Annexure 1: District & Metro Profile Eastern Cape Cacadu District (DC10) and Nelson Mandela Metropolitan Municipalities
Programme of Support to Local Economic Development in the Eastern Cape
Eastern Cape Competitive Advantage Assessment And Training Support Project
Produced by Melinda McCann For
European Consultants Organisation (ECO)
EC FRAMEWORK CONTRACT AMS/451 – LOT N°9 MISSION N°2005/109496
Contents
1 District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan Municipalities ______1 2 The District Development Framework: Cacadu District Municipality (DC10) ______7 2.1 Key Elements of Municipal Competitive Advantage ______7 2.2 “Rules of the Game” (Institutional Environment)______8 2.3 Economic Indicators ______8 2.4 Capacity ______9 3 The Metropolitan Development Framework: Nelson Mandela Metropolitan Municipality (NMMM) ______10 3.1 Key Elements of Municipal Competitive Advantage ______10 4 The Local Development Framework: Camdeboo Local Municipality (EC101) _____13 4.1 Key Elements of Municipal Competitive Advantage ______13 5 The Local Development Framework: Blue Crane Route Local Municipality (EC102) 16 5.1 Key Elements of Municipal Competitive Advantage ______16 6 The Local Development Framework: Ikwezi Local Municipality (EC103) ______19 6.1 Key Elements of Municipal Competitive Advantage ______19 7 The Local Development Framework: Makana Local Municipality (EC104) ______22 7.1 Key Elements of Municipal Competitive Advantage ______22 8 The Local Development Framework: Ndlambe Local Municipality (EC105) _____ 25 8.1 Key Elements of Municipal Competitive Advantage ______25 9 The Local Development Framework: Sunday’s River Valley Local Municipality (EC106) ______28 9.1 Key Elements of Municipal Competitive Advantage ______28 10 The Local Development Framework: Baviaans Local Municipality (EC107) _____31 10.1 Key Elements of Municipal Competitive Advantage ______31 11 The Local Development Framework: Kouga Local Municipality (EC108) ______34 11.1 Key Elements of Municipal Competitive Advantage ______34 12 The Local Development Framework: Kou-Kamma Local Municipality (EC109)__ 37 12.1 Key Elements of Municipal Competitive Advantage ______37
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan Municipalities 1 District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan Municipalities
Cacadu District Municipality (CDM), formerly Western District (which included the Metro), occupies the western portion of the Province, bordered by the Western and Northern Cape provinces and by the Eastern Cape districts of Chris Hani and Amatole; Nelson Mandela Metro (NMMM) is wholly bordered by Cacadu (refer to 1.3). NMMM extends over 1952.15km2, consists of 54 wards and will have 108 councillors, and incorporates two former Cape Provincial Administration (CPA) magisterial districts. The bulk of the former Uitenhage Rural Council falls into the Cacadu DMA. The Metro experienced the highest population growth rate (1.31%pa) from 1996 to 2004 in the Province and urbanisation stands at 88.09%. The CDM extends over 58,243.93km2 and incorporates 14 former CPA magisterial districts into nine local municipalities and a District Management Area (DMA), commonly named Aberdeen Plain (ECDMA10). The DMA, established for the reason of low population (around 6,537 people), covers 13,283.48 km2, more than one fifth (22.81%) of CDM land, and is constituted of four distinct areas, including Addo and Tsitsikamma National Parks. ECDMA10 may be re- demarcated to include the significant expansion of Addo Elephant National Park.
The municipal re-demarcation saw the exclusion of Port Elizabeth, Uitenhage and Despatch to create the Metro, the Province’s only Category A Municipality. NMMM and CDM are the leading economies in the Eastern Cape in terms of GVA growth performance from 1996 to 2004. In the Metro, manufacturing dominates GVA contribution (32.15%) and is the second most prominent contributor to employment (25.00%), after Community Services (25.59%). While the rate of unemployment, at 44.56%, is lower than the Provincial average (55.41%), it is higher than the national rate (40.43%) and considerably higher than the rate in surrounding Cacadu (34.79%). Strong economic and functional linkages remain between Cacadu and the Metro. For instance, the CDM Office is still located in Port Elizabeth and much of the raw material generated within the CDM is processed within the Metro. Cacadu further has an export-based economy tied principally to the agricultural sector, and raw materials tend to be sent to the Metro for export. Agriculture remains the largest contributor to employment (38.50%) in the CDM, although it is second to Community Services in respect of GVA contribution. Relative to all other districts, Cacadu compares favourably in human development terms – the District’s HDI (0.55) is second in the Eastern Cape, after the Metro (0.65), and ranges from 0.49 (Sundays River Valley) to 0.60 (Kouga). In spite of this favourable comparison, 46.21% of the CDM population and 39.65% of the Metro population lives in poverty.
Cacadu is the most urbanised (67.33%) District and is accordingly the Eastern Cape’s only Category C1 Municipality, with urbanisation rates in excess of 50% for all local municipalities but Kou-Kamma (25.45%). All local municipalities, but Makana, are classed as Category B3 (small towns with surrounding agricultural areas and villages) reflecting limited institutional capacity and areas characterised by limited SMMEs and market opportunities, greater dependence on public support and LED activities that are principally at the level of the small project. Makana is one of only three Category B2 (large core town/s with surrounding agricultural areas) municipalities in the Province, reflecting reasonably adequate budgets and staff, urban centre(s) with associated resources where LED activities are emerging into
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 1 Municipalities strategies and programmes to take advantage of economic potential, as well as substantial numbers of SMMEs, considerable market opportunities, but limited private sector business development services.
Cacadu is the only District in the Province to fall into three environmental planning domains, being the bioregional conservation programmes of STEP (Subtropical Thicket Ecosystem Plan), SKEP (Succulent Karoo Ecosystem Plan) and CAPE (Cape Action Plan for the Environment). The area’s environmental diversity is reflected by the fact that it is home to six of the seven national biomes (forest, grassland, succulent karoo, fynbos, savannah grasslands, thicket).
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 2 Municipalities 1.1. Baseline District and Local Municipal Statistics A B3 B3 B3 B2 B3 B3 B3 B3 B3 C1 Blue Sunday Kou- Categorie NMM Camde Crane Makan Ndlamb 's River Baviaa Kamm Cacad s 2004 Metro boo Route Ikwezi a e V. ns Kouga a u DM 1,952.1 7,232.6 9,831.0 4,449.7 4,221.9 2,000.8 3,507.6 7,724.0 2,417.4 3,575.1 58,243. Area (km2) (MDB)1 5 8 3 0 7 1 1 7 2 7 93 1,125,5 403,84 Population (No.) 36 50,878 35,641 11,452 84,667 63,122 38,394 17,991 86,383 15,318 6 Urbanisation Rate (%) 88.09 77.48 69.46 66.31 82.94 67.69 54.78 57.01 60.19 25.45 67.33 Density (people/km2) 253.41 3.74 4.40 2.56 19.35 16.63 22.81 1.60 16.18 12.23 7.49 Black 57.89 23.29 55.60 36.90 73.95 80.28 70.87 9.39 34.24 13.98 51.95 White 17.38 12.67 9.44 9.29 13.28 12.40 8.00 7.82 17.66 12.11 12.76 Demograp Colour hics (%) ed 23.60 63.77 34.89 53.78 11.75 7.28 21.10 82.77 48.03 73.85 35.01 Asian 1.13 0.28 0.06 0.03 1.02 0.04 0.03 0.02 0.07 0.05 0.28 Gender Female 51.09 51.05 51.11 51.68 51.44 51.46 48.75 51.57 49.24 50.31 50.61 (%) Male 48.91 48.95 48.89 48.32 48.56 48.54 51.25 48.43 50.76 49.69 49.39 0-4 8.44 10.89 8.76 10.25 7.20 7.91 8.64 10.90 9.48 11.45 8.95 5-19 25.50 31.03 30.02 32.08 27.98 27.55 26.18 33.57 25.51 26.93 28.10 Age (%) 20-64 61.05 51.29 54.82 50.37 59.19 55.99 59.39 49.39 58.91 56.72 56.49 65+ 5.02 6.79 6.39 7.30 5.63 8.55 5.79 6.14 6.10 4.90 6.46 HDI 0.65 0.55 0.53 0.53 0.59 0.51 0.49 0.53 0.60 0.51 0.55 HIV Prevalence (%, 2003) 2 31.20 20.20 Functional Literacy (%) 82.85 57.59 52.97 51.70 69.17 54.02 53.05 54.41 66.47 52.80 60.18 None 2.74 8.50 11.92 15.26 5.76 11.89 10.13 9.54 6.28 8.05 8.63
1 Municipal Demarcation Board – Global Insight’s geographic areas used for other categories for internal integrity 2 EC Department of Health
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan Municipalities 3 None 2.74 8.50 11.92 15.26 5.76 11.89 10.13 9.54 6.28 8.05 8.63 Education Grade Levels 12 21.56 15.13 9.79 9.53 20.87 11.56 10.54 10.30 15.26 11.75 14.46 (% age Tertiar 15+) y 9.11 7.72 6.41 5.95 10.61 6.41 3.14 6.67 8.77 4.30 7.60 R0-200 2.93 3.44 2.60 5.50 4.32 6.02 3.90 2.87 2.13 3.63 3.76 Househol R201- d Monthly 1000 11.33 18.56 19.47 22.09 16.54 23.80 24.30 18.60 12.60 20.63 18.49 Income R1001- Levels (%) 2500 21.44 24.75 30.80 26.21 24.50 25.61 32.90 29.27 22.89 28.37 26.09 GDP per capita (R'000)3 37.66 18.61 14.63 17.55 21.98 16.02 11.44 14.34 24.62 36.30 19.62 Unemployment (%)4 44.56 38.85 46.12 33.22 40.80 38.84 43.15 29.84 24.67 5.93 34.79 Dependency Ratio 1.21 1.64 1.53 2.43 1.37 1.79 1.48 2.06 1.29 0.81 1.48 Financial Grant Dependency5 6.48 10.43 15.89 47.65 9.56 12.76 25.86 17.63 5.70 78.77 Water 88.76 95.70 82.64 96.25 85.74 76.32 69.43 92.05 86.25 84.59 83.84 Access to Sanitat basic ion 82.30 83.28 63.14 36.73 58.71 85.82 79.77 69.65 75.64 84.70 73.68 services Electri (%Househ city 75.17 84.76 65.03 72.18 73.36 66.63 65.74 69.26 76.24 76.16 71.88 olds, Refuse 89.56 83.07 67.54 67.38 86.62 73.11 36.46 60.31 77.70 53.41 69.31 2001) Housin g 75.55 90.82 91.83 96.00 84.99 82.13 84.21 97.40 76.79 86.60 85.32
3 GDP by Region (GDP-R) at Current Prices 4 Expanded definition 5 % of municipal 2002/03 budget constituted of grants/subsidies and transfers/allocations
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan Municipalities 4 1.2 The District Space Economy
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan Municipalities 5 1.3 Competitive Advantage Profiles The elements of municipal competitive advantage are explored below for the District and Local Municipalities.
Sources: Municipal Demarcation Board; ECSECC
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan Municipalities 6 2 The District Development Framework: Cacadu District Municipality (DC10)6
Cacadu envisions “A transformed and integrated Cacadu District Municipality contributing to development and a sustainable quality of life in our urban and rural communities.” Key development priorities are identified as: Funding; Effective local governance; Economic development; Health (HIV, AIDS); and Development facilitation.
The District is relatively prosperous in the Eastern Cape, despite rising poverty within towns and settlements. While the exclusion of the Metro resulted in a 94% loss of the District’s main income stream, this has mostly been addressed through massive restructuring. The employment potential of the expanding eco-tourism market has been recognized, with CDM drawing the most tourists in the Eastern Cape.
Various strategies are in place to address basic human needs, expand the tourism industry, improve transport services that are seen as instrumental towards economic growth, and provide training and skills development to reduce the dependency ratio among the target group (women, youth, disabled and elderly). The CDM is developing strategic sector plans, within its Economic Growth and Development Strategy, utilising existing economic strengths and opportunities to broaden the local economic base. The objective of CDM’s Economic Development Priority is to foster an enabling environment for the generation of productive employment (particularly for the poor). Economic Development Strategies relate to the support of tourism development, agriculture and manufacturing, trade and investment, and the marketing of CDM as a tourist destination.
2.1 Key Elements of Municipal Competitive Advantage
2.1.1 Infrastructure and Services
Cacadu’s Infrastructure and Services Index reflects favourably on development across the District, with Kouga and Makana emerging as the most developed local municipalities. Overall, the District fares better on Transport Infrastructure and Quality of Life measures than on Economic Infrastructure. The extent of road surfacing is above Provincial average in five of the nine local municipalities and the District’s proximity to the Eastern Cape’s major economic hub, together with the good representation of operational rail and air transport facilities boosts the Transport score. Direct access to telephones is higher than the Provincial average, yet the average area of cellular network coverage is less favourable, particularly for a number of inland areas. With the exception
6 Sources: IDP 2005/2006; Budget 2005/2006; MDB 2003; Cacadu District Report November 2005 Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 7 Municipalities of housing access, the District has above average access to basic services and to health and education facilities. Cacadu’s inclusion in four PGDP-related economic corridors (NMMM-Buffalo City Industrial, Fish River Irrigation, Karoo Agro-Tourism, and Addo- Tsitsikamma Tourism), promises to further enhance the infrastructure and services, as well as economic, performance of the area.
2.2 “Rules of the Game” (Institutional Environment)
The District is largely urbanised (67.33%), with all but Kou-Kamma (25.45%) having passed the 50% urbanisation mark. Less than half (40.68%) of all residents own their properties, of which the majority (76.58%) are fully paid-up owners. The majority (426) of Cacadu’s 552 unsettled land claims are for financial compensation, while the remaining 126 claims are for land for livestock (85), citrus (1), other fruit (24), other crops (2), conservation/game farming (1), and for housing (13). The ratio of police stations to population is favourable, although average geographical coverage is below Provincial average. The District crime rate is the highest in the Province and while it has declined (-1.60%pa) over the past three years, two local municipalities record significant increases in crime rate. The District economy, as a whole, has the most diverse economy in the Eastern Cape and includes the top two performers in the Province, namely Kouga and then Ndlambe. All local economies, with the exception of Baviaans, fall into the top half of all municipalities on the score of economic diversity. Community services is the dominant sector in terms of contribution to GVA (28.54%), while Agriculture is the principal employer (38.50%). The cost of doing business in the District is generally favourable, with all but two local municipalities performing above the Provincial average. Although transaction costs arising through expenditure on transport, finance and communications are slightly higher than average, distance, and travel time, to the major economic centre of Port Elizabeth and the distribution of Telkom service branches bolster the transaction costs score. Municipal regulatory capacity varies considerably across the District and includes the poorest performer in the Province, while access to finance and enterprise support and to business service providers is generally high.
2.3 Economic Indicators
The District’s population is largely rural and agriculture, which forms the basis of the local economy, is a significant employer. The rate of economic growth is rapid and second only to the Nelson Mandela Metropolitan Municipality (NMMM).
Cacadu has a relatively developed age structure, with 37.05% of all residents aged below 20 years and 6.46% aged over 64 years. Of all the Districts, Cacadu has the lowest rate of unemployment (34.79%), poverty (46.21%) and of dependency (1.48). The District claims a substantially lower proportion of the poverty gap (3.16%) than population (5.89%) of the Province. Less than one quarter (22.26%) of Cacadu households live on up to R1000 per month and average per capita income (R18810.32 per annum) is the highest among the Districts and is second only to the Metro.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 8 Municipalities In terms of both GDP and employment contribution, Cacadu claims a comparative advantage in Agriculture (dominated by Agriculture and Hunting) and Construction. Community Services (principally Education, then Public Administration sub-sectors) emerges as a GDP comparative advantage and Households as an employment advantage. The District claims a leading economy in the Province in terms of growth performance from 1996 to 2004 for both GDP and employment, while it retains its performance for formal employment growth within the national context.
Tourism is concentrated along the coastal strip and around the major inland reserves of the District, notably Addo and Baviaanskloof. Other tourist attractions include cultural and historical sites and dramatic Karoo landscapes. Much of Cacadu has good potential for game, ostrich and goat (including mohair) farming, while existing leading products include citrus and deciduous fruits, sheep (Karoo lamb/mutton, wool) and dairy farming. Tourism and the existing, albeit modest, agro-processing industry have considerable growth potential, which may be furthered by the District’s inclusion in the previously mentioned PGDP-related industrial, tourism, irrigation and agro-tourism economic corridors.
2.4 Capacity
Cacadu has the highest HDI (0.55) along with the lowest HIV prevalence (20.20%) and lowest proportion of child-headed households across all the Districts. Functional literacy (60.18%) is below Provincial average, as is access to education and health professionals and services. However, the proportion of residents with at least a matric (22.06%) and the qualification rate of over 25 year-olds (10.25%) is substantially higher than average.
Women slightly outnumber men yet make up only 45.11% of the EAP, which has grown at a lower rate (3.33%pa) than Provincially over the past eight years. The rate of women’s unemployment (46.04%) and growth in women’s unemployment (6.49%pa) is significantly greater than for their male counterparts.
Municipal capacity is comparatively low and CDM has been identified, in the National Capacity Report (MDB, 2005), as requiring priority assistance based on past poor performance. Some capacity is evidenced by high managerial experience and the presence of an LED Unit, as well as local tourism and planning staff.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 9 Municipalities 3 The Metropolitan Development Framework: Nelson Mandela Metropolitan Municipality (NMMM)7
The Metro’s Vision 2020 is of an area that “practises social justice in a culture of public participation guided by an efficient, accountable, non- racial, non-sexist and sustainable municipality that focuses on sustainable environmental, social and economic development, improving the quality of life of its communities in a secured, safe and tourist friendly environment.” The realisation of Vision 2020 is dependent on the effective integration and co-ordination of the Metro’s three developmental clusters (Institution Building; Economy; and Social) and seven developmental priorities: Institution building; Service delivery; Housing and land delivery; Investment and economic growth; Investment in tourism and tourism infrastructure development, with community involvement; Public safety; and Waste and environmental management. Components within the “Investment and economic growth” priority are: Encourage low inflation in order to reduce interest rates; Develop poverty alleviation programmes; and Initiate major economic developmental projects. The 2005/06 LED budget is just under R55m for operating costs and just under R2.5m as capital costs. The biggest constraints to LED are unemployment and poverty, lack of funding, political instability due to dissatisfaction with rate of delivery, perception of crime, bad publicity, a lack of payment for services and human resource capacity. The Metro is however credited with LED activities and projects through the economic development unit, the mayor’s championing of LED and the creation of agencies to promote LED.
Challenges to the Metro’s growth and prosperity and its transformation into a global economic player include: economic diversification; halving unemployment by 2020, which will require an employment growth rate of 3.5%pa; and ensuring value-added growth at 5%pa to match Johannesburg’s current rate by 2010.
3.1 Key Elements of Municipal Competitive Advantage
3.1.1 Infrastructure and Services
NMMM’s Communications (transport and telecommunications) infrastructure is well developed, with the majority (79.88%) of all roads tarred, operational rail, national airport, Port Elizabeth port (with facilities to handle bulk, general and container cargo) and Ngqura port (associated with Coega IDZ and promoted as the only deepwater port in the Southern Hemisphere), comprehensive cellular coverage and over half (52.02%) of the population with direct access to telephones. Economic infrastructure is well developed, with 51 commercial banks, 57 post offices with banking capability, four Khula branches and three
7 Sources: IDP 2005; MDB 2003; SA Yearbook 2003/04; Nelson Mandela Metropolitan Report November 2005 Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 10 Municipalities Khula supported retail finance intermediaries (Business Finance Promotion Agency, Marang Financial Services, and Nicro Enterprise Finance), Specialist Investment Group (Business Partners), a Multi-Purpose Community Centre, six ECDC residential properties and an ECDC Regional Office.
Quality of Life is the only Infrastructure and Services measure on which the Metro does not emerge as top performer in the Province. Access to basic services (water, electricity, sanitation, refuse removal) and hospital beds is above Provincial average, while access to clinics and to adequate housing is below average and the ratio of schools to the population aged 5 to 19 years is the lowest in the Eastern Cape.
3.1.2 “Rules of the Game” (Institutional Environment)
The centres of Uitenhage, Despatch and Port Elizabeth, together with the URP node of Motherwell, form a large urban conurbation with adjoining rural land representing space to accommodate the city’s growth. The Metro is overwhelmingly urbanised (88.09%) and around half (58.35%) of the population owns their properties. All but two of NMMM’s 365 unsettled land claims are for financial compensation; the remaining claims are for land for livestock (1) and housing (1). On Crime, the Metro is the bottom performer on the business-related score and the local crime rate falls into the top ten among all municipalities in the Province. Police station coverage by area is favourable, although ratio of police stations to population is below Provincial average.
The local economy is more concentrated than the Provincial economy, dominated by the manufacturing and community services sectors. The cost of doing business in the area is the most favourable in the Eastern Cape, considering that the Metro is the major Provincial economic centre and that transaction costs are relatively low. Further considerations are the distribution of Telkom service branches, along with strong representation of business service providers and development and financial support institutions. In addition, municipal regulatory capacity is high, although noted for “red tape” and high tariffs.
3.1.3 Economic Indicators
The Metro has the most developed age structure in the Province, with the majority (61.05%) of residents aged 20 to 64 years. NMMM has the lowest poverty indicator (39.65%), although the depth of poverty is indicated by the Metro’s poverty gap (R751.58m). Unemployment (44.56%) is significant but below Provincial average, and dependency (1.21) is less than half the Provincial ratio.
The Municipality has the highest Productivity score based principally on GDP per worker (formal and informal), and growth in value creation relative to employment and labour remuneration, as well as the skills available to the local economy. NMMM’s top Formal Economy Performance score reflects particularly on the Metro’s contribution to GDP and employment in the Province, GDP growth performance, positive trade balance and very low financial grant dependence. The Metro makes the greatest contribution to formal employment (35.38%) and, by far, to GVA (46.59%) in the Province. The Metro is a leading economy, in the Province and Nationally, in respect of growth (3.01%pa) and shift in share of GDP from 1996 to 2004. By contrast, NMMM is lagging on formal employment
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 11 Municipalities growth performance, with a positive growth rate (1.03%pa) over the last eight years below the Provincial average.
While NMMM has a marginally negative income-expenditure balance, it retains the highest Economic Absorption Capacity considering that it claims the highest total disposable income, considerable buying power and high capacity of the informal sector to generate opportunities relative to formal employment.
The local economy claims a comparative advantage in Manufacturing (dominated by the Transport equipment sub-sector), Transport (centred on Land and Water transport) and Community Services (centred on Health and Social work and on Education), for both employment and GDP contribution. Further employment advantages are reflected for Households (10.54%) and Trade – centred on Retail and Repairs (7.73%).
Leading economic activities in the Metro include the automotive industry, urban agriculture (Agri-Park) and services (public and private). The Metro is also home to three major pharmaceutical manufacturers and is the fourth largest plastic producing area in the country. Main exports include manganese ore; automobiles and CKD (completely knocked down) auto components; deciduous and citrus fruits; wool and mohair; hides and skins. The Mandela Bay Development Agency believes that tourism is a factor that will greatly influence LED as well as exports, housing and construction.
3.1.4 Capacity
Although NMMM has the highest HIV-prevalence (31.20%), it retains one of the highest Resident Participation Capacity, with the highest HDI (0.65), low proportion of child- headed households, high access to health services and professionals, and moderate access to education professionals.
The number of municipal functions performed with capacity, the high managerial experience and staffing capacity, together with a capacitated Economic Development Unit, contributes to the Metro’s top performance on Municipal Capacity.
Functional literacy (82.85%) is the highest in the Province, with the second highest qualification rate and almost one third (30.67%) of the population with at least a matric. Women’s Economic Participation is moderate, where women constitute 47.41% of the EAP and face higher unemployment levels and rate of growth in unemployment than their male counterparts.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 12 Municipalities 4 The Local Development Framework: Camdeboo Local Municipality (EC101)8
The Camdeboo Local Municipality is 7232.68 km2 in extent, consists of 6 wards and will have 11 councillors. According to its vision, “Camdeboo Municipality strives to ensure the development and participation of all its inhabitants within an economically viable and sustainable environment, where equal opportunities are promoted, poverty is uprooted and services provided at an affordable cost within a crime free, healthy, environmentally friendly and well managed administration.”
Identified key development priorities are: Road/transport routes (creation, reparation and maintenance), skills development (especially in farming, building, tourism and customer services sectors), job creation and poverty alleviation. Development priorities are acknowledged as reasonably vague and an economic study is necessary to determine whether tourism is a viable option for development and income flow. Economic Development Plans and Strategies include the establishment of an LED Committee and a Local Business Advice Centre.
4.1 Key Elements of Municipal Competitive Advantage
4.1.1 Infrastructure and Services
Camdeboo’s Communications (transport and telecommunications) infrastructure is moderately developed, with above Provincial average road surfacing (19.86%) and a comparatively high proportion (43.79%) of the population with direct access to telephones. The Municipality has operational rail infrastructure, a municipal airport and other air transport facilities, although it the least proximate to the major economic centre of Port Elizabeth.
The Municipality reflects the highest Quality of Life score in the Province on the basis of basic services provision (water, electricity, sanitation, refuse removal) and housing. While the Municipality does perform above Provincial average on access to clinics, measures of access to hospital beds and education facilities are below average.
On Economic infrastructure Camdeboo falls into the bottom quarter of all municipalities in the Eastern Cape, with five commercial banks and an ECDC industrial property, as well as four post offices, with banking capability.
8 Sources: IDP 2002; MDB 2003 Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 13 Municipalities 4.1.2 “Rules of the Game” (Institutional Environment)
The majority (77.48%) of the Camdeboo population is urbanised and more than half (58.24%) of all residents own their properties, of which around three quarters (76.32%) are paid up owners. Of Camdeboo’s 191 unsettled land claims, 183 are for financial compensation and the remaining eight for land for housing.
The Local Municipality performs somewhat poorly in respect of Crime owing to the higher than Provincial average crime rate (59.10 crimes per 1000 people) and poor police coverage by geographical area. However, police coverage by population is favourable and the crime rate has declined substantially (-7.88%pa) over the past three years. Business-directed crime is somewhat more prominent than stocktheft in the area.
The local economy is concentrated, dominated by the community services sector in terms of both GVA and employment. The cost of doing business in the area is relatively high, considering transaction costs arising through distance, and travel time to major economic centres, and expenditure on transport, communication and finance. Further considerations are the absence of a Telkom service branch in the area, along with moderate access to business service providers and development and financial support institutions, and fair municipal regulatory capacity.
4.1.3 Economic Indicators
Relative to the District’s age structure, Camdeboo has an above average representation of people aged under 20 (41.92%) and over 64 (6.79%) years, with a correspondingly higher dependency ratio (1.64). While unemployment (38.85%) is higher than the District average, the proportion of people living in poverty (37.22%) is lower.
The Municipality’s low Productivity score results from low GDP per worker (formal and informal) and low growth in value creation relative to employment and labour remuneration, whereas skills available to the economy are higher than Provincial average and somewhat lower than the Cacadu average. The relatively low Formal Economy Performance score reflects particularly on the low GDP and employment growth performance, and to a lesser extent on the concentrated local economy. The local economy has experienced a negative shift in share for both GDP and employment contribution, where growth rates for GDP (1.12%pa) and employment (0.91%pa) for the period from 1996 to 2004 have fallen substantially short of the District and Provincial rates. Positive contributory factors are the relatively low financial grant dependence and the positive trade balance.
Camdeboo falls into the top third of all municipalities on Economic Absorption Capacity, considering moderate total disposable income and fairly substantial buying power, although it generates a slightly negative income-expenditure balance.
The local economy claims a comparative advantage in Community Services and Agriculture, for both employment and GDP contribution. Camdeboo also claims an employment advantage in Households (21.07%). In the Agricultural sector, Agriculture and Hunting is the only sub-sector to generate GVA (16.67%) and employment (19.01%). Health and Social Work is the main GVA contributor (14.19%) and Education the dominant employer (13.90%) of the Community Services sub-sectors. Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 14 Municipalities Leading products in Camdeboo include game, sheep and goats. The latter is associated with mohair production, while meat processing is associated with game, largely for the export market, and sheep, for the famous Karoo lamb/mutton. Tourist attractions in the area include the Karoo Nature Reserve and the Valley of Desolation, historical and cultural sites, centred on Graaff-Reinet, the “Owl House” in Nieu-Bethesda, and various outdoor and adventure activities, including hunting opportunities, principally accommodated in the area’s various private reserves.
4.1.4 Capacity
Camdeboo has relatively high Resident Participation Capacity owing to its above average HDI (0.55), favourable access to education and health professionals and services, and low proportion of child-headed households.
Municipal Capacity is amongst the highest in the Province, with a favourable ratio of municipal employees to population and staffed trading, regulatory and planning functions, along with performance of most municipal functions (including all priority 1 functions) with capacity and high managerial experience. While the Municipality claims no local tourism staff, publicity and tourism services are provided by local associations.
Functional literacy (57.59%) is low, but the qualification rate (10.43%) and proportion of residents with at least a matric (22.86%) is higher than the Provincial and District averages. Women’s Economic Participation is somewhat lower than the District average, where women form a slight majority and constitute 47.82% of the EAP and face higher unemployment levels and rate of growth in unemployment than their male counterparts.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 15 Municipalities 5 The Local Development Framework: Blue Crane Route Local Municipality (EC102) 9
The Blue Crane Route (BCR) Local Municipality extends over 9831.03km2, consists of 5 wards and will have 10 councillors. The local vision is of “A municipality that provides a good life for all its citizens through responsible Local Governance; and the creation of an environment for upliftment and sustainable economic growth.” Key development priorities are: To stimulate economic growth and development, improve basic living conditions and reduce unemployment; and to attract tourism, trade and increased stopover.
The Municipality has experienced increased unemployment rates and dependency ratios since 1990. Most income stems from the agricultural industry, which is the most significant employer. Social well-being is linked to economic development, and the tourism industry and investments are prioritised as integral to job creation and general social development. Increased and sustained tourism is arguably only possible through environmental conservation. The tourism industry will be encouraged through promotion of annual events and attractions as well as outdoor activities (hiking trails, fishing, golf course etc).
5.1 Key Elements of Municipal Competitive Advantage
5.1.1 Infrastructure and Services BCR’s Communications (transport and telecommunications) infrastructure is moderately developed, with operational rail infrastructure, a municipal airport and other air transport facilities, a relatively high proportion (30.83%) of the population with direct access to telephones, and proximity to the major economic centre of Port Elizabeth. A limiting factor is that road surfacing (6.86%) is below Provincial average.
While BCR reflects poor access to health facilities, the Municipality claims a moderately high Quality of Life score based on above average performance on basic services provision (water, electricity, sanitation, refuse removal), housing and education facilities. On Economic infrastructure BCR falls into the bottom half of all municipalities in the Eastern Cape, with three commercial banks, five post offices with banking capability, and one SEDA-affiliate (Blue Crane Development Agency).
5.1.2 “Rules of the Game” (Institutional Environment)
9 Sources: IDP 2004; MDB 2003 Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 16 Municipalities The residents of BCR are largely urbanised (69.46%), while only 36.70% of households own their properties. Of BCR’s 33 unsettled land claims, 11 are for financial compensation and the remaining 22 seek land for livestock farming (19) and housing (3). The Local Municipality performs somewhat poorly in respect of Crime owing to the higher than Provincial average crime rate (51.77 crimes per 1000 people) and poor police coverage by geographical area. However, police coverage by population is favourable and the crime rate has declined considerably (-4.24%pa) over the past three years. Livestock-related crime is somewhat more prominent than business-directed crime.
The local economy is concentrated, dominated by the community services sector in terms of GVA and by agriculture in terms of employment. The Municipality is reasonably proximate to the Metro and the cost of doing business in the area is relatively favourable, among the top half of all municipalities in the Province. Contributing factors are the moderate transaction costs arising through distance, and travel time to the major economic centre, and expenditure on transport, communication and finance. Although there is no Telkom service branch in the area and municipal regulatory capacity is fairly limited, there is fair access to business service providers and enterprise and financial support institutions, including tourism and economic development structures.
5.1.3 Economic Indicators
BCR’s age structure resembles that of the District, with below Provincial average representation of people aged under 20 (38.79%) and above average representation of people aged over 64 (6.39%) years, with a somewhat higher than District average dependency ratio (1.53). Unemployment (46.12%) and poverty (55.61%) is lower than the Provincial average, but substantially higher than the District average.
The Municipality’s low Productivity score results from low GDP per worker (formal and informal) and low growth in value creation relative to employment and labour remuneration, whereas skills available to the economy are higher than Provincial average and somewhat lower than the Cacadu average. Formal Economy Performance is somewhat lower than the District average, largely owing to low GDP growth performance, and to a lesser extent on the concentrated local economy. The local economy emerges as leading in the Province, but not nationally, on employment growth performance. The local economy has experienced a marginal positive shift in share for employment contribution, but loss in share of GDP contribution, for the period 1996 to 2004. Positive contributory factors are the relatively low financial grant dependence and the positive trade balance.
The Municipality has moderate Economic Absorption Capacity considering modest total disposable income and buying power, along with a slightly negative income- expenditure balance. High informal sector capacity to generate economic opportunities relative to formal employment coupled with favourable economic multipliers act to boost BCR’s absorption capacity.
The local economy claims a comparative advantage in Agriculture, where the sub- sector of Agriculture and Hunting is the only active sub-sector, generating 27.16% GVA and 46.16% employment. BCR also claims an employment advantage in Households (12.74%) and a GVA advantage in Community Services, dominated by Public Administration and Defence Activities(10.96%) followed by Education (9.64%).
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 17 Municipalities
The Municipality claims a range of leading and potential products, including game, sheep, goats, beef and irrigated field crops (maize, lucerne, and sugar beet). Value- added processing, in respect of meat (including biltong), wool and mohair are clear opportunities. Tourist attractions in the area include, amongst others, private nature reserves and outdoor activities, such as birding, hunting, golfing, and fishing opportunities.
5.1.4 Capacity
The Municipality falls into the top half of all municipalities on Resident Participation Capacity owing to its above Provincial average HDI (0.53), favourable access to health professionals and services, and fairly low proportion of child-headed households. Access to education professionals is, however, well below average.
Municipal Capacity is considerable, with a favourable ratio of municipal employees to population, along with staffed local tourism, street trading and building regulatory functions, and with high managerial experience and the performance of most municipal functions with capacity, including all priority 1 functions but planning.
Functional literacy (52.97%) and the proportion of residents with at least a matric (16.20%) is below average and the qualification rate (8.78%) is marginally higher than Provincial average, but considerably below District average.
Women’s Economic Participation is lower than the Provincial and District averages, where women form a slight majority but constitute only 43.96% of the EAP and face higher unemployment levels and rate of growth in unemployment than their male counterparts.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 18 Municipalities 6 The Local Development Framework: Ikwezi Local Municipality (EC103) 10
Ikwezi covers 4449.70km2 and will have 5 councillors. The vision of the Municipality is to “be recognised as an economically prosperous, self-sustainable and socially responsive Municipality committed to effective and efficient service provision and facilitates empowerment programmes that will result in local residents being self-reliant”. Key development priorities are: Water Supply; Sanitation; LED and Tourism; Electricity; Land and Housing; Transformation and Community Empowerment; Health; Roads, Rail and Stormwater; Safety and Security; Education; Community Facilities; and Disaster Management. Lack of drinking water is identified as the most critical issue facing the Municipality, while improved roads and links between local centres and to adjacent centres (Aberdeen) and the Metro could “provide an economic injection”.
A Tourism Development Plan is in progress and a Local Development Strategy has been developed as part of the IDP to manage and enhance economic development, while an LED Plan and LED Forum are planned for establishment. Development fora are in existence in the Municipality, including the Klipplaat and Jansenville Development Fora. Identified economic features and challenges include: unemployment, poverty and organised crime; reliance on the primary government and transport services sectors, which is seen to be partly due to the lack of infrastructure (water and roads); limited growth potential and limited attractiveness as investment destinations of urban centres; and limited short-term growth opportunities.
Present LED initiatives in the area include a piggery, brick making projects, a shoe factory and KT (a hardwood farm) and attempts are being made to acquire additional land for small scale farming to increase food production and lower poverty levels. A major constraint identified as facing the already established LED projects is that there is not enough investment into these projects and so the projects have difficulty expanding and developing.
6.1 Key Elements of Municipal Competitive Advantage
6.1.1 Infrastructure and Services
Ikwezi’s Communications (transport and telecommunications) infrastructure is among the more developed in the Province, with operational rail infrastructure and air transport facilities, a relatively high proportion (32.86%) of the population with direct access to telephones and favourable cellular coverage, and proximity to the major economic centre of Port Elizabeth. A limiting factor is that road surfacing (6.35%) is below Provincial average.
10 Sources: IDP 2004 & 2005/06; MDB 2003; Ikwezi LED Report 2005; Cacadu District Report November 2005 Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 19 Municipalities
While Ikwezi reflects below Provincial access to education facilities and limited access to health facilities, the Municipality claims a moderately high Quality of Life score based on above average performance on basic services provision (water, electricity, sanitation, refuse removal) and housing.
On Economic infrastructure Ikwezi is among the Province’s least developed municipalities, with two commercial banks and two post offices.
6.1.2 “Rules of the Game” (Institutional Environment)
The largely urbanised (66.31%) Municipality is the top Land/Property Security performer in the Province, where more than half (54.92%) of households own their properties, of which 98.01% are fully paid up owners, and where all of Ikwezi’s 68 unsettled land claims are for financial compensation.
Ikwezi performs moderately well in respect of Crime, although its crime rate (46.54 crimes per 1000 people) is higher than Provincial average and police coverage by geographical area is poor. Police coverage by population is high and the crime rate has dropped significantly (-7.30%pa) over the past three years. Business and livestock related crime is roughly equal.
The local economy is highly concentrated, dominated by Agriculture in terms of both GVA and employment. The Municipality is favourably proximate to the Metro and the cost of doing business in the area places Ikwezi among the top half of all municipalities in the Province. Contributing factors are the moderate transaction costs arising through distance, and travel time to the major economic centre, and expenditure on transport, communication and finance. Although there is no Telkom service branch in the area and municipal regulatory capacity is very limited, there is favourable access to business service providers and particularly to development and financial support institutions.
6.1.3 Economic Indicators
Ikwezi is home to a fair proportion of people aged under 20 (42.33%) and a high proportion of people aged over 64 (7.30%) years, coupled with the highest dependency ratio (2.43) in the District. Unemployment (33.22%) is below the District average, while the proportion of people living in poverty (57.42%) falls between the District and Provincial averages.
The Municipality’s above average Productivity score results principally from higher than average growth in value relative to employment and above Provincial average availability of skills to the formal economy. By contrast, growth in value relative to remuneration growth is poor and GDP per worker (formal and informal) falls between the District and Provincial averages.
Formal Economy Performance is the lowest in the District, particularly on the basis of higher financial grant dependence, poor employment growth performance, and to a lesser extent on the concentrated local economy. The local economy has experienced a marginal negative shift in share for employment and marginal positive shift for GDP Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 20 Municipalities contribution. Growth rates for GDP (1.83%pa) and employment (0.75%pa) for the period from 1996 to 2004 have fallen substantially short of the District and Provincial rates. Economic Absorption Capacity is limited considering the low total disposable income and buying power of the Municipality, although Ikwezi has a marginally positive income- expenditure balance and high capacity informal sector, coupled with an above Provincial average employment multiplier.
The local economy claims a comparative advantage in Agriculture, for both employment and GDP contribution, centred exclusively on the Agriculture and Hunting sub-sector (32.46% GVA and 40.28% employment). Ikwezi also claims an employment advantage in Households (26.68%) and a GVA advantage in respect of Manufacturing, overwhelmingly dominated by the Transport equipment sub-sector (24.82%) and Community Services, centred on Health and Social Work (9.51%). Leading products in Ikwezi include game, sheep and goats. Tourism has potential for expansion and value-adding potential exists in association with the leading agricultural products of goats (mohair), game and sheep (meat processing, and wool).
6.1.4 Capacity
Resident Participation Capacity is buoyed by the above Provincial average HDI (0.53) and low proportion of child-headed households, but is diminished by limited access to education and particularly health professionals and services.
Municipal Capacity is limited, in spite of a favourable ratio of municipal employees to population, owing to limited managerial experience and a relatively low number municipal functions performed with capacity.
Functional literacy (51.70%) is low and the qualification rate (8.07%) and proportion of residents with at least a matric (15.49%) is below the Provincial and District averages. Women’s Economic Participation is lower than the District average, where women form a slight majority but constitute only 40.98% of the EAP and face higher unemployment levels and rate of growth in unemployment than their male counterparts.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 21 Municipalities 7 The Local Development Framework: Makana Local Municipality (EC104) 11
Makana Local Municipality is 4221.97km2 in extent, consists of 12 wards and will have 24 councillors. The administrative centre of the Municipality is the small city of Grahamstown, situated on the N2 between Port Elizabeth and East London. The local vision is that “Makana Municipality shall strive to ensure sustainable, affordable, equitable and quality services in a just, friendly, secure and healthy environment which promotes social and economic growth for all.” Identified development priorities for Makana are: Potable water; Sanitation; Health care (HIV/AIDS, TB and access to health care) and Environmental Health; Education and Training; LED (job creation and poverty alleviation); Roads; Land (redistribution) and all needs including cemeteries; Safety (crime prevention); Emergency services (including Disaster Management); Sport and Recreation; Housing; Electricity and Communication; and Transport (including rail, taxis, bus, and air).
In prioritising LED, the IDP directs activities and projects to the areas of marketing, agriculture, tourism and festivals / conferences. The Municipality is in the process of establishing the Makana Development Agency, while fora are established for Agriculture and Business.
7.1 Key Elements of Municipal Competitive Advantage
7.1.1 Infrastructure and Services
Makana’s Communications (transport and telecommunications) infrastructure is among the most developed in the Eastern Cape, with operational rail infrastructure and air transport facilities, a relatively high proportion (41.86%) of the population with direct access to telephones, favourable cellular coverage, and proximity to the major economic centre of Port Elizabeth. A limiting factor is that road surfacing (11.80%) is below Provincial average.
The Municipality reflects a high Quality of Life score on the basis of above Provincial average access to basic services provision (water, electricity, sanitation, and refuse removal) as well as above average access to clinics, hospital beds and education facilities. Access to adequate shelter is the only measure which the Municipality performs below Provincial average. Of all Infrastructure and Services measures, Makana performs most poorly on Economic infrastructure, with three commercial banks and a registered local bank (GBS), eight post offices with banking capability, a Rural Development Support facility and two SEDA-affiliates (Rhodes University Department of Management; and Umthathi Training Project).
11 Sources: IDP 2004; MDB 2003; Makana Annual Financial Statements 2004; Makana Budget 2005/06 Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 22 Municipalities
7.1.2 “Rules of the Game” (Institutional Environment)
Makana is overwhelmingly urbanised (82.94%), while only 35.68% of households own their properties. Of Makana’s 27 unsettled land claims, 26 are for financial compensation and the remaining claim is for land for housing. The Local Municipality performs somewhat poorly in respect of Crime owing to the high crime rate (97.02 crimes per 1000 people), which has grown (3.36%pa) over the past three years. Livestock and business directed crime is roughly equal in prevalence. Factors which buoy Makana’s crime score are the favourable police coverage, both by geographical area and by population.
The local economy is concentrated, dominated by Community Services in terms of both GVA and employment. The Municipality is fairly proximate to the Metro and Makana is among the top third of all municipalities in the Province on the cost of doing business. Contributing factors are the moderate transaction costs arising through distance, and travel time to the major economic centre, and expenditure on transport, communication and finance. The Municipality has a Telkom service branch in the area and has favourable access to business service providers and development and financial support institutions. Municipal regulatory capacity is considerable, although noted for high tariffs, slow processing of development applications and “red tape”.
7.1.3 Economic Indicators
Makana’s age structure resembles that of the District, with below Provincial average representation of people aged under 20 years (35.18%). The rate of unemployment (40.80%) is comparatively low, while the percentage of people living in poverty (48.96%) is somewhat higher than the District average.
The Municipality’s low Productivity score results principally from low GDP per worker (formal and informal) and low growth in value creation relative to employment and labour remuneration, whereas skills available to the economy is higher than the Provincial average. Employment growth from 1996 to 2004 is the highest in the District and growth in GDP is higher than the Provincial average.
Formal Economy Performance is substantially higher than the District average, owing largely to low financial grant dependence and the strength of employment growth performance. Although the local economy has suffered a marginal loss in GDP share from 1996 to 2004, it has retained its status as a leading economy in the Province for GDP contribution. The local economy has experienced a positive shift in share for employment contribution and emerges as leading in the Province and nationally on employment growth performance.
The Municipality has moderate Economic Absorption Capacity considering a slightly negative income-expenditure balance and total disposable income and buying power which, in spite of being among the highest in the District, fall below Provincial average. High informal sector capacity to generate economic opportunities relative to formal employment coupled with favourable economic multipliers, act to boost Makana’s absorption capacity.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 23 Municipalities The local economy claims a comparative advantage, for both employment and GDP contribution, in Agriculture (dominated by Agriculture and Hunting at 14.46% GVA; and 23.38% employment) and Community Services (dominated by Education at 19.11% GVA and 18.49% employment). Makana also claims an employment advantage in Households (11.31%) and a GVA advantage in Electricity, exclusively in the Electricity supply (2.92%) sub-sector.
The Municipality claims a range of leading and potential products including game, beef, goats, and flowers as well as local mining products (kaolin) with associated value-adding opportunities in meat, wool, mohair and ceramics. Seasonal tourism is dominant, centred on the internationally renowned Grahamstown Arts Festival, while other attractions include public nature reserves, private game reserves and outdoor adventure activities, such as sky-diving, hunting, hiking and fishing, and there is potential for further development of cultural and heritage tourism products.
7.1.4 Capacity
Makana claims a high Resident Participation Capacity owing to its HDI (0.59), highly favourable access to education and health professionals and services, and comparatively low proportion of child-headed households.
Municipal Capacity is considerable, with a favourable ratio of municipal employees to population and staffed local tourism, trading, regulatory and planning functions, along with performance of most municipal functions (including all priority 1 functions) with capacity, and relatively high managerial experience.
The Municipality is one of the top performers on Resident Skills Capacity, where functional literacy (69.17%) is relatively high and the Municipality claims the highest qualification rate (15.36%) and highest proportion of residents with at least a matric (31.48%) in the Eastern Cape. Women’s Economic Participation is above average, where women form a slight majority and constitute 50.86% of the EAP and while women face higher unemployment levels and rate of growth in unemployment than their male counterparts, the rate of growth in women’s unemployment (in both absolute and relative terms) is slightly below the Provincial growth rate.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 24 Municipalities 8 The Local Development Framework: Ndlambe Local Municipality (EC105) 12
The Local Municipality is 2000.81km2 in extent, consists of 9 wards and will have 17 councillors. “Ndlambe Municipality strives to be a growing and investment-friendly region that provides sustainable, efficient, cost-effective, adequate and affordable services to all citizens in a healthy and safe environment.” Key development priorities are identified as: Water; Health; Extension of municipal buildings; Roads; Electricity; Tourism; Recreational facilities; Environmental management; Needs of the disabled; Bursaries; Land and Housing; Security; Economic Development; and Education.
Port Alfred is the administrative centre of the Municipality and is serviced with tarred roads leading to most other centres. Agriculture and tourism are major economic contributors, yet unemployment and poverty still remain areas that needs to be addressed. A lack of infrastructure, specifically basic services, is said to be the Municipality’s biggest challenge. Inadequate funds and low institutional capacity are making Ndlambe’s development needs more difficult to achieve. Tourism, LED institutions, upgrading of the road system, environmental management and skills development are prioritised.
8.1 Key Elements of Municipal Competitive Advantage
8.1.1 Infrastructure and Services
Ndlambe’s Communications (transport and telecommunications) infrastructure is among the more developed in the Eastern Cape, with air transport facilities and a municipal marina, a relatively high proportion (39.03%) of the population with direct access to telephones, favourable cellular coverage, above Provincial average surfacing of roads (18.47%), and proximity to the major economic centre of Port Elizabeth.
While Ndlambe reflects poor access to adequate shelter and particularly to hospital beds, the Municipality claims a moderately high Quality of Life based on above average performance on access to basic services (water, electricity, sanitation, and refuse removal), clinics and schools.
Of all Infrastructure and Services measures, Ndlambe performs most poorly on Economic infrastructure, with eight commercial banks and 11 post offices with banking capability.
12 Sources: IDP 2002; MDB 2003 Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 25 Municipalities 8.1.2 “Rules of the Game” (Institutional Environment)
Ndlambe is largely urbanised (67.69%) and only 40.03% of households own their properties, of which most (73.01%) are fully paid up owners. All of Ndlambe’s 24 unsettled land claims are for land for “other fruit”.
The Local Municipality performs among the top quarter of all Provincial municipalities in respect of Crime in spite of its relatively high crime rate (67.87 crimes per 1000 people), which has grown (2.18%pa) over the past three years. Livestock and business directed crime is roughly equal in prevalence. High coverage of police stations, both in terms of geographical area and by population, boosts Ndlambe’s crime score.
The local economy is one of the most diversified in the Province, but it is dominated by Agriculture in terms of both GVA and employment. The Municipality is fairly proximate to the Metro and Ndlambe falls into the top half of all municipalities in the Province on the cost of doing business in the area. Contributing factors are the moderate transaction costs arising through distance, and travel time, to the major economic centre, moderate expenditure on communication and finance and below average expenditure on transport. There is a Telkom service branch in the area and access to business service providers and development and financial support institutions is favourable, while municipal regulatory capacity is fair.
8.1.3 Economic Indicators
Ndlambe has an aging population, with the second highest proportion of people aged over 64 years (8.55%) in the Province and below average representation of people aged under 20 years (35.46%). The rate of unemployment (38.84%) is comparatively low, while the percentage of people living in poverty (62.78%) is approaching the Provincial average.
Municipal Productivity is higher that the District average, although it is slightly below Provincial average. Ndlambe reflects higher than District average GDP per worker (formal and informal) and growth in value creation relative to employment and labour remuneration. Growth in GDP and employment, from 1996 to 2004, and skills available to the local economy, are higher than the Provincial average, but lower than the District average.
Formal Economy Performance is higher than the District average, owing to low financial grant dependence, above average economic diversity, and the strength of GDP and employment growth performance. The local economy has experienced a positive shift in share for employment and GDP from 1996 to 2004 and is a leading economy for GDP contribution in the Eastern Cape, and a leading employment economy in the Province and nationally.
The Municipality has high Economic Absorption Capacity considering relatively high informal sector capacity to generate economic opportunities relative to formal employment and high economic multipliers. Limiting factors are the negative income-expenditure balance and moderate total disposable income and buying power.
The local economy claims a comparative advantage in Agriculture, for both employment and GDP contribution, dominated by the Agriculture and Hunting sub-sector (26.67% Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 26 Municipalities GVA and 42.39% employment). Ndlambe also claims an employment advantage in Households (12.19%) and a GVA advantage in Construction (2.80%). T he Municipality is well known for its pineapple production and processing (juice) and for its coastal tourist destinations, centred on Port Alfred and Kenton-on-Sea. In addition to tourism and pineapples, leading products include game, dairy, chicory and essential oils. Tourism activities and products include cultural and heritage tours, crafts and fine arts, private reserves game, hiking and hunting, golfing, fishing and deep sea diving, and various other outdoor and adventure activities.
8.1.4 Capacity
Ndlambe claims a moderate Resident Participation Capacity, with slightly below average HDI (0.51) and a comparatively low proportion of child-headed households, coupled with limited access to education and health professionals and services.
Municipal Capacity is buoyed by the relatively high number of municipal functions (including all priority 1 functions) performed with capacity, high managerial experience, and a favourable ratio of municipal employees to population together with staffed local tourism, trading, regulatory and planning functions.
The Municipality has moderate Resident Skills Capacity, with low functional literacy (54.02%) and a below average proportion of residents with at least a matric (17.97%), while the Municipality claims a marginally higher qualification rate (8.74%) than the Provincial average, albeit substantially lower than the District average. Women’s Economic Participation is above average, where women form a slight majority and constitute 47.01% of the EAP and while women face higher unemployment levels and rate of growth in unemployment than their male counterparts, the rate of women’s unemployment (46.35%) is below the Provincial average and slightly higher than the District average.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 27 Municipalities 9 The Local Development Framework: Sunday’s River Valley Local Municipality (EC106) 13
Sunday's River Valley (SRV) consists of seven wards, extends over 3507.61km2, and will have 13 councillors. The Municipal vision is of a “transformed and integrated organisation which subscribes to the principles of developmental Local Government which provides a sustainable quality of life including a safe and healthy environment for all our communities, especially the poor and rural communities.” Identified key development priorities are: Economic development; Land; Housing; Infrastructure; Health; Education; Social development; Environment and Protection services. Job creation, skills development, tourism and seeking funding are integral to development, as are the improvement of transport routes and networks in aiding tourism and agriculture. LED Programmes are in line with those of the Cacadu district.
A large proportion of the population is unable to pay for municipal services, which in turn limits the Municipality’s economic viability. Accordingly, the level of services which people can actually afford needs to be identified. Conservation efforts in Addo Elephant Park, Shamwari and other private reserves have apparently had a negative effect on employment and urbanisation, although attempts at attracting tourists to the area have been linked with economic development.
9.1 Key Elements of Municipal Competitive Advantage
9.1.1 Infrastructure and Services
SRV’s Communications (transport and telecommunications) infrastructure is moderately developed, with operational rail infrastructure, above Provincial average surfacing of roads (17.58%), close proximity to the major economic centre of Port Elizabeth, and favourable cellular coverage. A below average proportion (26.18%) of the population has direct access to telephones.
The Municipality emerges with the lowest Quality of Life score in Cacadu based on poor access to health services and facilities, and below Provincial average access to adequate shelter. By contrast, performance in terms of access to basic services (water, electricity, sanitation, and refuse removal) and education facilities is above Provincial average. On Economic infrastructure SRV falls into the bottom half of all municipalities in the Eastern Cape, with four commercial banks and six post offices, with banking capability.
13 Sources: IDP 2003/04; MDB 2003 Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 28 Municipalities 9.1.2 “Rules of the Game” (Institutional Environment)
More than half (54.78%) of all SRV residents are urbanised, while only 31.93% of households own their properties, of which most (70.78%) are fully paid-up owners. Of SRV’s 39 unsettled land claims, only four are for financial compensation and the remaining 35 seek land for livestock (34) and conservation / game (1) farming.
The Local Municipality performs moderately in respect of Crime where the crime rate is high (98.22 crimes per 1000 people), but has declined significantly (-5.47%pa) over the past three years, and where police coverage, both by geographical area and by population, is above Provincial average. Livestock and business directed crime is roughly equal in prevalence.
The local economy is concentrated, centred on Agriculture in terms of both GVA and employment. The Municipality adjoins the Metro and SRV and is among the top third of all municipalities in the Province on the cost of doing business in the area. Contributing factors are the moderate transaction costs arising through distance, and travel time, to the major economic centre, and expenditure on transport, communication and finance. The Municipality has no Telkom service branch in the area and access to development and financial support institutions and business service providers is fairly limited, as is the regulatory capacity of the Municipality.
9.1.3 Economic Indicators
SRV has the lowest proportion of people aged under 20 years (34.82%), after the Metro, in the Eastern Cape. However, the rate of unemployment (43.15%) and of poverty (54.23%) is substantially higher than the District average.
Municipal Productivity is higher than the District and Provincial averages, principally due to high growth in value creation relative to employment and labour remuneration. Growth in GDP and employment, from 1996 to 2004, and skills available to the local economy, are higher than the Provincial average, while GDP per worker (formal and informal) is the lowest in Cacadu and second lowest in the Eastern Cape.
The Municipality reflects moderate Formal Economy Performance, with positive factors including the positive trade balance, relatively low financial grant dependence, and strong GDP and employment growth performance. The local economy has experienced a positive shift in share for employment and a slight loss in share of GDP from 1996 to 2004, but is a leading economy for both employment and GDP contribution in the Eastern Cape.
The Municipality falls into the top quarter of all municipalities on Economic Absorption Capacity considering relatively high informal sector capacity to generate economic opportunities relative to formal employment and high economic multipliers. The Municipality has modest total disposable income and buying power, together with a negative income-expenditure balance.
The local economy claims a comparative advantage in Agriculture, for both employment and GDP contribution, exclusively generated by the Agriculture and Hunting sub-sector (30.22% GVA and 61.83% employment). SRV also claims GVA advantages in Electricity Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 29 Municipalities (exclusively in Electricity supply at 2.71%), Trade (centred on Retail trade at 17.57%) and Community Services (dominated by Public administration at 16.19%). Leading products of the local economy include game and tourism, deciduous and notably citrus fruit, lucerne and flowers. The Municipality has been dubbed the “Valley of Elephants, Citrus and Roses”, with the renowned Addo Elephant National Park and various game and nature reserves, and boasting annual citrus, rose and wildlife festivals. Tourism activities and products include historical and heritage sites, cultural dancing, birding and game viewing, hiking, horse-riding, abseling, and hunting, fishing and various other outdoor and adventure activities.
9.1.4 Capacity
While the municipality has a comparatively low proportion of child-headed households, Resident Participation Capacity is low due to below average HDI (0.49) and limited access to health and particularly education professionals and services. The Municipality has moderate Resident Skills Capacity, with low functional literacy (53.05%), a below average proportion of residents with at least a matric (13.69%) and a very low qualification rate (4.30%). Women’s Economic Participation is limited where women constitute 46.13% of the EAP and face higher unemployment levels and rate of growth in unemployment than their male counterparts. Notably, the Municipality is one of only two in the Eastern Cape where men outnumber women.
Municipal Capacity is moderate given the below average ratio of municipal employees to population and the performance of a fair number of municipal functions with capacity, including all priority 1 functions but fire fighting. Capacity is buoyed by relatively high managerial experience and staffed local tourism, building regulatory and planning functions.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 30 Municipalities 10 The Local Development Framework: Baviaans Local Municipality (EC107) 14
Baviaans Local Municipality extends over 7724.07km2 and will have 5 councillors. The vision of the Municipality is to strive for the objective of a prosperous community in a safe environment in which basic service delivery is guaranteed and where decision-making is based on maximum participation of the community. Key development priorities are: Economic development; Health care services; Basic infrastructure; Educational facilities; Recreational facilities; Welfare facilities; Safety and Security; and Disaster Management.
The provision and maintenance of infrastructure has been identified as the Municipality’s largest challenge and appropriate infrastructure is needed for the agricultural industry. Access to land is a big problem as almost all areas require additional land for both urban expansion and commonage purposes. Currently agriculture, tourism and the service industry form the basis of the economy with agriculture being the single biggest economic contributor. LED programmes are in place with tourism efforts targeted specifically at the Tsitsikamma and Langkloof areas. Conservation efforts have been linked to the sustained well-being of local populations, and transport routes need to be upgraded in order to link identified development nodes.
10.1 Key Elements of Municipal Competitive Advantage
10.1.1 Infrastructure and Services
While Baviaans has operational rail infrastructure and air transport facilities, the Municipality’s Communications (transport and telecommunications) infrastructure is the least developed in the District. The Municipality is relatively proximate to the major economic centre of Port Elizabeth, while cellular coverage, direct telephone access (33.47%) and road surfacing (13.08%) are below Provincial average.
The Municipality is among the top performers in the Province on the Quality of Life score, based on above average access to basic services (water, electricity, sanitation, refuse removal) and adequate shelter, as well as health and education facilities.
On Economic infrastructure Baviaans falls into the bottom half of all municipalities in the Eastern Cape, with one commercial bank and six post offices, with banking capability.
14 Sources: IDP 2002; MDB 2003 Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 31 Municipalities 10.1.2 “Rules of the Game” (Institutional Environment)
More than half (57.01%) of all Baviaans’ residents are urbanised and 45.05% of households own their properties, of which the majority (88.77%) are fully paid-up owners. Baviaans has only two unsettled land claims, both of which are for financial compensation.
The Local Municipality performs moderately in respect of Crime where the crime rate is high (95.60 crimes per 1000 people), but has declined considerably (-3.40%pa) over the past three years. Police coverage relative to population size is high although coverage by geographical area is unfavourable. Livestock and business directed crime is roughly equal in prevalence.
The local economy is highly concentrated, dominated by Agriculture in terms of both GVA and employment. The Municipality is relatively proximate to the Metro, but Baviaans emerges as the lowest performer of all municipalities in the Province on the cost of doing business in the area. Contributing factors are the transaction costs arising through travel time to the major economic centre, and above average expenditure on communication and finance. In addition, the Municipality has no Telkom service branch in the area, while access to development and financial support institutions and business service providers is moderate and Municipal regulatory capacity is the lowest in the District.
10.1.3 Economic Indicators
Baviaans has the youngest population in Cacadu, with 44.47% of residents aged under 20 (38.79%), but also has a fair proportion of people aged over 64 (6.14%) years, and an above District average dependency ratio (2.06). Unemployment (29.84%) and poverty (41.73%) are lower than Provincial and District averages.
The Municipality’s low Productivity score results from low GDP per worker (formal and informal) and low growth in value creation relative to employment and labour remuneration, whereas skills available to the economy are higher than Provincial average and somewhat lower than the Cacadu average. Formal Economy Performance is lower than the District average, owing to a concentrated local economy and low GDP growth performance. The local economy emerges as leading in the Province on employment growth performance. The local economy has experienced a marginal positive shift in share for employment contribution, but loss in share of GDP contribution, for the period 1996 to 2004. Positive factors are the relatively low financial grant dependence and the positive trade balance.
The Municipality has modest Economic Absorption Capacity considering moderately low total disposable income and low buying power, along with negative income- expenditure balance and limited economic multipliers. High informal sector capacity to generate economic opportunities relative to formal employment does bolster the local economy’s absorption capacity somewhat.
The local economy claims a comparative advantage, for both employment and GDP contribution, in Agriculture (dominated by Agriculture and Hunting at 44.46% GVA and 52.61% employment) and Community Services (dominated by Education at 16.91% GVA Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 32 Municipalities and 13.49% employment). Baviaans also claims an employment advantage in Households (11.07%).
The Municipality claims a range of leading and potential products, including game, sheep, forestry, and deciduous fruit and tourism, particularly in the Langkloof area, known as the “Valley of A thousand Vistas” or “fruit route”. Tourist attractions in the area include, amongst others, Khoisan sites and rock art, game and nature reserves and various outdoor activities, such as birding, fishing, hiking, and biking opportunities.
10.1.4 Capacity
Baviaans has moderate Resident Participation Capacity, with above Provincial average HDI (0.53), a fairly low proportion of child-headed households and favourable access to education professionals, but with below average access to health professionals and services.
The below average ratio of municipal employees to population and limited number of municipal functions performed with capacity limits Municipal Capacity despite relatively high managerial experience and some capacity evidenced by staffed local tourism, building regulatory and planning functions.
Functional literacy (54.41%) is low and the proportion of residents with at least a matric (16.97%) is below average, although the qualification rate (9.13%) is higher than the Provincial average, but lower than the District average. Women’s Economic Participation is below the District average, where women form a slight majority and constitute merely 35.73% of the EAP and face higher unemployment levels and rate of growth in unemployment than their male counterparts.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 33 Municipalities 11 The Local Development Framework: Kouga Local Municipality (EC108) 15
The Kouga Local Municipality extends over 2417.42km2, consists of 10 wards and will have 19 councillors. The Municipal vision is of “Kouga, the jewel of the Eastern Cape, striving, through impeccable people centred service delivery and sustainable development to ensure equity, harmony and prosperity for all its people.” Identified key development priorities are: Job creation through economic development and the extension of the tourism industry; Addressing land shortages; Upgrading infrastructure; and Addressing poor education facilities.
Kouga enjoys sub-tropical weather conditions and an aesthetically pleasing coastline making outdoor tourist attractions and increased agriculture potential areas for economic growth. Kouga includes Jeffreys Bay, St Francis Bay, Cape St Francis and Oyster Bay which are national and regional tourist attractions. To extend and maintain the tourist industry, roads in mid-high income areas need improvements. Additional land is required for communal farming purposes, which would provide job opportunities for the unemployed, low-skilled population. The Gamtoos River Valley has been identified as having high agricultural potential and the Wetlands areas contain high species diversity, sensitive to agricultural activities and development. Economic development, through employment opportunities, environmental conservation and the tourism industry, is one of the Municipality’s top priorities.
11.1 Key Elements of Municipal Competitive Advantage
11.1.1 Infrastructure and Services
Kouga’s Communications (transport and telecommunications) infrastructure is among the most developed in the Province, with operational rail infrastructure, a municipal pontoon, municipal airport and other air transport facilities, above Provincial average road surfacing (26.70%), favourable cellular coverage and a relatively high proportion (46.24%) of the population with direct access to telephones, and close proximity to the major economic centre of Port Elizabeth. On Economic infrastructure Kouga falls into the top quarter of all municipalities in the Eastern Cape, with nine commercial banks and 19 post offices with banking capability.
While Kouga reflects limited access to adequate shelter, health and education facilities, the Municipality falls into the top third of all Provincial municipalities on the Quality of
15 Sources: IDP 2002 & 2003; MDB 2003 Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 34 Municipalities Life score based on comparatively high levels of access to basic services (water, electricity, sanitation, refuse removal).
11.1.2 “Rules of the Game” (Institutional Environment)
The residents of Kouga are largely urbanised (60.19%), while almost half (47.81%) of all households own their properties, of which the majority (86.98%) are fully paid-up owners. Of Kouga’s 167 unsettled land claims, 132 are for financial compensation and the remaining 35 seek land for livestock (31), “other crops” (2) and citrus farming (1) and for housing (1).
The Municipality falls into the top third of all Provincial municipalities in respect of Crime with favourable police coverage by both population size and geographical area, although the crime rate (60.75 crimes per 1000 people) is above Provincial average and has declined (-1.17%pa) less substantially than the Provincial average (-253%pa) over the past three years. Livestock and business directed crime are comparable in the area.
Kouga claims the most diversified local economy in the Eastern Cape, with community services emerging as most significant in terms of GVA and agriculture in terms of employment. The Municipality is the most proximate, of all local municipalities, to the Metro and the cost of doing business in the area is favourable considering low transaction costs arising through distance, and travel time, to the major economic centre, and moderate expenditure on transport, communication and finance. Although there is no Telkom service branch in the area, municipal regulatory capacity and access to business service providers is fair and access to development and financial support institutions is favourable.
11.1.3 Economic Indicators
Kouga has a low proportion of people aged under 20 years (34.99%) and a fair proportion of people aged over 64 (6.10%) years. The Municipality is a top performer in the Eastern Cape with low rates of dependency (1.29), unemployment (24.67%) and poverty (31.36%).
Municipal Productivity is higher than the District and Provincial averages, principally due to high growth in value creation relative to employment and labour remuneration. Growth in GDP and employment, from 1996 to 2004, and skills available to the local economy, are higher than the Provincial average, while GDP per worker (formal and informal) is the lowest in Cacadu and second lowest in the Eastern Cape.
Kouga has among the highest Formal Economy Performance scores, with positive factors including the positive trade balance, a fairly diversified economy, low financial grant dependence, and strong GDP and employment growth performance. The local economy has experienced a positive shift in share for employment and GDP from 1996 to 2004, and is one of only two municipalities in the Province to emerge as a leading economy in respect of both GDP and formal employment, Provincially and nationally. The Municipality fares well on Economic Absorption Capacity considering high total disposable income, employment multiplier and informal sector capacity to generate economic opportunities relative to formal employment. The Municipality has modest buying power and a somewhat negative income-expenditure balance. Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 35 Municipalities
The local economy claims a comparative advantage, for both employment and GDP contribution, in Agriculture (centred on Agriculture and Hunting at 9.87% GVA and 27.99% employment) and Construction (6.18% GVA and 10.42% employment). Kouga also claims GVA advantages in Utilities (Electricity supply 1.82% and Water 1.45%), Trade (centred on Retail trade at 9.03%) and Community Services (dominated by Public administration at 6.69%).
Leading products of the local economy include game and tourism, deciduous fruit and dairy. The Municipality is home to a string of popular coastal tourist destinations from Jeffreys Bay to Cape St. Francis, and offers a wide range of activities and products including historical and heritage sites, the Kouga Cultural Centre, surfing, fishing, hiking, biking and sandboarding, birding and game viewing, and various other outdoor and adventure activities.
1.3.1.1 Capacity While the municipality has a comparatively low proportion of child-headed households and a high HDI (0.60), Resident Participation Capacity is moderate due to limited access to health and particularly education professionals and services. The Municipality has comparatively high Resident Skills Capacity, with above average rates of functional literacy (66.47%), qualification (11.37%) and proportion of residents with at least a matric (24.03%). Women’s Economic Participation is above average although women constitute only 40.50% of the EAP and face higher unemployment levels and rate of growth in unemployment than their male counterparts. Notably, the Municipality is one of only two in the Eastern Cape where men outnumber women.
Kouga is one of the top performers on Municipal Capacity in the Eastern Cape, with its high ratio of municipal employees to population, high managerial experience and the performance of a high number of municipal functions (including all priority 1 functions) with capacity, and staffed trading and planning functions. While the Municipality claims no local tourism staff, publicity and tourism services are provided by local associations.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 36 Municipalities 12 The Local Development Framework: Kou-Kamma Local Municipality (EC109) 16
Kou-Kamma extends over 3575.17km2, consists of 4 wards and will have 8 councillors. Kou-kamma envisions striving “to be a vibrant and responsibly managed area, which has an integrated, democratic community supported by a strong and a sustainable economy.” Key development priorities are identified as: Economic development and empowerment; Education; Health; Basic services; Security and Justice; Community services; Safety; Sport and Recreation facilities; and Institutional reform.
The area’s biggest asset is the natural environment and its main economic activities include farming, forestry and tourism. The tourism industry has great potential for high economic growth. Langkloof, identified by the Cacadu LED Programme as an area where tourism efforts should be focused, still experiences high levels of poverty despite having one of the lowest unemployment rates in the country since employment opportunities are limited to the peak tourist seasons. Through LED initiatives, Kou-Kamma plans to create 120 temporary jobs annually and 850 permanent jobs by 2007. Major development challenges include low cost housing and basic services provision, and safeguarding the environment. In addition, priority is assigned to securing land for Municipal social and economic development before entering into lease agreements and losing land, as has happened with a private forestry company.
12.1 Key Elements of Municipal Competitive Advantage
12.1.1 Infrastructure and Services
Kou-Kamma’s Communications (transport and telecommunications) infrastructure is among the more developed in the Eastern Cape, with operational rail infrastructure and air transport facilities, a relatively high proportion (33.36%) of the population with direct access to telephones, favourable cellular coverage, above Provincial average surfacing of roads (27.36%), and proximity to the major economic centre of Port Elizabeth.
While the Municipality reflects below average access to adequate shelter, the Municipality claims a moderately high Quality of Life based on above average performance on access to basic services (water, electricity, sanitation, refuse removal), clinics and schools.
Of all Infrastructure and Services measures, Kou-Kamma performs most poorly on Economic infrastructure, with five commercial banks and eight post offices with banking capability.
16 Sources: IDP 2004/05; MDB 2003 Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 37 Municipalities
12.1.2 “Rules of the Game” (Institutional Environment)
Kou-Kamma is the only predominantly rural municipality in the District, with only one quarter (25.45%) of the population being urbanised. The Municipality has the lowest level of property ownership, applicable to only 29.76% of households, of which most (88.16%) are fully paid up owners. Kou-kamma has only one unsettled land claim for livestock farming.
Kou-Kamma records the highest crime rate (160.92 crimes per 1000 people) in the Province. However, this rate has declined considerably (-3.62%pa) over the past three years and while police station coverage by geographical area is below average, police coverage relative to population size, is high. Livestock and business directed crime is roughly equal in prevalence.
The local economy is concentrated, dominated by Agriculture in terms of both GVA and employment. The Municipality is relatively proximate to the Metro and falls into the top half of all Provincial municipalities on the cost of doing business. Contributing factors are the moderate transaction costs arising through distance, and travel time, to the major economic centre, moderate expenditure on communication and below average expenditure on transport and finance. The Municipality has no Telkom service branch in the area, but access to development and financial support institutions and business service providers is relatively high, as is Municipal regulatory capacity.
12.1.3 Economic Indicators
Kou-Kamma has a fairly young population, with 38.38% of residents aged under 20 and only 4.90% aged over 64 years. However, the Municipality claims the lowest dependency ratio (0.81) and lowest rates of unemployment (5.93%) and poverty (31.33%) in the Eastern Cape. Kou-kamma unsurprisingly emerges as the top performer in the Province on the Poverty and Dependency score. The Municipality’s Productivity score is bolstered by the skills available to the economy – the highest in the Province, indicating the most skilled labour force – and high growth in value creation relative to employment. GDP per worker (formal and informal) and growth in value creation relative to labour remuneration are lower than both the District and Provincial averages. Formal Economy Performance is roughly equal to the District average and reflects no dependence on financial grants and a positive trade balance. In spite of above average GDP growth (2.51%pa) from 1996 to 2004, the local economy has experienced a loss in share of GDP contribution, but a positive shift in share of employment contribution and the local economy emerges as leading in the Province on employment growth performance. The Municipality fares well on Economic Absorption Capacity considering high economic multipliers and moderate informal sector capacity to generate economic opportunities relative to formal employment. However, the income- expenditure balance is negative and total disposable income and buying power is limited. The local economy claims a comparative advantage, for both employment and GDP contribution, in Agriculture, which is dominated by the Agriculture and Hunting sub-sector (49.39% GVA and 68.29% employment). The Municipality claims a range of leading and potential products, including forestry, dairy, essential oils and flowers (Proteas). Tourism potential is high, where Kou-kamma is home to the Tsitsikamma National Park, a marine Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 38 Municipalities reserve and “garden of the Eastern Cape”. Tourist attractions in the area include, amongst others, Khoisan sites and rock art, the highest commercial bungy jump in the world, hiking, scuba diving, fishing, birding, and various other outdoor and adventure activities.
12.1.4 Capacity
Kou-Kamma claims a relatively low Resident Participation Capacity owing to its below average HDI (0.51) and limited access to education and health professionals and services, and comparatively low proportion of child-headed households.
Municipal Capacity is considerable, with the highest ratio of municipal employees to population and with staffed local tourism, trading, regulatory and planning functions, along with relatively high managerial experience and performance of most municipal functions (including all priority 1 functions, but health services) with capacity.
The Municipality reflects fairly limited Resident Skills Capacity, with below average functional literacy (52.80%), low qualification rate (5.59%) and below average proportion of residents with at least a matric (16.05%). The Municipality is the top performer in the Eastern Cape on Women’s Economic Participation, where women form a marginal majority and constitute 41.09% of the EAP. While women face higher unemployment levels and rate of growth in unemployment than their male counterparts, the difference in unemployment growth between men and women is the closest in the Eastern Cape and the rate of absolute growth in women’s unemployment is well below the Provincial growth rate.
Annexure 1: District & Metro Profile: Cacadu District (DC10) and Nelson Mandela Metropolitan 39 Municipalities