08/52 ZF MGCAWU DISTRICT NORTHERN CAPE
ZF MGCAWU is known for the Kgalagadi Transfrontier Park.
2 PROFILE: ZF MGCAWU DISTRICT
PROFILE: ZF MGCAWU DISTRICT 3
CONTENT
1. Executive Summary ...... 6 2. ZF Mgcawu District Overview ...... ……………..7 2.1. Historical Perspective ...... 7 2.2. Location ...... 7 2.2.1. Dawid Kruiper Local Municipality ...... 8 2.2.2. Kai! Garib Local Municipality ...... 8 2.2.3. !Kheis Local Municipality ...... 9 2.2.4. Kgatlelopele Local Municipality ...... 9 2.2.5. Tsantsabane Local Municipality...... 9 2.3. Spatial Status ...... 10 2.4. Land Ownership ...... 11 3. Social Development Profile ...... 12 3.1. Key Social Demographics ...... 12 3.1.1. Population ...... 12 3.1.2. Race, Gender and Age ...... 13 3.1.3. Households ...... 15 3.2. Health Profile ...... 15 3.3. Covid-19 ...... 16 3.4. Poverty DImensions ...... 18 3.5. Inequality ...... 19 3.6. Employed/Unemployed ...... 19 3.7. Crime ...... 21 3.8. Education and Skills ...... 22 4. Drivers of the Economy ...... 24 4.1. Structure of the Economy ...... 24 4.2. Primary Sector ...... 25 4.3. Secondary Sector ...... 26 4.4. Tertiary Sector ...... 26 4.5. Informal Economy ...... 27 5. Service Delivery ...... 27 5.1. Water ...... 27 5.2. Human Settlements ...... 28 5.3. Sanitation ...... 28 5.4. Waste Management ...... 29 5.5. Roads and Transport ...... 30 5.6. Electricity ...... 31 6. GOVERNANCE AND MANAGEMENT ...... 31 6.1. Municipality performance ...... 31 6.2. Municipal Capacity ...... 31 6.3. Traditional Affairs Governance ...... 32 7. PROJECTS TO DIVERSIFY AND GROW PEOPLE AND THE ECONOMY ..... 32 7.1. Spatial Development ...... 33 7.2. Infrastructure Projects ...... 33 7.3. Social Development Projects ...... 34 4 PROFILE: ZF MGCAWU DISTRICT
7.4. Economic Projects ...... 34 7.5. Environmental Forecast ...... 34 8. KEY RECOMMENDATIONS ...... 35 8.1. Prioritise Integrated Development Plan ...... 35 8.2. Investor and Sponsorship Opportunities ...... 35
PROFILE: ZF MGCAWU DISTRICT 5
6 PROFILE: ZF MGCAWU DISTRICT
1. Executive Summary
ZF Mgcawu District Municipality is located in the mid-north of the Northern Province. It covers a total area of more than 102 000 square kilometres and over 27% of the Northern Province area. With a land size of 102 484 km2, ZF Mgcawu is the third largest district in South Africa, after Pixley ka Seme and Namakwa, both also Noprthern Cape Districts.
With 284 375 people, the ZF Mgcawu District Municipality housed 0.5% of South Africa's total population in 2019. Between 2008 and 2018 the population growth averaged 1.53% per annum which is similar than the growth rate of South Africa as a whole (1.57%). Compared to Northern Cape's average annual growth rate (1.66%), the growth rate in ZF Mgcawu's population at 1.51% was very similar than that of the province.
On 17 June 2020, the total number of confirmed Coronavirus COVID-19 cases in the Northern Cape was 211 and 1 death. 1 518 019 screenings and 17 513 tests were done in the Province. Of those people who tested positive as at 17 June 2020, 73 is from ZF Mgcawu District.
People living below the poverty line as at 2019 in ZF Mgcawu District are 90 427 which makes 31,8% of the district population.
ZF Mgcawu District Municipality has seen an improvement in the level of education of its population within the 15 years and older age category between 2008 and 2018. Within the district, the number of people without any schooling decreased from 2008 to 2018 with an average annual rate of -2.70%, while the number of people within the 'matric only' category, increased from 28,100 to 47,858. The number of people with 'matric and a certificate/diploma' increased with an average annual rate of 1.87%, with the number of people with a 'matric and a Bachelor's' degree increasing with an average annual rate of 2.94%. Overall improvement in the level of education is visible with an increase in the number of people with 'matric' or higher education.
The economy of the ZF Mgcawu District on the four main sectors: agriculture, mining, tourism and manufacturing. The largest contributor to the district’s real GVA in manufacturing is the food, beverages, and tobacco sub-sector, which contributed slightly over 34% towards the district’s manufacturing GVA. The second-largest contributor in 2016 was the other non-metal mineral products sub-sector. PROFILE: ZF MGCAWU DISTRICT 7
2. ZF Mgcawu District Overview 2.1. Historical Perspective The ZF Mgcawu District was previously known as Siyanda District. During the past few decades, the District Municipality underwent different changes of names and in some instances also changes in jurisdiction areas. The Kenhardt and Gardenia area was in the past served by the Divisional Council. Currently these areas together with an area that previously fell within the Kalahari Divisional Council are served by the ZF Mgcawu District Municipality (Proclamation 27/2000 as well as proclamation 25/2001).
2.2. Location The ZF Mgcawu District Municipality is one of the 5 districts of the Northern Cape Province. The seat of ZF Mgcawu is Upington, where the Municipal Government is located. ZF Mgcawu District Municipality is named after Upington's first post-1994 democratically elected mayor, Zwelentlanga Fatman Mgcawu.
8 PROFILE: ZF MGCAWU DISTRICT
2.2.1. Dawid Kruiper Local Municipality The Dawid Kruiper Local Municipality is the largest of five municipalities in the ZF Mgcawu District Municipality, making up almost half its geographical area, about 43% of the District. DKLM comprises an area of about 44 231km² and is formally the largest Local Municipality in South Africa by land area. It was established by the amalgamation of the Mier and //Khara Hais Local Municipalities in August 2016.Dawid Kruiper Local Municipality accommodates the three main towns of Upington, Mier and Rietfontein. Rietfontein functions as a border post with Namibia
2.2.2. Kai! Garib Local Municipality Kai! Garib consists of three large towns, i.e. Kakamas, Keimoes and Kenhardt. Kai! Garib is situated along the Orange River and is bordered by //Khara Hais LM in the north-east and Namibia in the north-west. It is characterised by its unique landscape, with the Kalahari Desert on the one side and the Orange River on the other side. PROFILE: ZF MGCAWU DISTRICT 9
2.2.3. !Kheis Local Municipality !Kheis Local Municipality covers an area of ± 11 107 km ² and includes the towns of Brandboom and Groblershoop. Agriculture is the main economic sector. The !Kheis municipal area was initially inhabited by the Khoisan people, who were also the first permanent inhabitants of South Africa. The San, who lived a nomadic life, migrated through the area. !Kheis is a Khoi name meaning ‘a place where you live' or ‘your home'. 2.2.4. Kgatlelopele Local Municipality The municipal area of Kgatelopele is situated 160 km west of Kimberley. During the 19th century the town was known as a Griqua outpost under the leadership of captain Barend Barends. Kgatelopele Local Municipality accommodates the towns of Daniëlskuil and Lime Acres and covers an area of ± 2 478 km². The main economic sectors are mining, agriculture, and manufacturing.
2.2.5. Tsantsabane Local Municipality Tsantsabane Local Municipality stretches over an area of ± 18 290 Km² and accommodates the main towns of Postmasburg and Beeshoek. Economically, Tsantsabane is known for being rich in minerals, and for its mining, agriculture, manufacturing and farming sectors.
Figure: ZF Mgcawu District Municipality
10 PROFILE: ZF MGCAWU DISTRICT
2.3. Spatial Status The National Spatial Development Framework (NSDF, 2019) identify the ZF Mgcawu district as part of the Arid Innovation Region. Key national roads (N10 and N14) are traversing the district. Traffic flows through the region, linking the major industrial areas of the country. The region comprises the arid and sparsely populated central part of the country.
The district borders Botswana to the northeast and Namibia to the north. 65 000 square kilometres of the total 102 484 square kilometres encompasses part of the “Kalahari Desert, the Kgalagadi Trans Frontier Park and the former Bushman Land” (IDP, 2017). ZF Mgcawu comprises six (6) local municipalities, namely the Kai! Garib, Kgatelopele, !Kheis, David Kuiper (formerly Mier local municipality) and Tsantsabane local municipalities.
The region encompassing the ZF Mgcawu District Municipality (ZFMDM) includes what is known as the Kalahari and can be characterised as a semi-arid region, which experiences high temperatures in the summer and low average annual rainfall. The District has two airports, one in Upington and the other in Sishen the area known for being the iron ore capital of the Northern Cape.
The Northern Cape Provincial Spatial Development Framework states that the first structuring element is the development and reinforcement of a system of varied growth centres. This will enable greater access to development opportunities, as well as equitable access to a system of local opportunities. PROFILE: ZF MGCAWU DISTRICT 11
2.4. Land Ownership The table below highlights the total area of the municipality under a land claim process.
Sum of Land Claims ZF Mgcawu 1468,156 NC total 5006,433 SA total 20617,156
There is no tribal land in the ZF Mgacawu district. According to the Commission on the Restitution of Land Rights’ 2018 annual report, ZF Mgcawu district has the highest number of all outstanding claims, and more complex. A range of stakeholders from traditional leaders, government departments, AgriSA in the Northern Cape, legal representatives of affected landowners, landowners, the provincial DALRRD and the Office of the Premier were engaged.
Home ownership reported by the Community survey 2016, was as follows: 12 PROFILE: ZF MGCAWU DISTRICT
3. Social Development Profile 3.1. Key Social Demographics 3.1.1. Population When compared to other regions, the ZF Mgcawu District Municipality accounts for a total population of 284,375, or 21.1% of the total population in the Northern Cape Province, with the Frances Baard being the most populous district in the Northern Cape Province for 2018. The ranking in terms of the size of ZF Mgcawu compared to the other regions remained the same between 2008 and 2018. In terms of its share the ZF Mgcawu District Municipality was slightly smaller in 2019 (21.1%) compared to what it was in 2008 (21.5%).When looking at the average annual growth rate, it is noted that ZF Mgcawu ranked third (relative to its peers in terms of growth) with an average annual growth rate of 1.5% between 2008 and 2018.
PROFILE: ZF MGCAWU DISTRICT 13
The population growth in the local municipalites varied significantly. The Tsantsabane Local Municipality increased the most, in terms of population, with an average annual growth rate of 2.61%, the Kgatelopele Local Municipality had the second highest growth in terms of its population, with an average annual growth rate of 2.53%. The !Kheis Local Municipality had the lowest average annual growth rate of -0.10% relative to the other within the ZF Mgcawu District Municipality.
Table: Total population - local municipalities of ZF Mgcawu District Municipality, 2008, 2013 and 2018 [Numbers percentage] Municipality 2008 2013 2018 Average Annual growth Kai !Garib 64,600 67,400 70,500 0.87% !Kheis 17,800 17,300 17,600 -0.10% Tsantsabane 31,600 36,600 40,900 2.61% Kgatelopele 16,800 19,400 21,600 2.53% Dawid Kruiper 97,600 107,000 115,000 1.69% ZF Mgcawu 228,446 247,820 266,001 1.53% Source: IHS Markit Regional eXplorer version 1750
3.1.2. Race, Gender and Age In 2018, the ZF Mgcawu District Municipality's population consisted of 29.64% African (78 800), 8.35% White (22 200), 61.06% Coloured (162 000) and 0.96% Asian (2 540) people.
ZF Mgcawu District Municipality's male/female split in population was 51% males vs 49% females in 2019. The ZF Mgcawu District Municipality has significantly more males (51%) relative to South Africa (49%). This is possibly because of physical labour-intensive 14 PROFILE: ZF MGCAWU DISTRICT industries such as mining. In total there were 139 473 (49%) females and 144 902 (51%) males. This is different from the Northern Cape Province as a whole where the female population counted 680 568 which constitutes 50.6% of the total population of 1.34 million.
The largest share of population is within the young working age (25 – 44 years) age category with a total number of 86 700 or 32.6% of the total population. The age category with the second largest number of people is the babies and kids (0-14 years) age category with a total share of 25.2%, followed by the teenagers and youth (15- 24 years) age category with 49 300 people.
The age category with the least number of people is the retired/old age (65 years and older) age category with only 17 300 people, as reflected in the population pyramid below.
Population structure, Total, 2019 DC08 ZF Mgcawu (Siyanda) vs. National
Male Female
DC08 ZF Mgcawu 75+ (Siyanda) 70-74 65-69 South Africa 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 05-09 00-04
6.0% 4.0% 2.0% 0.0% 2.0% 4.0% 6.0% Source: IHS Markit Regional eXplorer version 1946
By comparing the population pyramid of the ZF Mgcawu District Municipality with the national age structure, the most significant differences are: PROFILE: ZF MGCAWU DISTRICT 15
• There is a slightly larger share of young working age people - aged 20 to 34 (27.8%) - in ZF Mgcawu, compared to the national picture (26.9%). • Fertility in ZF Mgcawu is slightly lower compared to South Africa as a whole. • The share of children between the ages of 0 to 14 years is significant smaller (25.2%) in ZF Mgcawu compared to South Africa (28.6%). Demand for expenditure on schooling as percentage of total budget within ZF Mgcawu District Municipality will therefore be lower than that of South Africa
3.1.3. Households In 2019, the ZF Mgcawu District Municipality comprised of 77 907 households. This equates to an average annual growth rate of 2.16% in the number of households from 2009 to 2019. With an average annual growth rate of 1.83% in the total population, the average household size in the ZF Mgcawu District Municipality is by implication decreasing.
In 2016, there were 91 households in the district with heads under 18 years and 35.5% of households were headed by women.
3.2. Health Profile Improving health status, particularly for those vulnerable sub-groups of a population has been endorsed as one of the key goals of NDP 2030. In Northern Cape province, 16 PROFILE: ZF MGCAWU DISTRICT both communicable and non-communicable diseases, depending on age, are major causes of morbidity and mortality.
In terms of health facilities, there is total of 52 primary healthcare (PHC) clinics including hospitals, of which 15 are Clinics, 6 Community Health Care, 15 Satelite Clinics, 13 Mobile Clinics, 2 District Hospitals and 1 Regional Hospital.
3.3. Covid-19 In Northern Cape there were 211 confirmed cases of which 62 had recovered by the 17th of June 2020. 73 Cases were in ZF Mgcawu of which 49 were in Tsantsabane.
PROFILE: ZF MGCAWU DISTRICT 17
Quarantine Sites: 19 Quarantine sites have been identified, most of them in Upington (Dawid Kruiper LM).
TOWN State-owned NO OF NO OF STATUS OF Activated or Private ROOMS BEDS FACILITY Site Facility AVAILABLE AVAILABLE
Kenhardt Not assessed Pending Upington Private 5 5 Not assessed Pending Postmansburg Private 7 7 Not assessed Pending Upington Private 10 10 Not assessed Pending Colesberg State-Owned Assessed and Pending approved by DPW 12 16 or Province Upington State-Owned Assessed and Activated approved by DPW 58 97 or Province Upington Private 6 6 Not assessed Pending Upington Private 12 12 Not assessed Pending Tsantsabane State-Owned Not assessed Pending NU 2 6 18 PROFILE: ZF MGCAWU DISTRICT
TOWN State-owned NO OF NO OF STATUS OF Activated or Private ROOMS BEDS FACILITY Site Facility AVAILABLE AVAILABLE
Upington State-Owned 6 30 Not assessed Pending Keimoes State-Owned 12 48 Not assessed Pending Upington Private 4 4 Not assessed Pending Riemvasmaak Private 4 4 Not assessed Pending Noupoort State-Owned Not assessed Pending 5 9 Upington Private 24 24 Not assessed Pending Postmansburg State-Owned 2 20 Not assessed Pending Upington Private 6 6 Not assessed Pending Upington State-Owned 1 7 Not assessed Pending Postmansburg Private 11 11 Not assessed Pending TOTAL 187 322
3.4. Poverty DImensions In 2018, there were 127 000 people living in poverty, using the upper poverty line definition, across ZF Mgcawu District Municipality - this is 2.21% lower than the 130 000 in 2008. The percentage of people living in poverty has decreased from 56.74% in 2008 to 47.77% in 2018, which indicates a decrease of 8.96 percentage points.
PROFILE: ZF MGCAWU DISTRICT 19
In 2018, the population group with the highest percentage of people living in poverty was the African population group with a total of 63.1% people living in poverty, using the upper poverty line definition. The proportion of the African population group, living in poverty, decreased by 3.59 percentage points, as can be seen by the change from 63.13% in 2008 to 59.54% in 2018.
In terms of the percentage of people living in poverty for each of the regions within the ZF Mgcawu District Municipality, !Kheis Local Municipality has the highest percentage of people living in poverty, using the upper poverty line definition, with a total of 53.3%. The lowest percentage of people living in poverty can be observed in the Kgatelopele Local Municipality with a total of 41.7% living in poverty, using the upper poverty line definition.
In 2018, the poverty gap rate was 27.8% and in 2008 the poverty gap rate was 30.0%, it can be seen that the poverty gap rate decreased from 2008 to 2018, which means that there were improvements in terms of the depth of the poverty within ZF Mgcawu District Municipality. In terms of the poverty gap rate for each of the regions within the ZF Mgcawu District Municipality, Tsantsabane Local Municipality had the highest poverty gap rate, with a rand value of 29.3%. The lowest poverty gap rate can be observed in the !Kheis Local Municipality with a total of 26.3%.
3.5. Inequality In 2018, the Gini coefficient in ZF Mgcawu District Municipality was at 0.585, which reflects a marginal decrease in the number over the ten-year period from 2008 to 2018.
In 2018 ZF Mgcawu District Municipality had an HDI of 0.667 compared to the Northern Cape with an HDI of 0.652 and 0.657 of National Total as a whole. Seeing that South Africa recorded a lower HDI in 2018 when compared to ZF Mgcawu District Municipality which translates to better human development for ZF Mgcawu District Municipality compared to South Africa. South Africa's HDI increased at an average annual growth rate of 1.65% and this increase is higher than that of ZF Mgcawu District Municipality (1.57%).
3.6. Employed/Unemployed In 2018, ZF Mgcawu employed 84 500 people which is 26.01% of the total employment in Northern Cape Province (325 000), 0.53% of total employment in South Africa (16.1 million). Employment within ZF Mgcawu increased annually at an average rate of 1.72% from 2008 to 2018. The ZF Mgcawu District Municipality average annual 20 PROFILE: ZF MGCAWU DISTRICT employment growth rate of 1.72% exceeds the average annual labour force growth rate of 1.60% resulting in unemployment decreasing from 22.12% in 2008 to 22.07% in 2018 in the district municipality.
ZF Mgcawu District Municipality employs a total number of 84 500 people within its district municipality. The district municipality that employs the highest number of people relative to the other regions within Northern Cape Province is Frances Baard district municipality with a total number of 101 000. The district municipality that employs the lowest number of people relative to the other regions within Northern Cape Province is Namakwa district municipality with a total number of 36 200 employed people.
In ZF Mgcawu District Municipality the economic sectors that recorded the largest number of jobs in 2018 were the community services sector with a total of 20 400 employed people or 24.2% of total employment in the district municipality. The agriculture sector with a total of 19 100 (22.6%) employs the second highest number of people relative to the rest of the sectors. The electricity sector with 306 (0.4%) is the sector that employs the least number of people in ZF Mgcawu District Municipality, followed by the transport sector with 2 680 (3.2%) people employed.
In 2018, there were a total number of 23 400 people unemployed in ZF Mgcawu, which is an increase of 3 380 from 20 000 in 2008. The total number of unemployed people within ZF Mgcawu constitutes 18.22% of the total number of unemployed people in Northern Cape Province. The ZF Mgcawu District Municipality experienced an average annual increase of 1.57% in the number of unemployed people, which is better than that of the Northern Cape Province which had an average annual increase in unemployment of 2.14%.
In 2018, the unemployment rate in ZF Mgcawu District Municipality (based on the official definition of unemployment) was 22.07%, which is a decrease of -0.0523 percentage points. The unemployment rate in ZF Mgcawu District Municipality is lower than that of Northern Cape. The unemployment rate for South Africa was 27.22% in 2018, which is an increase of -3.62 percentage points from 23.60% in 2008.
When comparing unemployment rates among regions within ZF Mgcawu District Municipality. !Kheis Local Municipality has indicated the highest unemployment rate of 29.7%, which has increased from 20.9% in 2008. It can be seen that the Kai !Garib Local Municipality had the lowest unemployment rate of 15.7% in 2018, which increased from 14.3% in 2008.
PROFILE: ZF MGCAWU DISTRICT 21
3.7. Crime The crime index is a composite, weighted index which measures crime. The higher the index number, the higher the level of crime for that specific year in a particular region. The index is best used by looking at the change over time, or comparing the crime levels across regions.
Figure: IHS Crime Index - calendar years (weighted avg / 100,000 people) - ZF Mgcawu District Municipality, 2007/2008-2017/2018 [Index value]
For the period 2007/2008 to 2017/2018 overall crime has decrease at an average annual rate of 4.37% within the ZF Mgcawu District Municipality. Violent crime decreased by 4.85% since 2007/2008, while property crimes decreased by 0.95% between the 2007/2008 and 2017/2018 financial years.
Table: Overall crime index - ZF Mgcawu District Municipality and the rest of Northern Cape, 2007/2008- 2017/2018 [Index value]
In 2017/2018, the Pixley ka Seme District Municipality has the highest overall crime rate of the sub-regions within the overall Northern Cape Province with an index value 22 PROFILE: ZF MGCAWU DISTRICT of 148. Frances Baard District Municipality has the second highest overall crime index at 148, with ZF Mgcawu District Municipality having the third highest overall crime index of 111. Namakwa District Municipality has the second lowest overall crime index of 106 and the John Taolo Gaetsewe District Municipality has the lowest overall crime rate of 101. The region that decreased the most in overall crime since 2007/2008 was ZF Mgcawu District Municipality with an average annual decrease of 4.4% followed by Frances Baard District Municipality with an average annual decrease of 3.8%.
Figure: IHS Crime Index - calendar years (weighted avg / 100,000 people) - ZF Mgcawu, Northern Cape and National Total, 2017/2018 [Index value]
From the chart above it is evident that property crime is a major problem for all the regions relative to violent crime. It is evident that the property crime is a major problem for all the regions relative to rest crime indices.
3.8. Education and Skills ZF Mgcawu District Municipality has seen an improvement in the level of education of its population within the 15 years and older age category between 2008 and 2018. Within the district, the number of people without any schooling decreased from 2008 to 2018 with an average annual rate of -2.70%, while the number of people within the 'matric only' category, increased from 28,100 to 44,300. The number of people with 'matric and a certificate/diploma' increased with an average annual rate of 1.87%, with the number of people with a 'matric and a Bachelor's' degree increasing with an average annual rate of 2.94%. Overall improvement in the level of education is visible with an increase in the number of people with 'matric' or higher education.
Enrolment in Pre-Grade R and Grade R as a percentage of children under the age of 5 has been increasing over the last 9 years. However, this rate remains unacceptably low, at 20%. Grade R enrolment constitutes only 7% of total enrolment, however children of appropriate age constitute roughly 33% of the population of school-going PROFILE: ZF MGCAWU DISTRICT 23
age. This indicates a lack of Early Childhood Development attendance, which is primarily due to the lack of adequate facilities. Early childhood development is crucial for long-term schooling success and improving Grade R attendance should be a priority area for the ZF Mgcawu District Municipality.
According to the 2017 SNAP survey, the district has the youngest population in the province with 36% of the population being between the ages of 15 - 34. It has 98 ordinary schools operate in the district, which provide for 56 372 learners and 1 792 educators (L: E- 31; L: S- 575). School infrastructure in the district is well utilised except for the remote areas of Mier. Most of the school infrastructure in the district is also well maintained. (NCDE, 2017)
Figure: Education Levels within the Population
JC08 DC08 ZF Mgcawu (Siyanda) 60,000 46,630 47,858 50,000 43,112 40,000 30,000 22,018 20,000 12,312 7,363 10,000 4,208 710 4,207 1,130 0
Figure: Skills Level: Functional literacy: age 15+, completed grade 7 or higher (2019)
JC08 DC08 ZF Mgcawu (Siyanda) 180,000 171,371 160,000 140,000 120,000 100,000 80,000 60,000 40,777 40,000 20,000 0 Illiterate (DLIITT) Literate (DLILTT19)
24 PROFILE: ZF MGCAWU DISTRICT
4. Drivers of the Economy 4.1. Structure of the Economy With a GDP of R 24.2 billion in 2018 (up from R 12.6 billion in 2008), the ZF Mgcawu District Municipality contributed 24.52% to the Northern Cape Province GDP of R 98.6 billion in 2018 increasing in the share of the Northern Cape from 23.09% in 2008.
In 2018, the mining sector is the largest within ZF Mgcawu District Municipality accounting for R 4.64 billion or 21.3% of the total GVA in the district municipality's economy. The sector that contributes the second most to the GVA of the ZF Mgcawu District Municipality is the community services sector at 21.1%, followed by the finance sector with 13.5%. The sector that contributes the least to the economy of ZF Mgcawu District Municipality is the electricity sector with a contribution of R 735 million or 3.38% of the total GVA.
The community sector, which includes the government services, is generally a large contributor towards GVA in smaller and more rural local municipalities.
It is expected that ZF Mgcawu District Municipality will grow at an average annual rate of -1.20% from 2018 to 2023. The average annual growth rate of Northern Cape Province and South Africa is expected to grow at -0.03% and 1.50% respectively.
Tsantsabane had the highest average annual economic growth, averaging 3.95% between 2009 and 2019, when compared to the rest of the regions within the ZF Mgcawu District Municipality. The Kgatelopele Local Municipality had the second highest average annual growth rate of 2.20%. !Kheis Local Municipality had the lowest average annual growth rate of 0.52% between 2009 and 2019. The table below indicates the main economic activity for each of the ‘main’ towns in the district:
District Municipality Local Municipality Main Town Main Economic Activity
!Kheis Groblershoop Small Service Centre
Dawid Kruiper Upington Regional Centre
DM Kai !Garib Kakamas Service Centre ZF Mgcawu Kgatelopele Danielskuil Mining Tsantsabane Postmasburg Mining
PROFILE: ZF MGCAWU DISTRICT 25
4.2. Primary Sector
The primary sector consists of two broad economic sectors namely the mining and the agricultural sector. The following chart represents the average growth rate in the GVA for both of these sectors in ZF Mgcawu District Municipality from 2008 to 2018.
Agriculture compromises grape production, which is mainly exported to Europe, owing to peculiar grapes that are ripe and ready for export before the grapes of other countries can reach these markers, as well as livestock and game farming.
Agriculture has undergone extensive restructuring since the opening up of the South African economy and substantial growth took place between 1998 and 2002. This growth was however impacted due to mounting pressures from market competition and legislative changes.
Figure: Gross Value Added (GVA) by primary sector - ZF Mgcawu, 2008-2018 [Annual percentage change]
Gross value added (GVA) by primary sector 20% ZF Mgcawu, 2008-2018 15% 10% 5% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -5% -10% -15%
Agriculture Mining Source: IHS Markit Regional eXplorer version 1750
Between 2008 and 2018, the agriculture sector experienced the highest positive growth in 2008 with an average growth rate of 15.5%. The mining sector reached its highest point of growth of 8.0% in 2010. The agricultural sector experienced the lowest growth for the period during 2011 at -12.0%, while the mining sector reaching its lowest point of growth in 2008 at -5.4%. Both the agriculture and mining sectors are generally characterised by volatility in growth over the period.
26 PROFILE: ZF MGCAWU DISTRICT
4.3. Secondary Sector
The secondary sector consists of three broad economic sectors namely the manufacturing, electricity and the construction sector. The following chart represents the average growth rates in the GVA for these sectors in ZF Mgcawu District Municipality from 2008 to 2018.
Figure: Gross Value Added (GVA) by secondary sector - ZF Mgcawu, 2008-2018 [Annual percentage change]
Gross value added (GVA) by secondary sector 15% ZF Mgcawu, 2008-2018
10%
5%
0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -5%
Manufacturing Electricity Construction Source: IHS Markit Regional eXplorer version 1750
Between 2008 and 2018, the manufacturing sector experienced the highest positive growth in 2010 with a growth rate of 8.0%. The construction sector reached its highest growth in 2009 at 14.2%. The manufacturing sector experienced its lowest growth in 2018 of -1.8%, while construction sector reached its lowest point of growth in 2018 a with -1.6% growth rate. The electricity sector experienced the highest growth in 2011 at 4.0%, while it recorded the lowest growth of -0.8% in 2016.
4.4. Tertiary Sector
The tertiary sector consists of four broad economic sectors namely the trade, transport, finance and the community services sector. The following chart represents the average growth rates in the GVA for these sectors in ZF Mgcawu District Municipality from 2008 to 2018. Figure: Gross Value Added (GVA) by tertiary sector - ZF Mgcawu, 2008-2018 [Annual percentage change] PROFILE: ZF MGCAWU DISTRICT 27
Figure : Gross value added (GVA) by tertiary 10% sector 8% ZF Mgcawu, 2008-2018 6% 4% 2% 0% -2% 20082009201020112012201320142015201620172018 -4% -6%
Trade Transport Source: IHS Markit Regional eXplorer version 1750 The trade sector experienced the highest positive growth in 2010 with a growth rate of 5.3%. The transport sector reached its highest point of growth in 2008 at 4.7%. The finance sector experienced the highest growth rate in 2015 when it grew by 6.8% and recorded the lowest growth rate in 2013 at -0.5%. The Trade sector had the lowest growth rate in 2009 at -4.6%. The community services sector, which largely consists of government, experienced its highest positive growth in 2008 with 7.8% and the lowest growth rate in 2016 with -0.1%.
4.5. Informal Economy
Informal employment is much harder to measure and manage, simply because it cannot be tracked through the formal business side of the economy. Informal employment is however a reality in South Africa and cannot be ignored. The number of people employed in the informal sector counted 9 380 or 11.09% of the total employment. Informal employment in ZF Mgcawu increased from 6 930 in 2008 to an estimated 9 380 in 2018.
5. Service Delivery 5.1. Water Figure: Access to Water 28 PROFILE: ZF MGCAWU DISTRICT
No of household Access to Water accessing water
9000 8283 8000 7000 5933 6000 5000 4000 3047 3002 3000 2249 2571 1587 2000 1129 1000 0 0 126 0 0 0
5.2. Human Settlements ZF Mgcawu District Municipality had a total number of 34 500 (45.54% of total households) very formal dwelling units, a total of 25 700 (33.88% of total households) formal dwelling units and a total number of 9 710 (12.80% of total households) informal dwelling units. The region within the ZF Mgcawu District Municipality with the highest number of very formal dwelling units is the Dawid Kruiper Local Municipality with 16 200 or a share of 47.04% of the total very formal dwelling units within ZF Mgcawu District Municipality. The region with the lowest number of very formal dwelling units is the !Kheis Local Municipality with a total of 638 or a share of 1.85% of the total very formal dwelling units within ZF Mgcawu District Municipality.
5.3. Sanitation In 2018, ZF Mgcawu District Municipality had a total number of 60 300 flush toilets (79.49% of total households), 4 390 Ventilation Improved Pit (VIP) (5.79% of total households) and 3 180 (4.19%) of total household pit toilets.
PROFILE: ZF MGCAWU DISTRICT 29
The region within ZF Mgcawu with the highest number of flush toilets is Dawid Kruiper Local Municipality with 24 400 or a share of 40.43% of the flush toilets within ZF Mgcawu. The region with the lowest number of flush toilets is !Kheis Local Municipality with a total of 2 310 or a share of 3.83% of the total flush toilets within ZF Mgcawu District Municipality.
5.4. Waste Management
Figure: Access to waste management
Waste Collection No of household benefiting
200000 183189 180000 160000 140000 120000 100000 80000 60000 40000 26295 7953 8096 11701 10335 20000 5123 0 0
30 PROFILE: ZF MGCAWU DISTRICT
5.5. Roads and Transport Key national roads (N10 and N14) are traversing the district. Traffic flows through the region, linking the major industrial areas of the country. The region comprises the arid and sparsely populated central part of the country. It is set to be significantly affected by future climate change trends and requires a consolidated response. (NSDF, 2017: P171).
The Northern Cape Provincial Spatial Development Framework (2019: P 77) states that the first structuring element is the development and reinforcement of a system of varied growth centres. This will enable greater access to development opportunities, as well as equitable access to a system of local opportunities. The idea is to ensure that all people within the province live within equal and easy access to public transport, economic opportunities and social amenities. Higher density settlements should be located along the main transportation routes and held together by a web of local access roads and public facilities.
PROFILE: ZF MGCAWU DISTRICT 31
5.6. Electricity Figure: Access to Electricity
Electricity No of people accessing electricity
200000 177693 180000 160000 140000 120000 100000 80000 60000 45552 40000 16189 20000 198 698 3423 131 4534 4274 0
6. GOVERNANCE AND MANAGEMENT 6.1. Municipality performance
While the district municipality has a history of clean audits, its local municipalities have struggled to achieve improvements in the audit outcomes during the same period. In the recent audits 2017/18 ZF Mgcawu had the biggest share of disclaimers in the Northern Cape with 3 disclaimers and the least of unqualified audits, with one municipality. Tsantsabane, Kai Garib and Kgatelopele have failed to submit the AFS on time at least twice in the last five financial years.
During the course of delivering services to the people, there are sometimes delays and or non-delivery of promised services by the municipalities which make communities to protest.
6.2. Municipal Capacity
In terms of the occupancy rate of Municipal Managers’ positions it shows that Kgatelopele and Tsantsabane Local Municipalities had the Municipal Managers’ positions filled for all the months they reported. !Kheis Local Municipality reported 10 32 PROFILE: ZF MGCAWU DISTRICT times and indicated to have the MM position filled for one month, vacant for 6 months and there was an acting official for 3 months; while Kai! Garib Local Municipality reported 11 times and indication was that for 6 months the MM position was vacant and for 5 months there was an acting official.
Kgatelopele Local Municipality had the Chief Financial Officer position filled for all the 4 months they reported. !Kheis Local Municipality reported 10 times on the CFO position, for 5 months it was filled and for the rest of the months it was vacant. During this reporting period, Kai! Garib and Tsantsabane Local Municipalities had the CFO position vacant in some months, and filled by acting officials in other months.
Kgatelopele Local Municipality managed to achieve a 100% occupancy rate for the Section 56 Managers. This means that in some municipalities there were months where there were no Heads of Departments in some sections during the Financial Year. An average of 222 permanent and 11 temporary employees worked in the district during this reporting period.
6.3. Traditional Affairs Governance
All the municipalities that reported indicated to have no Traditional Councils.
The Khoi-San consists of five main groupings namely the Cape-Khoi, Griqua, Koranna, Nama and San. Many of these main groupings have various subgroupings. While legislation has over many decades made provision for the statutory recognition of traditional communities and leaders, there has never before been provision for similar recognition of the Khoi-San communities and leaders.
The Traditional and Khoi-San Leadership Act, 2019 (Act No. 3 of 2019), which was published in the Government Gazette on 28 November 2019, is of historic value as it is the first legislation that provides for the statutory recognition of the Khoi-San communities and leaders, provided they meet the criteria contained in the Act. However, the Act has not yet commenced, because its commencement date has not yet been proclaimed. Once the Act commences, a Commission on Khoi-San Matters will be established to receive and investigate applications for recognition of Khoi-San communities and leaders. The Commission will make recommendations to the Minister in this regard and the Minister will have the power to recognise such communities and leaders. There is thus currently no legally recognised Khoi-San communities or leaders in South Africa. The Act makes provision for two Khoi-San leadership positions PROFILE: ZF MGCAWU DISTRICT 33
namely senior Khoi-San leaders and branch heads. The recognised senior Khoi-San leaders will have personal jurisdiction over their communities.
In the case of traditional leaders, they are legally recognised at all levels (kingship, queenship, principal traditional leadership, senior traditional leadership and headmen/headwomen). However, although the existing Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003)(Framework Act), makes provision for the establishment of traditional leadership structures such as kingship or queenship councils, principal traditional councils and traditional councils, the timeframes within which these structures had to be legally constituted or reconstituted have lapsed. Until such time that the relevant traditional leadership structures have been legally constituted or reconstituted, their legal status and standing will remain uncertain and could be challenged. This may also impact negatively on the statutory duties and responsibilities of such structures. Currently, there is no enabling legislation to legally reconstitute them. The Traditional Leadership and Khoi-San Leadership Act will provide enabling legislation for their legal constitution. However, the Act has not yet commenced due to the reasons alluded above and therefore the enabling provisions in the Act cannot be used at this stage to reconstitute these structures.
7. PROJECTS TO DIVERSIFY AND GROW PEOPLE AND THE ECONOMY 7.1. Spatial Development The Northern Cape PSDF identified regional and smaller regional growth centers. Upington as the main town of the district is classified as a regional center. In the context of the ZF Mgcawu district, there is also a service center located in Kakamas and small service center in Groblershoop. The remaining two towns which are Danielskuil and Postmasburg as classified as mining centers.
The Northern Cape PSDF is aligned with the proposals as captured into the NSDF. There is a focus on enhanced regional connectivity, inter-regional and 34 PROFILE: ZF MGCAWU DISTRICT national development corridors and routes, integrated urban clusters, economic infrastructure networks, infrastructure to support water and electricity security and flows, productive mining, the managing of large scale land developments and efficient ecological, trade connectivity and social service infrastructure.
7.2. Infrastructure Projects
Infrastructure is the foundation of social and economic development. The ZFMDM and the local municipalities must maintain and expand electricity, water, sewage, transport and telecommunications infrastructure to support economic growth and realise the vision of the Rural Development Plan. Infrastructural challenges and backlogs are prevalent in many parts of the district, but especially in Mier. Energy and electricity provision and upgrading of electricity infrastructure, road infrastructure, storm water drainage and provision of potable running water, lack of adequate housing infrastructure and public transport are a challenge in the area. The lack of or inadequate service provision in certain areas impacts on the future sustainability of human settlements in ZFMDM.
Loch Lomond Water Pipeline is the construction of 27km water pipeline taking place in Dawid Kruiper Municipality. Eksteenskuil water drainaige system in the Kai Garib municipality. Lemoen Draai water drainage is the construction of the drainage system in the Upington area.
7.3. Social Development Projects
A focus is required on developing and supporting the large informal trade sector. Support may be provided by way of formalised markets, with communication and transport orientated infrastructure, as well as access to basic services. An agency that facilitates job search for youth will enable greater access to and facilitation of the labour market for new entrants to the job market. Often job opportunities (especially for youth and new job market entrants) remain unfilled because of labour market inefficiencies, such as informational frication and location-based restrictions.
7.4. Economic Projects
Selmon Waste Recycling co-op is a recycling project funded for 450 000 and the project is currently operational in Keimoes. Cosy Guest house funded for 300 000 and PROFILE: ZF MGCAWU DISTRICT 35
operates within the Upington area. Khaya construction funded for 770 000 operating in Upington.
ZFMDM could benefit to a large extent from an agro-processing hub, housing processors of various agricultural commodities so as to ensure that fewer commodities leave the district in their cheapest (raw and unprocessed) form.
A prime opportunity for ZFMDM’s development is transport and logistics-related infrastructure. Given its proximity to the Botswana and Namibian borders, ZFMDM is ideally positioned to act as a transport and logistics node, and a gateway to the rest of Africa for local and international economic actors alike. The development of a transport and logistics hub, in conjunction with transport-related infrastructure upgrades, has the potential to stimulate and diversify the regional economy, create employment opportunities and act as a driver of rural development for the district.
7.5. Environmental Forecast
The Northern Cape is known for its extreme climate conditions and the ZF Mgcawu District Municipal area is by no means an exception to the rule. The weather data for ZF Mgcawu Municipality is obtained from weather stations at Augrabies Falls, Postmasburg, Twee Riviere, Upington and Van Zylsrus. The Northern Cape is characterised by a harsh climate and many more Rainfall and prolonged droughts. This added climate is accompanied by high evaporation due to the intense heat of the dry summer months. (Mukheibir, 2007). The Orange River flows from east to west through the Municipal Area, with a large number of dry rivers also intersecting the area.
8. KEY RECOMMENDATIONS 8.1. Prioritise Integrated Development Plan
The following are the projects that can be unlocked and benefit the community, the projects were planned for the financial year 2019/20 and are still in planning phase.
Project Name Project Total Registered Counter Wards Status Project MIG funds Funding Cost Eenduin/Loxtonvale: Planning R 9 335 679 R 8 209 192 R 1 126 487 7 Extention of 36 PROFILE: ZF MGCAWU DISTRICT
Project Name Project Total Registered Counter Wards Status Project MIG funds Funding Cost External Water Supply 7de Laan: Extention Planning 1 731 660 1 489 228 R242 432 7 of External Water Supply and Distribution Alheit: New Planning R 1 994 249 R 1 994 249 0 1 Cemetery (ts/c/0028 Kakamas: Planning R664 392 R664 392 0 3/4 Feasibility Studies Cemetery (ts/c/001) Ward 10: Provision Planning 5 387 412 5 387 412 0 10 of High Mast Ligthing in Riemvasmaak (ts/e/004/005) 30. Lutzburg: Access & Planning R7 608 185 R7 608 185 0 7 Collectors Roads (ts/rs/009) Kakamas: Access & Planning R18 001 791 R18 001 791 0 4/3 Collector Roads (ts/rs/001) Keimoes: Access & Planning R17 637 226 R15 471 251 R2 165 975 6/7 Collector Roads (ts/rs/002) Table: Projects for 2019/20 IDP
8.2. Investor and Sponsorship Opportunities
Private sector investment opportunity for the Kgatelopele Local Municipality in partnership with Petra Diamond Finsch Mine SLP Projects for a period between 2018 – 2022.
PROFILE: ZF MGCAWU DISTRICT 37
Name of Project IDP Focus Area Budget Upgrading of Existing Insufficient supply and 4 306 046 Sewerage Purification maintenance of bulk Works water and sanitation Lucerne Project Unemployment and 1 600 000 poverty Water Reticulation Phase Provision of clean piped 12 020 000 4 - 6 water for community Electrical Network 4.1- Insufficient maintenance 23 174 604 4.4 for electricity Technical Division at Addressing technical 6 100 000 Danielskuil High School: vocational opportunities Construction and for local communities Equipment. Total 47 200 650 Table: Investor and Sponsorship Projects
38 PROFILE: ZF MGCAWU DISTRICT