Central Karoo Western Cape Nodal Economic Profiling Project Business Trust & Dplg, 2007 Central Karoo Context

Home , Beaufort West, Klaarstroom, Merweville, Murraysburg, Nelspoort, Swartberg

Nodal Economic Profiling Project Central Karoo Western Cape Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Context

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

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

Central Karoo OR Tambo Chris Hani

Mitchell’s Plain Mdantsane Khayelitsha Motherwell

UUP-WRD-Central Karoo Profile-301106-IS 2 Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Central Karoo poverty node

Activities

z Research process Documents

People z Overview

z Economy

– Overview

– Selected sector: Agriculture

– Selected sector: Tourism

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Central Karoo Profile-301106-IS 3 Nodal Economic Profiling Project Business Trust & dplg, 2007 Research process Central Karoo Summary of what we have done

Acttiiviittiies DDooccuummeennttss PPeeooppllee

Seven different types of documents ± several business plans / Meetings with government /

feasibility studies Desk research public sector and private ± twelve Integrated sector / local people

One visit to the node Development Plan ± six meetings with (IDP)/ Local Economic municipality/government ± 23 to 26 October 2006 Development (LED) ± one meeting with a

development bureau Understanding of potential documents ± two meetings with for economic growth and ± two transport reports tourism organisations specific opportunities for ± three regional profiles ± four meetings with nodal investments across the businesses tourism and agriculture ± seven agriculture- ± three meetings with sectors related reports non-governmental organisations (NGOs) ± fourteen tourism studies ± four uranium mining news reports

UUP-WRD-Central Karoo Profile-301106-IS 4 Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Central Karoo poverty node

z Research process

Introduction z Overview Key data points Current action z Economy

± Overview

± Selected sector: Agriculture

± Selected sector: Tourism

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Central Karoo Profile-301106-IS 5 Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Overview

IInnttrroodduuccttiioonn KKeeyy ddaattaa ppooiinnttss CCuurrrreenntt aaccttiioonn

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

SSnnaappsshhoott GGeeooggrraapphhyy GGoovveerrnnaannccee

AArreeaa ssuummmmaarryy SSppaattiiaall ddeevveellooppmmeenntt IIDDPP aasssseessssmmeenntt

KKeeyy cchhaalllleennggeess DDeemmooggrraapphhyy DDeevveellooppmmeenntt pprroojjeeccttss

LLooccaall ppeeooppllee ppoorrttrraaiitt IInnccoommee aanndd eemmppllooyymmeenntt

EEdduuccaattiioonn

HHeeaalltthh

DDeevveellooppmmeenntt ssccoorreeccaarrdd

UUP-WRD-Central Karoo Profile-301106-IS 6 Nodal Economic Profiling Project Business Trust & dplg, 2007 Introduction Central Karoo Snapshot

Key Information

Population: 2001 60,484

Area 38,874 km2

Population Density: 2001 1.6 inhabitants / km2

Estimated GDP: 2004 R0.69 billion CCeennttrraall KKaarroooo Province Western Cape

Main Town / City Beaufort West

HHiissttoorriiccaall OOvveerrvviieeww

WWiitthh tthhee sseettttlleemmeennttss iinn tthhee CCaappee eexxtteennddiinngg rraappiiddllyy iinn aann eeaasstteerrllyy ddiirreeccttiioonn iinn tthhee 11774400ss,, tthhee ffiirrsstt ffaarrmmeerrss sseettttlleedd ddoowwnn iinn tthhee KKaarroooo

SSiinnccee ffaarrmmiinngg iinn tthhiiss ddrryy aarreeaa mmeeaannss aa ccoonnssttaanntt nneeeedd ffoorr wwaatteerr,, sseevveerraall ddiissppuutteess wwiitthh tthhee XXhhoossaa ttrriibbeessmmeenn,, wwhhoo aallssoo sseettttlleedd iinn tthhee aarreeaa,, eennssuueedd

IInn oorrddeerr ttoo bbrriinngg llaaww aanndd oorrddeerr,, rreelliiggiioonn aanndd ggoovveerrnnmmeenntt ttoo tthhee rreeggiioonn,, tthhee GGoovveerrnnoorr ooff tthhee CCaappee CCoolloonnyy,, LLoorrdd CChhaarrlleess SSoommeerrsseett,, ddeecciiddeedd ttoo eessttaabblliisshh aa ttoowwnn tthheerree –– TThhee ttoowwnn wwaass nnaammeedd BBeeaauuffoorrtt iinn hhoonnoouurr ooff LLoorrdd CChhaarrlleess SSoommeerrsseett’’ss ffaatthheerr,, tthhee ffiifftthh DDuukkee ooff BBeeaauuffoorrtt

OOnn 33 FFeebbrruuaarryy 11883377 BBeeaauuffoorrtt wwaass ggrraanntteedd aa mmuunniicciippaall ggoovveerrnnmmeenntt aanndd tthhuuss bbeeccaammee tthhee ffiirrsstt mmuunniicciippaalliittyy iinn SSoouutthh AAffrriiccaa

Source: Stats SA Census 2001; Wesgro (Western Cape Trade and Investment Promotion Agency); Quantec; www.beaufortwestsa.co.za; www.donkinhouse.co.za UUP-WRD-Central Karoo Profile-301106-IS 7 Nodal Economic Profiling Project Business Trust & dplg, 2007 Introduction Central Karoo Area summary

VVaasstt sseemmii--ddeesseerrtt llaannddssccaappee

SSmmaallll ppooppuullaattiioonn,, pprriimmaarriillyy uurrbbaann

TThhee ppooppuullaattiioonn aanndd sseettttlleemmeennttss aarree ccoonncceennttrraatteedd aarroouunndd tthhee NN11 ccoonnnneeccttiinngg GGaauutteennggwwiitthh CCaappee TToowwnn Bloemfontein, Johannesburg ±± BBeeaauuffoorrtt WWeesstt aanndd LLaaiinnggssbbuurrgg aarree ttwwoo ooff tthhee ffeeww ttoowwnnss aalloonngg tthhee NN11 wwhheerree tthhee ttrraaffffiicc aaccttuuaalllyy ggooeess tthhrroouugghh tthhee ttoowwnn

BBeeaauuffoorrtt WWeesstt iiss tthhee eeccoonnoommiicc hhuubb ooff Beaufort West LM Murraysburg DMA tthhee rreeggiioonn aanndd tthhee ccoonnnneeccttiinngg ppooiinntt ffoorr tthhee NN1122 aanndd tthhee NN11 Karoo NP

Beaufort West Road Laingsburg LM R407 N12 Railway Prince Albert LM Laingsburg Prince Albert N1 Matjesfontein

Cape Town

George Source: Monitor analysis UUP-WRD-Central Karoo Profile-301106-IS 8 Nodal Economic Profiling Project Business Trust & dplg, 2007 Introduction Central Karoo Some observations about Central Karoo

“Central Karoo is highly urbanised and the agricultural areas around Beaufort West and Laingsburg are particularly depopulated” ± Central Karoo Economic Regeneration Study (Central Karoo DM 2003)

“Central Karoo is a semi-desert and hence the potential for extensive agriculture is very low” ± Department of Agriculture, Laingsburg

“In a town like Beaufort West you are far away from all markets” ± Central Karoo LED Manager about the remote location of Central Karoo

“Only 2% of all trips to the Western Cape are taken with the Central Karoo as the prime destination, despite the fact that approximately 15,000 cars and 1,000 trucks pass through Beaufort West every day” ± Study of the tourism potential in Beaufort West (Development Southern Africa Vol. 22, 2005)

“The mining companies are serious about their development plans and are investing 1 billion Rand in the region” ± Beaufort West Rotary President about the expected uranium mining boom

UUP-WRD-Central Karoo Profile-301106-IS 9 Nodal Economic Profiling Project Business Trust & dplg, 2007 Introduction Central Karoo Key challenges

Central Karoo is a semi-desert area with a harsh climate and very limited rainfall

Except for a small region in the southern part of the node the potential for extensive agriculture Land and Climate: Land and Climate: is very limited SSeemmii--ddeesseerrtt The Karoo soil does not respond well to water, and irrigation increases the concentration of minerals harmful to crops

Although the Central Karoo is ideally located along the N1 connecting Gauteng with Cape Town LLooccaattiioonn aanndd the distances to the main markets, Cape Town and Port Elizabeth, are a major constraint to TTrraannssppoorrtt:: RReemmoottee,, rreelliiaanntt oonn rrooaadd small businesses ttrraannssppoorrtt Under-investment in the rail system has forced people to rely on road transport

Few job opportunities in the Central Karoo forces economically active people to move away and seek employment elsewhere MMiiggrraattiioonn PPaatttteerrnnss:: SSkkiillllss oouuttffllooww Due to lack of opportunities for further education, young people tend to leave Central Karoo for Cape Town or Port Elizabeth and very few people return after having finished their education

Although the HIV and AIDS prevalence is lower than the national average, a dramatic increase is expected, since prostitution targeting mainly truck drivers spending the night in and around Beaufort West is on the increase

HIV and AIDS: Rapid HHIIVV aanndd AAIIDDSS:: RRaappiidd Among uneducated people there is a lack of HIV and AIDS awareness

sspprreeaadd Central Karoo has not yet been exposed to aggressive awareness campaigns such as those seen in KwaZulu-Natal and Eastern Cape

Source: Monitor analysis; Interviews UUP-WRD-Central Karoo Profile-301106-IS 10 Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Local people portrait – Eldo Peters

Eldo Peters is a 32-year-old father of two living in Beaufort West. He was born and raised in the town and also received much of his schooling there. A young and rebellious Eldo was sent to Cape Town to complete his matric year in an attempt to steer him away from drug and alcohol abuse. Eldo explains this phase was a misguided attempt to acquire street credibility ± something he lacked due to his father's involvement with the apartheid regime.

Struggling to get a job, and with no vision, he worked as a handyman in the local area ± first for other people, and then on his own. A keen interest to work with his hands drove him to answer a recruitment advertisement for a proposed leather factory in a local newspaper in 2002. The leather factory was initiated as a job-creation project and was driven by the Council for Scientific and Industrial Research. He was employed, sent to Cape Town for training, and today works as the Beaufort West factory manager.

His six days a week, eight hours a day job earns him R1,300 per month. This is only sufficient to cover living expenses, forcing Eldo to take short-term loans. The financial pressure experienced since his wife stopped working to look after his sickly mother has necessitated the intake of boarders to help the Peters family make ends meet.

Eldo regards life in this Central Karoo town as bearable, citing the friendliness of people as a positive factor. But racial divisions persist and social ills abound. The spread of HIV and AIDS is a major concern, as is the youth's lack of vision that fuels their experimentation with drugs and alcohol.

Having been there himself, Eldo is adamant about the importance of obtaining a proper education. This, he believes, will enable his two children to have a better life.

Source: Interviews UUP-WRD-Central Karoo Profile-301106-IS 11 Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Overview

IInnttrroodduuccttiioonn KKeeyy ddaattaa ppooiinnttss CCuurrrreenntt aaccttiioonn

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

SSnnaappsshhoott GGeeooggrraapphhyy GGoovveerrnnaannccee

AArreeaa ssuummmmaarryy SSppaattiiaall ddeevveellooppmmeenntt IIDDPP aasssseessssmmeenntt

KKeeyy cchhaalllleennggeess DDeemmooggrraapphhyy DDeevveellooppmmeenntt pprroojjeeccttss

LLooccaall ppeeooppllee ppoorrttrraaiitt IInnccoommee aanndd eemmppllooyymmeenntt

EEdduuccaattiioonn

HHeeaalltthh

DDeevveellooppmmeenntt ssccoorreeccaarrdd

UUP-WRD-Central Karoo Profile-301106-IS 12 Nodal Economic Profiling Project Business Trust & dplg, 2007 Key data points Central Karoo Geography This sparsely populated area connects northern provinces to coastal regions

MMaapp aanndd ggeeooggrraapphhiiccaall ffeeaattuurreess GGeeooggrraapphhiiccaall ffeeaattuurreess LLooccaall mmuunniicciippaalliittiieess,, ppooppuullaattiioonn aanndd mmaajjoorr ttoowwnnss

TThhrreeee llooccaall mmuunniicciippaalliittiieess ((LLMM)) aanndd aa ddiissttrriicctt mmaannaaggeemmeenntt aarreeaa ((DDMMAA))¹¹:: Beaufort West LM Murraysburg DMA –– BBeeaauuffoorrtt WWeesstt LLooccaall MMuunniicciippaalliittyy ¡ ¡ includes Beaufort West (district municipal centre), Karoo NP includes Beaufort West (district municipal centre), MMeerrwweevviillllee aanndd NNeellssppoooorrtt ¡ Beaufort West ¡ ppooppuullaattiioonn 3377,,110077 Road – Prince Albert Local Municipality Laingsburg LM R407 N12 Railway – Prince Albert Local Municipality ¡ Prince Albert LM ¡ iinncclluuddeess PPrriinnccee AAllbbeerrtt,, LLeeeeuu GGaammkkaa aanndd Laingsburg Prince Albert KKllaaaarrssttrroooomm ¡ N1 Matjesfontein ¡ ppooppuullaattiioonn 1100,,551122 –– LLaaiinnggssbbuurrgg LLooccaall MMuunniicciippaalliittyy ¡ ¡ iinncclluuddeess LLaaiinnggssbbuurrgg aanndd MMaattjjeessffoonntteeiinn ¡ ¡ ppooppuullaattiioonn 66,,668811 ((lloowweesstt ppooppuullaatteedd mmuunniicciippaall TTeerrrraaiinn aanndd nnaattuurraall rreessoouurrcceess aarreeaa iinn SSoouutthh AAffrriiccaa))

CCeennttrraall KKaarroooo ffoorrmmss ppaarrtt ooff tthhee GGrreeaatt KKaarroooo aanndd iiss –– DDiissttrriicctt MMaannaaggeemmeenntt AArreeaa ¡ ccllaassssiiffiieedd aass aa uunniiqquuee aarriidd zzoonnee ¡ iinncclluuddeess tthhee ttoowwnn ooff MMuurrrraayyssbbuurrgg

TThhee KKaarroooo ppllaatteeaauu iiss tthhee llaarrggeesstt ooff iittss kkiinndd oouuttssiiddee AAssiiaa TTrraannssppoorrttaattiioonn

TThhee llaanndd iiss rriicchh iinn ffoossssiillss aanndd hhoouusseess tthhee llaarrggeesstt vvaarriieettyy TTaarrrreedd mmaaiinn rrooaaddss:: 440099 kkmm;; nnaattiioonnaall rrooaadd:: 335555 kkmm

ooff ssuuccccuulleennttss iinn tthhee wwoorrlldd TThhiirrttyy--oonnee rraaiill ssttaattiioonnss ––mmaannyy nnoo lloonnggeerr ooppeerraattiioonnaall

AA nnuummbbeerr ooff mmoouunnttaaiinn rraannggeess bboorrddeerrss tthhee ddiissttrriicctt TThhee NN11 aanndd NN1122 nnaattiioonnaall hhiigghhwwaayyss jjooiinn iinn BBeeaauuffoorrtt WWeesstt

Note: 1A district management area does not have a local municipality and there is no establishment notice for such an area. Hence it will be represented and administered by the district municipality Source: Central Karoo IDP Review 2004/05; Old Monitor Profile; www.centralkaroo.co.za; www.thegreatkaroo.com; www.wcape.school.za UUP-WRD-Central Karoo Profile-301106-IS 13 Nodal Economic Profiling Project Business Trust & dplg, 2007 Key data points Central Karoo Climate Central Karoo has a harsh climate with low rainfall

RRaaiinnffaallll AArriiddiittyy

Rainfall ± Mean annual Aridity zones 0-200 mm Hyper-arid zone 201-400 mm Arid zone 401-600 mm Semi-arid zone

The Swartberg mountain range borders the node Central Karoo is a semi-desert to the south, and restricts the amount of rain that Only the region's southern-most parts (Prince reaches the region from the coast Albert, Klaarstroom and Vleiland) can be classified Droughts occur frequently, but flash floods have as semi-arid and can sustain agricultural activities been known to hit the area from time to time other than sheep farming

Source: Agricultural Geo-Referenced Information System UUP-WRD-Central Karoo Profile-301106-IS 14 Nodal Economic Profiling Project Business Trust & dplg, 2007 Key data points Central Karoo Spatial development The majority of the population in Central Karoo live in urban areas and have good access to basic services KKeeyy iinnddiiccaattoorrss:: 22000011 OObbsseerrvvaattiioonnss zz PPooppuullaattiioonn ddeennssiittyy:: 11..66 ppeerrssoonnss // kkmm22 zz TThhee vvaasstt nnaattuurree ooff tthhee nnooddee,, wwiitthh llaarrggee ppaarrttss ooff llaanndd ddeeddiiccaatteedd ttoo ffaarrmmiinngg,, ccrreeaatteess ddiiffffeerreenntt zz Population: Rural 20.1%, urban 79.9% Population: Rural 20.1%, urban 79.9% bbaassiicc sseerrvviiccee nneeeeddss zz DDwweelllliinnggss:: FFoorrmmaall 9977..99%%,, iinnffoorrmmaall 22..11%% zz RReemmaaiinniinngg bbaassiicc sseerrvviiccee bbaacckkllooggss aarree pprriimmaarriillyy rreellaatteedd ttoo ffaarrmmss

Households Without Access to Basic Services: 2001 Type of Housing: 2001 80% Separate house or 92% brick structure

59% Informal dwelling / s 60% d 2% l shack o h e s

u Traditional housing with

o 2%

h traditional material

f 40% o

g Other 2% a t n

e 20%

c Flat in blocks of flats r 20% 16% e or town / cluster / 1% P semi-detached house 4% House / flat / room in 1% 0% back yard Electricity Piped Water Waste removal Telephone 0% 25% 50% 75% 100% Note: Definitions of basic access: Electricity for lighting; piped water within 200 m; waste removal by municipality or communal dump; phone or cell phone Source: Stats SA Census 2001 UUP-WRD-Central Karoo Profile-301106-IS 15 Nodal Economic Profiling Project Business Trust & dplg, 2007 Key data points Central Karoo Demography A young, predominantly Afrikaans-speaking population

Age Distribution: 2001 Gender Distribution: 2001 45% 100% TToottaall PPooppuullaattiioonn:: 6600,,448844 32.7% 80% s s

t 48.4% t n

n Male

30% e 64.9% e d d i

i 24.5% 60% s

s 21.0% e e R R 15.9%

f 40% o o

15% Female % % 6.0% 51.6% 20% 35.1%

0% 0% 0-14 15-29 30-44 45-64 65 + Total Population Head of Household

Household Size: 2001 Language Distribution: 2001 60% 100% 52.3% 89.3% TToottaall NNoo.. ooff HHoouusseehhoollddss:: 1155,,000099

s 80% s d

39.9% t l n o 40% e h d e

i 60% s s u e o R

H f

40% f o

o 20%

% % 7.8% 20% 9.1% 1.1% 0.5% 0% 0% 1 to 3 4 to 7 8 + Afrikaans IsiXhosa English Other

Source: Stats SA Census 2001 UUP-WRD-Central Karoo Profile-301106-IS 16 Nodal Economic Profiling Project Business Trust & dplg, 2007 Key data points Central Karoo Income and employment Despite high employment levels in this node, 63% of households still live below the poverty line, indicating a low wage level

Annual Household Income: 2001 Employment Figures: 2001 45% 60% 35.0% 43.3% s Household Subsistence Household Subsistence s d t l n o 30% 27.5% LLeevveell:: RR1199,,220000 ppeerr aannnnuumm 40% 36.2% e h d e i s s u

18.8% e o

R 20.5%

H f

f 15% o 20%

o 9.4%

6.2% % % 3.1% 0% 0% Below R9,601- R19,201- R38,401- R76,801- Above Employed Unemployed Not Economically R9,600 19,200 38,400 76,800 153,600 R153,601 Active

Employment by Industry (Top Five): 2001 Work Status: 2001

s 40% 100% n s 87.0% o n s o

r 30.8% s e r 80% e P

P d

e d 60% y e o 17.8% y l 20% o p 14.7% l p

m 40% m E 9.9%

9.0% f E

o f

o 20%

% 6.9% 4.1% % 1.7% 0.3% 0% 0% Agriculture, Community; Wholesale & Private Undetermined Paid Self- Paid Family Employer Unpd.Family Hunting, Social & Retail Trade Households Employee Employed Worker worker Forestry & Personal Fishing Services

Source: Stats SA Census 2001 UUP-WRD-Central Karoo Profile-301106-IS 17 Nodal Economic Profiling Project Business Trust & dplg, 2007 Key data points Central Karoo Education Limited access to tertiary facilities has led to a low level of further education

School Attendance (Aged 5-24 yrs): 2001 Education Levels (Aged 20+ yrs): 2001 100% 50% Central Karoo

s Central Karoo r 4 y

2 80% All Nodes 40% + - 74% All Nodes 0 5

67%

2 32%

d 63% Rest of SA 31%28%

d 29%

e Rest of SA e g 60% 30% s g A r 23% A . 22% y

. p p o 37% 19%

40% o 20% P 17%

15% 15% 15% P f 30% 13%

25% f o

o 9% 9% % 20% 10% 6% 6% % 6% 5% 3% 0% 1% 0% 0% None Pre-school & School Tertiary None Some Complete Some Std 10 / Higher Primary Primary Secondary Grade 12

Number of Schools: 2005 20 KKeeyy iissssuueess ¢ ¢ There seems to be a perception that some high s 15 There seems to be a perception that some high l

o 15 o sscchhoooollss iinn tthhee ddiissttrriicctt eexxppeerriieennccee aa llaacckk ooff ffuunnddiinngg h

c 12 which negatively affects the schools' competitive

S which negatively affects the schools' competitive

o 10 position compared with outer nodal secondary schools position compared with outer nodal secondary schools r ¢ e ¢ b 5 AA llaacckk ooff tteerrttiiaarryy ffaacciilliittiieess pprroovviiddeess aa bbaarrrriieerr ttoo ffuurrtthheerr m

u 5 eedduuccaattiioonn ±±wwhheerree ffuunnddss ffoorr tteerrttiiaarryy eedduuccaattiioonn aarree N aavvaaiillaabbllee,, ssttuuddeennttss aarree ffoorrcceedd ttoo lleeaavvee tthhee ddiissttrriicctt ttoo 0 ccoonnttiinnuuee tthheeiirr ssttuuddiieess.. HHiigghh lleevveell iinniittiiaattiivveess aarree,, Pre-Primary Primary Secondary hhoowweevveerr,, iinn tthhee ppiippeelliinnee ttoo aaddddrreessss tthhiiss mmiiggrraattiioonn

Note: Tertiary includes university, college, technikon and adult education Source: Stats SA Census 2001; Central Karoo District Municipality Department of Education; Interviews UUP-WRD-Central Karoo Profile-301106-IS 18 Nodal Economic Profiling Project Business Trust & dplg, 2007 Key data points Central Karoo Health Health care expenditure in this node is the highest of all rural nodes, and is even high compared with non-poverty nodes

Per Capita Health Expenditure: 2001 Antenatal HIV Infection Rate: 20051 400 40% 325 V 300 I 30%

H 26%

n 24% h t i o s

r 199 W

200 d 20% P

e / t

135 s R e T 100 10% 7% %

0 0% Central Karoo Node Average Rest of SA Central Karoo Node Average Rest of SA

Daily Number of Patients Per Nurse: 2004 Health centres 70 Health centres

y zz Good health care infrastructure a 60 54 Good health care infrastructure D

/ 50 zz e RReellaattiivveellyy eeffffeeccttiivvee sseerrvviicciinngg ooff rreemmoottee

s 41 r 37 u 40 aarreeaass tthhrroouugghh mmoobbiillee sseerrvviicceess,, tthhoouugghh N

s 30 ssoommee ssttaaffffiinngg ccoonnssttrraaiinnttss eexxiisstt t n e i t 20 zz The priority in the region is the fight

a The priority in the region is the fight P 10 aaggaaiinnsstt ttuubbeerrccuulloossiiss ((TTBB)) ((440000 ccaasseess ppeerr 0 110000,,000000 ppooppuullaattiioonn)) Central Karoo Cape Town South Africa

Note: Data are based on municipal demarcation as of 2001; 1HIV prevalence among antenatal patients (pregnant women) Source: Health Systems Trust Reports: The District Health Barometer, November 2005, Health and Related Indicators, 2005 and Exit Report Central Karoo Municipality, 2004 UUP-WRD-Central Karoo Profile-301106-IS 19 Nodal Economic Profiling Project Business Trust & dplg, 2007 Key data points Central Karoo Development scorecard

Central Karoo development scorecard Difference vs Rural node All node National Rank out of Central Karoo national average average average rural nodes average 1=Best, 14=Worst Poverty incidence (% of households 62.5% 84.7% 81.0% 65.3% 2.80% 1 below HSL)1

Employment rate 36.2% 15.4% 19.3% 33.7% 2.50% 1

Households without basic 3.5% 64.9% 55.1% 27.9% 24.40% 1 access to water2 Households without access to 16.1% 56.7% 50.3% 30.3% 14.20% 1 electricity3 Percentage of adults with limited 49.1% 60.3% 54.1% 40.3% 8.80% 2 education4

Better than national avg. Worse than national avg.

Note: 1 = highest score, 14 = lowest score; 1HSL = Household Subsistence Level and is equal to R19,200 per annum (R1,600 per month); 2Defined as not having piped water within a distance of 200 m of dwelling (govt. policy on minimum basic human need); 3Based on households that do not use electricity as a source for lighting; 4All adults aged 20+ yrs with no schooling at secondary level or above (Stats SA indicator of educational deprivation) Source: Stats SA Census 2001 UUP-WRD-Central Karoo Profile-301106-IS 20 Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Overview

IInnttrroodduuccttiioonn KKeeyy ddaattaa ppooiinnttss CCuurrrreenntt aaccttiioonn

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

SSnnaappsshhoott GGeeooggrraapphhyy GGoovveerrnnaannccee

AArreeaa ssuummmmaarryy SSppaattiiaall ddeevveellooppmmeenntt IIDDPP aasssseessssmmeenntt

KKeeyy cchhaalllleennggeess DDeemmooggrraapphhyy DDeevveellooppmmeenntt pprroojjeeccttss

LLooccaall ppeeooppllee ppoorrttrraaiitt IInnccoommee aanndd eemmppllooyymmeenntt

EEdduuccaattiioonn

HHeeaalltthh

DDeevveellooppmmeenntt ssccoorreeccaarrdd

UUP-WRD-Central Karoo Profile-301106-IS 21 Nodal Economic Profiling Project Business Trust & dplg, 2007 Governance Central Karoo District and local municipality structure The Central Karoo District Municipality incorporates three municipalities and a district management area

CCeennttrraall KKaarroooo DDiissttrriicctt MMuunniicciippaalliittyy

DDiissttrriicctt BBeeaauuffoorrtt WWeesstt LLaaiinnggssbbuurrgg PPrriinnccee AAllbbeerrtt MMaannaaggeemmeenntt LLooccaall LLooccaall LLooccaall AArreeaa:: MMuunniicciippaalliittyy MMuunniicciippaalliittyy MMuunniicciippaalliittyy MMuurrrraayyssbbuurrgg

Source: Central Karoo IDP Review 2005/06 UUP-WRD-Central Karoo Profile-301106-IS 22 Nodal Economic Profiling Project Business Trust & dplg, 2007 Governance Central Karoo Political structure of the Central Karoo District Municipality

EExxeeccuuttiivvee MMaayyoorr DD HHuuggoo

MMuunniicciippaall MMaannaaggeerr NN NNoorrttjjee

DDiirreeccttoorr:: CCoorrppoorraattee DDiirreeccttoorr:: TTeecchhnniiccaall DDiirreeccttoorr:: HHeeaalltthh DDiirreeccttoorr:: FFiinnaannccee SSeerrvviicceess SSeerrvviicceess JJ PPhhiilllliippss CC KKyymmddeellll NN NNoorrttjjee JJ TThheerroonn

DDiissttrriicctt DDiissaasstteerr HHuummaann PPIIMMSS LLEEDD MMaannaaggeemmeenntt AAddmmiinniissttrraattiioonn MMaannaaggeemmeenntt RReessoouurrcceess AArreeaa SS JJoooossttee TT HHeennggee SS NNggwweevvuu HH RRuusstt GG vvaann ZZyyll JJ NNeeeetthhlliinngg

RReeggiioonnaall TToouurriissmm OOffffiicceerr JJ JJoonnkkeerrss Source: Central Karoo District Municipality UUP-WRD-Central Karoo Profile-301106-IS 23 Nodal Economic Profiling Project Business Trust & dplg, 2007 Governance Central Karoo Sources of funding and budget breakdown

2004/2005 (expected) 2005/2006 2006/2007 (forecast) Regional levies 3,123,445 0 0

Government grants and subsidies 55,190,460 48,029,534 50,189,432

Other income 4,941,108 6,701,441 9,495,389

Total financing 63,255,013 54,730,975 59,684,821

Total expenditure / budgeted expenditure 63,255,013 54,731,025 59,684,821 ¢ Operating Expenditure Central Karoo District Municipality: 2006/07 ¢ IInnccoommee ffrroomm ggrraannttss aaccccoouunnttss 70 ffoorr uuppwwaarrddss ooff 8800%% ooff 5.6 61.8 mmuunniicciippaall ffuunnddss 1.3

60 ¢

1.4 ¢ 4.6 SSttaaffffiinngg ccoossttss mmaakkee uupp oonnee-- 6.4 50 ffiifftthh ooff tthhee ooppeerraattiinngg bbuuddggeett ) 6.7 ¢ ¢ n IInn aaddddiittiioonn ttoo tthhee ooppeerraattiioonnaall o

i 10.3 l l i 40 bbuuddggeett tthheerree iiss aa ccaappiittaall m ( wwoorrkkss bbuuddggeett ooff RR22..66 mmiilllliioonn d

n 30

a 25.4 ffoorr iinnffrraassttrruuccttuurree--rreellaatteedd R iimmpplleemmeennttaattiioonn ±±tthhiiss iiss,, 20 hhoowweevveerr,, ssuubbssttaannttiiaallllyy lloowweerr than the R14.3 million 2004/5 10 than the R14.3 million 2004/5 ccaappiittaall bbuuddggeett 0 Road Finance & Planning & Health Executive & Electricity Waste Other Total Transport Admin Development Council Management

Source: Central Karoo Budget Presentation 2006; Central Karoo IDP Review 2005/06 UUP-WRD-Central Karoo Profile-301106-IS 24 Nodal Economic Profiling Project Business Trust & dplg, 2007 Governance Central Karoo Overview of nodal management

Capability z Faith exists in the district municipality's ability to maintain a conducive business environment z Local government's job creation credentials have been called into question Internal Politics z Some suggestion of inter-departmental conflicts exists Corruption z The district municipality has been plagued by corruption scandals z Former municipal manager was removed from power earlier this year following corruption allegations z Corruption allegations have also been levelled against the previous executive mayor

z The above relates to a collection of private sector opinions gathered through interviews conducted in the node, and news information as reported in the South African press z These opinions could be biased and are not based on accurate data

However, it is clear that regardless of their validity these opinions do exist particularly among the private sector, which does impact on their willingness to undertake investment in the node Source: Interviews; Mail & Guardian, 16 August 2006; www.news24.com, 20 September 2005 UUP-WRD-Central Karoo Profile-301106-IS 25 Nodal Economic Profiling Project Business Trust & dplg, 2007 IDP assessment Central Karoo Key facts of the IDP

£ Central Karoo district municipality Geographic area Covers more than the node

Geographic area £ covered Includes the local municipalities of Beaufort West, Laingsburg, Prince Albert and a Covers exactly the node covered district management area (Murraysburg) Covers less than the node

Month / year of latest £ Month / year of latest 2005/2006 review for implementation 2006/2007 ppuubblliiccaattiioonn

£ The actual document is 60 pages which includes 28 pages of action items

Length / form £ Length / form Mainly text and tables

£ The initial IDP was compiled by PricewaterhouseCoopers (PWC) in 2002 Public sector mainly Private sector mainly £ Author / main The district municipality has subsequently taken ownership of the IDP review Both equally Author / main process, completing two review cycles contributors

contributors £ There has not been an IDP manager in the district municipality since 2002, which Includes consultants has resulted in the PIMS office managing the IDP process Does not include consultants Relies only on consultants

£ Process started in 2001 and the document was completed in phases

£ The first IDP was completed in March 2002 Timing

Timing £ Two review cycles have taken place, focusing on process alignment and the PPrroocceessss ooff identification of key performance areas for the district

creation £ creation Transformation of IDP from vehicle for identification of infrastructure needs to KKeeyy vehicle driving social and economic development aassppeeccttss £ Adoption of performance management system software, developed by PWC, by all local municipalities

£ Rapid review ± Council for Scientific and Industrial Research (CSIR) £ LED regeneration study ± SETPLAN OOtthheerr kkeeyy rreellaatteedd £ Economic baseline studies (for all local municipalities and the DMA) ± Various ddooccuummeennttss £ Local economic development plan ± Anix Trading £ Vision 2010 ± Central Karoo District Municipality (CKDM)

Note: CKDM = Central Karoo District Municipality Source: Central Karoo IDP Review 2005/06 UUP-WRD-Central Karoo Profile-301106-IS 26 Nodal Economic Profiling Project Business Trust & dplg, 2007 IDP assessment Central Karoo Key characteristics of the IDP £ Ensure project alignment on all levels Provides insight mainly £ FFooccuuss // ppuurrppoossee Strategically guide execution of developmental plans Provides information mainly £ Used as instrument to obtain funding Both equally

£ Only the previous (2004/2005) IDP review is available online on the Easy to find / access Cape Gateway website AAcccceessssiibbiilliittyy Difficult to find / access £ The CKDM does not have its own website

£ Specific assessment of local needs and objectives Generally, very vague

Precision £ Generally, quite precise Precision Frequent inclusion of time frames

AAccttuuaall uusseerr ggrroouupp // kkeeyy £ Document compiled to service needs of development tasked Government mainly current recipients officials and to act as information source for communities Private sector mainly current recipients Both equally

Is viewed as key guiding document £ EExxtteenntt ooff uussaaggee // iimmppaacctt The IDP is regarded as a progress tracker Is used minimally, very little impact

£ Demographic profiling included is limited to key statistics

OOtthheerr aassppeeccttss £ Includes detailed IDP process overview, as well as challenges facing the IDP process

Note: CKDM = Central Karoo District Municipality Source: Central Karoo IDP Review 2005/06 UUP-WRD-Central Karoo Profile-301106-IS 27 Nodal Economic Profiling Project Business Trust & dplg, 2007 IDP assessment Central Karoo Contents of the IDP relevant to the node

TTyyppeess ooff iinnffoorrmmaattiioonn ccoonnttaaiinneedd iinn tthhee IIDDPP AAsssseessssmmeenntt

Examples of key issues areas Examples of key issues areas Typical level of detail provided Examples of key issues areas Examples of key issues areas Typical level of detail provided Highly comprehensive covered not covered across issue areas covered not covered across issue areas breadth depth £ £ £ £ NNooddaall pprrooffiillee lliimmiitteedd ttoo bbrrooaadd £ IImmppaacctt aasssseessssmmeenntt oovveerrvviieewwss £ IIssssuueess hhaavvee bbeeeenn pprriioorriittiisseedd £

demographics of previous projects £ demographics of previous projects CClleeaarr pprroojjeeccttss hhaavvee bbeeeenn £ £ £ DDiissttrriicctt--wwiiddee ssoocciiaall nneeeeddss £ KKeeyy sseeccttoorr iinnffoorrmmaattiioonn iinniittiiaatteedd wwiitthh rraattiioonnaallee £ £ £ £ £ IInnssttiittuuttiioonnaall aarrrraannggeemmeennttss £ AAsssseessssmmeenntt ooff kkeeyy bbuussiinneessss RReessppoonnssiibbiilliittyy aatt mmuunniicciippaall £

£ level, national sectoral PPrriioorriittyy ffooccuuss aarreeaass aanndd nneeeeddss ±±aa nnuummbbeerr ooff sseeppaarraattee level, national sectoral departments involved and ssppeecciiffiicc aaccttiivviittiieess ttoo bbee LLEEDD ssttuuddiieess eexxiisstt ttoo aaddddrreessss departments involved and some quantification of budget uunnddeerrttaakkeenn tthhiiss some quantification of budget Key issues over a three-year period

£ over a three-year period £ not covered BBuuddggeettss iinncclluuddeedd

QQuuaalliittyy ooff iinnffoorrmmaattiioonn ccoonnttaaiinneedd iinn tthhee IIDDPP AAsssseessssmmeenntt

Highly reliable ¢ ¢ DDaattaa aarree bbaasseedd oonn CCeennssuuss 22000011 ((wwhhiicchh mmaayy bbee oouuttddaatteedd)) aanndd oonn mmoorree rreecceenntt ssttuuddiieess ssppeecciiffiiccaallllyy ccoommmmiissssiioonneedd ffoorr tthhee ddiissttrriicctt ((CCSSIIRR RRaappiidd RReevviieeww,, 22000022)),, oorr rreellaatteedd ttoo ddeevveellooppmmeenntt ((MMeeaassuurriinngg RRuurraall DDeevveellooppmmeenntt,, 22000022)) ¢ ¢ TThhrreeee ssttuuddiieess aarroouunndd LLEEDD ccoommmmiissssiioonneedd bbyy tthhee ddiissttrriicctt mmuunniicciippaalliittyy ccoouulldd bbee mmoorree uusseeffuull wwiitthh rreeggaarrddss ttoo iinnvveessttmmeenntt ddeecciissiioonnss bbyy pprroovviiddiinngg mmoorree sseeccttoorr lleevveell iinnffoorrmmaattiioonn Very risky to use for investment decisions

Source: Central Karoo IDP Review 2005/06 UUP-WRD-Central Karoo Profile-301106-IS 28 Nodal Economic Profiling Project Business Trust & dplg, 2007 IDP assessment Central Karoo Action orientation of the IDP for the node

AAccttiioonnss pprrooppoosseedd AAsssseessssmmeenntt

EExxaammpplleess ooff kkeeyy aaccttiioonnss pprrooppoosseedd iinn IIDDPP EExxaammpplleess ooff kkeeyy aaccttiioonnss nnoottpprrooppoosseedd iinn IIDDPP Highly £ £ £ £ LLEEDD AAggrriiccuullttuurree action-oriented ±± TToouurriissmm ccaappttuurree aanndd pprroommoottiioonn ±± OOnnllyy oonnee aaccttiioonn aarroouunndd aaggrrii--pprroocceessssiinngg ±± IInnvveessttmmeenntt ppoolliiccyy rreeffiinneemmeenntt iiss iiddeennttiiffiieedd £ £ BBaassiicc sseerrvviicceess ±± EElliimmiinnaattiioonn ooff sseerrvviiccee bbaacckkllooggss ±± IInnffrraassttrruuccttuurree mmaaiinntteennaannccee aanndd iimmpprroovveemmeenntt £ £ AAddddrreessss ccoonnssttrraaiinnttss iinn tthhee IIDDPP pprroocceessss ±± CCoommmmuunniittyy ppaarrttiicciippaattiioonn £ £ EEnnssuurree ffiinnaanncciiaall vviiaabbiilliittyy ±± CCrreeaattiioonn ooff aa mmooddeell ffoorr sshhaarreedd mmuunniicciippaall sseerrvviicceess Key action areas £ £ IImmpprroovvee ccaappaacciittyy ooff llooccaall ggoovveerrnnmmeenntt not covered ±± PPeerrffoorrmmaannccee mmaannaaggeemmeenntt ssyysstteemmss ±± RRoollee ccllaarriiffiiccaattiioonn aanndd eexxeeccuuttiivvee ddeevveellooppmmeenntt

SSuuppppoorrtt ooff iimmpplleemmeennttaattiioonn ooff tthhee pprrooppoosseedd aaccttiioonnss AAsssseessssmmeenntt

£ Drives £ Frequent inclusion of timelines for proposed actions Frequent inclusion of timelines for proposed actions implementation well £ £ SSoommee qquuaannttififiiccaattiioonn ooff ccoosstt oovveerr aa tthhrreeee--yyeeaarr ppeerriioodd £ £ RReessppoonnssiibbiilliittyy iiddeennttiiffiieedd aatt mmuunniicciippaall ooffffiicciiaall lleevveell £ £ AAcchhiieevveemmeennttss ssoo ffaarr iiddeennttiiffiieedd £ £ SSoommee kkeeyy ppeerrffoorrmmaannccee iinnddiiccaattoorrss iinncclluuddeedd £ £ SSoouurrccee ffuunnddeerrss iiddeennttiiffiieedd iinn tthhee mmaajjoorriittyy ooff ccaasseess £ £ SSuuppppoorrttiinngg aaccttiioonnss iiddeennttiiffiieedd ffoorr mmaannyy iitteemmss pprrooppoosseedd Does not drive implementation

Source: Central Karoo IDP Review 2005/06 UUP-WRD-Central Karoo Profile-301106-IS 29 Nodal Economic Profiling Project Business Trust & dplg, 2007 IDP assessment Central Karoo General assessment of the IDP in relation to the node

GGeenneerraall aasssseessssmmeenntt ––DDooeess tthhee IIDDPP ddeelliivveerr wwhhaatt iitt pprroommiisseess?? AAsssseessssmmeenntt £ £ GGoooodd uunnddeerrssttaannddiinngg ooff nneeeeddss aanndd oobbjjeeccttiivveess aass wweelll aass mmuunniicciippaall mmeeaannss aanndd ccaappaabbiilliittyy Highly £

£ satisfactory SSttrraatteeggyy iiss cclleeaarr,, hhaass bbeeeenn ttrraannssllaatteedd iinnttoo kkeeyy ppeerrffoorrmmaannccee aarreeaass aanndd rreellaatteess wweelll ttoo iiddeennttiiffiieedd aaccttiioonnss £ £ SSppeecciiffiicc ttaarrggeettss hhaavvee bbeeeenn ffoorrmmuullaatteedd ffoorr ssoommee aaccttiioonnss ((mmoosstt nnoottaabbllyy bbaassiicc sseerrvviiccee ddeelliivveerryy)) aanndd sshhoouulldd mmaakkee tthhee iimmpplleemmeennttaattiioonn ooff tthheessee aaccttiioonnss aasssseessssaabbllee £ £ GGoooodd ggrraasspp ooff hhooww tthhee LLEEDD ssttrraatteeggyy sshhoouulldd rreellaattee ttoo tthhee IIDDPP £ £ LLaacckk ooff ddeettaaiilleedd iimmpplleemmeennttaattiioonn ppllaannss ccoouulldd ccoommpprroommisisee ddeelliivveerryy

Delivers less than it promises

IIDDPP ccoonnttrriibbuuttiioonn ttoo ssttiimmuullaattiinngg eeccoonnoommiicc ggrroowwtthh AAsssseessssmmeenntt

WWhhaatt ttoo kkeeeepp oonn ddooiinngg WWhhaatt ttoo ddoo ddiiffffeerreennttllyy Very useful to growth debate £ £ £ UUnnddeerrssttaannddiinngg tthhee nneeeeddss ooff tthhee nnooddee £ MMoorree ddeettaaiill ttoo bbee ssuupppplliieedd oonn tthhee rreeggiioonn''ss kkeeyy £ £ CCrreeaattiinngg aaccttiioonn iitteemmss tthhaatt wwiilll iimmppaacctt oonn tthhee eeccoonnoommiicc ccoonnttrriibbuuttoorrss ±±aaggrriiccuullttuurree aanndd eennvviirroonnmmeenntt''ss ccoonndduucciivveenneessss ttoo ggrroowwtthh aanndd ttoouurriissmm £ ddeevveellooppmmeenntt £ MMoorree ddeettaaiill iiss rreeqquuiirreedd oonn tthhee ccaappaabbiilliittiieess tthhaatt £ £ PPrriioorriittiissaattiioonn ooff nneeeeddss tthhee mmuunniicciippaalliittyy nneeeeddss ttoo ddeelliivveerr £ £ £ £ IIddeennttiiffiiccaattiioonn ooff ssppeecciiffiicc ttaarrggeettss,, rreessppoonnssiibbllee DDeettaaiilleedd iimmpplleemmeennttaattiioonn ppllaann nneeeeddeedd ttoo ppeeooppllee,, ffuunnddiinngg ssoouurrcceess aanndd ttiimmee ffrraammeess eennssuurree ddeelliivveerryy oonn oobbjjeeccttiivveess ooff ggrroowwtthh aanndd ddeevveellooppmmeenntt Does not contribute to growth debate

Source: Central Karoo IDP Review 2005/06 UUP-WRD-Central Karoo Profile-301106-IS 30 Nodal Economic Profiling Project Business Trust & dplg, 2007 IDP assessment Central Karoo Summary of IDP assessments

IIDDPP ddeelliivveerrss wwhhaatt iitt LLeevveell ooff ddeettaaiill AAccttiioonnss pprrooppoosseedd pprroommiisseess Highly comprehensive Highly Highly breadth depth action-oriented satisfactory

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

QQuuaalliittyy ooff SSuuppppoorrtt ooff CCoonnttrriibbuuttiioonn ttoo iinnffoorrmmaattiioonn iimmpplleemmeennttaattiioonn ssttiimmuullaattiinngg ggrroowwtthh

Highly Drives Very useful to reliable implementation well growth debate

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

UUP-WRD-Central Karoo Profile-301106-IS 31 Nodal Economic Profiling Project Business Trust & dplg, 2007 Development projects Central Karoo ISRDP anchor projects

Total cost 2006- Project name Project description Lead departments 2009 (Rands)

Swartberg Pass rehabilitation Tourism enhancement 10,000,000 DEAT

Pont over Gamkapoort Dam To promote tourism 5,350,000 DEAT and DWAF

To create employment opportunities for the Abattoir and by-products residents of Beaufort West. LED promotion, BEE 5,000,000 DoA, DTI and DoL and value-adding

Job creation, tourism development and LED Cold storage 4,505,000 DoA and DEAT promotion

To contribute towards the co-ordination and Karoo tourism gateway promotion of the tourism in the province; market 2,400,000 DoA Central Karoo as part of the Western Cape LED and BEE. Emerging Farmers' Development. Essential oils To create employment for the residents of 1,930,000 DoA, DTI and DoL Beaufort West.

To promote inward investment and promote Springfontein Dam development 360,000 DWAF and DEAT tourism to create sustainable jobs

Vegetable gardens To address food insecurity and generate income 300,000 DoA

Note: DEAT = Department of Economic Affairs and Tourism; DWAF = Department of Water Affairs and Forestry; DoA = Department of Agriculture; DTI = Department of Trade and Industry; DoL = Department of Labour Source: Central Karoo IDP Review 2005/6 UUP-WRD-Central Karoo Profile-301106-IS 32 Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Central Karoo poverty node

z Research process

z Overview

z Economy

¢ GDP and employment

± Overview ¢ Prioritisation of economic sectors

± Selected sector: Agriculture

± Selected sector: Tourism

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Central Karoo Profile-301106-IS 33 Nodal Economic Profiling Project Business Trust & dplg, 2007 Economy overview Central Karoo Summary

z The Central Karoo GDP had an annual growth rate of 4.4% between 2000 and 2004 and the total GDP was R697.1 million in 2004¹ z The three major sectors in terms of GDP contribution are Transport and Communication, Finance and Business Services, and Wholesale and Retail Trade, together making up 54.4% of the nodal GDP z The hub of the nodal economy is Beaufort West, contributing 74.2% to the nodal Gross Geographic Product (GGP) z Although the nodal economy has grown faster than the provincial economy since 1995, the Gross Domestic Product (GDP) per capita in Central Karoo is still only a third of the Western Cape average z Compared with other nodal areas and also to the national averages, Central Karoo, however, performs very well; the employment rate is higher than the national average and the percentage of people living below the poverty incidence level is lower than the national average z In terms of job creation, agriculture and tourism are the two sectors with the highest potential, whereas mining is the sector with the highest potential for substantial economic growth – Several companies are interested in mining the substantial uranium deposits around Beaufort West and the direct value of the uranium is estimated to be R620 billion Note: ¹Based on Quantec data Source: Quantec; Stats SA Census 2001; Interviews UUP-WRD-Central Karoo Profile-301106-IS 34 Nodal Economic Profiling Project Business Trust & dplg, 2007 Economy overview Central Karoo Regional economic centres Beaufort West is the hub of the nodal economy contributing 74.2% to the total nodal GGP

Beaufort West Beaufort West MMuurrrraayyssbbuurrgg £ £ £

Population 37,107 £ Population 37,107 Population 6,184

£ Population 6,184 £ £ RRuurraall ppooppuullaattiioonn:: 1144%% £

£ Rural population: 10%

£ Rural population: 10% £ TTrraannssppoorrtt aanndd ccoommmmuunniittyy £ services are the most important RReelliieess oonn aaggrriiccuullttuurree

services are the most important £ sseeccttoorrss iinn tteerrmmss ooff GGGGPP £ CCoonnttrriibbuutteess 66..22%% ttoo tthhee ttoottaall £ £ TThhee cceennttrree ooff tthhee nnooddaall eeccoonnoommyy nnooddaall GGGGPP ccoonnttrriibbuuttiinngg 7744..22%% ttoo tthhee ttoottaall nnooddaall GGGGPP

LLaaiinnggssbbuurrgg Beaufort West LM Murraysburg DMA £ £ PPooppuullaattiioonn 66,,668811 £ £ RRuurraall ppooppuullaattiioonn:: 1111%% £ £ EExxtteennssiivvee aaggrriiccuullttuurree pprroodduuccttiioonn Karoo NP £ £ CCoonnttrriibbuutteess 99..55%% ttoo tthhee ttoottaall nnooddaall GGGGPP Beaufort West Road Laingsburg LM R407 N12 Railway Prince Albert LM Laingsburg Prince Albert N1 Matjesfontein PPrriinnccee AAllbbeerrtt £ £ PPooppuullaattiioonn 1100,,551122 £ £ RRuurraall ppooppuullaattiioonn:: 5533%% £ £ EExxtteennssiivvee aaggrriiccuullttuurree pprroodduuccttiioonn £ £ TThhee sseeccoonndd llaarrggeesstt eeccoonnoommyy ccoonnttrriibbuuttiinngg 1100..22%% ttoo tthhee ttoottaall nnooddaall GGGGPP

Source: Central Karoo IDP Review 2004/05; Central Karoo DM: Central Karoo Economic Regeneration Study (2003); Stats SA Census 2001; Interviews UUP-WRD-Central Karoo Profile-301106-IS 35 Nodal Economic Profiling Project Business Trust & dplg, 2007 Economy overview Central Karoo Income The percentage of households living below the household subsistence level is lower than the national average and, compared with other nodal areas, more people have salaries and wages as their main source of income, rather than government grants Annual Household Income: 2001 Source of Income: 2003 100% 100%

Central Karoo Central Karoo South Africa All Nodal Areas 80% 80%

Perrcenttage off househollds lliiviing

bellow householld subsiisttence e

60% m llevell:: o c s

n 60% d I

l 49%

Central Karoo: 63% l o Central Karoo: 63% a h d e o s Soutth Affrriica:: 65% u N

45.8% l o 40%

35% a H t

f o o T

28% f 40% 37.1% % o 32.6% 32.2% 19% % 20% 16% 13% 23.5% 9%9% 6%7% 6% 3% 20% 0% 7.1% 0 0 0 0 0 1 0 0 0 0 0 0 3.2% 6 2 4 8 6 ,6 , , , , , 3 1.5% 9 9 8 6 3 5 R 1 3 7 5 1 - - - 1 w 1 - R 0% o 1 1 e l 0 0 0 1 v e ,6 ,2 ,4 0 o B 9 9 8 ,8 b Salaries & Pensions & Remittances Sales of R 1 3 6 R R 7 A R Wages Grants Farm Products Source: Stats SA Census 2001; Central Karoo DM: Central Karoo Economic Regeneration Study, 2003 UUP-WRD-Central Karoo Profile-301106-IS 36 Nodal Economic Profiling Project Business Trust & dplg, 2007 Economy overview Central Karoo Employment status Although employment has declined over the last decade, the Central Karoo employment rate is still higher than the national average

Employment Status (Population Aged 15-65 years): 2001 Employment Growth 80% 2.0% Central Karoo South Africa 1.5%

60% 1.0%

5 6

- f 5 s o

1 0.5% n

r o d e s e b

43% r

g 42% e m A u P

n s N d

r 40% o 0.0% f i e y 36% t o y

a o l 34% l R u p p G m o A E P C -0.5% f o

24% % 21% 20% -1.0%

-1.5% -1.4%

-1.7% 0% -2.0% Employed Unemployed Not Economically 1995-2004 2000-2004 Active

Source: Stats SA Census 2001; Quantec UUP-WRD-Central Karoo Profile-301106-IS 37 Nodal Economic Profiling Project Business Trust & dplg, 2007 Economy overview Central Karoo Formal employment by sector Agriculture is the single largest employer in the node, accounting for a third of all formal jobs

Formal Employment by Major Sector: 20011 35% 30.8% 30%

n o i t a

l 25% u s r p y o

5 P

20%

6 17.8% - d 5 e y 1 14.7%

o l d 15% p e g m

A 9.9% E

f 10% o 5.2% % 4.7% 4.7% 5% 2.8% 0.4% 0.1% 0% Agriculture, Wholesale & Construction Transport, Electricity, gas hunting, forestry retail trade storage & water supply & fishing & comm. Community, Private Financial, Manu- Mining & social & households insurance, estate facturing Quarrying personal & business services2 services

No. of Jobs 4,177 2,413 1,998 1,348 703 637 632 376 52 8

1 The category ªUndeterminedº employing 9.7% of the population aged 15-65 yrs has been left out 2 This covers the public sector, i.e., civil servants, teachers, health care workers, police, etc. Source: Stats SA Census 2001; Monitor analysis UUP-WRD-Central Karoo Profile-301106-IS 38 Nodal Economic Profiling Project Business Trust & dplg, 2007 Economy overview Central Karoo GDP The economy in Central Karoo has grown faster than the provincial economy over the last decade; the GDP per capita is, however, still only a third of the provincial GDP per capita

GDP (Constant 2000 Prices): 1995-2004 Real GDP Growth 1,000 8% Central 6% Karoo

) 4.4% % 4.2%

( 4.1%

R 4% 3.4% Western 750 G 697.1 A Cape C 667.1 2% 608.1

) 562.7 n 0% o

i 530.8 l l i 1995 - 2004 2000 - 2004 485.7 m

( 500

d n

a GDP per Capita (Constant 2000 Prices): 2004 R 40,000 33,820 Central Karoo 30,000

250 d

n Western

a 20,000

R Cape 11,116 10,000

0 0 1995 1997 1999 2001 2003 2004

Source: Stats SA Census 2001; Quantec UUP-WRD-Central Karoo Profile-301106-IS 39 Nodal Economic Profiling Project Business Trust & dplg, 2007 Economy overview Central Karoo GDP by sector Transport and Communication, together with Finance and Business Services, are the major sectors in terms of GDP contribution and they also showed the highest growth rate over the last decade Share of GDP by Sector: 2004 GDP by Sector (Constant 2000 Prices) 25% 160 Average CAGR for Transport & Communication 21% GDP: 4.1% 140 20% 18% Finance & Business Services 120 ) 4 0 % ( 0 15% 2 Wholesale & Retail Trade

P 15% : D s 100 d G

n f

12% a o

f Agriculture, r General Government o

a 10%

h Forestry & 10% s 80 Services S 9% n

o Fishing i l l i M Manufacturing n 6% i 60 5% P

5% D G 2% 40 Community, Social & 1% Other Personal Services Construction 0% 0% . . l l . s r 20 g i v g n g

. Catering & a r e e n i m a n o n v m i t i i i t e c r r c t i a Electricity , h n Accommodation m e e m S u o i c v

e s t o & r o R i . r S u W S

c M

c & Water C v u F l t e ,

e a t

& c Mining & S o l f a s c

y d

& & t u u n A

n 0

n e i a G

y s

l t r

c n o t o a n r l i y i s a & r r a s T n u o a C

c e t r i s

i -15% -10% -5% 0% 5% 10% 15% r g p g r n s M e e F m i e t l A s n e P i s n c o r n m r u e e h o a o e l

& Real GDP CAGR (1995-2004) r t B F G C E W a T C

Source: Quantec; Monitor analysis UUP-WRD-Central Karoo Profile-301106-IS 40 Nodal Economic Profiling Project Business Trust & dplg, 2007 Economy overview Central Karoo Quantitative prioritisation using economic data The average index (from 100 – high, to 0 – low) represents a quantitative assessment of the potential for economic growth and job creation of the ten different sectors

GDP Employment

Sectors 2004 GDP in Number of Average index Employment constant 2000 GDP index employees Index prices (2004) 1 Agriculture, Forestry and 70,640,660 47 3,258 100 74 High Fishing 2 Wholesale and Retail Trade; 117,785,042 79 1,884 58 68 Catering and Accommodation 3 Finance and Business 127,887,977 86 885 27 56 Services

4 Transport and Communication 148,921,391 100 328 10 55

5 General Government Services 82,537,280 55 1,625 50 53

6 Community, Social and Other 39,027,300 26 1,962 60 43 Personal Services

7 Manufacturing 62,679,502 42 640 20 31

8 Construction 37,387,379 25 753 23 24

9 Electricity and Water 9,782,460 6 52 1 4

10 Mining 437,568 0 5 0 0 Low

/100 /100 /100

Source: Quantec; Monitor analysis UUP-WRD-Central Karoo Profile-301106-IS 41 Nodal Economic Profiling Project Business Trust & dplg, 2007 Economy overview Central Karoo Qualitative prioritisation of top five sectors In particular, the agricultural and the tourism sectors present growth opportunities for the region

Sectors Average index Potential for growth Assessment

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

Forestry and 74 ¤ Fishing Several opportunities for agri-processing give the agricultural sector strong potential for further growth

¤ The sector is the third largest employer after Agriculture and General Government Services

Wholesale and ¤ A large GDP contribution and rapid growth especially for the Wholesale and Retail part Retail Trade; 68 gives this sector high potential for further growth Catering and ¤ Accommodation The tourism sector currently has a rather small GDP contribution but the location en route between Gauteng and Cape Town offers a good opportunity for further growth

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

Business 56 ¤ Services However, this sector is to a large extent dependent on growth in other sectors and the potential for direct growth within this sector is limited

¤ Transport and Communication is the single largest GDP contributor

Transport and ¤ 55 Communication The growth potential is, however, limited due to the fact that the sector is very capital- intensive

¤ The public sector has an average performance in terms of both GDP and number of General employees

Government 53 ¤ Services Since the public sector is funded by taxation, and therefore is itself dependent on growth in the private sector, the potential for direct growth is very limited

Low growth High growth potential potential Source: Quantec; Monitor analysis UUP-WRD-Central Karoo Profile-301106-IS 42 Nodal Economic Profiling Project Business Trust & dplg, 2007 Economy overview Central Karoo Qualitative prioritisation of top potential sectors: Mining A rising uranium price will make uranium mining in Central Karoo economically viable

MMiinniinngg ooff uurraanniiuumm iinn tthhee KKaarroooo iiss PPootteennttiiaall mmiinniinngg bboooomm nnooww eeccoonnoommiiccaallllyy vviiaabbllee zz UUrraanniiuumm wwaass ddiissccoovveerreedd aass lloonngg aass 3300 zz RReesseeaarrcchheerrss eessttiimmaattee tthhaatt tthheerree aarree yyeeaarrss aaggoo iinn CCeennttrraall KKaarroooo,, nneeaarr tthhee sseevveerraall mmiilllliioonn ttoonnss ooff uurraanniiuumm iinn CCeennttrraall bboorrddeerr bbeettwweeeenn tthhee EEaasstteerrnn aanndd KKaarroooo WWeesstteerrnn CCaappee zz WWiitthh aa pprriiccee ooff RR662200//kkgg tthhee vvaalluuee ooff tthhee zz DDuuee ttoo aa mmaassssiivvee ddrroopp iinn uurraanniiuumm pprriicceess ddeeppoossiitt wwoouulldd bbee aarroouunndd RR662200 bbiilllliioonn tthhee uurraanniiuumm ddeeppoossiittss hhaavvee,, hhoowweevveerr,, zz SSeevveerraall ccoommppaanniieess hhaavvee sshhoowwnn iinntteerreesstt been left untouched been left untouched iinn aaccqquuiirriinngg ppeerrmmiissssiioonn ttoo mmiinnee,, ee..gg.. ±± UUrraanniiuumm eexxpplloorraattiioonn ssttooppppeedd iinn tthhee WWeesstteerrnn UUrraanniiuumm,, SSXXRR UUrraanniiuumm OOnnee llaattee 7700ss aanndd eeaarrllyy 8800ss wwhheenn tthhee aanndd BBeeaauuffoorrtt WWeesstt MMiinneerraallss pprriiccee ffeellll ffrroomm RR557700//kkgg ttoo RR110000//kkgg zz BBeeaauuffoorrtt WWeesstt iiss bbeelliieevveedd ttoo bbee tthhee making mining economically unviable making mining economically unviable cceennttrree ooff tthhee mmiinniinngg bboooomm aanndd iittss zz WWiitthh aa uurraanniiuumm pprriiccee ooff aarroouunndd RR662200//kkgg eeccoonnoommyy iiss eexxppeecctteedd ttoo ggrrooww aanndd aa gglloobbaallllyy iinnccrreeaassiinngg ddeemmaanndd ffoorr ssuubbssttaannttiiaallllyy eenneerrggyy,, mmiinniinngg ccoommppaanniieess aarree oonnccee zz RRiissiinngg pprrooppeerrttyy pprriicceess aarree aallrreeaaddyy tthhee again looking into the opportunity of again looking into the opportunity of ffiirrsstt ssiiggnn ooff tthhee bboooommiinngg eeccoonnoommyy mmiinniinngg uurraanniiuumm iinn CCeennttrraall KKaarroooo

Source: Weekend Post, 27 May 2006; Interviews UUP-WRD-Central Karoo Profile-301106-IS 43 Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Central Karoo poverty node

z Research process

z Overview

z Economy

± Overview

¥ Description of current value chain

± Selected sector: Agriculture ¥ Growth constraints and solutions

¥ Potential for sector ± Selected sector: Tourism

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Central Karoo Profile-301106-IS 44 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Summary

z Central Karoo climatic conditions restrict agricultural activity to mainly small stock farming ± a sector currently operating at near capacity and hence offering limited growth opportunities z In the southern areas of the node where there is better access to water, deciduous fruits and vegetables are grown z Agri-processing around sheep farming occurs to a limited extent, while fruit and vegetable processing predominantly takes place on individual farm level z From a nodal perspective, agriculture contributes 10% to GDP and is responsible for 31% of employment opportunities, making it the region's premier employer z In three of the local municipalities (Prince Albert, Laingsburg and Murraysburg), agriculture is both the biggest contributor to GGP and the biggest employer z Wage levels, however, remain low in the agricultural sector z Development in what would appear to be a low potential sector could be explored via the following: ± optimising the value that can be derived from the region's renowned mutton / lamb by establishing Karoo Lamb as a protected brand ± focusing on less water-intensive agricultural opportunities such as olive production ± establishing a regional cold storage facility to enable fruit and vegetable processing

Source: Central Karoo DM: Central Karoo Economic Regeneration Study, 2003; Monitor analysis UUP-WRD-Central Karoo Profile-301106-IS 45 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Overview

IInnppuutt PPrroodduuccttiioonn TTaarrggeett MMaarrkkeettss

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

z Low potential z Predominantly rangeland z Sheep and goat agricultural conditions sheep farming meat is destined for domestic ± Extreme variations ± Main focus is on meat consumption in temperature production ± Limited wool and z Wool, mohair and ± Limited rainfall mohair production deciduous fruit mainly go to major ± Lack of irrigation z Small-scale but top centres for export ± Poor soil quality quality deciduous fruit production on the z Leather products are z Well established southern border of the aimed at the node's transport network node stream of passing tourists ± Rail system z Leather manufacturing z infrastructure and fresh herb production Local consumption is exists but have been introduced as limited as a result of operations are not job creation projects the sparse optimal population

Source: Monitor analysis UUP-WRD-Central Karoo Profile-301106-IS 46 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Inputs ± Climate Agricultural potential is limited by the harsh Central Karoo climate, characterised by large variations in temperatures and low rainfall

Average Temperature Beaufort West: Average Precipitation Beaufort West 1961-1990 and George: 1961-1990 35 80 Average Daily Max Average Daily Min 30 70

60 25

) ) George

s 50 m u i m s ( l 20

e n C o i ( t 40 s a t i e p e i r

15 c g e e r D P 30

10 20 Beaufort West

5 10

0 0 Jan Mar May Jul Sept Nov Jan Mar May Jul Sept Nov

Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec

Source: South African Weather Service UUP-WRD-Central Karoo Profile-301106-IS 47 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Inputs ± Soil The poor quality of soils further restricts agricultural activity

Aridity Zones Water-holding capacity Hyper-arid zone 0-20 mm Arid zone 21-40 mm Semi-arid zone 41-60 mm 61-80 mm 81-100 mm > 100 mm

Land Capability Non-arable; moderate potential grazing land Non-arable; low to moderate potential grazing land Observations Non-arable; low potential grazing land ¥ ¥ Wilderness TThhee CCeennttrraall KKaarroooo iiss aa sseemmii--ddeesseerrtt rreeggiioonn wwiitthh oonnllyy aa ffeeww ppoocckkeettss ooff sseemmii--aarriidd zzoonneess ¥ ¥ LLaanndd ppootteennttiiaall iiss lliimmiitteedd,, ooffffeerriinngg oonnllyy llooww ppootteennttiiaall ggrraazziinngg ±± IInnddiivviidduuaall ffaarrmmss hhaavvee ttoo bbee eexxtteennssiivvee iinn oorrddeerr ttoo ssuuppppoorrtt lliivveessttoocckk ggrraazziinngg rreeqquuiirreemmeennttss ¥ ¥ SSooiillss hhaavvee aa hhiigghh ssooddiiuumm ccoonntteenntt rreessttrriiccttiinngg wwaatteerr--hhoollddiinngg ccaappaacciittyy

Source: Agricultural Geo-Referenced Information System UUP-WRD-Central Karoo Profile-301106-IS 48 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Inputs ± Irrigation Despite the dry climate and need for water there are only four dams in Central Karoo and these predominantly serve other regions

Observations

Central Karoo Dams ¥ ¥ TThheerree aarree ffoouurr mmaajjoorr ddaammss iinn tthhee nnooddee:: ±± TThhee FFlloorriisskkrraaaall DDaamm iiss llooccaatteedd nneeaarr LLaaiinnggssbbuurrgg bbuutt sseerrvveess pprreeddoommiinnaannttllyy LLiittttllee KKaarroooo nneeeeddss ±± TThhee LLeeeeuu GGaammkkaa DDaamm,, ssiittuuaatteedd Leeu Gamka Dam bbeettwweeeenn BBeeaauuffoorrtt WWeesstt aanndd LLaaiinnggssbbuurrgg,, sseerrvveess llooccaall ffaarrmmiinngg nneeeeddss ±± TThhee OOuukkllooooff DDaamm sseerrvveess aa lliimmiitteedd nnuummbbeerr ooff ffaarrmmss iinn tthhee Floriskraal Dam PPrriinnccee AAllbbeerrtt aarreeaa,, wwiitthh tthhee Oukloof Dam Gamkapoort Dam bbaallaannccee iiss sseerrvveedd bbyy tthhee GGaammkkaappoooorrtt DDaamm ¥ ¥ IInnvveessttiiggaattiioonn iinnttoo aa ppootteennttiiaall aaddddiittiioonnaall wwaatteerr ssoouurrccee iiss Irrigated Land uunnddeerrwwaayy ¥ Irrigated ¥ TThheerree iiss vveerryy lliittttllee llaanndd uunnddeerr Not irrigated iirrrriiggaattiioonn,, dduuee ttoo tthhee llaacckk ooff wwaatteerr rreessoouurrcceess iinn tthhee nnooddee,, bbuutt aallssoo bbeeccaauussee ooff tthhee ssooiill''ss iinnaabbiilliittyy ttoo hhoolldd wwaatteerr

Source: Department of Water Affairs and Forestry; Agricultural Geo-Referenced Information System; Interviews UUP-WRD-Central Karoo Profile-301106-IS 49 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Inputs ± Infrastructure The area lies within the main north-south transport corridor and is well connected to the rest of the country via road and rail

Bloemfontein, Johannesburg

Beaufort West LM Murraysburg DMA

Karoo NP

Beaufort West Road

Laingsburg LM R407 N12 Railway Prince Albert LM Laingsburg Prince Albert Matjesfontein N1

Cape Town

George Source: Agricultural Geo-Referenced Information System; Interviews UUP-WRD-Central Karoo Profile-301106-IS 50 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Inputs ± Road and rail transport Despite access to rail infrastructure, a largely defunct rail system limits transport options

South African Domestic Surface Freight Transport Market: 2003 Observations 100% ¥ ¥ Despite a 9,800 km rail network, South Africa has

t Despite a 9,800 km rail network, South Africa has e

k 74% experienced a consistent migration of cargo from rail to road r 80% experienced a consistent migration of cargo from rail to road a ¥ ¥

M This is due to:

This is due to: t

h 60%

g ± old infrastructure: Spoornet locomotives have an

i ± old infrastructure: Spoornet locomotives have an e r aavveerraaggee aaggee ooff 2255 yyeeaarrss,, wwhhiillee iinntteerrnnaattiioonnaall bbeesstt pprraaccttiiccee F

a 40% is 16 years

t is 16 years

o 26% T

±± uunnrreelliiaabbiilliittyy:: ttrraaiinn ccaanncceellllaattiioonnss ccaann bbee aass hhiigghh aass 6600%% iinn f o 20% ssoommee aarreeaass % ±± iinnfflleexxiibbiilliittyy:: tthhee uussee ooff rraaiill ttoo ttrraannssppoorrtt ppeerriisshhaabbllee ggooooddss 0% rreeqquuiirreess aa ddeeggrreeee ooff fflleexxiibbiilliittyy Road Rail ±± ccoosstt:: iinnccrreeaasseedd ccoommppeettiittiioonn iinn tthhee rrooaadd ttrraannssppoorrtt iinndduussttrryy has led to price decreases South African Tonnages Carried by Road has led to price decreases ¥ and Rail: 1993-2003 ¥ TThhee rreessuullttss aarree:: 600 ±± sshhoorrtteenneedd rrooaadd nneettwwoorrkk mmaaiinntteennaannccee ccyycclleess ¦

Road Rail ¦ 500 FFiivvee rrooaadd mmaaiinntteennaannccee pprroojjeeccttss rreeqquuiirree ffuunnddiinngg iinn tthhee

s CCeennttrraall KKaarroooo e ¦ g ¦ a 400 TThhee NN11 bbeettwweeeenn CCaappee TToowwnn aanndd BBeeaauuffoorrtt WWeesstt iiss n n

o ccuurrrreennttllyy uunnddeerrggooiinngg rreeppaaiirrss ±±tthhee ssaammee ssttrreettcchh ooff

T 300

d rrooaadd uunnddeerrwweenntt mmaaiinntteennaannccee lleessss tthhaann 1100 yyeeaarrss aaggoo e i r r 200 ±± ccuurrbbeedd aacccceessss ttoo rraaiill sseerrvviicceess a ¦ ¦ C SSppoooorrnneett nnoo lloonnggeerr ooppeerraatteess rraaiillwwaayy ssttaattiioonnss,, aanndd 100 hheennccee nnoo lloonnggeerr pprroovviiddeess ffrreeiigghhtt sseerrvviicceess iinn aannyy ooff the Central Karoo towns 0 the Central Karoo towns 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Source: National Freight Logistics Strategy 2005; Draft Short-Term Implementation Plan of The Rural Transport Strategy for South Africa; Interviews UUP-WRD-Central Karoo Profile-301106-IS 51 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Production ± Current nodal picture Although a predominantly sheep farming region, small pockets of fruit farming are found in the more fertile Southern regions of the node

SShheeeepp aanndd ggooaatt mmeeaatt pprroodduuccttiioonn iiss pprroommiinneenntt iinn tthhee BBeeaauuffoorrtt WWeesstt aanndd NNeellssppoooorrtt aarreeaass.. WWooooll aanndd mohair production is declining. Murraysburg DMA AA 2200 kkmm ssttrreettcchh nnoorrtthh ooff mohair production is declining. Beaufort West LM Hydroponic herb production has LLaaiinnggssbbuurrgg rreecceeiivveess wwaatteerr Hydroponic herb production has recently been introduced ffrroomm tthhee FFlloorriisskkrraaaall DDaamm,, recently been introduced allowing production of allowing production of MMeerriinnoo sshheeeepp aanndd AAnnggoorraa ggooaatt deciduous fruits such as deciduous fruits such as ffaarrmmiinngg ddoommiinnaattee iinn tthhee apricots, grapes, peaches, Beaufort West apricots, grapes, peaches, MMuurrrraayyssbbuurrgg aarreeaa pplluummss aanndd pprruunneess.. SSeeeedd vveeggeettaabbllee ((oonniioonnss,, ppuummppkkiinnss,, bbeeeettrroooott)) pprroodduuccttiioonn ooccccuurrss oonn aa ccoonnttrraacctt bbaassiiss ffoorr aa EEuurrooppeeaann ccoommppaannyy ±±tthhee llaatttteerr ssuupppplliieess ffeeeeddssttoocckk aanndd tteecchhnnoollooggyy Prince Albert LM Abattoir Laingsburg LM Laingsburg Prince Albert Winery Matjesfontein

PPrriinnccee AAllbbeerrtt iiss tthhee rreeggiioonn''ss mmoosstt Leather factory ddiivveerrssiiffiieedd aaggrriiccuullttuurraall aarreeaa.. PPrroodduuccttiioonn aaccttiivviittiieess iinncclluuddee ddeecciidduuoouuss ffrruuiitt aanndd sseeeedd Hydroponic herb production TThhee VVlleeiillaanndd aarreeaa ssoouutthhwweesstt ooff LLaaiinnggssbbuurrgg aallssoo rreecceeiivveess vveeggeettaabbllee ffaarrmmiinngg,, wwooooll aanndd mmoohhaaiirr,, ddrriieedd wwaatteerr ffrroomm tthhee FFlloorriisskkrraaaall DDaamm.. DDeecciidduuoouuss ffrruuiitt aanndd ffiigg ((llaarrggeesstt pprroodduucceerr iinn SSAA)),, oolliivvee aanndd rreedd sseeeedd vveeggeettaabblleess aarree ggrroowwnn ggrraappee ccuullttiivvaattiioonn,, wwiinneerryy,, ttuunnnneell pprroodduuccttiioonn ooff fflloowweerrss,, ddaaiirryy aanndd oossttrriicchh cchhiicckk rreeaarriinngg

Source: Central Karoo DM: Central Karoo Economic Regeneration Study, 2003; Interviews UUP-WRD-Central Karoo Profile-301106-IS 52 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Production ± Livestock Although an extensive sheep and goat farming region, the Central Karoo only represents a small portion of national small stock farming

Central Karoo Sheep Stock: 2002 Central Karoo Goat Stock: 2002 200 40

k k c c o o

t 27.7 150 137.7 t 30 s s ) ) e e 0 0 v v 0 i 0 i 0 L 0 L

(

( 19.5 f

s o s 100 o 20 t

i i r 69.6 r n n e e 12.9 b U b 46.4 U m m

u 35.8 50 u 10 N N 2.0 0 0 Beaufort West Laingsburg Beaufort West Prince Albert Murraysburg Prince Albert Murraysburg Laingsburg

Central Karoo Share of Total South Africa Central Karoo Cattle Stock: 2002 Stock: 2002 10 10%

c 8

o 8% t

k s ) 6.3% c h e 0 t o v 0 i t 6 u

0 6% L o S

(

S n

s o f t

i 3.9 r o c n

i e 4 4% r b U f

% 2.7% A m

u 1.6

N 2 2% 0.5 0.3 0.1% 0 0% Murraysburg Prince Albert Goats Sheep Cattle Beaufort West Laingsburg

Source: Stats SA Census of Commercial Agriculture 2002; Interviews UUP-WRD-Central Karoo Profile-301106-IS 53 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Production ± Livestock processing chain Except for some leather manufacturing, most value-adding activities take place outside the node

SShheeeepp // GGooaatt FFaarrmmiinngg

MMeeaatt aanndd CCaarrccaasssseess WWooooll//MMoohhaaiirr SSkkiinnss

MMeeaatt PPrroocceessssiinngg GGaarrmmeennttss aanndd RRuuggss LLeeaatthheerr PPrroodduuccttss

Current activity in the node

No activity in the node

Source: Monitor analysis UUP-WRD-Central Karoo Profile-301106-IS 54 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Production ± Livestock processing chain Declining sheep numbers result in spare abattoir capacity that has created a need for sheep imports South Africa Sheep and Goat Numbers: 1978-2002 35

) Meat and carcasses production n Meat and carcasses production

o 30 i l l i ¥ ¥

m 25 Sheep There are six abattoirs in Central Karoo,

( There are six abattoirs in Central Karoo,

s t i 20 rreepprreesseennttiinngg 99%% ooff rreeggiisstteerreedd pprroovviinncciiaall n U aabbaattttooiirrss.. TThhrreeee ooff tthhee aabbaattttooiirrss aarree iinn k 15 c

o Beaufort West t Beaufort West

s 10

e Goats ¥ v ¥ i The existing abattoirs are experiencing spare L 5 The existing abattoirs are experiencing spare 0 ccaappaacciittyy dduuee ttoo ddeecclliinniinngg sshheeeepp nnuummbbeerrss iinn 1978 1980 1981 1983 1988 1993 1996 2002 tthhee rreeggiioonn ¥ ¥ South Africa Red Meat Abattoirs: 2005 DDeecclliinniinngg sshheeeepp nnuummbbeerrss aarree iinn ppaarrtt dduuee ttoo tthhee eemmeerrggiinngg ttrreenndd ooff ttrraannssffoorrmmiinngg Free State 85 ccoommmmeerrcciiaall KKaarroooo ffaarrmmss iinnttoo hhoolliiddaayy hhoommeess Eastern Cape 83 ¥ Western Cape 69 ¥ TToo oovveerrccoommee tthhee llaacckk ooff ssuuffffiicciieenntt sshheeeepp,, Northern Cape 64 aabbaattttooiirrss iimmppoorrtt sshheeeepp ffrroomm ootthheerr rreeggiioonnss ssuucchh aass NNaammiibbiiaa KZN 49 ¥ Gauteng 41 ¥ OOnnccee aanniimmaallss aarree ssllaauugghhtteerreedd,, mmeeaatt aanndd Mpumalanga 40 ccaarrccaasssseess aarree eexxppoorrtteedd aanndd nnoo ffuurrtthheerr Limpopo 31 pprroocceessssiinngg ttaakkeess ppllaaccee North West 30

0 20 40 60 80 100 Number of Abattoirs

Source: Department of Agriculture: Abstract of Agricultural Statistics 2005; Red Meat Abattoir Association; Monitor analysis; Interviews UUP-WRD-Central Karoo Profile-301106-IS 55 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Production ± Livestock processing chain Wool and mohair production takes place on a limited scale in the district South Africa Wool Production: 1970-2005 150 127.8 WWooooll aanndd mmoohhaaiirr pprroodduuccttiioonn 111.3 107.8 107.3 106.8 ¥ ¥

) 100 WWooooll aanndd mmoohhaaiirr pprroodduuccttiioonn ttaakkeess ppllaaccee iinn s d

n three local municipalities: Beaufort West, s three local municipalities: Beaufort West, a n 67.6 s o

u Laingsburg and Prince Albert

T Laingsburg and Prince Albert o

h 46.6 t

50 ¥ (

43.3 ¥ IInn BBeeaauuffoorrtt WWeesstt,, pprroodduuccttiioonn ooff wwooooll aanndd mmoohhaaiirr hhaass ddeecclliinneedd iinn ffaavvoouurr ooff mmeeaatt pprroodduuccttiioonn 0 ¥ 1970 1974 1980 1985 1990 1995 2000 2004 ¥ AA ssiimmiillaarr ssiittuuaattiioonn eexxiissttss iinn LLaaiinnggssbbuurrgg,, wwhheerree wwooooll pprroodduuccttiioonn iiss vveerryy lliimmiitteedd.. TThhee aarreeaa iiss Contribution to National Mohair Production 2005: Top 5 believed to be suited for Angora goats, with Regions and Central Karoo believed to be suited for Angora goats, with 20% tthhee ooppppoorrttuunniittyy ttoo pprroodduuccee mmoohhaaiirr

n ¥ ¥ o

i Prince Albert forms part of Cape Mohair

t Prince Albert forms part of Cape Mohair c

u 15% country, known to produce the world's highest

d country, known to produce the world's highest o r quality mohair. South Africa now accounts for P 10.1% quality mohair. South Africa now accounts for 10.0% l

a 10% 8.9% 60% of world mohair production

n 60% of world mohair production

o 7.5%

i 7.2% t ¥ ¥ a Further processing of wool and mohair does

N Further processing of wool and mohair does

f 5% o

2.9% not take place in the region but would be one 2.4% 2.1% not take place in the region but would be one % wwaayy ttoo rreevveerrssee tthhee sseeaassoonnaalliittyy ooff jjoobb 0% ooppppoorrttuunniittiieess Willowmore/ Jansenville Port Elizabeth Murraysburg Rietbron Aberdeen Somerset Beaufort West Prince Albert Source: Department of Agriculture: Abstract of Agricultural Statistics 2005; Central Karoo DM: Central Karoo Economic Regeneration Study, 2003; Mohair South Africa; Monitor analysis; Interviews UUP-WRD-Central Karoo Profile-301106-IS 56 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Production ± Livestock processing chain The Central Karoo was one of eight regions selected for leather processing projects as part of a national poverty-alleviation programme

LLeeaatthheerr pprroodduuccttss ¥ ¥ LLeeaatthheerr ffaaccttoorriieess hhaavvee rreecceennttllyy bbeeeenn eessttaabblliisshheedd iinn bbootthh BBeeaauuffoorrtt WWeesstt aanndd LLaaiinnggssbbuurrgg ¥ ¥ TThhee mmaaiinn oobbjjeeccttiivvee ooff tthheessee pprroojjeeccttss iiss jjoobb ccrreeaattiioonn ±± aapppprrooxxiimmaatteellyy 3300 ppeeooppllee aarree ccuurrrreennttllyy eemmppllooyyeedd ¥ ¥ TThhee pprroojjeecctt hhaass bbeeeenn rreeggiisstteerreedd aass aa SSeeccttiioonn 2211 ccoommppaannyy,, wwiitthh aallll pprrooffiitt cchhaannnneelllleedd bbaacckk iinnttoo tthhee bbuussiinneessss ttoo aalllooww ggrroowwtthh aanndd ssuussttaaiinnaabbiilliittyy ¥ ¥ OOnnee ooff tthhee kkeeyy ppaarrttnneerrss ooff tthhee pprroojjeecctt,, tthhee CCoouunncciill ffoorr SScciieennttiiffiicc aanndd IInndduussttrriiaall RReesseeaarrcchh ((CCSSIIRR)) aaccttss iinn aa mmaannaaggeemmeenntt ccaappaacciittyy uunnttiill ssuuffffiicciieenntt sskkiillllss ttrraannssffeerr ttoo tthhee ccoommmmuunniittyy hhaass ttaakkeenn ppllaaccee ¥ ¥ AAnniimmaall sskkiinnss aarree ttrraannssffoorrmmeedd iinnttoo aa rraannggee ooff pprroodduuccttss,, ffrroomm sshhooeess ttoo hhaannddbbaaggss ¥ ¥ SSkkiinnss aarree,, hhoowweevveerr,, nnoott pprroocceesssseedd iinn tthhee rreeggiioonn ±±sskkiinn pprroocceessssiinngg iiss wwaatteerr--iinntteennssiivvee aanndd tthhee CCeennttrraall KKaarroooo hhaass vveerryy lliimmiitteedd wwaatteerr rreessoouurrcceess ¥ ¥ TThhee ffaaccttoorriieess aarree ffoorrcceedd ttoo iimmppoorrtt sskkiinnss ffrroomm CCaappee TToowwnn,, lliimmiittiinngg tthhee ccoonnttrrooll ppoossssiibbllee wwiitthh rreeggaarrddss ttoo sskkiinn sseelleeccttiioonn aanndd ssoommeettiimmeess ccaauussiinngg ddeellaayyss iinn pprroodduuccttiioonn

Source: Monitor analysis; Interviews UUP-WRD-Central Karoo Profile-301106-IS 57 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Production ± Deciduous fruit and seed vegetables Fruit and vegetable production is concentrated in the Prince Albert and Laingsburg regions but constitutes only a small part of national output

Central Karoo Grape Production: 2002 Central Karoo Deciduous Fruit Production: 1200 2002¹ 600 1000 921 CCeennttrraall KKaarroooo Central Karoo mmaakkeess uupp 00..11%% 500 Central Karoo 422 makes up 0.1% 800 ooff ttoottaall SSAA makes up 0.1%

s production 400 ooff ttoottaall SSAA n production s o 600 production

n production T

o 300

360 T 400 188 200 200 200 100 0 Prince Albert Laingsburg Beaufort West 0 Prince Albert Laingsburg

Central Karoo Seed Vegetables Production: 2002² Central Karoo Other Fruit Production: 2002³ 400 1200 1019 CCeennttrraall KKaarroooo 1000 CCeennttrraall KKaarroooo 282 300 mmaakkeess uupp 00..11%% mmaakkeess uupp 33..33%% ooff ttoottaall SSAA 800 ooff ttoottaall SSAA s production s production

n production production n o 200 o 600 T T 117 400 325 100 200

0 0 Laingsburg Prince Albert Prince Albert Laingsburg

Note: ¹Apples, Pears, Peaches, Plums/Prunes; ²Onions, beetroot, pumpkins; ³Apricots, Berries, Cherries, Figs, Kiwi Fruit, Makatan Source: Stats SA Census of Commercial Agriculture 2002; Interviews UUP-WRD-Central Karoo Profile-301106-IS 58 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Production ± Potential for fruit processing A cold storage facility could create jobs and reduce the amount of fruit that goes to waste

CCuurrrreenntt aaccttiivviittyy PPootteennttiiaall zz FFrruuiitt pprroocceessssiinngg zz FFrruuiitt pprroocceessssiinngg ±± FFrruuiitt pprroocceessssiinngg ttaakkeess ppllaaccee oonn aa ±± EEssttaabblliisshhiinngg aa ccoolldd ssttoorraaggee ffaacciilliittyy iinn the Prince Albert local municipality lliimmiitteedd ssccaallee oonn iinnddiivviidduuaall ffaarrmmss the Prince Albert local municipality wwoouulldd:: § § §

Forty tons of White Genoa Figs § Forty tons of White Genoa Figs iinnccrreeaassee tthhee ssccaallee ooff ccuurrrreenntt are dried in the Prince Albert are dried in the Prince Albert pprroocceessssiinngg aaccttiivviittiieess region region § § rreedduuccee pprroodduuccee wwaassttaaggee § § § Juices, jams and preserves are § Juices, jams and preserves are aalllleevviiaattee tthhee pprroobblleemm ooff sshhoorrtt-- produced, also in the Prince produced, also in the Prince tteerrmm,, sseeaassoonnaall jjoobb ccrreeaattiioonn

Albert region § Albert region § ccrreeaattee ssppiinn--ooffff ooppppoorrttuunniittiieess lliikkee § § OOlliivvee ooiill pprroodduuccttiioonn iiss ggrroowwiinngg fflloowweerr bbuullbb pprroodduuccttiioonn ± It is estimated that 300 jobs could be zz WWiinnee mmaakkiinngg ± It is estimated that 300 jobs could be ccrreeaatteedd iinn PPrriinnccee AAllbbeerrtt aanndd 115500 iinn ±± AA ssmmaallll wwiinneerryy hhaass bbeeeenn eessttaabblliisshheedd LLaaiinnggssbbuurrgg iinn PPrriinnccee AAllbbeerrtt,, bbuutt ggrraappeess ffrroomm zz WWiinnee mmaakkiinngg LLaaiinnggssbbuurrgg aarree ssttiillll sseenntt ttoo DDee ± Opportunities exist to upscale the DDoooorrnnss ffoorr pprroocceessssiinngg ± Opportunities exist to upscale the ccuurrrreenntt wwiinneerryy ttoo aaccccoommmmooddaattee ggrraappeess ffrroomm tthhee eennttiirree ddiissttrriicctt

Source: Central Karoo DM: Central Karoo Economic Regeneration Study, 2003 UUP-WRD-Central Karoo Profile-301106-IS 59 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Target markets ± Central Karoo markets Produce from Central Karoo is sold to bigger centres where it becomes part of agricultural exports

MMeeaatt aanndd ccaarrccaasssseess WWooooll aanndd mmoohhaaiirr

zz MMeeaatt aanndd ccaarrccaasssseess aarree ssoolldd ttoo:: zz SSkkiinnss aarree ssoolldd ttoo PPoorrtt EElliizzaabbeetthh aanndd PPaaaarrll for further processing ±± JJoohhaannnneessbbuurrgg for further processing zz WWooooll iiss ssoolldd ttoo PPoorrtt EElliizzaabbeetthh ffoorr eexxppoorrtt ±± DDuurrbbaann zz MMoohhaaiirr iiss ssoolldd ttoo JJoohhaannnneessbbuurrgg ((kknnoowwnn ± Cape Town ± Cape Town aass tthhee mmoohhaaiirr ccoonnssuummeerr ccaappiittaall ooff tthhee zz TThheerree iiss lliimmiitteedd llooccaall ddiissttrriibbuuttiioonn wwoorrlldd)).. KKeeyy eexxppoorrtt rreeggiioonnss iinncclluuddee CChhiinnaa aanndd FFrraannccee

DDeecciidduuoouuss ffrruuiitt aanndd sseeeedd vveeggeettaabblleess OOtthheerr

zz DDeecciidduuoouuss ffrruuiitt,, iinncclluuddiinngg ggrraappeess,, aarree zz FFlloowweerrss ggrroowwnn iinn PPrriinnccee AAllbbeerrtt aarree ssoolldd ssoolldd ffoorr eexxppoorrtt ttoo:: ttoo tthhee bbrrooaaddeerr KKaarroooo rreeggiioonn ±± UUnniitteedd KKiinnggddoomm zz PPrroodduuccee ffrroomm aa PPrriinnccee AAllbbeerrtt ddaaiirryy iiss ssoolldd ±± NNeetthheerrllaannddss iinn tthhee iimmmmeeddiiaatteellyy ssuurrrroouunnddiinngg aarreeaa z zz SSeeeedd vveeggeettaabblleess aarree pprroodduucceedd ffoorr eexxppoorrtt z FFrreesshh hheerrbbss ggrroowwnn hhyyddrrooppoonniiccaallllyy iinn ttoo EEuurrooppee BBeeaauuffoorrtt WWeesstt aarree ssoolldd ttoo CCaappee TToowwnn

Source: Department of Agriculture: Abstract of Agricultural Statistics 2005; Mohair South Africa; Central Karoo DM: Central Karoo Economic Regeneration Study, 2003 UUP-WRD-Central Karoo Profile-301106-IS 60 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Target markets ± Sheep and goat meat Domestic meat consumption is higher than domestic production, necessitating the import of meat South African Sheep, Lamb and Goat Production, Value of South African Sheep and Goats Meat Imports and Consumption: 1970-2005 Imports and Exports: 2003/04 250 120 Imports SA Consumption 200 100 87

) Exports s

d 80 )

n 65 s

150 d a o n i n s l l o SA Production a i u 60 T o R m h 100 ( T

( 40 SA Imports 50 20 2 3 0 0 1970 1975 1980 1985 1990 1995 2000 2005 2003 2004

South African Sheep and Goats Meat Exports: Top Five Destinations 2002 South Africa Mutton Auction Prices: 2000-2004 60 3,000

50 45 m 2,101 a 2,013 r )

s 40 g 2,000 1,818 d o l m i n a

k 1,522 a

r 1,462

r s g e u 30 o l p o i

h K s t T 16

( 1,000 20 15 n

13 e

9 C 10

0 0 Angola Switzerland Cameroon 2000 2001 2002 2003 2004 Gabon Mozambique Source: Department of Agriculture: Abstract of Agricultural Statistics 2005; South African Meat Industry Company; Cape Wools SA Final Wool Sales Report and Price Summary November 2006 UUP-WRD-Central Karoo Profile-301106-IS 61 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Target markets ± Wool and skin Wool and skin are exported primarily to Europe and China

Value of South African Wool and Skin Exports: South Africa Wool Sales: 2000-2004 2000-2004 60 1,000 49 Wool 50 48 46 47 44 800 767

) Sheep and Lamb 644 s 40 d ) Skins 577

n n s d 600

a 498 o n i n l s l o a

30 i u 415 410 T R o 374 m 353 ( h 400 294 T

( 20 181 10 200

0 0 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

South African Wool Exports: Top Five Destinations 2006 South Africa Wool Auction Prices: 2000-2004 40% 4,000

3,079 t r m o

30% a 3,000 r p g x 24% 2,278 22% o l E i 2,109 l k

a t 20% r 2,000 1,774 o e p T 1,413

15% f

12% s t o

n e % 10% 6% 1,000 C

0% 0 Italy China Czech Germany Bulgaria 2000 2001 2002 2003 2004 Republic

Source: Department of Agriculture: Abstract of Agricultural Statistics 2005 UUP-WRD-Central Karoo Profile-301106-IS 62 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Target markets ± Deciduous fruit end-users Fruit production in South Africa is destined for further processing or export

End Users of SA Apricot Production: October End Users of SA Peach Production: October 2003 ± September 2004 2003 ± September 2004 100% 100% 81.8% 80% 80% 72.8%

A A n n S S

o o l l i i

t 60% t 60% a a t t c c o o u u T T d d

f f o o r r

o 40% o 40%

P P % % 20% 20% 8.8% 6.3% 7.4% 4.3% 2.1% 3.0% 0% 0% SA SA Dried Fruit Exports SA Fresh SA SA Fresh Exports SA Dried Fruit Processing Sales Processing Sales

End Users of SA Grape Production: October End Users of SA Plum Production: October 2003 2003 ± September 2004 ± September 2004 100% 100%

80% 74.5% 80% 74.9%

A A n n S S

60% 60% o o l l i i t t a a t t c c o o u u T T d d 40% 40% f f o o r r o o

P P

% % 19.4% 20% 13.6% 20% 9.0% 1.7% 0.2% 2.7% 0% 0% SA Exports SA Dried SA Fresh SA Exports SA Fresh Sales SA Processing Pressed Fruit Sales Processing Sales Sales Source: Department of Agriculture: Abstract of Agricultural Statistics 2005 UUP-WRD-Central Karoo Profile-301106-IS 63 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Target markets ± Export of fruit Grapes and deciduous fruits, the main fruit produce in Central Karoo, have Europe as their main export market

Geographical Distribution of SA Geographical Distribution of SA Grape Export: 2004 Deciduous Fruit Export: 2002 100% 100%

88.0%

80% 80% 76.0% t t r r o o p p x x E E

l l 60% 60% a a t t o o T T

f f o o

% % 40% 40%

20% 20%

9.0% 7.0% 8.0% 4.0% 3.0% 3.0% 2.0% 1.0% 0% 0% Europe Middle Africa Europe Far East Africa Middle Other Far/East East / Americas East Asia Mediterra nean Source: Department of Agriculture: Abstract of Agricultural Statistics 2005 UUP-WRD-Central Karoo Profile-301106-IS 64 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Target markets: Industry conditions ± Fruit and vegetables The net realisation from peach exports shows a steady upwards trend

Average Price ± Sales on South African Net Realisation ± South African Exports: Fresh Produce Markets: 1975-2005 1975-2005 5,000 12,000

4,000 Peaches 10,000

r r 8,000 e 3,000 e p p

n n d d o Grapes o 6,000 n n T T a 2,000 a R R 4,000 Plums 1,000 2,000 Apricots 0 0 1975 1980 1985 1990 1995 2000 2005 1975 1980 1985 1990 1995 2000 2005

Average Price ± South African Purchases Average Price ± Sales on South African for Processing: 1975-2005 Fresh Produce Markets: 1995-2005 2,000 2,000

1,500 1,500 Onions r r e e p p

n n d d o o n n T 1,000 T 1,000 a a R R

500 500 Beetroot Pumpkins

0 0 1975 1980 1985 1990 1995 2000 2005 1995 2000 2005

Source: Department of Agriculture: Abstract of Agricultural Statistics, 2005 UUP-WRD-Central Karoo Profile-301106-IS 65 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Agriculture Central Karoo Barriers / Solutions

Barrier / constraint Potential solution

Climatic conditions restrict the area to mainly sheep Consider value-adding opportunities offered by farming ± a sector now operating at near maximum sheep farming, i.e. skin processing capacity

Lack of sufficient water resources to enable skin Investigate the use of alternative sources of water processing for skin processing

Lack of sufficient water resources to enable more Investigate the upscaling of crop production that is extensive fruit production less water intensive, such as olives. Also consider optimising current fruit output by establishing a cold storage facility to allow the upscaling of processing activities

Dependence on road transport ± this has negative Rail system must become cost effective, reliable effects on the transport of deciduous fruits to ports and more flexible

Source: Central Karoo DM: Central Karoo Economic Regeneration Study, 2003; Interviews UUP-WRD-Central Karoo Profile-301106-IS 66 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Key contacts

Position / Name Reason to contact Organisation

Charl du Plessis Department of ¨ Extensive knowledge and understanding of agriculture in the Agriculture – Prince Central Karoo Albert and Laingsburg

Alan Webb Council for ¨ Project manager for Central Karoo Leather and Beaufort West Scientific and Hydroponics Industrial Research

Frans van der Merwe Karoo Lamb Abattoir ¨ Key player in the abattoir market in Central Karoo ¨ Solid understanding of abattoir sector, possible growth areas and regional constraints

Colin de Villiers PSG Konsult / Local ¨ Insights into value-adding potential of region Farmer ¨ Example of successful emerging farmer mentoring initiative

UUP-WRD-Central Karoo Profile-301106-IS 67 Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Central Karoo poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Agriculture

¨ Description of current value chain

± Selected sector: Tourism ¨ Growth constraints and solutions

¨ Potential for sector z Investment opportunities

z Summary

z Appendix

UUP-WRD-Central Karoo Profile-301106-IS 68 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Summary

z According to Quantec, the tourism sector employed 4.2% of the total workforce in Central Karoo in 2004; however, the contribution from tourism to the total GDP was not more than 2.3% z The Western Cape is a prime tourist destination attracting 22% of all foreign visitors to South Africa and hosting about 2.53 million domestic trips every year z Central Karoo is, however, not part of this tourism boom and only 3% of the domestic and 2% of the overseas visitors to the Western Cape cite Central Karoo as their prime destination ± The region is mainly seen as a convenient stop en route between Gauteng and Cape Town and very few visitors stay longer than a night z The fact that the tourism sector performs so badly despite the excellent location along the N1 can be explained by the lack of attractions and activities to retain tourists for a longer period of time z Besides the tranquillity and beautiful scenery, Central Karoo offers historic towns like Matjesfontein and Beaufort West together with the Karoo National Park ± Karoo is one of South African National Parks' (SANParks) 20 parks and offers hiking trails, accommodation and conference facilities but a relatively limited amount of game z The main source markets are Gauteng and Western Cape for domestic visitors and Germany for overseas tourists

UUP-WRD-Central Karoo Profile-301106-IS 69 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Overview of the tourism sector

IInnppuutt PPrroodduuccttiioonn TTaarrggeett mmaarrkkeettss

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

z The Karoo, with its natural z Karoo National Park z Only a small number of the tourists in Western beauty and the largest ± hiking trails, ecosystem in South Africa Cape go to Central Karoo accommodation, z The location along the N1 z The typical visitor is en conferences and some connecting Gauteng and route on the N1 between Cape Town species of game Cape Town and Gauteng ± the highway goes z Places of historic interest z The domestic tourists through both ± the Victorian town of originate predominantly from Western Cape and Laingsburg and Matjesfontein Beaufort West Gauteng ± Chris Barnard museum z Rail network z The major overseas z Accommodation facilities ± the luxury trains market is Germany Rovos Rail and Blue ± 302 hotel beds, 213 z Most towns and sites Train both make a self-catering beds, 100 serve as gateways to other tourism regions short stop in bed & breakfast beds, ± Cape Town, Swartberg Matjesfontein in south- 99 guest house beds western Central Karoo mountains or the and 4 backpacker beds Garden Route Source: Interviews UUP-WRD-Central Karoo Profile-301106-IS 70 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Inputs ± Road and rail network Besides the natural beauty, the tourism sector mainly relies on the road and rail network including the N1, the busy national highway connecting Gauteng with Cape Town ¨ ¨ BBootthh LLaaiinnggssbbuurrgg aanndd BBeeaauuffoorrtt WWeesstt aarree iiddeeaallllyy ssiittuuaatteedd aalloonngg tthhee NN11 Bloemfontein, Johannesburg –– TThheeyy aarree aallssoo ttwwoo ooff tthhee ffeeww ttoowwnnss aalloonngg tthhee NN11 wwhheerree tthhee ttrraaffffiicc ppaasssseess tthhrroouugghh tthhee ttoowwnn cceennttrree ¨ ¨ AAccccoorrddiinngg ttoo DDEEAAAATT¹¹nnoo ffeewweerr tthhaann 1155,,000000 Beaufort West LM Murraysburg DMA ccaarrss aanndd 11,,000000 ttrruucckkss ppaassss tthhrroouugghh BBeeaauuffoorrtt WWeesstt eevveerryy ddaayy Karoo NP

Beaufort West

Laingsburg LM R407 N12 Prince Albert LM Laingsburg Prince Albert Road N1 Matjesfontein Railway

Cape Town ¨ ¨ TThhee lluuxxuurryy ttrraaiinnss RRoovvoossRRaaiill aanndd tthhee BBlluuee TTrraaiinn bbootthh mmaakkee aa sshhoorrtt ssttoopp iinn George MMaattjjeessffoonntteeiinn

Note: ¹Department of Economic Affairs, Agriculture and Tourism Source: DEAAT, 2001; Van Staden & Marais: The Tourism Potential of Beaufort West, 2005 UUP-WRD-Central Karoo Profile-301106-IS 71 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Production ± Major attractions The Central Karoo currently has very few prime tourist attractions with Karoo National Park and the Chris Barnard museum as highlights

KKaarroooo NNaattiioonnaall PPaarrkk MMaattjjeessffoonntteeiinn

z z z TTeexxtt ¨ z TTeexxtt

National park 5 km ¨ A fragment of Victorian ±± TTeexxtt outside Beaufort West, ±± TTeexxtt 60,000 ha England suspended in time ¨ The largest ecosystem in South Africa ¨ One of the country's ¨ Home of the endangered largest privately owned black rhinoceros and the museums is hosted in riverine rabbit the station building

PPrriinnccee AAllbbeerrtt BBeeaauuffoorrtt WWeesstt

z z ¨ z ¨ z The gateway to the TTeexxtt Gateway to the TTeexxtt Cape and ideally ± Text Swartberg mountain ± Text ± Text ± Text situated along the N1 range and Cango Caves ¨

¨ Birthplace of Chris Hosts several festivals to Barnard who performed celebrate the produce of the world's first heart the region transplant ± olives, apricots and ± honoured in three cheese historic buildings

Source: Cape Karoo Tourism; Prince Albert Tourism Bureau; Beaufort West Tourism Bureau; Central Karoo Information; Interviews UUP-WRD-Central Karoo Profile-301106-IS 72 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Production ± Karoo National Park Karoo National Park is situated in Central Karoo and offers beautiful scenery and accommodation facilities but relatively little game

South African National (SAN) Parks: 2005 Karoo National Park Offering ¨ ¨ TThhee ppaarrkk iiss ppaarrtt ooff tthhee llaarrggeesstt eeccoossyysstteemm iinn SSoouutthh AAffrriiccaa ¨ Mapungubwe ¨ AAccttiivviittiieess ±± BBiirrdd wwaattcchhiinngg,, 44&&44 rroouuttee,, wwaallkkiinngg ttrraaiillss Marakele and game viewing Kruger and game viewing ±± SSppeecciieess iinncclluuddee bbllaacckk rrhhiinnoo,, BBuurrcchheellll''ss Kgalagadi zzeebbrraa,, hhaarrtteebbeeeesstt,, ggeemmssbbookk,, eellaanndd,, Golden Gate Vaalbos kkuudduu aanndd ffiivvee ssppeecciieess ooff ttoorrttooiissee

Augrabies ¨ ¨ Richtersveld AAccccoommmmooddaattiioonn wwiitthh aa ttoottaall ooff 113388 bbeeddss ± 24 camping units (R110) Namaqua ± 24 camping units (R110) ± 20 chalets (R530) Mountain Zebra ± 20 chalets (R530) Karoo ±± 1100 ccoottttaaggeess ((RR661155)) Tankwa Karoo ±± eeiigghhtt ffaammiillyy ccoottttaaggeess ((RR883322)) West Coast Knysna Addo ¨ ¨ CCoonnffeerreennccee ffaacciilliittyy sseeaattiinngg 6655 ppeeooppllee ¨ Table Mountain ¨ Today only 15% of the park is accessible Wilderness Tsitsikamma Today only 15% of the park is accessible Agulhas ttoo ttoouurriissttss Bontebok

Source: SANParks: Annual Report 2005; Tourism Plan Karoo National Park; Interviews UUP-WRD-Central Karoo Profile-301106-IS 73 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Production ± Accommodation Western Cape Partly because of under-investment in tourism, Central Karoo lags behind other Western Cape regions in terms of number of hotel beds

Tourism Investments in the Western Number of Western Cape hotel beds: 2001 Cape: 1998-2001 40

30 704 Hottell beds

m s i r u s o Central Karoo: t Central Karoo: T c

f e 20 302 Hottell beds j 533 Hotel beds o 533 Hotel beds

o r r e P b m u N 11 Klleiin Karroo:: 10 9 9 574 Hottell beds 6 3 2 4 020 Hottell beds 0 0 Cape Town Garden West Coast Klein Karoo 1,,067 Hottell beds Route 13,,523 Hottell beds Breede Winelands Overberg River Valley Central Karoo 424 Hottells beds Total value of projects (R 7.8 2.0 5.0 2.0 0.3 0.2 0.01 0.0 Billion) Source: SA Accommodation Finder; Western Cape Tourism Board, 2001; Wesgro UUP-WRD-Central Karoo Profile-301106-IS 74 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Production ± Accommodation Central Karoo Hotels and self-catering units dominate the accommodation offering; the occupancy rate only comes close to the provincial average during peak-time in December

Number of Beds by Type of Central Karoo Accommodation: 2001 Room Occupancy Rate: Dec 2000 and Feb 2001 100% e

t Klein and Central Karoo a 80% Hotels 302 R Western Cape Average 65.9% y

c 56.9% n 60% a 49.2% p

u 40.7% c

c 40% O Self-Catering 213 m

o 20% o R 0% Dec-00 Feb-01 Bed & Breakfast 100

Bed Occupancy Rate: Dec 2000 and Feb 2001 100% Klein and Central Karoo e Guest Houses 99 t a 80% Western Cape Average R

c 60% n 46.7% 48.4% a p

u 36.4%

c 40%

c 28.0%

Backpackers 4 O

d 20% e B 0% 0 100 200 300 400 Dec-00 Feb-01 Number of Beds Source: Western Cape Integrated Tourism Development Framework UUP-WRD-Central Karoo Profile-301106-IS 75 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Production ± Pricing Compared with other Western Cape tourism destinations the establishments in Central Karoo have not increased their prices at the same pace

Proportion of All Western Cape Establishments with Price Increases > 5%: Dec 2003-Jun 2004 100%

75% 67% s t

n 56% 55% e l l m a

h f 47% s o

i 50% 46%

l 45% b % a t s E 29% 25%

0% Garden Winelands Cape Town Little Karoo West Overberg Central Route Coast Karoo

Source: Infonomics: Pricing Survey 2005 UUP-WRD-Central Karoo Profile-301106-IS 76 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Production ± Contribution to nodal economy The underdeveloped tourism sector does not only compete poorly with other Western Cape destinations but also delivers a decreasing contribution to the nodal economy

Catering and Accommodation as Percentage of Total Nodal GDP: Summary of production 1995-2004 4% ¨ ¨ CCoommppaarreedd wwiitthhootthheerr rreeggiioonnss iinn tthhee WWeesstteerrnn CCaappee tthhee CCeennttrraall KKaarroooo hhoossttss aa ssmmaallll nnuummbbeerr ooff ttoouurriissmm aattttrraaccttiioonnss 3% 2.8% ±± TThhee CCeennttrraall KKaarrooooNNaattiioonnaall 2.6% P

PPaarrkk iiss tthhee oonnllyy mmaajjoorr aattttrraaccttiioonn D 2.4% 2.4%

G 2.3% 2.3%

l a ¨ ¨ d

LLaacckk ooff iinnvveessttmmeennttss oovveerr tthhee ppaasstt o N

l 2%

ffoouurr yyeeaarrss hhaass lleedd ttoo aa rreellaattiivveellyy a t o T ssmmaallll nnuummbbeerr ooff aaccccoommmmooddaattiioonn f o eessttaabblliisshhmmeennttss % ¨ ¨ EEssttaabblliisshhmmeennttss iinn CCeennttrraall KKaarroooo 1% hhaavvee nnoott iinnccrreeaasseedd tthheeiirr pprriicceess iinn tthhee ssaammee ppaaccee aass ootthheerr ttoouurriissmm rreeggiioonnss iinn tthhee WWeesstteerrnn CCaappee

0% 1995 1997 1999 2001 2003 2004

Source: Quantec; Monitor analysis UUP-WRD-Central Karoo Profile-301106-IS 77 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Target markets ± Western Cape in a national perspective The Western Cape is the second most visited province by overseas tourists; however, in terms of number of visitors, the domestic market dominates

Provincial Distribution of Domestic Provincial Distribution of Foreign Tourists: 2005 Tourists: 2005

KwaZulu Natal 36% Gauteng 49%

Gauteng 20% Western Cape 22%

Eastern Cape 9% KwaZulu Natal 22%

The Western Cape 9% Mpumalanga 15% North West hosted 2.53 million domestic trips in 2005 The Western Cape had Limpopo 8% Free State 9% 1.62 million foreign tourist arrivals in 2005

Western Cape 7% Eastern Cape 8%

Free State 5% North West 8%

Mpumalanga 5% Limpopo 7% Total Number of Domestic Total Number of Foreign Northern Cape 2% Trips: 36.2 millions Northern Cape 3% Arrivals: 7.37 millions

0% 20% 40% 60% 0% 20% 40% 60% % of Trips % of Visitors

Source: SA Tourism: Domestic Tourism Survey 2005, Annual Tourism Report 2005; Monitor analysis UUP-WRD-Central Karoo Profile-301106-IS 78 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Target markets ± Origin of visitors The domestic visitors originate predominantly from the Western Cape whereas UK and Germany are the main overseas markets

Origin of Domestic Visitors to Origin of Overseas Visitors to Western Cape: 2005 Western Cape: Q4 2004 100% 25%

22% 84%

80% 20%

60% 15%

14% l l l l s s r r a a

o o f f t t i i o o

s i i % V V %

40% 10% 9%

7% 7%

20% 16% 5%

0% 0% Western Cape Other Provinces UK Germany Namibia Lesotho USA

Source: SA Tourism UUP-WRD-Central Karoo Profile-301106-IS 79 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Target markets ± Central Karoo as a destination in the Western Cape Of the many tourists coming to the Western Cape only a very small portion actually cite the Central Karoo as their prime destination

Regional Distribution of Domestic Regional Distribution of Foreign Tourists to the Western Cape: 2003 Tourists to the Western Cape: 2003

Cape Metro 44% Cape Metro 54%

Garden Route / Garden Route / 19% 19% Klein Karoo Klein Karoo

Cape Wineland 14% Cape Wineland 14%

West Coast 12% West Coast 5%

Cape Overberg 8% Cape Overberg 6%

Central Karoo 3% Central Karoo 2%

0% 20% 40% 60% 0% 20% 40% 60% % of Visitors % of Visitors

Note: The percentage sums up to 100% indicating that only the prime destination for each visitor is counted Source: Western Cape Tourism Trends Card 2003 UUP-WRD-Central Karoo Profile-301106-IS 80 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Target markets ± Beaufort West To most visitors, the Central Karoo, and especially Beaufort West, is only a convenient stop between Johannesburg and Cape Town

Planned Duration of Stay in Beaufort West Gateway to the Cape © © Half an hour 50.5% CCeennttrraall KKaarrooooaanndd BBeeaauuffoorrtt WWeesstt aarree eenn rroouuttee ffrroomm JJoohhaannnneessbbuurrgg ttoo CCaappee TToowwnn Hour 20.0% ±± BBeeaauuffoorrtt WWeesstt iiss iiddeeaallllyy ssiittuuaatteedd aass aa nnaattuurraall bbrreeaakk ppooiinntt ffoorr tthhee 2 hours 9.5% 1122--hhoouurr ddrriivvee © © Most of the visitors to Beaufort 2 hours + 3.2% Most of the visitors to Beaufort WWeesstt ssttaayy oonnllyy ffoorr aa sshhoorrtt ppeerriioodd ooff ttiimmee ttoo bbuuyy ppeettrrooll//ddiieesseell oorr ffoooodd Overnight 13.7% © © AA ssmmaalllleerr nnuummbbeerr ooff vviissiittoorrss ssttaayy oovveerrnniigghhtt bbuutt nnoorrmmaallllyy ssppeenndd oonnllyy aa 2 days 2.1% Result of a questionnaire handed ssiinnggllee nniigghhtt iinn tthhee aarreeaa out at tourism facilities © and garages in and © According to the survey conducted 3 days 0.0% According to the survey conducted around Beaufort West bbyy VVaann SSttaaddeenn&& MMaarraaiisstthhee mmoosstt N = 378 ccoommmmoonn ((3322..44%%)) ppeerrcceeppttiioonn ooff 4 days + 1.1% BBeeaauuffoorrtt WWeesstt iiss ªªTThhee GGaatteewwaayy ttoo tthhee CCaappeeºº 0% 20% 40% 60% 80% 100% % of Respondents

Source: Western Cape Tourism Trends Card 2003; Van Staden & Marais: The Tourism Potential of Beaufort West, 2005 UUP-WRD-Central Karoo Profile-301106-IS 81 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Target markets ± Karoo National Park Even the main tourism attraction in Central Karoo attracts relatively few visitors and acts mainly as a stop for people travelling between Gauteng and the Western Cape

Distribution of Visitors to South Origin of Domestic Visitors: Top Five African National Parks: 2005 Markets 2005-2006 50%

t 39.9%

Table Mountain 43.4% s 37.2% g r

i 40% o n t r i e s i v 30% V

c l 36.5% i

Kruger t a t s

o 20% e T

m f o o

6.9% D 10% 5.6% 4.1%

Tsitsikamma 4.8% % 0% Gauteng Western Free North Eastern Addo 4.1% Cape State West Cape

Origin of Overseas Visitors: Top Five West Coast 4.1% Markets 2005-2006 50%

s 40%

g 35.9% r

Augrabies 1.8% i o n t r i s e i v 30% V

s l a Karoo 0.8% a t e o s 20% r T

Total Number of f 12.3% v o

9.5% 9.1% Visitors: 3 409 434 O

% 6.0% Other 4.5% 10%

0% 0% 10% 20% 30% 40% 50% Germany Australia Holland France UK % of Total Number of Visitors Note: The total number of visitors includes guests undertaking day-trips Source: SANParks: Annual Report 2005; Tourism Plan Karoo National Park UUP-WRD-Central Karoo Profile-301106-IS 82 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Target markets ± Competitors to Karoo National Park Few national parks in and around the Western Cape offer a variety of big game; only Addo National Park in the Eastern Cape offers all of the Big Five

“Big Five” Assessment of Selected National South African National (SAN) Parks: 2005 Parks

Buffalo Elephant Leopard Lion Rhino

Mapungubwe Addo ; ; ; ; ;

Marakele Agulhas : : : : :

Bontebok : : : : : Kgalagadi Golden Gate Karoo : : : ; Vaalbos : Augrabies Richtersveld Knysna : ; ; : :

Namaqua Table Mountain : : : : : Mountain Zebra Tankwa : : ; : : Tankwa Karoo Karoo Karoo Knysna Addo West Coast Study Area Tsitsikamma : ; ; : :

Table Mountain West Coast : : Wilderness Tsitsikamma : : : Agulhas Bontebok Wilderness : : ; : :

Source: SANParks website; Monitor analysis UUP-WRD-Central Karoo Profile-301106-IS 83 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Potential for tourism ± Karoo National Park Introducing big game could make Karoo National Park the prime destination among the national parks in the Western Cape and increase Central Karoo’s share of the booming tourism sector in the province Karoo National Park Total Tourism Issues and opportunities Revenue: 2005-2009 15 © © NNoonnee ooff tthhee nnaattiioonnaall ppaarrkkss iinn tthhee WWeesstteerrnn CCaappee hhaavvee mmoorree tthhaann ttwwoo BBiigg 55 ssppeecciieess Future scenario where the introduction of more game ±± KKnnyyssnnaaaanndd TTssiittssiikkaammmmaabbootthh hhaavvee eelleepphhaanntt would increase the number of

and leopard ) 12 annual tourists by 20% per

and leopard n o i l

llooccaattiioonn ffrroomm tthhee ttaarrggeett mmaarrkkeett iinn CCaappee TToowwnn mmaakkee d n Figures Presented in Annual Report it difficult for Karoo National Park to attract large a

it difficult for Karoo National Park to attract large R (

9 Future Scenario

nnuummbbeerrss ooff ttoouurriissttss e 8.0 u n © © If the game offering in Karoo NP could be the best e If the game offering in Karoo NP could be the best v

e 6.6

in the Western Cape there would be potential for a R

in the Western Cape there would be potential for a

natural tourist route connecting Cape Town, Garden m natural tourist route connecting Cape Town, Garden s

i 6 5.5 r

RRoouuttee aanndd tthhee KKaarroooo u o 4.6

T 4.4 ©

According to SANParks it is not possible to a

According to SANParks it is not possible to t o

iinnttrroodduuccee eelleepphhaanntt aanndd lliioonn iinn tthhee sseemmii--ddeesseerrtt bbuutt T tthheerree iiss ppootteennttiiaall ffoorr lleeooppaarrdd,, bbuuffffaalloo,, cchheeeettaahh aanndd 3 mmoorree rrhhiinnoo ±± TToo bbee aabbllee ttoo iinnttrroodduuccee ddaannggeerroouuss wwiilldd aanniimmaallss aann eexxtteennssiivvee ffeenncciinngg pprrooggrraammmmee hhaass ttoo bbee uunnddeerrttaakkeenn ffiirrsstt 0 2005 2006 2007 2008 2009

Note: In the model 2005 refers to the financial year 2004/05, 2006 to the financial year 2005/06 etc. Source: SANParks; Interviews; Monitor analysis UUP-WRD-Central Karoo Profile-301106-IS 84 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Barriers and potential solutions

Barrier / Constraint Potential solution Lack of activities to retain tourists Create more attractions and activities © Current offering to a large extent caters for people en © More offering, e.g. hunting and walking trails, in Karoo route between Gauteng and Cape Town National Park would increase demand for longer stays in © Even the major attraction, Karoo National Park, does not the region offer enough activities to prolong tourists' stays © Attractions around astronomy and the proposed Karoo telescope would also open up a new niche market Remote location Upgrade of railway network © The distance to Cape Town is roughly 430 kilometres © Upgrading the rail link between Gauteng and Cape and the distance to Gauteng is roughly 800 kilometres Town would mean that the region becomes more © The heavy traffic on the N1 makes the drive from Cape accessible for people in Cape Town Town long and the region unsuitable for a shorter © A better railway system could also result in a less busy weekend trip highway Lack of fencing at Karoo National Park Community-based fencing project © There is currently a very limited supply of game in Karoo © Engage the local community in a fencing project in order National Park to create opportunity for some of the Big 5 in Karoo © The lack of fencing makes it impossible to introduce National Park species like leopard or cheetah © Fencing and maintenance thereof would also create several opportunities for jobs requiring a low level of skills

UUP-WRD-Central Karoo Profile-301106-IS 85 Nodal Economic Profiling Project Business Trust & dplg, 2007 Selected sector: Tourism Central Karoo Key contacts

Position / Name Reason to contact Organisation

Brian van der Hospitality Service © Involved in the development of Karoo National Park Westhuizen Manager, Karoo © Good understanding of the potential for introduction of game National Park

Johannes Jonkers Tourism Manager, © Key person on the government side Central Karoo © Good understanding of tourism in the district District Municipality © Involved in several poverty alleviation tourism projects

Beverly Vorster Laingsburg Tourism © Drives tourism projects in and around Laingsburg © Good network in the Laingsburg area

UUP-WRD-Central Karoo Profile-301106-IS 86 Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Central Karoo poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Agriculture

± Selected sector: Tourism

z Investment opportunities

z Summary

z Appendix

UUP-WRD-Central Karoo Profile-301106-IS 87 Nodal Economic Profiling Project Business Trust & dplg, 2007 Investment opportunities Central Karoo Correctional facility

Level of action CCoorrrreeccttiioonnaall FFaacciilliittyy required from Scale Business plan formulation complete?

CCoommmmuunniittyy SSeerrvviicceess Greenfield x Private sector # of Jobs All funding in place?

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

Examples of correctional facilities Concept Data and commentary

Description The idea is to locate a correctional facility to the area around Beaufort West in Central Karoo Central Karoo has a central location and very good road (N1, N12) and railway connections meaning that prisoners could easily be transported from otherwise overcrowded prisons in Cape Town and Gauteng

Economic rationale Locating the facility to a rural region would mean substantially lower labour costs than in the metros Transportation costs are expected to be lower than in other rural regions because of the good location and well functioning infrastructure As a side effect there is potential for manufacturing within the facility using the prisoners as a labour pool

Employment It is estimated that a correctional facility with 3,000 prisoners would employ 500 people In addition there is potential for indirect jobs in the service sector (cooking, accommodation and retail)

Enabling conditions Land for the facility is already available Buy-in from the National Government is needed

Contact details N/A

Source: Interviews; Pictures from www.fintechprecast.com and www.smrtinc.com UUP-WRD-Central Karoo Profile-301106-IS 88 Nodal Economic Profiling Project Business Trust & dplg, 2007 Investment opportunities Central Karoo Cold storage facility

Level of action CCoolldd SSttoorraaggee FFaacciilliittyy required from Scale Business plan formulation complete?

AAggrriiccuullttuurree Greenfield x Private sector # of Jobs All funding in place?

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

Cold storage and apricot sales Concept Data and commentary

Description Around Prince Albert and Swartberg in the southern part of Central Karoo there is extensive agricultural production Especially apricots are of very high quality and are exported to major fruit markets Apricot production is, however, very seasonal and during the off-season there is very little production and few employment opportunities The idea is to build a cold storage facility in order to keep stocks of apricots and have year-round agri-processing and production of, for example, jam

Economic rationale Today apricots of lower quality cannot be exported and need to be sold locally at a low price With appropriate storage facilities these apricots could, however, be used in jam production or sold as dried fruit Exporting not only fresh fruit but also jam and dry fruit could substantially increase the income from apricot production

Employment It is estimated that the storage facility together with further processing and transportations could create 300 jobs in Prince Albert and 150 in Laingsburg

Enabling conditions The estimated cost of the project is R4,505,000 A major part of the required funding needs to come from investors and / or development agencies

Contact details Newton Wicomb, Prince Albert LM (023) 541 1320

Source: Prince Albert Local Municipality; Interviews; Pictures from www.foodprocessing-technology.com and www.sfc.ucdavis.edu UUP-WRD-Central Karoo Profile-301106-IS 89 Nodal Economic Profiling Project Business Trust & dplg, 2007 Investment opportunities Central Karoo Pallet, crate and dry rack manufacture

Level of action PPaalllleett MMaannuuffaaccttuurree required from Scale Business plan formulation complete?

MMaannuuffaaccttuurriinngg Greenfield x Private sector # of Jobs All funding in place?

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

Pallet and rack production Concept Data and commentary

Description The idea is to set up a manufacturing unit in Laingsburg producing pallets, crates and dry racks The local fruit industry has a constant need for pallets for their produce but currently they buy them unloaded from outside the node

Economic rationale There currently exists a shortage of pallets The many fruit producers in the region would be the major customer segment incentivised to buy cheaper pallets locally The N1 passing through Laingsburg creates an ideal opportunity for wood supplies and for delivering the product to the main market in Cape Town The machinery needed for the production could potentially be used for furniture production as well

Employment It is estimated that 20 people would be employed in the manufacturing

Enabling conditions The total project value is estimated to be R1.8 million The cost of the necessary land is only R20,000 since the municipality is involved The gross profit margin over the first four-year period is estimated to be 31.6% Contact details Pietie Williams, Laingsburg LM (023) 551 1019

Source: Laingsburg LM; Pictures from www.orbepallet.tripod.com and www.tierrack.com UUP-WRD-Central Karoo Profile-301106-IS 90 Nodal Economic Profiling Project Business Trust & dplg, 2007 Investment opportunities Central Karoo Beaufort West Hydroponics expansion project

Level of action BBFaeecaatuourfPfyool arprntrt ot W Wdoupeecesstrtsat tHaHionyynddds orropoepproaontnioiicncss required from Scale Business plan formulation complete?

AAggrriiccuullttuurree Greenfield Private sector # of Jobs All funding in place?

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

Beaufort West fresh herb Concept Data and commentary

production Description Hydroponic production of fresh herbs has been established in Beaufort West The idea is to expand existing factory operations

Economic rationale Substantial investments have been made in infrastructure: – five greenhouses, covering 8,000 square metres – Israeli hydroponic technology – two delivery trucks Skilled employees are in place and technical advice partnerships exist Current output has met stringent quality standards, and the plant supplies Woolworths’ Cape Town operations Evidence of market demand suggests the project could triple its current output Beaufort West is centrally located in terms of major metropolitan centres The foundation for a successful business is already in place

Employment Sixty additional jobs could be created

Enabling conditions To expand production, two additional greenhouses are required The delivery fleet must be expanded to three trucks A marketing agent is needed to increase sales reach Management capacity to drive business growth Estimated investment required: R4 million Other The project has a website (www.freshherbs.co.za) and orders can be submitted online. In 2005, the project was an Impumelelo Gold Award Winner¹ Contact details Mr K Muller, Beaufort West Hydroponics Manager (023) 414 4994

Note: ¹The Impumelelo Innovations Awards Trust was created to reward innovations in government and public-private partnerships that reduce poverty and address key development issues UUP-WRD-Central Karoo Profile-301106-IS 91 Nodal Economic Profiling Project Business Trust & dplg, 2007 Investment opportunities Central Karoo Central Karoo Leather expansion project

Level of action CCFaeecnntottrraya llp KKroaadrruoocoots L Laeneadat tohhpeeerrr a tions required from Scale Business plan formulation complete?

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

BBeeaauuffoorrtt WWeesstt && Brownfield x Public sector Funds Req'd Appropriate operational capacity available? LLaaiinnggssbbuurrgg

Central Karoo leather factory Concept Data and commentary and product range Description Leather factories have been established in Beaufort West and Laingsburg as part of a national poverty alleviation programme The idea is to expand existing factory operations

Economic Substantial investments have been made in infrastructure: rationale ± Factory space exists ± Machinery has been bought and installed Employees have undergone training, and skills transfer is taking place Supply contracts are in place Limited marketing efforts have resulted in the establishment of strategic outlet points (i.e. Matjesfontein) Current product design and quality is of a high standard The foundation for a successful business is already in place

Employment Employment opportunities will be regained within the factories. The factories initially employed 40 people, but currently only offer 30 jobs Expansion could also create the need for a marketing agent

Enabling Marketing expertise to maximise distribution strategies and develop a brand conditions Management capacity to drive business growth

Other The project has a website (www.karooleather.co.za) and orders can be submitted online Contact details Mr D September, Central Karoo Leather Director (023) 415 3783 Mr A Webb, CSIR Project Contact (021) 658 2750

UUP-WRD-Central Karoo Profile-301106-IS 92 Nodal Economic Profiling Project Business Trust & dplg, 2007 Investment opportunities Central Karoo Skin processing

Level of action KKFaacrrtoooroy SSpkrkoiindnu PPctrrsoo accneedss sospiinnegrga t ions required from Scale Business plan formulation complete?

AAggrrii--PPrroocceessssiinngg Greenfield x Private sector # of Jobs All funding in place?

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

Concept Data and commentary Flow of animal skins and leather products Description The Central Karoo is a predominantly sheep farming region, with well established slaughtering facilities Currently animals are slaughtered and then exported, with no further processing of skins taking place in the district Central Karoo Central Karoo The idea is to expand current abattoir value-adding to include skin processing

Meat, carcasses Leather Economic The area is faced with declining sheep numbers, leading to abattoir and skins products are rationale overcapacity

produced in sold back to Abattoirs are importing sheep to alleviate overcapacity, but this is not Central Karoo Cape Town sufficient to drive growth. Further value-adding could facilitate the latter are exported for

further There is already a local market for processed skins: processing ± Newly established leather factories in the node are currently forced to import raw materials from Cape Town ± This can cause delays in their production schedule and limit control over the imports they receive Skins are

imported back Employment An estimated five to ten jobs could be created through the expansion of to the district for existing abattoir operations into skin processing

the manufacturing A spin-off effect could be increased employment opportunities in leather of leather manufacturing products Enabling Skin processing is a water-intensive process ± water availability is conditions currently limited; water purification technology will also be required to clean water at the end of the process CCaappee TToowwnn Contact details Frans van der Merwe, Karoo Lamb Abattoir Owner (023) 415 1771

UUP-WRD-Central Karoo Profile-301106-IS 93 Nodal Economic Profiling Project Business Trust & dplg, 2007 Investment opportunities Central Karoo Karoo National Park

Level of action GGaammee iinn KKaarroooo NNaattiioonnaall PPaarrkk required from Scale Business plan formulation complete?

TToouurriissmm Greenfield Private sector # of Jobs All funding in place?

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

Potential for leopard and Concept Data and commentary cheetah in Karoo National

Park Description Karoo National Park is currently the main tourism attraction in Central Karoo offering beautiful scenery, hiking trails and conference facilities Few people visiting the Western Cape actually visit the Karoo and the Karoo National Park One major reason for the few visitors is the very limited game offered By introducing leopard, cheetah and buffalo a larger number of tourists could be attracted to visit the park and overnight there Today only 15% of the park is accessible to tourists and there is potential to create more tourist routes through the park

Economic rationale Today only a few national parks in the Western Cape offer the Big 5 species At most two species are offered in the Western Cape (Tsitsikamma and Knysna) and the nearest Big 5 park is in the Eastern Cape (Addo) Although it is not possible to introduce lion or elephant in the Karoo semi-desert, there is potential for buffalo, leopard and more rhino With this game offering Karoo National Park could be the major destination among the Western Cape national parks

Employment With an increasing demand for accommodation and other services the number of people employed in the park will increase Fencing programmes and road upgrades would also create several job opportunities

Enabling conditions New roads are needed if a larger portion of the park is to be accessible to tourists The park needs to be upgraded with an extensive fencing programme if wild and dangerous animals are to be introduced Contact details Brian van der Westhuizen (023) 415 2828

Source: Interviews; Pictures from www.leopard-tours.com and www.liv.ac.uk UUP-WRD-Central Karoo Profile-301106-IS 94 Nodal Economic Profiling Project Business Trust & dplg, 2007 Investment opportunities Central Karoo Legend

Title, name of investment opportunity BBiioo SSuuiissssee OOrrggaanniicc VVeeggeettaabblleess Indicates whether this opportunity is Main sector or industry the based on current or previous operations AAggrriiccuullttuurree Greenfield opportunity is located in (brownfield), or whether this opportunity requires building up a new business ‘from 20 km from Vryheid Brownfield Intuitive description of geographic location 20 km from Vryheid x scratch’ (greenfield).

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

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

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

UUP-WRD-Central Karoo Profile-301106-IS 95 Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Central Karoo poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Agriculture

± Selected sector: Tourism

UUP-WRD-Central Karoo Profile-301106-IS 96 Nodal Economic Profiling Project Business Trust & dplg, 2007 Summary Central Karoo Understanding the node

Key observations from Central Karoo Key characteristics of node

Vast area and small population leads to a population density of © Low population 2 OOvveerrvviieeww only 1.6 persons / km density Access to basic service better than national averages © Both the major highway N1 and the rail link connecting Gauteng Dry climate

with Cape Town pass through the region © Good access to Rapid GDP growth since 1995 but GDP per capita is still only a infrastructure third of the Western Cape average ©

Drive through region EEccoonnoommyy Both the percentage of the population living below the poverty level for people en route oovveerrvviieeww and the unemployment rate are lower than the national average Agriculture is the main employer but Transport and between Gauteng Communication is the sector with the largest GDP contribution and Cape Town © The tourism employs 4.2% of the work force but only makes up Karoo National Park 2.3% of the nodal GDP according to Quantec as the major

Economy, Of the many visitors to the Western Cape only about 2% have attraction Economy, Central Karoo as their final destination © TToouurriissmm Because of the location along the N1 the region is mainly a drive Mainly sheep and through region with the Karoo National Park as the only major goat farming attraction ©

Karoo Lamb Due to the dry climate the potential for extensive agricultural potential is very limited © Agriculture produce

Except for a humid region in the south with horticulture production exported to major EEccoonnoommyy,, (e.g. grapes and apricots) the region is dominated by sheep and goat farming (Karoo Lamb) SA markets for

AAggrriiccuullttuurree Produce is to a large extent exported to the major markets in processing or export Cape Town, Port Elizabeth and Johannesburg for further processing and / or export overseas

UUP-WRD-Central Karoo Profile-301106-IS 97 Nodal Economic Profiling Project Business Trust & dplg, 2007 Summary Central Karoo Potential sources of economic growth ± Short term

Economic growth of firm in node

Increase sales? Decrease cost?

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

Where to focus?

Branding of Karoo Lamb

Marketing of agricultural Create a protected products brand for meat from the Karoo Leather products can be targeted at the passengers Training

of the Blue Train / Rovos Offer courses for people working Rail with tourism and in the service Leverage the marketing sector channels in Cape Town to export fresh herbs to Gauteng Not a Key Focus Focus Area Area

UUP-WRD-Central Karoo Profile-301106-IS 98 Nodal Economic Profiling Project Business Trust & dplg, 2007 Summary Central Karoo Potential sources of economic growth ± Long term

Economic growth of firm in node

Increase sales? Decrease cost?

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

For Import Skills Other export substitution

Where to focus?

Further education Transportations

Offer post-matric education Upgrade the rail link to stop the migration of between Gauteng and skilled people to Cape Cape Town to create Agri-processing Town and Port Elizabeth alternative means of

Processing of transport and increase the meat, skins and attractiveness of the node leather products Tourism master plan Mentorship programmes

Production of More offerings targeting the Engage commercial jam, juice and many people travelling through farmers to help dried fruits the node subsistence farmers bridge

the skills gap and become Introduction of game in Karoo more commercial National Park

UUP-WRD-Central Karoo Profile-301106-IS 99 Nodal Economic Profiling Project Business Trust & dplg, 2007 Summary Central Karoo Assessment of current activities

Key observations from Central Karoo

WWhhaatt iiss bbeeiinngg ddoonnee??

Strategic choice

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

Leveraging the location along the N1 will give the tourism sector a necessary boost There is currently a strong demand for both leather products and fresh herbs; with an efficient marketing campaign the sales could be substantially increased Continue supporting small businesses in the region; a future mining boom would mean several opportunities for Small Medium Micro Enterprises (SMMEs) serving the mining sector

UUP-WRD-Central Karoo Profile-301106-IS 100 Nodal Economic Profiling Project Business Trust & dplg, 2007 Summary Central Karoo What needs to be done now?

Key observations from Central Karoo

SSoolluuttiioonnss ttoo ccoonnssttrraaiinnttss // IInnvveessttmmeenntt ooppppoorrttuunniittiieess

Requires involvement of key stakeholders

UUP-WRD-Central Karoo Profile-301106-IS 101 Nodal Economic Profiling Project Business Trust & dplg, 2007 Central Karoo Central Karoo poverty node

z Research process

z Overview

z Economy

± Overview

± Selected sector: Agriculture

± Selected sector: Tourism

z Investment opportunities

z Summary Itineraries of field trips

Key stakeholders z

Appendix Key documents

Photo collage

UUP-WRD-Central Karoo Profile-301106-IS 102 Nodal Economic Profiling Project Business Trust & dplg, 2007 Appendix Central Karoo Itinerary of the field trip

TTrraavveell sscchheedduullee // LLooccaattiioonnss MMaaiinn aaccttiivviittiieess CCoommmmeennttss

Meeting with Nodal Manager, provincial co-ordination manager,

MMoonnddaayy,, 2233 OOccttoobbeerr CKDM LED and Tourism managers Beaufort West Meeting with the Nelspoort 22000066 Community Farm Meeting with Central Karoo Leather

Meeting with farmer / entrepreneur Meeting with PIMS manager CKDM

TTuueessddaayy,, 2244 OOccttoobbeerr Beaufort West ± Nelspoort ± Meeting with Beaufort West Beaufort West Hydroponics 22000066 Meeting with manager of Central Karoo National Park

Meeting with DoA representatives

from all local municipalities

Beaufort West ± Prince Albert ± WWeeddnneessddaayy,, 2255 Meeting with LED/IDP manager October 2006 Laingsburg ± Beaufort West Prince Albert LM

October 2006 Tourism meeting in Laingsburg

Meeting with Read Enterprise TThhuurrssddaayy,, 2266 Beaufort West ± George Development (RED door) Flight back to Johannesburg Meeting with the President of Rotary OOccttoobbeerr 22000066 Beaufort West

FFrriiddaayy,, 2277 OOccttoobbeerr Johannesburg Team off-site 22000066

UUP-WRD-Central Karoo Profile-301106-IS 103 Nodal Economic Profiling Project Business Trust & dplg, 2007 Appendix Central Karoo Key stakeholders, actors, information carriers

PPrriivvaattee sseeccttoorr // GGoovveerrnnmmeenntt PPuubblliicc sseeccttoorr LLooccaall ppeeooppllee NNGGOOss ootthheerr BBuussiinneessss Workers at Western Cape Central Karoo Rotary Beaufort The Courier Provincial Karoo Lamb Central Karoo West (Newspaper) Government National Park Leather

Real Enterprise LED Manager, Central Karoo Nelspoort Development Central Karoo DM Leather Community Farm (RED door)

Local Tourism Tourism Manager, Beaufort West Organisation, Central Karoo DM Hydroponics Laingsburg

PIMS manager, PG Consulting Central Karoo DM

Department of Agriculture, Western Cape

LED/IDP Manager, Prince Albert LM

= referred to = have appointment = have met = key person, suggest to involve in future discussions Note: DM = District Municipality UUP-WRD-Central Karoo Profile-301106-IS 104 Nodal Economic Profiling Project Business Trust & dplg, 2007 Appendix Central Karoo Key documentation

AAuutthhoorr // TTiittllee MMaaiinn iissssuueess ccoovveerreedd YYeeaarr OOrrgg..

Central Karoo IDP Review 2005/06 for Implementation 2006/07 Planning report for the region 2006 District Municipality

Central Karoo IDP Review 2004/05 for Implementation 2005/06 Planning report for the region 2005 District Municipality

Central Karoo District Municipality Concept Budget & IDP Central Karoo Budgets 2006 2006/2007 to 2008/2009 District Municipality

Central Karoo Central Karoo District Municipality Organogram Municipal structure 2006 District Municipality

Central Karoo Central Karoo District Nodal Vision 2010 District development 2006 District Municipality

Central Karoo Economic Regeneration Study Regional socio-demographic and economic profile SETPLAN 2006

Rapid Review of Designated Vulnerable Areas in the Western Cape Province (Chapter 5 ± Central Karoo: Prince Local municipality profile; development related proposals CSIR 2002 Albert)

Central Karoo Central Karoo Economic Programme Economic development discussion framework Nodal Champion, 2006 N Witbooi

Note: CSIR = Council for Scientific and Industrial Research UUP-WRD-Central Karoo Profile-301106-IS 105 Nodal Economic Profiling Project Business Trust & dplg, 2007 Appendix Central Karoo Key documentation (Continued)

AAuutthhoorr // TTiittllee MMaaiinn iissssuueess ccoovveerreedd YYeeaarr OOrrgg..

Central Karoo Central Karoo LED Project Proposals 2006/2007 List of district projects including proposed budgets 2006 District Municipality

Central Karoo Central Karoo Leather Brochure and Product Catalogue Project history, employment and product details 2006 Leather

BuaNews, N R2.2m for Karoo Hydroponics Farm Overview of Beaufort West hydroponics project 2004 Matomela

Report of the Portfolio Committee on Science and Western Cape Technology on Study Tour to Northern and Eastern Cape Overview of Beaufort West hydroponics project Provincial 2005 Provinces Government

Exit Report: Central Karoo District Municipality (DC5) District health systems, management and developmental Health Systems 2004 Western Cape Province, February 2002 ± August 2004 issues Trust

Central Karoo Central Karoo District Municipality Schools List of all district schools 2006 District Municipality

National A Draft Short-Term Implementation Plan of the Rural Transport issues, strategic actions, budgets and Department of Transport Strategy for South Africa responsible persons Transport

National National freight transport overview, concerns and National Freight Logistics Strategy Department of 2005 recommendations Transport

tick if on file

UUP-WRD-Central Karoo Profile-301106-IS 106 Nodal Economic Profiling Project Business Trust & dplg, 2007 Appendix Central Karoo Key documentation (Continued)

AAuutthhoorr // TTiittllee MMaaiinn iissssuueess ccoovveerreedd YYeeaarr OOrrgg..

Western Cape Overview Demographic and economic profile Wesgro 2004

Central Karoo Central Karoo Overview District Profile District Municipality

www.thegreatkaroo .com; Great Karoo Overview History, climate, vegetation and astronomy 2006 www.centralkaroo. co.za

Agricultural economics, production, consumption, prices, Department of Abstract of Agricultural Statistics 2005 2005 imports and exports Agriculture

Census of Agriculture National Statistics 2002 Financial and production statistics Stats SA 2002

Census of Agriculture Provincial Statistics 2002 ± Western Financial and production statistics Stats SA 2002 Cape

Production, consumption, prices, income, expenses, Department of Economic Review of the South African Agriculture 2005/06 2006 imports and exports Agriculture

Final Wool Sales Report and Price Summary Sales analyses Cape Wools SA 2006

tick if on file

UUP-WRD-Central Karoo Profile-301106-IS 107 Nodal Economic Profiling Project Business Trust & dplg, 2007 Appendix Central Karoo Key documentation (Continued)

AAuutthhoorr // TTiittllee MMaaiinn iissssuueess ccoovveerreedd YYeeaarr OOrrgg..

Western Cape agriculture overview: market presence, Agriculture Sector Brief Wesgro 2005 competitive advantages, growth opportunities

Mohair South Mohair South Africa Overview 2005 Mohair production, sales, prices and exports 2005 Africa

Strategic Tourism Development & Marketing Central Karoo Regional tourism review, tourism vision and action plan 2006 Implementation Plan District Municipality

The Tourism Potential of Beaufort West: A study Based on Tourism overview, Beaufort tourism survey, thoughts on the J van Staden & L 2005 Visitor Demand concept of a gateway Marais

Tourism benefits, Western Cape tourism review and product DEAAT Western Western Cape Integrated Tourism Development Framework portfolio Cape

Karoo National Tourism Plan: Karoo National Park 2006 Tourism analysis, visitor profile, future opportunities 2006 Park

SAN Parks Vision, mission, performance and visitor South African SAN Parks: Annual Report 2005 2005 statistics National Parks

Targeting the Right Markets for South African National C Uys & M Tourism profile review and marketing recommendations Parks Saayman

tick if on file Note: DEAAT = Department of Economic Affairs, Agriculture and Tourism UUP-WRD-Central Karoo Profile-301106-IS 108 Nodal Economic Profiling Project Business Trust & dplg, 2007 Appendix Central Karoo Key documentation (Continued)

AAuutthhoorr // TTiittllee MMaaiinn iissssuueess ccoovveerreedd YYeeaarr OOrrgg..

Cape Town Routes Cape Town Routes Unlimited Tourism Trends Visitor statistics Unlimited

Tourism Impact, Distribution and Development: The Spatial Provincial tourism patterns and profiles, accommodation Structure of Tourism in the Western Cape Province of S Cornelissen 2005 statistics and tourism investments South Africa

Western Cape tourism profile, competitive advantages and Tourism Sector Brief Wesgro 2005 investment incentives

Results of a Western Cape Tourism Pricing Survey 2003- Infonomics South Price changes in the tourism sector 2005 2004 Africa

Tourism statistics: visitor origin, attraction ratings and Grant Thornton Western Cape Trends Card 2003 accommodation sales Kessel Feinstein

South African South African Tourism 2005 Annual Tourism Report Visitor statistics 2005 Tourism

South African Tourism Quarterly Report ± Western Cape South African Visitor statistics 2005 (Q4 2004): October ± December 2004 Tourism

South African South African Domestic Tourism Survey 2001 Visitor Statistics 2001 Tourism

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UUP-WRD-Central Karoo Profile-301106-IS 109 Nodal Economic Profiling Project Business Trust & dplg, 2007 Appendix Central Karoo Key documentation (Continued)

AAuutthhoorr // TTiittllee MMaaiinn iissssuueess ccoovveerreedd YYeeaarr OOrrgg..

L de Lange Investment Opportunities in Uranium Scarce Uranium pricing, demand and new mining prospects (www.miningmx. 2006 com)

Uranium deposits in the Karoo, uranium pricing, mining N Blatch (Weekend Karoo Town Readying for a Uranium Boom 2006 exploration and uranium demand Post)

Uranium market and South African uranium mining J Davenport Newcomer to Take Advantage of Uranium Boom 2006 operations (Mining Weekly)

T Botha (Landbou Geskarrel na Uraan in die Karoo Current mining interest in Central Karoo 2006 Weekblad)

tick if on file

UUP-WRD-Central Karoo Profile-301106-IS 110 Nodal Economic Profiling Project Business Trust & dplg, 2007 Photo collage #1: Central Karoo Constraints to economic growth

Remote location ± distances from markets Ineffective rail network Remote location ± distances from markets Ineffective rail network

The absolute The absolute majority live in rural majority live in rural areas areas

UUP-WRD-Central Karoo Profile-301106-IS 111 Nodal Economic Profiling Project Business Trust & dplg, 2007 Photo collage #2: Central Karoo Opportunities for investments

More game in Karoo National Park More game in Karoo National Park

Expansion: Central Karoo Leather Expansion: Beaufort West Hydroponics Expansion: Central Karoo Leather Expansion: Beaufort West Hydroponics

The absolute The absolute majority live in rural majority live in rural areas areas

UUP-WRD-Central Karoo Profile-301106-IS 112 Nodal Economic Profiling Project Business Trust & dplg, 2007 Photo collage #3: Central Karoo People and places of the node

Beaufort West Laingsburg Matjesfontein Beaufort West Laingsburg Matjesfontein

Eldo, Deidre Eldo, Deidre and David of and David of Karoo Leather Karoo Leather

The absolute majority live in rural areas

UUP-WRD-Central Karoo Profile-301106-IS 113 Nodal Economic Profiling Project Business Trust & dplg, 2007 Photo collage #4: Central Karoo Businesses of the node

Karoo Lamb: Abattoirs and butcheries Overnight accommodation Karoo Lamb: Abattoirs and butcheries Overnight accommodation

Financial services Gateway to the Cape: Petrol stations and truck stops Financial services Gateway to the Cape: Petrol stations and truck stops

The absolute The absolute majority live in rural majority live in rural areas areas

UUP-WRD-Central Karoo Profile-301106-IS 114