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Local Economic Development Strategy

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Local Economic Development Strategy Final May 2013 Lepelle-Nkumpi Local Municipality Local Economic Development Strategy KayamandiKayamandi Development Development Services | EXECUTIVE Services SUMMAR (Pty) LtdY i (012) 346 4845 P.O. Box 13359, Hatfield, 0028 [email protected] EXECUTIVE SUMMARY This LED report for Lepelle-Nkumpi (2013-2018) has been prepared by Kayamandi Development Services (Pty) LTD on behalf of Lepelle-Nkumpi Local Municipality. The review of the previous LED entailed: organising the effort, reviewing the LED strategy, developing an implementation plan and monitoring tool, and proposing an organisational structure. The LED sets out, and is aligned to, various National, Provincial and Local government policies, programmes and initiatives including the standardised framework for LEDs. The LED also sets out the socio-economic context with regards to demographics, environmental and infrastructure contexts as well as the economic context in relation to the District, Provincial and National context in order to create the background against which an appropriate development path can be determined. Lepelle-Nkumpi is situated a great distance from the economic hubs of South Africa and as such it needs to focus intensely on addressing the large income imbalance and integrating a much larger proportion of the population into the economy. Economic growth of the municipality cannot be sustained if there are continued high degrees of social exclusion. A detailed analysis of the contribute to the local economy is also undertaken by providing an overview of the key economic sectors, highlighting the most important products produced, existing development initiatives, existing and potential economic linkages, and identifying development potential for the municipality. A summary of the key constraints and opportunities are as follows: SECTOR KEY CONSTRAINTS KEY OPPORTUNITIES • Unresolved land claims • Development of a citrus cluster • Scale of current production too low to • Grape beneficiation warrant processing • Animal production: red & white meat • Lack of youth involvement • Development of up-stream Agriculture • Vandalism of infrastructure beneficiation • Irrigation schemes not operational • Aquaculture • Very little commercial farming • Vegetable production • Lack of knowledge and training • Illegal mining • Untapped mineral sources Mining • Skills required by large-scale mining • Demand for bricks and construction Kayamandi Development Services | EXECUTIVE SUMMARY ii SECTOR KEY CONSTRAINTS KEY OPPORTUNITIES operations and skill sets of local residents materials don’t match • Stone crushers • Little youth participation • Slate slab mining • Lengthy mining approval process • Mine services • No communication channels between mines • Skills harvesting centre & mining • Small-scale miners lack resources supply park • Lack of infrastructure at the Industrial Park • Revitalisation of industrial area • Poor service infrastructure maintenance (infrastructure upgrading) • Underutilised buildings • Food processing • Weak forward and backward linkages • Fresh produce distribution centre & • Small base – sector diversification needed market (showgrounds) Manufacturing • Leakage of buying power – manufactured • Health and beauty products (Moringa) goods need local buying power • Clay processing • Lack of skilled workers • Stone crushing • Textiles & clothing • Recycling activities • Informal trading spaces inadequate • Trade of seed, seedlings & fertiliser • Skills shortages • Expand retail sector (link with new • Limited capacity for local SMME Zebediela Plaza development) Retail and development • Establishment of wholesale outlets trade • Little local business co-operation and • Development of informal trade partnerships strategy • Stock sourced outside Lepelle-Nkumpi Local • Tourism related business Municipality • Upgrading of informal trading facilities • Highly competitive alternative destinations • Upgrade, promote and link nature • Lack of support for SMMEs reserves • Lack of accommodation facilities • Edu-tourism • Experiences don’t match expectations • Cultural tourism • Insufficient market research & planning • Adventure tourism Tourism information • Hospitality expansion • Official capacity at tourism level • Sport & community facilities • Lack of marketing upgrading • Existing facilities under utilised • Lack of maintenance and conservation • Transport sector forms bottleneck for • Establishment of a local business development: Poor access to villages database • Lack of coordination of freight transport • Mentorship programmes between emerging farmers • Branding of Lepelle-Nkumpi • Upgrading of roads and access to public Business transport services • Shortage of business services • Limited capacity for SMME development • Limited established business networks • Little local business co-operation and partnerships Kayamandi Development Services | EXECUTIVE SUMMARY iii Fortunately, drawn from this LED strategy is that an abundance of economic options and opportunities exist to unlock Lepelle-Nkumpi’s economic development potential. The LED framework to enable the LED unit and other role players and stakeholders to facilitate local economic development in a coordinated and structured manner is summarised as shown below: LED THRUSTS: Local business Restructuring Sustainable Mining sector Tourism support and and diversifying agricultural growth and development, and stimulus the informal expansion and maximisation sustainable town economy value adding along value- revitalisation development chains LED PROGRAMMES: Establish Capacity Sustainable District wide Tourism entrepreneurial building, farming practices mining service development and and small- mentorship, for emerging and product promotion business support skills training farmers and youth development Local marketing structures and youth Agro-processing support and promotion of Trade development industrial Mineral investment development Social capital development beneficiation opportunities Industrial renewal and Expansion of and processing Beautification strengthening improved diversification of Development of and clean-up access to existing joint ventures Carbon footprint external agricultural and new mining reduction markets products operations Detailed information regarding potential projects and development facilitation actions required for each programme listed above are provided. Priority projects and development facilitation focus areas have been prioritised through stakeholder consultation and through the use of a project prioritisation matrix required for the 5-year implementation plan of the strategy along with actions plans, timeframes, financial and other resource requirements, a financial plan, and a spatial plan. The prioritised project and facilitation actions are summarised hereunder: Kayamandi Development Services | EXECUTIVE SUMMARY iv THRUST 1: LOCAL BUSINESS SUPPORT AND STIMULUS Compile and maintain a Lepelle-Nkumpi gateway 2 opportunity database Conversion of the former ‘Basadi ba Bapedi’ facilities into a manufacturing incubator for small-scale manufacturers Revitalisation and infrastructure upgrading of the Lebowakgomo industrial area Zebediela plaza development support: facilitate and negotiate inclusion of informal retail facilities and identification of appropriate retail, services and entertainment facilities THRUST 2: RESTRUCTURING AND DIVERSIFYING THE INFORMAL ECONOMY Develop a mentorship programme through a database and network of experienced business mentors to support local emerging entrepreneurs within the relevant field Establish a local youth drop-in and development centre with a computer centre, mobile education programme and entrepreneurial & small business development support THRUST 3: SUSTAINABLE AGRICULTURAL EXPANSION AND VALUE ADDING DEVELOPMENT Attain funding and establish the Zebediela orange juice extraction and packaging plant Attain funding and establish goat meat and milk slaughtering, processing, packaging and marketing plant Develop a multi-purpose agricultural centre and distribution depot at the underutilised showground’s Roll-out and expand existing Moringa production and investigate beneficiation potential to produce health/medicinal and beauty products Develop fish farms at dams and in the irrigation canals THRUST 4: MINING SECTOR GROWTH AND MAXIMISATION ALONG VALUE-CHAINS Establish a skills harvesting academy/ ‘mining school’ to transfer applicable artisan and engineering skills to the local community Attain funding and establish small scale excavation and tile manufacturing of slate in Mafefe Formalise illegal sand mining and assist in obtaining permits Establish a Dilokong mining corridor producers forum or joint working group THRUST 5: TOURISM DEVELOPMENT, AND SUSTAINABLE TOWN REVITALISATION Attain funding and establish farm-based tourism & recreation opportunities linked to Zebediela citrus estate Establish accommodation and day visitor facilities at the MEC residence Revitalise Mafefe village camp and identify sustainable future uses such as youth camps and promotion of packaged deals Undertake an ‘invest in Lepelle-Nkumpi’ campaign through promotional brochures Trash-for-cash Kayamandi Development Services | EXECUTIVE SUMMARY v The existing institutional structure and framework has been evaluated and the proposed institutional structure and the most efficient organisational structure to enable implementation of the LED strategy is as follows: LED MANAGER Business support Agricultural officer LED investment
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