Umkhanyakude Development Agency Strategic Plan 2019-2024

UMKHANYAKUDE DEVELOPMENT AGENCY STRATEGIC PLAN 2019-2024

UMDA STRATEGIC PLAN 2019-2024

TABLE OF CONTENTS 1. INTRODUCTION ...... 2

1.1. BACKGROUND ...... 2

1.2. THE MANDATE OF UMHLOSINGA DEVELOPMENT AGENCY ...... 3

2. THE STRATEGIC PLAN 2019-2024 ...... 4

2.1. CHALLENGES AND OPPORTUNITIES FOR THE NEXT 5 YEARS ...... 5

2.2. VISION, GOALS AND OBJECTIVES ...... 9

2.3. GUIDING PRINCIPLE ...... 10

2.4. CATALYTIC PROJECTS AND ACTIONS ...... 11

3. IMPLEMENTATION STRUCTURES ...... 20

3.1. ORGANISING FOR IMPLEMENTATION ...... 20

3.2. FUNDING MODEL ...... 21

3.3. BRANDING ...... 22

3.4. OFFICE SPACE REQUIREMENTS ...... 22

4. SUMMARY AND CONCLUSION ...... 22

ANNEXURE: SUMMARY OF WORKSHOP DELIBERATIONS ...... 24

THE PURPOSE OF THE WORKSHOP ...... 24

ALIGNMENT OF PLANS NATIONAL DEVELOPMENT PLAN, PROVINCIAL GROWTH AND DEVELOPMENT PLAN AND DISTRICT GROWTH AND DEVELOPMENT PLAN ...... 24

CORRIDOR DEVELOPMENT ...... 28

ROUTE 22 TOURISM DEVELOPMENT INITIATIVE ...... 29

FUNDING OF DEVELOPMENT AGENCIES AND CATALYTIC PROJECTS ...... 31

AGRI-BUSINESS DEVELOPMENT...... 32

MKHUZE AIRPORT AND THE KZN REGIONAL AIRPORTS ...... 32

ROLE OF DEVELOPMENT AGENCIES ...... 33

KEY RECOMMENDATIONS BY THE WORKSHOP ...... 34

1 UMDA STRATEGIC PLAN 2019-2024

1. INTRODUCTION 1.1. BACKGROUND uMhlosinga Development Agency (UMDA) was established by the uMkhanyakude District Municipality in 2004 as a municipal entity to support the uMkhanyakude District and its Family of municipalities with catalytic local economic development initiatives. UMDA is solely owned by the uMkhanyakude District Municipality. The establishment phase was mainly supported by the Industrial Development Corporation. At this time UMDA was given two key projects by the shareholder (uMkhanyakude District Municipality) the Mkhuze Airport and the Jozini Hydro Electronic project.

This report presents the 5-Year Strategic Plan of the uMhlosinga Development Agency (UMDA). UMDA has been in operation for almost 13 (thirteen) years and during this time built up a significant portfolio of projects and plans.

2004 - 2008 Registration of Entity and Consultations 2008 - 2013 Establishment, Operations & Conducting Feasibility Studies for Mkhuze Airport and Jozini Hydro 2014 - 2018 Unpacking Potential of Key Economic Drivers, Introducing Systems, Testing of Business Models and Implementation of National Schools Nutrition Project and opening markets for farmers, Mkhuze Airport and expanding on the Tourism potential 2019 - 2024 Implementation of Catalytic projects for local economic development

UMDA STRATEGIC PLAN 2019-2024

The 2019 – 2024 Strategy

The strategy was largely formulated during the two-day strategic planning workshop that was held on the 19th and 20th of March 2019 at the Meet Mekaar Resorts. The strategy is also based on the preceding strategies and business plans of the UMDA but more importantly on the contextual District Municipality’s strategic plans and the Provincial Growth and Development Strategy and National Development Plan.

Towards the end of 2018, a new Board of Directors was appointed and a change in the management leadership took place. These changes created the impetus to review the previous strategies, business plan and operation structures of uMhlosinga to the extent that the intention of the two-day workshop was to completely overhaul the future plans of the UMDA and the way in which it was operating.

During the course of the workshop, discussion sessions were undertaken to stimulate debate around the role of UMDA in both its internal and external environment. The objective of these discussions was to identify the key focus areas for the Development Agency and to direct its institutional structures accordingly. The key topics and themes discussed during those two days were the following: o Report on the UMDA’s 2014-2019 Strategy o Review of the Vision and Mission Statement o Formulation of the 2019-2024 Strategic Plan. o Risk Identification and o Key recommendations

1.2. THE MANDATE OF UMHLOSINGA DEVELOPMENT AGENCY

Section 23 of Local Government Municipal Systems Act, 2000 (Act 32 of 2000) requires from uMkhanyakude District Municipality to strive to achieve economic growth and development. uMkhanyakude District Municipality established uMhlosinga Development Agency (Pty) Ltd (Reg No 2004/016608/07).

Page 4 of the Service Level Agreement (SLA) between the UMDA and the uMkhanyakude District Municipality stipulates the mandate as follows:

“UMDA has been formed and incorporated as a Municipal Entity for the express and sole purpose of assisting the Municipality to achieve global standards for social and economic growth and development for all within the area of jurisdiction of the UMKHANYAKUDE DISTRICT MUNICIPALITY”

uMkhanyakude District Municipality intends to realise the above through the UMDA in the following manner; a) Maximizing opportunities within the area of jurisdiction of the Municipality; b) Gearing financial resources; c) Employing the municipal assets, including land in a productive way; d) Promote public/private partnerships; e) Planning and implementing economic and social projects identified by the Municipality; f) Market and promote economic opportunities within the jurisdiction of the Municipality and g) Providing business support services to those within the area of jurisdiction of the Municipality.

UMDA STRATEGIC PLAN 2019-2024

Roles and responsibilities of the UMDA (SLA page 6)

• Promoting sustainable commercialization of agriculture and establishment of agribusiness industries in the district, including the establishment, conduct and control of fresh produce markets and abattoir serving the area of the district. • Promoting local tourism route 22 tourism programme, the conceptualisation and development of world tourism development nodes the establishment, conduct and control of tourism skills development programme. • Establishing, conducting and controlling the Jozini Hydro Electric Plant, including promoting other renewable projects. • Establishing, developing, conducting and controlling the Mkhuze Regional Airport and its prescient, including all other municipal airports serving the area of the district municipality. • Developing infrastructure that promotes economic development by setting up a project management unit. • Developing the district cities and/or towns by implementing CBD renewal and development initiatives focusing on urbanisation and industrialisation. • Promoting the involvement and development of all tiers of business including SMME’s, large businesses and other investors, project implementation and especially in high priority sectors. • Enhance entrepreneurial skills, skills development and matching the skills local force within the local economic needs. • Promoting and developing business effectiveness and competitiveness, business retention and renewal, attracting new business and promoting investment in all economic sectors. • Implement any other project identified in the LED Strategy, Integrated Development Plan and any other strategy or program that the Council of the Municipality deems necessary from time to time.

2. THE STRATEGIC PLAN 2019-2024

Strategic Planning is a management activity undertaken by an organisation for the purpose to establish priorities, strengthening and building the organisation towards achieving common goals whilst responding to a changing business environment. This section of this report communicates the challenges and opportunities, guiding principles, vision and goals of the Development Agency that were developed during and after the planning workshop.

Day 1 of the workshop covered the discussion around the Mandate of the UMDA as a development UMDA. The mandate was unpacked and discussed broadly in particular to the deliverables as anticipated by the Parent municipality. Later on, the day, the Acting CEO presented a Report on the UMDA’s 2014 - 2019 Strategy covering the following sectors: Agribusiness Development and Tourism Development. These sectors were discussed for the most part of the day since they are appearing to be the most prominent sectors in the District’s local economic development (LED).

Day 2 of the workshop began with the discussions on the report on the UMDA’s 2014 - 2019 Strategy review presented by the Acting CEO assisted by the Facilitator, which was to contribute towards the formulation of a strategy that will guide the Development Agency for the next 5 years. Discussions revolved around the key sectors which included Infrastructural Development, Urbanisation and Industrial Development and Institutional Development. The presentation covered legal framework, strategic interventions, programmes, proposed catalytic projects and stakeholder’s management.

UMDA STRATEGIC PLAN 2019-2024

A traditional approach to a strategic planning process is based on the following diagram which was adapted to formulate the strategic plan of UMDA. This plan however does not contain the business and operational plan components of the full planning cycle. Those plans will be developed internally by UMDA following the adoption of the Strategic Plan.

1. SITUATION ANALYSIS

6. 2. SWOT OPERATION ANALYSIS AL PLANS

3. VISION 5. BUSINESS AND PLAN MISSION

4. STRATEGIES

2.1. CHALLENGES AND OPPORTUNITIES FOR THE NEXT 5 YEARS

Since its inception in 2004 the UMDA has sought to achieve macroeconomic development in the uMkhanyakude District. In its endeavour to achieve this goal UMDA is faced with certain challenges such as the development of new innovative projects and accessing available funding. Opportunities exist within UMDA’s operating environment and it is crucial to learn how these opportunities can be leveraged within the next 5-year period. The participants of the workshop identified challenges and opportunities facing the development agency, and impede the growth and success of the organisation. Most of the challenges and opportunities growth and success of the organisation. Most of the challenges and opportunities identified are interrelated. These are listed below:

2.1.1. RELATIONSHIP WITH PARENT MUNICPALITY

In line with Section 93D of the Local Government: Municipal Systems Act of 2000, uMkhanyakude District Municipality resolved to delegate the Portfolio Chairperson of the Community, Planning and Economic Development and the Head of Department thereof to be Council Representatives in all UMDA Board meetings. Furthermore, UMDA reports in accordance with the Municipal Systems Act, Company’s Act of 2008 and Municipal Finance Management Act of 2003 to ensure compliance.

Over and above regulated relationship between municipal entity and parent municipality, the relationship needs to be managed as it can cause non-compliance. The relationship between UMDA and uMkhanyakude District Municipality has revived over the year. The relationship between the UMDA Board and the District Municipality as its shareholder was not properly structured and clear and concise role for the board was lacking.

UMDA STRATEGIC PLAN 2019-2024

In order to improve the relationship, there is need for structured meetings with Parent Municipality, clarification of roles and responsibilities in the Local Economic Development space and participation by the UMDA in the uMkhanyakude District Municipalities Council meeting, structures and verse versa where the uMkhanyakude District Municipality is required as a parent municipality.

2.1.2. NO CLEARLY IDENTIFIED SERVICE MANDATE

The UMDA’s mandate as discussed in page 3 and 4 of this document presents some challenges for the UMDA. One of the more serious problems that UMDA has faced over the years was that there was no clear definition or understanding of the functions and services that it is to provide. UMDA’s mandate is clearly defined in the SLA, however, implementation becomes a challenge. Defining of roles and responsibilities between the uMkhanyakude District Municipality, Family of Municipalities and UMDA has over the years been a challenge. Whilst the mandate given to the UMDA is clear on paper, the same cannot be said when it comes to implementation.

The World Bank (2014) defines Local Economic Development (LED) as a process by which public, business and non-governmental sector partners work collectively to create better conditions for economic growth and employment generation, with the aim of building economic capacity of a local area to improve its economic future and the quality of life for all.

LED as an applied economic development strategy, seeks to address site-specific needs through locally appropriate solutions. Although there are many definitions of LED, they all are permutations of the same theme, with the core tenet of LED, being to induce economic development and growth in a locality with the objective of creating jobs and improving the quality of life for everyone by realizing a locality's full comparative advantage.

LED requires a high degree of co-operation between the public and private sectors, and local communities. The role of the public sector is often to create an environment conducive to LED, including infrastructure development. However, without the involvement of all parties, interventions are unlikely to succeed.

For UMDA to be fully effective and realise its mandate, there is need for continuous dialogue with primary stakeholders involved in LED. uMkhanyakude District Municipality and its Family of Municipalities should take advantage of having a special purpose vehicle for LED.

2.1.3. UNSUSTAINABLE FUNDING OF UMDA

UMDA’s operational budget is funded by the uMkhanyakude District Municipality leaving a gap for capital project funding for it to carry out its mandate. UMDA engages stakeholders, mainly government departments and financial development institutions for capital project funding. The process of engaging departments and entities is lengthy, complexed and unsustainable. UMDA does not have income generating projects or activities expect for landing fees at the airport and other small income which may be received as return on investment. In an attempt to sustain UMDA, the development agency has introduced a project management fee ranging between 5% to 10%.

UMDA faces a risk of being unable to sustain its operations since it is grant dependent instead of generating its own income. The UMDA is generally experiencing a challenge in accessing funding which should normally be readily available and accessible to it. The main challenges in this respect relates to

UMDA STRATEGIC PLAN 2019-2024 its historical choice of projects and its ability to motivate funding through proper feasibility studies and well-prepared business plans.

With regards to financial control systems, UMDA is complaint and has governance structures for financial reporting through the office of the Chief Financial officer, Chief Executive Officer, functional internal audit, audit committee and Board of Directors. UMDA is using sound accounting principles. Thus, UMDA had received unqualified audits over the years.

2.1.4. UNLOCKING LAND FOR DEVELOPMENT

The UMDA is experiencing difficulty in accessing land for its developmental projects. This is mainly because UMDA or the parent municipality both do not own any land. Large portion of land within the district is owned by the Ingonyama Trust Board (ITB). This has the impact that all projects identified first needs to deal with gaining access to land and the problems related to it. Communally-owned land has problems with lack of security of tenure and hence a disincentive to investors.

The alignment of a single spatial development vision across the district including the local municipalities will assist UMDA in unlocking land more easily. UMDA will then be able to develop the specialist resources necessary to access land better. The UMDA can then develop and manage its capabilities to data management, aerial photography, cadastral data, ease of accessibility of data and information management.

2.1.5. INTERNAL OPERATIONAL CONSIDERATIONS AND STAFFING OF UMDA

UMDA employs thirteen (13) full time staff members, which is an improvement to the last strategy. Nonetheless, there are critical positions that are still vacant. These include the Human Resources Manager and Fundraising Officer/ Manager in the short term. Management meetings are well structured and occurring as scheduled on a regular basis and project progress reporting is taking place. However, there is still a need to beef up staff capacity to be able to market and promote investments both locally and abroad.

The offices of UMDA are located in Mtubatuba which is far from its Parent municipality, and therefore, contributes to the disconnection that exists between the two organisations. The current office space is also rather small and does not allow for the future growth of the organisation.

Internal UMDA policies are in place but mainly for compliance purposes only and they contribute little to the effective management and operations of the organisation. There is no annual review of policies and no effective supply chain management policy is in place. A review and alignment of all policies is required.

2.1.6. DEVELOPMENT OPPORTUNITIES

The uMkhanyakude District Municipality’s Integrated Development Plan present a huge demand for LED. The area is one of the poorest districts in the province and in the country, with most of the land being virgin land.

A large number of development opportunities have been identified and developed over the years and new ones are continuously being identified. Most of the economic and project opportunities that have

UMDA STRATEGIC PLAN 2019-2024 been identified relates of the extensive natural resource base of the District and also its need for infrastructure and settlement development. The most important of the recently listed opportunities are:

Business Unit Key Sectors Targeted Areas Agribusiness Fruits & Vegetables (including nuts) Makhathini area Fish farming (Khosi Bay / False Bay) Ndumo area Forestry (TMM / Dukuduku) uMhlabuyalingana area Poultry & Livestock Hluhluwe / Mtubatuba / Big 5 Game Farming (Hlabisa / Ndumo) False Bay area Medicinal Plants (Mkuze / Dukuduku

Tourism Tourism nodes/ Resorts District-wide (accommodation; activities; • Sub-route 1: R618 Mtubatuba – St Lucia attractions) • Sub-route 2: R618 Mtubatuba – Hlabisa & Skills development Hluhluwe Events • Sub-route 3: N2 Mtubatuba – Jozini (Nkonkoni Turn-off) • Sub-route 4: R22 Hluhluwe to Kosi Bay • Sub-route 5: N2 Jozini/Nkonkoni Turn-off to Phelandaba Property Designation of sites/zonings/provision of services so Mkuze (Non-Aviation section) as to promote: Mkuze Airport City Development) Industrial development Jozini Industrial Zone Business development (Offices) Manguzi Industrial zone Commercial developments Mtubatuba Industrial Zone Residential developments Hlabisa Industrial Zone Infrastructure Airports Mkuze Airport City and Special Biomass plant (Fuel/Gas/Electricity) Development Projects Hydro electricity Upgrading of Local Airfield Wind energy Jozini Hydropower scheme Solar Energy TMM Biomass Plant In-pipe turbines Solar Plants at sub-stations Wave energy Wind farm on mountains and Sanitation Along the coastal areas

UMDA STRATEGIC PLAN 2019-2024

2.2. VISION, GOALS AND OBJECTIVES

Based on the above analysis of the challenges and opportunities for UMDA, the following Vision, Goals and Objectives of UMDA have been developed. The Vision, Goals and Objectives are related to that of the uMkhanyakude District Municipality. In this respect the Vision of the uMkhanyakude District is:

“A renowned District Municipality through excellence in service delivery by 2035”

In support of this Vision the following statement is quoted from the uMkhanyakude District Growth and Development Strategy:

“The district economy has consistently grown by more than 5% per annum since 2014 and this growth resulted in the creation of decent employment opportunities reducing the unemployment rate in the district by more than 50%, resulting in significant increases in average income levels. The skills base of the district labour force improved continually since 2014 and the proportion of workers with tertiary education exceeds the average of the province. The agricultural sector in UKDM is recognised as one of the food baskets of Southern Africa and numerous agricultural and forestry processing facilities have been established in the district. The district is internationally recognised for the diversity of its tourism attractions and by 2030 annually attracts visitor numbers approaching that of South African tourist icons such as Table Mountain and the Kruger National Park. The land reform programme has been implemented successfully and created various employment opportunities in the agricultural and tourism sector”.

The uMhlosinga Development Agency Vision follows from that of the District and is:

“To be the reliable economic development Agency that facilitates economic development and investments in the uMkhanyakude District”

The Mission of UMDA is to co-ordinate, plan and manage the implementation of a locally driven program of catalytic projects, to fast track the development of the local economy of the district of uMkhanyakude.

The Goals of UMDA that flow from the Vision and Mission Statement and based on the mandate of the development agency are as follows:

1) To promote sustainable commercialisation of agriculture and establishment of agri-business industries in the district; 2) To develop a world class tourism sector; 3) To develop settlements that promote urbanisation and industrialisation; 4) To promote entrepreneurial development, developing business effectiveness and competitiveness, business retention and renewal, attracting new business and promoting investment in all economic sectors 5) To develop world class catalytic infrastructure that promotes economic development; 6) To develop institutional capacity of UMDA, at all levels, with the capacity to effectively implement and raise funds for catalytic projects and operational needs.19

UMDA STRATEGIC PLAN 2019-2024

The Goals are further unpacked into Objective Areas as is indicated in the table below.

GOALS OBJECTIVE AREA

1.1 Permaculture 1. Agriculture and Agri-business 1.2 Commercial Farming Development 1.3 Agribusiness Development 1.4 Exports 2.1 Product Development 2. Tourism Development 2.2 Destination Marketing 2.3 Research and Knowledge Management 2.4 Skills Development 3.1 Commercial air transport 3. Develop Infrastructure and Green 3.2 Renewable Energy Economy 3.3 ICT Infrastructure 3.4 Waste Management Programme 4. Urbanisation and Industrialisation 4.1 Urban nodal development Development 4.2 Rural land development 5.1 Establishment of SMME One Stop Shop 5.2 Establishment of SMME Unit within UMDA 5.SMME Development and Support 5.3 Provide necessary training & capacity building to SMME 5.4 Development of SMME Strategy for UMDA 6. Institutional Development 6.1 Human Resources 6.2 Finance 6.3 Corporate Governance

In implementing the Goals and Objectives, UMDA will be providing “consulting services” such as undertaking feasibility studies; preparing business plans; undertake environmental and planning studies aimed at gaining the required approvals; prepare funding applications and put project and programme management systems in place when and where required.

2.3. GUIDING PRINCIPLE

The following guiding principles have been developed and are the foundation for decision making in UMDA. It informs how the UMDA is to prioritise and select its projects and assess its progress. The guiding principles are:019

1) The nature and extent of the employment and income generation ability of the economic sustainable interventions identified; 2) The nature and extent of external and internal, public and private sector investment that the intervention can attract; 3) The multiplier impact of intervention through the creation of new and additional backward and forward linkages within the District; 4) Building the capital asset base (economic infrastructure) of the District on which further future interventions can be built; 5) Building the entrepreneurial, SMME, cooperative and small informal economic base capacity of the District;

UMDA STRATEGIC PLAN 2019-2024

6) The ability of the interventions to empowerment of youth, women and vulnerable groups and the contribution of the intervention towards poverty eradication; 7) The ability of the intervention to advance further business management principles also making allowances for UMDA to generate an income for future investment and funding operations.

The application of the Guiding Principles to project selection will lead to the identification of a multi- dimensional portfolio of projects rather than a simplistic listing of priority projects. This will assist UMDA to strategically plan its economic interventions to deliver different impacts at different time- scales and with different risk profiles. This is best illustrated in the following diagram that shows how UMDA will identify its strategic interventions in the District.

2.4. CATALYTIC PROJECTS AND ACTIONS

Based on the strategic framework of Goals and Objective, UMDA is in the process of developing a Master Plan of catalytic projects and actions to lead to the development of the District. The purpose of the Master Plan is: o To provide a projects implementation master plan for the district up to 2035; o To provide maps for different sectors and targets; o To provide 3D models and costing of these projects; and o To obtain buy in from the District, Local Municipalities and other departments and agencies working in the area o To create 100 000 jobs by 2035 and to facilitate investments of more than R 5 billion into the district economy

In assessing the projects and action plan UMDA will implement a Process Flow programme to identify the catalytic projects and actions and, package them to ensure that a variety of interventions are planned to deliver on a sustainable basis. Additional projects to be approved by the Board, through the pre-approved selection criteria (Matrix).

UMDA STRATEGIC PLAN 2019-2024

PROCESS FLOW PROCESS

The immediate projects and actions that UMDA will be focusing on are listed below. This list of projects and actions will be reviewed and updated on a regular basis together with its Board and with its shareholder, the uMkhanyakude District Municipality. The list relates to the strategic Goals and Objectives areas identified:

AGRI-BUSINESS DEVELOPMENT, AGRO-PROCESSING AND COMMERCIAL FARMING

TOURISM DEVELOPMENT

ECONOMIC INFRASTRUCTURE DEVELOPMENT AND GREEN ECONOMY

URBANISATION AND INDUSTRIALISATION DEVELOPMENT

SMME DEVELOPMENT AND SUPPORT

INSTITUTIONAL DEVELOPMENT

Each of the strategic Goals and Objectives areas are unpacked in more detail in the following sections.

UMDA STRATEGIC PLAN 2019-2024

2.4.1. AGRI-BUSINESS DEVELOPMENT, AGRO-PROCESSING AND COMMERCIAL FARMING

Makhathini Development

The purpose of the Makhathini Development Programme is to support and facilitate the commercialisation of Mjindi through the expansion of the Scheme. The programme will also focus on the establishment of a sugar mill and facilitate 20 000 ha of sugar cane growing areas. This entails the development of farms along the Pongola flood plain and accessing markets and developing associate agri-business opportunities. UMDA has signed agreement with government participating under the RASET programme and will offer markets to farmers within the district. The principals of equity and equality will be key to selection of farmers supplying these markets in each year.

District Wide Agricultural Projects

UMDA will support and facilitate the commercialisation of agriculture in the district by promoting the processing of agricultural and forestry products and support the establishment of Agriparks. It is envisaged that agro-processing companies will be established to promote value-addition on the following types of products; livestock, diary, fish, groundnuts, sugar cane, cotton, timber, vegetables, fruits and game. UMDA will work together with the KZN Agricultural Development Agency (ADA) to develop markets and further agribusiness opportunities.

Dairy production and processing programme

UMDA have signed a contract with the Department of Education to supply amasi to schools in uMkhanyakude District participating in the National Schools Nutrition Programme. This has created an opportunity to develop dairy farmers within the district. UMDA wants to take advantage of this opportunity and establish an Amasi production plant. Farmers will be expected to produce milk and sent to the amasi production centre. UMDA will also have to use different incentives to promote the establishment of dairy farmers who will supply the processing plants through an out-grower supply scheme.

Livestock commercialisation programme

In the uMkhanyakude District Municipality, livestock production has been identified as one of the key sectors crucial for economic growth. However, in order to stimulate economic growth, the sector needs to be commercialised. Commercialization of smallholder farming systems through active participation of farmers in cattle markets has the potential to transform rural economies. Commercializing smallholder livestock systems leads to increased productivity and improved quality of produce, thereby contributing to improved incomes. Thus, participation of smallholder cattle farmers in livestock markets has the potential to turn smallholder farmers into specialized, market-oriented farming systems. Realising the potential catalytic effects of commercialising livestock markets, the local government and other stakeholders wish to commercialise livestock production through the establishment of the Bhambanana Abattoir as a long-term strategy to stimulate economic growth in the district. Therefore, uMhlosinga Development Agency will request the Department of Agriculture, Forestry and Fisheries, KwaZulu-Natal to manage the newly established abattoir in Bhambanana as part of the government initiative to uplift rural households in uMkhanyakude through livestock production. Since investment in the abattoir requires substantial budgets, proper economic, ﬁnancial and production analysis is required to ensure sustainability of the programme. Thus, making the abattoir operational is meaningful if

UMDA STRATEGIC PLAN 2019-2024 preceded by a feasibility study and an assessment of risks and uncertainty and a comprehensive model to integrate the various components of the commercialisation programme. Thus, UMDA has developed an agribusiness plan is to serve an inside (operational) plan and assesses the financial and market feasibility of managing the Bhambanana abattoir and its associated commercialisation programmes.

Ndumo Canning Facility

The aim of the project is to establish a successful packaging facility that will add value to produce for farmers in the three cooperatives namely Khula, uMnotho-Phansi and Sicabazini. IDC has provided funding to the development Agency for the purposes of carrying out the project. The main duty of UMDA is to assist the three primary cooperatives to form a secondary cooperate and to assist the secondary cooperative to procure a canning facility for the benefit of farmers in the three cooperatives. The expected end product of this assignment will be a registered secondary cooperative that will operationalize the canning facility to assist farmers with value addition to their products to earn more incomes and explore more marketing options. uMkhanyakude Virtual/Online Fresh Produce Markets

With the aim of commercialising agriculture and spearheading economic development in the uMkhanyakude District, uMhlosinga Development Agency (UMDA) wishes to establish and manage the UMKFP market with the aim of bridging the gap between farmers and consumers, thereby providing a stable market for smallholder farmers in uMkhanyakude. Thus, the development agent wishes to stimulate agricultural growth by establishing the UMKFP as an outlet where farming households can sell their surplus produce and earn income to buy food; and secondly, as a supplier to informal fresh produce marketers or so-called “hawkers”, who earn a living by selling their produce in the cities and townships.

The National Schools Nutrition Programme

With the aim of commercialising agriculture through improved access to markets in the uMkhanyakude District, uMhlosinga Development Agency (UMDA) will be managing smallholder farmers in uMkhanyakude to supply fresh produce to the National School Nutrition Program. Thus, the development agent has entered into an agreement with the Kwazulu-Natal (KZN) Department of Education (DoE) for the National Schools Nutrition Program (NSNP) within UMkhanyakude District Municipality. This agreement provides a predictable and secure supply contract to the program, ensuring sustainable efficiency, such that participating schools are guaranteed provision of nutritious meals, and participating co-ops benefit from reliable access to agricultural markets.

2.4.2. TOURISM DEVELOPMENT

Route 22 and Tourism Nodes Development

UMDA has undertaken substantial research and consultation in to the development of tourism facilities in the District. Through Route 22, UMDA has taken a stance to develop tourism nodes. A tourism node refers to an area/ cluster of tourism services and other related services designed and developed in a way to attract more visitors and keep them in one area. Such activities may include accommodation; eating outlets/ restaurants/ tourism attractions/ recreational parks/ shopping centres/ residential properties.

UMDA STRATEGIC PLAN 2019-2024

Such developments stimulate multiple-effects in terms of economic growth e.g. building a hotel will result in further developments like; shops, curio shops, butcheries, etc.

The objective of these programmes is to promote investments into tourism products and facilities within the identified nodes. Components of the programmes are to: o To promote investment into associated retail and residential developments within these nodes o To plan, obtain planning approvals, EIA and land tenure rights prior to investment promotion o To ensure provision of adequate and a variety of tourism products/ facilities and activities to encourage tourists to extend their length of stay within the district

The tourism Nodes identified are: o Lake Sibaya o Cecil Marks Pass/Nkungwini o Hlabisa

Skills Development

The district faces a challenge when it comes to tourism skills and yet the largest employer in the district is the tourism sector. On the other hand, UMDA must make sure that its people are properly skilled in order to be able to benefit from opportunities that might arise in as far as tourism is concerned. This will ensure that the economy stays within the district and the province, however, contributing largely on the country's GDP. With very limited financial resources, UMDA cannot be able to implement training programmes on its own but could partner with organisations or departments with similar interest.

UMDA shall embark on tourism skills development in two phases: Phase 1: offering of training programmes on scarce skills as identified by the SETA Phase 2: establishment of a tourism training centre

The key objectives of this programme are to: o Partner with established players in the field. o Promote the development of Africans into managerial positions. o Support and supply the tourism nodes with skilled employees.

Tourism Destination Marketing

Events To promote the district as an events friendly district but also to promote tourism through events. There is a broad spectrum of events that the district can profile and host ranging from culture, sports; arts and craft; business conferencing, etc.

On the other hand, to promote Route 22 and the district as a tourism destination, UMDA needs to be able to promote Route 22 at various tourism consumer and trade shows e.g. Africa’s Travel Indaba; Outdoor Getaway Show, etc.

UMDA STRATEGIC PLAN 2019-2024

Fam Trips From time to time, UMDA needs to host familiarisation trips to media and relevant tour operators and agents.

Tourism Awareness Community tourism awareness programmes

Research and Knowledge Management

As a development institution, UMDA shall be able to provide tourism statistics to inform any tourism development planned for the area. UMDA shall:

1) Create and maintain a tourism research and knowledge management system 2) Analyse and provide tourism statistics of the district

2.4.3. DEVELOP INFRASTRUCTURE AND GREEN ECONOMY

Mkhuze Airport

To develop a 76 Ha plot into a regional airport and a vibrant multi-use non-aviation precinct, with a shopping centre, a hotel, conference facility, hangars, offices and residential apartments. The project is based in Mkhuze under Jozini Municipality. It is estimated that between 1 000 and 5 000 permanent jobs will be created. R 100 M is required for the aviation section while R 500 M will be required for the non- aviation precinct.

The Mkhuze Regional Airport, with the financial backing of the KwaZulu Natal Department of Economic Development, Tourism and Environmental Affairs (EDTEA), has completed the 1.8 km runway rehabilitation which its second priority project following the fencing of the aviation precinct during the 2016/17 financial year. The support from EDTEA has also yield to more positive results as the terminal building has commenced project engineers have been appointed and a final design concept being approved by the Mkhuze Airport City Development Steering committee. The construction of the terminal building and fencing of the air side is anticipated to commence in May 2019 as the Contractors have been appointed for construction.

Jozini Hydro Electric Project

To develop a Hydroelectric project on the Pongolapoort dam wall generating between 5 and 10 Megs. Electricity will be sold back to the grid. The project is based at Jozini Dam wall, Jozini Municipality. About 10 direct jobs will be created. The project requires an investment of R 250 M. Feasibility studies done and only the EIA, water use licence, technical designs and capital required.

District Broadband Rollout

To develop a district wide broadband infrastructure, including fibre optic lines and towers, in order to facilitate easy access to eco ICT systems and access to internet. The project will cover the whole district. About 1 000 temporary jobs will be created during construction. Total investment required will be R 500 Million, while R 5 M is already provided by IDC. Thorough the funding of the IDC, a feasibility report and

UMDA STRATEGIC PLAN 2019-2024 business plan has been finalised. The feasibility report deemed the project feasible, however, the financing model needs to be discussed further. It proposed roll out of the project by government through the IDC and subsidising user as most of the population are previously disadvantaged in the district.

The project has great economic spin off as the education sector, health and business are key beneficiaries of the programme. With the fourth industrial evolution, the uMkhanyakude District is not excluded in these vast changes, businesses need to complete a regional, provincial, national and even global space through the support of this programme.

Waste Management Programme

To develop a district wide waste management programme, based on two mega plants fed from town- based transfer stations in order to maximise economies of scale through possible gas and/or electricity generation capacity. This is a district wide project with the two mega plants based in the north and the south of the district. About 1 000 jobs will be created. Investment required will initially be R 1 Billion. An investment for feasibility study and business plan is required.

2.4.4. URBANISATION AND INDUSTRIALISATION DEVELOPMENT

Small Town Rehabilitation and Development

The objective of this programme is to rehabilitate and beautify the existing targeted six towns in the District. It is also the intention to identify about three industries per town that would drive development which will lead to the planning and implementation of a town development plan in line with vision 2035. The programme is aimed at addressing the physical structure of the urban/rural centres, this will promote functionality within the broader municipal economy. To promote an urban structure that will respond to the needs of the urban/rural centres, including accommodating clarity for infrastructure requirements; and to promote the local economic development of the area whilst respecting the ecological and environmental sensitivity, attract and leveraging public and private investment.

Special Economic Zone

UMDA is planning to develop a special economic zone in the District. The purpose is to promote the establishment of BBEEE industrialist in the district owned by locals. This will entail the planning and development of EIA approval and development rights plans, secure land tenure and develop the Special Economic Zone.

The main objectives of the programme are: o To promote the economic revival of these towns with specific focus on industrial hubs o To plan, obtain development and EIA approval, secure land tenure and develop industrial precinct in Mtubatuba, Hlabisa, Hluhluwe, Jozini and Manguzi

UMDA STRATEGIC PLAN 2019-2024

2.4.5. SMALL TO MEDIUM SCALE ENTERPRISE DEVELOPMENT

Skills development

Skills development is considered an essential strategy to empower people living in rural areas to escape poverty. uMhlosinga Development Agency will partner with a number of organisations to ensure skills development within the uMkhanyakude District. It will also partner the Youth Enterprise Development to ensure that youth within the district are provided with expertise to start small business as part of job creation.

Women empowerment

In many developing countries, women are the principal actors in ensuring rural household welfare (Collett & Gale, 2009). Rural women play a significant role in the domestic and socio-economic life of the society (Damisa & Yohanna, 2007). Their economic empowerment is a prerequisite for sustainable development, pro-poor growth and the achievement of all the Sustainable Development Goals (SDGs) (OECD, 2012). Women’s economic empowerment is a catalyst for multiplying development efforts. It enables them to have control over their lives and exert influence in society (OECD, 2012). However, due to a number of household and socio-cultural bottlenecks, women face numerous challenges in accessing education, health services, as well as economic development (Damisa & Yohanna, 2007). uMhlosinga Development Agency will initiate programmes and projects to ensure women empowerment within the district.

2.4.6. SPECIAL PROJECTS

Coal Mining

To develop a coal mine in the northern part of the district, thus unlocking development and economic growth. To be based in Jozini Municipality. About 1 000 jobs to be created. An investment of R500 M will be required. Currently finalising application for exploration.

Kosi Bay Leisure Harbour

To promote economic development through the establishment of a leisure harbour in Kosi Bay to supplement tourism development and conservation. Based at Kosi Bay. About 2 000 direct Jobs will be created. An investment of R 2 Billion Rands will be required. An investment of R 10 M is required for feasibility study, EIA, development planning and business plan.

Lime Mining

To establish a lime mining operation in the northern part of the district, thus creating jobs and significant economic development. The project is based in KwaTembe, uMhlabuyalingana Municipality. About 2 000 Jobs to be created. An investment of R 500 M will be required. An investment of R 10 M is required for feasibility study, EIA, development planning and business plan.

UMDA STRATEGIC PLAN 2019-2024

Cement Factory

To promote industrial development through the establishment of a cement factory, beneficiating from both the lime and coal mines. The project is based in KwaTembe, uMhlabuyalingana Municipality. About 500 Jobs to be created. An investment of R 200 M will be required. An investment of R 10 M is required for feasibility study, EIA, development planning and business plan.

2.4.7. INSTITUTIONAL DEVELOPMENT

The relationship between the Board of UMDA and the Parent Municipality uMkhanyakude District is improving. The Mayor had delegated this reporting function to the Community, Planning and Economic Development Department which is against compliance of legislation. The correct procedure is for the Board Chairman to report to Mayor and the Chief Executive Officer reports to the Municipal Manager of the district. Issues that needed to be resolved are done at the municipal managers’ and the mayor’s forum respectively.

Relationship with Shareholder

A number of shortcomings and challenges have been identified in the institutional structuring of UMDA and its relations with its key stakeholders. In order to address these shortcomings, the following actions are planned: o To organise structured and planned meetings, between the Board Chairman and the Mayor and the CEO and the MM and between the Board and the Shareholder; o To adhere to the provisions of the Municipal Systems Act and the MFMA relating to reporting procedures between the MM and Mayor.

Functioning of the Board

The way in which the Board is structures and operates will also be addressed. The following is important in this respect: To create an environment conducive for an Activist Board as opposed to a Passive Board that is not involved with the planning, decision making and implementation of the activities of UMDA. In this respect the Board is to actively promote trade and investment into the district; to adhere to the highest standard of corporate governance principles. The Board is to actively participate in the selection and prioritisation of catalytic projects undertaken by UMDA and to monitor the implementation of the strategy and through proper reporting by the CEO.

To achieve the above objectives, the Board is to establish additional Committees for the following: o Governance Committee o Stakeholder relations committee o Projects Committee o An independent Audit Committee that accounts to the Board

UMDA STRATEGIC PLAN 2019-2024

3. IMPLEMENTATION STRUCTURES

3.1. ORGANISING FOR IMPLEMENTATION

The future organogram for UMDA focuses on the implementation of the strategic plan and catalytic projects. The overarching managing body of UMDA is its Board of Directors to which the CEO reports. Chief Executive Officer (CEO) to manage and oversee the day to day functions of the entity.

The organogram (below) makes provision for sector-based portfolio managers dealing with agriculture and agri-business development, tourism development, property development (Mkhuze Airport) and strategy and PMS manager. The Chief Financial Officer (CFO) will be responsible for the overall administrative functions of UMDA including HR issues and development. It was noted that the UMDA have critical vacant posts including Human Resources Manager and Fundraising Officer/ Manager. For an organisation that depends on external funding to implement its projects, the latter position needs to be filled with immediate effect. Alternatively, UMDA should outsource the fundraising services on contractual basis.

Important is the provision that is made for a Project Management Unit Manager which is currently outsourced. The workshop felt that there should be a fully-fledged PMU Unit with qualified Engineers / Engineering Technicians to provide technical services to UMDA on infrastructural projects implemented by UMDA. It should be noted that all LMs and DM have PMU Units with qualified personnel that can assist UMDA to provide this critical service. Most of the projects required technical inputs such as engineering, environmental and planning functions and GIS / Data management.

Current organogramme

UMDA STRATEGIC PLAN 2019-2024

CHIEF EXECUTIVE OFFICER (Compliance/ Networking/ Funding / Trade & Investment)

CHIEF FINANCIAL AGRI BUSINESS TOURISM PROPERTY INFRASTRUCTURE & PMU PORTFOLIO PORTFOLIO OFFICER PORTFOLIO “SPECIAL” PROJECTS MANAGER MANAGER MANAGER MANAGER MANAGER

AGRI BUSINESS TOURISM PROPERTY INFRASTRUCTURE UNIT : UNIT : UNIT : & SPECIAL PROJECTS UNIT :

NSNP Manager Tourism Officer Planner Engineer Airports Manager

Environmental Agri Business Tourism Officer Property Renewable Energy Expert Officer Development Manager

Financial Facilitator Urban Design Officer Agri Business & 3D model HR Officer expert & GIS / Data Records Management Manager Expert Project Administrator KEY CATALYTIC KEY CATALYTIC KEY CATALYTIC KEY CATALYTIC AGRICULTURAL TOURISM PROPERTY INFRASTRUCTURE

PROJECTS PROJECTS PROJECTS PROJECTS

SMME Development/ Fundraising / Marketing / Research / Resourcing

3.2. FUNDING MODEL

There is a need for uMhlosinga Development Agency to have a funding model so as to promote its independence and self-sufficiency. The desired funding model must encompass the following:

o UKDM to finance 100% operational expenses for 2019/2020 o Thereafter to provide R 10 million per annum for operational expenses. o UKDM to provide funding for their projects undertaken by UMDA separately o The funding stream of UMDA to be split in the following context:

➢ 20% from UKDM ➢ 40% from fees charged on services offered ➢ 40% from strategic investments

UMDA STRATEGIC PLAN 2019-2024

3.3. BRANDING

The branding of UMDA was recently reviewed and it is to remain as it currently is. The different aspects represent the following:

o Tree: uMkhanyakude tree also representing the nature and eco-base of the District o Blue: Sea and coastal development o Green: Agriculture development o Orange: property development, tourism and infrastructure

In terms of marketing it is important for UMDA to market investment opportunities. Develop products and services both locally and internationally. It was proposed that an investment brochure be developed.

3.4. OFFICE SPACE REQUIREMENTS

It would be ideal for UMDA to have main office in Mkhuze, next to Mkhuze Airport and possible satellite office in Mtubatuba. There are plans underway for the construction of fully-fledged head office at Mkhuze Airport. The size of the offices needs to have capacity to accommodate an increase in the staff members of UMDA.

4. SUMMARY AND CONCLUSION

The uMhlosinga Development Agency was established in 2004 to contribute to the economic development goals of the District. UMDA has however been constraint in its task by a number of challenges and has not always been able to deliver on the economic opportunities in the District.

For the next 5-year period of 20192024, UMDA plans on implementing new and innovative systems and procedures addressing the short-comings and challenges of UMDA. Important in this respect is to address the institutional relations and structure of the Board of Directors. This is important and will assist UMDA to get back on-track and to focus on the strategic projects in the district.

Challenges such as project selection, assessment and planning for the implementation of the catalytic project is also fundamental to the new approach UMDA plan to implement. The use of the guiding principles and project evaluation criteria will allow UMDA to streamline its activities and enhance its service offering.

The 2-day workshop acknowledged the key recommendations as outlined below in the report which contributed to major changes in the strategy of UMDA. Whilst the Board was well represented in the workshop, these recommendations will be sent to the Board for approval prior implementation.

UMDA STRATEGIC PLAN 2019-2024

The opportunities in the District are significant and when achieved can make a profound impact on the welfare of the people of the District. The District is an under-resourced one and it is only through dedication and by undertaking pro-active interventions such as those identified in this strategy, that the District will be able to improve the living conditions of its people and make a positive contribution to the future of the Province.

UMDA STRATEGIC PLAN 2019-2024

ANNEXURE: SUMMARY OF WORKSHOP DELIBERATIONS

This section presents the summary from each of the presentations and subsequent deliberations that took place during the 2-day strategic planning workshop.

THE PURPOSE OF THE WORKSHOP

The purpose of the workshop was to share information and engage with the stakeholders of UMDA on what has been done thus far, and to provide direction into the Agencies future. The outcome of the 2- day session was to formulate a strategy guiding the Development Agency for the next 5-year term (2019-2024). It should be noted that the workshop was fully supported by the following organizations: o uMkhanyakude District Municipality o Jozini Local Municipality o uMhlabuyalingana Local Municipality o Mtubatuba Local Municipality o Mjindi Farming o iSimangaliso Wetland Park

The uMhlosinga Development Agency is tasked with stimulating and facilitating growth in the uMkhanyakude District Municipality, it has also been responsible for the implementation of specific large infrastructure projects such as Mkhuze Airport and the Jozini Dam Power Hydro. The presentations highlighted the idea that that a meaningful impact can be made by UMDA, the family of municipalities in the District as well as the private sector by coordinating and enhancing partnerships in relevant activities. The triple challenge of unemployment, inequality and poverty are felt in the District similarly with the rest of the country. Through enhancing the tourism and agribusiness sectors of the economy the Development Agency intends to reduce the magnitude of the triple challenge. Other challenges facing the District are finance and human resources, spatial planning in rural areas, poor infrastructure, and uncoordinated efforts by both public and private sectors to name a few which reduce the capacity of UMDA to implement large scale projects effectively.

The tourism sector is understood to be the major job creator however it has not yet reached its full potential of being the driver of economic development and transformation. Agri-business is seen as being positive in promoting transformation but employment in the sector has declined over the past 10 years. Undoubtedly the Development Agency is a key player in unlocking development in the region, but it is also a guardian of economic development in uMkhanyakude, and as such has a duty to promote and cultivate it.

ALIGNMENT OF PLANS NATIONAL DEVELOPMENT PLAN, PROVINCIAL GROWTH AND DEVELOPMENT PLAN AND DISTRICT GROWTH AND DEVELOPMENT PLAN

In 2012, Cabinet adopted the National Development Plan (NDP) as a long-term vision and plan for the country’s developmental planning. Subsequent to that, Cabinet Lekgotla resolved in February 2012 that District family of municipalities should develop District Growth and Development Plans (DGDP). In 2014 uMkhanyakude District Municipality finalised its DGDP. Subsequent to the NDP-PGDS-DGDP- IDP alignment meeting between National Planning Commission, Provincial Planning Commission and

UMDA STRATEGIC PLAN 2019-2024

CoGTA in November 2016 a resolution was taken to review all DGDPs in line with PGDS Vision 2035. The UMhlosinga Development Agency (UMDA) was tasked with co-ordinating the review of the uMkhanyakude’s DGDP which was submitted to KZN CoGTA in December 2017. After submission of the draft review, CoGTA resolved that all district should host DGD Summits. uMkhanyakude District Municipality hosted its DGD Summit in July 2018.

National Development Plan Goals

KZN VISION 2035

• KwaZulu-Natal will be a:

• prosperous Province; • with a healthy, secure and skilled population; • living in dignity and harmony; • acting as a gateway to Africa and the World

UMDA STRATEGIC PLAN 2019-2024

Relationship between plans

Constitutional and Legislative Mandates NDP, PGDS MTSF, PGDP,DGDP,IDP 5 Year Strategic Plan with Vision, Mission and Values 5 year targets, budget and programme and strategic objectives per programme with 5 year targets

Annual Performance Plan Breaks down 5 year strat plan into key strategic outputs measured through “Programme Performance Indicators” with annual and MTEF targets Operational Plans and Performance agreements

The District Growth and Development vision is a 2035 Vision. The objectives of the District Growth and Development Strategy (DGDS) are as follows; o Set a long term (20 year+) vision and direction for development in the District; o Serve as an overarching strategic framework for development in the District and its family of Local Municipalities applying the 80/20 principle (it is not intended to be a detailed inventory of all potential projects and actions); o Provide a spatial context and prioritisation for these strategic interventions; o Guide the activities and resource allocation of the district and other spheres of government, business sectors, organised labour and other role players from civil society that can contribute to development in the district by defining a clear set of priority objectives and implementation targets; o Identify institutional arrangements to secure buy-in and ownership in the formulation and implementation of the plan; o To facilitate alignment and integration of the DGDP objectives with Departmental strategic plans, municipal IDP's, and sector strategies and plans; o Provide a common platform for resource commitments and budget alignment of departments and municipal entities through the agreed set of objectives and targets of the DGDP.

According to the DGDS the prioritised key issues for the District are;

1) Quality of life and infrastructure 2) Availability and intensity of economic activities 3) Demographic characteristics of population

UMDA STRATEGIC PLAN 2019-2024

4) Quality of housing 5) Natural potential and influencing factors 6) Access to health and education facilities 7) Environmental quality 8) Commercial farming and employment 9) Structured spatial settlement pattern 10) Conservation and tourism

The policy framework for the DGDS was conceptualised from the National Growth and Development Plan and the KZN Provincial Growth and Development Strategy. Figure 1 below illustrates the conceptual approach and methodology for the DGDS and how it relates to the District IDP and Sector Plans.

UMDA STRATEGIC PLAN 2019-2024

CORRIDOR DEVELOPMENT

The Corridor Development presentation highlighted the uMkhanyakude District Master Plan with the aim to consolidate the findings and recommendations from various studies undertaken in the District Municipal Area, into a comprehensive development programme which is structured around the spatial concept of nodal and corridor development as adopted in the KwaZulu-Natal Provincial Spatial Development Framework.

Some of the identified corridors from the Master Plan are the, N2 Corridor, Jozini Aisle of Kings-Kosi Bay Corridor, Route 22 Zulu Ocean Corridor and the Cultural Heritage Corridor. There are 18 Traditional Council Areas which contribute 42% of total land. Interestingly the District is also known to be an area that has been “Over studied and under developed” due to a lack of coordinated efforts by various stakeholders.

The 12 Development Principles identified in the Master Plan are; o Principle 1: To achieve a sustainable equilibrium between human settlement, conservation, tourism, commercial, and agricultural activities within the District, by way of proper land use management and in partnership with the private sector and local communities. o Principle 2: To define and establish a functional hierarchy of nodal service centres in the District, in order to consolidate human settlement, optimise the delivery of social and engineering services, and stimulate local economic development, while protecting valuable agricultural land. o Principle 3: To provide a full range of social/ community services at all identified nodal points, in accordance with the nationally approved Thusong Centre concept. o Principle 4: To optimally capitalise on the strategic location of the District through enhancing the N2 and R22 as development corridors, and to functionally link all nodal points and major destinations within and outside the District to one another, by way of an extensive movement network. o Principle 5: To ensure that proper public transport infrastructure and services are provided along the priority movement network and at all nodal points. o Principle 6: To establish the iSimangaliso Wetland Park as the international Tourism Anchor in the District, supplemented by the full variety of public and private reserves, and cultural heritage precincts within the District. o Principle 7: To promote irrigated and cultivated farming activities on suitable land within the District; and to support small scale and/ or subsistence farming throughout the remainder of the area. o Principle 8: To enhance business activities (formal and informal) at each of the identified nodal points in the District by consolidating these activities with the Thusong Centres and modal transfer facilities.

UMDA STRATEGIC PLAN 2019-2024 o Principle 9: To consolidate major industrial and manufacturing activities around three core areas, namely Mtubatuba, Hluhluwe and Mkuze; and to promote small-scale manufacturing/ light industrial activities, including agro-processing at all other nodal service centres. o Principle 10: To direct the major infrastructure programmes towards the nodal and corridor network in the District, but to ensure that areas displaying little or no potential for growth (urban and rural) are at least provided with the constitutionally mandated minimum levels of services as prescribed by the NSDP and enshrined in the Constitution. o Principle 11: To integrate and consolidate the fragmented human settlement structure of the UDM by way of delineating urban and rural development boundaries around nodal points and promoting infill development and densification within these Strategic Development Areas. o Principle 12: To compile Area Based Plans for Traditional Authority Areas and detailed Precinct Plans for each of the identified nodal points in the District.

The District is largely rural and it is crucial for efforts made not to be fragmented as this could result in the loss of critical mass. An idea in a neighbourhood development would be to consolidate efforts predominately where 2 access roads intersect so as to open accessibility. Such a development would include community facilities (clinic, post office, library and a police station) formalised industrial market, retail, schools, private sector and housing.

It is important for the District and the family of Local Municipalities to assist UMDA to co-ordinate and define corridors, and UMDA to prioritise major key catalytic projects as well as to compile feasibility studies, business plans for these priority key catalytic projects. In the identification of UMDA projects, UMDA should secure required resources (in partnership with relevant stakeholders) to implement key catalytic projects and perform quality control and act as paymaster where applicable. It was also suggested that UMDA create an investment portfolio as a guide for prospective and interested investors looking to invest in the District.

The following recommendations were made in the Master Plan: o Lands Committee to unlock available land. o Infrastructure Committee to resolve infrastructure issues and ensure alignment of bulk and link services where needed to stimulate development. o Resource committee to align resources where needed to stimulate development. o Implementation and Monitoring.

ROUTE 22 TOURISM DEVELOPMENT INITIATIVE

The purpose of the Route 22 Tourism initiative is to cater for a wide variety of tourism experiences namely, culture and heritage, environmental/ ecological and adventure tourism products. The benefits of the tourism products accrue to the whole District and create opportunities for both rural and urban communities. It was suggested that the feasibility of the Route address necessary supporting infrastructure, accessibility for the physically disabled and marketing of the route products and experiences. The guiding principles for design of the route were as follows;

UMDA STRATEGIC PLAN 2019-2024

o Design around traffic generator corridor o Tourism routes are sub systems or networks of broader or larger (provincial) routes o Complete routes break into sub routes or route network o Generally circular in design o Cul de sacs allowed but not > 10Km in length o Draw cards: incentives to travel o Health, access, financial services, universal accessibility, safety and security.

The Route 22 Feasibility Study identified that the uMkhanyakude District was underlined by the duality of its rural and agricultural environment. The Route 22 Development is also a powerful tool for development, marketing, creates linkages, and entrepreneurship development in the District Municipality.

Source: Route 22 Presentation (2014)

The Composite Map illustrates the proposed Route 22 Development with proposed Route Infrastructure Improvements, Accommodation and Tourism Services, Attractions, Signage and Information Centres.

The Route 22 Feasibility Study allowed for UMDA to devise a mechanism to develop and promote tourism in the District as there was no previous District Tourism Strategy. The project was borne at a time where tourism routes were the latest trend within the Province and in total 11 were established, the advantage of which is the increased tourism flows to those areas.

The challenges experienced so far have been; o Projects not implemented as there is no alignment with the CTA Strategy (Community Tourism Authority) which is seen as a duplication of CTO’s. o Not fully recognised at local levels due to clarification of functions and transformation not given priority. o Naming of the Route. o Funding for the implementation of the Development.

UMDA STRATEGIC PLAN 2019-2024

The progress made since the Feasibility Study has been completed; o The Route has been recognised provincially as the East 3 Route and nationally by the PICC. o Passive marketing has been ongoing since 2010. o Securing of funding for the signage required. o New products identification which have been submitted to NDT for funding.

The conclusion of the presentation emphasised that the objectives and functions of the Route 22 need to be clearly redefined, so as not to create confusion, or duplication of tourism structures already in place. Moreover, the Route is to be an independent structure operating at a district level together with current tourism structures and the focus should be on tourism investment promotion, product development and research and knowledge management.

FUNDING OF DEVELOPMENT AGENCIES AND CATALYTIC PROJECTS

The presentation given by the Industrial Development Corporation (IDC) addressed funding of Development Agencies in the country and the new ‘products’ or funding mechanisms which are currently available from UMDA’s Development and Support Department. The new initiatives are, IDC special schemes, Sector and Strategic Business Units, Social Enterprise fund, Spatial Intervention Fund, Inclusive Business and Third-Party Funds.

The current operational model used by the Department is twofold, first is the Sector Specialisation through Strategic Business Units and secondly the flexible application of a large variety of financial products.

The sectors The financial products

o Agro-Industries o Equity o Mining & Beneficiation o Mezzanine debt/quasi equity o Chemicals & Allied Industries o Commercial debt o Metals, Transport & Machinery Products o Guarantees o Textiles & Clothing o Trade finance o Tourism o Bridging finance o Media & Motion Pictures o Share warehousing o Techno Industries o Special funding schemes o Healthcare o Business support products o Green Industries o Project feasibility funding o ICT o Venture Capital o Strategic High Impact Projects

New Funding Initiatives being introduced are:

Enterprise Fund: The fund aims to provide grant funding to establish (start-up) and develop (grow, replicate, scale) social enterprises and entrepreneurs;

UMDA STRATEGIC PLAN 2019-2024

Spatial Intervention Fund: The fund aims to promote, facilitate and implement economic development in a specific area, to address spatial disparities, harness job creation opportunities and bring about meaningful change.

Inclusive Business and Third-Party Funding (Flanders Funds-Flemish Government)

AGRI-BUSINESS DEVELOPMENT

The Agricultural Development Agency (ADA) was created by the provincial government to fast track land claims and failures of land reform. Its mandate is to establish a cadre of successful Black farms for the transformation of agriculture in KZN. o Distress farmers programme

➢ ADA will not pay debts for farmers, but help them to get back to their feet, so that there can be able to service their debt obligations with financial institutions ➢ Emerging farmers become commercial and self-sustaining, technical support capacity building off and on farm infrastructure. o Mandate is to go up and down the value chain but value addition and beneficiation. Want to see the emerging farmer going up the value chain. 2-3 years of existence focus on primary agriculture. Entity has moved ADA from EDTEA to Agriculture and Rural Development (DARD). o Assistance provided, money is not given, analyse the business case and requirements by the project. Once off funding doesn’t work, 3-year support programme. o Farmers who are already operational and need help in expanding and going into new projects. Do not deal with start-up farmers.

MKHUZE AIRPORT AND THE KZN REGIONAL AIRPORTS

The KZN Provincial Treasury are involved with the promotion of regional airports in the province as hubs and precincts with people who demand and have money to spend. It is within this provincial context that the following has been achieved at the Mkuze airport: o AfricGroup Feasibility and SSI Feasibility Studies were concluded; o EIA RoD secured; o GWI Crack Team’s Aviation Master Plan; o Creation of a precinct around the airport; o 10ha available to do everything. MAC Development (Mkhuze Airport City); o Study area 295ha, transportation, rail, air and road; o KZN Treasury, Assigned Crack Team

➢ Fencing ➢ Rehabilitation ➢ Inputs of bulk, link and internal civil, electrical and ITC Infrastructure ➢ New Terminal building ➢ Op requirements ‘draft master plan ➢ 3D Design on aviation section ➢ Proposal in terms of flights to and from Mkhuze

UMDA STRATEGIC PLAN 2019-2024

➢ Progress Reports o UMDA MAC Development Technical Team o UMDA, LNW Consulting Engineers, DEMACON Market Studies, Ulungeni Consulting Engineers, KMH and Associates, Vumase SS Inc, Black Balance Projects. UWP, Ntonga Technical Services

Funding o At present KZN Treasury is funding o uMkhanyakude DM has provided funding o UMDA will need to unlock public and private sector funds

The way forward o Completion of the terminal building as soon as possible (PDA approval) o Establish a Fire and Rescue service; o Establish a Flue capacity; o Unlock potential of non-aviation prescient

ROLE OF DEVELOPMENT AGENCIES

The KwaZulu-Natal Provincial Department of Co-operative Governance and Traditional Affairs (COGTA) has begun establishing District Development Agencies (DDAs). This was started by a Cabinet Lekgotla and August 2013 Workshop. District Development Agencies or Regional Agencies are independent organisation that can be used to facilitate the implementation of sustainable economic development projects.

The aims for development Agencies are to; o Fulfilment of municipal development goals and objectives o Promotion and stimulation of economic growth and investment leverage private sector funds

In the Province there are currently 4 District Development Agencies, UMDA, Enterprise iLembe, Zululand Development Agency and Harry Gwala Development Agency, the other local Agencies which need ‘upgrading’ are Okhahlamba Development Agency and South Coast Development Agency (SCDA). o District Development Agency (DDA) realities o Partnerships towards the roll out of DDA’s o The School Nutrition Programme as a catalytic project o Private sector perspective

The COGTA August workshop had the following resolutions o DDA’s will be established in each District of KZN Province o A framework will be developed by COGTA in order to provide guidelines towards the establishment if DA’s o Task Team o COGTA visits to each District in order to iron out all concerns and constraints to the establishment of DA and engage with Council

UMDA STRATEGIC PLAN 2019-2024 o The above will be conducted in the form of focussed “Boot Camps” for Development Agencies

The potential Economic viable projects for development agencies which have been identified includes: o Fresh produce markets/ hubs o Vineyards and winery development o Heritage and tourism routes o Biodiesel/ green energy projects o Broadband o Infrastructure upgrading o Airport development o Office park development o SMME Development

KEY RECOMMENDATIONS BY THE WORKSHOP o Vision of UMDA was changed to be ““To be the reliable economic development Agency that facilitates economic development and investments in the uMkhanyakude District”. o SMME Development and Support to be added as new additional focus area. o Improvement of stakeholders’ relationship in particular UKDM and LMs – alignment of projects. o Proper prioritization of catalytic projects (focus on achievable projects – limit number of projects). o Establish a fully-fledged Project Management Unit (PMU) with qualified personnel relevant for UMDA mandate implementation. o Conduct annual land summit to unlock land for development (include Amakhosi and Ingonyama Trust Board). o UMDA website should be upgraded and maintained regularly to include current projects and activities. o Filling of critical positions like CEO, Human Resources Manager and Fundraising Officer/ Manager to be prioritized. o UMDA to establish an income generating project (business orientated) to ensure sustainability of the organization. o Conduct annual income generating tourism related event like Tourism Indaba or Music Festival for the District. o Constant engagement with UKDM for the alignment of investment policies.