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STATUS of ULM STRATEGY DATE :20TH – 21ST FEBRUARY 2020 VENUE: SOPHIA PARK, KWA-BHACA Content

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STATUS of ULM STRATEGY DATE :20TH – 21ST FEBRUARY 2020 VENUE: SOPHIA PARK, KWA-BHACA Content STATUS OF ULM STRATEGY DATE :20TH – 21ST FEBRUARY 2020 VENUE: SOPHIA PARK, KWA-BHACA Content ➢ Background ➢Objectives of the LED Strategy Review ➢ Overview of the ULM ➢Strategic Considerations ➢Vision and Goals ➢Situational Analysis ➢Progress on Projects Implemented ➢Proposed Programmes / Projects 2 Background The LED Strategy for ULM was developed in 2011. With the passing of time the need to update and review the strategy has been identified. The review of the Umzimvubu LED Strategy was funded by the Department of Local Government and Traditional Affairs and project managed by the Alfred Nzo District Municipality on behalf of the beneficiary, the ULM. Urban-Econ Eastern Cape, an Economic Development consultancy firm was appointed to undertake the review of the Umzimvubu LED Strategy. Objectives of the LED Strategy Review ➢To profile various economic indicators such as R-GDP, sectoral trends and provides a profile of each of the productive economic sectors in the project area. ➢Sectors assessed in terms of current status and future potential. ➢Develop a Local Economic Development Plan that seeks to speak to the various sector plans of the Umzimvubu Local Municipality ➢Come up with an integrated economic plan with clear deliverables, as well as how and where to get funding 4 Objectives of the LED Strategy Review ➢A clear project implementation plan with time frames and estimated budget/s. ➢Appraise and encompass as well as responding to the recommendations of the Umzimvubu Spatial Development Framework ➢Develop strategies that promote sustainable economic development within the two towns of Umzimvubu Municipality ➢Allow for different stakeholders to engage on a variety of developmental issues impacting our area ➢Identify Anchor projects which are sustainable for the area, that can create conducive conditions for increased employment, income generation and improved quality of life 5 Over-view of the ULM The ULM is one of four municipalities within the Alfred Nzo District, with the three other local municipalities being Matatiele, Mbizana and Ntabankulu. The municipal area covers an area of approximately 2506 km². The National Road (N2) traverses the southern part of the municipality, and provides connectivity between Kokstad and East London, and on a broader scale, to the cities of Cape Town, Port Elizabeth, East London and Durban. The Umzimvubu municipality is an underdeveloped and deeply rural area consisting of dispersed settlements. There is no rail linkage within ULM and no operational airstrip. There are two primary settlement nodes within Umzimvubu, namely the town of Mount Frere and Mount Ayliff, which are both situated along the National N2 route 6 Locality of the ULM 7 STRATEGIC CONSIDERATION The guiding principles of the LED Strategic Framework were considered to include the following: ➢ Promoting competitive advantage in the municipality ➢ Focus on high potential sectors ➢ Promoting a vibrant business environment through red tape reduction and business support ➢ Concentrate on getting the basics right- thus focusing on service delivery ➢ Target ‘quick win’ projects to boost public confidence ➢ Focus on the structural issues within the economy through long term projects and investment ➢ Focus on economic development that has wide ranging benefits and that will impact on rural and urban communities ➢ Value chain maximisation 8 VISION The vision for the Umzimvubu LED Strategy is contextualized by a comparison of visions contained in other strategic documents Name of Strategic Document Vision Umzimvubu LED Strategy ‘A diverse and resilient economy, able to exploit the competitive advantages of the municipality while building 2007-2020 appropriate skills’. Umzimvubu IDP “To ensure the delivery of quality services that promote economic growth, support development and respond to the community needs in accordance with our development mandate”. Umzimvubu Draft Economic “a diverse and resilient economy, able to exploit the competitive advantages of the municipality while building Development Policy appropriate skills”. Umzimvubu Tourism Plan “Umzimvubu LM strives to be a preferred tourism destination by 2020, while promoting responsible tourism practices”. Umzimvubu Investment Plan “The promotion and leveraging of all investment to maximize on latent economic potential”. ANDM LED Strategy “To develop a vibrant and sustainable local economy for the benefit of the local population through creating sustainable business growth, infrastructure development and creation of jobs”. ANDM IDP 2010/2011 “A self-sustainable Municipality that stimulates accelerated socio-economic growth & development by 2014”. 9 VISION Thus the vision for the Local Economic Development Strategy of Umzimvubu is: ‘To develop a diverse and resilient economy, based on the competitive advantages of the area, that develops skills, sustainable businesses and job creation’. Common themes that were described in these visions were: ✓ Sustainability ✓ Growth ✓ Quality services ✓ Exploitation of competitive advantage ✓ Infrastructure development ✓ Economic potential ✓ Creation of jobs 10 GOALS Goals are statements of what needs to be accomplished to implement the strategy ✓ To develop appropriate skills development and Human Resource development ✓ To develop and support the business sector ✓To facilitate the expansion of the forestry sector and promote value addition through partnerships ✓To develop the regional tourism industry in a responsible manner ✓To promote agriculture as a viable livelihood strategy and as a productive commercial sector ✓To develop good governance and institutional capacity ✓To increase investment and realise an enabling environment for investment ✓To regenerate the urban centres ✓To build resilient and vibrant rural economies 11 Human Resource Development STRATEGIC STRUCTURES OF THE STRATEGY THE OF STRUCTURES STRATEGIC Business Development & Support Forestry Expansion & Value Addition Responsible Tourism PILLARS SMME Development SMME Development Improvement of Agricultural Conditions Strategic Partnerships Increased Investments Urban Development Rural Livelihood 12 Development SITUATION ANALYSIS SOCIO – ECONOMIC & ECONOMIC PROFILE Demographics Mount Ayliff Mount Frere Umzimvubu LM Population 7 279 22 065 191 620 Population Density 1 443.0 1 103.6 74.4 (square kilometres) Number of households 2 391 6 545 46 891 Average No of people 3 3 4 per households 13 Socio-economic profile Age Distribution ➢A high level of representation from those aged 0-14 with Mt Frere (20%), Mt Ayliff (32%). This age group is considered to be the primary school going age and indicates rather youthful populations. ➢The other dominant age group is the 15-64 which is known as the working age population, which is potentially those who are also economically active. The age group is important as it is responsible for the 0 -14 and 65+ age groups (not economically active), in addition it aids the growth of the economies of the study areas. ➢This young population presents an opportunity for skills development and training in the future which would be beneficial for projects which are undertaken. The young population also makes it necessary for employment and economic initiatives to be initiated Age Profile (2010) 0-14 15-34 35-64 65+ Umzimvubu 39.8% 37.0% 17.6% 5.6% ANDM 40.3% 37.6% 16.8% 5.2% 14 Socio-economic profile Education Profile ➢The education levels in any given area will influence economic and human development potential. It is clear that low education levels lead to a low skills base in an area. ➢The two urban areas, Mt Ayliff (48%) and Mt Frere (40%) have relatively higher levels of education attainment. This higher figure for the urban areas could be attributed to the availability of greater economic opportunities, where formal private and public sector jobs are located Education Profile (2010) No schooling Some Primary Completed primary Some high school Matric & higher Umzimvubu 15.8% 42.8% 8.2% 26.4% 6.8% ANDM 20.7% 42.9% 7.3% 23.4% 5.8% 15 Socio-economic profile Employment Profile ➢The two urban nodes of Mt Ayliff (36%) and Mt Frere (34%) have the largest proportion of individuals who are employed in the formal sector. ➢The ‘not economically active’ proportion of the population consists of individuals who are not working and/or not actively seeking employment, this can be due to numerous reasons such as lack of employment opportunities, education levels, skills and general discouragement due to in the area. These figures also indicate the reliability of these individuals on those who are employed. Employment Profile (2010) Umzimvubu ANDM Eastern Cape Not Economically Active 63.4% 67.7% 56.5% Unemployed 10.1% 9.1% 11.5% Employed 26.4% 23.1% 32% 16 Socio-economic profile Household Income Profile ➢The urban areas of Mt Ayliff (R 5 064) and Mt Frere (R 5 177) are the only two precincts which have an average monthly household income greater than the LM average. ➢Mt Ayliff (20%) and Mt Frere (35%) have a lower income poverty than the local municipality (62%). Infrastructure Profile Mount Ayliff Mount Frere Umzimvubu LM Access to Toilet Facilities 85% 96% 89% Access to Piped Water 99% 74% 62% Access to Electricity 56% 70% 46% Access to Refuse 84% 14% 8% Collection by LM 17 Economic profile Local Economy Output & Performance ➢The economic performance in the region is usually evaluated by means of the Gross Domestic Product in the region (GDP-R), which is a measure of the value of final goods and services produced within the specific geographical area, and in
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