GROWTH & DEVELOPMENT SUMMIT 2007 DISTRICT SOCIO-ECONOMIC PROFILE

index3 PRIORITY ISSUES ...... 27 STRATEGY ...... 28. . . . . FOR DEVELOPMENT DEPARTMENT PROVINCIAL . . . . . 31 INFRASTRUCTURE PLANS EXPENDITURE CONCLUSION ...... 34 ...... 35...... ACRONYMS GDS AGREEMENT...... 36 Priority Programmes Programmes Priority Projects” ...... “Anchor or 30 Social Services...... 18 Healthcare ...... 20 ...... and AIDS HIV 21 ...... 22...... Poverty ...... 23 Women ...... Youth 23 ...... 24 Disabled Regeneration Elderly ...... Moral 24 ...... Challenges Movement 24 ...... Administration & Governance 25 Resource ...... 25 of Municipalities Administration Financial ...... Challenges of Municipalities 26 DISTRICT SNAPSHOT ...... 3 ...... DISTRICT SNAPSHOT INTRODUCTION ...... 1 ...... INTRODUCTION . District Economy ...... 6 ...... Economic Competitiveness 7 ...... 8 Agriculture Forestry ...... 10 Tourism...... 10 Trade...... 11 ...... Construction 11 ...... Services Financial 11 Basic Services ...... 12 Sanitation and Water ...... 12 ...... 13 Electricity ...... Housing 14 ...... Waste 14 Road Maintenance ...... 15 ...... Transport 15 Telecommunications ...... 16 ...... 17 Conservation areas Education and Skills ...... 18 of the Summit Aims ...... 1 ...... 2 of this document Aims ...... 2...... Methodology CONTENTS 1 INTRODUCTION

AIMS OF THE SUMMIT

Building on the results of the National Growth and The aim of the GDS is to reach broad agreement on: Development Summit in June 2003, government ❖ A development path and programme for the district. proposed that all District and Metropolitan Municipalities ❖ What each social partner (government, business, labour, hold Growth and Development Summits (GDS) in their community sector) should contribute to the implementation area of jurisdiction. of the programme. ❖ Strengthening the strategic thrust of the district IDP to The summits should provide opportunities for building ensure planning and implementation alignment between partnerships with social partners by bringing together the spheres of government, as well as public entities. representatives from the broadest sections of society: labour, business, community sector and government In this regard the GDS should seek to address the (local, province and national). following specific questions and issues: ❖ The district’s economic potential and which sectors of the Government has identified district and metropolitan areas economy should be promoted (this would need, where as the pivotal sites on which to build an understanding applicable, to be informed by the IDP, LED and the RIDS). of the nature and distribution of regional economic ❖ Commitments by government, business, labour and potential across the country. community sector to ensure investment in each of the sectors. Collaborative action between government and ❖ Actions required by government and each partner to social partners across all the three spheres is vital in deal with constraints to such investments, including forging a common vision for promoting rising levels of dealing with bureaucratic delays, EIA processes and land growth, investment, job creation, and people-centred use management. development. AIMS OF THIS DOCUMENT

❖ Social and economic infrastructure programmes required ❖ To ensure that discussion on the above issues takes place to improve investments and provide basic services to on an informed basis. communities. ❖ To present a coherent picture of the social, demographic, ❖ Contribution by each partner to the construction of such and economic profile and service levels of the Ukhahlamba infrastructure, including possibility of PPP. area. ❖ Second Economy interventions (EPWP including roads, ❖ To present a picture of the challenges facing local home-based care and early childhood development, government in Ukhahlamba especially in relation to cooperatives, micro-credit, procurement, land reform, capacity. etc) and the role of each sector in such interventions. ❖ To suggest the mechanisms & processes for monitoring ❖ Promoting local procurement – what interventions are progress on the decisions reached and the governance required. framework for ongoing dialogue and feedback among ❖ Improving capacity of local government and social partners. contribution of each social partner: including role of ❖ The Ukhahlamba GDS presents a unique opportunity for public sector unions in ensuring efficiency, role of all in constructing partnerships and harnessing the collective fighting corruption, contribution by private sector and energies and contributions of a range of actors and role professionals to skills required by the district. players with a view to enhancing accelerated and shared ❖ Establishing a partnerships and/or regional growth growth. coalitions which will act as a mechanism for cooperative ❖ The Ukhahlamba GDS has the potential to unlock the action at all levels and a robust framework for monitoring potential of all localities, and ensure that all sectors of and evaluating progress. society identify their role and contribute to the common national objective to build a better life for all.

METHODOLOGY

This profile of the Ukhahlamba District is based on a number of documents and information from a range of sources. These broadly include the following: ❖ ECSECC data, publications and reports ❖ Monitor Group – Economic Profiling of the Poverty Nodes – Ukhahlamba ❖ District and local municipal IDPs ❖ Data from the Rapid Assessment of services in the conducted in 2006 by Fort Hare Institute for Socio- Economic Research for the Office of the Premier ❖ Various research reports 2 3 DISTRICT SNAPSHOT

POPULATION: About 350 000 people and with a low LOCATION: to the north, the district borders the growth rate. The District is generally sparsely populated, Province and the country of . The district except for the former homeland areas of , municipalities of Alfred Nzo, OR Tambo and Chris Hani to rural parts of Tsolo and Qumbu (in Elundini) and the east and south and the Northern to (in Senqu). These two areas account for about the west. The boundary of the district is an administrative three quarters of the District population. These are also boundary and not necessarily an economic boundary. the areas where poverty is most entrenched and basic services backlogs most acute.

AREA: 26518km2

NODAL STATUS: The District has a high development CULTURE: over 90% Xhosa profile in terms of its Integrated Sustainable Rural Development Programme (ISRDP) nodal status. LANGUAGE: Xhosa, Sesotho, and English.

MUNICIPALITIES: Ukhahlamba District and Gariep, Maletswai, Senqu and Elundini local municipalities

TOPOGRAPHY: The west of the District (Gariep and Maletswai) is dry Karoo flatland and areas of the dry NamaKaroo Biome. The East (Senqu and Elundini) is mountainous and wetter with elements of the Maloti Biome. Most of the District falls within the catchment basin, except for Elundini, which falls in the Mzimvubu River Basin. 4 5

SETTLEMENT STRUCTURE: There are 13 towns SOCIAL STRUCTURING: The levels of out migration in the area with the largest being with a from Ukhahlamba are higher than the provincial average. population of about 40,000, Sterkspruit, Maclear and The proportion of households reporting at least one Mount Fletcher are secondary service and retail centres. migrant household member amounts to 18% of district Ugie is an aspiring secondary town. Three rural nodes (in households against 15.2% of provincial households. the communal land area) have been defi ned in Elundini While 7% of the district population overall is reported as and four in Senqu. The Spatial development framework for migrating from their household this is so for 5.6% of the the District defi ne special interventions for these diff erent provincial population. categories of towns, as well as corridors and special development areas. Diff erent interventions are proposed The combination of the limited local economy and in each of these areas – areas of severe backlogs (old significant challenges in local services infrastructure and Transkei), areas of high economic potential (agriculture, delivery understandably result in the District recording tourism), nodes with ability to support the economy among the highest levels of out migration in the (especially primary and secondary towns). province. The vast majority of migrants from Ukhahlamba leave their households in order to take up employment or to go in search of employment. The historically underdeveloped areas of Senqu and Elundini also see significant numbers of household members migrating in order to access schools or tertiary education. DISTRICT ECONOMY

The District area contributes about 3% of the provincial There is also a perception among residents in the area Gross Geographic Product (GGP). that hawking, hairdressing, clothes washing, etc are not “real” jobs and they do not consider that this is a The Ukhahlamba area is one of the 13 poorest and most contribution to the economy. Many people still aspire for poverty stricken districts of . a government job as it is seen as secure.

The 2001 Census indicated that over 86% of the residents It can be seen that in the manufacturing sector, growth of the area live in poverty. This is based on that the annual has occurred in the food-processing sub sector. In the household income is below the basic annual substance Trade, Catering and Accommodation sector there has level of R19200 per year. been very little growth in the catering side with the largest growth occurring in the retail sub-sector. On the Of those of working age, only 18% are employed, 21% are Transport and Communication sector, the bulk of the unemployed and 60.3% are not economically active (that is growth has been in the communication sector, and in that they have not sought work during the past 2 years). the Finance and business services sector, there has been an increase in the finance sector but a decrease in the Of those that are employed over 90% are employed business services sub-sector. by someone else and only a very small 2.2% are self- employed. This has a significant impact on the “spirit of Overall the GGP of the district has remained a fairly entrepreneurship”, where most people do not have the constant proportion of the provincial GGP, and the per experience of running their own business, and have capital GGP of individuals within the Ukhahlamba area has a history of reliance and dependency on others for also remained fairly constant (when using constant prices) employment. at around 41% of the provincial per capital income. 6 7 for (conducted The Competitiveness the report are District ThemunicipaleconomiesofUkhahlamba Easy communicationisunderminedby theDistrict’s Further constraints ontheDistrict’s competitiveness The composite competitive indexfor competitive ECONOMIC COMPETITIVENESS of economic infrastructure and services thatenhance of economicinfrastructure andservices Provincial LEDProgramme) alsostated thattheprovision tocontributor revenue andemployment. astheprimary that doesnotrely services oncommunity and vulnerableto istheonlymunicipality change. Gariep are produced andmanufactured outsideoftheregion) percentofpurchases (sixty outside goodsandservices services. This renders theseeconomiesdependenton -agriculturesectors andgovernment andcommunity highly concentrated. There isexcessive reliance ontwo intheDistrict. support and enterprise creation by the limited isexacerbated levels offinance costsaretransaction high. to enterpriseThis barrier distance from amajoreconomichub. As a result, investment.attracting for anapproach to communaltenure thatisconducive to address theinfrastructure backlog. There isaclearneed investmentsector to andcomplicate efforts publicsector tenure asadeterrent arrangements, whichact to private include prevailing tenure andambiguous insecurity the populationdoesnothave accessto reticulated water. and almost60%of the populationhasaccessto electricity andeconomicinfrastructure. Only43.1%ofbasic services of appearsto bethedearth lack ofcompetitive activity the rest oftheprovince. The mainreason for theregion’s islowto incomparison District advantage inUkhahlamba The district canreasonably anticipate Thedistrict investment in TheDistrict’s topography stark landscapes andspectacular Comparative advantageandassociated opportunities mobility, factor costs, promote reduce transport linkages have to compete thecapacity for tenders. industry, provided intheconstruction contractors they grant allocation. forThis shouldcreate local opportunities infrastructure asaresult ofitsnodalstatusandinfrastructure andthelackofsuitableroadmarketed, orrailaccess. norwell productsthat tourist are neitherwell packaged of thispotential are perceptions aboutcrime, thefact potential for Currently tourism. inhibitingtherealization levels, crime withlow reported in conjunction creates the infrastructure isavailable.provided thesupporting and for agricultural anexpansionoftheirrigated sector, the potential for inElundini (wattle)enterprises forestry Senqu andElundini)abundanceofwater creates major challenge. in The relative (particularly humidity remains andenhancingproductivity athese activities all shown signs ofbeingsuitable, butcommercializing (Senqu)have lucerne (Elundini, andSenqu)dry-land maize (ElundiniandGariep), livestock husbandry Gariep), which isadvantagedby theN6linkto EastLondon, and potential.irrigation Wool processing - (inMaletswai landandunder-utilised offertile surpluses, pockets asaresultdo existintheagricultural sector oflabour competitiveness. is thesalientneedinterms ofUkhahlamba’s economic fuelandwater suchascollecting activities survivalist regionswith neighboring andreduce timespentin 8 produce is transported via road to larger centers out of of out centers is transported larger to produce via road the District has agro-processing, the district. from Aside The agro-processing virtually no manufacturing industry. industry in Aliwal is also small and mainly concentrated North. possible that this sector Nevertheless, it is quite linked existing could attract to some new investment and new primary could of interest Areas production. (e.g example game meat, fruit-processing for include, products, wool raspberries),peaches, nuts processing, A thorough etc. feed stock tanning, processing, potato identify and package to the most sector study is required opportunities. viable investment very are important commercial District, in the for both farming in communal Livestock and communal farmers. Department is being supportedareas of by the Provincial dipping construction dams, of stock through Agriculture veterinary services fencing, shearing sheds, tanks, etc. the District MunicipalityAlso, with Gold Fields together Programme Improvement a Livestock have Foundation in Mount project is a goat Fletcher. in Elundini, and there from farmers suffer Black emerging farming. livestock skills and market technology, knowledge, inadequate less than an income significantly receive and therefore land Also, farmers. commercial better-equipped white very are in the few ownership (and not land claims: there District) either tracts is a major concern. Large of land are The farmers white or the state. in the hands of a few of state-District Municipality a register should develop land in conjunction with DLA. and most is done in the area, Very little agro-processing goats) and game sheep, dairy, farming (cattle, Livestock communal incomes from increase The challenge is to farming between the commercial erentiation the district area. area. For example, there is no single land redistribution is no single land redistribution there example, For area. of Barkly in the area project East in Senqu LM . protecting agricultural resources is of critical importance resources agricultural protecting a is presently There the area. in grow is to if agriculture in Sterkspruit. four trials in ward land care district, namely; Umnga Flats and Pitseng, both located located both district, namely; and Pitseng, Umnga Flats in the Elundini area. move to the main roads to access services to the main roads to is seen as a move agriculture. for move positive dominate agriculture. There are pockets are of dryThere land crop agriculture. dominate Only small eastern area. farming especially in the wetter irrigation despite suitable for pocketsisolated of land are the Orange River and Gariephaving dam as the northern Itboundary. unknownis currently impact the as to of the area. on the Elundini programme Basin Asgi-SA Mzimvubu in the economy, the main economic drivers which are areas, in the located that are farming areas and the subsistence sector is veryThis latter dependent communal land areas. nancial support and has little abilityto fi for on the state obtaining loans. for use the land as collateral in development Road access is constraining agricultural in the be suitably addressed is still to Land redistribution of land as a means of and rehabilitation The care exist in the land reform of agricultural areas large Two is a diff There while people rural areas depopulation of the remote The and cattle goats farming of sheep, livestock Extensive AGRICULTURE 9 ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ Dry cropping oftheDistrict, isonlyfeasible insmallparts Dry An industry action planfor action livestock would probably Anindustry was 1700hectares. year’s ploughingundertheMassive Food Programme inElundini,andthiscan play. ispracticed Dry-cropping schemes role thatirrigation theimportant underscoring Upgrading accessroads/farm logistics Move to formal landadministrationincommunalareas Improved veld management Building animalfeeds industry Accelerated landredistribution (witheffective support) East goatmarket) Middle HaniDistrict; project intheChris USAID-funded access(e.g.Improved market of drawing onexperience Improved Agricultural Services Extension farmers transfer commercial between skills andemerging existingprogrammesImproving designed to facilitate Expansion oftheeffective NWGAmodelofsupport include: ❖ ❖ ❖ ❖ ❖ ❖ An industry Action Plan Action for arableagriculture Anindustry would isclearthatcropifmanaged production underirrigation It investments Newirrigation beingimplemented/planned Selection of priority interventions ofpriority Selection in theDistrict farming expansion ofirrigation Evaluation ofallexistingstudiesrelevant to the Farmer trainingandsupport Project financing Land acquisitionandownership assessment) impact Project design andfeasibility (includingenvironmental probably include: well, hashugepotential for jobandincomecreation. rivers.for theOrangeandKarringmelkspruit studiesonbulkwater for purposes irrigation undertaken hasalreadyDam development. SenquMunicipality Project, OrangeRiver Water Scheme, andHoloHlahatsi include the Tsitsa BasinProject, River Mzimvubu Basin 10 over the last decade and a niche market seems to have the last decade and a niche marketover have seems to The impact of tourism. of adventure in the area found but it is perceived been wide felt, tourism has not really the unique due to the area sector for be a growth to the only Ski resort environments, in Southern Africa, hot dam in South Africa. springs and the largest access from and Maclear, between Mount Fletcher Langeni road to Bridge and the new Ugie Telle at Lesotho impact likely positively on the district to are area. being the N2 at is currently to a scenic route between is an indication that the route There explored. to the district and Durban prove through may Town Cape tourists. attractive to be more preserve jobs and to the create should be expanded to of the District. potential and tourism agricultural tourism in the District: grow The Provincial Gateway Project at Aliwal North. This This at Aliwal North. Gateway Project The Provincial attract to the beautification of the town involves trucks the with heavy Presently stopover. tourists to It be preferable would center. the town passes through the with (aligned divertto a parallel Street the N6 onto the main bridge the Orange River) and restore over glory: its former to (Somerset Street) street for trees shade and pedestrianised. TOURISM base a low tourism industry from The District’s has grown the District the tarring to access Improved through of the of linking The potential the N1 near via programmes land rehabilitation and Environmental interventions several being planned that will are There ❖ the particle board plant per day, this is likely to have an an this is likely have to the particle plant per day, board networks as the towns impact as well road on the tarred when taking which they will drive through the products marketsto Durban, (, exports etc). /Langeni road will enable products to be exported to will enable products /Langeni road Industrial East London link to Mthata via the rail from this access to road improved the With Development Zone. it is likely that coupled with the forestry investments area in this area. growth, economic cant will be signifi there the area but this is constrained by lack of road access into access into lack of road but this is constrained by the area the hinterland. area, and an additional 30 000ha could be available for for and an additional 30 000ha could be available area, Construction plantations. current the expansion of the startedhas recently PG Bison North on the R1.5 billion 3000 This will create near Ugie. Cluster East Cape Forests This jobs. thousands of indirect jobs and many direct The is partforestry initiative initiative. of the AsgiSA identified has programme AsgiSA National government as a keyforestry achieving the development to pillar and has targets, and development economic growth prioritized forestry as a key support sector all for across as well same is true in the PGDP, The tiers of government. industrial plan. provincial as in the emerging About 100 Interlink transport will be leaving vehicles linkages the new Ugie Improved Mthatha through to in forestry development more for is also a potential There in the Elundini forestry untapped potentials large are There FORESTRY 11

CONSTRUCTION

❖ Revitalization of Aliwal Spa: This project has been The District’s relatively high infrastructure budget delayed by the local municipality’s determination to allocation in the Medium Term Expenditure Framework retain land ownership of the facility. A more pragmatic presents opportunities for the growth of the local approach is required. construction industry (including housing, water and ❖ A public-private partnership should be packaged to sanitation, roads), and may enhance competitiveness revive the tourist steam trains on the famous railway by addressing critical shortcomings in economic reverses between Lady Grey and . infrastructure. The sector also offers great potential to ❖ The Madiba Corridor Route between Aliwal North and Port enhance livelihoods through the EPWP. St. Johns. This would include the new road between Ugie and Langeni (with a long bridge over indigenous forest) ❖ The Gariep Complex Project is one of the district FINANCIAL SERVICES attractions. Most towns do have banks however there are exceptions, There is also a dedicated District tourism organization that such as and Mount Fletcher. Due to the rural would strengthen marketing and product development. nature of the area, while there may be banks, these do not offer the full one-stop services, and managers are often based in centralized offices in the district (such as TRADE Aliwal North) or outside the district such as in Elliot. There has been an increase in accessibility to ATMs through Social grants and employment by the government is the the provision of in-store facilities. Financial advice is still largest economic sector in Ukhahlamba comprising more however very limited. than 40% of the GGP.

The District has a significant informal trading sector (including petty producers of traditional garments etc). This sector could be boosted by better institutional support (e.g. SEDA has not yet established an office in the District) and by CBD regeneration and the provision of improved trading environments for hawkers. BASIC SERVICES

Service delivery backlogs are most acute in Elundini due Free basic services are currently being implemented in to the poor road network and historical factors related urban areas but still at differing levels. A policy around to the peripheral nature of the area under the former the matter is currently being developed. Transkei regime.

WATER AND SANITATION

Significant inroads have been made in terms of extending Excepting Maletswai (22%) all local municipalities household water access in Ukhahlamba. The more in Ukhahlamba fall below the provincial average of populous eastern parts of the district (Elundini) faces households not having any formal sanitation. the greatest challenges as far a water backlogs with one third of households (34%) still relying on natural water The sanitation backlogs for Elundini and Senqu make up sources. This is significantly greater than the provincial three quarters of the district backlogs. average (28%). According to Ukhahlamba DM 43.37% of the people are in need of water services while 75.55% are Estimates of the cost of eliminating water and sanitation in need of sanitation services. backlogs in Ukhahlamba are R376 million and R332 million respectively. 12 13 About 50% of clinics in the district have nopipedwater. About50%ofclinicsinthedistrict are Theeradicationofwater being andsanitationbacklogs to lobby for more isnecessary MunicipalInfrastructure It could beexpandedifthere were fundsavailable. pipeline to from theFish River Tunnel. It FletcherMount ofthewater andintheconstruction This isbeingimplemented intheprovision ofwater in andstrengthen industry. theconstruction in theDistrict used to expandtheExpandedPublic Works Programme targets are met required to ensure thatNationalwater andsanitation to calculate theMIGallocationsthatareand inparticular a clearneedto revise Water Plans, andSanitationSector Grant (MIG)fundingto achieve nationaltargets. There is Household electricity connections inElundinimore connections than Householdelectricity have been Some16%ofhouseholdsinUkhahlamba ELECTRICITY eradicate backlogs. Fletcherto Mount to provide to additionalcapacity line (costingaboutR58m)isrequired from Frere Mount 132kVof householdsfor theEastern Cape).Anew90km averages and67% (60%ofhouseholdsfor Ukhahlamba andprovincialwhich issignificantly below thedistrict (28%)ofhouseholds,only slightlymore thanonequarter 2001-2006. doubled between This however amountsto the greatest isconcerned. challengesasfarbacklogs now accessingelectricity. Elundinihowever againfaces and more householdsin Senqu, andGariep Maletswai 2001-2006with70% grid between to theelectricity linked 14 significant challenge to municipalities and communities and communities municipalities challenge to significant and compliance with legislation inadequate leading to poor service delivery. of recycling and in the form the management of waste waste in space reduction concepts around innovative the connected to is largely This potential processes. also opportunities are but there economic nodes, larger from using waste in smaller communities such as Rhodes, Tiffendell. establishment of tourism the large WASTE poses a and disposal currently removal Solid waste economic opportunities however are attached to There having a low proportion of urbanization, the prevalence proportion a low having of urbanization, the prevalence the provincial houses (shacks) is below of informal housing of informal levels low are Although there average. the District, is no further across this does not mean there further because the definition of need for RDP housing, housing does not include traditional dwellings. informal of the Ukhahlamba and the rural nature Due to area, HOUSING 15 Themaintenance oftarred provincial roads willbecome istheconstantmaintenance significant importance Of Without improved streets, maintenance ofurban access iscovered Whilethedistrict oftarred and by anetwork ROAD MAINTENANCE exacerbate thisissue.exacerbate development intheUgie area willfurther industry deteriorating beyond reasonable repair, andthetimber a significant issueofconcernastheyare already potentials are higher. population numbersare higheranduntappedeconomic especially intheElundini andSenquareas where bymaintenance ofgravelbe supported accessroads in theSpatialDevelopment Framework. This should economicroads corridors asidentifiedmobility of key accessed byresidents ofthearea. cannotbeeffectively andthemarket to getto market roads, andprovincial roads, district goodsare unable challenge for thegrowth oftheeconomy. gravel roads, theconditionsofthese are asignificant Related istheneedfor to provision ofpublictransport thepastfive years, Over taxifacilitieswere in constructed Theimprovement ofroads intheElundiniarea islikely withregard significant inthedistrict to concern its Of TRANSPORT nodes shouldreceive priority. andsecondary especiallytheprimary on publictransport, Spatial Development Plan. Areas withhighdependency atallthenodes(ruralandurban)asdefinedin services facilities.shelters atkey There isaneedto provide these suchaswater,basic essentialservices sanitationand facilitiesinSenquespecially atSterkspruit. transport Fletcher.Mount There isstillaneedto improve public (asalarger modalinterchange), andAliwal North Maclear Fletcher, Maclear, Ugie andSteynsburg. willneedto beprovidedfor inMount publictransport will increase theamountofcommuter traffic. Services (as identifiedintheSpatialDevelopment Framework) this official alternative) to theN2dueto theroute beingshorter theR56becomesanalternative (even If ifnotthedistrict. across theto have onpassengertransport awideimpact area. of thedistrict thespatialeconomicgrowth strategiesdoes notsupport andishighlyfrustratingforlinkages, commuters and onthepotentials forhas animpact economicandsocial East. andBarkly LadyGreyThisand between /AliwalNorth are offeredservices between Venterstad andBurgersdorp future economicgrowth isthatnopublictransport 16 services as a key priority. There are also still police stations, also still police stations, are There services as a key priority. service telephone clinics and schools without any and The this impacts services. on their ability deliver to the worst of Elundini and Senqu are areas remote more affected. connections internet in the district broadband providing This Union. by the European to been agreed have area Business Outsourcing. for potential could provide key element of the disaster management system as well as well key management system element of the disaster the districtas the emergency across area. medical system bring to specialised medical afoot also moves are There support the district to by flying in specialised areas personnel and equipment. the This is due to especially in the mountain areas. the main urban hubs from location of this area remote of overcoming of South Africa, but which could be a way of the town around The area the challenge of distance. such a facility. a long time for Rhodes for has motivated low priority the past years. municipalities over from telephone raised the issue of improved have Communities the possibility into of an investigation for Funding Airfields a but form used fairly currently infrequently are air transport is also in need of improved services Tourism of municipal airfields The maintenance very has received and form part and form A of the function of local municipalities. new airfield the has been constructed in Sterkspruit by Transport. Department of Roads and unique value and could be a significant tourist attraction tourist attraction unique value and could be a significant and marketed. managed maintained, if effectively the four railway lines existing in the district is effectively lines existing in the district railway is effectively the four and line between Johannesburg operational – the main This only accessible at . is This East London. rail line has very little impact on public transport and the Infrequently the area. and or from of goods to conveyance the line between North and Aliwal Burgersdorp is used goods. for the population. However this service does not cover the this service the the population. However does not cover affects of the area The mountainous nature whole area. reception. population has access either to a private telephone or or a private telephone population has access either to is still a sectionone nearby of the population but there Urban areas at all. a telephone that has no access to the best service. farming of the commercial Parts receive services with telephone provided are and rural areas areas solar panel by driven based on radio linkages towers, to technology. Airfieldsthe urban in most of settlements found are The line between Aliwal North and Barkly of East is transport railway to services, regard only one out of With services proportion Cellphone a large of used by are than 50% of the more the 2001 census to According TELECOMMUNICATIONS 17

CONSERVATION AREAS

One provincial nature reserve, the Nature It is important to note that Wetlands cover 32 square Reserve on the banks of the Gariep Dam is located within kilometres in Elundini which includes the Gatberg the Ukhahlamba District. There is discussion underway wetland – the breeding ground for the endangered between the Eastern Cape and Free State conservation wattled crane. The conservation of wetland is boards to amalgamate the management of the nature being attended to through the Working for Water reserves around the Gariep Dam. There have also been programme (an EPWP programme) . proposals to expand the area under conservation in this area, but it is likely that this will be in the form of stewardships and not through the purchase of land by the state. SOCIAL SERVICES

The services delivery challenges are again greatest in is clearly the improvement of services delivery while the eastern and more populous areas of Elundini and health infrastructure needs to be addressed in the more Senqu. Generally, access to clinics and emergency health desperate municipalities of Elundini and Senqu. services is lower here and often compounded by poor access roads. In the District 40% of clinics have no electricity and 50% have no piped water. Access to primary education within the more infrastructure poor areas of Elundini and Senqu is well within the district and provincial norm. The focus in terms of education

EDUCATION AND SKILLS

There is very limited access to higher education facilities Approximately 25.5% of the adult population does not in the district area. Ukhahlamba has higher than the have any form of training or education, with 40.2% national average of people between 5-24 years attending only having completed grades 3-7. Only 3.3% of the school but lower than the national average for those population has completed Grade 12 compared to 6.6% attending tertiary education. in the Eastern Cape. Only 1.7% of the District population has obtained a tertiary qualification. According to the latest information from the Department of Education since 1999 only five schools have been built. The Elundini area has the largest proportion of people The ratio between learners and educators is 1: 36.3, which having only received primary education, while the Gariep is a slight improvement. area has the highest proportion of people (31.5%) having never received any form of education. Number of Schools, Learners and Educators in Ukhahlamba DM: This highlights the extremely low levels of education in the District and the need to focus on education and skills TYPE OF SCHOOL training. This can only be accomplished if the backlog in Combined Primary Secondary Total education facilities is met. Schools 173 168 46 397 Learners 60 783 31 997 22 577 126 449 Educators 1 863 984 241 3 482

Census figures show that about 50% of the total population is of school going age.

18 19 4. Manufacturing 3. Infrastructure 2. Tourism 1. Agriculture with willinpartnership Municipality District Ukhahlamba STRATEGIC SKILLS Ukhahlamba haslower levels ofseniormanagement, Ukhahlamba District’s workforce About41%oftheUkhahlamba is the 6%economicgrowth ofthedistrict: drive inthefollowing oftheeconomy sectors to support developmentmunicipalities, on amassive embark skills basedprojects andlocal ,community departments sector thePremier, Of the Office civilsociety, , thebusinesssector development andeducationprogrammes. andindicates aneedforeducation inUkhahlamba, skills municipalities. district This corresponds withlow levels of thantheprovince’stechnical skills andclerical other Gariep, 13%are skilled. peopleare andin skilled, 15%ofworking in Maletswai, appearto have people:populated more parts skilled to 17%inElundiniandSenqu.rising The lessdensely Ukhahlamba’s peoplehave professional working skills, Elundini (3253)municipalareas. Onaverage, 14%of are inthemore denselypopulated Senqu(3682)and workforce, workers butthelargest numbersofunskilled up53%ofthe make workers elementary/unskilled is thehighestpercentage intheprovince. Gariep, In workers,which orunskilled made upofelementary DEVELOPMENT INITIATIVES JIPSA ❖ ❖ ❖ ❖ ❖ ❖ ❖ In partnership withtheaforementioned a partnership stakeholders In Partnerships willbeforged andindividualMoU’s will LGSETA isto fundaLearnership on MunicipalFinance and development initiatives willbegeared skills Other summit resolutions . anditwillbeguidedby theas apostsummitactivity development planwillbedeveloped wideskills district SETA’sand various includingLGSETA. ofStellenboschUniversity of University Western Cape oftheFreeUniversity State Walter of SisuluUniversity Technology ofFortUniversity Hare College Public FET Ikhala institutions : the following EducationandFurther Education Higher andbe entered Municipality into theDistrict between more young peoplewillbeemployed. thewater andsanitation programmesto support and willberolledon theunemployed. learnerships out Other programmeAdministration aswell focusing otherskills towards theUgie development project. 20 care centres, and 43 clinics with at least 2 clinics in each 2 clinics in each and 43 clinics with at least centres, care Mount populated The most densely district.magisterial 13 and 10 clinics have and Sterkspruit areas Fletcher The District 998 hospital beds with has about respectively. a serviced of about 328 people per bed. supply average including health The Ukhahlamba has 11 hospitals, area HEALTHCARE HEALTHCARE 21 ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ Within thefollowing thehealthsector challengeshave Roll out of ARV programme ismoving slowly Roll outofARV Availability ofdrugsandclinicsuppliesisproblematic improve services economicgrowthexpected itisessentialthatthese and with inthedistrict are lacking services Emergency inthedistrict are lacking 24 hourPHCservices Build newclinicsandrenovate existingclinics areanot cover andisunreliable thewholedistrict equitable services. does The current mobileclinicservice –replace fleetandincrease to services provideMobile cannot improve andmeettheneedsofcommunities healthcare cliniccommittees,without active primary structures, asStipends for participation community of services anddentistsnegativelydoctors affects thedelivery staff.to attract suchaspharmacists, skills The lackofkey Plans to recruit andtrainlocals, scarce incentives skills mobile clinics Land lines, for cellphonenetworks fixed clinics, radiosfor Water, andsanitationto ruralclinics electricity improved service Improved accessroads inorder isanecessity to deliver an been identified: HIVandAIDSwillhave ongrowth amajorimpact and HIV AND AIDS 1Antenatal prevalence refer to thepercentage ofpregnant women attendingpublic isofficered atall Counselling Voluntary and Testing (VCT) onarange ofHealth hasembarked TheDepartment According to 2003householdsurvey, theHSRC HIV extrapolate thisdataforextrapolate theentire population. clinics whotestpositivefor HIV. anditisdifficultto Dataisonlyavailableperdistrict, Ukhahlamba District hadanantenatal prevalence District rate Ukhahlamba development, andthedailylives ofpeopleinUkhahlamba. clinics didundergo (DHIS). VCT LSA and88.14%inSenquLSA.26.3%ofmalesattending Area (LSA),75.84%inMaletswaiElundini Local Service would undergoclinics inthedistrict VCT, with71.96%in pointsand in200677.5%ofthosevisitingpublic service people ontreatment. to accredit additionalpointsandincrease thenumberof treating atotal of825patients. Hence, there isstillaneed accreditedfacility for dispensinganti-retroviral treatment, hadonlyonemedicalNovember 2006,Ukhahlamba of prevention, care andtreatment As interventions. of of newinfections evens out(ECAC, 2004). 2010, atabout16%ofthepopulation,before thenumber epidemic intheprovince to isexpected reach apeakby HIV prevalence withincreasing educationupto matric. The showsanincreasingas awhole, theEasternCapesurvey theresults Unlike with HIVandmortality. for SouthAfrica have onHIVincidence, oflife animpact quality whileliving health facilities, educationandinformation, assumedto unemployed. However economicstatusdefi nesaccess to andthosein HIVprevalence amongthoseworking lower prevalence rate. There isnotasignifi cantdiff settlements. This may account for theDistrict’s slightly formalurban settlementsandlower andtribal infarm prevalence isgenerallyhigherinurbaninformal and the average for theEastern Cape(28.03%in2004). 22.4% in2004,upfrom 19.0%in2002,whichiswell below erence 1 of 22 1996 2001 2004 HUMAN DEVELOPMENT INDEX DEVELOPMENT HUMAN Approximation of Areas Approximation Gariep Albert Area) Magisterial (Burgersdorp Venterstad 0.49SteynsburgMaletswai 0.51 NorthAliwal 0.50 Senqu Lady GreyBarkly East 0.49 (Hershel)Sterkspruit 0.39 0.50Elundini 0.44Maclear 0.52 0.50 FletcherMt. 0.43 0.55Ukhahlamba District Municipality 0.40 0.43 0.54 0.45 0.45 0.47 0.43 0.48 0.44 0.45 0.47 0.47 0.43 0.41 0.46 0.47 .46 0.45 0.45 decrease in the number of households reporting reporting in the number of households decrease is This betweenno household income 2001-2006. in households increase a significant accompanied by accounted income categories with incomes in the lower uptake in social grants. by the widespread for districtpoorest in the province. achievements the overall as it measures of development knowledge utilising of living by and standard in longevity, The literacy statistics. expectancy, and income level life by ECSECC the HDI as provided table below indicates a radical has been the RSS 2006 there to According a poverty With index of 42.0, Ukhahlamba is the fourth Index) indicator The HDI (Human Development is a reliable % 58.4 58.1 80.6 65.1 MONTH HOUSEHOLDSWITH AN INCOME OF LESSTHAN500 PER1 R Elundini Senqu Maletswai Gariep poverty rates mentioned above, there is clearly an urgent is clearly an urgent there poverty mentioned above, rates jobs and improve create to new investments need for in Ukhahlambalivelihoods District. existing Based on market economic activity, opportunities and present bases the particularresource/assets/skill industries include: potential offering play a major role in prevention, treatment, care and support care treatment, in prevention, a major role play and AIDS. Much of HIV by or affected of people infected and goes unrecognized, the work such organisations of The district and local activities is a problem. funding for such that it the response AIDS councils should integrate and that services effective, of community-based is more complement to effectively is utilised more organisations on Departmentsthe heavy burdens of Health and Social Development. Construction Trade Tourism Livestock farming Livestock production Crop Agro-processing industryWood-using and Forestry

In the context of the very and high unemployment POVERTY community CBOs and other based organisations NGOs, ❖ ❖ ❖ ❖ ❖ ❖ ❖ 23 Within women’s organisations there isstilladeficitin isdifficultatpresent to getarepresentative It perspective area, Within there theUkhahlamba isanactive Women WOMEN Alackoflocalisedinformation onthestatusofyouth Economicissuesare highontheagendaofyouth, with A Youth area Council existsinthedistrict butorganization YOUTH bought into by all. Often “women’s” programmes are an andthewomen’sleadership skills agendaisstillnotfully agriculture, infrastructure, andgovernance. limited roleAIDS, butplay inshapingissuesaround avery the socialissuessuchashealthcare, education,HIVand violence are ofpriority. Women are alsostillprominent in againstit seemsasifeconomicdevelopment andactivism Howevertheir priorities. basedontheinformation athand, of thestate area ofwomen inthedistrict andto determine area.across thedistrict as well asanumberoffaithbasedandpoliticalgroupings women agricultural groups withinthewhite population, ishoweverper municipality notefficient. There are also women intheeconomicsphere. Localised representation Economic Empowerment forum, representing black the area. they are notinvolved intheeconomy andgovernance of in economicdevelopment results inaperception that ofgovernment.of theirissuesinto thefunctioning They seemto have anunderstandingofmainstreaming a strong development focus andempowerment. onskills at alocallevel isstillachallenge. Within thepoliticalrealm there hasbeenanincrease in Women’s programmes are viewed stilloften asprojects to theprogrammes add-on beingimplemented inthe There are faithbasedyouth organisations aswell as withinorganized There factions are youth distinct resulting future to shape programmes. low.fairly inthe ontheirability to impact This islikely level isthe numberofwomen councilorsbuttheirskill attachedto therisks beingentrepreneurs.to take ofwomen wantajobbutdonotwishthat themajority entrepreneurs butatthesametime there isanindication There isastrong demandfor women to betheirown andahighlevel ofdependency.business knowledge, due to thelow lackofeconomicand level ofskills, thereand often are issue. sustainability These are often population ofthearea. recognizing thatwomen more comprise than50%ofthe area, orasastand-aloneprogramme/project,district not political youth structures thatcover thewholearea. in conflicts, differences ofopinionandmisinformation. 24 points of intervention Involve the elderly in education (ABET)Involve and programmes small income generating programmes. is insufficient sportingThere activities and social in the whole community be involved activities to for educator-learner is also often a negative There and learners between teaches relationship children in the number of street is an increase There prisoners is ostracization of returning and an There community life of them from exclusion running/coordinating structure is no organized There in the district moral regeneration Increase services the elderly services such as bringing to the people to and security safety issues around Raise awareness the elderlyaffecting for be cared the elderly to for ways Seek appropriate make points to them payout pension/grant Improve the elderly for conducive more of health issues and awareness care health Improve among the elderly of basic housing elderly the Prioritise in the provision the elderlyIncrease the number of activities involving

ELDERLY as critical areas prioritized the following The elderly have ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ traditional leader, faith based organisations, government, government, faith based organisations, traditional leader, in the districtand CBOs has been initiated area. or poverty alleviation activities and often there are or poverty alleviation activities are and often there into sustainability challenges and a lack of integration of government. and programmes the main economy of skills, level lack of the low often due to These are economic and business knowledge of and a high level dependency. have highlighted social issues such as access, care and and care social issues such as access, highlighted have education. and district action is however limited. This is possibly due possibly due This is and district limited. action is however and of disabled people, the historic marginalisation to and organization this has impacted on their confidence, in not prominent are in programmes leadership resulting the district area. Illegal immigration into the area and also xenophobia and also xenophobia the area Illegal into immigration of an escalating Perception crime situation in Ukhahlamba Women and child violence and abuse and child violence and abuse Women (both community and domestic) Lack of knowledge human rights around sex of commercial Escalating rate taverns, regulate to Absence of bylaws shebeens and bars Abuse of girl children Abuse of girl High abuse of liquor and drugs The moral regeneration movement consisting of consisting of movement The moral regeneration MORAL REGENERATION MOVEMENT CHALLENGES MOVEMENT REGENERATION MORAL Often “disabled” programmes are seen as projects seen as projects are programmes “disabled” Often also high on their agenda, but they Economic issues are active in the district Local area. is a Disabled Forum There DISABLED ❖ ❖ ❖ ❖ ❖ ❖ ❖ ❖ 25 GOVERNANCE & ADMINISTRATION

INTEGRATED DEVELOPMENT PLANS IDPs: probably Improved as a result of ISRDP. However, as All Ukhahlamba Municipal IDPs give attention to building already mentioned, there are several areas where their own delivery capacities. The filling of critical vacancies cooperation seems to be lacking. (e.g. Municipal Managers etc) is critical, as are measures to attract and retain critical skills. IDPs have improved over The municipalities would be assisted by the Provincial the last few years and are generally aligned to PGDP etc. Departments – always planning spatially (using DM However, there are some important gaps (e.g. housing, and LMs as the geographic units), and by Departments EPWP). IDPs are in process of integrating the activities of consulting DM’s/LMs at District level when preparing all three levels of Government active in their areas. their Strategic Plans.

MUNICIPALBUSINESS COOPERATION: MUNICIPALNATIONAL It is necessary for municipalities to give a higher priority DEPARTMENTS/SOES COOPERATION to improving communication with local business. Cooperation with relevant National Departments/SOEs could also be improved. A particular case is the need to MUNICIPALPROVINCIAL work with Eskom regarding the electrification backlogs. DEPARTMENTS/AGENCY COOPERATION: The District IDPs show some evidence of cooperation with Provincial Departments, and this cooperation

ADMINISTRATION OF MUNICIPALITIES

In all municipalities over the past five years there have stable administrations and therefore service delivery and been municipal managers. In Senqu and Ukhahlamba the other three municipalities having some instability District the municipal manager post has been the most and perceptions of poorer service delivery. stable while in Maletswai the Municipal Manager did not serve a full five years, and in Elundini and !Gariep there The relationship between the head of administration have been challenges and interim arrangements made and the political leadership needs to be close. Political during the period. instability and or administrative instability has an impact on the other. The stability of the head of administration has had an impact on the administration of municipalities as a whole. It has resulted in Senqu and Ukhahlamba having more FINANCIAL RESOURCE CHALLENGES OF MUNICIPALITIES

Within the Ukhahlamba area, the most stable municipality affected their income. Challenges around the spending in terms of financial administration and security has of funds in municipalities has been more skewed been Senqu. This has been due to historic as well as towards the previously disadvantaged and has meant current management factors. The stability of finances that maintenance of infrastructure (such as tarred roads in a municipality have an impact on the ability of the in Aliwal North) have deteriorated beyond reasonable municipality to deliver services, keep their staff happy repair. This impacts on the ability of the municipality to and respond effectively to community needs. attract and or retain commercial enterprises that could generate income for the municipality. Gariep and Maletswai have both had challenges around the amount of income available for them to deliver In Elundini there has been income (higher population services. There have been times over the past five and that means higher equitable share) but the efficient years when their financial viability as municipalities has and strategic management of allocation of the funding been questioned. Due to their small population size has been a challenge. This has resulted in large under (even though this is disputed) they receive only a small expenditures in some areas, skewed expenditure in amount of equitable share. This coupled with the fact others, high expenditure on staff salaries, but the overall that they have urban areas with old infrastructure, which impression is that of poor service delivery, deteriorating is of a high level of service, but which still needs to be services and poor administration. Elundini is a prime maintained, they are not drawing in much income from example of the issue of deteriorating services creating the sale of services to these communities. They have not animosity between communities and the municipality managed to implement systems around levying rates and this has under the new political leadership required on the commercial farmland and this has negatively careful and tactful handling. 27 PRIORITY ISSUES

Ukhahlamba District-wide priority issues are: GOVERNANCE AND ADMINISTRATION ❖ Building of partnerships and relations ECONOMIC GROWTH and improving cooperation and coordination ❖ Stimulation of the Economy ❖ Access to information ❖ Skills development ❖ Institutional Capacity Development ❖ Environmental awareness ❖ Democratic Governance ❖ Economic infrastructure INTERNAL LOCAL GOVERNMENT PRIORITY ISSUES SOCIAL GROWTH ❖ Basic Service Delivery ❖ Water and Sanitation provision across the District ❖ Municipal Institutional Development and transformation ❖ Social infrastructure ❖ Local Economic Development ❖ Addressing of Social Issues ❖ Municipal Financial Viability and Management ❖ Good Governance and Public Participation STRATEGY FOR DEVELOPMENT

VISION: ❖ To improve the literacy rate of the province An improved quality of life for all residents. by 50% by 2014 ❖ To eliminate gender disparity in education MISSION: and employment by 2014 Fight poverty through stimulating the economy and by ❖ To reduce by two thirds the under-five meeting basic needs, improving service delivery quality mortality rate by 2014; and capacitating government and communities. ❖ To reduce by three quarters the maternal mortality rate by 2014; HIGH LEVEL TARGETS ❖ To halt and begin to reverse the The key performance indicators (KPIs) related to the spread of HIV/Aids by 2014; millennium goals, national KPIs and provincial (PGDP) ❖ To halt and begin to reverse the targets, defined as follows: - spread of tuberculosis by 2014; ❖ To provide clean water to all by 2008; ❖ To increase the growth rate to 6% per annum by 2014 ❖ To eliminate sanitation problems by 2010; ❖ To halve the unemployment rate by 2014 ❖ To provide all houses access to electricity by 2012; ❖ To reduce by between 60 and 80% the number of ❖ To eradicate bucket systems by 2007; households living below the poverty line by 2014; ❖ To reduce by between 60 and 80% the number of The Strategy for development in Ukhahlamba is based people suffering from hunger by 2014; on six key elements. Three that are strongly connected ❖ To establish food self sufficiency in the District by 2014 to the economy and three that are support for the ❖ To ensure universal primary education (UPE) by 2014 growth of the economy. Therefore it can be seen that the with all children proceeding to the first exit point in a economy forms the basis for the development strategy of secondary education the Ukhahlamba area. 28 29

D AN ITY G Y CUR RO TR SE W ES D TO R OO UR FO F IS , LD M S O , T IE H R R SE A T U D S O E U H A D N N N D I E IMPROVE SERVICE - H T O T O R G DELIVERY QUALITY U N R G I A E (EFFECTIVENESS, S R M , T E S R R ECONOMY, EFFICIENCY D E U L N T AND ETHICS) A L A T U S E C E D I I

B R R

U G T

S S A

U I

N

D W IMPROVE THE E

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O S I MEET

S R CAPACITY OF

R

E

G E BASIC S

B GOVERNEMENT

M NEEDS

I AND COMMUNITIES T

GR S OW ME LA AM BO OGR UR IN R PR TENSIVE AND PRO-POO

GOAL 1: Grow Agriculture, agri-businesses, forestry GOAL 4: Improve Service Delivery Quality (through and timber industries and household food security efficiency, economy, effectiveness and ethics). programmes. GOAL 5: Capacity-building programmes for GOAL 2: Grow Tourism, trade and related business government and communities. development programmes. GOAL 6: Meet basic needs. GOAL 3: Grow labour-intensive and pro-poor development programmes. Cutting through these strategic areas are cross cutting multisectoral priority programmes that are listed in the following section. PRIORITY PROGRAMMES OR “ANCHOR PROJECTS”

These cut across the various other projects and c. Maximizing agricultural potentials development programmes, packaging elements of each to create programme (maximizing economic potentials). the key integrated programmes. These are the revised Integrated Sustainable Rural Development Programme d. Eradication of backlogs in water and sanitation (pro- priority projects for the Ukhahlamba area and form an poor programme that also meets basic needs). integral part of the development of the district area. Further to this, these programmes support the national e. Service upgrading in primary and secondary towns, key programme of accelerated and shared growth and rural nodes, and mobility corridors (maximizing spatial combine contributions from government, business, civil priorities and structural elements of the district economy, society, labour and higher education. These stakeholders maximizing economic potentials). will all participate in the Growth and Development Summit held on the district in February 2007. These f. Improvement of access and linkages to basic services programmes directly link to the programmes discussed to support the economy (support for the maximizing of in the summit agreement: economic potentials and spatial structural elements).

a. Timber cluster development programme (a mega g. Creation of a secure social safety net (from the NSDP, project of ASGISA and the province). pro-poor programmes.) b. Tourism Gateway to the District and Province h. Governance and administration development development programme (maximizing economic programme (support for the growth of the economy). potentials, preparation for 2010 world cup). 31 It isplannedthatthrough thisexpenditure It 19mud isspendingR36min06/07,R48m TheDepartment elementofsocialandeconomic Educationisakey DEPARTMENT OF EDUCATION Thetotal infrastructure spenddirected to Ukhahlamba has beenrepeatedly suggested It thatone ofthemajor

EXPENDITURE PLANS DEPARTMENT INFRASTRUCTURE PROVINCIAL department ofeducation. department areand collegesintheDistrict targeted by theprovincial that are goingto berehabilitated, atotal of26schools becomes thefocus. Excluding the19 mudstructures schoolsgetaR5mboost, and better schoolquality FET structures willbeupgraded over themediumterm, that (i.e. focus onquality). at rehabilitation/ upgrading andrecurrent maintenance investment. The spendingistargeted almostexclusively educationinfrastructure5% oftotal departmental 07/08 andR65min08/09,representing approximately expenditureterm (06/07–08/09). cycle over thecurrent mediuminfrastructure inUkhahlamba has plannedandbudgeted upto R149moneducation development. The Provincial ofEducation Department hopefully crowds inprivateinvestment. significant infrastructure investment publicsector that expendituremedium term cycle. This represents amounts to atotal slightlyabove R1bnover thecurrent Capeprovincialby Eastern government departments social andeconomicenvironment inUkhahlamba. andthatareterm, to to contribute likely amore enabling ment plansthathave beenbudgeted for over themedium tempts to summarize thephysical infrastructure develop- ture-related services. profi ofthedistrict This section leat- has beenthepoorstate ofinfrastructure andinfrastruc- petitiveness, andfailure to exploiteconomicpotential, to contributing thelowfactors level ofeconomiccom- Education infrastructure spendingpercapitain Thebudgetfor routine maintenance inUkhahlamba over plannedinthedistrict Theonlynewconstruction Theprovincial healthinfrastructure spendingpercapita allocationrelative to oftheUkhahlamba Theproportion Theallocations willbespentonclinicandhospitalrevamps Theseamounts, intotal, willrevamp, rehabilitate and hasplannedand Theprovincial healthdepartment

DEPARTMENT OF HEALTH on anannualbasisitrangesfrom R103to R115. over thethree year isR425,howeverUkhahlamba period aremaintenance activities generallylabour-intensive. boostlocaleconomies,indirect cashinjections asroutine guarantee ofreturns well into thefuture, and2)direct and maintaining and ‘protecting’ existingassetsensuring maintenance amountsare respects, crucialintwo 1)by R7m in06/07,R15m07/08,andR21m08/09. These over amountsto themediumterm atotal ofR43m: in AliwalNorth. istheR6.5mAmasangoSpecialSchoolthe mediumterm R131 in08/09. from rises R97in06/07to district in theUkhahlamba receivesdistrict relative to otherdistricts. from 4%-6%reflecting arelatively smallshare thatthe the total provincial healthinfrastructure spend, ranges and upgrading, andnotonany newconstruction. upgrade 23clinicsand2hospitalsintheDistrict. R50m in08/09. from rising R34min06/07to district, for theUkhahlamba R131m inthecurrent mediumterm expenditure cycle budgeted for atotal healthinfrastructure spendingof 32 opment in the district is the road network.opment in the district is the road Although Ukhahlamba good inter-connectivity has relatively the to is still there and beyond, in the province major centres backlog a large quite in terms of connectivity between within within the district, as access roads areas as well areas especially access to various local municipal areas, places’, ‘great resorts, – tourist with economic potential markets.agricultural that transportenabling role has for infrastructure roads the provincial economic and social development, and transport department a whopping has allocated cycle, medium term with over the current R715m over 06/07 financial year. for R330m planed and budgeted district, in the project infrastructure road the largest medium the current R475m over up to accounting for forestry and is linked the massive to This road term. as opening as well at Ugie-Maclear, timber development corridor. Tourism the Madibaup links to the district and for medium term the upgrading include (R215m), road of the Maclear Mt.. Fletcher to rehabilitation (R2.5m). bridge road Telle and the Sterkspruit to places’ ‘great (R20m), access to maintenance on recurrent resorts(R0.5m), and access to (R2m). DEPARTMENT OF ROADS AND TRANSPORT AND ROADS OF DEPARTMENT devel- infrastructure Another key element of required In the key light of these backlogs,recognising and The Ugie-Langeni construction represents new road the over investments road The other significant will be infrastructure of the spending on road The rest municipal areas (Gariep, Senqu, Maletswai, and Elundini), Maletswai, and Elundini), Senqu, (Gariep, municipal areas far the highest allocation (50% by with Elundini receiving districtof the total allocation), underlying its strategic importance in the district hub. as an agricultural allocation on new infrastructure such as stock handling handling such as stock allocation on new infrastructure fencing, dip tanks, shearing sheds, and storage facilities, irrigation and soil systems water/boreholes, stock that seek developments positive These are conservation. enhance productivity for to of the land and profitability and small scale farmers. especially emerging farmers, spend of R16 in 06/07 rising to R25 in 08/09. spend of R16 in 06/07 rising to and R9m for 07/08, and 08/09, respectively. 07/08, and 08/09, and R9m for the provincial department of agriculture will spend just departmentthe provincial will spend just of agriculture under R24m in the Ukhahlamba District, representing spend infrastructure agriculture 10% of total just above by the department the medium term. over is undoubted, but is dependent on the level of targeted of targeted the level but is dependent on is undoubted, that can unleash this economic potential. infrastructure all local across (not evenly) The spending is spread The department Ukhahlamaba will spend the entire per capita an infrastructure These amounts represent as R8m 06/07, as well for allocated Amounts of R5.5m are Over period term medium the current – 08/09), (06/07 AGRICULTURE OF DEPARTMENT expansion in Ukhahlamba agricultural for The potential 33

The Ukhahlamba allocation of provincial roads and DEPARTMENT OF SOCIAL DEVELOPMENT transport budget represents approximately 15% of the The provincial department has allocated just under R7m total provincial allocation. This is obviously a huge boost in infrastructure spending over the current medium term for the district, and the road infrastructure has very expenditure cycle to the Ukhahlamba District. strong complementarity linkages to forestry and timber, and tourism. The expenditure is targeted at new construction of 1) Aliwal North Community Development Centre (R2.7m), The road infrastructure spending per capita in the district and 2) Sterkspruit Multi-purpose Centre (R3.6m). over the medium term is an impressive R2000 per person of infrastructure spend. A further R0.5m is allocated for maintenance and upgrade of park homes, and routine maintenance of existing social DEPARTMENT OF SPORT, development infrastructure. RECREATION, ARTS AND CULTURE The Ukhahlamba district is receiving R5m in the 06/07 The social development infrastructure per capita financial year for the new construction of, 1) the Sterkspruit spending over the medium term is approximately R20 Arts Centre in Senqu (R1.5m), 2) Steynsburg Indoor Sports per person. Complex in Gariep (R2.5m), and 3) Venterstad Sport Field in Gariep (R1m).

There is no budget allocated from this provincial department to the district in the next two years of the three-year medium term expenditure cycle.

The infrastructure per capita spending for the department in the district lies at R15 per person of infrastructure spend. CONCLUSION

The Ukhahlamba District is clearly grappling with very The district GDS presents a unique opportunity for entrenched problems of poverty and unemployment, constructing partnerships and harnessing the collective and progress seems to have been quite slow so far in energies and contributions of a range of actors and role addressing these problems. It is of concern that while players with a view to enhancing accelerated and shared public investment in the District is increasing, there growth. seem, apart from the Steinhof timber investment, to be very few substantial private sector projects in the pipe- The district GDS has the potential to unlock the potential line. The Summit is potentially very important for setting of all localities, and ensure that all sectors of society in motion processes to improve municipal planning and identify their role and contribute to the common national management capacities, particularly with respect to objective to build a better life for all. cooperation with other arms of Government, and with Business. The private sector, business-support agencies and the municipalities need to work together to develop the detailed priority industry action plans.

The outcome of the Summit should be the development of a “Framework Agreement” that outlines institutional roles and responsibilities to accelerate growth and development in the District. This Agreement should also suggest the mechanisms and processes for monitoring progress on the decisions reached and the governance framework for ongoing dialogue and feedback among the social partners. 34 35 ACRONYMS

AIDS Acquired Immune Deficiency syndrome LGSETA Local Government Sector Education and Training Authority. ARV Anti Retro Virals LMS Local Municipalities ASGISA Accelerated and Shared Growth Initiative of South Africa LSA Local Service Area

ATM’S Automated Teller machines MIG Municipal Infrastructure Grant

CBD Central Business District NGO’S Non Governmental Organisations

CBO’S Community Based Organisations NSDP National Spatial Development Perspective

DHIS Department of Health Information System NSF National Skills Fund

DLA Department of Land Affairs NWGA National Wool Growers Association

ECDC 14 Eastern Cape District Council PGDP Provincial Growth and Development Plan (Ukhahlamba District Municipality) PHC Primary Health Care ECAC Eastern Cape Aids Council PPP Public - Private Partnerships ECDC Eastern Cape Development Corporation RDP Reconstruction and Development ECSECC Eastern Cape Socio – Economic Programme Consultative Council RIDS Regional Industrial Development Strategy EIA Environmental Impact Assessment RIDZ Rural Industrial Development Zone EPWP Expanded Public Works Programme RSS Rapid Services Survey FET Further Education and Training SEDA Small Enterprise Development Agency. GDS Growth and development Summitt SETA Sector Education and Training Authority GGP Gross Geographic Product SOES State Owned Enterprises HDI Human Development Index UKDM Ukhahlamba District Municipality HET Higher Education and Training UPE Universal Primary Education HIV Human Immune Virus USAID United States Agency for International HSRC Human Science Research Council Development

IDP Integrated Development Plan VCT Voluntary Counselling and Testing

JIPSA Joint Initiative for Priority Skills Acquisition

KPI’S Key Performance Indicators

LED Local Economic Development 36 GDS AGREEMENT 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55

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