GREATER TUBATSE MUNICIPALITY
LOCAL ECONOMIC DEVELOPMENT STRATEGY
Greater Tubatse Local Economic Development Strategy 2
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...... 3 SECTION 1: INTRODUCTION ...... 5 1.1 BACKGROUND ...... 5 1.2 LED POLICY AND LEGISLATIVE FRAMEWORK ...... 6 1.3 METHODOLOGY ...... 6 1.4 STRUCTURE OF THE REPORT ...... 7 SECTION 2: BASELINE REVIEW...... 9 2.1 SOCIAL PROFILE ...... 9 2.2 ECONOMIC PROFILE ...... 9 2.3 SPATIAL ANALYSIS ...... 10 2.4 INFRASTRUCTURE STATUS ...... 11 2.5 THE ENVIRONMENT ...... 11 SECTION 3: GREATER TUBATSE LED STRATEGY ...... 12 3.1 TARGETED DEVELOPMENT OBJECTIVES ...... 12 3.1.1 Accelerated Economic Growth ...... 12 3.1.2 Employment Creation ...... 13 3.1.3 Poverty Reduction ...... 15 3.2 LED STRATEGY BUILDING BLOCKS ...... 16 3.2.1 Sector development ...... 16 3.2.2 Economic infrastructure support ...... 24 3.2.3 Social development ...... 26 3.2.4 Institutional/governance ...... 28 SECTION 4: IMPLEMENTATION PLAN AND INSTITUTIONAL OPTIONS ...... 31 4.1 IMPLEMENTATION AND PRIORITISATION ...... 31 4.2 INSTITUTIONAL OPTIONS ...... 33 4.2.1 Internal Arrangements ...... 33 4.2.2 External Arrangements ...... 34 4.3 RESPONSIBILITIES AND IMPLEMENTATION PARTNERS ...... 36 ANNEXURE: SECTOR DEVELOPMENT MAPPING ...... 38 REPORT 1: BASELINE REVIEW ...... 39 REPORT 2: DEVELOPMENT POTENTIAL ANALYSIS ...... 40 REPORT 3: FORMULATING GTM LED STRATEGY ...... 41 REPORT 4: IMPLEMENTATION PLAN AND INSTITUTIONAL ARRANGEMENTS ...... 42
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 3
EXECUTIVE SUMMARY
Greater Tubatse Municipality appointed Procurement Dynamics (Pty) Ltd (in collaboration with Glen Steyn & Associates) to undertake a Local Economic Development Strategy (LED) for the Municipality. The LED is a component of the Municipality’s overall strategic plan as outlined in the Integrated Development Planning process. The strategy provides the Municipality with guidelines to create and facilitate economic development, realise the underlying economic development potential, and encourage private sector investment and job creation.
The total population in the area is approximately 270 117. A very large proportion of the labour force in Tubatse Municipality is unemployed (73%) - based on an expanded unemployment definition) and 42.7% of the total households has no income. Development constraints in the Municipality include inter alia lack of education and skills, and lack of infrastructure. Furthermore, health services were also found to be lacking. Weak capacity within the municipality as well as absence of land tenure for investment in rural areas was also seen as development constraints. These constraints need to be addressed to ensure sustainable economic growth and development in Greater Tubatse.
The sector which contributed the most to the GGP in the local economy is the mining sector (34.1%) followed by government services (14.0%), finance and business services (13.2%), manufacturing (10.5%) and the trade & hospitability sector (10.2%).
In light of the key sectors identified in Greater Tubatse Municipality and the existing opportunities identified, the LED Strategy advocates four programmes for economic development. This comprises (1) Sector Development, (2) Economic Infrastructure Support, (3) Social Development, and (4) Institutional/Governance Reform.
These programmes have been identified during the process of consultations with various role players including government authorities, the community, and local businesses. The cluster development approach as articulated in the Provincial Growth and Development Strategy also served as a guideline.
These programmes are further supported by strategic thrusts and relevant projects. The projects that have been identified in the LED are aimed at economic development by ensuring that more job opportunities are created, skills development takes place and that opportunities are created for SMME development. Priority projects were identified based on the developmental goals identified below and the project prioritization methodology as articulated in Annexure 3.
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 4
The following table indicates the programmes along with strategic thrusts identified.
Table 1: GTM LED Strategy programmes & thrusts PROGRAMME THRUSTS 1. Sector Development 1.1 Mining Cluster Development 1.2 Horticulture Cluster Development 1.3 Meat Cluster Development 1.4 Tourism Cluster Development 1.5 Nodal Development 1.6 Informal Sector Development 2. Economic Infrastructure Support 2.1 Roads & Transport 2.2 Water 2.3 Electricity 2.4 Telecommunications 2.5 Infrastructure Investment Plan 2.6 Enterprise Development 3. Social Development 3.1 Education and Skills Development 3.2 Housing 3.3 Health 4. Institutional/Governance Reform 4.1 Regulatory Framework 4.2 Waste & Environmental Management 4.3 Financial Management 4.4 LED Directorate Capacity Building
To ensure that the identified projects are implemented, a dedicated LED Directorate is proposed. The latter will be headed by the Director: LED and supported by Manager: LED and LED Coordinators/Officers specialising in Policy & Research, Skills Development, Tourism Development & Marketing, Agriculture & Cooperative Development and Trade & SMME Development & Support.
The establishment of an LED Forum would further aid the Municipality in the implementation of LED driven projects. The proposed mining, tourism, agriculture and trade & SMME working groups would serve as anchor sub structures within the Forum to coordinate and support LED initiatives.
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 5
SECTION 1: INTRODUCTION
Section 1 gives a broad orientation towards the purpose of the report, policy framework, and the methodology that was followed.
The following aspects are thus discussed in this section: • Background to the study • LED policy and legislative framework • Methodology
1.1 BACKGROUND
Greater Tubatse Municipality appointed Procurement Dynamics (Pty) Ltd (in collaboration with Glen Steyn & Associates) to undertake a Local Economic Development Strategy (LED) for the Municipality.
The main purpose of this project is to develop an integrated LED strategy that is linked to relevant planning frameworks such as the IDP, the Limpopo Growth and Development Strategy, the Provincial Spatial Framework, the National Spatial Development Perspective and ASGISA. The strategy should further tackle a range of development challenges, including, among others:
• High level of poverty and unemployment in Greater Tubatse Municipality • Business support services and inadequate entrepreneurial skills • Collaboration between formal business sector and emerging business sector • Limited private investment in the job-rich sectors despite significant business opportunities • Creating opportunities for the marginalised • Facilitating youth and women development • Promoting and supporting rural development initiatives • Urban renewal programmes.
The specific objectives of this project as stated in the terms of reference are:
• To develop an LED strategy that will: o Address the economic development objectives of the municipality through the identification and co-ordination of opportunities for development, and o Become the basis for the municipality to partner with other stakeholders (civic, business, NGOs, labour, etc) through formal LED forums representing all the identified stakeholders and other interested groups. • Over and above the identified economic development issues, the LED strategy will also be an important basis for:-
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 6
o Development of Platinum City 2015 Growth Plan (infrastructure planning and development) o Feasibility study for establishment of Local Economic Development Agency.
1.2 LED POLICY AND LEGISLATIVE FRAMEWORK
Local economic development planning derives its focus from various government legislation and policy.
Section 152 of South African Constitution, requires municipalities to promote social and economic development. Section 153 of the Constitution mandates municipalities to structure and manage their administration, budgeting and planning processes to give priority to the basic needs of the community, and to promote the social and economic development of the community. Municipalities are expected to develop local economic development strategies as means of exploiting economic opportunities within their areas of jurisdiction. Municipal LED strategies are further aimed at creating an enabling environment for business creation, expansion and retention.
We also emphasize here the legislative directives that relate to coherence and alignment with planning frameworks of other spheres of government. For example, the Municipal Systems Act (32 of 2000) 24(1) states that ‘The planning undertaken by a municipality must be aligned with, and complement, the development plans and strategies of other affected municipalities and organs of state so as to give effect to the principles of cooperative government contained in section 41 of the Constitution.’
Accordingly, there must be alignment between the Tubatse LED strategy with those of other neighbouring municipalities, the Sekhukhune 2025 Development Strategy and the Integrated Development Plans (IDPs), Medium-Term Revenue and Expenditure Framework (MTREF), the Limpopo Growth and Development Strategy, and the National Spatial Development Perspective (NSDP), among others.
1.3 METHODOLOGY
The strategy was formulated through a process that goes through 4 phases as described below:
Phase1: Stakeholder mobilisation and baseline review Phase 2: Development Potential Analysis Phase 3: LED Strategy formulation Phase 4: Implementation plan and institutional options
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 7
Phase 1: Stakeholder mobilization and baseline review
This stage involved mobilizing stakeholders from various sectors such mining, agriculture, the trade sector and local community representatives
The baseline review went beyond mere statistical data analysis primarily because reliable and useful information is not readily available at a disaggregate level of a local municipality. The outcome of the review was a clear picture of the economy of Tubatse, what the key drivers of growth are; how they can be supported; constraints to present and future growth of the key sectors; how the economic activity shapes the demographic profile of the area presently and into the future; what infrastructure exists and its adequacy for present and future economic activity. This culminated in a status quo report of the Municipality.
Phase 2: Development potential analysis
The purpose of this step was to identify the lead sectors for potential development, the business linkages, and analyse the need for cluster development and diversification into other sectors such as tourism.
Phase 3: LED Strategy formulation The formulation of the strategy involved the consolidation of the baseline review and the potential analysis into a coherent framework that identifies what can and cannot be done; the phasing into stages the actions that must be taken to ensure growth and development.
This included functional programme per lead sector identified in previous phases and action plan towards addressing the identified development opportunities. The strategy will also have targets focused on unlocking the development potentials, exploiting comparative and competitive advantages.
Phase 4: Implementation Plan and Institutional Options
The aim of this step was to identify various funding sources, developing institutional structures for implementing the LED Strategy, as well as identifying various development initiatives, which would attract businesses and industries to the area. This step also describes the roles of the LED Directorate within the municipality and how to implement the LED with the aid of external resources.
1.4 STRUCTURE OF THE REPORT
The remaining structure of the report includes the following sections:
• Section 2 – Baseline Review
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 8
The baseline review provides a brief analysis of the socio-economic situation in Tubatse. The analysis covers issues such as economic and social indicators including contribution to GGP, education, employment, infrastructure, spatial, etc.
• Section 3 – GTM Local Economic Development Strategy
Key economic sectors in Tubatse are identified and development objectives are briefly outlined. Furthermore LED Strategy programmes are provided. Each programme is supported with thrusts and projects.
• Section 4 – Implementation Plan and Institutional Arrangements
This section provides guidelines with regards to the implementation of projects in Tubatse. Anchor projects are identified and then prioritized. Suggestions on strengthening the capacity to implement LED projects successfully in Tubatse are further articulated.
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 9
SECTION 2: BASELINE REVIEW
This section provides an analysis of the socio-economic situation in Greater Tubatse Municipality.
The following aspects are analysed: • Social profile • Economic profile • Spatial analysis • Infrastructure status • Environmental conditions
2.1 SOCIAL PROFILE
It has been shown that the population of GTM is the largest and the fastest growing. Various sources of information have pointed to a possibility of in- migration into Tubatse from neighbouring municipalities in search of opportunities in the mining sector.
Another trend was observed of migration within Tubatse from outlying areas to areas that are better served with infrastructure and access to services. This suggests that areas like Burgersfort are going to have to plan for a much faster growing population than the rest of the municipality. On the other hand, the rate of skills development was found to be lagging behind the needs of industry and the quality of education largely questionable.
Health services were also found to be lacking. This suggests a need for investment in social infrastructure alongside increased investment in economic infrastructure. There is a need of paying particular attention to the movement of people, and planning accordingly.
2.2 ECONOMIC PROFILE
Tubatse Municipality has significant mining and manufacturing (ferro-chrome smelting) sectors, but unemployment is still considerably above the provincial average. Information from media releases suggest that new mining developments that have already been announced could reduce unemployment from 73% (expanded unemployment rate definition) in 2001 to 44% in 2010.
Further reduction in the unemployment rate will depend on effective intervention by public sector institutions to facilitate economic sector diversification through competitive cluster value-chain development. This implies upstream development in the manufacturing and trade sectors to provide essential items in the mining supply chain by local entrepreneurs. It also implies side-stream
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 10 development in the form of construction and urban renewal. This approach is consistent with the Limpopo Growth and Development Strategy.
Constraints to cluster development include: ¾ Lack of infrastructure, with reference to water reticulation and availability, road conditions, electricity and sanitation. ¾ Land ownership limitations in former homeland areas and inappropriate land-use management. ¾ The shortage of skills, particularly in the local labour force and among unemployed people. ¾ Institutional capacity limitations in local government, with specific reference to economic development management capacity.
2.3 SPATIAL ANALYSIS
The main issues that have a direct or indirect impact on spatial development, or are a result of the current spatial development pattern in Greater Tubatse Municipal Area, are the following: • Informal and marginal economic activities are normally not the first choice of participants, but are the result of limited options due to limited formal sector opportunities, education and capital; • The natural resource base and economy of the Greater Tubatse Municipal Area is not yet fully developed and therefore cannot support the local population, forcing a large percentage of people in the economically active age cohorts to seek employment opportunities outside of the municipal area; • The scarcity of arable land forces communities to cultivate steep slopes and other environmentally unsuitable areas, which increases the occurrence of erosion with the resultant loss of fertile soils; • Rapid low density urban sprawl sterilises land that may have been used for agricultural and mining purposes; • Buying power limitations in settlements discourage investment in trading outlets, which leads to a leakage of buying power; • A second implication of the low levels of buying power is the inability of the community to pay taxes (e.g. property tax) for even the most basic level of services. This situation also weakens the financial viability of the local municipality and makes it difficult to provide the necessary social services and municipal infrastructure in the area; • The majority of land in the municipal area is held in trust for communities. Traditional authorities have a major influence on the manner in which land is made available to individuals for settlement, as well as the use thereof for economic purposes (e.g. mining, agriculture, tourism, etc.). Most of these decisions are made on an ad hoc basis and usually without any consideration of the impact it may have on the spatial pattern and the rendering of cost-effective and efficient services to communities.
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 11
• There is no formal security of tenure in the rural areas. • Land claims are a major factor influencing development in the area.
2.4 INFRASTRUCTURE STATUS
There is a significant backlog in economic infrastructure in Greater Tubatse. Of particular concern is the roads condition and access to water. In addition electrical and telecommunication connectivity is inadequate, particularly for residential use. This provides an investment opportunity for Tubatse, whose current infrastructure investment in respect of roads, water and waste, electricity and telecommunications is marginal.
Tubatse Municipality will need a single overarching plan for physical infrastructure that would provide the vehicle for sector expansions and development and integrated settlement.
2.5 THE ENVIRONMENT
There are three main factors that are likely to continue to pose an environmental threat in GTM namely: development, climate changes, and waste management.
The developments that are taking place are not without a cost to the environment. The development phase of mining and the production phase will pose serious threats to the environment unless well managed. The national regulations for the management of the environment, including water and air pollution seem adequate and all that is necessary is their enforcement.
The changes in the climate will undoubtedly affect the environment in an unimaginable way. Although most of GTM has only experienced between 1.6 to 1.7 degrees increase in the temperature, if past trends are expected to continue, this could lead to a rapid loss of water resources and other bio species. A further decline in the contribution of agriculture to GGP would result.
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 12
SECTION 3: GREATER TUBATSE LED STRATEGY
The purpose of this section is to provide the local economic framework which includes development programmes and associated projects, which are aimed at regenerating Greater Tubatse economy.
Opportunities for economic development in the area were identified through consultation, desktop studies and business interviews. These opportunities are categorized into projects to support each programme and thrust in this section.
This section focuses on the following aspects:
• Targeted development objectives • Brief analysis of programme and projects
3.1 TARGETED DEVELOPMENT OBJECTIVES
3.1.1 Accelerated Economic Growth
The economy of Greater Tubatse depends highly on mining, government services, manufacturing, finance, trade, transport and communication sectors (see table below). The relative contribution of agriculture and construction is very low.
Mining contribution is both directly and indirectly through spin-offs or multiplier effects within the other economic sectors, for instance the increase in demand for housing and elated infrastructure services for the mineworkers. This sector is expected to expand exponentially in the next five years. Thus, interventions have been articulated that should support acceleration of the development of this sector and its subsequent contribution to local economic growth.
Table 2: Sector GGP Contribution in Tubatse, 2005 SECTOR GGP % CONTRIBUTION CONTRIBUTION Mining and Quarrying R1 500 million 34.1 Government Services R614 million 14.0 Finance, Real Estate and Business Services R581 million 13.2 Manufacturing R460 million 10.5 Trade, Repairs, Hotels and Catering R450 million 10.2 Transport, Storage and Communication R310 million 7.0 Personal Services R167 million 3.8 Water and Electricity R114 million 2.6 Agriculture R145 million 3.3 Construction R57 million 1.3 TOTAL R4 398 million 100 Source: Own calculations
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 13
Although agriculture seems to dominate most land use, most of the land that is under cultivation is used for subsistence purposes. Only a small percentage of the land is under commercial farming. Amongst others, the scarcity of water is the reason why agriculture is the least contributor to the GGP of the local economy. Moreover the status of land ownership and the fact that large percentage of the land in Tubatse is under land claims hampers the development of the agriculture sector.
Assessing the agriculture potential in the municipality could help unlock some of the factors that inhibit the full usage of the land. The horticulture and meat cluster development interventions proposed in this document can go a long way in securing the livelihoods of most of the rural poor and marginalised communities.
There is also the trade sector, which includes all kinds of retail businesses. This is, however, affected negatively by low employment levels, which impacts on the buying power of the people.
Tourism has a potential to boost the local economy but has not been fully exploited yet, and still needs coordination. Development potential interventions have been proposed in this study and if implemented successfully will assist in unlocking economic opportunities.
Besides the sectoral interventions, the LED Strategy advocates an integrated intervention mechanism that includes instruments such as skills development, infrastructure investments, enterprise development programmes, institutional reform, etc. to grow the economy of Tubatse.
Although desk-top analyses suggest that the Tubatse economy has grown at a rate of 4% in 2005, local observation suggests that is must be higher than the national average. In the absence of a local survey, it is therefore assumed that the current economic growth rate is 5%. The target for economic growth therefore becomes 6% per year from 2007 to 2009 and 6.5% from 2010 onwards.
3.1.2 Employment Creation
According to the census of 2001 (see table 3 below), there were 19,227 persons employed in Tubatse Municipality in that year and 30,678 persons who were actively looking for work but who could not find it. This means that according to the strict or official definition of unemployment, the unemployment rate in Tubatse in 2001 was 61%, compared to a similar 61% for Sekhukhune District as a whole and 36% in Limpopo.
In addition to the unemployed, there were 21,530 discouraged work seekers. These are people who would like to work, but no longer make any active effort to
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 14 find work, either as a result of previous disappointments or due the lack of resources to travel and apply for work.
The labour force according to the strict definition, excludes the discouraged work seekers. This number comes to 49,905 persons, which was 18.5% of the municipal population of 270,116 persons in 2001. The international rule of thumb regarding this relationship in developing areas is between 25% and 30%. The 18.5% relationship therefore seems artificially low.
When the discouraged work seekers are added, the expanded labour force is estimated as 71,435 persons, which is 26% of the population and exactly on the international norm. The expanded labour force is therefore considered to be a more accurate reflection of the actual labour supply situation in Tubatse Municipality.
According to the expanded definition, which includes discouraged work seekers, the unemployment situation is much worse at 73% in Tubatse, 72% in Sekhukhune and 49% in Limpopo.
Strict unemployment in Limpopo has improved slightly from 36% in 2001 to 30.1% in September 2005 (LFS). It is possible that the situation has also improved even more in Tubatse and the district unemployment rate is projected at between 54% and 57%, depending on the level of local recruitment. The issue of local unemployed persons being competent for the new jobs that are created is crucial in terms of local economic development. A level of up to 40% foreign labour is normal for mining companies in cases where local labour does not qualify in terms of job requirements or where local persons are unwilling to work underground. This issue is important not for the sake of promoting social tension within communities, but because it requires a particular focus in terms of skills development among unemployed persons.
The strict labour force in Tubatse is growing at a rate of approximately 650 persons per year (2002 -2014), whereas the expanded labour force is growing at 930 persons per year. These are the number of jobs that have to be created for the unemployment rate not to become worse according to the two different definitions. If a strict unemployment rate of 30% is to be achieved in 2014 (half of the 61% in 2001), then there should be 41,400 jobs in Tubatse Municipality by then (70% of 59,142). A growth rate of 1.3% is assumed for every year, based on population growth projections for the municipality that were commissioned from the Bureau for Market Research at UNISA. This implies 1700 new jobs every year from 2002 to 2014.
If the expanded (more realistic) definition is used, and a target of 36% is set for 2014 (half of 72%), then there should be 54,080 jobs in Tubatse Municipality by then (64% of 84,500). The expanded definition implies that 2,680 new jobs need to be created every year from 2002 to 2014.
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 15
Table 3: GTM Labour Market 2001 Employed 19227 2001 Unemployed 30678 2001 Strict Unemployment Rate 61% 2001 Strict Labour Force 49905 2001 Discouraged Workers 21530 2001 Expanded Labour Force 71435 2001 Expanded Unemployment Rate 73% 2014 Target for Expanded Unemployment Rate 36% 2007-2014 Target for Job Creation Per Year (expanded unemployment rate) 2680 2007-2014 Target for Job Creation Per Year (strict unemployment rate) 1700
The magnitude of the job creation need indicates that significant interventions are required for any meaningful impact to be made on the current high level of unemployment.
3.1.3 Poverty Reduction
According to the Limpopo PGDS, Sekhukhune District (of which Greater Tubatse is part thereof) is one of the areas with the highest number of people in poverty. This is attributed to the fact that this district draws people from the rural areas in search of work. Migrant labour and job expectations are therefore distorting the poverty profile of the district. This is, however, alarmingly high and it has a significant bearing on the level of human development.
Distribution of income is highly skewed. It is evident from table below that a very large proportion of households in Tubatse Municipality (42.7%) has no income and has to rely on relatives for handouts. Only 27.4% of households earned above R9,600 per year in 2001, which was the poverty datum line at the time. This is consistent with the high level of unemployment and is also symptomatic of the sectoral economic structure of Tubatse Municipality.
Table 4: Income Distribution in Tubatse Municipality; 2001 Income Level Total No income 23997 R1 - R4 800 4263 R4 801 - R9 600 12540 R9 601 - R19 200 6393 R19 201 - R38 400 4624 R38 401 - R76 800 2712 R76 801 - R153 600 1090 R153 601 - R307 200 371 R307 201 - R614 400 108 R614 401 - R1 228 800 33 R1 228 801 - R2 457 600 79 R2 457 601 and more 21 Total 56229 Source: Stats SA; Census 2001
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 16
Considering that the majority of the people of the area are unemployed, unskilled or semi-skilled and still live in poverty, this poses significant socio-economic challenges. The demographic and economic profile of the area in the baseline review assessment suggested that urgent programmes of action against poverty are required. This would include, firstly, attainment of the above goals of growing the economy that can generate jobs. Secondly, identification and description of poverty pockets in the area for maximum impact of suggested interventions. Informal sector and enterprise development programmes, social development interventions such as targeted skills development, education and health and institutional interventions are advocated and successful implementation thereof would address poverty in Tubatse.
In this regard poverty is viewed here as a multi-dimensional phenomenon requiring more than simply an income-based solution.
3.2 LED STRATEGY BUILDING BLOCKS
3.2.1 Sector development
The main objective of the proposed interventions under this programme is to encourage current and future sectoral expansion activities in the area and to develop an economic base, which could provide business and employment opportunities for the local community.
3.2.1.1 Mining cluster development
There is a pipeline of mining development projects in Tubatse Municipality that could increase the current platinum mines from two to twelve by 2015 and that could double the capacity of the three ferro-chrome smelters.
The strategic thrust behind mining cluster development is to adopt the cluster value-chain development approach, as a vehicle to raise the international competitiveness and investment rating of the mining industry in Tubatse Municipality in order to accelerate sustainable job creation and economic growth and to reduce poverty.
Proposed targets include:
• Creation of 700 jobs per jobs for the local community; • 20% local procurement within the mining supply chain by 2010; • Increased percentage contribution to GGP from 34.1% to 50%; • Accelerate economic growth from the current 5%1 to 6% between 2007 and 2009 and to 6.6% from 2010 onwards;
1 Although desk-top analyses suggest that the Tubatse economy has grown at a rate of 4% in 2005, local observation suggests that is must be higher than the national average. In the absence of a local survey, it is therefore assumed that the current economic growth rate is 5%. The target for economic growth therefore becomes 6% per year from 2007 to 2009 and 6.5% from 2010 onwards.
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 17
• Growth in sectoral investment by 5% per annum; and • Establishment of a dedicated Mining Cluster Working Group by July 2007.
Strategic interventions to achieve the abovementioned targets include:
• A Procurement/Business Development Support Plan linked to the proposed Steelpoort Mining Supply Park; • Mining Skills Development to promote the recruitability of local labour; • Facilitation of access to infrastructure for mining developments; and • Formation of a Mining Cluster Working Group to combine and integrate public and private sector contributions to development and to align the interventions of various public development institutions for greater impact.
The action plan for business development support for local emerging entrepreneurs to successfully participate in the mining supply chain must include the identification of products and services; the identification and screening of entrepreneurs and the facilitation of appropriate support services to the screened entrepreneurs. These support services refer to training, access to finance and access to business premises. Training refers to business skills, as well as technical skills that are appropriate to the particular product or service that is being traded.
It is essential that the skills development initiatives for mining cluster development should be extended to illiterate unemployed persons. The adult basic education and training programme of the Limpopo Department of Education in Tubatse should be considerably expanded. Training of unemployed persons by the Department of Labour in Limpopo should include an option that is relevant to mining. A more functional relationship needs to be facilitated between the mining SETA (MQA) and employers in order to improve access to and the efficient application of skills development levies within Tubatse Municipality. Finally, Tubatse Municipality should facilitate the nomination of a local person, preferably from the mining industry, to serve on the Limpopo Skills Development Forum that is chaired by the Department of Labour.
Roads rehabilitation, water supply, energy usage and housing were identified as key infrastructural needs for the mines. However, given the limited local budgets it is proposed that Tubatse engage effectively with infrastructure implementing agencies and further consider the development of public-private partnerships, where possible
Comprehensive action plans for business development support, skills development & infrastructure facilitation interventions are outlined in Phase 4 report.
The primary role of Tubatse Municipality is to establish a Mining Cluster Working Group whose purpose would be co-ordination of policy issues and integration of
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 18 operational issues among all stakeholders in support of accelerated mining development in Tubatse. These operational issues include infrastructure provision, spatial development, skills development and business development support for emerging entrepreneurs in the mining supply chain. The mandate of the proposed Working Group is discussed in detail in Phase 4 report.
The municipality should further consider a visit to the City of Sudbury in Northern Ontario, Canada in order to obtain first hand experience of international best practice with regard to mining cluster development.
3.2.1.2 Tourism cluster development
It is recommended that Tubatse Municipality should adopt two different strategies with regard to tourism cluster development. The first is to promote a small number of high-impact projects as identified in the Sekhukhune Tourism Development Strategy and the second is to promote small, local community tourism projects that can be financially sustainable.
Proposed targets include:
• Creation of 140 jobs per year for the local community; • Increased percentage contribution to GGP to 8%; • Accelerate economic growth from the current 5% to 6% between 2007 and 2009 and to 6.5% from 2010 onwards; • Growth in sectoral investment by 5% per annum; • Establishment of a dedicated Tourism Cluster Working Group by July 2007; and • Establishment of one tourism flagship project every year between 2007 and 2010.
Strategic interventions to achieve these targets include:
• The development of the Tjate Heritage Project; • Development of a mountain resort at Echo Caves; • Development of a tourist route that would link Tjate and Echo caves with smaller tourist attractions throughout Tubatse and with tourist routes outside Sekhukhune; and • Establishment of a tourism working group for Tubatse.
The proposed action plan for Tjate Heritage Project is that stakeholders (public and private) should be called together under the auspices of the Limpopo Heritage Resource Agency to facilitate the implementation of the Tjate Heritage Management Plan and to develop an economically viable model for the provision of infrastructure at this site.
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 19
The proposed action plan for the Echo Caves Mountain Resort is for Tubatse Municipality to arrange an exploratory discussion with the owners of the current facility at Echo Caves, with the Planning and Economic Development department of Sekhukhune District Municipality and with the Tourism Branch of the Limpopo Department of Economic Development, Environment and Tourism. The purpose of the exploratory discussion should be to establish the willingness of the current owner to participate in the development of an expanded mountain resort and escarpment adventure route as envisaged in the Sekhukhune District Tourism Development Strategy.
The Southern Drakensberg is a case study on sustainable and successful adventure tourism destination development from which Tubatse Municipality can learn from. Table mountain in Cape Town, Mount Kilimanjaro and The Blue Mountains near Sydney Australia, are also good examples to learn from. The evidence suggests that environmental impact has to be given particular attention.
The proposed action plan for Route Development is to appoint a suitable consultant to investigate, assess and recommend options for route development with Tjate Heritage Site and the Echo Caves Mountain Resort as two major anchor projects. Smaller tourist attractions, such as Mahubahube and Mankele (see previous planning documents), as well as other heritage sites, should be assessed from a feasibility point of view. The consultant should also prepare a management plan for the route in the event that a feasible route option can be developed. It is essential that the route should link with other tourist routes outside Tubatse Municipality.
A site visit to Kamoka Route (Sun Valley Tourism) should be considered, as it could be useful to assist Tubatse Municipality with the route development process. There are several other tourism route concepts to learn from. For example, Route 62 is probably the best case study of a successful route as a direct marketing drive for a particular geographical area.
3.2.1.3 Horticulture cluster development
The strategic thrust behind horticulture cluster development is to improve the competitiveness of this sub sector and to create opportunities for small emerging farmers.
Proposed targets include:
• Creation of 170 jobs per year for the local community • 20% procurement within the horticulture supply chain from local entrepreneurs by 2010 • Increased percentage contribution to GGP from 3.3% to 5%; • Accelerate economic growth from the current 5% to 6% between 2007 and 2009 and to 6.5% from 2010 onwards;
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• Growth in sectoral investment by 5% per annum; and • Establishment of a dedicated Horticulture Cluster Working Group by July 2007.
The proposed strategic interventions to achieve these targets include: • Mapping the local horticulture cluster value chain and identifying cluster opportunities for local enterprises; • Establishment of a Horticulture Cluster Working Group mandated to combine and integrate public and private sector contributions to development and to align the interventions of various public development institutions for greater impact • Integrating the progress that is made with horticulture cluster development in Tubatse with the local economic development plan for Sekhukhune District and with the Limpopo Growth and Development Strategy.
The action plan to map the horticulture value chain can be derived from the standard methodology for cluster development that is recommended in the PGDS. It requires the appointment of a competent consultant to undertake a study to map horticulture sub-sector value chain and to identify opportunities for local enterprises. Detailed study contents are outlined in Phase 4 report.
The action plan to form a horticulture work group is for Tubatse Municipality and the Tubatse Office of the Limpopo Department of Agriculture to invite all commodity groups in the municipal area to an information meeting where the cluster development process is explained and any information regarding the cluster mapping process is provided. The consultant for the horticulture mapping process should also be present. An interim working group should be elected or nominated after the information meeting. The task of the working group should be to deal pro-actively with the results of the cluster mapping process, that is promote the development of new opportunities, lobby for the removal of constraints, facilitate the provision of essential infrastructure and skills development programmes and build networks with other relevant organizations. The composition of the working group can change as the need arises and as the cluster development process gathers momentum.
The action plan for the integration of progress with regard to horticulture cluster development in Tubatse with that of Sekhukhune and for this to be reflected in the PGDS, is to request the Manager Planning and Economic Development at Sekhukhune District Municipality to participate in the horticulture cluster working group. This office will then be responsible for communication with the Office of the Premier regarding the PGDS.
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3.2.1.4 Meat cluster development
The strategic thrust informing meat cluster development is improvement of the competitiveness of this sub sector and to creation of opportunities for small emerging farmers.
Proposed targets include:
• Creation of 170 jobs per year for the local community • 20% procurement within the meat supply chain from local entrepreneurs by 2010 • Increased percentage contribution to GGP from 3.3% to 5%; • Accelerate economic growth from the current 5% to 6% between 2007 and 2009 and to 6.5% from 2010 onwards; • Growth in sectoral investment by 5% per annum; and • Establishment of a dedicated Meat Cluster Working Group by July 2007.
The proposed strategic interventions to achieve these targets are:
• Development of a Farmer Livestock Support Programme that focuses on cattle, goats and game production; • Assessing the feasibility of a Feed Production Facility and Feedlots; • Assessing the feasibility of a Meat Processing Centre/Abattoir
The main purpose of the livestock farmer support model should be to improve the productivity and competitiveness of cattle, goat and game farming in Tubatse Municipality. This requires exploration of farmer support models and establishment of a suitable combination of livestock farmer support activities that is appropriate for Tubatse.
The following five critical elements should be included in the model: 1) Balanced feed intake (hence the improved feed production referred to above) 2) Breeding cycle management (to improve effective reproduction) 3) Genetic improvement (to improve herd quality) 4) Water supply (to provide more drinking points for animals in communal areas) 5) Crime prevention (to remove the disincentive for livestock farming that arises from persistent livestock theft).
The proposed action plan for feed production and feedlots for each of these three, cattle, goats and game, is to assess the demand for feed and use of local raw materials (e.g. lucerne and sorghum) to produce feed for livestock requirements and commissioning a study that assesses the viability of a local fee production facility and feedlots.
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Still further down the value chain the feasibility of a local abattoir should be considered. Meat packaging and distribution options should be assessed and marketing channels should be evaluated in conjunction with commercial cattle farmers in Tubatse.
Tubatse Municipality should play a role by mobilising appropriate development assistance for support to emerging livestock farmers and facilitating the formation of a Meat Cluster Working Group. The task of this working group should also be to deal pro-actively with the results of the livestock farmer support process, that is promote the development of new opportunities, lobby for the removal of constraints, facilitate the provision of essential infrastructure and skills development programmes and build networks with other relevant organizations.
3.2.1.5 Nodal development
The proposed objective is to adopt the spatial hierarchy as proposed in spatial frameworks at the provincial, Sekhukhune District and Tubatse Municipality levels in order to promote nodes where manufacturing value-added activities can occur and where commercial facilities will be available to retain purchasing power in the local economy. It is also essential that sustainable communities should be promoted at these selected nodes, in the sense that residential property rights, employment opportunities, essential urban infrastructure, shopping and recreational facilities should all the available within a functional local environment.
Family residential property development and the provision of suitable recreational facilities are particularly important to encourage the permanent settlement of employees with their families. Mining growth points have a tendency to attract single employees who leave their families behind and migrate on a weekly basis. This has inherent social challenges, but also keeps the proportion of earnings that is circulated in the local economy at a minimum. Congestion in Burgersfort must also be addressed. The central business district has become so dysfunctional due to its inability to cope with the demands of growth, that new investment is probably being discouraged.
The proposed targets include:
• Creation of 240 jobs per year for the local community; • Accelerate economic growth from the current 5% to 6% between 2007 and 2009 and to 6.5% from 2010 onwards; and • Growth in investment by 5% per annum.
The proposed strategy is to develop nodal development plans as per the provincial, district and local SDF frameworks’ node priority/growth hierarchy and to appoint competent project managers to facilitate and co-ordinate the planning and implementation of all the infrastructure, residential, economic, social, spatial
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 23 and institutional aspects of development in the following nodes, particularly in the context of the cluster development proposals that have been made in this report.
Table 5: Higher Order Settlement Classification in Tubatse Municipality Settlement Classification Burgersfort Provincial Growth Point (1st order) Steelpoort District Growth Point Mecklenburg Municipal Growth Point Orighstad Municipal Growth Point Driekop Municipal Growth Point Batau-Praktiseer Population Concentration (2nd order) Ga Masha Population Concentration (2nd order) Kgautswana Third order service point Mophalema Third order service point Mampuru Third order service point Malokela Third order service point Source: Limpopo Spatial Rationale, 2002
The project managers should mobilize additional resources for this purpose through the nodal status of Sekhukhune District in terms of the Integrated and Sustainable Rural Development Strategy until all the standards for a provincial growth point are achieved as indicated in the Tubatse Spatial Development Framework.
A proper township establishment process has to be undertaken for the eight of the proposed nodes (excluding Burgersfort, Steelpoort and Orighstad). Township establishment processes should be done in terms of the relevant legislation to formalise the nodes for residential settlement and the business services that are associated with municipal growth points.
Considering the scarcity of land for economic and development purposes in the area, it is important that the municipality embark on a parallel process to design an effective land use management plan that should ensure that recommended interventions on nodal development are implemented successfully. This should be done in conjunction with current landowners (especially traditional leaders).
3.2.1.6 Informal sector development
The proposed development objective is to provide sustainable livelihood opportunities in the informal sector (second economy) for most of the people who cannot be accommodated in the formal sector (first economy).
The proposed targets are:
• Creation of 200 jobs per year for the local community; • Increased percentage contribution to GGP to 20% per annum; and
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• Accelerate economic growth from the current 5% to 6% between 2007 and 2009 and to 6.5% from 2009 onwards.
The proposed strategic intervention is to formulate and implement an informal sector development strategy in such a manner that every one of the 11 development nodes of Tubatse Municipality, as identified in the nodal development section above, has a designated informal activity operating area, with support services; and with opportunities for informal economy operators to make a successful transition to the formal economy.
3.2.2 Economic infrastructure support
Infrastructure development is identified in the IDP for Tubatse as a priority. Roads are vital for the transportation of goods, services, and local labour. While water infrastructure and resources constitute a primary means of production especially in agriculture and mining. Electricity is a means of production and enabler of economic activity in all sectors and there should be a reliable supply to ensure efficient production for business enterprises.
Proposed target include increased percentage of GGP spent on infrastructure by the public and private sectors to an average of between 8 and 10% per annum from 2007 until 2014.
3.2.2.1 Roads and Transport
The objective is to ensure good road access into and within the area as part of an economic strategy of upliftment and improvement.
Key interventions include (1) establishment of effective dialogue with Implementing Agencies such as Roads Agency Limpopo, SANRAL and the district municipality to ensure the prioritisation of the needs of GTM, (2) the development of an Integrated Road and Transport Plan to create linkages between road and other transport systems for Tubatse Municipality, and (3) consideration of rail infrastructure development as an alternative means of transportation, especially for freight.
In the short to medium term Tubatse Municipality should facilitate the upgrading of R37 (between Burgersfort and Polokwane) and R555 (between Burgersfort and Steelpoort). This should be a key priority for all economic infrastructure support interventions.
3.2.2.2 Water Supply
The objective is to provide uninterrupted water supply for residential and business use
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Proposed options for addressing the water issue include improving efficiency of water usage, water transfer schemes, development of groundwater, recycling of treated sewage effluent for industrial use and re-allocation of water from other uses through trading. Options that are obviously not feasible should not be considered further, while implementation of the most suitable options will need to be fast-tracked to meet the rapidly increasing demands.
Environmental Impact Assessments (EIA) of the feasible options, including a socio-economic impact assessment would have to be undertaken and consultation with DWAF should be prioritised to fund and implement these options.
The municipality should therefore work closely with DWAF and the GSDM as the water services authority for prioritisation of the uses as informed by LED strategy priorities. Promotion of partnerships between the municipality and the Local Government, Water & Related Services Sector and Construction Education & Training Authorities should further serve to equip local community and enterprises with the necessary skills to participate in the proposed water supply projects.
3.2.2.3 Electrification
The proposed intervention serves to ensure that the Municipality provides reliable and economical electricity for both residential and industrial use.
Tubatse Municipality must work closely with ESKOM to ensure that they prioritise uses that will unlock economic potential and contribute positively to social development. Preliminary investigations show that ESKOM is confident that it will have sufficient electricity supply for both economic and social purposes. In addition to residential uses, the municipality must ensure that health facilities and schools are connected to the national grid as this has long-term positive spin- offs.
3.2.2.4 Telecommunication
The aim is to improve the connectivity of the local area. As the very basic, access to voice services is important and must be addressed immediately followed by broadband connectivity as part of the long-term strategy.
The recommended way forward is for the municipality to keep up to date with the process of awarding of Under Serviced Area License (USAL) as it should in the long run be a solution to the connectivity problems.
Proposed actions to be pursued include: • Supporting ICT infrastructure development interventions; • Bargain with Telkom, Neotel, GSM network operators for better coverage of the area and for better prices.
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• Promote ICT based business opportunities in collaboration with public institutions such as the CSIR’s Meraka Institute. • Providing Multipurpose Community Information Centres that comprises internet, e-mail, telephones, etc.
3.2.2.5 Infrastructure Investment Plan
Infrastructure spending patterns in Tubatse are not always linked to or informed by local economic priorities. Whereas the large businesses, like the mines, can provide clear guidance with regard to their requirements such as water and the resulting decision to build De Hoop dam, the needs of the smaller businesses are not that visible. Therefore the infrastructure budgets need to be informed annually by the LED priorities of Tubatse Municipality.
It is proposed that the Municipality should invest in a detailed Infrastructure Investment Plan that would quantify the need for infrastructure, guided by this report and other frameworks. The proposed plan should conform to best practice for infrastructure investment and should support strategic thrusts as contained in other government programmes such as ASGISA, NSDP, GSDM LED Strategy and Limpopo GDS.
3.2.2.6 Enterprise development
The strategic thrust behind enterprise development in Tubatse is to formalise the organisation of informal and formal businesses in the municipality and to up-skill and improve the quality of offerings by local enterprises
Proposed interventions include facilitation to the establishment of a formal trade/business association and development of a Supplier Development Programme (SDP) that is informed by local area issues. The aim of the SDP would be to up-skill and improve the quality of offerings by the local enterprises (especially for identified procurement opportunities in different sectoral clusters).
3.2.3 Social development
The proposed interventions serve to equip the local community with relevant education and training and to further improve their well being so that they can actively participate in the local economy.
3.2.3.1 Education and skills development
The proposed skills development intervention serve to encourage the municipality to produce trained and competent workforce to take advantage of opportunities derived from various sectors in the local economy.
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The proposed strategic interventions include development of a Skills Development Strategy, consideration of an Employment & Skill Development Agency (ESDA) and youth and women empowerment development strategy.
The proposed course of action with regard to the Skills Development Strategy is to commission a study and to tap into underutilized resources that have been dedicated to the National Skills Development Strategy and to focus these resources on the project proposals that have been identified specifically for Greater Tubatse Municipality. This course of action should cover both the up- skilling of currently employed persons and appropriate training for unemployed persons.
This would require a closer collaboration with the relevant SETAs including, amongst others, the Mining Qualification Authority (MQA) Tourism and Hospitality SETA (THETA), Agricultural SETA (AgriSETA), Local Government SETA (LGSETA) and the Wholesale and Retail Education and Training Authority (WRSETA). Together with these SETAs, GTM and its local stakeholders should determine the training needs, and development mechanisms for meeting the training needs.
With regard to the proposed ESDA, the way forward is for Tubatse to prepare a pre-feasibility study together with the department of Labour so as to assess its developmental impact locally.
Youth and women empowerment is a priority issue in all government development policies as youth and women empowerment and youth development are critical to economic stability. The development of mentorship and support programmes that link the youth and women with skills to jobs or entrepreneurial support would serve as the way forward for Tubatse Municipality. Umsobomvu Youth Fund has established mentoring programmes countrywide and it should be the ideal institution to partner with in order to empower the local youth and women.
GTM must work closely with the Department of Education to ensure that educational problems are addressed holistically.
3.2.3.2 Housing
The purpose of the articulated housing intervention is to ensure that the local community is provided with proper housing. Secure housing is an IDP priority in the municipality as the housing backlogs are high and lack of access to land worsening.
It is proposed that Tubatse should develop a Housing Development Strategy to address the challenges faced by communities in particular at the entry level. Key to the strategy should be the resolution of the land issue to facilitate development. This would entail bringing landowners both private and public
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 28 around the table and getting their support for the strategy and showing how it is in their interest to release the land for development as failure to do so will lead to rapid increase of the informal sector
3.2.3.3 Health
The purpose of the advocated intervention is to encourage the municipality to ensure improved health services to the local population.
The recommended way forward is for the municipality to establish an effective dialogue with the provincial and the district health authorities with a view to jointly assessing local health facilities condition and recommending strategies to alleviate the challenges.
3.2.4 Institutional/governance
Dysfunctional and unclear regulations create high transaction costs for local businesses and possible investors. Municipalities need to support the local businesses and possible investors in creating an enabling environment for achieving their economic potential by offering a platform for businesses to have confidence in expanding and investing in Tubatse.
It is also important to address environmental requirements for the municipality. Development can have both positive and negative implications for the environment, a balance that needs management. Research shows that municipalities experiencing growth and development such as in Tubatse, face the challenges of the ‘brown’ issues agenda, such as air, soil, and waste pollution, noise, and traffic congestion. These have a direct and immediate effect on human health and safety, especially for the poor, and for business productivity.
Moreover, Greater Tubatse Municipality has limited financial resources. Yet this municipality is tasked with the provincial and district agenda of sustainably growing the local economy whilst improving the quality of life of its local population. It is therefore essential that the municipality should consider a sound local financial management plan that would support economic development.
3.2.4.1 Regulatory framework
The purpose of regulatory interventions is to ensure that there is administrative and regulatory flexibility to allow firms to adapt to relevant procedures and standards without incurring prohibitive costs.
The way forward is for Tubatse Municipality to undertake a local business enabling environment survey to identify and highlight policies and practices that hinder business development. The Municipality should further consult with other
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 29 government business regulatory organisations whose policies have an impact on the operations of local enterprises.
3.2.4.2 Waste Management Plan
The purpose of this institutional plan is to address pollution and possible threats to the environment.
The way forward is for the municipality to design a waste management plan. The purpose of such a plan would be to systematically formalise waste disposal in Tubatse, particularly at villages, so as to reduce environmental pollution. The plan should, among others, serve to identify highly affected areas and establish relevant sites for waste disposal at nodal points.
Furthermore, the community has to be educated on the use of sites through the use of, for example, an Environmental Awareness Campaign. Alternative methods of waste removal such as a community-based system should be considered. This has been proven to be a high impact initiative in that it enhances service delivery and create jobs at the same time.
3.2.4.3 Financial soundness and management
The aim is to grow the finances of the municipality and to develop the management of the municipality’s finances. The municipality is currently sustained through intergovernmental fiscal transfers and grants (comprising sixty five percent of budget revenue). There is a need for financial management capacity and information systems plan that will improve the tax base, through, for example, service fees (rates) and other charges for the area.
The proposed action plan is to commission a financial capacity building study for the municipality that will serve as guideline to mobilize and apply funds in an effective manner. The study should identify alternative means to finance capital projects from own revenue rather than reliance of the municipality upon grants.
Furthermore, creditworthiness is critical to support financial viability of the municipality, as it enables it to access market-based credit instruments to finance development. Due to the current situation of having a low revenue base the municipality would find it difficult to borrow in capital markets other than the public sector development finance institutions such as the DBSA. The municipality should consider inclusion of creditworthiness assessment in the proposed study to assist them with their status and develop an improvement strategy for the future.
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3.2.4.4 LED Directorate capacity building
The purpose is to develop the capacity of Tubatse Municipality LED Unit in order to implement and coordinate the LED strategy successfully. Internally, a dedicated Local Economic Development Directorate (reporting directly to the Municipal Manager) and an Interdepartmental Forum (to enhance LED implementation and avoid duplication) are proposed.
Externally, a Local Economic Development Forum is advocated as a broader stakeholder forum with the aim of providing input on municipal policies, strategies, delivery processes and other strategic programmes. The LED Forum would be assisted by sector working groups in Mining, Trade & SMMEs, Tourism and Agriculture development.
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SECTION 4: IMPLEMENTATION PLAN AND INSTITUTIONAL OPTIONS
The purpose of this section is to map the implementation path and advocate prioritisation of key projects to unlock development potential in Tubatse. Furthermore this section identifies institutions that are necessary to support the implementation of Greater Tubatse Municipality LED Strategy. An overview of internal and external institutional options is provided and the mandates and responsibilities relevant to each institutional arrangement are defined.
4.1 IMPLEMENTATION AND PRIORITISATION
Implementation of this LED strategy urges the need to establish the proposed institutional drivers. These establishments need to be accompanied by a political ambition to ensure success. This ambition can be initiated and developed through the inclusion of all interested and affected parties, stakeholders and role players during the planning and implementation phases.
By including all of these, a political will, interest and communication are stimulated which, all together will contribute to the success of the strategy.
Another important aspect for successful implementation is to ensure that all involved take ownership of the programmes and projects. Without the taking of ownership of a programme and/or project, success cannot be seen at the end of the tunnel. It is also important to incorporate the monitoring and evaluation elements of the strategy into the performance management system of Greater Tubatse Municipality, to ensure accountability and responsibility for implementation.
The process below provides general preliminary actions that are required to start implementation of the LED Strategy.
1. Finalization of project action plans (as detailed in Phase 4 report) by the responsible institution/official(s) 2. Risk assessment of projects 3. Final choices of projects for implementation 4. Establishment of the coordinating and organizational bodies for implementation 5. Determining the role, reporting mechanisms and funding for the coordinating institution/official (s)
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6. Setting up institutional mechanisms for implementation 7. Implementing the selected projects 8. Monitoring and evaluating implemented projects
The LED Strategy has identified projects that should be regarded as having highest priorities and should be addressed in the immediate future as depicted in the tables below. These projects have been identified as having the potential to have the largest immediate impact in the area and requires the involvement and facilitation from the Municipality to ensure increased economic development. The methodology used to prioritize the projects is comprehensively covered in Phase 3 report.
Table 6: Social, Economic and Institutional impact of Sector Development Projects Project Social Economic Institutional Total Rank Procurement Plan 80 100 85 265 Very High Mining Skills Development Plan 100 80 30 210 High Mining Infrastructure Support 100 95 85 280 Very High Tjate Heritage 70 90 20 180 Medium Echo Caves 70 90 20 180 Medium Route development 70 90 20 180 Medium Horticulture cluster mapping & 70 100 20 190 Medium opportunities Livestock FSP 70 100 30 200 High Feed Production & Feedlots 40 90 20 150 Medium Meat processing centre/Abattoir 40 100 20 160 Medium Urban Development Plans 70 100 65 235 High Informal Sector Development 90 100 45 235 High Strategy
Table 7: Social, Economic and Institutional impact of Economic Infrastructure Support Projects Project Social Economic Institutional Total Rank Integrated Road and Transport 30 90 100 220 High Plan Infrastructure Investment Plan 30 90 100 220 High Dialogue with Implementing 30 90 100 220 High Agencies Water Resources Development 70 75 75 220 High Supplier Development Programme 100 90 45 235 High ICT Infrastructure strategy 100 85 20 205 High Trade/Business Association 30 20 20 70 Low
Table 8 : Social, Economic and Institutional impact of Social Development Projects Project Social Economic Institutional Total Rank Skills Development Strategy 80 50 85 215 High Job Placement Agency 80 30 20 130 Medium Youth and Women Empowerment 80 50 20 150 Medium Plan Housing Development Strategy 30 30 100 160 Medium Dialogue with Health Authorities 30 90 100 220 High Dialogue with Education 30 90 100 220 High Authorities
Table 9: Social, Economic and Institutional impact of Institutional/Governance Reform Projects Project Social Economic Institutional Total Rank Business Enabling Environment 20 90 90 200 High Waste Management Plan 50 20 100 170 Medium
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Financial Soundness & 70 85 90 245 High Management LED Directorate Capacity Building 20 90 90 200 High
4.2 INSTITUTIONAL OPTIONS
4.2.1 Internal Arrangements
4.2.1.1 LED Directorate
It is proposed that the LED Unit be a Directorate on its own, reporting directly to the Office of the Municipal Manager. More importantly, as a strategic Directorate, it requires a Head/Director, who will be able to represent economic development issues in management and in other related structures effectively. It requires someone who will effectively mobilise resources to implement the strategic objectives of the LED Strategy, and also to drive the economic vision of the municipality as a whole, without him/her being overloaded with non-LED related issues.
The Director will be supported by two (2) technical experts who will serve as Unit Managers in Policy and Research Unit and Enterprise Support Unit. The former Unit will be mandated to (1) manage, coordinate and monitor economic related policies, (2) coordinate and commission socio-economic research, (3) identify LED constraints and opportunities and mitigating strategies, and (4) coordinate the monitoring and evaluation framework of the LED department. Two (2) coordinated would be required to serve within this Unit. The duties and responsibilities of officials required to serve within this Unit are comprehensively described in Annexure 5.
The mandate of the Enterprise Support Unit would be to (1) facilitate and coordinate all municipal LED related projects, (2) facilitate growth of agricultural and cooperative development projects, trade and SMMEs development, mining projects, and tourism sector, and (3) skills development.
Four (4) Sector-specific Development Officers would be required to serve within the Enterprise Support Unit. The duties and responsibilities of officials required to serve within this Unit are comprehensively described in Annexure 5.
4.2.1.2 Interdepartmental relations
The LED Directorate should also work closely together with other departments to guarantee the alignment of efforts and to avoid duplication of work. For example, Land Development, which deals with Spatial Development Frameworks (SDFs); Strategic Support Service Department, which manages, oversee and monitor IDP as well as maintenance and coordination of the intergovernmental relations; as
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 34 well as Technical Service department, which provides procurement services, infrastructure development and service delivery.
4.2.2 External Arrangements
4.2.2.1 LED Forum
This will be a formal structure consisting of key stakeholders from the mining, tourism, agriculture, trade and SMMEs and representatives from the local community, Tubatse Municipality, Sekhukhune District Municipality and Limpopo Provincial Government.
The proposed Sector/Sub sector Cluster Working Groups would be part of this Forum. Central to the goals of the Forum would be working towards achieving the alignment of different policies and programmes of various stakeholders for successfully implementation of Greater Tubatse Municipality LED Strategy
In a nutshell the Forum would:
• Function as broader stakeholder forum; • Identify economic development bottlenecks hindering the development of GTM’s economy; • Identify interventions to address those constraints; • Provide relevant direction and assistance to sectoral working groups; • Provide input on other municipal policies, strategies, and delivery processes, e.g. IDP, crime prevention plan, etc; • Meet twice a year to discuss economic related problems; • Serves as a growth coalition where matters hampering the local economy are discussed and resolutions sought.
The functions of the proposed working groups include:
• Serving as a stakeholder forum of the sector; • Identifying and communicating issues hampering business development of each sector in the GTM; • Identifying interventions to address those constraints; • Consulting with the broader LED Forum; • Developing and implementing the intervention strategies; • Participating in the implementation of all by-laws; • Establishing and maintaining partnerships to facilitate LED activities.
Members of the Mining Cluster Working Group should include:
• Departmental Managers for Local Economic Development and for Technical Services at Sekhukhune District Municipality,
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• Head of Technical Services at Tubatse Municipality • Representative of the Planning Division in the Office of the Premier in Limpopo, • Mining directorate in the Limpopo Department of Economic Development, Environment and Tourism, • Representative of the DME Provincial office in Limpopo, • DWAF planning manager for Sekhukhune District, • Department of Labour Employment and Skills Development Manager for Limpopo, • Steelpoort Producers Forum, • Sustainable Development Managers of all mines in Sekhukhune District, • Representative of Eskom, • Representative of Spoornet, • Representative of the Roads Agency Limpopo, • Representative of DBSA for Sekhukhune District, • Representative of Trade and Investment Limpopo for the mining sector, and • Representatives of business development support and finance institutions in Limpopo.
Members of the Agriculture Cluster Working Group should include:
• Department managers for Local Economic Development in GSDM and Tubatse • Representative of Limpopo Department of Agriculture • Representative of Greater Sekhukhune Department of Agriculture • Representative of commercial farmers in Tubatse • Representative of small emerging farmers in Tubatse • Representative of Trade and Investment Limpopo for agriculture sector • Representatives of business development support and finance institutions in Limpopo.
Members of the Tourism Cluster Working Group should include:
• Department managers for Local Economic Development in GSDM and Tubatse • Representative of Limpopo Dept of Arts & Culture, • EPWP Coordinator, • Limpopo Heritage Resource Agency, • Sekhukhune Royal House, • Representative of Limpopo Tourism Parks Board, • African Heritage Consultants, • Bapedi Heritage Development, • Representative of Limpopo Department of Economic Development, Environment and Tourism, and • Representative of Trade and Investment Limpopo for tourism sector.
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Members of the Trade & SMME Development Working Group should include:
• Representatives of business development support and finance institutions in Limpopo (e.g. LIBSA, SEDA, LIMDEV, etc.). • Department managers for Local Economic Development in GSDM and Tubatse • Representative of SMMEs in Tubatse
4.2.2.2 Intergovernmental relations
The facilitation of communication and cooperation between GTM and other spheres of government, particularly the district municipality is ineffective currently, and needs to be revived. The proposed LED Directorate has to work towards aligning its programmes to those of district, provincial and national government. In addition, sharing of information and expertise with other spheres of government should be advocated. It is advisable that Tubatse Municipality should commit itself to structures such as the District’s Intergovernmental Forum, LED Forum and other strategic forums.
4.3 RESPONSIBILITIES AND IMPLEMENTATION PARTNERS
The table below depicts the responsibilities and implementation partners of the proposed interventions as articulated in Greater Tubatse Municipality Local Economic Development Strategy.
Programmes/Projects Responsibility Implementing Partner(s) Sector development Procurement/Business Development Head of LED Mining Cluster Working Group Support Plan Trade & SMME Development & Support LED Resource Centre (Turfloop) Officer DPLG International Business Development Experts Skills Development Head of LED Mining Cluster Working Group Skills Development Officer Infrastructure Support Head of Technical Services Mining Cluster Working Group Tjate Heritage Head of LED Tourism Cluster Working Group Echo Caves Head of LED Tourism Cluster Working Group Tourism Development and Marketing Officer Route development Head of LED Tourism Cluster Working Group Tourism Development and Marketing Officer Cluster Mapping & Opportunities Head of LED Agriculture Cluster Working Group Agriculture and Cooperative Development Officer Livestock FSP Head of LED Agriculture Cluster Working Group Agriculture and Cooperative Development Officer Feed Production and Feedlots Head of LED Agriculture Cluster Working Group Agriculture and Cooperative Development Officer
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Meat Processing Centre Head of LED Agriculture Cluster Working Group Agriculture and Cooperative Development Officer Nodal Development Plans Head of LED Representative of Provincial and District DLGH Chief Town Planner Informal Sector Development Strategy Head of LED LED Resource Centre (Turfloop) Trade and SMME Development & Support Trade & SMME Development Working Group Officer Economic Infrastructure Support Dialogue with Implementing Agencies Head of Technical Services Representative of Limpopo Dept of Transport, SANRAL, Road Agency Limpopo, and GSDM Integrated Road & Transportation Plan Head of Technical Services Representative of Limpopo DoT, SANRAL, Road Agency Limpopo, GSDM Water Sources Head of Technical Services Representative of DWAF, GSDM Dialogue with ESKOM Head of Technical Services Representative of ESKOM, GSDM ICT Infrastructure Strategy Head of Technical Services Representative of Limpopo Department of Communications, ICASA Infrastructure Investment Plan Head of Technical Services and LED Representative of GSDM, DBSA Business Association Head of LED Representatives of business development support Trade and SMME Development & Support and finance institutions in Limpopo (e.g. LIBSA, Officer SEDA, LIMDEV, etc.).
Supplier Development Programme Head of LED Representatives of business development support Trade and SMME Development & Support and finance institutions in Limpopo (e.g. LIBSA, Officer SEDA, LIMDEV, etc.).
Social Development Skills Development Strategy Head of LED Representatives of provincial and district Skills Development Officer Department of Labour Employment & Skills Development Head of LED Representatives of provincial and district Agency Skills Development Officer Department of Labour Youth and Women Empowerment Head of LED Representatives of provincial and district Skills Development Officer Department of Labour Housing Development Strategy Head of Technical Services and LED Representatives of provincial and district DPLGH Dialogue with Department of Health Head of Technical Services and LED Representatives of provincial and district Department of Health Dialogue with Department of Head of Technical Services and LED Representatives of provincial and district Education & SETAs Skills Development Officer Department of Education and SETAs Institutional/Governance Business Survey Head of LED Representatives of business development support Trade and SMME Development & Support and finance institutions in Limpopo (e.g. LIBSA, Officer SEDA, LIMDEV, etc.). Waste Management Plan Head of Technical Services and LED Representatives of Limpopo DEDET, DWAF Financial Capacity Building Plan Chief Financial Officer Representative of the GSDM’s Department of Finance LED Directorate Capacity Building Municipal Manager Procurement Dynamics Head of ELD
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 38
Annexure: Sector Development Mapping
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 LIMPOPO PROVINCE w n g o u Lorraine M 073K T 602K T 0 0
4 1 Bism arck 6 2 3 30 0 174K T Haakdoornhoek 083KT 081KT0 409K S 094KT 1 Metz 0 Ro stok 0 090K T Moltke0 37 41 0 411K S 0 075K T Rostok 0 Jobs kop 0 Magope 078K T 96 Dublin 086K T Hounslow Bulw er 410K SRostok Ext 1 Ma hlabeng 0 Sofa ya 40 092KT 080K0 T 077KT Madeira Me tz 176K T 0 1 0 Ma hlab eng E xt 1 Mphape 2 Jagdlust 23 Mm asikwe Bokhalva 418KS Mo eijelijk 26 0 39 1 78 Legend Sentlhane 12 0 Wintersveld Stellenboch 24 1012 0 6 27 Mo etlad imo LCH Matsoong 2 417K S Lekg w areng 091K T 082K T 0 079K T 5 Enable 38 Zeekoegat Ramallane Ext 084KT Mo tsane 84 98 4 0 0 Ce re s Gibraltar 1 175K T 421K S 0 Sentlhane Ext Mo sola 28 42 Tsib eng B Rama llane 085K0 T 0 Strasburg 13 3 Enable 095K0 T Mo tsan e Ext 1 Lekg w areng 7 25 11 2 97 Moe412KS ijeluk0 Ma redi Motsan e Ext 2 105K T Sefikeng LCH 104K T 0 21 Tsw e re ng 17 1920 69 Tshibeng 18 Turk ey Zone 3 E xt. London Monam et san a 096K T Ma re di E x t 1 Ostend0 16 Ba zaine 0 Mankele 915 Lon don Ha ben g Seh witin g 1 Worcester 194K T 192K0 T Ga-Motene 22 Makgaung Tu rk ey Zo ne2 2 Roads M 1 o n Ra dim pshe 0 a m Ledingw e e ts Tu rk ey Z o ne 4 i Dithabaneng Modubeng Fin ale Gravel Roads 0 Mo nam etsi Ga-Mokgotho Motloulela Pitsaneng Turk ey Zo ne 3 i Worcester 200KT Middelpunt Zw artk op p ies 0 p Buts hana e r Um loe an ess tad Dithabaneng Ext a iv i Main Roads 0 Seokodibeng Sebepe 099K T l 195K T Fin ale n ts r 420K S 413K S Senyath o h 0 lifa 097K T a 0 O 419K S 1 0 Tu rkey Zone 1 606162 m Th e Elm s 56 575859 Dams Ga-Mmamogolo lo Mo elalane 1 5455 Brak fon tein 0 o 199K T 53 Ga-Mokgotho 52 41 42 Ga-Phasha Legab eng Turkey M 40 464K0 S Ts id in ts i s e 0 36 35 Rivers ot 106KT 1 3938 37 Ga-Selepe Klipfontein M Streatham 21 Seokodibeng Mo shira 0 Maadisw ane Lefahla 261K0 T19 20 098K T 0 14 Main Farms 465K S 100K T Santen g 17 0 16 15 Li ve rp o o l 0 Th e O a ks Him ala ya 0 113K T Th e O aks 202K T Ga-Manotwane Th e W illo w s 198K T 9 Farm Divisions 463K S Mo sotsi Ga-Mampa 0 0 Malokela Ma retlwaneng Len kw aneng Sedowa 0 Communities 0 196KT Pasc h as Kra al 0 Pou ng Sadow a Th e W illo w s 8 273K T 466K S1 Bots habelo 110KT 0 0 Local M unicipalities 1 197K0 T 112KT 0 Mashegeng 6 7 Sehuny ane Serorong 1 1 District Municipal Boundaries Zw itserland Paschaskraal 2 0 Pen ge 9 5 604K T 3 Sekitlo ng 0 19 Margate 0 Plaseng 218KT 5 473K S 0 CROWN LANDOW 2118 Avo ca Paschaskraa l Ext 1 108K T 16 7 8 1 Dublin 1 257K T Provincial Boundaries 472K S Dithwa iing Ma bins A Ga-Makgopa Penge Rive rs ide Twickenham Magakala 0 Edinburgh 216K T 0 107K T 1 0 219KT 10 Sk ild e rk ra ns 1 Ga-Makgopa Ext 1 0 109K T 0 Rolfontein 0 217K T 232K T 201KT 120K T Ann esley De K a mp Dipururung 0 126K T Old Weltevrede Myn 507KS 114K0 T Magakala Ext 1 Sha kun g 0 Ma tsiri 0 Morapaneng 233K T Tw ickenham Sehlabeng 0 0 130K T Mabins B 0 Ma kgake 122KT0 Manutsa0 Fesant Laagte Platinum M ine Ga-Kgwete 0 Callais 115K T Ga-Masete Ext 1 W eltevreden 0 506KS 226KT 0 Ba lm ora l Mantopi 220K T 1 1 Zamenloop 230KT 508K S Dito be leng Ga-Masete 0 134K T 0 Dith abaneng Diepkloof 0 Anla ge Dun st able 2 Ga-Mashabela 125KT 2 0 Fochabers Lepelle 225K T Malekskraal 0 129KT Ta un g 509KS Pidima 0 Swale Ma otsi 117KT 221KT 0 Quartzhill Ga-Mashishi 121K T 1 0 Edendale Zonneschyn 0 Ga-Moraba Makopa 542K S Sekopu ng Mo rgen zon Kromelleboog On verw acht Che dle Mo dimo lle 124K T Perkeo223K T 0 128K T 132K T Ta un g Ext 2 Ma lekgwara na Ma kopa Mantsa kan e 135K T 137KT 0 116K T Mohlop e Masehw aneng 0 0 Ts w e re ng 0 0 Kranskloof Godwinton Magnets Vlakte Tjate Heritage Project 1 Ma nts a kan e E x t 1 Ta ung E xt 1 0 Ga-Podile Motshana 0 Ma pula nen g 541KS0 Matsaka ne Sekopung Ext 1 131K T 136KT Tsw e nyan e Mosego Ma nyaka 0 0 Mafarafara 0 Patricroft Tid in titsa ne Ma gab aneng Ga-Makofane Makotaseng 1 Makgwaren g Madikane 222K T Frankfort Nooiigedacht STEENV ELD Nt swar ne ng 123K0 T 227K T 0 229K T 1 118KT 0 260K T Mafarafara E xt 1 Didsbury Ga-Sepeke 119KT Ga-Maapea Leb oe ng 0 Matadi Montwan eng 1 Matoko mane 405KT Phiring Ext 1 0 Lekgw areng 0 401K T 543K S Ga-Selala 0 0 0 0 Mo hlaletsi Ext 904KS 0 1 266K T 267KT 0 Chorlton Dith olon g Ga-Seroka Fe rn klo o f 0 Mo kobola Motsepulan a Haakdoorn Hoek 0 Phiring1 Ext 2 539K S 249KT 250K T Legab eng Makopu ng 256K T 0 1 262K T Makgalane 0 1 Ca lifornia sterks pru it 0 268K T 412K T Tjate M ine 228K T Phiring M Mabotsha 0 0 o 253KT 0 404K T 0 h Ga-Maroga Ext Motlolo 0 264K2 T la 4 2 l Seuwe 259K T Ma hlash i 3 e 0 Ga-Modupi 3 Malaen eng Ext 1 CLE R M ON T BLYDERIVIERPO ORT t s Theronhill 263KT 2 i 2 544K S Diphale Ga-Mahlokwane Pretoria Farm 414KT 595K T Mabelane - Mafogo Th usa nan g Ma le an eng LC H 413KT Ga-Phahla 8 20 Manoge 0 Ga-Makhwae 258KT 2 265KT Ga-Maroga 0 9 Marareng Masehleng KL IPFO N TE INH O EKM a ra re n g L C H Ga-Riba 1 403K0 T 0 M a ru la P la tin um M in e Ga-Mapea 0 Kgotlopong 407K T 2 1 RIETV LE Y 252KT Makgop a Ga-Oria AS A Me tals1 3 Ga-Motodi 27 Ma laeneng 1 Stas 413K T Mashilave le Chrome Smelter Makgwareng 0 0 2 Alverton 0 3 6 BRANDDRAAI 283K T 2 29 409KT 8 Sekiti 275KT 270KT 28 0 5 4 1 4 Ga-Khowane 274KT0 406KT 2 Fetakgomo Swale 0 23 3 255KT 13 1617 12 Parys 0 Drieko p Praktiseer 0 1415 1 3 272KT 11 18 2 Shenyaneng 0 Ma golego Mo kutung 21 779K S 254KT Crossin g 1 Mo pha lem a 13 Mooiho ek Pulaseng 407K T 19 Matibidi (45 0) Nkosi 282K T Th abaneng 271KT0 0 2 0 VILJOENS HOO P Mo tlailane 20 2 284K T 0 ASA Metals Dith abaneng 5 15 1 2 Ma akgong ywane Ga-Kobe 276KT0 301K0 T Dinotsi Ferrochrom e Sm elter HONINGNESTKRANS 4 1 Ma sakeng Manaw a nen g 278KT 277K T Bothashoek 408KT Ma tibidi (45 1) 0 r 10 BO VE N0 OP Sehlaku 3 303K T 14 16 3 0 Ga-Maeseng SUFFOLK0 Klein Drakensberg 5 M a le g a le Mo hlake PERTH 440KT 411KT ELANDSFONTEIN Mathibeng Ma shibishane 1 300K T 0 7 Ma tibidi (45 4) Ga-Mam phahlane Riba C ross 3 9 0 Escarpment WAKKERSDAL Balotsaneng 4 435KT Ma dibaneng 296KT 296KT4 Ma tibidi (45 6) 436K T 0 Ga-Manoke 12 10 16 0 Ma tibidi (45 3) 285K T 1 STEELPOO RTSDRIFT 9 0 M HENDRIKSPLAATS 278K T 437KT Matibidi (455) 5 2 ROODEKRANS Sebitsane Mangin eng Leolo oo 0 2 14 M a tibidi (45 7) p 281K T 0 11 0 1 e Tsa tan e e 298KT 438KT L ep ellan ts Mandela Ma sham th an e Matibidi (45 8) Geluks Lo cation A Difa1 ga te i AAP IESD O OR N D R AA I 1 Maseleseleng FAUGHA BALLAGH Kgautswa na 10 1 2 Matibidi (45 9) 30369Kilometers Tsatane Ext 1 Ga-Mokadi 6 306K T Magem en g 9 3 0 2 13 HAAKDOORNDRAAI Sekele 1 11 3 18 17 0 GELUKS LOCATION 13 25 0 1 1 8 5 15 0 208 THIONVILLE 25 439K T Ga-Maila Mapitsane 291KT Modikwa Platinum Mine 3 Bata u 4 26 0 Korenvelden 0 APIES BOO MEN 7 2 DR E SD EN STRYDFONTEIN8 290K T 24 RO OD E PO ORT Ma tibidi (46 0) Ho epa krantz ONVERWACHT Sam cor Res iden ts 6 305KT DONHUR 442K T 6 LANG EN SMAL 0 295K T BUR0 G1 ER SFO RT 0 304K T 308K0 T 0 448K T Ramp he lane 292K T 8 24 0 5 3 Ma ru la ne ng Mo dikets i Dise sane 1 0 20 449KT e r 7 17141521 441K T 0 1 Ma nga neng 0 vi 16 Scale 1 : 150 000 5 ri 3LE EU W V AL2 L EI 10 16 17 3 4 t 0 0 1 or 8 28 JED D O 0 o 19 0 Ga-Magolego Ma timatsatsi lp 297K T 111 0 e MOOIFONTEIN12 10 BUFFELSFONTEIN t e BUF FELS D RIFT S 22 452K T Mo lapong 0 313K T Burge rsfort OHRIGSTAD 291 195 2119 323KT0 2 DO OR NB O SC H 311K0 T 1 4 FRAAIUITZICHT 1 1 443K T 4 2 294KT 6 477KT N 317K T 2 290 313 3 2 LO N G S IG H T 0 235 315 0 Masite Limpopo 0 1 316 8 GRANITE HILL G a-Mokgoadi 307K T 295 Ka-M abule Winterveld Mine Vyehoek Dam 3 444K T 5 WITGATBOO M 0 289 314 7 Sekhukhune0 316K T LUNCARTY 294 Leg oto ng 0 0 330 446K1 T 317 0 WINTERVELD293KT KLE INF O NTE IN 288 254246247 207 204 2 RU S HOLM E 0 328 250115 SMUTSFIELD DOORNBOOM 0 287 240 93 24911430 251 0 451KT 6 310K T 450K T 285 252253260 32990 62 318 478K T Ga-Mohlala 1 238239 241 6061 0 Tubatse 11 STERKFONTEIN 312K T 273 97 59108100 Mapodile 2 323237 58109 7229 319 Jane Furse 105 286 236265 5657 71 232233 1 10 1147 318K5 T 1 0 266 67686970 28 230 320 447K0 T Makhudutamaga Stoking 14 1412 5 ELANDSDOORN 459K T 99 52535455 6566 299 Ga-Sekele 325K0 T EERS TE GE LUK 7 309K T 495051 229 322 8 GLENO RA 267 4748 227 228 KASP ERSNE K VAALHOEK 1 STEELP OO RT 12 3 3 Steelpoort 2 0 341K T 212224 226 321 327K T 0 223211 225 0 Scho onoord 324K T 0 339K T 0 340 222120 474K0 T CATERHAM 282 341 220221 481K T 218 219344 0 344K T 5 Orighstad Emk hondw eni Tokakgomo A 25 4 123 304 r 206 303 e 280 140269113 140 i 2 Ma pod ile LCH 2 Tubatse Ferrochrome 270 v 1 109 i NORMADALE 6 7 111 305 r 278 46142 OHRIGSTAD k Sm elter 338KT1 514 460KT 0 215 271 1811981011 483K T 482K T 493K T Ga-Phasha 16 277 9 1213 e 15 o KLO NDYKE0 Locality Maps 4 216 31 To kakgom o E xt 6 1 h 3 8 336 30 00SACRAM ENTO0 CREE K Sopeyana 3 Lanex Chrome Mine1 9 14 RIET FON TE IN 32 e 1 13 0 y 492KT 2 V Ga-Mo ga sho a S enkg apudi 10 9 345K0 T 10 OLIFANTSPOORTJE 11 340K T 0 494K T 0 10 0 ELDORADO 329K T 332K T Steelpoort Chrome Mine 12 3 485KT33 486K0 T 0 319K T 487KT 490KT0 HE RM AN S B UR G 4 2 17 LOUISEVILLE GROOTBOOM 0 2 VRAAIUITZICHT 0 25 495K T 1 5 0 0 0 GOUDMYN 7 0 519K S Tsopaneng 0 1 336K T 1 343KT 348KT 491KT 5 4 5 33 1 337K T 1 PRINS OLIER 0 14 MAGSVILLE Ma kgeru 2 354K T 6 STERKSTROO M 347K T 2 Grootboom 7 0 4 333K29 T 346K0 T 1 UIT KOM S T 1 489KT Ga-Mogashoa Manamane 0 3 WILDEBE ESTKRAAL 11 352K1 T 0 Vhembe Ga-Ratau 330K T 1 10 1 Platinum 23 6 2 488KT0 3 Ma mpuru 4 1 24 KL IPK LO OF 5 1 16 17PARCEL15 IDENTIFIER 74 484KT 515KT FRANKFORT 0 11 5 18 14 331K T 19 10 5 2 12 15 16 2 12 6 ANNEX GROOTBOOM 21 20 BE T'EL 509KT 513K S 30 0 5 0 19 Boschpoort 13 6 21 1 0 7 22 8 11 Spitskop14 Platinum BO SCH H O EK 843KS 512K0 S 0 8 335KT 6 2 WELTEVREDEN 28 BERGHOEK WILDEBE ESKRAAL 4 0 23 25 514K T 0 0 29 15 9 431K T 26 24 0 ROTUNDA CREEK 19 Annex A DO OR NH O EK 349K0 T LE D OV INE 0 16 356K T Boerboomskraal WINTERHOEK 2 516K T 17 364K T Xstrate Ferrochrome27 JACKTON0 5 1 510K T 507KT Bots hab elo 20 17 355K T 393K T 3 10 9 3 4 0 350K0 T 20 8 21212Sm elter 21 0 0 BO ER B O OM K R AA L3 5 1 0 7 0 Capricorn 4 Mantlhe nya ne 18 353K T Mopani 1 78 2 362K2 11 T 159 22 SPITSKOP 0 40 12 31 VYG EBO OM 528K T Ironstone 10 Kennedy's Vale8 0 KLIPPLAATDRIFT 37 0 Tw eefontein Ga-Malaka B Mampuru E xt 1 9 25 19 22 23 1 21 21 BLA C KH ILL LED Proposals: 13 28 KENNEDY'S VALE 333K T 399KT 518KT 11 19 512K0 T 847K0 S 1 24 3032 7 10 511K T 0 848K S 363KT 25 6 7 12 24 7 1 8 0 527K T 361KT 1 1 20 1 RUSTPLAATS VITO WN 363K T 22 25 389K6 T DE BA D 9 3334223536 KRUG ERS HO OP 3 Maphoph a 14 2 1 1024 11 522K T 0 26 5 4 0 Waterberg MOOIMEISJESFONTEIN 0 396KT 48 692523 Ga-Mphana 17 WILDEBEESTHO1 EK MOOIHOEK 10 32 3 13 1. M ining Cluster 0 3 0 7 0 6 9 521K1 T 2813 Ga-Malaka 1615 7 11 7 0 21 5 3 397K T 17 39 0 Dr. Eiselen Dam 362K T KLIPPUNT 1 8 42 27 1 526K T Tsa kan e BE LVED E R E 8 18 2918 Sekhukhune 365K T 34 2 357K T 4 524K T VAN DER MERWES REEF Pipeline0 of M ining Projects 2006 2 0 33 3 18 5 15 Ga-Ratau 6 0 BE R GFO NT E IN 9 24 1532 14 882KS0 27 0 12 4 LIS S AB O N 2 26 9 4 25 386K T MOOIPLAATS 26 Ga-R antho Ga-Malekana 2 383K T 39 43 14 12 1 Skoonplaas (thabaAdvanced Chweu Lm) Exploration 40 395KT 6 16 Tw eefontein C hrome M ine 2 8 3 1 0 1 41 0 1 4 525KT 43 Goedgedacht 17 1 523K T 545KT 0 Ga-Maepa SCHUINS 5 0 11 MORGENZON Ga-Masha 9 388KT 18 1 12 Pilgrim's Rest Tpa Fea sibility0 Stud y 878K S 3 1 378KT 42 RIETV ALEY 13 13 8 1 360KT 10 BUFFELSVLEY 14 15 1 15 KL IPH E U VEL 1 10 390K T 2 4 FRISCHGEWAAGD 16 549K T 42 DR IEK O P 0 11 ZW A K W A TE R 10 2 1 0 2 3 0 15 6 Operational Aapjesboom884KS 11 0 15 5 1 3 20 21 Koto llo 1 0 28 3 12 7 PEACH TREE 359K T 377KT 21 VLAKFONTEIN 1 18 546K T 0 8 10 27 544K T 883K S 1 1 13 12 2 14 Prefeasibility Study 0 4 19 9 520KT 11 19 PONIES KRANS 0 2 21 5 10 0 6 30 O RIETV4 ALY 17 16 2 3 ROZENKRANZ h 543K T Maseven Hlalane kahle TU S SC H EN -IN 4 15 r 1 0 0 ig U nder C onstru ction 5 0 380KT0 1 s 547K T 5 10 6 GOEDEVOORUITZICHT 31 2723 24 3 548K T t 0 8 21 a 0 Pata ntswane 0 Kalkfonte in 2 2 7 d r 2 8 17 10261 iv 0 880K S 9 6 21258 14 i 561KT Tubatse Local Municipality 9 0 23 16 29 18 GOEDGEDACHT553KT e 0 7 2 7 32 13 r 2 Roodepoort 0 5 394K T 19 0 GROOTFONTEINBERG 2 4 2 KRUGERSPOST 6 NA AU W P OO R T 4 2 6 20 1 3 KALKFONTEIN 8 0 3 3 17 550K T 28 KR A N SK LOO F 555K T 23 Lekorokorw aneng 367K T 0 9 0 OLIFANTSHOEK 32 1 Tw o R iv ers Platinum 1 387KT S 36 13 554KT BREYTENBACHSKRAAL 0 DE G ROO TEB OO M 384K T 0 p 16 2. Horticulture Cluster 8 Buffelsho ek 1 e Ohrigstad Dam 0 2 Lehlakong DW ARS RIVIER Bu ffelklo3 of D am k 556K T 1 373K T 6 m BA BER b 2 4 Groblersdal 3 fd a 11 o 1 Buffelsho ek 372K T 15 0 lo o 3 1 o 5 2827 0 sk 15 10 m 26 9 562K T 10 fe l 7 10 0 1 25 1 Ohrigstad River V alley 12 u f r 0 CO N C OR D IA 375K T B iv 14KL IPFO N TE IN 11 1 Eenzaam875K S 1 0 9 8 4 i e 16 GROO TFONTEIN OPENAF r 12 15 400K T 3 35 13 2 560K T 3 8 2 6 9 NO OITGE D AC H T 14 4 0 Spekboom River Valley 11 391KT 4 30 2 1 385K5 T 21 8 37 24 15 4 4 1 0 392KT0 16 5 O 13 2 3 BUFFELKLOO F 20 17 6 3 13 5 29 24 18 h 4 Olifants River 2526 6 r 0 382K T 32 2728 6 i 7 3 2 4 65 30 3 10 g WELGEVONDEN 8 4 s t 1 368K T 9 2112 21 a Mototolo Platinum 10 d 0 9JT ROODEWALSHOEK 22 BUFFELS HOEK r 23 i RICHMOND0 11JT1 17JT4 2 7 SPEKBOOMDRIFT31 19 v 5 BENDIGO HEIGHTS 551KT 20 i 3. M eat Cluster 1 12 16 5 VROEGG ENOEG e 2 1 THO RNCLIFFE 1 370KT 0 552K0 T 36 2 r 559KT 374KT 18 22JT 15 0 0 1 161718 STEELP OO RTP ARK 23 24 19202122 152KT0 PAARDEKRAAL 15 8 28 23 Entire M unicipal Area 1 9 13 19 2 1 7 24 KLIPR O TS 4 19 10 11 21 3 2 29 27 26 558K T 366K T 11 25 24JT 34 30 25 158JT 0 TUBATSE M UNICIPALITY 37 ST. GEORGE MAREESBURG 19 35 33 31 104 0 26 BO OM PLAATS 2 32 1 2 8JT 14 12 30 41 40 36 0 t eel po ortr iv ie r HE LEN A 13 15 0 3 39 38106 IN -D E -D IE PT E S 2JT 0 8 0 06JT Mareesburg Platinum 29JT 8 9 81 43 3 4. TourismTW E EF O N T EIN 10 27 3 4 27JT3 80 LED Proposals 1 1 0 82 7942 44 164J T UNALIENATED0JT STATE LAND 83 787 69 3 0 00167JT MODDERSPRUIT5 28 GOEDEVERWACHTING 21 STEYNS VERWACHT 2 5 8414 70 68 47 0 BAKERS BLISS 2 9 LE ID E N B UR91 G 85 77 71 0 0 9 6 0 9089 76 169JT r Tjate H eritage Project 3 7 13JT 22 88 75 64 165J T 0 87 74 73 72 66 65 6362 Everest North 21JT 23 1 28JT 92 86 101 2 2 4 24 26JT2 100 61 NATALSHOOP r iv ier 5 3 7 93 99 60 B ly de Base Data: HE R M AN S DAL Sylvania 3 25MOSTERTHOEK16 KLE INP3 LAATS 97 94 11 59 2 2 26 12 11 10 96 9 58 r Klein Drakensberg Escarpment 27 13 99895 103 HARTEBEE STVLAKTE 0 39 18JT 28 25JT 17 14 5756 151J T 4 3JT VYG ENHOE K 7 1 29 20 1 107 6 54 DIEP GE ZET 30 Skhila 53 153J1 T 163J T WATERVAL 10JT1 31 15 8 7 102 4 55 5150 1 Limpopo Province DER BROCHEN 1 22 32 110 52 4948 1 168J T 6 23 33 122 POTLOO DSP RUIT 102 FINSBURY 1 0 6 34 0 6 5 114 0 WALHALLA 7JT 0 1817 35 4 30JT1 2 20 19 36 21 3 5 156J T BERGKANT 37 Kellysville LYDENBURG 3 Department of W ater Affairs and Forestry 1JT 9 21 4 Der Brochen Platinum 41JT 12 38 51 116 5. N odal Developm ent 1 5 0 3 26 3 39 2 1 88 0 0 HE B R ON 4 40 42813 36 13 19 18 0 83 8 5 29 35 40 PICARDIE 254 12 16 26 50 87 59 Lyde nb urg 0 Planning and Information 5JT 27 10 11 12 TOWNLANDS81 OF7 LYDENBURG41 MOUNT PROSPECT0 4 13 11 9 39 23 162JT 0 255 256 1 BO SCH FON TEIN 25 10 118 39 159J T Sabie 0 0 12JT 14 32 24 0 818 86 12311939 75 Provincial Growth Point 257 JOHANNESBERG 33 9 0 2 31JT 161JT CE YL O N UITVALG7 R ON D 11 15JT11 Ma shishin g 98533874 PAARDEPLAATS1 0 45JT 15 2 8 5 3 115 20376231636439 MOUNTAIN TOP 197JT 4 141 Der Bochem Dam 4243 677854982221 52 76 154JT0 LITTLE JOKER 1 0 501JS 258 1 2 30 1538 20 Lydenburg E xt2 48 7270 1600000126JT766 0 6 12 1 7 16 20JT6 20 3642 18 79 2934 Compiled By: 0 142 259 34 31 19JT 1 23 55 99148 500J S PIETERSBURG BO OY SE NDAL 5 90 157JT0 District Growth Point 260 262 0 BE ETGE K R AA L 17 24 57 0 101 261 43JT0 4 8 15 255100102101574013095 121 0 0 SABIE CH IEF TAIN S PLA IN 44JT 0 14 Lydenburg E xt6 1521699541035 1245156 124 FO R M O S A 201JTLO T E MAPOCHSGRONDE 264 1 SCHAAPKRAAL 28 7 3130 610498 125 44 263 Booysendal Platinum 2 109117 70 6863 124 46 47 Date: 21 June 2007 144 0 42JT KOPPIESKRAAL 9 24 123 72 119 SMITSKUILEN 203J T 252 46JT 1 14 71 60105 6988 STERKSPRUIT M unicip al G row th P oin t 119 951J0 S 509J0 S 145 265 1 0 10 0 37 2 4 7473 20 0 270 39JT 11 7 13 32 92 24 206JT 0 Drawing no.: 2 118117 504JS0 253 0 271 8 2526 7 75 7677106 61 93 23 33JT 0 13 0 116 2 511J0 S 269 9 16 17 18 80 7978107 LO202J T D T 0 0 267 272 82 81108109 6 505J1 S 466 266 0 8 121 84 83113110 60 3 Project no.: 0004 120 115 114 1 515JS0 277 273 0 30 1613 87 85111 196J T Pop ulation C oncentration Poin ts 0 268 47JT 0 7 1 3 2 9 15 22 86112 2 113 146PLATLAND0 913J S 274 3 24 21 59 129 10 121 149 0 278 Eve rst S outh 15 13 12 36JT ENKELDEDO ORNS 12 14 25 12 Ref no.: c:\Gispdata\client\0004\projects\tubatse orwsdp.apr 112 959J S 517JS0 UYSEDOORNS 0 DE19 KAFFERSKRAAL7 1 40 5 0 11 20 5862 25 36 3 1 122 111 280 4 31 19 114 91 LO T C 279 Platinum Mine 3 6 5 1 35JT3 37 22 7 0 110109 518J S0 3 29 36 64 8 OLIFANTSGERAAMTE # 0 276 281 53JT 18 32 4 59JT 0 PARCE L IDENTIFIER 83 204J T Service Points 123 124 519JS0 275 749J0 T 5 35 19 6 4 1 1 972JS 282 21 5 6 LANGEMARK0 198J T SHEBA 136 SHEE PRUN 27 5 34 0 200JT2 M ap Production: 135 150 283 290 18 27 20 8 6 35 211J T 285 17 26 7 10 7 DE KU4 ILEN 5 2 SABIES HOEK 134 480 153 154 284 34 179J T 0 12 8 4 0 12 RO OIDR AA I 0 LO0 T B 125 RIVIERP955J0 0 LAAS S 286 DRAAIKRAAL 0 52JT5 KR AAIB OS C H 2 16 2 17 133 0 289 291 0 23 17 11 6 4 10 10 4 8 205J T 6. Informal Economy Development iN VI RO M A P 126 521J S 523JS0 27 34JT 2 287 288 15 14 6 127 0 54JT 55JT0 25 22 8 9 0 LONG RIDGE EILAND956JS 156 48JT6 TR IAN G LE RO OIK RANS 10 13 9 3 LO T A Polokwane 16 BUTTONSHOPE 9 212J T 17 57JT17 58JT All N odal Development Points 0 Charles Stopforth / 51JT 60JT 54 4J S 1 1 Marietjie Smit Tel: 015 - 296 4854 Greater Tubatse Local Economic Development Strategy 39
Report 1: Baseline Review
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 40
Report 2: Development Potential Analysis
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 41
Report 3: Formulating GTM LED Strategy
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007 Greater Tubatse Local Economic Development Strategy 42
Report 4: Implementation Plan and Institutional Arrangements
Report compiled by Procurement Dynamics in collaboration with Glen Steyn & Associates May 2007