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District Profile Eastern Cape Amathole District Municipality (DC12)

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District Profile Eastern Cape Amathole District Municipality (DC12) Annexure 2: District Profile Eastern Cape Amathole District Municipality (DC12) Programme of Support to Local Economic Development in the Eastern Cape Eastern Cape Competitive Advantage Assessment And Training Support Project Produced by Melinda McCann For European Consultants Organisation (ECO) EC FRAMEWORK CONTRACT AMS/451 – LOT N°9 MISSION N°2005/109496 Contents 1 District Profile: Amatole District Municipality (DC12) ______________________ 1 2 The District Development Framework: Amatole District Municipality (DC12) ______ 7 2.1 Key Elements of Municipal Competitive Advantage ___________________ 7 3 The Local Development Framework: Mbhashe Local Municipality (EC121) _____ 10 3.1 Key Elements of Municipal Competitive Advantage __________________ 10 4 The Local Development Framework: Mnquma Local Municipality (EC122) _______13 4.1 Key Elements of Municipal Competitive Advantage ___________________13 5 The Local Development Framework: Great Kei Local Municipality (EC123) _____ 16 5.1 Key Elements of Municipal Competitive Advantage __________________ 16 6 The Local Development Framework: Amahlathi Local Municipality (EC124) _____ 19 6.1 Key Elements of Municipal Competitive Advantage __________________ 19 7 The Local Development Framework: Buffalo City Municipality (EC125) ________ 22 7.1 Key Elements of Municipal Competitive Advantage __________________ 22 8 The Local Development Framework: Ngqushwa Local Municipality (EC126) ____ 25 8.1 Key Elements of Municipal Competitive Advantage __________________ 25 9 The Local Development Framework: Nkonkobe Local Municipality (EC127) _____ 28 9.1 Key Elements of Municipal Competitive Advantage __________________ 28 10 The Local Development Framework: Nxuba Local Municipality (EC128) _______31 10.1 Key Elements of Municipal Competitive Advantage ___________________31 1 District Profile: Amatole District Municipality 1 (DC12) The Amatole District Municipality (ADM) occupies the central coastal portion of the province, bordered by the Eastern Cape districts of Cacadu, Chris Hani and OR Tambo, respectively to the west, north and east (refer to 1.3). The District extends over 23,577.11km2 and includes eight local municipalities, incorporating 21 former magisterial districts. ADM includes all former administrative areas of the Eastern Cape, namely former Transkei and Ciskei homeland areas and former Cape Provincial areas. The natural environment is similarly diverse, including moist mountainous, well-watered coastal and semi-arid Karoo, thornveld, succulent and thicket areas. The District includes part of the Wild Coast SDI and is home to Cwebe and Dwesa Nature Reserves, and extends inland to include mountainous areas, centred on the Amatola Mountain Range. The ADM is home to the second largest urban agglomeration in the Province, and only commercial river port city in South Africa, namely East London, as well as the Provincial capital city of King Williams Town associated with the Provincial administrative seat of Bisho, all falling into Buffalo City Municipality (BCM). East London, established as an IDZ in 2002, significantly impacts on the spatial and economic patterns that prevail in the District. The BCM is home to almost half (48.97%) of the District’s population and is the second most densely populated municipality in the Province, after the Metro. The sphere of influence of East London, together with Mdantsane (one of only two URP nodes in the province), stretches throughout the region, being overshadowed only by that of Port Elizabeth in the westernmost commercial farming areas of the District. Amatole is classified as a Category C2 municipality, indicating a largely rural character and low urbanisation rate, as well as limited municipal staff and budget capacity. Mbhashe, Mnquma and Ngqushwa are classed as Category B4 (rural, mainly subsistence), and Great Kei, Amahlathi, Nkonkobe and Nxuba as B3 (small towns, agricultural) municipalities, reflecting limited institutional capacity and areas characterised by small centres, limited SMMEs and market opportunities, dependence on public support and LED activities that are principally at the level of the small project. BCM is the only Category B1 (Secondary City) municipality in the province, reflecting relatively large budgets and staff, a well developed formal business sector and enterprises that have access to market supplied business services. In the Provincial context, the District is arguably the most diverse, ranging from highly urbanised (BCM, and Nxuba) through to overwhelmingly rural (Mbhashe, and Ngqushwa) and with a strong presence of sophisticated industrial development (BCM) as well as subsistence agriculture and underdevelopment. However, the dominant sectoral contributor to employment (38.91%) and GVA-R (36.72%) is government and community services. While this contribution varies considerably across local municipalities, all but Great Kei and Nxuba rely on government and community services as the main employer – 1 Sources: MDB 2003, Global Insight 2005, ECSECC 2002-2005, ECDC 2003, Department of Social Development 2005, Setplan/Ikhwezi 2000 Annexure 2: District Profile: Amathole District Municipality (DC12) 1 a situation not favourably linked with entrepreneurial activity. The dual economy of the District has contributed to the massive inequalities of human development – the HDI for the ADM is 0.52, ranging from 0.41 (Mbhashe) to 0.57 (BCM). The majority (68.49%) of the population live in households with an income below the poverty line and the District makes up more than one quarter (26.17%) of the Province’s poverty gap. Across the District, women are in the majority (52.55%) and IsiXhosa is the principal first language, spoken by the overwhelming majority (90.67%). Annexure 2: District Profile: Amathole District Municipality (DC12) 2 1.1. Baseline District and Local Municipal Statistics B4 B4 B3 B3 B1 B4 B3 B3 C2 Buffalo Nkonkob Amatole Categories 2004 Mbhashe Mnquma Great Kei Amahlathi City Ngqushwa e Nxuba DM 23,577.1 Area (km2) (MDB)2 3,030.47 3,323.31 1,735.64 4,266.21 2,515.98 2,245.79 3,725.32 2,734.40 1 1,881,30 Population (No.) 295,767 299,029 15,702 91,368 921,281 66,088 163,635 28,437 7 Urbanisation Rate (%) 0.49 13.41 48.08 27.66 65.69 1.58 26.01 71.17 39.51 Density (people/km2) 87.08 97.68 11.19 19.64 225.90 38.59 43.77 6.86 71.83 Black 99.87 99.57 88.97 94.97 85.98 99.49 96.10 73.70 91.95 Demograph White 0.04 0.21 8.23 3.50 8.74 0.30 0.98 6.93 4.76 ics (%) Coloured 0.07 0.11 2.68 1.50 4.71 0.20 2.87 19.28 2.98 Asian 0.02 0.11 0.12 0.04 0.57 0.00 0.05 0.08 0.30 Female 55.09 53.91 51.05 51.67 51.68 52.67 51.10 51.61 52.55 Gender (%) Male 44.91 46.09 48.95 48.33 48.32 47.33 48.90 48.39 47.45 0-4 13.58 11.53 8.92 9.38 8.49 9.27 8.25 8.17 9.82 5-19 40.50 39.05 31.80 33.68 28.99 35.51 33.33 31.11 33.29 Age (%) 20-64 38.79 42.82 52.61 49.51 57.19 46.55 50.51 53.40 50.59 65+ 7.12 6.60 6.68 7.42 5.33 8.67 7.90 7.31 6.30 HDI 0.41 0.49 0.43 0.49 0.57 0.44 0.48 0.48 0.52 HIV Prevalence (%, 2003) 3 27.10 Functional Literacy (%) 44.24 63.19 46.67 59.89 74.11 54.77 64.61 59.54 66.14 Education None 19.21 8.82 18.61 9.13 6.19 11.31 6.72 8.86 8.84 Levels Grade 12 6.01 11.36 9.79 11.63 18.74 9.04 16.49 11.87 14.89 (% age 15+) Tertiary 3.38 5.18 3.86 4.96 7.68 3.77 6.62 5.90 6.31 Household R0-200 11.07 7.31 9.14 8.16 4.50 9.13 7.92 7.99 6.61 Monthly R201-1000 38.05 31.94 35.15 31.97 20.95 36.16 34.58 32.85 27.64 2 Municipal Demarcation Board – Global Insight’s geographic areas used for other categories for internal integrity 3 EC Department of Health Annexure 2: District Profile: Amathole District Municipality (DC12) 3 B4 B4 B3 B3 B1 B4 B3 B3 C2 Income R1001- Levels (%) 2500 24.74 29.65 26.41 27.59 28.73 30.71 28.60 26.60 28.24 GDP-R per capita (R'000)4 2.65 5.90 7.50 6.45 19.76 4.96 6.87 8.65 12.31 Unemployment (%)5 78.51 68.00 37.99 60.22 47.26 79.25 67.61 55.97 55.06 Dependency Ratio 5.10 3.84 2.27 2.28 1.60 2.81 2.56 1.96 2.30 Financial Grant Dependency6 57.66 49.68 58.32 13.82 50.37 60.59 31.39 110.66 Access to Water 8.10 25.44 56.70 45.46 78.06 41.01 53.55 77.88 53.74 basic Sanitation 25.32 45.58 32.77 81.73 86.32 85.94 75.94 41.40 68.74 services Electricity 15.65 33.51 71.29 67.23 63.27 69.15 76.66 80.03 54.76 (% Refuse 4.23 18.97 21.88 17.24 72.68 3.17 25.67 63.14 42.05 Household s, 2001) Housing 96.41 89.10 89.96 93.01 70.05 95.09 89.80 83.88 81.97 4 GDP by Region (GDP-R) at Current Prices 5 Expanded definition 6 % of municipal 2002/03 budget constituted of grants/subsidies and transfers/allocations Annexure 2: District Profile: Amathole District Municipality (DC12) 4 1.2.
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