Nodal Economic Profiling Project Maruleng Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Context

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

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

Central Karoo OR Tambo Chris Hani

Mitchell’s Plain Mdantsane Khayelitsha Motherwell

UUP-WRD-Maruleng Profile-311006-IS 2 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Maruleng poverty node

Activities

z Research process Documents

People z Overview

z Economy

– Overview

– Selected sector: Agriculture

– Selected sector: Tourism

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Maruleng Profile-311006-IS 3 Nodal Economic Profiling Project Business Trust and dplg, 2007 Research process Maruleng Summary of what we have done

AAccttiivviittiieess DDooccuummeennttss PPeeooppllee

Desk research Maruleng Local Municipality Representatives from the Integrated Development District and Local Plan 2005/2006 Municipalities

Visit to the node Mopani District Municipality Experts in the agriculture Integrated Development and tourism sectors, Plan 2006-2011 including NGOs Personal interviews

Mopani District Municipality Development consultants

LED Strategy 2006 Local community members

Telephone interviews

Monitor Bohlabela Opportunity Investigation Provincial funding and LED agencies

Various other Local business people

UUP-WRD-Maruleng Profile-311006-IS 4 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Overview

IInnttrroodduuccttiioonn KKeeyy ddaattaa ppooiinnttss CCuurrrreenntt aaccttiioonn

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

SSnnaappsshhoott GGeeooggrraapphhyy GGoovveerrnnaannccee

AArreeaa ssuummmmaarryy SSppaattiiaall ddeevveellooppmmeenntt IIDDPP aasssseessssmmeenntt

KKeeyy cchhaalllleennggeess DDeemmooggrraapphhyy DDeevveellooppmmeenntt pprroojjeeccttss

LLooccaall ppeeooppllee ppoorrttrraaiitt IInnccoommee aanndd eemmppllooyymmeenntt

EEdduuccaattiioonn

HHeeaalltthh

DDeevveellooppmmeenntt ssccoorreeccaarrdd

UUP-WRD-Maruleng Profile-311006-IS 5 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Maruleng poverty node

z Research process

Introduction z Overview Key data points Current action z Economy

± Overview

± Selected sector: Agriculture

± Selected sector: Tourism

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Maruleng Profile-311006-IS 6 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Maruleng Snapshot

Key information MMaarruulleenngg Population: 2001 94,382

Area 3,247 km2

Population density: 2001 29 people / km2

Estimated GDP: 2004 R0.96 billion

Province Limpopo

Main town / city

HHiissttoorriiccaall oovveerrvviieeww

zz MMaarruulleenngg MMuunniicciippaalliittyy wwaass ffiirrsstt eessttaabblliisshheedd iinn 11999977 uunnddeerr tthhee nnaammeeHHooeeddsspprruuiitt // MMaakkuuttsswwii TTLLCC.. TThhee mmuunniicciippaalliittyy wwaass nnaammeedd aafftteerr tthhee MMaarruullaa ttrreeee ±±ªªMMaarruulleennggººmmeeaannss ªªtthhee ppllaaccee ooff MMaarruullaaºº.. zz HHiissttoorriiccaallllyy iitt ccoommpprriisseedd tthhee EEaasstteerrnn TTrraannssvvaaaall aass wweellll aass tthhee aappaarrtthheeiidd hhoommeellaanndd ooff LLeebboowwaa wwhhiicchh wwaass ddeessiiggnnaatteedd ffoorr PPeeddii--aanndd NNoorrtthheerrnn SSootthhoo--ssppeeaakkiinngg ppeeooppllee.. zz UUnnttiill MMaarrcchh 22000066 iitt wwaass aa ppaarrtt ooff tthhee BBoohhllaabbeellaaccrroossss--bboorrddeerr mmuunniicciippaalliittyy tthhaatt sspprreeaadd aaccrroossss LLiimmppooppooaannddMMppuummaallaannggaapprroovviinncceess.. IItt iiss nnooww wwhhoollllyy wwiitthhiinn tthhee MMooppaannii DDiissttrriicctt MMuunniicciippaalliittyy ooff LLiimmppooppoo..

Source: Stats SA Census 2001; Maruleng Municipality IDP Review 2005/2006 UUP-WRD-Maruleng Profile-311006-IS 7 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Maruleng Area summary

Farming z The Maruleng Local Municipality (LM) has an estimated current Urban 9,591 population of about 107,247 (2006) residing in a total of 33 rural 2,494 9% settlements (98%) and three urban settlements (2%) 2% z Ninety per cent of the population resides in the west of the node, formerly known as Naphuno II district (part of the former Lebowa) Rural 95,162 z The economic and political centre of the municipality is Hoedspruit 89% which is the main urban concentration in respect of infrastructure, business and institutional functions

z Total estimated population The municipality borders the Timbavati Private Reserve and Kruger National 2006: 107,247 Park in the east, and the Blyde River Canyon in the west. In the north the area borders the Greater and Ba- municipalities, and in the south Bushbuckridge z The node continues to face large infrastructure and service backlogs, in particular with respect to water and roads, especially in the densely populated north-western areas z Maruleng has a solid economic base centred on agriculture and tourism, with significant potential for growth z Twenty-eight per cent of its adult population is employed, with a further 53% classified as not economically active. The latter segment rely heavily on government transfers z The majority of the land is either traditionally administered or in private ownership. While estimates vary, indications are that about 18.5% of private land is subject to land claims z A lack of urban / settlement planning and the resulting residential sprawl is complicating and driving up the cost of service delivery

Source: Mopani District Municipality IDP 2006-2011, Monitor interviews UUP-WRD-Maruleng Profile-311006-IS 8 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Maruleng Some observations about Maruleng

“The tourism sector is not very attractive – it requires huge investment and only a few locals benefit” ± Municipal manager “There are a number of residential developments in the area but they do not contribute to the municipality as the municipality does not provide their bulk services” ± Municipal manager

“There are funds available to municipalities and businesses but people in Maruleng do not access them because they lack commitment and are not willing to help themselves” ± Limpopo LED official

“There is no culture of entrepreneurship ... people are always just demanding things … I think that sometimes you need to behave like a father … they just need a good hiding” (in response to key development challenges in the area) ± Bank manager and long-term Lebowa resident

“We need more equitable access to tourism opportunities and entrepreneurs as well as tourism awareness in communities” ± Local tourism facility owner and tourism / ecological activist

“They are going about land claims in the wrong way … just issuing blanket claims … there is no systematic study … the result is lots of litigation” ± Local farmer

UUP-WRD-Maruleng Profile-311006-IS 9 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Maruleng Area summary

Maruleng’s spatial and economic development pattern is deeply marked by the legacy of apartheid with the majority of the black population confined to dense rural settlements with limited economic activity and access to urban infrastructure

WWeesstteerrnn qquuaaddrraanntt NNoorrtthheerrnn qquuaaddrraanntt

zz CCoommpprriisseess mmaaiinnllyy ddeennssee zz DDoommiinnaatteedd bbyy ggaammee rreesseerrvveess rreessiiddeennttiiaall aarreeaass ooff tthhee zz LLiimmiitteedd mmiinniinngg iinn MMiiccaa ffoorrmmeerrLLeebboowwaa hhoommeellaanndd zz HHooeeddsspprruuiitt aatt tthhee ssoouutthheerrnn zz NNiinneettyy ppeerr cceenntt ooff MMaarruulleenngg’’ss eeddggee iiss tthhee aaddmmiinniissttrraattiivvee ppooppuullaattiioonn rreessiiddeess hheerree aanndd ccoommmmeerrcciiaall cceennttrree ooff tthhee zz LLiittttllee eeccoonnoommiicc ddeevveellooppmmeenntt rreeggiioonn bbuutt iiss aa ttyyppiiccaall zz MMaajjoorr iinnffrraassttrruuccttuurree aanndd ““aappaarrtthheeiidd ttoowwnn”” sseerrvviicceess bbaacckkllooggss

SSoouutthheerrnn qquuaaddrraanntt EEaasstteerrnn qquuaaddrraanntt

zz MMaaiinnllyy ttoouurriissmm aaccttiivviittiieess,, zz MMoossttllyy ggaammee rreesseerrvveess aanndd cceenntteerreedd oonn tthhee BBllyyddee RRiivveerr pprriivvaattee llooddggeess CCaannyyoonn zz FFeeww,, mmaaiinnllyy wwhhiittee rreessiiddeennttss zz FFeeww,, mmaaiinnllyy wwhhiittee rreessiiddeennttss zz BBoorrddeerrss ddeennssee sseettttlleemmeennttss ooff BBuusshhbbuucckkrriiddggee

UUP-WRD-Maruleng Profile-311006-IS 10 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Maruleng Key challenges

EEccoonnoommiicc ddeevveellooppmmeenntt cchhaalllleennggeess

UUnnddeerrddeevveellooppeedd rruurraall SSttrroonngg ttoouurriissmm aanndd aaggrriiccuullttuurree rreessiiddeennttiiaall aarreeaass zz SSiiggnniiffiiccaanntt aaggrriiccuullttuurraall zz DDeennssee rreessiiddeennttiiaall sseettttlleemmeennttss pprroodduuccttiioonn cceennttrree iinn tthhee wweesstt ooff tthhee nnooddee zz Significant infrastructure zz SSiiggnniiffiiccaanntt ttoouurriissmm aasssseettss Significant infrastructure CChhaalllleennggee backlogs iinncclluuddiinngg mmaajjoorr pprriivvaattee backlogs z llooddggeess zz VVaasstt ggaapp bbeettwweeeenn tthhee z LLiimmiitteedd eeccoonnoommiicc ddeevveellooppeedd aaggrriiccuullttuurraall aanndd ddeevveellooppmmeenntt ttoouurriissmm aarreeaass iinn tthhee eeaasstt,, cceennttrree aanndd ssoouutthh--wweesstt ooff tthhee nnooddee aanndd tthhee uunnddeerrddeevveellooppeedd // rruurraall nnoorrtthheerrnn aanndd wweesstteerrnn ppaarrttss ooff tthhee nnooddee zz LLiimmiitteedd ffoorrmmaall eemmppllooyymmeenntt ooppppoorrttuunniittiieess zz LLiinnkkaaggeess ttoo ootthheerr nnooddeess,, eessppeecciiaallllyy BBuusshhbbuucckkrriiddggee

UUP-WRD-Maruleng Profile-311006-IS 11 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Maruleng Key challenges

Complexities caused by the historical joint governance of Bohlabela by Limpopo and Mpumalanga. Even with new demarcations, roles and responsibilities are not yet clear

GGoovveerrnnmmeenntt Lack of adequate skills and capacity in government departments Large infrastructure and services backlogs

Large portion of land is under land claim and not under formal administration Poor telecommunications infrastructure BBuussiinneessss iinnppuuttss Poor distribution of water to the local communities ((ffaaccttoorrss)) High HIV prevalence in poorer communities High levels of unemployment Lack of skills in communities, resulting in poor access to finance

Little lower-middle income accommodation, especially in towns Very limited agri-processing activities

Private sector Private sector Land claims have hampered investment Significant un-managed residential estate and business development

Under-developed logistics system Supporting Supporting industries Limited and expensive public transport system

industries Minimal health care infrastructure (low HIV and AIDS awareness)

While Maruleng has significant endowments, it faces key challenges in respect of infrastructure and enabling factors to ensure sustained investment and economic growth

Source: Maruleng IDP Review 2006/2007, Monitor interviews

UUP-WRD-Maruleng Profile-311006-IS 12 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Maruleng Local people portrait – Ania Mashilo

Ania Mashilo is a food vendor who currently rents premises in hawker stalls constructed and managed by the Maruleng Municipality at the Hoedspruit Bus and Taxi Terminus as part of their LED programme.

The hawkers stalls were constructed in 1999/2000.

IMAGE Ania is the main bread-winner in her family, and she currently supports seven children.

She lives in The Oaks which is situated some 36 km to the east of Hoedspruit. She travel into Hoedspruit daily by bus.

Her working day is typically from 7am to 5pm Monday to Saturday.

Ania serves food (such as pap and chicken) to commuters who utilise the local bus and taxi services. She estimates that she currently earns R100 per day (about R2,200 per month) from her businesses (this appeared to be her income after expenses for food items, oil, etc.). She currently pays R50 a month to the municipality to rent the stall and spends R200 a month for the bus. Her key concerns are the lack of electricity in her stall, inadequate ablutions and the absence of accommodation in Hoedspruit. She also feels that the rental is too high. Free water is, however, provided.

Source: Qualitative interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 13 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Maruleng Local people portrait – Nyeleti (Star) Dulcia Ngwenya

Born and bred in (in Bushbuckridge), Nyeleti enrolled at Natal Technikon in 1993 to study fashion design and technology ± rather an ambitious move for a youngster whose horizons had not stretched far beyond her life in Acornhoek up until then.

Three years later she had qualified, at what is said to be the top technikon in in the field of fashion.

During 1996 and 1997, her working career began as a crafts developer with the Acornhoek Local Business Service Centre.

She then began her own business the following year, designing and making clothes from home in Acornhoek in 1998. In July of 2006 she moved to an office in Maroela Park, Hoedspruit, where she is hoping to achieve more exposure to a broader client base.

Specialising in a wide variety of garment design, from traditional dresses to wedding dresses and uniforms, evening dresses and matric dance outfits, Nyeleti is a highly talented and accomplished fashion designer, and she loves creating garments that please her clients. Her dream for the future is to see her business grow to the extent that she will be able to have her own clothing label one day, and in the process create many jobs.

Source: Story and photograph courtesy of Heidi Smith (Kruger2Canyon Newspaper) UUP-WRD-Maruleng Profile-311006-IS 14 Nodal Economic Profiling Project Business Trust and dplg, 2007 Introduction Maruleng Local people portrait – Florence

Florence is the head chef of Sleepers Restaurant. Born and raised in Acornhoek (Bushbuckridge), she lives with her mother and 13-year-old daughter, Eureth, in Greenvalley Acornhoek. Before working at Sleepers, Florence worked at Matumi Lodge as a cleaner, also preparing breakfasts for the game drive clients. Her brother, who worked at La Bamba shopping centre in Hoedspruit at that stage, told her about a possible position available at Sleepers. She met with management and they thought she was kind and friendly and offered her a job as cleaner and scullery lady.

She started working at Sleepers in 1998. It was under the guiding hand of Anne de Bruyn that Florence blossomed. Anne realised the potential in Florence, and acknowledged her determination and commitment to furthering herself. Having studied home economics as a matric subject, at Magwagwaza High School in Acornhoek, she says she always loved cooking. Slowly she learned her way around the kitchen and by 2000 the scullery lady had become nothing less than Sleepers' head chef. ªCooking is what I like most,º says Florence. We asked Florence what her favourite dish on the Sleepers menu is and without hesitation she identified the Cape Dutch Chicken Pie. She says the pie is one of the specialties and probably the best pie you will find in Hoedspruit. She even has international guests assuring her that her chicken pie is the best they have every eaten, and the Kruger2Canyon office can vouch for this. Florence loves to read and experiment with new recipes. In her spare time she says her family are her food critics. She hopes to start a correspondence course soon and study to become a qualified chef.

Source: Story and photograph courtesy of Heidi Smith (Kruger2Canyon newspaper) UUP-WRD-Maruleng Profile-311006-IS 15 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Overview

IInnttrroodduuccttiioonn KKeeyy ddaattaa ppooiinnttss CCuurrrreenntt aaccttiioonn

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

SSnnaappsshhoott GGeeooggrraapphhyy GGoovveerrnnaannccee

AArreeaa ssuummmmaarryy SSppaattiiaall ddeevveellooppmmeenntt IIDDPP aasssseessssmmeenntt

KKeeyy cchhaalllleennggeess DDeemmooggrraapphhyy DDeevveellooppmmeenntt pprroojjeeccttss

LLooccaall ppeeooppllee ppoorrttrraaiitt IInnccoommee aanndd eemmppllooyymmeenntt

EEdduuccaattiioonn

HHeeaalltthh

DDeevveellooppmmeenntt ssccoorreeccaarrdd

UUP-WRD-Maruleng Profile-311006-IS 16 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng Geography Maruleng is situated in the south-eastern quadrant of the Limpopo Province in the Mopani district MMaapp GGeeooggrraapphhiiccaall ffeeaattuurreess LLooccaall mmuunniicciippaalliittiieess,, ppooppuullaattiioonn aanndd mmaajjoorr ttoowwnnss

HHooeeddsspprruuiittsseerrvveess aass tthhee aaddmmiinniissttrraattiivvee aanndd eeccoonnoommiicc cceennttrree,, ddeessppiittee tthhee ffaacctt tthhaatt oonnllyy 22%% ooff mmuunniicciippaall rreessiiddeennttss lliivvee tthheerree

TThhee mmuunniicciippaalliittyy iiss sspplliitt iinnttoo 1122 wwaarrddss

TTrraannssppoorrttaattiioonn

TThheerree aarree ttwwoo rraaiill lliinneess ccoommiinngg iinn ffrroomm tthhee nnoorrtthh aanndd mmeeeettiinngg aatt HHooeeddsspprruuiitt

TThhee mmaaiinn aacccceessss rrooaaddss aarree tthhee RR4400 aanndd tthhee RR3366

TThhee mmaaiinn aacccceessss ppooiinnttss ttoo tthhee mmuunniicciippaall aarreeaa aarree ±± KKllaasseerriieeaanndd tthhee SSttrriijjddoommTTuunnnneell iinn tthhee ssoouutthh ±± OOffccoollaaccooiinn tthhee wweesstt aanndd MMiiccaa iinn tthhee nnoorrtthh

AAiirr aacccceessss iiss vviiaa tthhee EEaassttggaatteeAAiirrppoorrtt

TTeerrrraaiinn aanndd nnaattuurraall rreessoouurrcceess

LLoowwvveellddvveeggeettaattiioonn

MMoossttllyy ffllaatt//eevveenn ssllooppee tteerrrraaiinn wwiitthh iissoollaatteedd kkooppppiieess aanndd rriiddggeess

EEccoollooggiiccaall rreessoouurrcceess ±±wwaatteerr,, ssooiill,, fflloorraa aanndd ffaauunnaa

Source: Municipal Demarcation Board; Stats SA 2001; Maruleng Municipality IDP Review 2005/2006 UUP-WRD-Maruleng Profile-311006-IS 17 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng Geology and climate Maruleng is predominantly semi-arid with patches of humid zones. Rainfall increases towards the south- and north-western parts of the node along the escarpment GGeeoollooggyy // vveeggeettaattiioonn CClliimmaattee

Bokkeveld Arid zone Ventersdorp Semi-arid zone Lebowa Dry sub-humid zone Humid zone

0-200 mm 201-400 mm 401-600 mm 601-800 mm Inland Tropical Forest Types 801-1,000 mm Tropical Bush and Savanna Type > 1,000 mm Source: Agricultural Geo-Referenced Information System UUP-WRD-Maruleng Profile-311006-IS 18 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng Spatial development The basic services backlog is more pronounced with regards to waste removal and telecommunication KKeeyy iinnddiiccaattoorrss:: 22000011 OObbsseerrvvaattiioonnss zz PPooppuullaattiioonn ddeennssiittyy:: 2299 ppeerrssoonnss//kkmm22 zz TThhee mmuunniicciippaalliittyy iiss mmaaddee uupp ooff 3366 ccoommmmuunniittiieess:: 3333 rruurraall vviillllaaggeess,, oonnee uurrbbaann nnooddee aanndd ttwwoo ssmmaalllleerr zz Population: Rural 98%, urban 2% Population: Rural 98%, urban 2% uurrbbaann aarreeaass zz Dwellings: Formal 97%, informal 3% Dwellings: Formal 97%, informal 3% zz PPooppuullaattiioonn ddeennssiittiieess aarree ssppaarrssee iinn tthhee eeaasstt aanndd rreellaattiivveellyy ddeennssee ttoowwaarrddss tthhee wweesstt

Households without access to basic services: 2001 Type of housing: 2001 100% 93% Separate house or brick structure 75% 78% s 80% Traditional housing with d l 16%

o traditional material h e

s Informal dwelling /

u 60% 3%

o shack h

f Flat in blocks of flats

o 41% or town / cluster / MMaarruulleennggccuurrrreennttllyy hhaass ttwwoo e 40% 35% 3% g iinnffoorrmmaall sseettttlleemmeennttss ooff ssoommee 559900

a semi-detached house t

n House / flat / room in ddwweellliinnggss,, hhoouussiinngg 33,,554400 e 2% c households r 20% back yard households e P Other 2% 0% Electricity Piped Water Waste Telephone 0% 10% 20% 30% 40% 50% 60% 70% 80% removal

Note: Definitions of basic access: Electricity for lighting; piped water within 200 m; waste removal by municipality or communal dump; phone or cell phone Source: Stats SA Census 2001; Maruleng Municipality IDP Review 2005/2006; Maruleng Municipality IDP Review 2006/2007, Mopani IDP 2006-2011

UUP-WRD-Maruleng Profile-311006-IS 19 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng Settlements

Maruleng is predominantly a rural municipality centred on farming and traditional subsistence agriculture Traditional settlements are located in the west, in the former Naphuno II District of Lebowa

Banereng Ba Ga- R526 R40 Sekororo Tribal Authority Mica

Trichardtsdal R526 Banareng Ga-Letswale Sekororo Tribal Authority Metz Diphuti R527 Drakensig (Airforce Residence) GaMametsa Hoedspruit

Bakone Ba Ga-Mametja Kampersrus Tribal Authority R531

Klaserie

Main urban settlement

Secondary urban settlements z Hoedspruit is the only existing and urban node in terms of the Spatial Rural Villages Development Framework Traditional Settlements z The Ga-Sekororo / Lorraine area has been identified as a development node targeted for investment (especially a shopping centre), social and public amenities and encouragement of residential uses

Source: Maruleng IDP Review 2005/2006; Mopani LED Strategy 2006 UUP-WRD-Maruleng Profile-311006-IS 20 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng Settlements (continued)

Maruleng is characterised by two highly divergent settlement forms – the one well established, the other still facing services backlogs

UUrrbbaann rreessiiddeennttiiaall RRuurraall rreessiiddeennttiiaall

Visuals ¡ ¡ Well developed suburbs, with formal housing Former homeland areas characterised by high and good services (access to water density, highly degraded land particularly noticeable) ¡ Little access to reliable water

Key features ¡ Increasingly characterised by townhouse and ¡ Most housing is formal (brick) with few security estate developments informal settlements ¡ Reasonable urban and social amenities ¡ Urban and social amenities generally poor ¡ Centred mainly around the urban nodes, in ¡ Western and north-western tribal authority Location particular Hoedspruit and Kampersrus areas (former Lebowa) ¡ ¡ Less than 5% of population; predominantly Contains 95% of the population

Demographics ¡ white residents; generally affluent Predominantly black and poor households ¡ ¡ Uncontrolled urban expansion with resulting Access to water is the most critical issue Key issues stress on existing bulk services ¡ Continued sprawl of settlements is a key ¡ Exclusion of the poor barrier to more effective servicing and Source: Maruleng IDP Review 2005/2006; interviews infrastructure delivery UUP-WRD-Maruleng Profile-311006-IS 21 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng Water resources

While significant water resources exist in the Blyde River Canyon and the Oliphants River, distribution is expensive and uneven across the node. Many farms and households rely on underground and rain water DDoommeessttiicc wwaatteerr cchhaalllleennggeess Commercial Irrigation z Domestic water problems are rated as the number Trichardtsdal one priority by Maruleng residents, particularly in the densely populated urban settlements (e.g. Sekororo and Metz) z Sekororo Communities depend almost entirely on boreholes for water supply; quality is often poor Metz Hoedspruit z Difficulties exist with inadequate and poor infrastructure (boreholes)

FFaarrmmiinngg wwaatteerr cchhaalllleennggeess z Subsistence farmers rely on seasonal rainfall for crop production z A former homeland irrigation scheme exists in Areas under Irrigation The Oaks that supports emerging farmers z BBrriieeff hhiissttoorryy ooff iirrrriiggaattiioonn iinn MMaarruulleenngg Commercial irrigation is used in the northern areas around Trichardtsdal and around TThhrreeee iirrrriiggaattiioonn pphhaasseess ccaann bbee ddiissttiinngguuiisshheedd:: Hoedspruit zz PPhhaassee 11:: FFaarrmmeerrss uusseedd tthhee rriivveerr aanndd tthhee ccaannaall ssyysstteemm mmaaiinnllyy ffoorr fflloooodd z In 2003 a new pipeline financed by RMB (R150 iirrrriiggaattiioonn ttoo ggrrooww vveeggeettaabblleess million) became operational z z PPhhaassee 22:: SSttaarrtteedd wwiitthh tthhee bbuuiillddiinngg ooff tthhee ddaamm iinn 11997744.. FFaarrmmeerrss ssttaarrtteedd ttoo uussee ± Supplies water from Blyde River dam to Hoedspruit iinnddiivviidduuaall ddaammss aanndd ppuummppss oonn tthheeiirr ffaarrmmss.. IInn tthhee 11998800ss mmoorree ssoopphhiissttiiccaatteedd area irrigation techniques came in (e.g. centre pivot, sprinklers, drip irrigation). Citrus irrigation techniques came in (e.g. centre pivot, sprinklers, drip irrigation). Citrus ± Initial usage cost estimates have increased from aanndd mmaannggoo ffaarrmmss bbeeccaammee pprrooffiittaabbllee R1,500 per ha to R4,000 per ha resulting in non- payment by farmers and litigation by RMB zz PPhhaassee 33:: SSttaarrtteedd wwiitthh tthhee rreecceenntt iirrrriiggaattiioonn ppiippeelliinnee ((22000033)) ± 800 ha of irrigated land have been reserved for small Source: AGIS, IWMI Working Paper: Water Affairs in the Lower Blyde River emerging farmers UUP-WRD-Maruleng Profile-311006-IS 22 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng Transport infrastructure

Weak and degrading transportation infrastructure is a major concern for Maruleng and impacts not only people’s daily lives but hampers economic activity

z According to the Mopani IDP, Maruleng has total of 188.7 km of road, of which only 48.84 km (26%) is tarred ± Local farmers indicate the poor condition of roads as a key inhibitor to increased exports ¢ Truck transport costs (which account for some 98% of produce shipped) are negatively impacted ± The gravel road between The Oaks and Trichardtsdal (through Sekororo) is current being tarred z The majority of people utilise taxis and the subsidised bus service (Great North Transport) z Within Maruleng there are three major transport Tzaneen Railway Line Phalaborwa facilities: Railway Line R526 R40 R36 ± Hoedspruit taxi rank (formal) Ofcolaco Mica ± The Ox taxi rank Trichardtsdal ± Metz taxi rank R526 Sekororo z The rail infrastructure is considered to be poor and Metz Diphuti R527 Hoedspruit Eastgate unreliable 4 Airport z A regional airport exists at Eastgate Airport outside GaMametsa

Hoedspruit which serves the more exclusive tourist Kampersrus R531 market Klaserie Source: Mopani IDP, Interviews

UUP-WRD-Maruleng Profile-311006-IS 23 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng Crime statistics

Crime levels as reported at Hoedspruit Police Station have shown a decline since 2002. The most common crimes in the area are assault and theft

1,600

1,400

1,200

s Theft t n

e Assault

d 1,000 i

c Burglary (residential) n i Other d e

t 800

r Malicious damage to property o

p Burglary (business) e r

f Robbery

o 600

. Rape o

N Murder 400

200

0 2001/2002 2002/2003 2003/2004 2004/2005

Source: Crime Information Analysis Centre, South African Police Services

UUP-WRD-Maruleng Profile-311006-IS 24 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng Demography Maruleng’s population is youthful, with Sepedi being the main language

Gender distribution: 2001 Age distribution: 2001 100% 50% Total Population: 94,382 Total Population: 94,382 80%

39.2% s s t 46% 47% t 40% 36.1% n

n Male e e d d i

i 60% s s 30% e e R R

20.0% f f 40% o o 20% Female % % 54% 53% 10% 4.7% 20%

0% 0% 0 to 14 15 to 34 35 to 64 Over 65 Total Population Head of Household

Household size: 2001 Language distribution: 2001 80% 100% 87.0% TToottaall NNoo.. ooff HHoouusseehhoollddss:: 2233,,005500 s 80% s d t l 60% n o 50% e h d e i 60% s 38% s u 40% e o R

H f 40% f o

o

%

% 20% 12% 20% 7.7% 2.7% 0.7% 1.9% 0% 0% 1 to 3 4 to 7 8 + Sepedi Xsitonga English Other

Source: Stats SA Census 2001; Maruleng Municipality IDP Review 2005/2006; Maruleng Municipality IDP Review 2006/2007 UUP-WRD-Maruleng Profile-311006-IS 25 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng Income and employment The majority of adults are not economically active – 88% of the households live below the poverty line

Annual household income: 2001 Employment figures: 2001 90% 80% 75% 60% 53%

s HHoouusseehhoolldd SSuubbssiisstteennccee d 70% l 50% s o

Level: R19,200 per annum t

Level: R19,200 per annum l

h 60% u

e 40% d s 50% u A 28%

o 40% f 30% o H

19% f

30% % o 20% 13%

% 20% 6% 10% 10% 3% 2% 1% 0% 0% Below R9601 - R19201 - R38401 - R76801 - Above Employed Unemployed Not Economically R9600 19200 38400 76800 153600 R153601 Active

Employment by industry (Top Five): 2001 Work status: 2001 s n s

o 50% n 100% s o

r 90.2% 41% s e r e P

40%

P 80% d

e d y e o y

l 30% o p

l 60% p m m E 17% 20% f E

40% o f

o

% 10% 8% 8% 8% % 20% 5.2% 3.6% 0% 0.7% 0.3% Agriculture Community Retail Household Transport, 0% Communication Paid Employer Self-employed Paid family Unpaid family & Storage employee worker worker

Source: Stats SA Census 2001 UUP-WRD-Maruleng Profile-311006-IS 26 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng Education More than one-third of the adult population lacks any kind of schooling

School attendance (aged 5-24 yrs) : 2001 Education levels (aged 20+ yrs): 2001 80% 50% 72% 74% 67% Maruleng Maruleng 40% 60% All Nodes 37% All Nodes 32% Rest of SA 28% Rest of SA 30% 29% 25% 40% 22% 30% 27% 25% 20% 17% 19% 15% 15% 13% 11% 20% 9% 10% 6% 6% 6% 5% 3% 5% 1% 1% 0% 0% None Pre-school & School Tertiary None Some Complete Some Std 10 / Higher Primary Primary Secondary Grade 12

Number of schools : 2006 OOtthheerr oobbsseerrvvaattiioonnss 45 zz Most schools lack basic services ± water, 35 No.of schools Most schools lack basic services ± water, electricity, telecommunications and sanitation 30 electricity, telecommunications and sanitation 21 zz MMaarruulleenngg lleeaarrnneerr:: ccllaassssrroooomm rraattiiooss ffoorr pprriimmaarryy schools (1:43) and secondary schools (1:39) 15 schools (1:43) and secondary schools (1:39) aarree hhiigghheerr tthhaann tthhee DDeeppaarrttmmeenntt ooff EEdduuccaattiioonn''ss nnoorrmmss ooff 11::4400 aanndd 11::3355 rreessppeeccttiivveellyy 0 zz Primary Secondary LLeeaarrnneerr--ttoo--eedduuccaattoorr rraattiiooss aarree ssuubbssttaannttiiaallllyy hhiigghheerr tthhaann nnaattiioonnaall nnoorrmmss Note: Tertiary education includes university, college, technikon, and adult education Source: Stats SA Census 2001; Maruleng Municipality IDP Review 2005/2006; Municipal Demarcation Board Municipal Profiles 2006, Maruleng Municipality UUP-WRD-Maruleng Profile-311006-IS 27 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng Health Overall health care expenditure and access to health care remains poor. HIV prevalence rates have increased sharply from 1996 to 2000

Per capita health expenditure: 20011 Antenatal HIV infection rate: 20051 250 50% 199

200 V I 40% H

n h t i o 135 s 150 30% 27% 26% r W

24% e d P

e / t

100 s 20% R e T

55

50 % 10%

0 0% Maruleng Node Average Rest of SA Maruleng Node Average Rest of SA

Daily number of patients per nurse: 20051 HHeeaalltthhcceennttrreess 40 39.4 z y z There are 12 clinics and one hospital in the

a There are 12 clinics and one hospital in the D

/ municipal region 30 26.8 26.3 municipal region e s r z u z AApppprrooxxiimmaatteellyy 7755%% ooff tthhee ppooppuullaattiioonn iiss N

/ 20 located within 20 km of a health facility and

s located within 20 km of a health facility and t n

e 71% of the population within 5 km of a i 71% of the population within 5 km of a t

a 10 P cclliinniicc zz Maruleng has one clinic for every 7,800 0 Maruleng has one clinic for every 7,800 Maruleng Node Average Rest of SA ppeerrssoonnss

Note: 1 No segmented statistics for Maruleng were available, Bohlabela statistics were used as they provide a fair indication 2HIV prevalence among antenatal patients (pregnant women) Source: Health Systems Trust Reports: The District Health Barometer (2005) and Health and Related Indicators (2005); Maruleng Municipality IDP Review 2005/2006; Municipal Demarcation Board Municipal Profiles 2006 UUP-WRD-Maruleng Profile-311006-IS 28 Nodal Economic Profiling Project Business Trust and dplg, 2007 Key data points Maruleng development scorecard

Maruleng development scorecard Difference vs Rural node All node National Rank within Maruleng national average average average rural nodes average 1=Best, 14=Worst Poverty incidence (% of households 87.2% 84.7% 81.0% 65.3% 21.9% 12 below HSL)1

Employment rate 27.9% 15.4% 19.3% 33.7% 5.8% 5

Households without basic 35.0% 64.9% 55.1% 27.9% 7.1% 9 access to water2 Households without access to 41.2% 56.7% 50.3% 30.3% 10.9% 9 electricity3

% of adults with 59.6% 60.3% 54.1% 40.3% 19.3% 7 low / no education4

Better than national avg. Worse than national avg.

Note: 1 HSL = Household Subsistence Level and is equal to R19,200 per annum (R1,600 per month); 2Defined as not having piped water within a distance of 200 m of dwelling (govt. policy on minimum basic human need); 3 Based on households that do not use electricity as a source for lighting; 4All adults aged 20+ with no schooling at secondary level or above (Stats SA indicator of educational deprivation) Source: Stats SA Census 2001 UUP-WRD-Maruleng Profile-311006-IS 29 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Overview

IInnttrroodduuccttiioonn KKeeyy ddaattaa ppooiinnttss CCuurrrreenntt aaccttiioonn

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

SSnnaappsshhoott GGeeooggrraapphhyy GGoovveerrnnaannccee

AArreeaa ssuummmmaarryy SSppaattiiaall ddeevveellooppmmeenntt IIDDPP aasssseessssmmeenntt

KKeeyy cchhaalllleennggeess DDeemmooggrraapphhyy DDeevveellooppmmeenntt pprroojjeeccttss

LLooccaall ppeeooppllee ppoorrttrraaiitt IInnccoommee aanndd eemmppllooyymmeenntt

EEdduuccaattiioonn

HHeeaalltthh

DDeevveellooppmmeenntt ssccoorreeccaarrdd

UUP-WRD-Maruleng Profile-311006-IS 30 Nodal Economic Profiling Project Business Trust and dplg, 2007 Governance Maruleng Political structure of the Maruleng Local Municipality

Ward no Registered voters

1 3,733

2 3,631

3 2,996

2 6 4 3,344 1 4 5 3,382 3 5 7 8 6 2,854 10 9 11 7 3,405 12 8 3,329

9 3,683

10 3,061

11 3,297

12 2,833

# Ward number Total 39,548

PPoolliittiiccaall ssttrruuccttuurree zz MMaarruulleenngg iiss aa CCaatteeggoorryy BB MMuunniicciippaalliittyy wwhhiicchh ooppeerraatteess oonn aann EExxeeccuuttiivvee CCoommmmiitttteeee SSyysstteemm zz TThhee mmuunniicciippaalliittyy hhaass bbeeeenn ddiivviiddeedd iinnttoo 1122 wwaarrddss,, eeaacchh wwiitthh aa wwaarrddccoouunncciilllloorr zz TThheerree aarree 3399,,554488 rreeggiisstteerreedd vvootteerrss iinn tthhee aarreeaa

Source: Maruleng Municipality IDP Review 2006/2007; Municipal Demarcation Board 2006

UUP-WRD-Maruleng Profile-311006-IS 31 Nodal Economic Profiling Project Business Trust and dplg, 2007 Governance Maruleng Administrative structure of the Maruleng Local Municipality The current municipal staff complement is 83 Organogram: Administrative structure of the Maruleng Local Municipality

Office of the Disaster Management Municipal Manager Communications

Internal Audit

Spatial Planning Budget and Corporate Services Community Service and Economic Technical Services Treasury Department Department Development Department Department Department

Building Infrastructure Budget and HR and Training Traffic Administration Development Expenditure

Community Land use Operation and Supply Chain Legal Section Services Management Maintenance Management

Waste Municipal Administration Revenue Management Valuation

Local Economic Acting Positions Development Source: Maruleng Municipality IDP Review 2006/07, interviews UUP-WRD-Maruleng Profile-311006-IS 32 Nodal Economic Profiling Project Business Trust and dplg, 2007 Governance Maruleng Sources of funding and budget breakdown The rates base for Maruleng municipality has grown considerably and consistently over the last three years, driven mainly by increased development activity in its urban nodes

2003/20041 2004/20051 2005/20062 2006/073

Operating expenditure 11,242,000 15,590,000 17,678,000 18,460,000

General income* 1,712,000 2,876,500 6,192,000 5,438,000

Government grants and 9,530,000 18,042,190 17,984,000 28,232,000 subsidies

Total financing 11,242,000 20,918,690 24,176,000 33,670,000

Surplus / (deficit) - 5,328,690 6,498,000 15,210,000

Capital budget - - 7,300,000 15,180,000

Operating expenses1 Capital expenditure 2005/062 7 6.6 11.3 6 5.5 2003/2004 5.2 5.1 s s d d 5 2004/2005 0.415 n n a a R R 0.818

4 f f o

o 6.517

s s 3 n n

o 2.569 o 2.0 i i 1.9 l l l l i i 2 M M 1 0.5 2.715 0.0 0 0.0 Salaries\ Contribution Maintenance Bulk Water Other Wages \ to Fixed & Repairs Purchases & Water Community Assets Land & TOTAL Allowances Assets Sewer Infrastructure Assets Buildings Payments Notes: *General income includes municipality generated income from property rates, electricity, water, sanitation, refuse removal and other. Source: 1Demarcation Board 2006; 2National Treasury, Local Government Budgets and Expenditure Review 2001/02 - 2007/08; 3Maruleng IDP Review 2006/07

UUP-WRD-Maruleng Profile-311006-IS 33 Nodal Economic Profiling Project Business Trust and dplg, 2007 Governance Maruleng General assessment of nodal governance

GGoovveerrnnmmeenntt ccaappaacciittyy // NNooddee mmaannaaggeerr CCoo--ooppeerraattiioonn ccaappaabbiilliittiieess

£ The Municipal Manager has been £ The new demarcation has £ Co-operation between identified as the ISRDP Nodal resulted in significant challenges: government departments ± Champion ± Loss of human resources and notably local and district (Mopani) institutional memory municipalities ± appears to be ± Large number of vacant posts good £ No specified municipal ISRDP ± Missing records / files (e.g.

Bohlabela LED projects) £ node manager exists. Currently Limited co-operation/co- £ responsibility for the ISRDP rests Computerisation is limited but ordination with other nodes with the Manager: Community Internet access exists and a

Services website project is almost £ Traditional authorities play a key complete. Critically Maruleng role especially given their land does not have a GIS in place £ ISRDP and other municipal / LED ownership £ projects are indistinguishable, Municipality has limited skills and resulting in difficulties assessing human capacity progress on an ISRDP level ± Municipality is currently understaffed ± Acting Manager Spatial Planning and LED oversees a large portfolio and is consequently stretched and cannot follow up on projects ± No dedicated LED official (recently resigned), but post has been advertised Source: Monitor analysis / interviews UUP-WRD-Maruleng Profile-311006-IS 34 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Maruleng Key facts of the IDP

Covers more than the node

Geographic area ¤ Geographic area Maruleng Local Municipality covered Covers exactly the node covered Covers less than the node

Month / year of latest ¤ Month / year of latest 2006 ppuubblliiccaattiioonn

LLeennggtthh // ffoorrmmaatt ¤ 97 pages, Adobe Acrobat document

¤ Created by Municipal Council (Steering Committee) with consultant Public sector mainly Author / main support Private sector mainly Author / main ¤ Both equally ccoonnttrriibbuuttoorrss Reviewed by Mopani District Municipality for alignment ¤ Approved by MEC for Local Government Includes consultants Does not include consultants

¤ Data / project progress updated on a yearly basis Relies only on consultants

TTiimmiinngg ¤ Lengthy process involving consultation with a fully representative IDP Review Forum PPrroocceessss ooff ccrreeaattiioonn ¤ Integrated with the Municipal Planning and Performance KKeeyy Management Systems

aspects ¤ aspects Prepared with all stakeholders in formal workshops

¤ Bohlabela District Municipality IDP

Other key related ¤ Other key related Mopani District Municipality IDP ddooccuummeennttss ¤ Mopani LED Strategy

UUP-WRD-Maruleng Profile-311006-IS 35 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Maruleng Key characteristics of the IDP

¤ Highlights key development issues and guides deployment of Provides insight mainly FFooccuuss // ppuurrppoossee municipal resources Provides information mainly Both equally ¤ Only 2005/06 version available from Maruleng municipal website Easy to find / access

AAcccceessssiibbiilliittyy ¤ 2006/07 IDP obtained on request Difficult to find / access ¤ Demographic and population information generally good, given Generally, very vague Precision available data

Precision ¤ Generally, quite precise Project information seems to be timely and precise

¤ x Government mainly AAccttuuaall uusseerr ggrroouupp // kkeeyy Public sector agents in the local and district municipalities Private sector mainly current recipients ¤ current recipients Government departments Both equally

¤ Although the only key planning document available at present for Extent of usage / impact Is viewed as key guiding document Extent of usage / impact Maruleng it is unlikely to be utilised beyond local government Is used minimally, very little impact

¤ The 2006/07 IDP is a revised version of the 2005/2006 IDP ¤ It binds the municipality in the exercise of its executive authority ¤ The IDP was also drafted in compliance with a legislative framework covering local government, development facilitation and environmental management

Other aspects ¤ Other aspects IDP provides a useful single point of access to available municipal data. However, much of the data are old (Census 2001) ¤ Document provides valuable information in respect of community need perceptions as well as details in respect of planned projects

UUP-WRD-Maruleng Profile-311006-IS 36 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Maruleng Delivery against key content areas

11 22 33 44 Analysis of Social Economic SSppaattiiaall // Analysis of Social Economic environmental current situation analysis analysis environmental current situation analysis analysis aannaallyyssiiss

¤ Basic demographics ¤ Data by gender, age, ¤ Basic economic data ¤ Mapping of spatial

¤ and other social (unemployment, dimensions of Service levels / gaps Minimum categories major sectors, etc.) development issues ¤ ¤

Key trends and issues ¤ Priority needs ¤ requirements Trends, opportunities, Environmental ¤ differentiation by Major challenges and constraints (by problems and threats social categories / sector) gender Covered by IDP? ; ; : ;

Level of detail H (high / low) L L L

Quality of H information L L L L (high / low) ¤ ¤ Key challenges and ¤ Qualitative ¤ No economic analysis Spatial / environmental service gaps noted discussions are made provided discussion is limited ¤ ¤ but: ¤ Comments Many data points are No analysis of linkages to A draft spatial framework more current than the - Information lacks either Bohlabela or is provided baseline Stats SA depth Mopani LED strategies data - Gender and social segmentation not supplied

UUP-WRD-Maruleng Profile-311006-IS 37 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Maruleng Delivery against key content areas

55 66 77 DDeevveellooppmmeenntt IInnssttiittuuttiioonnaall aannaallyyssiiss PPrroojjeeccttss ssttrraatteeggiieess ¤ ¤ ¤ Organogram of municipal Vision / strategy statement List of projects / project Minimum administration ¤ Summary of strategies for proposals economic development ¤ Budget, resource and time

requirements ¤

Overview of institutional ¤ Overview of sector frame estimates

strengths and weaknesses ¤ strategies (water, Targets, performance transportation, education, indicators and assignment etc.) of responsibility Covered by IDP? ; ; ;

H Level of detail H (high / low) L

Quality of H information L L (high / low) ¤ ¤ Good detail in respect of ¤ States vision and Contains a detailed list of management and development objectives projects indicating location,

administrative arrangements ¤ deliverables, timeframes, Comments Only very high level strategic as well current vacancies budget and funding sources priorities provided ¤

No discussion of strengths, ¤ No sector plans or alignment weaknesses or strategies to Mopani IDP and LED

UUP-WRD-Maruleng Profile-311006-IS 38 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Maruleng Action orientation of the IDP for the node

AAccttiioonnss pprrooppoosseedd AAsssseessssmmeenntt

EExxaammpplleess ooff kkeeyy aaccttiioonnss pprrooppoosseedd iinn IIDDPP EExxaammpplleess ooff kkeeyy aaccttiioonnss nnoott pprrooppoosseedd iinn IIDDPP Highly action-oriented ¤ ¤ ¤ FFoorrmmuullaattee aa ddeevveellooppmmeenntt ssttrraatteeggyy iinncclluuddiinngg aa ¤ SSeerrvviiccee ddeelliivveerryy aaccttiioonn ppllaannss aarree ggoooodd;; hhoowweevveerr,, ssppaattiiaall rraattiioonnaallee ffoorr MMaarruulleenngg LLEEDD iinntteerrvveennttiioonnss aarree vvaagguuee ¤ ¤ ¤ PPrroovviiddee aalll sseettttlleemmeennttss wwiitthhiinn MMaarruulleennggwwiitthh ¤ GGoooodd rreeccooggnniittiioonn tthhaatt ccrriittiiccaall eelleemmeennttss ffoorr eenneerrggyy sseerrvviicceess wwiitthhiinn ffiivvee yyeeaarrss eeffffeeccttiivvee iimmpplleemmeennttaattiioonn aarree mmiissssiinngg,, ee..gg.. SSDDFF ¤ ¤ ¤ RReessuusscciittaattee AARRDDCC pprroojjeeccttss ¤ IInnssuuffffiicciieenntt ddeettaaiill iiss pprroovviiddeedd ((ssttrraatteeggiieess aarree ¤ ¤ IInnccrreeaassee aacccceessss ttoo PPrrimimaarryy HHeeaalltthh CCaarree ttoo 110000%% rreefflleecctteedd iinn oonnee sseenntteennccee ssttaatteemmeennttss)) ¤ ooff aalll ccoommmmuunniittiieess iinn MMaarruulleennggwwiitthhiinn tthhrreeee yyeeaarrss ¤ LLiinnkkaaggeess aanndd ccaauussaall cchhaaiinnss aarree iinnssuuffffiicciieennttllyy aaddddrreesssseedd Key action areas not covered

SSuuppppoorrtt ooff iimmpplleemmeennttaattiioonn ooff tthhee pprrooppoosseedd aaccttiioonnss AAsssseessssmmeenntt

Drives

¤ implementation well ¤ AAnn eexxtteennssiivvee lliisstt ooff pprroojjeeccttss pprroovviiddeess iinnssiigghhtt iinnttoo wwhhaatt lliieess aahheeaadd ffoorr iimmpplleemmeennttaattiioonn ((pprroojjeecctt vvaalluueess aanndd ssttaattuuss aarree aallssoo ssttaatteedd)) ¤ ¤ HHoowweevveerr,, iitt rreemmaaiinnss uunncclleeaarr ttoo wwhhaatt eexxtteenntt tthhee iinnddiivviidduuaall pprroojjeeccttss aarree aaddeeqquuaattee ttoo aacchhiieevvee tthhee ttaarrggeettss sseett iinn tthhee lliisstt hheeaaddiinnggss ¤ ¤ CCaappiittaall pprroojjeecctt ddeelliivveerryy iiss,, hhoowweevveerr,, ggeenneerraalllyy wweelll ddeeffiinneedd Does not drive ¤ ¤ LLEEDD pprroojjeeccttss aarree uunnlliikkeellyy ttoo bbeeiimmpplleemmeennttaabbllee uuttiilliissiinnggtthhee IIDDPP implementation

UUP-WRD-Maruleng Profile-311006-IS 39 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Maruleng General assessment of the IDP in relation to the node

GGeenneerraall aasssseessssmmeenntt ––DDooeess tthhee IIDDPP ddeelliivveerr wwhhaatt iitt pprroommiisseess?? AAsssseessssmmeenntt ¤ Overall, the Maruleng IDP is a useful starting point in respect of budget allocation and capital project Highly planning satisfactory ¤ However, the IDP is very weak in respect of spatial planning as well as economic development. An economic analysis is absent ¤ The IDP seeks to link current needs with strategies and projects. This is, however, not always very clear and would benefit from greater detail in respect of data, as well as identified strategies ¤ Overall the IDP and its projects clearly articulates and reflects the input and needs of key stakeholders ± notably the various communities ¤ While the document is useful as a budgeting and general planning tool it is limited as a strategic document, especially in respect of LED Delivers less than it promises

IIDDPP ccoonnttrriibbuuttiioonn ttoo ssttiimmuullaattiinngg eeccoonnoommiicc ggrroowwtthh AAsssseessssmmeenntt

WWhhaatt ttoo kkeeeepp ddooiinngg WWhhaatt ttoo ddoo ddiiffffeerreennttllyy Very useful to growth debate ¤ ¤ ¤ ¤ UUppddaattee IIDDPP ddaattaa aanndd pprroojjeeccttss oonn aa ttimimeellyy bbaassiiss DDeevveelloopp aann LLEEDD ssttrraatteeggyy iinncclluuddiinngg aann eeccoonnoommiicc sseeccttoorr aanndd aaccttiivviittyy aannaallyyssiiss wwhhiicchh sshhoouulldd ffeeeedd ¤ ¤ iinnttoo tthhee IIDDPP IIddeennttiiffyy aanndd ttaarrggeett ssppeecciiffiicc sseerrvviiccee ddeelliivveerryy ggaappss ¤ ¤ DDeevveelloopp aa ssppaattiiaall ddeevveellooppmmeenntt ffrraammeewwoorrkk wwhhiicchh sshhoouulldd gguuiiddee iinnvveessttmmeenntt ddeecciissiioonnss aass wweelll aass ooffffeerr ssiiggnnaallss ttoo tthhee pprriivvaattee sseeccttoorr ¤ ¤ UUttiilliisseetthhee IIDDPP ttoo ªªaaddvveerrttiisseeººMMaarruulleennggttoo tthhee Does not contribute pprriivvaattee sseeccttoorr to growth debate

UUP-WRD-Maruleng Profile-311006-IS 40 Nodal Economic Profiling Project Business Trust and dplg, 2007 IDP assessment Maruleng Summary of IDP assessments

LLeevveell ooff ddeettaaiill AAccttiioonnss pprrooppoosseedd DDeelliivveerryy

Highly comprehensive Highly Highly breadth depth action-oriented satisfactory

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

QQuuaalliittyy ooff SSuuppppoorrtt ooff CCoonnttrriibbuuttiioonn ttoo iinnffoorrmmaattiioonn iimmpplleemmeennttaattiioonn ssttiimmuullaattiinngg ggrroowwtthh

Highly Drives Very useful to reliable implementation well growth debate

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

UUP-WRD-Maruleng Profile-311006-IS 41 Nodal Economic Profiling Project Business Trust and dplg, 2007 Development projects Maruleng IDP key projects 2005/2006

Project Description Status Value Metz Central Business District Provision of bulk water supply and reticulation Deferred R7.8 million Kampersrus Provision of bulk sewage supply and reticulation Deferred R2.1 million Metz Central Business District Provision of bulk sewage supply and reticulation Deferred R8.43 million Trichardtsdal-Calais Re-gravelling of road (10 km) Complete n/a Bismark taxi rank Re-gravelling of road (9 km) Complete n/a The Oaks Finale Re-gravelling of road (9 km) Complete n/a Hoedspruit Provision of stormwater drainage Complete R3.1 million ¤

Enable Access road and fencing of graveyard Under construction R1.2 million ¤ MMoosstt IIDDPP pprroojjeeccttss Mafefe Sekororo Upgrading of a gravel road to tar Under construction R80 million aarree rreellaatteedd ttoo tthhee Sekororo ± The Oaks Upgrading of a gravel road to tar Under construction R45 million pprroovviissiioonn ooff Mulaleni Crossing Tarring of road Complete R2.3 million iinnffrraassttrruuccttuurree aanndd Reholegile bakery Provision of community services Complete R0.25 million bbuullkk sseerrvviicceess Makgaung Community Project Provision of community services Complete R0.13 million ±± WWaatteerr ssuuppppllyy Madeira Regional solid waste sites Deferred R5 million aanndd rreettiiccuullaattiioonn Metz Central Business District Construction of police station Deferred R9 million ±± RRooaaddss Metz Demarcation of sites In progress R0.54 million ¤ ¤ NNoottaabbllyy oonnllyy oonnee Sekororo Demarcation of 1,000 sites (Worcester, Bismark and In progress R0.54 million Calais) pprroojjeecctt wwaass aann The Oaks Demarcation of sites Abandoned R0.54 million LLEEDD iinniittiiaattiivvee ¤

Hoedspruit Upgrading / extension of towns In progress R0.8 million* ¤ SSiixx pprroojjeeccttss Rural housing Provision of rural housing (PHP) In progress R5.6 million aammoouunnttiinngg ttoo Metz CBD Establishment of a disaster centre In progress R2 million RR9922 mmiillliioonn ((3377%% Hoedspruit International Airport Economic development initiatives Deferred R60 million ooff ttoottaall bbuuddggeett)) MPCC Metz Construction of a community centre In progress R3.2 million hhaavvee bbeeeenn Library Metz Construction of a library In progress R5.5 million ddeeffeerrrreedd The Oaks cost recovery Water billing system In progress R3.6 million Molalane roads Tarring of roads In progress R2.3 million ABET training Education services provision In progress R0.168 million Total R249.1 million Source: Maruleng Municipality IDP Review 2006/07, interviews *Note: R12 million required for additional land purchase UUP-WRD-Maruleng Profile-311006-IS 42 Nodal Economic Profiling Project Business Trust and dplg, 2007 Development projects Maruleng IDP key projects identified for 2006/2007

Project Locality Funder Budget Bulk water reticulation and cost recovery Mametja / Sekororo BDM R56 million Sanitation All villages BDM R3.5 million Bulk water supply, reticulation and cost Metz BDM R7.8 million recovery Bulk water and reticulation Kampersrus BDM R2.1 million Bulk sewer and reticulation Metz CBD BDM R8.43 million Subsidised housing All wards DLGH R19,28 million ¤ ¤ Six key LED Access road Molalane / Worcester MLM R0.98 million Six key LED projects have Upgrade sports facilities Calais DSAC - projects have bbeeeenn iiddeennttiiffiieedd ffoorr Upgrade sports fields All villages DSAC - 22000066//0077 Stadium Phase 2 Willows DSAC R1.5 million ¤ ¤ Civic centre and library Hoedspruit MLM R3.5 million HHoowweevveerr,, lliimmiitteedd budget is Dumping site Hoedspruit; Molalane, Bochabelo MLM - budget is aavvaaiillaabbllee Hoedspruit International Airport Hoedspruit Private R60 million ¤ Regional solid waste Madeira DPW R5 million ¤ TThhee llaarrggeesstt pprroojjeecctt Police station Metz DJ R9 million ±±tthhee HHooeeddsspprruuiitt International Clinic upgrade Mabins / Hoedspruit DHW - International AAiirrppoorrtt ±±iiss New clinic Metz / Calais DHW - pprriivvaatteellyy ffuunnddeedd Tourism Information Centre Hoedspruit / The Oaks LTP - aanndd nnoo ddeettaaiillss aarree Sepeke Cultural Village The Oaks MLM - ccuurrrreennttllyy aavvaaiillaabbllee Brick farm The Oaks MLM - Stone crusher upgrade Maruleng MLM R1.5 million Development of LED strategy Maruleng MLM R0.35 million Molalane roads Molalane RAL - Total R159.7 million

Brick farm : LED Projects Abbreviations: BDM ± Bohlabela District Municipality; DLGH ± Department of Local Government and Housing; MLM ± Maruleng Local Municipality; DSAC ± Department of Sports, Art and Culture; DPW ± Department of Public Works; DJ ± Department of Justice; LTP ± Limpopo Tourism and Parks; DHW ± Department of Health and Welfare; RAL ± Roads Agency Limpopo Source: Maruleng Municipality IDP Review 2006/07

UUP-WRD-Maruleng Profile-311006-IS 43 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng existing LED initiatives Maruleng Overview

Maruleng Municipality is currently responsible for some 13 LED projects

z Only two initiatives are currently listed in the 2006/07 IDP z A number of initiatives have been inherited from the Bohlabela District Municipality z Two initiatives were formerly the responsibility of the Lebowa Development Corporation and later the Agricultural and Rural Development Corporation (ADRC) ± The Oaks and Willows farms

AAggrriiccuullttuurraall pprroojjeeccttss TToouurriissmm pprroojjeeccttss OOtthheerr pprroojjeeccttss

• Balloon Community Garden • Sepeke Cultural Village • Mphirion pottery project • Hlohlokwe Community Garden • Atchaar factory • The Oaks Citrus Farm • Stone crusher • Willows Citrus Farm • Detergent factory • Calais Community Farm • Market stalls • Balloon Community Farm • Cattle Pound

Source: Maruleng Profile of LED Projects in Maruleng Municipality, interviews

UUP-WRD-Maruleng Profile-311006-IS 44 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng existing LED initiatives Maruleng Current Status

Background and nature of Name of project Location Status initiative The project is owned by a The project has been identified for a pilot project 1. Mphirion Moshate - group of people specialising in by the municipality for SMME development. Start- project Sekororo pottery up equipment has been purchased for the group Bohlabela DM initiative The project is not operational. The factory building Construction and operation of 2. Atchaar factory The Oaks is complete. Requires start-up capital and an atchaar factory utilising equipment mangos Limpopo LED fund initiative; The project is not operational. Currently there is a stone crushing plant to tipper truck and stone crusher machine, which are 3. Stone crusher manufacture stones for Mabins A the main assets in this project. It is the priority of concrete and other building the municipality to get this project operational uses

The factory building is complete. The project is not Bohlabela DM initiative; 4. Detergent operational. No equipment or start-up capital. This factory to produce soap and The Oaks factory project needs a feasibility study to assess if it is cleaning materials feasible to continue with the detergent factory

Not operational. Cultural village with tented Limpopo LED fund initiative; accommodation situated along near the Oliphants 5. Sepeke Pedi cultural village with River is completed. Repairs required. The The Oaks Cultural Village tourist accommodation and municipality has identified a strategic partner who facilities still has to sign the lease agreement before they can take over the facility

Source: Maruleng Profile of LED Projects in Maruleng Municipality, interviews UUP-WRD-Maruleng Profile-311006-IS 45 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng existing LED initiatives Maruleng Current status (continued)

Name of project Background and nature of Location Status initiative 6. Balloon Community garden to assist Balloon Village Not operational. It has the required infrastructure, Community with food security but there is no capital to kick-start its operation Garden 7. Hlohlokwe Community garden to assist Hlohlokwe Not operational. It has the required infrastructure, Community with food security but there is no capital to kick-start its operation Garden 8. The Oaks ADRC project; irrigated citrus The Oaks Not operational ± missed 2005/2006 season. Citrus Farm farm and pack house restored There is a community land dispute. Secured to community MAFISA funding to restart production 9. The Willows ADRC project; restored citrus The Willows Not operational ± missed 2005/2006 season Citrus farm 10. Calais Land restitution project Calais-Ofcolaco Not operational. The project needs start-up capital Community to kick-start its operation. The project has capacity Farm to create employment opportunities 11. Balloon Land restitution project Nasionaal Not operational. The project needs start-up capital Community to kick-start its operation. The project has capacity Farm to create employment opportunities 12. Cattle Pound Pound to collect stray cattle Worcester Not operational. Infrastructure is complete, but some of the properties have been vandalised. Premises are under 24hr security patrol 13. Market Stalls Development of market stalls Metz ±taxi rank Building plans have been sent to the Department adjacent to the Metz taxi rank. of Public Works for approval Implemented by DEDET Source: Maruleng Profile of LED Projects in Maruleng Municipality, interviews. DEDET = Department of Economic Development, Environment and Tourism

UUP-WRD-Maruleng Profile-311006-IS 46 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Maruleng poverty node

z Research process

z Overview

z Economy

£ GDP and employment

± Overview £ Prioritisation of economic sectors ± Selected sector: Agriculture

± Selected sector: Tourism

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Maruleng Profile-311006-IS 47 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng Summary

z Maruleng, despite a reasonable Gross Domestic Product (GDP), is one of the poorer nodes: over 80% of households live below the household subsistence level, only 28% of the adult population is employed, and a significant number of households are dependent on pensions / grants as their primary source of income z The node essentially comprises five divergent sub-economies: ± The public sector, which is the largest contributor to GDP ± Agriculture, comprising mainly large-scale commercial farming which contributes 41% of all formal employment, and small-scale or subsistence agriculture concentrated in former homeland areas ± Retail and service economies (mainly in Hoedspruit) ± Tourism (including catering and accommodation) ± Transport and communications which is the second biggest GDP contributor z Going forward, opportunities for economic growth and employment in Maruleng lie in three key sectors: ± Agriculture, including agri-processing, which is already the largest source of formal employment and the largest source of informal employment for the node's inhabitants ± Tourism, which is a key sector with significant opportunities for expansion and growth ± Retail and service businesses, which are largely dependent on the strength of other nodal industries, especially tourism in the case of Maruleng

UUP-WRD-Maruleng Profile-311006-IS 48 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng Regional economic centres

Maruleng is dominated by its one major urban and economic node – Hoedspruit – which comprises some 80% of the area’s economic activity

TTrriicchhaarrddttssddaall MMiiccaa ¤ ¤ ¤ ¤ SSmmaalll uurrbbaann nnooddee VVeerryy ssmmaalll nnooddee ¤ ¤ ¤ ¤ R526 R40 PPrreeddoommiinnaannttllyy sseerrvviicceess llooccaall R36 CCeennttrree ooff MMaarruulleenngg''ss fflleeddgglliinngg mmiinniinngg ccoommmmeerrcciiaall aaggrriiccuullttuurree sseeccttoorr ¤ ¤ DDoommiinnaatteedd bbyy ccoommmmeerrcciiaall Ofcolaco Mica aaggrriiccuullttuurraall pprroodduuccttiioonn ¤ ¤ Hoedspruit MMoossttllyy cciittrruuss aanndd mmaannggoo HHooeeddsspprruuiitt ¤ ¤ ¤ Large land claims and a Trichardtsdal ¤ Large land claims and a R526 CCoommpprriisseess 8800%% ooff MMaarruulleenngg''ss nnuummbbeerr ooff rreessttiittuutteedd ffaarrmmss eeccoonnoommiicc aaccttiivviittyy ¤ Metz ¤ OOnnllyy ssuubbssttaannttiiaall uurrbbaann nnooddee iinn tthhee mmuunniicciippaalliittyy ¤ Diphuti ¤ Key commercial and service centre to R527 Key commercial and service centre to Metz / Sekororo bbootthh aaggrriiccuullttuurree aanndd ttoouurriissmm iinndduussttrryy Metz / Sekororo Hoedspruit ¤ GaMametsa ¤ Seat of Maruleng Municipality offices ¤

¤ Seat of Maruleng Municipality offices ¤

NNiinneettyy ppeerr cceenntt ooff nnooddee''ss ¤ LLooccaattiioonn ooff HHooeeddsspprruuiittAAiirr FFoorrccee bbaassee

population ¤

population ¤

¤ Substantial development of residential ¤ Substantial development of residential HHuunnddrreedd ppeerr cceenntt rruurraall Kampersrus eessttaatteess aass wweelll aass aa nneeww sshhooppppiinngg mmaalll ppooppuullaattiioonn R531 are taking place ¤

¤ are taking place ¤

Dominated by residential and ¤ Dominated by residential and Farming is the main surrounding subsistence agriculture Farming is the main surrounding subsistence agriculture activity

¤ Klaserie

¤ activity DDiissttrriicctt hhoossppiittaall aanndd pprroovviinncciiaall ±± MMaannggooeess aanndd cciittrruuss aarree tthhee mmaaiinn ggoovveerrnnmmeenntt ffuunnccttiioonnss aarree KKaammppeerrssrruuss ccrrooppss

located here ¤ ¤ located here ¤ ¤

¤ Limited agri-processing: ¤ Small urban node Mostly tribal trust land Small urban node Limited agri-processing:

Mostly tribal trust land ¤ ¤

¤ ± Packhouses ¤ Significant infrastructure and PPrreeddoommiinnaannttllyy rreessiiddeennttiiaall aanndd ttoouurriissmm ± Packhouses

Significant infrastructure and ¤ ¤ ± Fruit drying and juice factory service delivery backlogs KKeeyy eeccoonnoommiicc aaccttiivviittyy iiss BB&&BBss aanndd ± Fruit drying and juice factory service delivery backlogs ¤ ¤ ¤ ¤ rreellaatteedd sseerrvviicceess sseerrvviinngg ttoouurriissmm ttoo tthhee Five-star private game lodges attract LLiittttllee ccoommmmeerrcciiaall ddeevveellooppmmeenntt Five-star private game lodges attract BBllyyddee RRiivveerr CCaannyyoonn ffoorreeiiggnn ttoouurriissttss

aanndd aaccttiivviittyy ¤ ¤ GGaammee ffaarrmmiinngg aanndd wwiillddlliiffee eessttaatteess Economic Activity: High Medium Low

UUP-WRD-Maruleng Profile-311006-IS 49 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng Economic centres: Formal trading activities The retail sector accounts for some 8%, and finance and business 12.5%, of formal business activity in Maruleng … much of this is concentrated in Hoedspruit

£ There are currently a number of small shopping centres in Hoedspruit ± The Spar Centre ± La Bamba Centre ± Hoedspruit Crossings £ More recently the Kamogelo Tourism Centre was completed ± A shopping centre comprising retail stores, estate agents, restaurants and a tourism information centre Spar Centre, Hoedspruit Kamogelo Centre, Hoedspruit ± Aimed at the tourist market £ Few of the major furniture outlets are represented (in contrast to Acornhoek in Bushbuckridge); however, major grocery chains and banks are well represented: ± Spar, Friendly Grocer ± Standard, ABSA and FNB banks £ Currently a new shopping centre is being developed at a cost of R41 million

£ 2 La Bamba Centre, Hoedspruit New Pick n Pay Centre under 8,100 m lettable space construction £ 34 tenants (78% secured) including Pick ‘n Pay, FNB and Wiesenhof £ Aims to retain increased share of spend locally (current estimate is that 50% of disposal income leaves the area) Current retail and services activities primarily service the surrounding farms and the tourism establishments – specifically lodges. Real estate is an increasingly significant economic activity

Source: Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 50 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng Economic centres: Informal trading activities The informal sector plays a key role in supplying goods to local communities – key activities are located around taxi ranks, along key road segments and throughout the rural settlements

z Non-perishable goods are purchased mostly from Hoedspruit, Tzaneen or Acornhoek IInnppuuttss z Perishable goods (mostly citrus and mango) are mostly purchased locally from farmers

z More tourism-focused traders (selling fruit and curios) operate along the R36 PPrroodduuccttiioonn z Taxi ranks and transport nodes

z Competing with retail chain supermarkets for the TTaarrggeett same customers mmaarrkkeettss z Convenience and price are their main competitive advantage

z Municipality has built a facility in Hoedspruit SSuuppppoorrtt z Transport costs are a key cost as traders need to travel from rural settlements to Hoedspruit

Source: Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 51 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng Kayamandi business survey

Most businesses are focused on local markets. Retail is the dominant activity On behalf of Mopani District Municipality, Kayamandi surveyed some 300 formal and Main clients

informal businesses in 2005 and 2006 in the Tourists Other district. 4% 4% z Fifty businesses were interviewed in Passing trade / traffic Maruleng (46% formal, 54% informal) 11% z Eighty-one per cent of businesses (formal and informal) focused on serving the local population; only 4% were Surrounding population focused on tourism 81% z Eighty-four per cent of businesses were involved in some form of retail Main business sectors

Personal Other Services 12% 2%

Restaurants / Survey data suggest that businesses are Take-away not very sophisticated and that the potential 2% tourism market is generally not considered Retail 84%

Source: Mopani District Municipality LED Strategy 2006 UUP-WRD-Maruleng Profile-311006-IS 52 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng Kayamandi business survey (continued) More than 80% of businesses have been in existence for more than a year, with some 21% of businesses trading for more than five years. While expectations of future growth are generally positive, businesses are concerned about increased competition Business opportunities Number of years trading Business opportunities SSuurrvveeyy rreessppoonnddeennttss wweerree aasskkeedd aabboouutt bbuussiinneessss ooppppoorrttuunniittiieess 1 or less 19% tthhaatt eexxiisstt iinn tthheeiirr aarreeaa tthhaatt aarree nnoott pprreesseennttllyy bbeeiinngg eexxppllooiitteedd ¥ ¥ LLaarrggeerr ssuuppeerrmmaarrkkeettss iinncclluuddiinngg cchhaaiinn ssttoorreess ssuucchh aass SSppaarr aanndd SShhoopprriittee

2 to 3 44% ¥ ¥ WWhhoolleessaalleerrss wwhheerree ssttoocckk ccaann bbee bboouugghhtt ¥ ¥ EEnntteerrttaaiinnmmeenntt ffaacciilliittiieess ((cciinneemmaass aanndd rreessttaauurraannttss)) ¥

4 to 5 17% ¥ FFiilllliinngg ssttaattiioonnss iinn rruurraall aarreeaass ¥ ¥ BBeetttteerr ttrraannssppoorrtt iinn rruurraall aarreeaass ¥ 6 to 10 15% ¥ PPrroocceessssiinngg ooff ffrruuiitt aanndd vveeggeettaabblleess ¥ ¥ TToouurriissmm--rreellaatteedd bbuussiinneesssseess ((aaccccoommmmooddaattiioonn aanndd ccaatteerriinngg,, 10 plus 6% aarrttss aanndd ccrraaffttss)) ¥ ¥ CCllootthhiinngg rreettaaiilleerrss,, ssppeecciiffiiccaallllyy cchhaaiinn ssttoorreess lliikkee WWoooollwwoorrtthhss,, 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 EEddggaarrss,, eettcc.. ¥ % ¥ CChhiicckkeenn pprroodduuccttiioonn

Expectations of growth in the next year ¥ 100% ¥ DDeevveellooppmmeenntt ooff yyoouutthh cceennttrreess aanndd ttrraaiinniinngg iinnssttiittuuttiioonnss ¥ 90% ¥ HHaannddmmaaddee mmaatteerriiaallss ¥ 80% ¥ YYoouutthh ggaarrddeenniinngg ¥ 70% ¥ AArrttss aanndd ccrraaffttss ddeevveellooppmmeenntt cceennttrree ¥ 60% ¥ 44% SSmmaallll bbuussiinneessss aassssiissttaannccee ¥ 50% ¥ WWoommeenn eemmppoowweerrmmeenntt 40% 36% 30% 20% 14% 10% 6% The key business opportunities identified by businesses in the 0% 0% area include grocery shops and wholesalers. In rural areas Large Small No Change Small Large services such as transport and filling stations were recognised as Increase Increase Decrease Decrease possible business opportunities Source: Mopani District Municipality LED Strategy 2006 UUP-WRD-Maruleng Profile-311006-IS 53 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng Key trend – Residential development The Hoedspruit node is characterised by a property boom as a consequence of the increased development of residential game estates

¦ An estimated 1,280 units are being developed (about 50% of these are already completed) SSccaallee ¦ Hoedspruit Wildlife Estate accounts for 480 units ± roughly equivalent to current total housing in Hoedspruit

¦ Secure residential estates located on game farms promoting a NNaattuurree ooff ªsafari / game lodgeº lifestyle ddeevveellooppmmeennttss ¦ Typically land is sold and owners are required to build (within parameters ± controlled design and specifications)

¦ Affluent households (mainly Gauteng) seeking weekend ªgetawaysº as well as a large proportion of international tourists TTaarrggeett mmaarrkkeett ¦ Stand prices range from R300,000 to R700,000 while houses start at R1.2 million to R2.5 million

¦ Significant economic impact ± growth of retail, catering and related services (new shopping mall to cater for Hoedspruit Wildlife Estate)

EEccoonnoommiicc iimmppaacctt ¦ Hoedspruit currently has 15 building contractors, 11 electricians, six plumbers and three major building material suppliers

¦ Significant construction-related employment; however, full-time employment levels vary depending on whether the estates are EEmmppllooyymmeenntt permanently occupied or used as holiday residences iimmppaacctt ¦ Rough estimate is that at least one permanent job is created in the region per new house built

¦ Developments are placing increased pressure on bulk services ± CCoonncceerrnnss especially water ¦ Anticipated level of economic impact may be over-estimated Source: Monitor interviews/Analysis UUP-WRD-Maruleng Profile-311006-IS 54 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng Income Eighty-eight per cent of the population live below the Household Subsistence Level

Annual household income: 2001 100% · No current data were available in respect Maruleng · No current data were available in respect ooff tthhee nnuummbbeerr ooff ggrraanntt rreecciippiieennttss iinn tthhee South Africa MMaarruulleenngg mmuunniicciippaalliittyy 80% 75% ·· HHoowweevveerr,, 22000011 CCeennssuuss ddaattaa iinnddiiccaattee Perrcenttage off househollds lliiviing tthhaatt 7755%% ooff hhoouusseehhoollddss aarree iinnddiiggeenntt bellow Householld Subsiisttence 60% Levell:: ·· AAnneeccddoottaall eevviiddeennccee ssuuggggeessttss tthhaatt wwiitthh s d l 49% Maruleng: 88% o Maruleng: 88% eexxcceeppttiioonn ooff tthhee ppeennssiioonn ggrraanntt,, tthheerree iiss h e

s Soutth Affrriica:: 65% ssttiillll lliimmiitteedd kknnoowwlleeddggee ooff aanndd aacccceessss ttoo u o 40% disability and child support grants in rural H disability and child support grants in rural

f o aarreeaass ooff tthhee ddiissttrriicctt % ·· IItt iiss eessttiimmaatteedd tthhaatt aa ssiizzeeaabbllee nnuummbbeerr ooff 20% 16% 13% 13% hhoouusseehhoollddss aarree,, tthheerreeffoorree,, nnoott rreecceeiivviinngg 9% 6% 7% 6% aannyy ffoorrmm ooff ssoocciiaall aassssiissttaannccee 3% 2% 1% 0%

0 0 0 0 1 0 0 0 0 0 6 0 0 6 2 4 8 6 3 9 9 8 6 3 5 R 1 3 7 5 - - - 1 1 w 1 1 1 - R lo 0 0 0 1 e e 6 2 4 0 v B 9 8 8 o 9 1 3 6 b R R R 7 A R

Source: Stats SA Census 2001, Mopani IDP 2006-2011 UUP-WRD-Maruleng Profile-311006-IS 55 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng Employment status The number of employed people has grown over the last decade and the unemployment rate is lower than the national average Employment status (Population aged 15-65 yrs): 2001 Employment growth 80% 3.0% Maruleng South Africa 2.5% 2.4% 2.3% 60%

53% 5 6

- 2.0% f 5 s o

1 n

r o d e s e b r g

42% e m A u P

n s N d

r

o 40%

f 1.5% i e y t o y

a o l

34% l R u p p G m o A E P 28% C

f o

24% 1.0% % 20% 19%

0.5%

0% 0.0% Employed Unemployed Not Economically 1995 - 2004 2000 - 2004 Active

Source: Stats SA Census 2001; Quantec UUP-WRD-Maruleng Profile-311006-IS 56 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng Formal employment by sector Agriculture is the single largest employer in the node, accounting for 41.1% of all formal jobs

Formal employment by major sector: 20011 45% 41.1%

The agricultural sector in n 40% o

i Maruleng accounts for the t a l 35% majority of employment u s r p y o

5

P 30%

6 - d 5 e y 1 25%

o l d p e g m 20% 17.0% A E

f o

15% % 10% 7.9% 7.7% 7.6%

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v e r c c r r u n p i v t p s h a e t m i t c n t a i n i a s n e r r n a r c w

s i s p s i t g n f s l s c n u i c

u u u i i e i a e r m P s n f u e a a u n e r a o d h q o s a l t n p r g o r t u m a s r i M t n o s n r h s o o c o b A u C F e a f t a m C e T h e r s l s o M n i E W c

No. of jobs 6,122 2,539 1,179 1,140 1,133 561 475 431 129 85

Note: 1The category ªUndeterminedº employing 9.7% of the population aged 15-65 has been left out; 2This covers the public sector, i.e., civil servants, teachers, health care workers, police, etc. Source: Stats SA Census 2001; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 57 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng GDP The economy in Maruleng has grown faster than the provincial economy over the last decade; however, the GDP per capita is still only a third of the provincial GDP per capita

GDP (constant 2000 prices): 1995-2004 Real GDP growth 1,200 8%

Maruleng 6%

) 4.5% 1,000 % 957.1 ( 4.0% 4.1% 937.7

R 4% 3.5%

875.0 G Limpopo A

809.8 C 2% 800 727.2 )

n 0% o

i 644.8 l l i 1995-2004 2000-2004 M ( 600 GDP per capita (constant 2000 d n

a prices): 2004 R 20,000 Maruleng 400 15,000 12,558 11,116 d n

a 10,000 Limpopo 200 R

5,000

0 0 1995 1997 1999 2001 2003 2004

Source: Stats SA Census 2001; Quantec UUP-WRD-Maruleng Profile-311006-IS 58 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng GDP by sector Public sector activity dominates Maruleng’s economy

Share of GDP by sector: 2004 GDP by sector (constant 2000 prices) 30% 300 General Average CAGR for 27.1% Government GDP: 4.5% Services 25% 250 22.8% Transport & Communication 4 0

20% 0 2

) 200 : s % d (

n P a D R

f G

o Finance & f 15%

o s 150 Business n

e 12.5% r o i

l Agriculture, a Services l i h Forestry & M S 10.2%

n

i Fishing

10% 8.1% P 100 D

6.5% G Wholesale & Retail Trade 5.4% Mining 5% Community, Social & Other 2.9% 50 Catering & 2.1% 1.6% Personal Services 0.8% Electricity Accommodation & Water Construction 0% Manufacturing General Finance & Wholesale & Community, Manufacturing Construction 0 Government Business Retail Trade Social & Other Services Services Personal -4% -2% 0% 2% 4% 6% 8% 10% Services Agriculture, Real GDP CAGR: 1995-2004 Catering, Electricity & Water Transport & Forestry & Fishing Communication Accommodation Mining & Quarrying

Source: Quantec; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 59 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng Quantitative prioritisation using economic data The average index (from 100 – high, to 0 – low) represents a quantification of the potential for economic growth and job creation of the ten different sectors

GDP Employment

Sectors 2004 GDP in Number of Average index Employment constant 2000 GDP index employees: index prices 2004 1 Community and governmental 310,590,422 100 2,539 41 70 High services 2 Agriculture, forestry and 97,873,010 30 6,122 100 65 fishing

3 Transport and communication 217,762,089 69 1,133 17 43

4 Wholesale and retail trade; 105,282,457 32 1,179 18 25 Catering and accommodation

5 Finance and business services 119,926,484 37 431 6 21

6 Mining 62,179,383 18 129 1 9

7 Manufacturing 20,417,879 4 475 6 5

8 Construction 7,885,106 0 561 8 4

9 Electricity and water 15,139,560 2 85 0 1 Low

/100 /100 /100

Note: Since no Quantec data are available for employment, the employment data provided by Stats SA were used Source: Quantec; Stats SA Census 2001; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 60 Nodal Economic Profiling Project Business Trust and dplg, 2007 Economy overview Maruleng Qualitative prioritisation of top five sectors In particular, the agricultural and tourism sectors present growth opportunities for the region, but government services could be used to stimulate additional investment and growth

Sectors Average index Potential for growth Assessment

§ Agriculture is the largest single employer in the district and makes an important contribution to nodal GDP

Agriculture, § Despite the many people employed in agriculture the GDP contribution is average and this forestry and 65 indicates potential for growth and expansion

fishing § Given the current land claims initiatives agriculture will continue to play a critical role in the nodal economy

Wholesale and § The sector is the third largest employer after agriculture and general government services retail trade; § A large GDP contribution and rapid growth especially for the wholesale and retail part gives 25 Catering and this sector high potential for further growth accommodation § Importantly tourism is a key contributor with significant growth potential

§ Average performance in terms of number of employees but substantial GDP contribution Finance and and rapid growth over the last decade

business 21 § However, this sector is to a large extent dependent on growth in other sectors and the services potential for direct growth within this sector is limited

§ The public sector is the largest contributor to GDP and the second largest contributor to employment

General § Since the public sector is funded by taxation, and, therefore, is itself dependent on growth government 70 in the private sector, the potential for direct growth is very limited. However, investment in services government facilities and services could act as an important catalyst to broader economic growth especially in marginalised areas.

Transport and § While the second largest GDP contributor it only employs 1,133 people

43 § communication Growth options are, however, limited

Low growth High growth potential potential Source: Quantec; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 61 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Maruleng poverty node

z Research process

z Overview

z Economy

± Overview ¨ Description of current value chain ¨ ± Selected sector: Agriculture Growth constraints and solutions ¨ Potential for sector ± Selected sector: Tourism

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Maruleng Profile-311006-IS 62 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Summary – The case for agriculture in Maruleng Agriculture currently is, and is likely to remain a key economic sector and employment generator in Maruleng

z Maruleng's dominant economic activity is commercial agriculture ± The region is the leading producer and exporter of mango and one of the largest producers of citrus ± Other crops such as vegetables are becoming increasingly important ± Citrus and mango require significant production levels in order to be profitable and there are concerns that these are not viable options for smaller emerging farmers unless structured through a co-operative z Potential exists to introduce sugar cane which would provide alternatives for smaller emerging farmers and could supply a planned sugar mill and / or bio-fuel plan in Hoedspruit z In order for agriculture to remain competitive, four areas must be addressed: ± The speedy and effective resolution of land claims and the introduction of private sector partnerships to ensure skills transfer and ongoing commercial viability of farms ± Significant investment in transportation infrastructure, notably roads and rail, as well as the exploring of options to establish an airfreight hub in Hoedspruit ± The more effective branding and marketing of Maruleng produce and the securing of contracts with local and domestic customers such as large food retail chains ± The development and expansion of agri-processing activities such as juice processing, fruit drying, etc.

Source: Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 63 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Pictorial overview

Agriculture in the area is dominated by Most rural settlements practise A number of citrus plantations are not large commercial citrus and mango subsistence agriculture – most land under active cultivation farms is severely degraded

Sorting and packing Green and red pepper Significant equipment and dominate with little cultivation: Newer specialist pack houses are idle on processing agricultural ventures are former ARDC farms emerging

UUP-WRD-Maruleng Profile-311006-IS 64 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Overview of the agricultural sector

IInnppuutt PPrroodduuccttiioonn TTaarrggeett mmaarrkkeettss

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

z Use of natural fauna z Commercial farming: z Commercial farmers export (monkey oranges, marula ± Large commercials farmers majority of fruit, remainder fruit, medicinal plants) grow mainly citrus and is supplied to local markets z Some growth of mango in mango, or farm game ± Export is usually on gardens / backyards, and ± ARDC estates grow mainly contract citrus and mango other crops ± Local supply is sold via z Smallholding farmers grow z Existing infrastructure / fresh produce markets maize, vegetables, mangos, estates of former in major cities rear chicken development corporations z Smaller farmers supply z Subsistence farming: (ARDC) only to the local community ± Maize, grains, cattle, goats, z Game and cattle farmers small vegetable gardens, ± Local community is make use of for mangos accessed from roadside grazing z Little local processing ± stalls and informal z Soil and climate suitable sorting, cleaning and packing markets for citrus, mango and are dominant vegetable plantations ± Some mango-drying and atchaar production Source: Monitor interviews UUP-WRD-Maruleng Profile-311006-IS 65 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Land restitution challenges

Land ownership and the finalisation of land claims is a key challenge in respect of continued agricultural production in Maruleng z 18.5% of the total land area (or some 60,000 ha) is subject to 45 registered land claims z This covers 518 farms and 24 settlements z A number of land restitution projects are in an advanced stage ± Thirty-eight farms, comprising some 7,342 ha, have been handed over to beneficiaries z Some 92% of restituted land is currently cultivated or utilised for farming ± Grazing is the dominant use (68% of land under cultivation) ± Key crops are mango and citrus Current restituted land utilisation (ha) Total land cultivated or utilised for grazing: 6,743 ha Farms transferred to beneficiary communities in Maruleng (as at 2006) Mangos 1,763 No. of Current Labour Area Total 26% Farms ha Permanent Casual Citrus 433 Sekororo 13 5,158 260 785 6% Moletele Cluster 1 7 878 13 161 Moletele Cluster 2 15 916 12 418 Bananas Moletele Cluster 3 3 390 17 520 Grazing 4,501 13 Total 38 7,342 302 1,884 68% Litchis 0% 33 Source: Limpopo Department of Agriculture, Mopani DM IDP 2006-2011, Monitor 0% interviews/Analysis, Land Claim Commissioner 2005 Annual Report

UUP-WRD-Maruleng Profile-311006-IS 66 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Inputs From an “emerging farmer” perspective, land and labour are available but knowledge, skills and equipment are lacking HHaass LLaacckkss ; Land : Large plots of land z Land managed by traditional z The land claims process and traditional authorities is available for cultivation distribution of land implies small parcels by emerging farmers of land per farm (1-10 ha per farmer) z Families and individuals have recently become land owners : Water through the land claims process z Abundant water is nearby but difficult to access z Although commercial irrigation ; Natural endowment schemes exist many emerging farmers z Climatic conditions suitable for have no access and rely on boreholes citrus and vegetable production and other crops such as sugar cane : Resources z Use of natural fauna (monkey z A lack of skills has resulted in oranges, marula fruit, medicinal development corporation estates falling plants) into disrepair and disuse z Widespread growth of mango in z Lack of skills and management gardens / backyards capabilities result in a lack of farming production

Source: Monitor interviews UUP-WRD-Maruleng Profile-311006-IS 67 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Production – Existing The node produces a variety of agricultural products, including commercial and subsistence crops and livestock

CCrrooppss LLiivveessttoocckk AAggrrii--pprroocceessssiinngg ¨ ¨ Citrus and mango Cattle and goats ± raised ¨ Packing ± Key production crops mostly for subsistence / ± Main processing is centred on Hoedspruit traditional purposes washing and packing of

and Trichardtsdal ¨ fruit for export Game ¨ Vegetables ± Limited vegetable ± Used for hunting, processing ± Limited production of biltong and taxidermy peppers, tomatoes, ¨ Processing ± Eco-tourism / lodges and other vegetables ± Limited small-scale ± Tunnel production ¨ Poultry ± raised mostly for juicing subsistence / traditional ± Mango-drying purposes or farmed on a ± Atchaar production small scale

Source: Mopani District Municipality LED Strategy 2006, Monitor interviews UUP-WRD-Maruleng Profile-311006-IS 68 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Production – Types of products The types of products grown in the area vary between subsistence and commercial farmers, with the latter relying on irrigation to produce a variety of crops

OOtthheerr aaggrriiccuullttuurraall FFiieelldd ccrrooppss PPrroodduuccee LLiivveessttoocckk aaccttiivviittiieess

z Maize z Citrus z Game farms z Mango z Vegetables z Tomatoes z Avocados z Onions

z Maize z Vegetables z Cattle z Marula z Mango z Goats z Poultry

Commercial farming

Subsistence / small-scale farming

Source: Mopani District Municipality LED Strategy 2006, Monitor interviews UUP-WRD-Maruleng Profile-311006-IS 69 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Production – Potential The node has the potential to produce a greater range of agricultural products, and to expand production of existing products to a commercial level

CCrrooppss AAggrrii--pprroocceessssiinngg ¨ ¨ Organic produce is becoming A sugar mill has been popular world-wide; there is proposed for construction in potential for farmers in the node Hoedspruit

to increase production to cater to ¨ The node has the potential to this market on a larger scale support fruit and vegetable ¨ Expansion into vegetables for processing plants export and local chain stores ¨ Potential exists to establish a ¨ Sugar cane for the proposed juicing factory to process fruit sugar mill / ethanol plant and vegetables for juice and pulp

Source: Monitor interviews UUP-WRD-Maruleng Profile-311006-IS 70 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Production – Focus on citrus Citrus is one of the main crops in Maruleng with numerous commercial, previous homeland development corporations and recently restituted citrus estates

GGeenneerraall iinnffoorrmmaattiioonn ¨ ¨ TThhee mmaaiinn mmeemmbbeerrss ooff tthhee cciittrruuss ffaammiillyy aarree oorraannggeess,, lleemmoonnss,, ggrraappeeffrruuiitt,, nnaaaarrttjjiieess aanndd lliimmeess ¨ ¨ IInn SSoouutthh AAffrriiccaa,, cciittrruuss pprroodduuccttiioonn iiss llaarrggeellyy lliimmiitteedd ttoo tthhee iirrrriiggaattiioonn aarreeaass ooff LLiimmppooppoo aanndd MMppuummaallaannggaa pprroovviinncceess ¨ ¨ CCiittrruuss ttrreeeess ggrrooww iinn ssuubbttrrooppiiccaall cclliimmaatteess,, aanndd rreeqquuiirree ffeerrttiillee,, wweellll--aaeerraatteedd aanndd nniittrrooggeenn--rriicchh ssooiillss wwiitthh aa ppHH ooff bbeettwweeeenn 66 aanndd 66..55 ±± DDiiffffeerreenntt ttyyppeess ooff ttrreeeess ccaann ggrrooww iinn vvaarriieedd ccoonnddiittiioonnss,, bbuutt wwaatteerr aanndd ssuunn aarree eesssseennttiiaall ¨ ¨ BBeettwweeeenn 3300 ttoo 6600 ttrreeeess ccaann bbee ppllaanntteedd ppeerr hheeccttaarree ±± YYiieellddss wwiillll ddeeppeenndd oonn ssooiill aanndd ttrreeaattmmeenntt ¨ ¨ LLaacckk ooff mmooiissttuurree ssuupppprreesssseess ggrroowwtthh;; hheennccee cciittrruuss eessttaatteess rreellyy hheeaavviillyy oonn iirrrriiggaattiioonn ¨ ¨ TTrreeeess aarree vvuullnneerraabbllee ttoo ppeessttss ssuucchh aass aannttss,, tthhrriippss aanndd ccaatteerrppiillllaarrss ±± OOtthheerr mmoouullddss aanndd ffuunnggii aallssoo aattttaacckk bbootthh ttrreeeess aanndd ffrruuiitt QQuuiicckk ssttaattiissttiiccss § ¨ § SSoouutthh AAffrriiccaa pprroodduucceess aabboouutt 22 mmiilllliioonn ¨ FFrruuiitt aarree ppooppuullaarr ffoorr tthheeiirr hhiigghh VViittaammiinn CC ccoonntteenntt

tonnes of citrus produce p.a. ¨ tonnes of citrus produce p.a. ¨ CCiittrruuss fflloowweerrss ssttaarrtt ttoo aappppeeaarr iinn sspprriinngg,, aanndd hhaarrvveessttiinngg iiss aabboouutt sseevveenn mmoonntthhss § § CCiittrruuss aaccccoouunnttss ffoorr 1177%%ooff llaatteerr horticultural produce horticultural produce ¨ ¨ If taken care of, a citrus tree will produce fruit for 15-20 years

§ If taken care of, a citrus tree will produce fruit for 15-20 years § TThhee cciittrruuss iinndduussttrryy eeaarrnnss aabboouutt RR22bbnn ppeerr yyeeaarr aanndd eemmppllooyyss aann eessttiimmaatteedd 110000,,000000 ppeeooppllee

Source: South Africa Yearbook 2005/06; Department of Agriculture; Citrus Growers Association, Citrus Research International UUP-WRD-Maruleng Profile-311006-IS 71 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Production – Focus on the South African citrus industry Limpopo is the largest citrus producing area in South Africa. Maruleng is a main production area. The industry has shown steady growth and positive returns over the last five years, with the majority of South African product being exported Major citrus production areas, South Africa: 2005 Production and export markets, citrus fruit: 2005 16,255 100% 4% USA 21% Local 6% Middle East 15,000 Consumption 12,923 TToottaall hheeccttaarreess uunnddeerr 80% 12%

11,681 Japan )

ccuullttiivvaattiioonn 22000055:: 5577,,116688 s e n c

9,524 25% o u

10,000 Processed T

60% ( d United

o 31% e r Kingdom P m

l u l a t 4,004 40% o

5,000 o V T

2,106 f 54% o

639 36 20% Export 33% % European 0 Union o e a e lu d e t p p g p u n p s 0% o a n a a a e p a Z il C l C a z C W m a w n i rn rn a r th Total Export L e m e K w e r t u t S h o s p s rt N a M e o Production E W N Export volumes and pricing: 2001-2005 Domestic producer price CAGR: 2000-2005 1500 3000 Export Volumes 25%

Price ) 19.7% n 20% o T /

1000 2000 d n

15% a R

11.0% 11.4% (

e

8.6% c

10% 8.0% i r

500 1000 P 5%

0% Oranges Grapefruit Lemons Naartjes Soft citrus 0 0 2001 2002 2003 2004 2005 Source: South Africa Yearbook 2005/06; Department of Agriculture; Citrus Growers Association Annual Review 2005, Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 72 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Production – the organic alternative for citrus farming Organic citrus production for export markets could be a viable farming activity for Maruleng, with Europe being a highly lucrative market

European organic citrus consumption 2000 (Top5) z In areas where access to fertilisers and pesticides is limited, organic 15000 13,000 production reduces dependence

s 9,000 on such inputs n 10000

o 8,000 8,000

IInnppuuttss T 7,000 z Primary fertiliser for organic citrus production is chicken manure, 5000 some of which could be supplied locally in Maruleng 0 Germany France Austria UK Netherlands z Taking into account the ecological sensitivity of the Maruleng area and

the potential to establish other 1 PPrroodduuccttiioonn German demand for organic citrus juice 1998-2004 farming (e.g. silkworms), ecological 2500 6 ) s

friendly organic farming methods Volume Revenue n 5 o i

2000 l l i

would reduce the negative effects ) M

s 4 $ e

r 1500 t S i U L 3 z (

Fast growing demand 0 e

0 1000 u 0 n ( 2

z e

Markets Higher prices for organic than e Markets v

500 e m 1 u R conventional produce l o

V 0 0 1998 1999 2000 2001 2002 2003 2004

Source: Southern African Citrus Co-operative, FAO Commodity and Trade Policy Research; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 73 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Production – Focus on the South African mango industry Maruleng is the leading mango producing area in South Africa. The industry has faced poor harvests and a stagnant export market, but growth in domestic demand. Processed mango is currently the fastest growing segment, albeit the least profitable

Mango production volumes South Africa: 2000-2006 Mango industry estimated turnover South Africa: 2000-2006 100,000 200 179.31 85,349 89,294 168.79 162.66 80,000 73,359 67,348 140.38 66,776 150 132.65 58,601 60,000 114.71 s n s o n i

l 100 o l i T

40,000 m

R 50 20,000

0 0 00/01 01/02 02/03 03/04 04/05 05/06 00/01 01/02 02/03 03/04 04/05 05/06 Mango Market Composition: 2000-2006 Average Prices Achieved by Market: 2005/6 100% CAGR 90% 14% 18% 18% 27% 28% Domestic , 3,80000-06 80% 39% 6.7% 70% 30% 28% 23% 60% 21% Export 9% 30% 0.0% 50% 7% 6% 19% 40% 19% 20% 20% 26% 10% 13% Drying , 1,350 30% 4% 6.2% 10% 6% 20% 30% 29% 10% 25% 23% 22% 27% Atchaar , 800 1.3% 0% 00/01 01/02 02/03 03/04 04/05 05/06 Juice , 1,200 5.9% Domestic Export Drying Atchaar Juice 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Source: South African Mango Growers Association; Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 74 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Production – Focus on the South African mango industry The mango industry is facing major challenges, especially declining international prices, which have caused production to shift to domestic demand

Export volumes and pricing: 2000-2006 Bavaria Estates (Hoedspruit) 17,500 5,000 Bavaria Estates (Hoedspruit) Export Volumes ·· LLaarrggeesstt mmaannggoo pprroodduucceerr iinn SSoouutthh AAffrriiccaa 15,000 Price 4,000 ·· 11,,662211 hhaa iinn eexxtteenntt ooff wwhhiicchh 882255 hhaa iiss uunnddeerr mmaannggoo 12,500 pprroodduuccttiioonn 3,000 · In the 2006 season Bavaria will ship 1 million cartons of 10,000 · In the 2006 season Bavaria will ship 1 million cartons of mmaannggoo 7,500 2,000 ·· PPrroocceesssseess 55,,000000 ttoonnnneess ooff ffrreesshh mmaannggoo iinnttoo 337755 ttoonnnneess ddrriieedd mmaannggoo 5,000 · Employs 1,300 people (including 500 in the pack 1,000 · Employs 1,300 people (including 500 in the pack 2,500 hhoouusseess))

0 0 00/01 01/02 02/03 03/04 04/05 05/06

© Maruleng accounts for 45% of total national mango production ± 3,500 ha ± 35,000 tonnes in 2005 © The local mango industry experienced a very poor 2005/06 season ± Down 50 to 60%, mainly due to low water availability ± Competition from deciduous fruit industry, with marketing an issue

Source: South African Mango Growers Association; Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 75 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Mango processing Maruleng is currently the leading producer of dried mango (six processors), but lags in respect of juice and other processing. Key competitor areas include , Levubu, Tzaneen (all in Limpopo) and Malelane (Mpumalanga)

Juice Levubu Atchaar

Dried

Other

1 processor Letsitele 2 processors 3 processors

4 processors

5+ processors

Malelane

Note: Bonanza Juice Processor in Hoedspruit was until recently not operational, but is currently being reopened Source: South African Mango Growers Association; Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 76 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Fruit juice processing Maruleng currently has no significant agri-processing. The need for a juice processor in particular has been identified

Fresh fruit processing, South Africa: 2002 Fresh fruit processing, Limpopo: 2002

520,000 290,000 300,000 500,000 Total Limpopo production 250,000 Total Limpopo production 22000022:: 553322,,000000 MMTT ((5577%% 400,000 200,000 ooff SSAA TToottaall PPrroodduuccttiioonn)) 300,000 150,000 138,000 200,000 200,000 100,000 103,200 60,000 100,000 57,000 50,000 20,000 26,400 20,000 14,000 10,000 0 0 Orange Lemon Mango Tomato Grapefruit Guava Orange Lemon Mango Tomato Grapefruit Guava

Fresh fruit concentrate and pulp exports, South Africa: 2002 250,000 Opportunity exists to establish a juice 208,000 Total SA Concentrate Total SA Concentrate processing plant in Maruleng 200,000 aanndd PPuullpp EExxppoorrttss 22000022:: 389,300 MT 389,300 MT · Offer alternatives to local framers 150,000 · Mitigate high transportation cost to 100,000 82,500 processors located elsewhere in

45,600 Limpopo or outside the province 50,000 40,000 13,200 · Ability to add value to raw products 0 and increase export share Orange Lemon Mango Tomato Grapefruit Source: MOLT Feasibility Assessment 2003 UUP-WRD-Maruleng Profile-311006-IS 77 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Fruit juice processing (continued) Currently there are 13 fruit juice processors in South Africa … only three are located in Limpopo forcing Maruleng farmers to face high transportation costs Only one small fruit juice processor exists in Maruleng … although indications are that the plant is not currently operational

Citrus Non-citrus Processor Location Orange Lemon Grapefruit Guava Mango Tomato Granor Passi (Pty) Ltd Limpopo z z z z z Magaliesberg Citrus Co-operative Ltd Gauteng z z ALG Framing Western Cape z Dickon Hall Products (Pty) Ltd Mpumalanga z Onderberg Verwerkers Co-operative Ltd Mpumalanga z z z Riverside Processors (Pty) Ltd Mpumalanga z z z z z Letaba Citrus Processors (Pty) Ltd Limpopo z z z z z Valor (Pty) Ltd Eastern Cape z z z Nkwaleni Processors KZN z z Langeberg Foods Western Cape z Phalala Farming North-West z Boland Pulp Western Cape z z Bonanza Limpopo* z * In Maruleng (Hoedspruit); KZN = KwaZulu-Natal

Source: MOLT Feasibility Assessment 2003, Monitor interviews UUP-WRD-Maruleng Profile-311006-IS 78 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng The case for vegetable production and processing Opportunity exists to increase vegetable production, especially for export

Vegetable production, South Africa: 2000-2003 Value of sales, vegetables, South Africa: 2002/03

486 475 500 466 481 2,500,000 438 2,240,251 420 400 2,000,000 355 323 335

s 1,500,000 n 300 0 o 0 0 T ’ 214

0 210 195 210 R 0 176 176 1,000,000 0 200 584,913 1 115 101 102 500,000 418,882 100 101,071 64,242 105,968 0 0 s s s s r e n e s t e o g in o h 2000/01 2001/02 2002/03 t io a k rr t a n b p a O m O b m C o a u Tomatoes Onions Cabbages Pumpkins Carrots Other T C P

CChhaalllleennggeess aanndd ooppppoorrttuunniittiieess ffoorr vveeggeettaabbllee pprroodduuccttiioonn Distribution channels for vegetables, South Africa: 2002/03 © Exports, 3% © HHooeeddsspprruuiitt’’ss ccuurrrreenntt vveeggeettaabbllee pprroodduuccttiioonn iiss lliimmiitteedd:: Direct sales, –– EEssttiimmaatteedd 5500 hhaa sshhaaddeedd aanndd 55 hhaa ggrreeeennccllootthh 23% © © MMaaiinn ccrrooppss aarree ttoommaattooeess aanndd ppeeppppeerrss;; ssmmaalllleerr ccrrooppss iinncclluuddee sswweeeettccoorrnn aanndd ggrreeeenn bbeeaannss © Fresh © CCuurrrreenntt ssuuppppllyy iiss oonnllyy ddoommeessttiicc ttoo mmaajjoorr rreettaaiill cchhaaiinnss produce ((PPiicckk ‘‘nn PPaayy iiss tthhee llaarrggeesstt ccuussttoommeerr ffoorr HHooeeddsspprruuiitt))

markets, © © Processing, 60% KKeeyy iinnhhiibbiittoorrss iinncclluuddee wwaatteerr lliimmiittaattiioonnss ((aacccceessss aanndd 14% ccoosstt ooff iirrrriiggaattiioonn)) aass wweellll aass aacccceessss ttoo mmaarrkkeettss © © CCrriittiiccaall ttoo hhaavvee ffiixxeedd pprriiccee ccoonnttrraaccttss rraatthheerr tthhaann ttoo sseellll tthhrroouugghh ffrreesshh pprroodduuccee mmaarrkkeettss ttoo eennssuurree vviiaabbiilliittyy

Source: Department of Agriculture, Monitor interviews UUP-WRD-Maruleng Profile-311006-IS 79 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng The case for vegetable production and processing (continued) Given appropriate investment in infrastructure Maruleng could expand into the export of perishables, especially via airfreight Estimates of perishable airfreight volumes in 2003 MMaajjoorr pprroodduuccttss MMaajjoorr mmaarrkkeettss 35,919 40,000 ··CCuutt fflloowweerrss ··UUKK 35,000 · Europe ± Germany, ··AAvvooccaaddooeess,, mmaannggooss,, · Europe ± Germany, 30,000 FFrraannccee,, HHoolllaanndd,, 25,000 22,777 ggrraappeess,, ppeeaacchheess,, SSwwiittzzeerrllaanndd s

n 20,000 plums, apricots,

o plums, apricots,

T ··UUAAEE aanndd MMiiddddllee EEaasstt 15,000 aapppplleess,, ppeeaarrss aanndd 10,000 6,604 8,241 cciittrruuss ··RReesstt ooff AAffrriiccaa 5,000 · Japan 540 ··EEggggss · Japan 0 ··UUSS aanndd CCaannaaddaa u g e a e l n p g t · Fish u a n a · Fish Z te a t a u C l S w a n a e · Russia r m e · Russia K G e u r st p F · Vegetables (organic a · Vegetables (organic E M aanndd bbaabbyy))

Perishables are products with a limited shelf life that OOppppoorrttuunniittiieess ffoorr aaiirrffrreeiigghhtt

are dependent on temperature and humidity control OOppppoorrttuunniittyy Temperature Occasionally air- Primarily air-freighted ±± GGlloobbaall mmaarrkkeett eessttiimmaatteedd aatt UUSS$$228800 bbiillliioonn freighted ±± EEUU,, UUSS aanndd JJaappaann iimmppoorrttss ggrroowwiinngg aatt 33%% ppaa

<0°C Fish, seafood, meat TTrreennddss 0-2°C Table grapes, kiwi fruit, Berries, litchi, asparagus, ± Increased supply from developing nations peach, plum, cantaloupe peas, sweetcorn, baby ± Increased supply from developing nations vegetables ±± GGrroowwiinngg uussee ooff aaiirrffrreeiigghhtt 2-7°C Avocado, guava, Cranberry, green beans, ±± GGrroowwtthh ooff ddiirreecctt--ttoo--rreettaaiill,, eessppeecciiaalllyy llaarrggee rreettaaiilleerrss iinn watermelon, honeydew lima beans EEuurrooppee aanndd UUSS wwiitthh ssppeecciiaalliisseedd qquuaalliittyy aanndd ttrraacceeaabbiilliittyy melon rreeqquuiirreemmeennttss 7-13°C Mango, papaya, pineapple, Passion fruit, rambutan ±± IInnccrreeaasseedd ddeemmaanndd ffoorr rreeaaddyy--ttoo--eeaatt pprroodduuccttss tomato, squash, marrow ±± GGrroowwiinngg ddeemmaanndd ffoorr oorrggaanniiccaalllyy--ggrroowwnn pprroodduuccee

Source: Dube Trade Port Export fact sheet: Perishables UUP-WRD-Maruleng Profile-311006-IS 80 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng The case for vegetable production and processing (continued) A number of key constraints exist for the expansion of perishable exports

EExxppoorrtt GGrroowwtthh AAiirrffrreeiigghhtt VVoolluummee SSeerrvviiccee CCoonnssttrraaiinnttss MMiinnii ccaassee ssttuuddyy:: KKeennyyaa

CCoonnssttrraaiinnttss CCoonnssttrraaiinnttss KKeennyyaa hhaass ddrraammaattiiccaalllyy ggrroowwnn iittss ffrreesshh ffrruuiitt,, vveeggeettaabblleess aanndd ccuutt ··MMaarrkkeett aacccceessss iinn ··CCoosstt ooff aaiirrffrreeiigghhtt ((44--55 ··EEffffiicciieenntt ccuussttoommss aanndd fflloowweerr eexxppoorrttss ppaarrttiiccuullaarr nnoonn--ttaarriiffff ttiimmeess sseeaa ffrreeiigghhtt)) eexxcciissee ±± FFrruuiitt aanndd vveeggeettaabblleess:: $$2299mm iinn 11999911 ttoo $$116644mm iinn 22000022 bbaarrrriieerrss ··CCuurrrreenntt rreeqquuiirreemmeenntt ttoo ··TTrraacckkiinngg aanndd ±± CCuutt fflloowweerrss:: $$3399mm ttoo $$117755mm · Market intelligence truck to key airports traceablity iinn ssaammee ppeerriioodd

· Market intelligence truck to key airports traceablity Main markets are Europe, in ((mmaaiinnllyy OORRTTaammbboo,, Main markets are Europe, in ··SSkkiillllss ±±mmaarrkkeettiinngg aanndd ··TTeessttiinngg rreeqquuiirreemmeennttss ppaarrttiiccuullaarr tthhee UUKK

JJoohhaannnneessbbuurrgg)) aanndd mmaannaaggeemmeenntt MMoosstt pprroodduuccee iiss aaiirr ffrreeiigghhtteedd

ddoouubbllee--hhaannddlliinngg ··PPaacckkaaggiinngg aanndd vvaalluuee-- SSuucccceessss ffaaccttoorrss ··AAcccceessss ttoo ffiinnaannccee aadddd pprroocceessssiinngg ± External catalysts: foreign ··TTeecchhnnoollooggyy aaddvvaanncceess ± External catalysts: foreign ooppppoorrttuunniittiieess iinnvveessttoorrss aanndd llooccaall iinn sseeaa ffrreeiigghhtt eennttrreepprreenneeuurrss ±± PPoolliittiiccaall ccoommmmiittmmeenntt aanndd ggoovveerrnnmmeenntt ssuuppppoorrtt ±± CCoonnttrraacctt ffaarrmmiinngg ttoo sseeccuurree KKeeyy rreeqquuiirreemmeennttss iinncclluussiioonn ooff ssmmaalll ffrraammeerrss ± Focus on value-adding © ± Focus on value-adding © GGoovveerrnnmmeenntt ssuuppppoorrtt ±± IImmpprroovveedd ccuussttoommss aanndd eexxcciissee ±± CCeerrttiiffiiccaattiioonn aanndd iinnssppeeccttiioonn © © TTrraaddee ppoorrtt // eexxppoorrtt hhuubb // ffaacciilliittyy Key Lesson: Leverage tourism ±± WWeelll llooccaatteedd cclloossee ttoo ppooiinntt ooff pprroodduuccttiioonn sector growth which has ±± AAiirrffrreeiigghhtt ccaappaabbiilliittyy resulted in Nairobi becoming the ±± CCoolldd cchhaaiinn llooggiissttiiccss iinnffrraassttrruuccttuurree main hub in Eastern Africa, © © DDiirreecctt rreettaaiill rreellaattiioonnsshhiippss ((ccoonnttrraaccttss)) resulting in competitive airfreight © © VVaalluuee--aaddddeedd pprroocceessssiinngg costs for vegetables and fruit ±± PPrree--ccuutt ppaacckkaaggeess // ccuutt,, ppeeeelleedd aanndd rreeaaddyy ttoo ccooookk depending on flights, quantities, ±± PPrreeppaarreedd ssaallaaddss,, vveeggeettaabbllee mmiixxeess aanndd ffrruuiitt and time of season.

Source: Dube Trade Port Export fact sheet: Perishables, Okado, M., Lessons of Experience from the Kenya Horticultural Industry UUP-WRD-Maruleng Profile-311006-IS 81 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Sugar cane Industry conditions are currently strong for sugar production, and the price of raw sugar has grown sharply with oil prices (sugar is used to make ethanol, an oil substitute) South African sugar cane production: 1 World raw sugar price: 2002-2006 1995-2005 20 30 CAGR 2002-2006: 27.2% 16.5 CAGR 1995-2005: 2.5% d

n 22.2 u 15 21.2 21.2 21.3 o 20.4 ) 19.1 P

M 20 r M e 16.7 (

P 9.3

10 8.6 s s e t n n n e 6.3 5.9 o C

10 T

S 5 U

0 0 2002 2003 2004 2005 2006 1995 1997 1999 2001 2003 2004 20053

World oil prices (World Trade Index): 1998-20062 Perspectives on demand and opportunity 80 72.2 CAGR 1998-2006: 22.3% “Ethanol is the increasingly popular fuel substitute that can be mixed with 56.5 gasoline to power cars. As oil prices go higher, traders believe, demand 60 for ethanol – and sugar – could soar” l e r r 41.8 ± Alternative Fuels Data Centre a B

40 r 31.1 e 25.9 “The EU has agreed to cut subsidies offered to European sugar farmers by P 36%; the EU had been paying Europe’s sugar producers three times the $ 19.2 20 14.4 world price… speculation that sugar will increasingly be used for fuel rather than food has driven futures prices to their highest levels in a quarter century” 0 3 ± BBC News Online 1998 1999 2001 2003 2004 2005 2006 Note: 1Prices measured in January 2006; 2Ethanol is a substitute for oil and, therefore, its price is positively correlated with oil prices; 3Preliminary figures Source: Department of Agriculture: Abstract of Agricultural Statistics, 2006; Illovo World of Sugar Sugar Statistics, 2006; International Energy Agency (IEA): Economist Intelligence Unit UUP-WRD-Maruleng Profile-311006-IS 82 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Illu stra Sugar cane for bio-fuel tive Based on conservative blending targets, there is currently insufficient feedstock in South Africa to meet bio-fuel production requirements

Ethanol: Crop Production Ethanol: Crop production Biodiesel: Crop production vs E10 Blending Target vs E10 blending target vs B5 blending target 10 20 2.0 18,610,834 tonnes 9,000,000 tons Crop Production Crop Production Crop Production Required Required 1,696,036 tonnes Required 8 Crop Production Crop Production Crop Production 15 in 2003 1.5 in 2003 in 2003 ) s n ) )

6 o s s s s i l n n e e l i o n o n i i l l n n M l l i i ( o o 10 1.0

s M T M T ( (

n 4,079,403 tons o

T 4

5 0.5 2 2,419,000 tonnes 220,000 tonnes

0 0 0.0 Maize Production Maize Required Sugarcane Sugarcane Soybean Soybean Required Production Required Production

TToo aacchhiieevvee ccoonnsseerrvvaattiivvee bbiioo--ffuueell ttaarrggeettss wwiillll rreeqquuiirree eeiitthheerr aa ssiiggnniiffiiccaanntt pprrooppoorrttiioonn ooff eexxiissttiinngg pprroodduuccttiioonn ((aa rriisskk ttoo ffoooodd sseeccuurriittyy)) oorr ssiiggnniiffiiccaanntt aaddddiittiioonnaall ccuullttiivvaattiioonn

Source: Department of Agriculture, Department of Trade and Industry, Monitor analysis, US Department of Agriculture, International Energy Agency (ITEA) UUP-WRD-Maruleng Profile-311006-IS 83 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Target markets Target markets for Maruleng’s agricultural products can be examined along two dimensions, geography and customers, and in terms of existing markets and potential markets

TTaarrggeett mmaarrkkeettss

GGeeooggrraapphhiicc CCuussttoommeerr

EExxiissttiinngg PPootteennttiiaall EExxiissttiinngg PPootteennttiiaall

UUP-WRD-Maruleng Profile-311006-IS 84 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Target markets – Geographic Currently, the bulk of agricultural produce is exported or supplied to other major metropolitan centres in South Africa

EExxiissttiinngg PPootteennttiiaall

Community and shoppers in local Increased local agri-processing especially in markets relation to mango and citrus such as juice Local

Local Limited agri-processing within node ± ((iinnttrraa--nnooddee)) some mango drying and atchaar production

Citrus, mango and litchi are sold Limited potential to extend supply of fruit to outside the area mainly via fresh local market

produce markets in major urban National Significant potential to increase specialist National centres (extra-node) vegetable production for retail distribution

(extra-node) Vegetables (e.g. red and green peppers) are supplied to major retail chains

Significant export of citrus fruit Significant potential to expand international market Mango export market has collapsed through processed and organic products

Very limited export of processed International market for vegetables and specialist IInntteerrnnaattiioonnaall products produce exists ± Eastgate Airport could be utilised No export of vegetables as an export port

Source: Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 85 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Target markets – Customer Currently, the bulk of agricultural produce is exported or supplied to local and international contract customers (mostly retail chains)

EExxiissttiinngg PPootteennttiiaall

Limited supply to local businesses and LLooccaall aanndd ffrreesshh re-sellers pprroodduuccee mmaarrkkeettss Supply produce is supplied to fresh produce markets in the major centres

Citrus, mango and vegetables are Potential to increase contracts with major local NNaattiioonnaall supplied to large retail chains such as food chains, especially in respect of ((ccoonnttrraaccttss)) Woolworths, Fruit and Veg City and vegetables Pick `n Pay on contract The establishment of a local agri-processor would also offer an additional customer

Export contracts are typically with Potential to increase exports of time-sensitive EExxppoorrtt international food retail chains and produce if logistics such as air-freight can be ((ccoonnttrraaccttss)) processors, primarily in Europe resolved. Customers would be major food retail stores in Europe

Source: Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 86 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Target markets – South Africa The bulk of Maruleng’s agricultural production is exported via Durban, Cape Town and Maputo. Domestic sales occur primarily via fresh produce markets or through contracts with major food retail stores Major fresh produce markets Distribution of national fresh produce sales by major market: 2005

Maruleng 35%

Polokwane Pretoria 17%

Pretoria Cape Town 12% Nelspruit Johannesburg Witbank Springs Maputo Durban 10% Klerksdorp Vereeniging Springs 4% Welkom Kimberley Pietermaritzburg Pietermaritzburg 3% Bloemfontein Durban Bloemfontein 3%

Kei Port Elizabeth 3%

Uitenhage East London 3% Cape Town East London George Port Elizabeth Others1 10%

0% 10% 20% 30% 40% 50% Share of National Turnover Note: 1The category Others includes Kimberley, Welkom, Klerksdorp, Vereeniging, Uitenhage, Witbank, Nelspruit, , Mpumalanga, Kei and George Source: Department of Agriculture UUP-WRD-Maruleng Profile-311006-IS 87 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Fruit juice processing – customers A significant domestic market exists for processed fruit products with a number of applications

Products Key local customers Customers’ product

Peel oils Teubes Flavourants

Mango concentrate SAB Miller Fruit drink

Orange nectar Clover-Danone Fruit drink

Yoghurt fill Parmalat SA Fruit yoghurt

Peel pellets Limpopo Livestock Beef

Pulp nugget Tiger Brands Breakfast cereal

Orange concentrate Bromor Foods Tropical fruit punch

Tomato puree Sea Harvest Canned fish

Source: MOLT Feasibility Assessment 2003 UUP-WRD-Maruleng Profile-311006-IS 88 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Fruit juice processing – Demand conditions While the demand for fruit, both globally and locally is slowing, processed fruit continues to show reasonable annual growth

Estimated concentrate and puree demand: 2005 International lead producer countries: 2005

Annual Annual Tonnage Brazil Regional Demand Orange 1,316,000 Growth Demand Increase 30,800

33,948 Argentina Global Lemon 10,218,263 2.25 2,280 (incl. SA) 3,039 % Mango 1,063,600 India 8,500 USA (California) Tomato 1,455,470 30,000 South 520,000 3.5% 229,910 163,799 Africa USA (Florida) Grapefruit 11,242

Guava 578,000 8,000 India 0 5,000,000 10,000,000 Tonnes 0 500,000 1,000,000 1,500,000 European fruit juice / nectar consumption: 1995-2000 Global Lead Producer South Africa 9,200 9,104 8,951 9,000 z 8,769 z GGlloobbaall ttrreenndd ttoowwaarrddss ccoonnssuummppttiioonn ooff ffrruuiitt s 8,800 e r

t iinn ssoommee pprroocceesssseedd ffoorrmm i 8,541 l

8,600 n - Easily transportable o - Easily transportable i 8,315 l 8,400 l 8,270 i -

M Longer shelf life 8,200 - Longer shelf life - 8,000 - CCoonnssuummeerr ccoonnvveenniieenntt z 7,800 z KKeeyy ffrruuiitt pprroocceesssseedd:: oorraannggee,, lleemmoonn,, 1995 1996 1997 1998 1999 2000 ggrraappeeffrruuiitt,, ttoommaattoo,, mmaannggoo,, gguuaavvaa Source: MOLT Feasibility Assessment 2003 UUP-WRD-Maruleng Profile-311006-IS 89 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Potential for employment The area should focus on increasing its production of fruit and vegetables as these products are labour intensive and, therefore, have high potential for employment creation

1 Labour intensity (number of employees / ha) Direct labour multiplier Rank Product Value

LLiivveessttoocckk,, ffrruuiitt Rank Product Value 1 Viticulture 48.6 aanndd vveeggeettaabblleess

Cattle and calves rraannkk aammoonngg tthhee 2 Deciduous and other fruit 47.07 VVeeggeettaabblleess,, slaughtered mmoosstt llaabboouurr-- 3 Cotton 39.93 ffoorreessttrryy Citrus fruit products and Deciduous and other fruit iinntteennssiivvee 4 Vegetables 38.86 products and Eggs citrus fruit have aaggrriiccuullttuurraall 5 Tobacco 26.5 citrus fruit have Milk pprroodduuccttss hhiigghh ddiirreecctt Pigs slaughtered 6 Forestry 22.68 labour 1 Potatoes High labour 7 Citrus fruit 22.26 multipliers Poultry meat Maruleng is multipliers

Maruleng is Sheep and goats 8 Sugar cane 19.99 HHiigghh rraannkkiinngg slaughtered wweellll ssuuiitteedd ttoo 9 Subtropical fruit 17.54 products Subtropical fruit pprroodduuccee ccrrooppss products Viticulture aanndd cceerrttaaiinn 10 Poultry meat 14.43 ggeenneerraattee mmoorree Vegetables jobs in the vveeggeettaabblleess oonn aa 11 Eggs 14.43 jobs in the Wool eeccoonnoommyy ffoorr llaarrggee ssccaallee 12 Sunflower seed 12.98 Cotton eevveerryy uunniitt ooff 13 Soya beans 12.98

Tobacco output 2 Medium output Forestry products NNoottee tthhaatt ssuuggaarr 14 Groundnuts 12.98 Sugar cane ccaannee,, mmaaiizzee 15 Potatoes 11.1 aanndd ootthheerr Barley 16 Milk 9.61 Grain sorghum ggrraaiinnss hhaavvee Cattle and calves Groundnuts oonnllyy llooww ttoo 17 8.59 Bold and italicised Oats slaughtered mmeeddiiuumm products are 3 Maize Low Sheep and goats potential for 18 8.59 Rye potential for slaughtered currently, or could Soya beans eemmppllooyymmeenntt 19 Pigs slaughtered 8.59 be, produced in Sunflower seed Maruleng Wheat 20 Wool 8.59 Note: 1 Labour multiplier = Employment/ Production Source: Department of Agriculture, Expert Interviews, Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 90 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Ina Stranded project – Atchaar factory (The Oaks) deq uat e bu Incomplete Atchaar factory plan sine ning ss Concept Data and commentary

Description Initiated by the Bohlabela District Municipality, the plan was to Picture 1 establish a factory to produce atchaar ± a curried condiment made from mangos Mangos are both in plentiful supply in Maruleng and also grown by many households in their backyards There is currently only one atchaar factory in Blyde and research indicates that there is some demand for the product

Project cost Not known, but estimated to be about R1.5 to R2 million

Employment Not available

Reason for Construction was completed but never started operations due delay to lack of funding to purchase equipment No business or marketing plan

Picture 2 Current status Maruleng and Bushbuckridge Economic Development Initiative (MABEDI) have been requested to do a feasibility study to determine future use for the facility and / or the atchaar factory

Contact details Maruleng Municipality, Tel. 015 793 2409 / 2237

Local supply of mangos

Source: Maruleng LED Manager, site visit UUP-WRD-Maruleng Profile-311006-IS 91 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Stranded projects Many projects fail in the early stages of the start-up process, as land claims and fighting among stakeholders halts planning

IIddeeaa BBuussiinneessss ppllaann FFuunnddiinngg IImmpplleemmeennttaattiioonn

RReeaassoonnss ffoorr ffaaiilluurree

DDeellaayyeedd llaanndd ccllaaiimmss pprroocceesssseess

DDiiffffeerreenntt ccllaaiimmaannttss llaayy ccllaaiimm ttoo tthhee ssaammee ppaarrcceellss ooff llaanndd ±± CCoonnfflliicctt eexxiissttss bbeettwweeeenn ttrriibbaall aauutthhoorriittiieess wwhhoo mmaannaaggee eessttaatteess aanndd ccoommmmuunniittiieess

NNoobbooddyy iiss wwiilllliinngg ttoo ddeevveelloopp ooppeerraattiioonnss iinn aa cclliimmaattee ooff uunncceerrttaaiinnttyy,, rreessuullttiinngg iinn llaanndd llyyiinngg uunnuusseedd aanndd bbeeiinngg vvaannddaalliisseedd

NNeeww ffaarrmm oowwnneerrss oofftteenn llaacckk ooff sskkiillllss aanndd ccaappaacciittyy iinn rreessppeecctt ooff bbootthh aaggrriiccuullttuurree aanndd bbuussiinneessss

WWhhiillee nneeww ffaarrmmss aarree oofftteenn ddeebbtt--ffrreeee,, aacccceessss ttoo ooppeerraattiinngg ccaappiittaall rreemmaaiinnss aa kkeeyy ccoonnssttrraaiinntt

Source: Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 92 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Project assistance: MABEDI initiative MABEDI is assisting in moving a number of land restitution agricultural projects Project Description Project Aim Name

Makhutswi Support to a land restitution project in MABEDI is assisting by: CPA Trichardtsdal ± Supporting and capacitating the A cluster of 13 farms bought by the Restitution Makhutswi CPA in respect of governance, Commissioner in June 2005 for R63 million management and technical skills Two commercial farmers have been ± An application for R885,504 has been appointed as strategic partners in a Joint submitted to the Limpopo EU LED fund for Venture with the Makhutswi Community capacity building support and institutional Property Association (CPA) development Individual black farmers have been allocated four farm portions of the restituted land

Moletele Support to a land restitution project in MABEDI is assisting by: Hoedspruit ± Providing support and capacity to the CPA A cluster of 26 farms valued at R80 million in respect of governance, management was purchased by the Regional Land Claims and technical skills Commission (RLCC) in September 2006 ± Securing an application for R566,000 MABEDI has signed a co-operation from the Limpopo EU LED fund for Memorandum of Understanding (MOU) with planning, institutional strengthening and the Moletele CPA capacity building.

Source: Technoserv UUP-WRD-Maruleng Profile-311006-IS 93 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Barriers and potential solutions

Barrier / constraint Potential solution

Access to markets Develop co-operative thinking ± Demand is outside the node, at a distance (and ± Increased scale derived from pooling operations cost) to producers: key produce markets and will ease negotiations with potential customers, processors are in Tzaneen, Nelspruit and reduce logistics costs and decrease input costs Johannesburg ± Introduction of increased agri-processing in the ± Smaller farmers and emerging farmers have node limited resources and knowledge to access key ± Potential exists to utilise Eastgate Airport more markets effectively

Access to resources Develop co-operative thinking ± Collateral and scale of operations inhibit smaller ± Co-operatives pool resources and output, resulting local farmers accessing finance in better access to finance and markets ± Lack of farming and management expertise further ± Partner experienced private sector partners with inhibits access new / emerging farmers ± Costs of commercial irrigation are high, especially ± Identify new crops or new markets that require less for emerging / new farmers expensive inputs

Access to water Upgrade irrigation systems ± While overall water resources are good, access is ± Develop a water plan, including water allocations, uneven across areas of the node that are tied to farm hand-overs in the case of ± Small emerging farmers do not have access to restitutions irrigation systems and cannot afford to participate ± Granting of water rights should be reconsidered, in private schemes taking into account developmental needs

Source: Monitor interviews; Monitor analysis; Limpopo Department of Agriculture UUP-WRD-Maruleng Profile-311006-IS 94 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Barriers and potential solutions (continued)

Barrier / constraint Potential solution

Lack of technical and management skills Provide training and mentorship ± New farm owners do not have the requisite ± Formal transfer of skills and training programmes, agricultural and business skills to profitably both technical- and management-oriented, would manage the farms enable and make activities sustainable ± Training needs to occur both for immediately required skills (farming), and secondary skills, like irrigation system maintenance ± Partnerships with existing / displaced commercial farmers are critical

Land issues Fast track land claims process and information ± External investors are hesitant to invest in ± Engage with tribal authorities to ensure that written uncertain environments agreements exist ± Verbal agreements between tribal authorities and ± Reassess how the tribal authority system can individuals lead to problems in the long term guide settlement patterns and develop settlement ± Uncontrolled / unmanaged private sector plans development, in particular residential game Prioritisation of projects estates ± Expedite projects where land claims have been settled ± This will also encourage chiefs to speedily resolve other land claims Spatial development plan ± A spatial development plan must be developed to guide planning and zoning

Source: Monitor interviews; Limpopo Department of Agriculture UUP-WRD-Maruleng Profile-311006-IS 95 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Agriculture Maruleng Summary – Key next steps and potential for agriculture

PPrriioorriittiisseeddnneexxtt sstteeppss PPootteennttiiaall ffoorr tthhee sseeccttoorr

11z Complete land audit and analysis of Overall potential, given the existing significant potential agricultural sectors to be pursued contribution the area makes to national agricultural production, is significant ± Ensure only viable sectors are pursued

± Ensure that high value / potential agriculture (e.g. In respect of emerging / subsistence farmers a vegetable farming) is pursued a co-ordinated approach can ensure that agriculture development will exceed current 2z Set up required structures and 2 targets of food security and self-sufficiency infrastructure to support plans and move into value surplus generation ± Ensure adequate logistics, skills, land and water are available; potentially intervene where this is not Only by pooling production and encouraging the case (e.g. construct irrigation systems) co-operatives can skills be transferred efficiently and markets be accessed z 33 Start farming co-operatives, including enterprise start-up assistance This in turn will allow sufficient scale for the ± Provide required infrastructure, resources (e.g. medium-term development of agri-processing netting for tomato greenhouses) and access to industries within the node

suppliers / customers Such an approach leaves room for projects ± Utilise private partner approach more extensively where small contributions by each member of the greater community generate sufficient z Monitor, mentor and improve 44 pooled scale for commercial marketing ± Assist co-operatives in marketing their produce ± Intervene when co-operatives threaten to fail ± Ensure processes and production remain efficient Source: Monitor interviews UUP-WRD-Maruleng Profile-311006-IS 96 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sectors: Agriculture Maruleng Key contacts

Name Position / organisation Reason to contact

Tukisetso Acting Manager: Spatial Maruleng is responsible for previous district agricultural (Nelson) Kopele Planning and Economic projects including The Oaks and The Willows ± two large Development restituted farms

Deon Nkoane LED Manager, Mopani Responsible for LED initiatives including agriculture in the District Municipality larger Mopani District area Critical to ensuring alignment of local to district and national plans

Lazarus Lepako Manager Restitution Systems Responsible for managing interventions in respect of land and Support, Department of restitution, in particular securing private sector partners Agriculture

Morotah Diphela Regional Manager, Overall accountable official for Maruleng agriculture Department of Agriculture Particular focus on emerging and subsistence farmer initiatives

Amos Shiburi Trade and Investment Responsible for Maruleng region Limpopo Currently engaged with two large projects ± Juice Processing Plant and Sugar Cane Ethanol Bio-Fuels initiative for Maruleng

Emile De Kock MABEDI (Maruleng / Responsible for MABEDI agricultural initiatives in Maruleng Bushbuckridge Economic Development Initiative)

Pieter Scholtz Blydevallei Sitrus and Key player in agricultural sector Mangoes / Vice-chair of SA Head of Blydevallei irrigation project CGA Current driver of bio-fuels project

UUP-WRD-Maruleng Profile-311006-IS 97 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Maruleng poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Agriculture Description of current value chain ± Selected sector: Tourism Growth constraints and solutions Potential for sector z Investment opportunities

z Summary

z Appendix

UUP-WRD-Maruleng Profile-311006-IS 98 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Pictorial overview

Restaurant facilities at the Hoedspruit Makwakwa Curios – selling “Monkey Hoedspruit Endangered Species Centre Wildlife Estate Centre Balls”

Kapama 5-Star Lodge SA Airlink plane at Eastgate Entrance to Maruleng – Airport main area signboard

UUP-WRD-Maruleng Profile-311006-IS 99 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Overview of the tourism sector

IInnppuutt PPrroodduuccttiioonn TTaarrggeett mmaarrkkeettss

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

Maruleng is wedged Maruleng is key player in the The target market for between some of regional tourism value chain: tourism in Maruleng would Limpopo's prime tourist Hoedspruit is the main service be primarily international attractions, including the centre for most private game tourists who pass through , lodges in the Kruger and neighbouring reserves to the wildlife areas in the

Timbavati Private Reserve Trade: arts and crafts, restaurants east

and the Blyde River and service stations along the Opportunities exist to Canyon access routes of the wildlife areas increase international

of the east

Significant tourism-related Accommodation: Lodges and tourist traffic, but also to activities exist as well as guest houses along the access target increased domestic numerous private lodges routes of the wildlife areas of the tourism activity and guest houses east

The current trend towards An existing airport with Adventure tourism activities in the Blyde River Canyon residential estates on game

significant potential to The Eastgate Airport utilised by farms could be harnessed increase tourist traffic and the private lodges to ferry tourists to increase access to the establish the area as a from other major centres domestic tourism market gateway to the Kruger and surrounding areas

Source: Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 100 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Inputs – Existing tourist attractions in Maruleng Maruleng’s tourism assets are located in two key zones

R526 R40 R36 Zone 2 Eco-tourism centred Ofcolaco Mica on game lodges in Trichardtsdal the private game R526 reserves and the Metz Kruger Park Diphuti 2 R527 GaMametsa Hoedspruit Key attractions Ka1mpersrus R531 Game reserves Cultural tourism Klaserie

Predominantly foreign tourism Zone 1 Key attractions Eco- and adventure Water-based tourism tourism centred on Hiking / views the Blyde River Canyon Predominantly domestic tourism Source: Monitor interviews

UUP-WRD-Maruleng Profile-311006-IS 101 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Inputs: Kruger to Canyons Biosphere Reserve Most of Maruleng falls into the Kruger to Canyons Biosphere Reserve, which in its totality is a major tourist attraction z In 2001, the Kruger to Canyons (K2C) Biosphere Reserve was registered with UNESCO z Biosphere reserves are designated regions where internationally important ecosystems and protected areas lie adjacent to human settlements z They are established to promote solutions to reconcile the conservation of biodiversity and its sustainable use z K2C is at the interface of the Eastern Escarpment and the Central Lowveld, covering three biomes (savannah woodlands, afromontane forests and montane grasslands) z These protected and resource areas are approximately 4.8 million ha in extent, including the trans-frontier and escarpment protected areas z In the transition zone more than 1.5 million people reside on communal land Maruleng z Limpopo LED has approved funding of R2.9 million for the establishment of a biosphere nodal centre

As Maruleng falls into a tourism area that exceeds its borders, a holistic view should be taken, and attractions both around and inside the node be considered Source: Kruger2Canyons website, Monitor interviews, Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 102 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Production – Tourist attractions and facilities in Maruleng

R526 R40 R36

Estimated 2,814 beds in 70 Ofcolaco Mica

lodges, 10 guest houses and 10 Trichardtsdal AAccccoommmmooddaattiioonn R526 resorts in Maruleng Metz Diphuti R527 GaMametsa Hoedspruit

Ka1mpersrus

Area falls within Limpopo Tourism's R531 ªValley of the Oliphantsº tourism route Klaserie Blyde River Canyon ± Bird watching (globally recognised and important bird area) ± Adventure tourism including hiking, white water rafting, abseiling, hot air ballooning ± Centre of the Kruger to Canyons Biosphere Attractions Blyde River Canyon Attractions Drakensberg Mountain Range ± Rock climbing ± Hiking ± Mariepskop (scenic mountain view) R527 Route ± Khamai Reptile Park ± Bombyx Mori Silk Farm Moholoholo Animal Rehabilitation Centre

Abseiling Hot air ballooning Source: Mopani LED Strategy 2006, Monitor interviews UUP-WRD-Maruleng Profile-311006-IS 103 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Production – Tourist attractions and facilities in Maruleng (continued)

R526 R40 R36 Estimated 2,814 beds in 70 lodges, 10 Ofcolaco Mica Trichardtsdal Accommodation guest houses and 10 resorts in R526 Accommodation Metz Maruleng Diphuti R527 2 Estimated 70% to 80% of Lowveld GaMametsa Hoedspruit

Kampersrus luxury lodges R531

Major private game reserves and Klaserie 5-star luxury lodges ± Thornybush and Kapama ± Timbavati (home of the white lions) ± Klaserie ± Babule and Oliphants Lodges offer a unique experience in respect of game viewing, luxury accommodation and cuisine

Attractions Attractions Access is typically via Eastgate Airport bypassing Hoedspruit and other attractions Hoedspruit Endangered Species Centre Concentration of private reserves and 5-star lodges ± World-famous cheetah breeding centre Klaserie Dam Main road to the Kruger Park Orpen Gate (R531)

Source: Monitor interviews UUP-WRD-Maruleng Profile-311006-IS 104 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Production – Benefits of driving tourism for other sectors Both the retail and agriculture sectors will be positively affected if tourism potential is better captured in Maruleng, as additional demand will increase production in those sectors, both of which are large employers in the area

TToouurriissmm sseeccttoorr + grows ggrroowwss + Income Generation + + AAggrriiccuullttuurraall sector + Demand for + sector ddeevveellooppmmeenntt Investment Projects Domestic Demand Goods and Services + + Tourist sector RReettaaiill // sseerrvviicceess + Demand for Goods sseeccttoorr ddeevveellooppmmeenntt + + + Demand for Produce

From an economic development perspective, the agriculture and retail sectors should also be seen as part of the production value chain step of the tourism sector Source: Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 105 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Target markets for Maruleng tourism: Domestic visitors

Domestic visitors are likely to be attracted to three of the four attraction clusters

RRaattiioonnaallee TTyyppee ooff vviissiitt RReeqquuiirreemmeennttss

D Multi-day Water-based Aventura-type resorts and sports-based Water-based D Infrastructure for sports tourism activities are likely to appeal to Day visits tourism domestic travellers D Full service Hotel and conference ((BBllyyddee RRiivveerr D

Self-catering facilities CCaannyyoonn)) Facilities could be used for conferences

D Multi-day Trails HHiikkiinngg // vviieewwss D

Domestic tourists are likely to make Day visits Accommodation ((BBllyyddee RRiivveerr use of multi-day hiking opportunities

Full service CCaannyyoonn)) D Self-catering View points

Lodges and budget Scope exists to attract additional D Multi-day accommodation Game domestic tourism to the game Day visits Game reserves on a more affordable basis D Game park infrastructure rreesseerrvveess Full service Current residential estates are likely D Self-catering and services, e.g. trails, to boost this segment guides

Multi-day Domestic tourists will only be a D Day visits Cultural Cultural limited target group for cultural N/A ttoouurriissmm Full service tourism Self-catering

Source: Monitor interviews/Analysis

UUP-WRD-Maruleng Profile-311006-IS 106 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Target markets – Domestic visitors Taking into consideration current domestic tourism trends to Limpopo, Maruleng should develop its attractions accordingly

Average length of stay, domestic tourists: 2005 AAccttiioonn rreelleevvaanntt ppooiinnttss 6 4.8 zz The main reason for visiting Limpopo is to see 5 The main reason for visiting Limpopo is to see 3.9 ffrriieennddss aanndd ffaammiillyy 4 z s z Few South Africans visit Limpopo purely as a y 3 Few South Africans visit Limpopo purely as a a

D hhoolliiddaayy ddeessttiinnaattiioonn 2 zz Wildlife activities are the least popular activity 1 Wildlife activities are the least popular activity ffoorr ddoommeessttiicc ttoouurriissttss ±±tthhiiss ppoosseess ccoonnssiiddeerraabbllee 0 cchhaalllleennggeess ttoo ggrroowwiinngg tthhiiss sseeggmmeenntt SA Limpopo zz LLiimmppooppooiiss oonnee ooff tthhee ssmmaalllleesstt eeaarrnneerrss ffrroomm ddoommeessttiicc ttoouurriissmm ((iinn 66tthh ppllaaccee)) Purpose of visit, domestic tourists: 2005 80% 70% zz On a national basis, the highest spend per day

s On a national basis, the highest spend per day t 70% 65% s i r aanndd,, tthheerreeffoorree,, ppootteennttiiaallllyy tthhee mmoosstt lluuccrraattiivvee u 60% National o

T tourists segments are medical and holiday 50% Limpopo tourists segments are medical and holiday c i t

s 40% ttoouurriissmm e m

o 30% D

17% f 20% o 12%11% 11% 6% % 5% 10% 2% 1% 0% Focus on holiday and business visitors (high VFR Business Holiday Religious Medical levels of spend) Note: VFR stands for Visiting Friends and Relatives Source: Monitor analysis, South African Tourism UUP-WRD-Maruleng Profile-311006-IS 107 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Target markets for Maruleng tourism: International visitors International tourists would offer mostly potential for short stay and full service tourist attractions focused on game viewing and cultural tourism activities

RRaattiioonnaallee TTyyppee ooff vviissiitt RReeqquuiirreemmeennttss

Multi-day Day visitor facilities, e.g. WWaatteerr--bbaasseedd D There is some potential to attract Day visits restaurants, rest stop ttoouurriissmm international tourism to the Blyde River D Full service ((BBllyyddee RRiivveerr Canyon Self-catering Unique activities / views (e.g. CCaannyyoonn)) bird watching)

Hiking / views There is some potential to attract Multi-day View points, restaurants, HHiikkiinngg // vviieewwss D Day visits international tourism to the Blyde added attractions like arts ((BBllyyddee RRiivveerr D River Canyon) Full service and crafts, cultural CCaannyyoonn)) Self-catering

Lodges but also less Already a key market, but scope D Multi-day exists to expand, in particular expensive accommodation Game Day visits Game bringing in larger charter tours Game park infrastructure reserves D Full service reserves Utilise Eastgate Airport more and services , e.g. trails, effectively Self-catering guides

Tourist route

International tourists visiting other Multi-day D Information materials CCuullttuurraall attractions will be the prime target Day visits

ttoouurriissmm group, especially when visiting the D Full service Cultural villages, area as part of a packaged tour Self-catering infrastructure for performances, etc.

Source: Monitor interviews UUP-WRD-Maruleng Profile-311006-IS 108 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Target markets – International The node sees significant international tourists; however, most transfer directly to the private lodges and the Kruger Park

Provincial distribution of international Origin of international tourists visiting tourists: 2005 Limpopo: Q4 2004 100%

Gauteng 49% l 76.4% Most foreign visitors to a 80%

n Limpopo come from o i t

s neighbouring Zimbabwe t a 60% s n

Western i

22% r r e u Cape t o n I

T 40%

f o 22% 17.1%

KZN % 20% 3.8% 2.5% 0.2% 15% 0% Mpumalanga Africa Europe Americas Asia & Middle East Australasia 9% Free State Attractions visited in Limpopo: Q4 2004 100% North West 8%

l Kruger Park is the single

a 80%

n most popular destination in o

8% i E. Cape t s the province

t 60% a 48% s

n 44% i r r e u t 40% o

n 27%

7% I

Limpopo T 19% f

Limpopo draws just 7% o 20% 9%

of international tourists % Northern Cape 3% visiting SA 0% Private Kruger Craft None Other 0% 20% 40% 60% Game Park Markets Reserves Key Maruleng % of International Tourists attractions

Source: South Africa Tourism, Quarterly Limpopo Report, Q4 2004; South Africa Tourism, Annual Report, 2005 UUP-WRD-Maruleng Profile-311006-IS 109 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng I Stranded project – Sepeke Cultural Village in The Oaks na de qu Entrance to Sepeke Cultural Village at p e lan bu n si ing ne ss Concept Data and commentary

Picture 1 Description The plan is to develop a traditional Pedi Village near The Oaks residential area Offer a Pedi cultural experience, including sleeping in traditional huts Facilities built include additional fully furnished tented accommodation, a small conference-type venue and function facilities (e.g. outdoor boma)

Project cost R1.463 million

Employment Twenty direct jobs

Reason for Although construction is complete, operations have never delay been started due to lack of funding and any clear business plan Also appears to be misplaced given the main tourism routes Picture 2 Current status Maruleng has identified a strategic partner who will lease the facility and run it on commercial terms

Contact details Maruleng Municipality, Tel. 015 793 2409 / 2237

Traditional Pedi Huts

Source: Maruleng LED Manager, site visit UUP-WRD-Maruleng Profile-311006-IS 110 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Selected projects Many projects fail in the early stages of the start-up process due to poorly conceived ideas, inadequate research and planning, reflected in weak business plans

IIddeeaa BBuussiinneessss ppllaann FFuunnddiinngg IImmpplleemmeennttaattiioonn

RReeaassoonnss ffoorr ffaaiilluurree   PPoooorrllyy ccoonncceeiivveedd iiddeeaass tthhaatt aarree nnoott bbaasseedd oonn ssoouunndd rreesseeaarrcchh aanndd ddaattaa   WWeeaakk bbuussiinneessss ppllaannss wwiitthh iinnaaddeeqquuaattee aatttteennttiioonn ttoo ffiinnaanncciiaall vviiaabbiilliittyy aanndd ssuussttaaiinnaabbiilliittyy   LLiimmiitteedd eexxppeerrttiissee aanndd bbuussiinneessss kknnoowwlleeddggee aammoonngg pprroojjeecctt bbeenneeffiicciiaarriieess   CCoonnfflliicctt aanndd llaacckk ooff aaggrreeeedd ddiirreeccttiioonn aammoonngg ccoommmmuunniittyy bbeenneeffiicciiaarriieess   PPoooorrllyy llooccaatteedd pprroojjeeccttss tthhaatt aarree uunnaabbllee ttoo aacccceessss ppaassssiinngg ttoouurriissmm aaccttiivviittyy oorr bbeenneeffiitt ffrroomm ttrraaffffiicc ttoo aanndd ffrroomm ootthheerr kkeeyy ddeessttiinnaattiioonnss ssuucchh aass tthhee KKrruuggeerr PPaarrkk oorr BBllyyddee RRiivveerr CCaannyyoonn

Source: Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 111 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Summary – Key next steps and potential for tourism

PPrriioorriittiisseedd nneexxtt sstteeppss PPootteennttiiaall ffoorr tthhee sseeccttoorr

11z Create / determine organisational  Immediate employment creation in guest responsibilities houses, restaurants and tourist facilities ± Provincial tourism authority ± However, it must be noted that game ± District tourism office lodges and residential game estates are ± Municipal tourism office not significant employers

 Indirect employment creation through increased demand for agricultural products z Develop tourism strategy 22 and retail services ± potentially a strong ± Which customers to cater for multiplier effect ± Which attractions to develop  Significant potential exists to increase the ± What infrastructure to develop number of international visitors to the area. The completion of an airport upgrade with an 3z3 Implement international licence would enable larger charter tours ± Ensure integration of activities among each other

and integration into offering of other areas  Additional potential exists to offer a more ± Plans to develop the Eastgate Airport exclusive game lodge experience to South ± Plans to establish a Maruleng Tourism Information African tourists through the development of Centre more moderately priced establishments ± An international marketing strategy once airport upgrade is complete ± The Kruger to Canyons Biosphere initiatives Source: Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 112 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sector: Tourism Maruleng Barriers and potential solutions

Barrier / constraint Potential solution

 Lack of administrative capacity  Clear institutional responsibilities ± At present no clear government authority appears ± An effective institutional arrangement to be responsible for tourism accountable for tourism in the Maruleng area ± Existing departments and agencies do not appear needs to be agreed to effectively co-operate ± Maruleng is yet to be effectively integrated into the Mopani District and Limpopo tourism strategy

 Lack of integrated tourist offering  Develop a tourism strategy ± Although a number of small operators and ± An integrated tourism strategy for Maruleng that tourism ventures exist in the area there is no co- aligns to Mopani District and Limpopo Province ordinated effort or central information point needs to be developed ± More effective marketing of the Kruger to Canyons Biosphere

 Tourists stop at major attractions outside the area  Co-operate across areas ± Maruleng (specifically Hoedspruit) is surrounded ± Improved co-operation and co-ordination across by some of SA's prime tourist attractions tourist activities / destinations is required including a number of exclusive private lodges,  Develop and expand Hoedspruit Airport the Blyde River Canyon and Kruger National Park ± More effectively utilise the airport as key gateway

± Currently visitors to the lodges in particular utilise  Improved regional marketing Hoedspruit airport for short duration stays and bypass Hoedspruit and the rest of Maruleng ± Improved information on activities, tours and attractions ± Other tourist areas (such as the Blyde River) or the Kruger Park (accessed via Orpen Gate) ± Establishment of a Maruleng Tourism Information obtain little benefit Centre Source: Monitor interviews; Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 113 Nodal Economic Profiling Project Business Trust and dplg, 2007 Selected sectors: Tourism Maruleng Key contacts

Position / Name Reason to contact organisation

Tukisetso (Nelson) Acting Manager:  Only local government official who is responsible for tourism Kopele Spatial Planning and development in Maruleng Economic Development

Deon Nkoane LED Manager,  Responsible for LED initiatives including tourism in the larger Mopani District Mopani District area Municipality  Critical to ensuring alignment of local to district and national plans

Heidi Smith Chairperson of the  Key driver of tourism promotion Maruleng Tourism  Owns the Kruger to Canyons Newspaper ± key informant Association regarding tourism in the area

Debby Thompson Owner, Bushveld  Key promoter and driver of the Kruger to Canyons Biosphere Connections initiative  Works closely with Maruleng Municipality

Andre Cornelius Chairperson of  Key resource in respect of local economic activity, especially Chamber of tourism and retail-related developments Business, Local  Developer of residential game estates and new shopping mall Entrepreneur

David Arkwright Consultant, ECI  Involved with the MABEDI programme, but currently focusing on Africa Bushbuckridge

UUP-WRD-Maruleng Profile-311006-IS 114 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Maruleng poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Agriculture

± Selected sector: Tourism

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Maruleng Profile-311006-IS 115 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Maruleng Summary of identified investment opportunities

AAggrriiccuullttuurree // aaggrrii--pprroocceessssiinngg TToouurriissmm

Opportunity Potential Opportunity Potential

Agri-processing plant Cultural Village

International Airport / Citrus farm Trade Hub

Sugar cane farming / bio-fuel plant OOtthheerr

Opportunity Potential Silk production Curio / homeware manufacturing

Stone crusher

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

UUP-WRD-Maruleng Profile-311006-IS 116 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Maruleng Agri-processing plant

Level of action MOLT fruit processor Business plan formulation complete? MMOOLLTT ffrruuiitt pprroocceessssoorr required from Scale AAggrriiccuullttuurree Greenfield x Private sector # of Jobs All funding in place?

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

MOLT Branding Concept Data and commentary

Description  Plan to build and operate a world-class processing facility near Hoedspruit. Most technically advanced facility in the country utilising latest technology ± low energy consumption and full water recycling

MOLT plan design  Aims to be lowest cost producer in South Africa of concentrate, purees, oils and pulp for local and export market. Intends to process citrus (orange, lemon) and non-citrus (mango, tomato etc.)  Supported by Trade and Investment Limpopo (TIL). TIL is involved in securing a land lease agreement and MOU with Moletele CPA  DTI have registered it as a Strategic Industrial Project  Secured R20 million from the Development Bank of Southern Africa (DBSA)  Funding of 22.5 million Euros from MENTOR Wirtschaftsberatung GmbH for an equity stake ± due to delays (six years) this is unlikely to be honoured

Economic rationale  Maruleng is one of the country©s most prolific fruit growing regions  No processing facility within 120 km radius  Large tracts of under-utilised irrigated land and limited demand for non-export grade fruit  Option for clusters of emerging farmers unable to produce export grade fruit because of input costs / volumes

Employment  75 permanent employees at single shift levels  700 to 2,450 indirect and seasonal employment opportunities in agriculture

Enabling conditions  Resolution of current land claims and community participation issues  Securing R120-150 million capital funding

Source: Interviews, various MOLT documents Contact details Geoff Boswell (MOLT), Tel. 083 960 5450; Amos Shiburi (TIL), Tel. 015 295 5171

UUP-WRD-Maruleng Profile-311006-IS 117 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Maruleng Agri-processing plant (continued) Trade and Investment Limpopo Assessment (TIL) have conducted an initial evaluation  Complaints from other fruit processors ± potentially insufficient supply to sustain another processor which may have a detrimental effect on existing processors; concerns about key assumptions underlying MOLT  TIL appointed two service providers to undertake independent evaluations ± key findings below:

Impact on supply in Limpopo Impact on labour in Limpopo Impact on BEE in Limpopo

· Decrease supply: oranges 22%, mangos · Create 75 permanent jobs in year one · New orange orchards and tomato crops 23% and lemon 34% · 700 to 2,500 additional secondary will be required in Hoedspruit · Offset by new BEE farming ventures employment opportunities over 5 years · Concerns that citrus is inappropriate as · Requires additional 700 ha in Hoedspruit · Potential loss of employment from impact ªcash cropº for BEE framers due to funding · Concerns about ability to produce on existing processors requirements and long lead times untreated non-export crops alongside · Insufficient data on existing processors to · Can be managed ± mix of citrus, cash treated export crops ± expert evidence gauge real impact crops and guaranteed purchase contracts suggests this can be managed · Conc.: On balance likely to be positive · Research supports the potential for new · 20k to 30k MT oranges currently exported (at worst neutral) BEE farmers ± especially in tomatoes for processing could also be diverted · Balobedu Community Trust are supportive · Conc.: Sufficient fruit will be available · Conc.: Likely to benefit BEE farmers Impact on producers outside Limpopo, Impact on farmers in Limpopo Key assumptions Mpumalanga and Brits

· Increased competition will increase · Impact on fruit processors outside · MOLT has been aggressive in its demand for farmers' products and Limpopo, Mpumalanga and Brits regions assumptions and projections ultimately selling prices and supply negligible as they draw very little supply · Key differences in selling price · Local suppliers will face reduced transport from the region assumptions ± impact of current weak costs (at present R150 per MT) · Conc.: No impact on processors international pricing · Farmers will have option to take equity in outside Limpopo, Mpumalanga and · Conc.: No material impact in MOLT’s MOLT increasing control over crop take-up Brits long-term operating profitability · Conc.: Positive for local farmers

MOLT is likely to be negative for existing processors by increasing prices for raw materials and higher demand for fruit; positive for BEE, existing farmers, processing technology, FDI and employment (neutral at worst).

UUP-WRD-Maruleng Profile-311006-IS 118 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Maruleng Curio / homeware manufacturing

Level of action Makwakwa Curios Business plan formulation complete? MMaakkwwaakkwwaa CCuurriiooss required from Scale

OOtthheerr ((MMaannuuffaaccttuurriinngg)) Greenfield Private sector # of Jobs All funding in place?

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

Craft / Gift Shop Concept Data and commentary

Description  Existing small manufacturing / retail operation located outside Hoedspruit  Production input are monkey oranges or apples (Strychnos Spinosa) that grow MOLT Plan Design wild and are collected by local communities. Collection provides some R600,000 per annum and supports 20 families  Fruit is processed in a number of ways ± dried, carved, dyed, etc. to produce a range of curios and decorative items such as candle holders  At peak has contracts with Mr Price Home and Pick `n Pay Hypermarket. Turnover of R3 million per annum and employing 100 people. Mr Price has switched to cheaper plastic Indian imports, Pick `n Pay contract offers no margin  Hand-crafting Economic rationale Utilisation of cheap local raw materials that offers employment to communities  Potentially myriad products to serve tourism as well as homeware market

Employment  Currently only 17, potential to employ 100 people in manufacturing, plus some 20 families in collection

Enabling conditions  Marketing and more effective linkages to tourism trade  Securing of contracts with large local home ware / curio chains Contact Details Sars Pretorius (Makwakwa Curios), Tel. 015 795 5467

Source: Interviews UUP-WRD-Maruleng Profile-311006-IS 119 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Maruleng Silk production

Level of action Bombyx Mori Business plan formulation complete? BBoommbbyyxx MMoorrii required from Scale AAggrriiccuullttuurree Greenfield Private sector # of Jobs All funding in place?

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

Stretching raw silk Concept Data and commentary

Description  Existing successful business that manufactures silk products ± mainly duvets, bedding and cushions  Currently has a factory in Hoedspruit as well as six retail outlets across the MOLT Plan Design country including Dullstroom, Knysna, Hoedspruit, Cape Town  Project has its origins some 25 year ago when the Lebowa Homeland government, with Chinese support, established a mulberry plantation (some 9.5 ha) and silkworm farming project in Bushbuckridge. Employed 30 people  Political unrest in the 1980s as well as the increased use of pesticides by local farmers destroyed the silkworm farm

Economic rationale  The factory is currently 100% dependent on expensive Chinese cocoon imports. Current requirements are 2 tonnes per year at an average of R250 per kilogram Silk worm plus clearing costs  Business is undergoing significant expansion through its own retail stores as well as a contract with Woolworths. However, price is an issue  Key constraint is increased, affordable and secure supply of raw silk  Opportunity exists to re-establish silkworm farming as the climate is ideal. This would require regulation / control of pesticide use but could be linked to broader biosphere and organic farming initiatives. Thirty hectares of mulberry trees are required per tonne of silk

Employment  Currently employs 35 people in the factory, a further 10 in a restaurant / conference facility attached to the factory and 12 people in the retail stores  Potential for at least 150 plus in silkworm farming

Enabling conditions  Establishment of mulberry plantations where pesticide use is limited and controlled ± will require government intervention

Source: Interviews Contact details Sandra Harmse (The Silk Duvet Co.), Tel. 015 795 5666 UUP-WRD-Maruleng Profile-311006-IS 120 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Maruleng Citrus farms (emerging farmers)

Level of action Oaks / Willows citrus farms Business plan formulation complete? OOaakkss // WWiilllloowwss cciittrruuss ffaarrmmss required from Scale AAggrriiccuullttuurree Greenfield Private sector # of Jobs All funding in place?

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

Farm entrance Concept Data and commentary

Description  The Oaks/Willows are two citrus farms comprising 193 ha on the road from Hoedspruit to Tzaneen. The land falls within the Ga-Mametja authority  Crops farmed include Valencia oranges (90%), navel oranges and lemons mainly for export. Previously the farms also produced grapefruit and proteas.  The farm was started 20 years ago by the Lebowa Agricultural Corporation. In 1996 the farms were transferred to the newly created Agricultural and Rural Development Corporation (ARDC)  Following almost 10 years of mismanagement the farms were handed to the community (in November 2006)  Currently idle due to lack of funds, skills, capacity and community conflict

Derelict pack-house Economic rationale  Potential annual revenue of R4 to 5 million and R2 million profit  Existing pack-house, tractors and equipment valued at R3 million  While orchards are old, land is irrigated and has potential for other crops such as sugar cane  Farm and pack-house is close to The Oaks settlement

Employment  Potential to employee 100 permanent and 250 seasonal workers

Enabling conditions  Operating capital of R1 million (indications are that this has been secured from MAFISA)  Farming expertise / strategic partnership to access skills and markets Contact details Jospeh Shai (Mametja Group Holdings), Tel. 082 697 8826

Source: Interviews, Maruleng LED Project information, Mametja Group Holdings Business Proposal

UUP-WRD-Maruleng Profile-311006-IS 121 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Maruleng Sugar cane and bio-fuel plant

Level of action Blyde Valley Sugar Business plan formulation complete? BBllyyddee VVaalllleeyy SSuuggaarr required from Scale AAggrriiccuullttuurree Greenfield x Private sector # of Jobs All funding in place? ?

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

Sugar cane fields Concept Data and commentary Description Sugar farming and mill  A sugar plan has been developed by local business (Blyde Valley Sugar Ltd) with the aim of replacing citrus with sugar cane. Involves cultivation of 12,000 hectares of sugar cane by commercial and emergent farmers in the Hoedspruit area and establishment of a sugar mill  TIL flagship project, with TIL playing a facilitating role  A major South African sugar producer has indicated willingness to participate as an equity, technology and management partner Bio-diesel fuel production  Consideration is also being given to producing ethanol as part of the project  TIL is major stakeholder in a bio-diesel initiative which aims to encourage Bio-fuel plan production of oil seeds by emergent farmers in Limpopo  TIL will seek investors and markets for this project, and will be represented at board level when a legal entity is established to drive the process  Debt financing has been secured, CEF and IDC are doing a feasibility study

Economic rationale  The rationale is that sugar is a good and easy crop for emerging farmers  Project could generate investment of R1.2 billion  Rising cost of fossil fuels makes bio-diesel an increasingly attractive option

Employment  Farming will create employment for some 5,500 people and 2,000 in the mill  Bio-diesel plant employment impact is not available

Enabling conditions  Feasibility studies and EIA need to be completed  Technical partners need to be secured Source: Interviews, TIL Annual Report 2005 Contact details Amos Shiburi (TIL), Tel. 015 295 5171; Pieter Scholtz (Blyde Valley Sugar Ltd), UUP-WRD-Maruleng Profile-311006-IS Tel. 011225 795 5087 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Maruleng Sugar cane and bio-fuel plant – Industry conditions Favourable developments in the industry have raised the attractiveness of the investment, prompting renewed attention from government and the private sector World raw sugar prices: 2001- South African sugar production: 2006 1995-2005 20 30 CAGR 2002-2006: 27.2% 16.5 CAGR 1995-2005: 2.5%

d 25 22.2 n 21.2 21.2 21.3

u 15 20.4 ) o M P 20 16.7 r M ( e 9.3 P s

10 8.6 15 e s t n n 6.3 5.9 n e o 10 C T 5 S

U 5

0 0 1 Jan 2002 Jan 2003 Jan 2004 Jan 2005 Jan 2006 1995 1997 1999 2001 2003 2005

Positive trends in the sugar industry Perspectives

 Sugar prices have increased due to solid demand “Ethanol is the increasingly popular fuel substitute that can be and an increase in the price oil mixed with gasoline to power cars. As oil prices go higher, traders believe, demand for ethanol – and sugar – could soar” ± Sugar is used to produce ethanol, a substitute ± Alternative Fuels Data Centre for oil, and therefore its price is positively correlated with oil prices “The EU has agreed to cut subsidies offered to European sugar

 farmers by 36%; the EU had been paying Europe's sugar The EU has reduced its subsidies to European producers three times the world price… speculation that sugar will sugar farmers, raising the competitiveness of increasingly be used for fuel rather than food has driven futures South African sugar on the European and global prices to their highest levels in a quarter century” markets ± BBC News Online

Note: 1Preliminary figure Source: Department of Agriculture, Abstract of Agricultural Statistics, 2006; Illovo, World of Sugar, 2006 UUP-WRD-Maruleng Profile-311006-IS 123 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Maruleng Sepeke Cultural Village

Level of action Sepeke Cultural Village Business plan formulation complete? Sepeke Cultural Village required from Scale ? TToouurriissmm Greenfield Private sector # of Jobs All funding in place? ?

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

Entrance Concept Data and commentary

Description  Funded through the dplg LED fund, the Sepeke Cultural Village is located on the main road from Hoedspruit to Tzaneen in The Oaks residential area. Initial investment of R1.463 million  The objective was to locate the village close to the community in order to provide employment opportunities, in a scenic area situated near the Oliphants River  The village comprises an entrance, a main stone and thatch building with ablutions, kitchen and small conference / function facilities. Tented accommodation is also provided  A small Pedi traditional village and huts have been built Main  Village is not operational and is in need of extensive renovations / repair facility Economic rationale  No existing Pedi Cultural Village in Maruleng  Need to provide additional tourist attractions in order to attract increased visitors especially from the game lodges

Employment  Potential to employ 20 permanent staff Tents Enabling conditions  Village is not on the main tourist road from the Strijdom Tunnel to Hoedspruit. Improved signage and marketing is required. A new tar road from The Oaks to Trichardtsdal will also improve access  Must be integrated into broader regional tourism offering  Require a private sector partner to manage and turn-around including exploring Traditional other potential uses. (Understanding is that Maruleng has identified a strategic huts partner who will sign a lease shortly) Contact details Nelson Kopele (Maruleng Municipality), Tel. 015 793 2409

UUP-WRD-Maruleng Profile-311006-IS 124 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Maruleng Stone crusher

Level of action Stone crusher Business plan formulation complete? SSttoonnee ccrruusshheerr required from Scale

OOtthheerr ((MMaannuuffaaccttuurriinngg)) Greenfield Private sector # of Jobs All funding in place?

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

Entrance Concept Data and commentary

Description  Funded by the dplg LED, the Drakensberg Stone Crusher is situated close the main road between The Oaks and Sekororo some 100 km from Hoedspruit  Initial investment of R1.473 million  The plant is close to the Oliphants River and an abundant supply of rock  The plant crushes rock to different size specifications for use in concrete, foundations and other building-related activity  The plant is owned by a trust comprising 30 beneficiaries and is overseen by the Maruleng Municipality  Plant has been mismanaged and has collapsed due to a lack of maintenance provision  Plant not operational! Economic rationale Abundant natural resources as inputs in the area  Close to 30 residential villages that require building materials (currently obtained from Tzaneen or Hoedspruit)  Provide gravel to road construction project currently underway  Indicators are that current supply for construction materials does not match demand

Employment  Thirty people, with potential growth

Enabling conditions  Funding in order to restart and upgrade operations (estimated R500,000)  Improved financial management  A sound marketing approach including the securing of longer-term contracts Contact details Nelson Kopele (Maruleng Municipality), Tel. 015 793 2409

Source: Interviews, Mametja Group Holdings Business Proposal UUP-WRD-Maruleng Profile-311006-IS 125 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Maruleng International airport / trade hub

Level of action Eastgate airport Business plan formulation complete? EEaassttggaattee aaiirrppoorrtt required from Scale ? TToouurriissmm ((ttrraaddee)) Greenfield Private sector # of Jobs ? All funding in place? ?

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

Central regional airport Concept Data and commentary Description  Eastgate airport is 7 km outside Hoedspruit and 45 km from the Orpen Gate entrance to the Kruger Park  Situated within the Hoedspruit Air force Base, it makes use of their runways and control towers. These have sufficient capacity to accommodate 747s  It is the primary access point for international and some local tourists to Eastgate numerous exclusive game lodges. SA Express operates daily between OR Airport Tambo (Johannesburg) and Cape Town (50 seaters). Other charters also utilise the airport  The airport has good facilities including a conference room, VIP lounge, SA Airlink Plane at Eastgate cafeteria and information centre  The airport does not have an international licence which means that international flights need to clear in Polokwane, Phalaborwa or Nelspruit. Potential exists to increase international tourism traffic with such a licence, while the airport could be expanded as a central tourism hub for the region  Additionally the airport could be expanded to enable the air freighting of time- sensitive local produce (such as vegetables) to international and domestic markets

Economic rationale  Leading port of entry to the central Kruger Park and private game lodges  Potential to expand both volume of tourist traffic but also to expand utilisation to enable some air-freighting of local agricultural produce (would require careful analysis of environmental impact and trade-offs with tourism)

Employment  N/A

Enabling conditions  Current levels of secrecy and lack of co-operation between private sector owners and local government must be addressed  Estimated funding of R60 million required Contact details Nelson Kopele (Maruleng Municipality), Tel. 015 793 2409; Tertia van der Westhuizen (Manager, Eastgate Airport), Tel. 015 793 3681

Source: Interviews, Maruleng IDP Review 2006/07 UUP-WRD-Maruleng Profile-311006-IS 126 Nodal Economic Profiling Project Business Trust and dplg, 2007 Investment opportunities Maruleng Legend

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

= Unknown / Insufficient data ? to estimate

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

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

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

UUP-WRD-Maruleng Profile-311006-IS 127 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Maruleng poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Agriculture

± Selected sector: Tourism

z  Investment opportunities Understanding the node

 Potential sources of economic growth ± Short term

z Summary  Potential sources of economic growth ± Long term

 Assessment of current activities z Appendix  What needs to be done now?

UUP-WRD-Maruleng Profile-311006-IS 128 Nodal Economic Profiling Project Business Trust and dplg, 2007 Summary Maruleng Understanding the Maruleng poverty node

Key observations from Maruleng Key characteristics of node   Estimated current population (2006) of 107,247 Relatively small  About a quarter of the region (some 3,247 km2) was the former population OOvveerrvviieeww Lebowa homeland  Predominantly rural  Ninety-five per cent of the population lives in dense rural  Services backlogs settlements characterised by a lack of services (especially water) for poor households  Poor infrastructure  Ninety-eight per cent is rural and agriculture is the dominant constrains growth economic activity  Significant potential EEccoonnoommyy,,  The urban nodes (mainly Hoedspruit) are service centres to farms for tourism

oovveerrvviieeww and the significant tourism facilities in the area   Only 28% of adults are formally employed, and 88% of Significant potential households live below the poverty line for agriculture and agri-processing   Maruleng has significant natural endowments and a well- Area requires more established tourism industry effective branding EEccoonnoommyy,,  Scope exists to grow the sector through targeting other markets and marketing ttoouurriissmm and more effectively branding and promoting an integrated  Improved regional offering

 accessibility to Accessibility and poor infrastructure are a constraint region / transport linkages are  Agriculture is the cornerstone of the local economy, especially the essential production of citrus, mango and vegetables 

 Effective and speedy EEccoonnoommyy,, Scope exists for growth in both new crops (vegetables, sugar resolution of land aaggrriiccuullttuurree cane) and new markets (international and domestic); little agri- processing claims are vital for all  Land claims and infrastructure are inhibiting factors sectors

Source: Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 129 Nodal Economic Profiling Project Business Trust and dplg, 2007 Summary Maruleng Potential sources of economic growth – short term

Economic growth of firm in node

Increase sales? Decrease cost?

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

For Import Skills Other export substitution

Where to focus?

Encourage joint venturing and Provide basic infrastructure (roads mentoring between large and and water)

small farmers  Allow farmers to decrease  Small farmers lack transportation costs

business skills and  Decrease in cost and increase business networks in efficiency for irrigation  Small farmers lack market  Spin-off benefit: encourage price knowledge and often tourism development get undercut by their clients Not a focus Key focus area area Source: Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 130 Nodal Economic Profiling Project Business Trust and dplg, 2007 Summary Maruleng Potential sources of economic growth – long term

Economic growth of firm in node

Increase sales? Decrease cost?

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

Where to focus?

Value-added processing in the node for agricultural products Large percentage of the Collective marketing strategy  Alleviate a major competitive population is young (39% incorporating all the attractions disadvantage for farmers ± between age 0-14 years) and activities in this and adjacent regions is needed remote location of the node  Skills / training institute that creates major transport costs  will help the youth secure Create awareness of the for farmers employment either outside available tourist attractions  Increase growth and or inside the node in the node

employment in the node  Increase in volumes of  Stimulate large private sector tourists to the node investment in the node 

 Brand the uniqueness of the Create demand for ancillary services (garages, area accommodation etc) ± platform for tourism development Source: Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 131 Nodal Economic Profiling Project Business Trust and dplg, 2007 Summary Maruleng Assessment of current activities

Key observations from Maruleng

WWhhaatt iiss bbeeiinngg ddoonnee??

 Implementation of infrastructure is happening (subject to budgetary and capacity constraints)

 Significant private sector investment in residential game estates

 Major projects are being planned or assessed, notably the MOLT agri-processor and the sugar mill / bio-fuel plant in Hoedspruit

 Important new land restitution transactions are being finalised that seek to address previous shortcomings, viz. skills retention and effective commercial management

Strategic choice

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

 Infrastructure is a big constraint for the agriculture and tourism sectors

 More actively facilitate private sector investment through better engagement

 Resolve land claims as a matter of urgency Source: Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 132 Nodal Economic Profiling Project Business Trust and dplg, 2007 Summary Maruleng What needs to be done now?

Key observations from Maruleng

SSoolluuttiioonnss ttoo ccoonnssttrraaiinnttss // iinnvveessttmmeenntt ooppppoorrttuunniittiieess

 Improve basic road, water and electricity infrastructure

 Actively facilitate and incentivise private sector investment in agricultural value-added processing in co-operation with the district municipality as well as provincial departments and agencies

 Develop an effective branding and marketing strategy for the area in respect of both tourism and agricultural offerings

 Develop and implement a spatial development framework for the node to actively manage development and investment and more effectively retain potential benefits

Requires involvement of key stakeholders

 Maruleng Municipality

 Mopani District Municipality

 Limpopo LED

 dplg  DTI

 DEAT

 Local business (including farmers and tourism operators)

Source: Monitor analysis UUP-WRD-Maruleng Profile-311006-IS 133 Nodal Economic Profiling Project Business Trust and dplg, 2007 Maruleng Maruleng poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Agriculture

± Selected sector: Tourism

z Investment opportunities

z

Summary  Itineraries of field trips

 Key stakeholders

z  Appendix Key documentation

 Photo collages

UUP-WRD-Maruleng Profile-311006-IS 134 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Maruleng Itineraries of field trips

TTrraavveell sscchheedduullee // llooccaattiioonnss MMaaiinn aaccttiivviittiieess CCoommmmeennttss 

 Long drive (5.5 hours) – roads are good Discussion with local businesses  except outside Strijdom Tunnel TTuueessddaayy,, 3311 OOccttoobbeerr Travel to Maruleng including Standard Bank, Pam   Large dense settlements evident Hoedspruit Golding  around Strijdom Tunnel area (former 22000066 General orientation Lebowa) 

Meetings: Maruleng Municipality   Extremely hot – 42°C

Hoedspruit Manager); Nelson Kopele (LED  Wednesday, 1  LED projects are defunct – very Wednesday, 1 The Oaks and Willows Manager); Maxwell Matebula

 depressing November 2006 Sekororo (Limpopo LED)  November 2006  Road to Sekororo very poor Site visits to LED projects    Visit to Silk and Makwakwa Curios Long drives – distances are vast with

Kampersrus area   Meetings: M Uys; Colonel du Toit few settlements TThhuurrssddaayy,, 22 Hoedspruit   (OC, Airforce); D Thompson Lots of game estates being developed Klaserie 

November 2006  (Biopshere); Dr Scholtz (CGI) Ended day with a follow-up meeting

November 2006  Acornhoek Travelled to Eastgate Airport with Nelson Kopele   Meetings: M Diphela (Department of Drove to Metz Hospital  Hoedspruit Agriculture); Sekororo Hospital; H  Sekororo characterised by dense Friday, 3 November  Friday, 3 November Trichardtsdal / Metz Smith (Tourism Association); A settlements, little economic activity  22000066  Mica Cornelius (Developer and Chamber of Drove back to Johannesburg via Mica Business); D Nkoane (Mopani LED) (some mining) and Polokwane

UUP-WRD-Maruleng Profile-311006-IS 135 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Maruleng Key stakeholders, actors, information carriers

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

Sam Mobiba (Acting Colonel Du Toit Dr P Scholtz (Citrus Joseph Shai (Oaks Aneliese Fourie Maruleng Municipal (Officer Commanding, Growers Association, Farm Manager, (Health Advisor, Emile de Kock Hoedspruit Airforce Blyde Sugar, Blyde Mametja Group Development co- (MABEDI, Agriculture) Manager) base) Irrigation) Holdings) operation Ireland)

Tukisetso Nelson Kopele (Manager Du Toit Malan Jaco Fivas (Chair, Debby Thompson Maxwell Mathebula LED, Planning and (Project Manager SA Mango Growers (Bushveld (European Union LED Dave Arkwright Community Services, Tourism, Limdev) Association) Connections; Programme) (MABEDI, Tourism) Maruleng) Biosphere) Dave Gertzen (Vela Christian Rakuoale Amos Shiburi (Trade VKE, Transaction Marintinka Uys Glen Steyn (Former LED and Investment Advisor Limpopo (Otters Den, (Consultant to Manager, Maruleng) Limpopo) Tourism Biosphere) Limpopo Premiers Commercialisation) Office)

Andre Cornelius Morotah Dipela Tshilidzi Madula (Chair of Chamber of (Dept of Agriculture, (Head of Projects, Business/ Local Maruleng) LIMDEV) Developer)

Deon Nkoane (LED Bransley Shilote Ingrid Geertsma Manager, Mopani (Regional Land Claims (Manager, Raptors District Municipality) Commissioner) Lodge)

CM Erasmus (Senior Manager, Restitution Sars Pretorius Support, Limpopo (Owner, Makwakwa Department of Curios) Agriculture) Lazarus Lepako (Manager Land Restitution, Limpopo Sandra Harmse Department of (MD, Silk Duvet Co.) Agriculture)

Geoff Boswell (CEO, MOLT Fruit Processing)

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

UUP-WRD-Maruleng Profile-311006-IS 136 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Maruleng Key stakeholders, actors, information carriers (continued)

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

Heidi Smith (Chair of Tourism Association)

Dorothy Olivier (Business Banking Manager, Standard Bank Hoedspruit)

Ken Watson (COO, PegMin Mining)

Tertia van der Westhuizen (Manager, Eastgate Airport)

Tiny Loubscher (Chair of Shadecloth Growers, Vegetable Farmer)

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

UUP-WRD-Maruleng Profile-311006-IS 137 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Maruleng Key documentation

AAuutthhoorr // TTiittllee MMaaiinn iissssuueess ccoovveerreedd YYeeaarr oorrgg..

Maruleng Maruleng Municipality IDP Review 2005/2006 Planning report for the municipality 2005 Municipality

Maruleng Maruleng Municipality IDP Review 2006/2007 Planning report for the municipality 2006 Municipality

Mopani District Municipality Integrated Development Plan Mopani District Planning report for the district municipality 2006 2006-2011 Municipality

Kayamandi Mopani District Municipality Local Economic Development Local Economic Development (LED) Strategy for the Development 2006 Strategy (Revised) Mopani area Service Pty (Ltd)

General socio-economic data, review of water services Water Services Bohlabela District Municipality Review 2005 delivery and requirements Authority

Provincial strategy and plans for economic growth and Limpopo Limpopo Growth and Development Strategy 2005 development including sector targets Government

Overview of the node and assessment of progress of IDT and Nodal Report: Bohlabela Progress Report No date priority projects. Training@Work

Limpopo Provincial Housing Development Plan 2004-2007 (revised Department of Provincial housing priorities over the three year period 2005 version) Local Government and Housing

tick if on file

UUP-WRD-Maruleng Profile-311006-IS 138 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Maruleng Key documentation (continued)

AAuutthhoorr // TTiittllee MMaaiinn iissssuueess ccoovveerreedd YYeeaarr oorrgg..

Bohlabela District Municipality LED Strategy 2006/07 Bhohlabela District Overview of Bohlabela LED programme and initiatives 2006 Presentation Municipality

Provincial Indices of Multiple Deprivation for South Africa HSRC and Stats Definition and measurement of poverty indictors 2006 2001 SA

Limpopo Overview of population, health and education data by Department of Status of the Province Report No date district municipality Health and Social Development

Presentation on the role of the department of agriculture on Limpopo Brief presentation on agricultural challenges and key poverty alleviation and job creation in the local municipality Department of 2005 intervention areas of Maruleng Agriculture

Iyer Rothaug Bohlabela District Municipality Integrated Development Plan Bohlabela IDP including key service delivery and other Collaborative and 2002 2002 projects Maseko Hlongwa Associates

tick if on file

UUP-WRD-Maruleng Profile-311006-IS 139 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Maruleng Photo collage #1 – Constraints to economic growth

Typical village in Sekororo Informal trader’s market, Hoedspruit Department of Agriculture offices

Main road into Hoedspruit Idle pack house, Oaks Farm Rural school, Metz

UUP-WRD-Maruleng Profile-311006-IS 140 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Maruleng Photo collage #2 – Opportunities for investment

Eastgate Airport, Hoedspruit High tech vegetable farming New Pick’nPay Shopping Centre, Hoedspruit

Sepeke Cultural Village Makwakwa Curios – “Monkey Balls” The Oaks Citrus Farm

UUP-WRD-Maruleng Profile-311006-IS 141 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Maruleng Photo collage #3 – People of the node

Ania Mashilo, Food Seller, Hoedspruit Taxi Rank

Joseph Shai, Manager, Florence, Head Chef, The Oaks Farm Sleepers Restaurant

UUP-WRD-Maruleng Profile-311006-IS 142 Nodal Economic Profiling Project Business Trust and dplg, 2007 Appendix Maruleng Photo collage #4 – Businesses of the node

Hoedspruit Wildlife Estate Retail Centre Shops and liquor store taxi rank The Silk Duvet Company

Kgamogelo Tourism Info & Shopping Centre Tractors, Oaks Citrus Farm Spar Shopping Centre, Hoedspruit

UUP-WRD-Maruleng Profile-311006-IS 143