Umkhanyakude Kwazulu Natal Nodal Economic Profiling Project Business Trust & Dplg, 2007 Umkhanyakude Context
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Nodal Economic Profiling Project Umkhanyakude KwaZulu Natal Nodal Economic Profiling Project Business Trust & dplg, 2007 Umkhanyakude Context IInn 22000011,, SSttaattee PPrreessiiddeenntt TThhaabboo MMbbeekkii aannnnoouunncceedd aann iinniittiiaattiivvee ttoo aaddddrreessss uunnddeerrddeevveellooppmmeenntt iinn tthhee mmoosstt sseevveerreellyy iimmppoovveerriisshheedd rruurraall aanndd uurrbbaann aarreeaass ((““ppoovveerrttyy nnooddeess””)) iinn SSoouutthh AAffrriiccaa,, wwhhiicchh hhoouussee aarroouunndd tteenn mmiilllliioonn ppeeooppllee.. TThhee UUrrbbaann RReenneewwaall PPrrooggrraammmmee ((uurrpp)) aanndd tthhee IInntteeggrraatteedd SSuussttaaiinnaabbllee RRuurraall Maruleng DDeevveellooppmmeenntt PPrrooggrraammmmee Sekhukhune ((iissrrddpp)) wweerree ccrreeaatteedd iinn 22000011 ttoo address development in these Bushbuckridge address development in these aarreeaass.. TThheessee iinniittiiaattiivveess aarree Alexandra hhoouusseedd iinn tthhee DDeeppaarrttmmeenntt ooff Kgalagadi Umkhanyakude PPrroovviinncciiaall aanndd LLooccaall Government (dplg). Zululand Government (dplg). Maluti-a-Phofung Umzinyathi Galeshewe Umzimkhulu I-N-K Alfred Nzo Ukhahlamba Ugu Central Karoo OR Tambo Chris Hani Mitchell’s Plain Mdantsane Khayelitsha Motherwell UUP-WRD-Umkhanyakude Profile-301106-IS 2 Nodal Economic Profiling Project Business Trust & dplg, 2007 Umkhanyakude Umkhanyakude poverty node Activities z Research process Documents People z Overview z Economy – Overview – Selected sector: Tourism – Selected sector: Agriculture z Investment opportunities z Summary z Appendix UUP-WRD-Umkhanyakude Profile-301106-IS 3 Nodal Economic Profiling Project Business Trust & dplg, 2007 Research process Umkhanyakude Summary of what we have done AAccttiivviittiieess DDooccuummeennttss PPeeooppllee z Desk research z One SDF z Meetings with implementation government / public z Two visits to node: framework sector and private ± 12-16 June 2006, sector / local residents z Two local government 26-30 June 2006 analyses ± Ten meetings with ± Understanding of district and local z Six IDP evaluation potential for municipalities, framework economic growth, Gijima KZN identifying specific z Two IDP development / ± Fourteen meetings opportunities for action plan with SMMEs, investments z One IDT development independent ± Visit to the Jozini plan consultants, money Dam, the Makhathini lenders and local z Two LED documents Flats area (both the residents Research Station z Two economic reports and the Agricultural compiled by an Forum), St Lucia, independent consultant and two cultural villages UUP-WRD-Umkhanyakude Profile-301106-IS 4 Nodal Economic Profiling Project Business Trust & dplg, 2007 Umkhanyakude Umkhanyakude 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-Umkhanyakude Profile-301106-IS 5 Nodal Economic Profiling Project Business Trust & dplg, 2007 Umkhanyakude Overview IInnttrroodduuccttiioonn KKeeyy ddaattaa ppooiinnttss CCuurrrreenntt aaccttiioonn Introduces the node; Lists pertinent facts Describes current summarises key issues and 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-Umkhanyakude Profile-301106-IS 6 Nodal Economic Profiling Project Business Trust & dplg, 2007 Introduction Umkhanyakude Snapshot Key information Population: 2001 573,341 Area 12,818.18 km2 UUmmkkhhaannyyaakkuuddee Population density: 2001 44.73 / km2 Estimated GDP: 2004 R1,93bn Province KwaZulu Natal Main town / city Mkuze (pop. 52,300) OOvveerrvviieeww zz UUmmkkhhaannyyaakkuuddee ccoovveerrss tthhee ªªEElleepphhaanntt CCooaassttººrreeggiioonn ooff KKwwaaZZuulluu NNaattaall zz TThhee nnaammee ªªUUmmkkhhaannyyaakkuuddeeººmmeeaannss ""lliigghhtt iinn tthhee ddiissttaannccee"" aanndd ssiiggnniiffiieess aa ppllaaccee tthhaatt iiss ffuullll ooff hhooppee aanndd pprroommiissee zz TThhee llooccaall ppeeooppllee ssuubbssccrriibbee ttoo tthhiiss nnaammee bbeeccaauussee tthheeyy bbeelliieevvee tthhaatt iitt iiss oonnllyy wwhheenn yyoouu eenntteerr tthhee aarreeaa aanndd rreeaallllyy eexxppeerriieennccee wwhhaatt iitt hhaass ttoo ooffffeerr,, tthhaatt iittss ttrruuee rriicchhnneessss ccaann bbee aapppprreecciiaatteedd Source: Stats SA Census 2001 UUP-WRD-Umkhanyakude Profile-301106-IS 7 Nodal Economic Profiling Project Business Trust & dplg, 2007 Introduction Umkhanyakude Area summary LLooccaattiioonn PPeeooppllee EEccoonnoommiicc cclliimmaattee z Umkhanyakude District z Low-income housing z Some retail stores are Municipality is located and shanty houses are present in the biggest in Mkuze, which is common in the area towns, but the area is about an hour-and-a- z Families tend to be predominantly rural half’s drive from fairly large (on average z A large portion of the Richards Bay six or seven people) area is covered by z Mkuze is the main beautiful landscapes, town, with smaller which makes it very towns including Jozini, popular among tourists Mtubatuba and St z There is great potential Lucia for both tourism and agriculture, in terms of economic growth and job creation UUP-WRD-Umkhanyakude Profile-301106-IS 8 Nodal Economic Profiling Project Business Trust & dplg, 2007 Introduction Umkhanyakude Some observations about Umkhanyakude “We have everything to develop the sector in the area, apart from funding for our projects. We even have agreements with big chains which will buy our products if we manage to upgrade our facilities” ± Agricultural forum in Makhathini “Most of the municipal employees are not originally from this area, do not live here over the weekend and do not have family here … This means that most of their salaries are spent elsewhere” ± Independent consultant “Cultural concepts combine the tourists’ interest in knowing our land with the communities’ interest in making some money out of it” ± Tour operator “Integration between blacks and whites is not yet fully realised and this prevents the realisation of the area’s full potential with regard to tourism” ± Tour operator “Infrastructure and lack of management skills are tremendous drawbacks in this area” ± Independent consultant UUP-WRD-Umkhanyakude Profile-301106-IS 9 Nodal Economic Profiling Project Business Trust & dplg, 2007 Introduction Umkhanyakude Key challenges EEccoonnoommiicc ddeevveellooppmmeenntt IInnffrraassttrruuccttuurree cchhaalllleennggeess cchhaalllleennggeess z Most of the people in the area z The young people in the area, need water supply and who represent the vast electricity majority of the population, find z Infrastructure needs to be it difficult to get a job upgraded or better maintained z Implementation and managerial skills seem to be missing within the municipal structures, even at the highest levels z The area is one of the most analysed in KwaZulu Natal (KZN), but is also one of the most underdeveloped because of the inability of local government representatives to follow up on projects and studies UUP-WRD-Umkhanyakude Profile-301106-IS 10 Nodal Economic Profiling Project Business Trust & dplg, 2007 Introduction Umkhanyakude Local people portrait: Segments of local people SSeeggmmeenntt 11 SSeeggmmeenntt 22 SSeeggmmeenntt 33 Name of segment Middle-aged male worker Working young woman Youth Sub-contractor to Mondi Housekeeper at Unemployed, but has Economic activity cutting down trees tourist resort completed Grade 12 Expand the number of Find job opportunities for How to increase forests that they are spare time (e.g. afternoons their productivity? contracted to working on in her case) Increase job opportunities in the area, e.g. more game farms will lead to more jobs How could they He is planning to leave his Set up a dry-cleaning for guides increase their family and move to Vryheid service for the resorts of personal income? to get a better-paying job the area How could they Find more cost-effective decrease their means of getting to work personal costs? and back (taxis too costly) Lack of skills to try different There are many family Cannot find a stable job Constraints to options (farming, spaza members to support, and and not willing to work in economic growth shops) lack of water and electricity agriculture Investment Expertise training on how to Basic business skills opportunities in this add value to the wood that training for cleaning service segment is cut and similar initiatives UUP-WRD-Umkhanyakude Profile-301106-IS 11 Nodal Economic Profiling Project Business Trust & dplg, 2007 Introduction Umkhanyakude Local people portrait – Thobi Thobi works as a housekeeper at Ghost Mountain Inn, a four-star hotel in Mkuze. Thobi is 24 and the second-oldest of seven children. She is single and lives with her family. Thobi works at Ghost Mountain Inn from 6h00 to 13h00 and again from 17h00 to 22h00, seven days a week. Her salary is around R1,500 a month. Other employees at GMI earn up to R2,500 depending on their years of experience. Thobi and her older brother, who moved to Durban for work, are the only people employed in her family. Between them, they support six more people (five brothers and sisters and their mother). Thobi says her salary is