table contains the total capital transfers and grants received by the Central Karoo District Municipality from National and Provincial Government across the 2017/18 MTREF. The information depicted below was obtained from the budget schedules within the Municipality’s 2017/18 approved budget. The names of specific grants may therefore differ from their official wording.
32 2017 Socio-economic Profile: Central Karoo District Municipality
2017/18 Medium Term Revenue Audited Outcomes Current Funding Source Year and Expenditure Framework 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 National Government - - - 200 100 100 Financial Management - - - 200 100 100 Provincial Government - - - 1 300 800 - - Fire Department Capacity Building - - - 1 300 800 - - Total Capital Transfers and Grants - - - 1 300 1 000 100 100
Source: Central Karoo District Municipality, 2017/18 Approved Budget Schedules (SA18)
The Municipality will in 2017/18 receive funding from National Treasury to enhance its financial management capacity (R200 000) as well as an amount of R800 000 from the Western Cape Department of Local Government towards strengthening its firefighting services. Above table however illustrates the harsh reality facing many district municipal authorities across the Province and South Africa as a whole, namely the fact that they do not provide basic services and as such cannot generate a sustainable income to fund their other mandated functions relating to transport as well as public and environmental health.
The total capital budget of the Central Karoo District Municipality in 2017/18 only amounted to R1.2 million of which, as per above table, a total of R1.0 million is sourced from external sources. Only a small amount of the total capital budget is therefore generated or sourced internally. The current state of the economy puts pressure on the national fiscus which may subsequently lead to a reduction in transfers and grant support towards local authorities. This scenario will not only impact upon the enhanced roll-out of municipal infrastructure projects, but seriously compromise the long-term sustainability of municipalities in general. The Municipality should therefore strive to increase own-revenue as a percentage of its total capital budget.
The Municipality will apply the allocations received from above specified funding sources to prioritise the following projects for 2017/18:
R’000 Municipal Vote Project description 2017/18 2018/19 2019/20
Corporate Services Firefighting capacity 702 - - Budget and Treasury Furniture and Office Equipment 200 100 100 Technical Services Furniture and Office Equipment 100 100 100 Corporate Services Furniture and Office Equipment 30 50 50 Budget and Treasury Furniture and Office Equipment 30 - - Executive and Council Furniture and Office Equipment 30 - - Executive and Council Computer Equipment 30 - - Corporate Services Computer Equipment 15 - - Corporate Services Furniture and Office Equipment 6 - - Corporate Services Water Quality Monitoring Equipment 5 - - Source: Central Karoo District Municipality, 2017/18 Approved Budget Schedules (SA36)
The capital budget is almost in totality applied towards disaster management and will expand the Municipality’s firefighting capacity (R702 000). The rest of the capital budget will mostly be used to purchase office equipment and furniture for the various departments. A small allocation will be applied to purchase water quality monitoring equipment.
33 2017 Socio-economic Profile: Central Karoo District Municipality
1. Demographics
Population: Department of Social Development, 2017
Age cohorts: Department of Social Development, 2017
2. Education
Learner enrolment: Western Cape Education Department, 2017; Annual Survey of Public and Independent Schools (ASS), 2016
Learner-teacher ratio: Western Cape Education Department, 2017; Annual Survey of Public and Independent Schools (ASS), 2016
Grade 12 drop-out rates: Western Cape Education Department, 2017; Annual Survey of Public and Independent Schools (ASS), 2016
Educational facilities: Western Cape Education Department, 2017; Annual Survey of Public and Independent Schools (ASS), 2016
Educational outcomes: Western Cape Education Department, 2017; Annual Survey of Public and Independent Schools (ASS), 2016
3. Health
Healthcare facilities: Department of Health, 2017
Emergency medical services: Department of Health, 2017
HIV/AIDS: Department of Health, 2017
Tuberculosis: Department of Health, 2017
Child health: Department of Health, 2017
Maternal health: Department of Health, 2017
4. Poverty
GDP per capita: Statistics South Africa, 2017; own calculations
Income Inequality: IHS Global Insight, 2017
Human Development: IHS Global Insight, 2017
Indigent households: Department of Local Government, 2017
34 2017 Socio-economic Profile: Central Karoo District Municipality
5. Basic Services
Households: Statistics South Africa, Census 2011 and Community Survey 2016
Access to housing: Statistics South Africa, Census 2011 and Community Survey 2016
Access to water: Statistics South Africa, Census 2011 and Community Survey 2016
Access to electricity: Statistics South Africa, Census 2011 and Community Survey 2016
Access to sanitation: Statistics South Africa, Census 2011 and Community Survey 2016
Access to refuse removal: Statistics South Africa, Census 2011 and Community Survey 2016
6. Safety and Security
Murder: South African Police Service (SAPS), 2017
Sexual offences: South African Police Service (SAPS), 2017
Drug-related crimes: South African Police Service (SAPS), 2017
Driving under the influence: South African Police Service (SAPS), 2017
Residential burglaries: South African Police Service (SAPS), 2017
Fatal crashes: Department of Transport and Public Works, 2017
Road user fatalities: Department of Transport and Public Works, 2017
7. Economy
Sector Performance: Quantec Research, 2017
Labour: Quantec Research, 2017
8. Infrastructure Development
Provincial Infrastructure Spend: Provincial Treasury, 2017
Municipal Infrastructure Spend: Municipal Budget Schedules (SA18 & SA36)
35 2017 Socio-economic Profile: Central Karoo District Municipality