Free State Provincial Growth and Development
Strategy
Revised
Department of the Premier
Free State Provincial Government
October 2007
Table of Contents Foreword by the Premier Chapter One ...... 6 FSGDS Rationale and Overview ...... 6
1.1.Introduction and Outline of the FSDGS ...... 6 1.2.The FSGDS Rationale...... 8 1.3.The Review of the FSGDS ...... 9 1.4.Overview of the Provincial Landscape ...... 10 1.4.1. Geography ...... 10 1.4.2. Climate ...... 12 1.4.3. Economy ...... 12
Chapter Two ...... 14 The Provincial Spatial, Demographic, Environmental and Economic Perspective 14
2.1.Spatial Perspective ...... 14 2.1.1. The NSDP ...... 14 2.1.2. District Municipalities ...... 15 2.1.3. Local Municipalities ...... 15 2.1.4. Settlement and Land Use ...... 16 2.2.Demographic Perspective ...... 17 2.2.1. Demographics ...... 17 2.2.2. Settlement Types ...... 19 2.2.3. Migration ...... 20 2.3.Environmental Perspective ...... 21 2.3.1. Environmental ...... 21 2.3.2. Water ...... 22 2.3.3. Vegetation ...... 23 2.3.4. Conservation ...... 23 2.4.Economic Perspective ...... 24 2.4.1. Economy ...... 24 2.4.2. Employment ...... 25 2.4.3. Human Development ...... 26 2.4.4. Economic Structure ...... 27 2.4.5. Space Economy ...... 30 2.4.6. District Economy ...... 31 2.4.7. Local Economy ...... 34 2.5.Conclusion and Summary ...... 38
Chapter Three ...... 39 The Provincial Social, Human and Governance Perspective ...... 39
3.1.Education Perspective...... 39 3.1.1. Education ...... 39 3.1.2. Skills Development ...... 41 3.1.3. Heath ...... 42 3.1.4. Housing ...... 47
Page 2 of 136 3.1.5. Basic Infrastructure ...... 50 3.1.6. Transport Infrastructure ...... 58 3.1.7. Sport, Recreation and Culture ...... 59 3.1.8. Social Services ...... 60 3.1.9. Safety and Security ...... 63 3.1.10...... Governance 66 3.2.Conclusion and Summary ...... 68
Chapter Four ...... 69 Provincial Growth Potential, Capacity and Constraints ...... 69
4.1.Key Provincial Priorities ...... 69 4.2.NSDP Principles of Need and Potential ...... 69 4.3.Methodology ...... 71 4.4.Innovation and Experimentation ...... 72 4.5.High Value Differentiated Goods ...... 74 4.6.Labour-intensive Mass Produced Goods ...... 75 4.7.Public Service and Administration ...... 77 4.8.Retails and Private Services ...... 78 4.9.Tourism ...... 79 4.10.Resource Potential ...... 81 4.11.Development Potential: Summary ...... 82 4.12.Development Needs ...... 83 4.13.Combining Development Potential and Development Needs ...... 85 4.14.Conclusion and Summary ...... 86
Chapter Five ...... 88 Provincial Development Priorities and Implications ...... 88
5.1.Key Provincial Priorities ...... 88 5.2.The MDGs, Development Trajectories, Trade-Offs, and Development Barriers...... 88 5.3.Contextual Approach ...... 90 5.3.1.Future Demographic Trends ...... 90 5.3.2.The Link between the NSDP and Economic Sectors ...... 91 5.4.Economic Development, Employment, and Investment: Priorities and Implications ...... 92 5.4.1.Economic Growth: Development Trajectory and Trade-offs ...... 92 5.4.2Reducing Unemployment ...... 97 5.4.4.Barriers to Economic Development, Reducing Unemployment and Poverty ...... 98 5.5..Human and Social Development: Priorities and Implications ...... 99 5.5.1.Education ...... 99 5.5.2.Education ...... 100 5.5.3.Shelter and Services ...... 102 5.5.4.Free Basic Services ...... 103 5.6.Justice, Crime Prevention and Security: Priorities and Implications ...... 104
Page 3 of 136 5.7.Governance and Administration: Priorities and Implications ...... 105
Chapter Six ...... 107 Strategic Direction ...... 107
6.1.Introduction ...... 107 6.2.Vision, Mission and Principles ...... 107 6.3.Development Objectives ...... 107 6.4.Strategies: Economic Development, Employment, and Investment ...... 109 6.4.1.Expanding Manufacturing ...... 109 6.4.2Diversifying Agricultural Development ...... 110 6.4.3.Emphasis on Tourism ...... 110 6.4.4.Expanding Transport Services ...... 110 6.4.5.Providing Adequate Economic Infrastructure Development ...... 110 6.4.6.SMMEs Development ...... 110 6.4.7.Promoting Human Resource Development for Economic Growth ... 110 6.4.8Enabling Environment ...... 111 6.5.Strategies: Human and Social Development ...... 111 6.5.1.Improving Basic Services and Housing ...... 111 6.5.2.Improving Healthcare Services and Combating Diseases ...... 111 6.5.3.Improving education Services ...... 111 6.5.4.Enhancing Provision of Basic Safety Net ...... 111 6.5.5.Improving Cultural, Sport and Recreational Services...... 112 6.6.Strategies: Justice, Crime Prevention, and Security ...... 112 6.7.Strategies: Governance and Administration ...... 112
Chapter Seven ...... 113 Implementation Framework ...... 113
7.1.Economic Development, Employment, and Investment: Strategies and Programmes ...... 113 7.2.Human and Social Development: Strategies and Programmes ...... 115 7.3.Justice, Crime Prevention, and Security...... 118 7.4.Governance and Administration ...... 120
Chapter Eight ...... 122 Implementation Arrangements ...... 122
8.1.Instituioal Arrangements ...... 122 8.2.Implementation, Resource Allocation and Budgeting ...... 126 8.3.e-Monitoring and Evaluation of the FSGDS ...... 128
9.References ...... 132
Page 4 of 136 Foreword by the Premier
In 2005 I had the honour of presenting the Free State Growth and Development Strategy 2005- 2014 which was to serve as a common strategic vision and blueprint for future strategies and development plans in the province.
For any strategy or plan to remain relevant, it needs to be critically reviewed and updated from time to time. We have therefore subjected the Free State Growth and Development Strategy to a rigorous review process which was informed by the outcomes of the Integrated Development Plan (IDP) hearings, feedback that we received from the Policy Coordination Advisory Services unit in The Presidency, feedback from our social partners, the National Spatial Development Perspective and the Provincial Spatial Development Framework.
It is with great pleasure that I introduce the Revised Free State Growth and Development Strategy. Building on the first FSGDS, the Revised Strategy is synergised in an integrated development web. It embodies the Province’s economic development opportunities and social landscape, gives material expression as well as meaning to our vision of a better life for all.
It presents an analysis of the spatial, demographic, environmental, economic and social features that shape our Province’s environment and will assist us to create and support the environment, institutions and mechanism that are necessary for shared growth and integrated development. The Revised FSGDS explores provincial areas of potential and need in accordance with the National Spatial Development Perspective. This then serves as the basis of the strategic direction that sets the vision, mission, development objectives, strategies and implementation architecture for the Free State.
Intrinsic in the Revised FSGDS is government’s commitment to improve the quality of life of the people, harnessing development endeavours and creating a common vision for economic growth and integrated development. Not only does this give credence to our desire for a better life for all, but most importantly our willpower to build on what has been achieved to realise this vision.
F.B. Marshoff Premier: Free State
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Chapter One FSGDS Rationale and Overview
1.1. Introduction and Outline of the FSDGS
Chapter One of the Free State Growth and Development Strategy (FSGDS) explores the rationale for the development and significance of this strategy. This also includes underlying reasons for the review of the FSGDS and a broad overview of the Province.
Chapter Two provides an analysis of the spatial, demographic, environmental, and economic profiles of the Free State.
In Chapter Three , a detailed assessment of the social and human development status of the Province is outlined. Emphasis is on the provincial development status and sub-regional assessments at various levels in the Province.
Chapter Four explores provincial areas of potential and need in accordance with the National Spatial Development Perspective (NSDP). The chapter identifies areas with potential in respect of the national potential portrayed in the NSDP and in accordance with the principles of the NSDP. This chapter is also aligned with the Provincial Spatial Development Framework (PSDF).
In Chapter Five , emphasis is on the strategic options based on various development aspects. This also includes trade-offs defined within specific development clusters or spatial considerations. Focus is also on aligning the priorities of the FSGDS with the Integrated Development Plans (IDPs).
Chapter Six sets out the vision, mission, value statements, development objectives, and strategies for the Free State. This strategic direction is outlined in respect of the priorities and implications discussed in Chapter Five.
In Chapter Seven , the specific strategies and programmes to address and achieve the development objectives identified in the FSGDS are outlined.
Finally, in Chapter Eight , the implementation arrangements are discussed.
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CHAPTER 1: Provides a rationale for the FSGDS, the RATIONALE AND review, and a broad overview of the Free OVERVIEW State
CHAPTER 2: Spatial, demographic, AN ANALYSIS OF THE SPATIAL, DEMOGRAPHIC, environmental, and economic analysis ENVIRONMENTAL, AND ECONOMIC PROFILE OF THE FREE STATE Education, labour/skill and development, health, housing, CHAPTER 3: AN ANALYSIS OF THE SOCIAL, infrastructure, transport, sport/ recreation and culture, social
HUMAN, AND GOVERNANCE PROFILE OF THE services, crime and justice, FREE STATE disaster management, governance and ICT ANALYSIS
CHAPTER 4: Free State space economy in AN ANALYSIS OF GROWTH POTENTIAL, terms of potential and need CAPACITY AND CONSTRAINTS
CHAPTER 5: Priorities and implications: DETERMINING PRIORITIES AND development trajectories, trade-offs, and barriers IMPLICATIONS
CHAPTER 6: An outline of vision, mission,
STRATEGIC DIRECTION value statements, objectives, and value statements
CHAPTER 7: An overview of the detailed IMPLEMENTATION FRAMEWORK programmes per strategy STRATEGIC DECISION-MAKING
CHAPTER 8: Institutional, resource allocation, IMPLEMENTATION IMPLEMENTATION ARRANGEMENTS implementation and monitoring, and evaluation
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1.2. FSGDS Rationale
The FSGDS) is a far-reaching framework to set the Province on a defining shared growth and development trajectory. As an instrument of change, the FSGDS espouses coordination and convergence. It is intended to respond to complex shared growth and development challenges and opportunities. The FSGDS goes beyond mapping the provincial development outlook, and infuses an approach to guide integrated governance.
Essential to the FSGDS is government’s developmental role. This responsibility entails creating, promoting and supporting the environment, institutions and mechanisms crucial for shared growth and development. Besides the need to transform the provincial social and economic landscape, this policy drive is about harnessing government endeavours and creating a common development vision and direction.
The FSGDS is informed by the NSDP. It builds on the approach and principles of the NSDP. These outline the district and local municipalities’ development imperatives to deepen the application of the NSDP. The FSGDS thus provides direction and scope to Province-wide development trajectory with a long-term perspective shaped by the resources, economic, political, social, and natural environment considerations.
It is an instrument for addressing the legacies of the apartheid spatial economy, promoting integrated and sustainable development, turning the tide against poverty, and creating employment opportunities. Central to these is attaining alignment as the basis for development. This is also in order to ensure that development imperatives are productive, meet social needs, redress inequalities, and the benefits of growth are equally shared.
Not only is the FSGDS a development framework for the Free State Provincial Government (FSPG), but the entire Province. Meaning the FSGDS is also a framework for both public and private sector investment, indicating areas of opportunities and development priorities.
By being spatially referenced, it enables intergovernmental alignment and guides development activities of national and provincial departments, parastatals, and district and local municipalities by deepening the application of the NSDP (The Presidency, 2005).
The successful implementation of the FSGDS rests on a multifaceted strategy execution by connecting various institutional energies to respond to the desired development imperatives. Besides institutional fusion as the basis for implementation, this will aid in strengthening collaboration around a common development agenda central to which is redirecting institutional energies towards shared growth and integrated development outcomes
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1.3. Review of the FSGDS
The FSGDS is a nine-year strategy (2005-2014) which aims to achieve the objectives of Vision 2014. As a provincial policy framework, it sets the tone and pace for shared growth and development in the Province. It addresses the key social, economic, environmental and spatial imperatives in the Province. Underlying the FSGDS are the following imperatives:
• The need to effectively use scarce resources within the Province, whilst addressing the real causes of development challenges. • The need to accelerate service delivery based on a common provincial development agenda as the basis for provincial strategic direction. • The need to identify investment opportunities and provide an environment of certainty critical for private-sector investment. • The need to promote intergovernmental coordination between the three spheres of government. • The need to facilitate facilitates the implementation of the People’s Contract within the Province. • The need to provide a common vision as the basis for common action amongst all stakeholders, both inside and outside government. • The need to provide a framework for budgets, implementation, performance management and spatial development.
The FSGDS is the outcome of broad consultation with all role players and research conducted by various experts under the Premier’s Advisory Council (PEAC). Consultation started in October 2004 when a resolution to develop the FSGDS was adopted by the Executive Council (EXCO).
Following this resolution, meetings held with all provincial stakeholders to develop the FSGDS. The FSPG thank and acknowledge the following role players for their contribution in crafting the FSGDS:
• Organised business. • Organised labour. • Organised youth. • Organised community structures.
The compilation of the FSGDS was conducted under the aegis of the Policy Coordination unit in the Department of the Premier. As part of this process, the following four clusters were established in line with the FSGDS priorities:
• Economic Growth, Investment and Employment Cluster. • Social and Human Development Cluster. • Justice, Crime Prevention and Security Cluster. • Governance and Administration Cluster.
The FSGDS acknowledges the need for integrated planning to enable development to be delivered in an efficient and coordinated manner at both the national and the provincial levels. In pursuit of the above, the FSPG recognises the need to develop a management framework and to tie in provincial planning with national policies, and planning and implementation programmes at both the departmental and municipal levels.
Page 9 of 136 Various initiatives, which emphasise the need for coordinating the development initiatives at the planning level, and project implementation level, have been embarked upon in the past. Similarly, different strategic documents were prepared to guide development and to determine priorities and objectives. The FSGDS is a strategic document that interweaves provincial policies with national policies, while outlining mechanisms that are able to shape and guide implementation at multifaceted levels.
The above benefits are strengthened by aligning the FSGDS with national policies and legislation, such as the Constitution of South Africa, the NSDP, the Intergovernmental Relations Bill, the IDPs of municipalities, the Programme of Action (PoA), the State of the Province Address, the Cabinet Lekgotla Statement of January 2005, the ANC Manifesto, and the January 8th Statement of 2005.
The guidelines and comments provided by The Presidency in July 2005 lead to the need to align the FSGDS. Although the substance of the development programmes and strategies were maintained, the following measures were considered in realigning the FSGDS:
• The principles of the NSDP were applied at various levels. • The sectoral analyses were conducted in a more rigorous manner. • The four development clusters were strengthened. • The outcome of IDP hearings
This document thus represents not only the contextualisation of the FSGDS as approved in 2005, but also the integration of the principles of the NSDP and comments from The Presidency.
1.4. Overview of the Provincial Landscape
1.4.1. Geography
The Free State is one of nine Provinces of South Africa and it is centrally located. It represents 10.6% of the total land area of the country. It boasts wide horizons, blue skies, mountains and goldfields. The Province covers an area of 129 464 km 2 and, in 2001, it had a population of 2.7 million and has five district municipalities.
The Xhariep District is located in the south- west of the Province and is a semi-arid area with extensive farming, mainly sheep. The district comprises open grasslands with small wide dispersed towns.
The Gariep Dam is one of the tourists’ attractions. It offers a variety of leisure facilities. The district hosts 5% of the Province population and contributes 2.8% to the Gross Domestic Product (GDP) in the Province.
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The Motheo District contains the large population and comprises mainly open grassland, with mountains in the most eastern region. The main urban centre is Bloemfontein.
The city is the trade and administrative hub of the Province and boasts the provincial government and the seat of the Appeal Court of South Africa. It also has a rich history, which includes the establishment of the ANC in 1912 and the National Party in 1914. Motheo has 26.9% of the Province’s population and contributes 32.7% of GDP in the Province
The Thabo Mofutsanyana District borders Lesotho to the east and has beautiful hills and fruit farms. The district is one of the most important tourism destinations mainly because of the spectacular scenic beauty of the Drakensberg and Maluti mountain ranges.
Other attractions include Golden Gate Highland Park, trout fishing, the annual cherry festival at Ficksburg, a Basutho cultural village in Maluti-a-Phofung, and Khoisan rock paintings. This district has 26.8% of the Province’s population contributes to 11.7% of the GDP in the Province.
The Fezile Dabi District is an important agricultural production area, particularly for maize. The Vaal Dam is the main source of water and offers a wide variety of sports and leisure facilities.
Other attractions include the Vredefort Dome, which is the third largest meteorite site in the world and San paintings. Sasolburg is the location of the country’s large chemical and synthetic fuel plants. Kroonstad is an agricultural and administrative centre of the district. The district has 17% of the Province’s population, and contributes 32.2% to the GDP.
The Lejweleputswa District boasts goldfields and it is a major agricultural area. The district forms part of the larger Witwatersrand basin. The first gold was discovered in the early 1940s.
Bothaville is considered to be one of the important maize centres in the country. The annual National Maize Production Organisation festival attracts more than 50 000 visitors and is the second
Page 11 of 136 largest private show in the world. The district has 24.3% of the Province’s population and contributes 20.6% of the GDP in the Province.
In terms of economic functionality, the Free State can be divided into large urban areas (Bloemfontein, Botshabelo, Thaba Nchu, the Free State Goldfields – Welkom, Virginia, Odendaalsrus, Allenridge, Hennenman – Sasolburg), two regional towns (Bethlehem and Kroonstad), 11 medium-sized towns (Ladybrand, Ficksburg, Senekal, Phuthaditjhaba, Reitz, Heilbron, Frankfort, Viljoenskroon, Harrismith, Parys, Bothaville), and 52 small towns.
1.4.2. Climate
The Free State is situated on the flat, boundless plains in the centre of South Africa. It borders most of the other Provinces, the exceptions being Limpopo and the Western Cape. To the east, it has an international boundary with Lesotho, nestling in the hollow of its beanlike shape, and the escarpment separates it from the Eastern Cape and KwaZulu-Natal. The Orange and Vaal rivers form the southern, western and most of the northern border and the last section of the north-eastern boundary is formed by the Klip River.
The western part of the Province consists of plains, with pans as an important hydrological feature. The eastern part is mountainous. The Maluti Mountains along the border are connected to the Drakensberg on the border with KwaZulu-Natal. The Free State is almost treeless and consists mainly of grasslands with some Karoo vegetation in the south.
The soil is rich and the climate good, allowing a thriving agricultural industry. The Province is a summer-rainfall region and is extremely cold during the winter months, especially in the eastern mountainous regions where temperatures can drop to as low as -9.5 degrees C. The western and southern areas are semi-desert. The mean annual rainfall is 532mm.
1.4.3. Economy
The economy of the Province generates slightly less income for the domestic economy in comparison to the relative size of the provincial population. According to Statistics South Africa, the growth rate in the Free State was 0.7% between 1996 and 2003 compared with 2.8% at the national level (Statistics South Africa, 2006).
This is confirmed by the fact that, historically, the Province used to contribute more to the domestic economy than its population size warranted. In 1990, the Province contributed 6% to the GDP and 5% in 2002. This decrease in the relative contribution can, to a large extent, be attributed to a negative growth in mining at an average rate of -4% p.a. for the period 1980 to 1999.
The mining sector used to be the mainstay of the Provincial economy. It needs to be taken into account that the Free State is not surrounded by a prosperous economic environment of big businesses and industries, as are some other Provinces with huge infrastructural and economic activities.
However, over the past two years the economic growth rate has increased. The key economic challenges for the Province are to absorb the shock of the
Page 12 of 136 declining mining sector, maintain the existing contribution of agriculture, increase the global link, and address inherent inequities in the economy.
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Chapter Two Provincial Spatial, Demographic, Environmental and Economic Perspective
This chapter provides an analysis of the spatial, demographic, environmental, and economic profiles of the Free State. As common reference point for national, provincial, and local governments to redefine the South African spatial landscape and bring about far-reaching development, the NSDP forms the basis for the analysis in this chapter both at provincial and local level.
Spatial Perspective
The National Spatial Development Perspective (NSDP)
The FSGDS is embedded within the NSDP, which imbue an appreciation of spatial prioritisation in the decision-making processes. As a framework to redefine the space economy, underlying the NSDP are the following:
• To provide a framework within which to discuss the future development of the national space economy by reflecting the localities of severe deprivation and need, of resource potential, of infrastructure endowment, and of current and potential economic activity by describing the key social, economic, and natural resource trends and issues shaping the national geography. • To act as a common reference point for national, provincial, and local governments to analyse and debate the comparative development potential of localities by providing a coarse-grained national mapping of potential. • To identify key areas of tension and/or priority in achieving positive spatial outcomes with government infrastructure investment and development spending. • To provide national government’s strategic response to the above for a given timeframe.
Naturally, NSDP principles have a bearing on the Province’s development landscape and path. An assessment of the basic principles underlying the NSDP shows that the following crucial aspects should be considered:
• Fiscal limits will restrict further increases in infrastructure and/or development spending and suggest that existing budgets will largely be re-prioritised rather than expanded. • Government spending on fixed investment, other than the constitutional obligation to provide basic services to all citizens (such as water, electricity, and health and educational facilities), should therefore be focused on localities of economic growth and/or economic potential in order to attract private-sector investment, stimulate sustainable economic activities, and/or create long-term employment opportunities. • Efforts to address past and current social inequalities should focus on people, and not on places. In localities where there are both high levels of poverty and development potential, this could include fixed capital investment beyond basic services to exploit the potential of such localities. In localities with low development potential, government spending, other than on basic services, should focus on providing social transfers, human resource development, and labour market intelligence. This will enable people to become more mobile and to migrate – if they so choose – to localities more likely to provide sustainable employment or other economic opportunities.
Page 14 of 136 • To overcome the spatial distortions of apartheid, future settlement and economic development opportunities should be channelled into activity corridors and nodes adjacent to or linked with the main growth centres. Infrastructure investment and development spending should primarily support localities with the potential to become major growth nodes so as to create regional gateways to the global economy.
Given this approach, it is thus important to understand how the Free State’s potential and development needs are spread. To provide this picture, three levels of assessment are explained: an assessment at the level of the district, the local municipality, and the settlement.
District Municipalities
The first geographic level of assessment is at the district level. As already noted, there are five districts. Table 2.1 provides an overview of the population by district including economic contribution of each district.
District Population, 2001 Area GDP Contribution (%) in Number % share Ha % the Free State, 2004 Xhariep 135245 5.0 3 421 312 26.4 2.8 Motheo 728262 26.9 1 399 483 10.8 32.7 Lejweleputswa 657010 24.3 3 190 855 24.6 20.6 Thabo Mofutsanyana 725939 26.8 2 830 200 21.8 11.7 Fezile Dabi 460315 17.0 2 127 178 16.4 32.2 Table 2.1: Provincial Overview of the Population and Contribution to GDP by Districts Sources: Statistics South Africa, 2003; Global Insight, 2006
• The two districts whose proportionate contribution to the Free State economy is higher than their share of the Province are Motheo and Fezile Dabi. • Lejweleputswa’s contribution to the economy, as a percentage, is more or less in proportion to its share of the Province’s population. • In economic terms, Xhariep and Thabo Mofutsanyana proportionally contribute far less than their share of the population.
Local Municipalities
In addition to the five district municipalities, there are 20 local municipalities. These 20 local municipalities can be divided into four categories according to population size as indicated in Table 2.2 below.
Municipalities Population, 2001 GDP Contribution Area Numbers % (%) 2004 Ha % Letsemeng 42981 1.6 0.83 1 021 769 7.9 Kopanong 55940 2.1 1.30 1 523 407 11.7 Mohokare 36316 1.3 0.69 876 136 6.8 Naledi 27478 1.0 0.37 342 372 2.6 Mangaung 645437 23.8 31.35 628 366 4.8 Mantsopa 55346 2.0 1.16 428 744 3.3 Masilonyana 64409 2.4 2.25 679 696 5.2 Tokologo 32457 1.2 0.31 931 928 7.2 Tswelopele 53719 2.0 1.23 651 412 5.0 Matjhabeng 408167 15.1 15.04 515 548 4.0 Nala 98264 3.6 1.95 412 270 3.2
Page 15 of 136 Setsoto 123197 4.6 2.18 595 973 4.6 Dihlabeng 128928 4.8 3.47 473 344 3.6 Nketoana 61950 2.3 1.12 561 153 4.3 Maluti-a-Phofung 360788 13.3 4.33 440 368 3.4 Phumelela 50909 1.9 0.66 753 257 5.8 Moqhaka 167892 6.2 6.52 788 808 6.1 Ngwathe 118813 4.4 2.34 707 282 5.5 Metsimaholo 115972 4.3 21.61 173 190 1.3 Mafube 57639 2.1 1.28 457 897 3.5 Table 2.2: Provincial Population Size, GDP Contribution, and Area per Municipality Sources: Statistics South Africa, 2003; Global Insight, 2006
• The Mangaung and Metsimaholo municipalities contribute more to the economy of the Province than is to be expected from their population size. • Moqhaka and Matjhabeng municipalities’ contributions and population percentages are more or less the same. • The remaining municipalities’ contribution percentages are lower than their population size .
Settlement and Land Use
It is possible to distinguish between four types of urban settlements and three types of rural settlements in the Province. Table 2.3 provides an overview of the types of settlements, their share of population, GDP and area.
% Share of the % Share of GDP Contribution Category Population Population Of total Of urban Of total Of urban 1 Large urban areas 1097182 40.5 53.3 63.3 69.0 Regional towns 158617 5.9 7.8 5.5 6.0 Middle-order towns 255661 13.1 17.4 11.4 12.5 Small towns 435661 16.1 21.3 11.5 12.5 Commercial agricultural areas 399177 14.8 - 8.1 - Communal areas 258807 9.6 - 0.4 - Table.2.3: Provincial Spatial Overview of Land-Use and Settlements in Terms of Population and Economic Contribution Sources: Krige, 1995; Statistics South Africa, 2003; Global Insight, 2006 2
• The larger urban areas contribute significantly more to the GDP of the Province in comparison to their share of the population. • Bloemfontein and Sasolburg together contribute approximately 51% of the Province’s economy and if Welkom is added, this rises to above 60%.
1 The following assumptions were employed to determine the urban GDP: Agriculture was seen as a 100% rural generator of GDP. All the other sectors were seen as urban sectors. 2 This framework is adapted from the work by Krige, D.S., 1995: The demographic profile of the Free State, Urban and Regional Planning, Occasional Paper no 15, Bloemfontein. The following outlines the towns and urban areas falling under each category. Large urban areas : Bloemfontein, Thaba Nchu, Botshabelo, Welkom, Virginia, Odendaalsrus, Allanridge, Hennenman, Sasolburg. Regional Towns: Kroonstad and Bethlehem Middle-order towns : Ladybrand, Ficksburg, Phuthaditjhaba, Heilbron, Frankfort, Senekal, Parys, Bothaville, Viljoenskroon, Harrismith and Reitz Small Towns : All other settlements Commercial Agricultural areas : All rural areas under commercial farming Communal areas: Rural areas of Thaba Nchu and in Maluti-a-Phofung. Nature reserves
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Demographic Perspective
Demographics
According to the 2001 Census, the total provincial population was estimated at approximately 2.7 million people. This is somewhat more than the 2.64 million in 1996. In 1991, the Province’s population stood at 2.59 million.
The provincial population growth rate of 0.6% between 1996 and 2001 is lower than the national population growth rate of just below 2% per annum. This suggests that the Province is losing people. Although this may be attributed to a number of factors, the declining contribution of the agricultural and the mining sectors could account for this situation. However, the impact of HIV/AIDS should also be considered.
It is difficult to assess a picture of population growth by municipality, data being available only from 1996 and 2001. An assessment of data at the magisterial district level provides a better assessment of population growth. 3 Map 2.1 provides an overview of magisterial districts with very high, above average, below average, and very low real population growth rates 1991 – 2001. 4 Growth rates should not be confused with the growth in real numbers.
The high growth rates in the following magisterial districts should be noted: Bloemfontein (Mangaung), Sasolburg (Metsimaholo), and Bethlehem (Dihlabeng). The two magisterial districts with very low growth rates (declines) were Witsieshoek (Maluti-a-Phofung) and Welkom (Matjhabeng).
Area 2001 1996 0-14 15-34 35-60 60+ 0-14 15-34 35-60 60+ SA (n) 13759362 14693137 9047652 2596354 14365296 16552079 10845854 3056551 SA (%) 34.3 36.6 22.6 6.5 32.1 36.9 24.2 6.8 Free State (n) 830163 1000091 691678 184739 820012 980743 638476 165282 Free State (%) 30.7 36.9 25.6 6.8 31.5 37.7 24.5 6.3 Xhariep (n) 43393 47300 33626 10826 41858 42532 27818 9627 Xhariep (%) 32.1 35.0 24.9 8.0 34.4 34.9 22.8 7.9 Motheo (n) 210537 277034 189157 51534 202378 259530 161758 46321 Motheo (%) 28.9 38.0 26.0 7.1 30.2 38.7 24.1 6.9 Lejweleputswa (n) 196728 238884 183574 37824 196410 261729 201783 33822 Lejweleputswa (%) 29.9 36.4 27.9 5.8 28.3 37.7 29.1 4.9 Thabo Mofutsanyana (n) 244008 269285 163407 49239 242085 252621 134249 43908 Thabo Mofutsanyana (%) 33.6 37.1 22.5 6.8 36.0 37.5 20.0 6.5 Fezile Dabi (n) 135497 167588 121914 35316 137281 164331 112868 31604 Fezile Dabi (%) 29.4 36.4 26.5 7.7 30.8 36.8 25.3 7.1 * The total in this table might differ from other totals as the unspecified population was not included. Table 2.4: Provincial Overview of the Age Structure (by district and South Africa), 1996 and 2001 Source: Statistics South Africa, 2003
• Comparatively, the Thabo Mofutsanyana district had the highest percentage (33.6%) of children (0-14 years) in 2001.
3 It should be noted that the NSDP also uses the magisterial district data. 4 The increase in real numbers was used. Very high growth was calculated as a growth rate above the average plus the standard deviation. Above average was calculated as the magisterial districts with a growth rate above the average but below the average plus the standard deviation. Very low was calculated as a growth rate less than the average per magisterial district minus the standard deviation. The below average growth rate was calculated as growth in real numbers between the average and the bottom limit for very low growth rate.
Page 17 of 136 • In respect of youths, the Motheo District had the highest percentage (38.0%) in 2001. This is probably due to the presence of a number of tertiary learning institutions in Bloemfontein. The two districts to follow Motheo are Lejweleputswa and Thabo Mofutsanyana. • Xhariep had the highest percentage (7.9%) of old people, but in real numbers this was also the smallest number of old people per district.
The age breakdown per municipality shows that the various age categories are fairly evenly spread. However, the following main trends and spatial differences should be noted:
• The following municipalities have notably high percentage of children: Tswelopele (35.7%), Phumelela (35.1%), Mafube (34.5%), and Maluti-a- Phofung (34.5%). • Only Maluti-a-Phofung (37.5%) and Metsimaholo (39.6%) have a high percentage of youths. In real numbers, these municipalities also have significant numbers of young people. • Extraordinarily high percentages of elderly people are found in Ngwathe (9.5%), Kopanong (9.3%), and Naledi (8.7%). However, the real numbers of aged people in Kopanong and Naledi are fairly small.
Data above suggest that Maluti-a-Phofung requires special attention in respect of policies dealing with children and the youth. In considering the space economy, the following observations can be made.
• The largest percentage of children is found in the communal areas where 34.9% of the population is children. The lowest percentage is found in larger urban areas, where 25.6% of the population is children. In fact, the percentage of children increases from the larger urban areas (25.6%), to regional towns (27.3%), to medium-sized towns (30.8%), to small towns (32.8%), and to communal areas (34.9%). The cities have the highest percentage of youths (39.3%) and commercial farms, communal areas, and small towns have the lowest. • Although no specific trend is visible, commercial farms have the lowest percentage of old people (6.2%). The highest percentages are found in the small towns (8.4%), regional towns (8.1%), and the communal areas (7.8%).
The gender composition of the population usually indicates sending and receiving areas of migrant labour. The following main trends are visible:
• The percentage of females increased between 1996 and 2001. In 1996, 50.7% of the Province’s population was female. This increased to 52.1% in 2001. The main reason for the increase in the percentage of females is the decline of the mining industry and, therefore, a decline in the number of male migrant workers. • The two districts with the highest percentage of females are Motheo (52.4) and Thabo Mofutsanyana (53.6). Maluti-a-Phofung in Thabo Mofutsanyana had the largest percentage of female residents (53.9%). This confirms the fact that Maluti-a-Phofung has historically been a labour sending area. • The phenomenon of a larger percentage of women being present in areas of lower economic potential is also visible in the gender ratio of the various settlement types. Cities (51.8%) have the lowest percentage of females compared to rural areas. Cities are followed by regional towns (52.6%), medium-sized towns (52.7%) and small towns (52.7%). Most females are found in the communal areas, where 53.8% of the population is female.
Page 18 of 136 Overall, commercial farms have the lowest percentage of females (48.9%) as employment.
Settlement Types
The nature of the Province’s population is about 70% urban, compared with the national percentage of just over 50%. 5 However, the specific definition of urban is problematic as a large percentage of people reside in small and medium- sized towns.
• In respect of the settlement types, urban areas were growing at 2.2% between 1991 and 2001. This urban growth rate has placed immense pressure on the ability of municipalities to provide basic services. • Larger urban areas have been growing at about 0.65% despite a decline in real numbers in the Goldfields and Botshabelo. However, it should be noted that Bloemfontein and Sasolburg have experienced immense growth since 1991. In Bloemfontein, the annual growth rate was more than 3% per annum between 1991 and 2001. Despite the loss of more than 40 000 to 50 000 people in Welkom and Botshabelo, nearly 70 000 people were added in terms of real numbers between 1991 and 2001. • Regional towns were growing at 2.5% per annum between 1991 and 1996. This implies that about 35 000 new urban dwellers settled in this category of towns. Medium-sized towns were growing at 3.25% between 1991 and 1996. In reality, about 100 000 people settled in this settlement type. It is expected that this growth rate will decline over the next couple of years. • Small towns grew by 6.5% per annum between 1991 and 2001. However, this rate is expected to decline considerably as the 1996-2001 growth rate had already dropped to 3.0% per annum. Approximately 190 000 people settled in these small towns between 1991 and 2001, thus nearly doubling the population size of most small towns within ten years.
5 ‘Urban’ classified according to the definitions of urban and farmland in the Free State.
Page 19 of 136 Map 2.1: Population Growth per Magisterial District 1991-2001
SASOLBURG FREE STATE PROVINCIAL GOVERNMENT PARYS
VREDEFORT
VILJOENSKROON
FRANKFORT KOPPIES Legend HEILBRON Negative growth BOTHAVILLE VREDE Low growth (0-5000)
KROONSTAD Above average (5000+)
High growth (20000+) REITZ ODENDAALSRUS WESSELSBRON HOOPSTAD LINDLEY
HENNENMAN
WELKOM
VENTERSBURG VIRGINIA HARRISMITH
BETHLEHEM BULTFONTEIN SENEKAL THEUNISSEN
BOSHOF WINBURG WITSIESHOEK FOURIESBURG
MARQUARD
BRANDFORT FICKSBURG
CLOCOLAN
EXCELSIOR
THABA 'NCHU
JACOBSDAL PETRUSBURG BLOEMFONTEIN
BOTSHABELO LADYBRAND
KOFFIEFONTEIN LOCALITY PLAN
DEWETSDORP
REDDERSBURG
FAURESMITH EDENBURG
JAGERSFONTEIN WEPENER
TROMPSBURG
SMITHFIELD
PHILIPPOLIS ZASTRON
BETHULIE ROUXVILLE DEPARTMENT LOCAL GOVERNMENT & HOUSING SPATIAL PLANNING DIRECTORATE SPATIAL INFORMATION SERVICES
25 0 25 50 75 100 125 I Kilometers SOURCE: STATS SA 1991 and 2001 Census Data
Migration
The following provincial migration patterns are discernable:
• Urban areas grew by 2.8 % per annum between 1991 and 1996 and by 1.5% per annum between 1996 and 2001. In real terms, this represents a growth of nearly 400 000 people between 1991 and 2001. This was the main contributing factor to the growth in the urban population from 70.5 % in 1996, and 75.7% in 2001 (Marais and Pelser, 2006). • Rural areas experienced a population declined of 3.4 % per annum between 1991 and 1996 and an even larger decrease of 3.7% between 1996 and 2001. • The number of people residing on commercial farms has declined considerably over the past 15 years. In 1991, more than 630 000 (24.3% of the Province’s population) people resided on commercial farms. By 2001, this had declined to about 14.7% of the Province’s population. • The numbers of people still on commercial farms in the north are higher than those in the south. This means that the pressure exerted by urbanisation in the southern parts will be less marked than in the north. This certainly has serious implications for long-term resource allocation.
It would appear that a second wave of urbanisation is developing. This entails the migration of people from small towns to bigger urban centres. The percentage of households in small towns who have a household member working elsewhere is higher than in the regional towns and urban areas (Marais, 2003).
This is indicative of a further extension of migrant labour, but could also lead to a second wave of urbanisation – first from the farm to the nearest town and then to the larger urban areas. Alternatively, it would reinforce circular migration. Should a second wave of migration be realised, this will further
Page 20 of 136 increase the pressure on larger urban areas.
Environmental Perspective
Environmental
Sustainability is an approach to decision making, based on a core set of principles. The principles guide the manner in which the provision of services and infrastructure are planned and implemented. The National Environmental Management Act has identified, amongst others, the following list of sustainability principles:
• Satisfying basic human needs such as food, shelter, water, and energy. • Conserving biodiversity. • Enhancing and maintaining the health and vitality of natural systems. • Supporting the development of partnerships: government, community, and private sector partnerships. • Futurity: concern for future generations. • Ensuring environmental justice: the fair distribution of environmental “goods” and “bads” (Department of Environmental Affairs, 1998).
The topography of the Province ranges from escarpment to plains and pans. The western part is characterised by flat plains, pans, and undulating land. The south is primarily lowlands with hills. To the east the escarpment extends from Lesotho into low mountains and irregular undulating land with hills. The northern and central portions are marked by undulating land and hills.
The climatic conditions range from moist and warm in the east to dry and warm in the west. The Province experiences minimum temperatures of below 0ºC in winter and maximum temperatures of above 33ºC in summer. The annual rainfall figures vary from region to region.
The eastern region (Harrismith, Ficksburg, Bethlehem and Vrede), receives between 580mm to 1224mm rainfall per annum. The central region (Kroonstad, Bloemfontein, Welkom and Bothaville) records rainfall figures ranging between 455mm to 580mm. The driest part of the Province lies to the west of Bloemfontein, where rainfall figures range from 290mm to 455mm per annum.
The geology of the Province consists of mudstone in the east, andesite around Ficksburg and Bethlehem, shale in the north-west, and sedimentary rock resulting in the sandy soil in the western parts. The geology of Parys and surrounding areas is unique in that the granite and andesite form a dome-like feature, caused by the Vredefort Dome. The Vredefort Dome was awarded World Heritage status in 2005 and has become a major tourist attraction.
The nature of the geology and the soils will influence the location of future development initiatives, agricultural potential, and the bulk services. The table below shows the different kinds of soil found in the Province (see Table 2.5).
Soil Type Location Black and red strongly structured clay soil with a North-eastern region – Vrede and surrounding high base status areas (Phumelela) Red, yellow, and greyish soil with a high base North-western region – around Bothaville and status Welkom (Nala, Matjhabeng)
Page 21 of 136 South-eastern region – Ficksburg (Setsoto) Red, yellow, and greyish soil with a low to Harrismith and Parys (Maluti-a-Phofung and medium base status Ngwathe) Soil with marked clay accumulation that are Extend from the north to the south through the strongly structured with a reddish colour centre of the Province Clay soil with a non-reddish colour Southern and south-western region Red massive or weak-structured soil with a high Western portion of the Province status base Red and yellow sandy soil with a high base status North-western corner of the Province Non -calcareous soil Extend through out most of the Province Calcareous soil Southernmost region Eutrophic soil Harrismith, Bothaville, and Welkom (Maluti-a- Phofung, Nala and Matjhabeng) Table 2.5: Provincial Description of Soil Types and Location Source: Department of Tourism, Economic and Environmental Affairs (DTEEA), 2004
A more detailed picture of soil potential is available from the Environmental Atlas of South Africa (Department of Environmental Affairs, 2000). However, the following points can be made:
• Only 9% of the Province’s soil is highly suitable for agriculture. The two districts with the highest percentages in this regard are Lejweleputswa (23.6%) and Fezile Dabi (15.4%). • About 4.1% of the Province is not suitable for any agriculture or forestry but only for conservation. Thabo Mofutsanyana and Xhariep have the highest percentages for conservation only.
Water
The Province has two primary catchments areas, the Vaal River and the Orange River. The Province is drained by five major rivers. The Vaal River forms the northernmost border and has two dams. These are the Vaal Dam – the southern part of which falls within the Free State – and the Bloemhof Dam at Bloemhof. The Caledon River forms the border between Lesotho and South Africa and runs through the Province into the Gariep Dam.
Map 2.1: Soil Potential in the Free State
FREE STATE PROVINCIAL GOVERNMENT
FAZILE DABI DISTRICT MUNICIPALITY Legend
No dominant class
Not suitable for agriculture or commercial forestry
LEJWELEPUTSWA DISTRICT MUNICIPALITY Soils highly suited to arable agriculture where climate permits THABO MOFUTSANYANE DISTRICT MUNICIPALITY
Soils not suitable for arable agriculture where climate permits
Soils of intermediate suitability for arable agriculture where climate permits
Soils of poor suitability for arable agriculture where climate permits
Water bodies / other
MOTHEO DISTRICT MUNICIPALITY
LOCALITY PLAN
XHARIEP DISTRICT MUNICIPALITY
DEPARTMENT LOCAL GOVERNMENT & HOUSING SPATIAL PLANNING DIRECTORATE SPATIAL INFORMATION SERVICES
25 0 25 50 75 100 125 I Kilometers SOURCE: Department of Environmental Affairs 2000
The Orange River forms the southern boundary between the Eastern Cape and
Page 22 of 136 the Free State. It flows into the Gariep Dam. The Riet River flows into the Kalkfontein Dam, passes through Koffiefontein, and joins the Modder River near Jacobsdal.
The Modder River has three dams: the Rustfontein, Mockes, and Krugersdrift dams. The river runs from Dewetsdorp, through the northern part of Bloemfontein and to the west of Modderrivier town where it joins the Riet River (DTEEA, 2004). These rivers play an important conservation and tourism role in the Province.
Vegetation
The following three main vegetation types occur in the Province:
• Firstly, the dry, sandy highveld grassland is found in the dry, western parts such as Bloemfontein. The erratic summer rainfall makes it a high-risk area for agronomy. Although crops have replaced the natural grazing, this area is still better suited to natural grazing, particularly for sheep and cattle. However, the natural vegetation in this area is overgrazed. • Secondly, the moist, cool highveld grassland is found in the central-eastern part. The soils in this area are excellent for agronomy. The area is intensively grazed by cattle and sheep. It is also poorly conserved; 72% of the area has been transformed due to cultivation and ploughing. • Thirdly, the cold highveld grassland occurs in the undulating plains west of the eastern escarpment. The area is characterised by summer rainfall ranging between 700mm and 800mm and severe frost and snow in winter. Wheat and maize cultivation, and dairy farming are major economic drivers.
Conservation
Conservation-worthy areas include areas of historical, archaeological, and ecological significance. The Province is endowed with heritage resources. They range from buildings, battlefields, monuments, and sacred sites to museums. These resources have great tourism potential, which could be harnessed to bring much-needed revenue, particularly in rural areas.
• The Province has Stone Age, Rock Art, Iron Age, and Historical sites. It is estimated that, in total, 3000 known sites exist. However, only twelve of them have been declared. • The priority areas for conservation are the Central Grasslands and the South Eastern Escarpment (Department of Environmental Affairs, 2005). There are also biodiversity “hot spots” with pronounced levels of diversity and high levels of endemism which are under threat from large-scale habitat modification (Department of Environmental Affairs and Tourism, 2003). • The Drakensberg Alpine has been identified as one of the eight hot spots in the country. This area covers the Natal Drakensberg Park (a Ramsar Site) which will in future be extended to include the Nature Reserve in Maluti-a-Phofung and the Golden Gate Nature Reserve. The Maluti-Drakensberg Transfrontier Park, which links protected areas between South Africa and Lesotho, is one of the initiatives intended to ensure proper management of these valuable resources. • Wetlands occur in the eastern plateau and the Drakensberg/Maluti regions. The group of wetlands are characterised by riparian grass and reed marshes. The Seekoeivlei wetland at Memel, which has been declared a Ramsar site wetland is one such example (Department of Environmental Affairs, 2005). The group
Page 23 of 136 of wetlands in the Drakensberg/Maluti are alpine bogs, fens, restio marshes, and grass marshes. Wetlands play a pivotal role in biodiversity and must be protected, irrespective of their size (DTEEA, 2004). • The endorheic pans are found in the western half of the Province and extend in a south-westerly direction from Kroonstad in the north-east through Wesselsbron and Dealesville, in the region west of Bloemfontein, and south to Jacobsdal (Department of Environmental Affairs, 2005). • There are 14 nature reserves, covering a total area of 194 000 ha, managed by the Department of Tourism, Environment, and Economic Affairs (DTEEA, 2003). Other parks are privately owned. The Department is in the process of consolidating some of the nature reserves as part of the bioregional planning initiative.
Environmental sensitivity is a combination of factors which include: fauna, flora, biodiversity, conservation, geology, heritage, land cover, land use, morphology, natural features, Ramsar sites, river buffers, soils, and vegetation. Table 2.6 provides an overview of environmental sensitive areas.
Area 0 1 2 3 4 5 6 7 Xhariep 6.5 74.7 14.7 2.5 1.3 0.3 0.0 0.0 Motheo 20.6 52.2 19.9 6.7 0.5 0.1 0.0 0.0 Lejweleputswa 31.0 51.7 15.1 1.4 0.6 0.1 0.0 0.0 Thabo Mofutsanyana 26.6 41.5 22.3 6.8 2.0 0.6 0.2 0.0 Fezile Dabi 27.3 54.4 14.7 3.2 0.3 0.0 0.0 0.0 DMA 0.0 0.0 0.0 3.1 26.6 39.0 27.6 3.6 Free State 21.8 56.0 17.0 3.7 1.0 0.280 0.067 0.003 Table 2.6: Provincial Overview of Environmental Sensitivity per District, 2000 Source: Department of Environmental Affairs, 2000
In respect of the above table,
• About 94.8% of the Province is rated at Level Two or below. This shows that, compared with other areas, the environmental sensitivity is fairly low. Except for the district management area consisting of the Golden Gate National Park and Thabo Mofutsanyana. • Besides the environmental constraints, the Province also offers environmental opportunities. These include ecological services such as those provided by wetlands and tourism with product bases such as nature-based offerings, arts and cultural heritage, and historical heritage.
Economic Perspective
Economy
The Provincial economy has not performed well since 1996. The average economic growth rate for 1996 to 2000 was 1.2%, and for 2001 to 2003 it was 0.1%. For the period 1996 to 2004 the average economic growth rate for the Province was a mere 0.7% compared to 2.8% for South Africa as a whole (see Table 2.7). On the positive side, the economic growth rate for 2004-2005 increased to just above 4% (also see Figure 2.1).
Year South Africa Free State 1997 2.6% 1.0% 1998 0.5% -2.0% 1999 2.4% 1.2%
Page 24 of 136 2000 4.2% 4.4% 2001 2.7% -4.1% 2002 3.6% -0.7% 2003 2.8% 3.3% 2004 4.9% 3.9% 2005 4.2% 1996 -2004 2.8% 0.7% Table 2.7: Provincial Average Annual Growth (Constant at 2000 prices) Source: Global Insight, 2006 and Statistics SA, 2006
Inter-provincial comparison of population size and GDP contribution (2004)
40 Population 35 GDP
30
25
% 20
15
10
5
0 l e pe ta ap a ate a nga N eng C t la St a rn mpopo ern C i h ree Gau um L rt F aZulu- North-West p o w M Western Cape Easte N K Provinces Figure 2.1: Inter-provincial Comparison of Population Size and GDP Contribution Source : Global Insight
The nominal GDP of the Province, which measures the total of final products and services produced within the Province, amounted to just over R65 billion by 2004 (Global Insight, 2006). Real per capita GDP was R21 753 in 2004, compared to R12 866 in 1994 (constant 2000 prices).
The Province contributes only 4.7% towards the domestic economy. This is less than the comparative size (6.3%) of the provincial population (Figure 2.2). This slightly smaller economy relative to the population is also reflected in the per capita GVA of R21 753, compared to the average of R29 071 for South Africa.
By comparison, the populations of Gauteng and the Western Cape are substantially smaller than the contribution of their economies, while the Free State and some of the other Provinces, such as the Eastern Cape and Limpopo, contribute less towards the domestic economy than their contribution to the national population.
Employment
Unemployment is the most serious issue the economy faces (Burger and Marinkov, 2005). According to the official definition, national unemployment rose from 20% in 1994 to over 30% in 2003 (Mohr, 1998). Even though this figure is high, it still disguises the fact that some Provinces suffer disproportionately from unemployment, thereby indicating a spatial dimension to unemployment. In the Free State, Limpopo and KwaZulu-Natal, where unemployment is most acute, the rate was respectively 30.6%, 32.4% and 31.7% in 2005 (Table 2.8 and Figure 2.3). In September 2006, the rate of unemployment decreased in the Free State to 26.5%.
Page 25 of 136 March 2001 March 2002 March 2003 March 2004 September 2005 South Africa 26.4 29.7 31.2 27.9 26.5 Provinces Free State 27.4 31.1 31.2 26 30.6 Western Cape 19 18.4 19.9 16.8 17.6 Eastern Cape 28.4 26.4 29.8 32.6 27.1 Northern Cape 23.8 27.7 28.9 23.4 29.4 KwaZulu-Natal 26.2 35.9 36.3 33 31.7 North West 27.9 30.3 32.3 38 28.8 Gauteng 28.2 29.8 38 27.7 22.7 Mpumalanga 26.3 29.9 38 25.7 27.4 Limpopo 28.1 35.1 39.4 31.2 32.4 Table 2.8: Unemployment in South Africa by Province Since 2001 Source: Statistics South Africa, 2005
Economic sectors differ in their capacity to generate employment opportunities. Figure 2.2 presents perspectives on the relative distribution of direct, formal employment opportunities generated per sector. Mining and manufacturing, two usually capital-intensive sectors, had lost a substantial number of formal jobs while community service, agriculture, and trade gained in terms of employment.
Sectorial employment distribution
35 1996 2004 30
25
20 % 15
10
5
0 g e n on rt ri i u de ining t tricity uct c c r nspo Service M t Tra nance y ricultur fa le s Fi it g u E Tra n A on u C Man m m o C Sectors Figure 2.2: Sectoral Employment Contribution in the Free State, 1996 and 2004 Source: Global Insight, 2006
Figure 2.2 should also be interpreted in the context of Table 2.17 and Figure 2.5 so as to compare the economic profile with the sources of employment. This comparison indicates that agriculture is labour intensive and contributes to only 8% of the economy, but generates about 21% of all formal employment opportunities. Although trade contributes to 12% of the economy but generates 10% of all formal employment opportunities, it does provide for more than 60% of all informal employment opportunities in the Province.
It is also important to note that the level of employment is measured at the place of employment and not at the origin of employment.
In the case of the Free State, a large percentage of men working on the mines are not from the Province, but from other Provinces and Lesotho. Thus, the actual number of Free State people employed is even lower than the number reflected in the official statistics.
Human Development
Table 2.9 provides an overview of the Human Development Index (HDI) and
Page 26 of 136 the Gini-coefficient.
HDI 6 Gini-coefficient 7 Province 1996 2004 1996 2004 Free State 0.53 0.55 0.59 0.64 Western Cape 0.66 0.68 0.55 0.58 Eastern Cape 0.49 0.52 0.60 0.65 Northern Cape 0.54 0.57 0.59 0.61 KwaZulu-Natal 0.52 0.57 0.60 0.65 North West 0.50 0.53 0.55 0.61 Gauteng 0.67 0.70 0.58 0.59 Mpumalanga 0.50 0.55 0.59 0.64 Limpopo 0.45 0.50 0.58 0.65 South Afr ica 0.56 0.59 0.60 0.64 Table 2.9: Human Development and inequality, 1996 and 2004 Source: Global Insight, 2006
The following observation can be made:
• Although there has been an improvement in the human development status of people in the Province (HDI 0.53 to 0.55), the income inequality has also increased (Gini 0.59 to 0.64). This means that, although the fruits of economic growth have benefited some people, they have also intensified the growing income gap between the rich and the poor. • Given the current socio-economic structure, it seems that a rapid improvement in the economic development status of this region could lead to an increase in inequality. Another interesting observation is that the income gap in the Province is currently identical with the level in South Africa as a whole. Although human development is lower than the average for the country, the same level of inequality prevails. • The number of people living in poverty grew from over one million in 1996 to almost 1.7 million in 2004, representing 55.9% of the total population of the Province, which amounts to an increase from the 38.6% in 1996.
Year Number of people (‘000) As % of total Free State population 1996 1 064 38.6 2004 1 672 55.9 Table 2.10: Number of People Living in Poverty 8 Sources: BMR, 1996 and 2004
Economic Structure
Historically, the economy of the Province was based on mining and agriculture.
6 The HDI is a composite, relative index that attempts to quantify the extent of human development of a community or country. It is based on measures of life expectancy, literacy and per capita income. It is thus seen as a measure of people’s ability to live a long and healthy life and to have sufficient resources to obtain a decent living. The HDI can assume a maximum level of 1, indicating a high level of human development, and a minimum value of 0, indicating a low level of development. 7 A well-known measure of income distribution is the Gini-coefficient, which can take a value between zero and one. The closer the coefficient approximates to one, the more unequal the distribution of income. For South Africa the coefficient is 0.64 for 2004. This makes South Africa a country with one of the worst, if not the worst, income distributions in the world. 8 The poverty rate is the percentage of people living in households with an income less than the poverty income. The poverty income is defined as the minimum monthly income needed to sustain a household and it varies according to household size: the larger the household, the larger the income required to keep its members out of poverty. The poverty income used in the REX is based on the Bureau of Market Research’s Minimum Living Level.
Page 27 of 136 Both pillars of the provincial economy have been declining since the early 1990s (Centre for Development and Enterprise. 2005). It is clear that the structural change of the economy is continuing to take shape, with the mining sector contributing less whereas the services sector has experienced a dramatic increase (Premier’s Economic Advisory Council, 2005).
Other sectors that experienced declines are the construction and energy sectors. The finance, transport, and trade sectors have seen marginal increases. The lower contribution of mining can be due to factors such as the increase in the production cost, increase in exchange rates, and the resource base becoming depleted.
These changes in the structural composition indicate a gradual shift away from the primary and secondary sectors towards the tertiary sector. A gradual movement away from the primary sector towards the secondary and tertiary sectors is normally considered to be characteristic of a maturing economy.
Relative contribution per sector
30 1990 2004 25
20
% 15
10
5
0 Trade Mining Finance Transport services Electricity Electricity Agriculture Community Construction Manufacturing
Figure 2.3: The Relative Contribution of Different Sectors of the Economy, 1990 and 2004 Source: Global Insight, 2006
• It is significant that the contribution of all sectors except agriculture, mining, electricity and construction increased. The community services and finance sectors have grown well compared to the other sectors. • Mi ning contributed to approximately 22% to the Province’s economy in 1990. This figure dropped to about 10% in 2004. More alarming is the fact that the employment levels in the mining industry dropped from 19% in 1990 to 9.9% in 2004. Although the declines are not unique to the Province, their impact on has probably been more serious because, historically, the mining sector had been the dominant sector. • The contribution of agriculture remained more or less constant between 1990 and 2002. However, considering that this sector’s contribution to the Province’s economy amounted to 18% in 1980, there has also been a trend of decline over the past 25 years. More than 55 000 jobs were lost in the agricultural sector between 1981 and 1996. These job losses can be related directly to deregulation in the agricultural sector (which is mainly comprised of white-owned agricultural enterprises) since 1990, although other factors such as labour legislation should also be mentioned. Other aspects include the fact that cheaper agricultural products have started to flow into the South African economy along with the fact that South African farmers have lost subsidies from government. • The manufacturing industry has been closely linked to state subsidies for economic decentralisation in former homelands under apartheid rule. The declining contribution of manufacturing between 1990 and 2002 was the result of the phasing out of the subsidies. Employment also decreased between 1996 and 2004 – in fact, it decreased by 13 715 formal job opportunities. A number of other
Page 28 of 136 reasons have contributed to the declining manufacturing industry. These include low skill levels, the declining mining industry and the decline in the importance of the agricultural sector. • The electricity and water sector generates a marginal contribution towards the provincial economy and that this contribution is on the decline. The sector’s contribution towards the creation of employment is less than 1%. This can be attributed to the small percentage of electricity generated in the Province. Two hydroelectric power plants are located at the Gariep and Vanderkloof dams. • The construction sector does not generate a meaningful contribution to the economy, nor does it generate a significant contribution towards provincial employment. There is also a slight yet constant decrease in the relative contribution of the sector to the provincial economy. • The trade and catering sector generates an intermediate contribution at a stable 10%. This sector is fairly labour intensive, with the relative contribution towards the economy and employment being roughly the same. For the purposes of this profile, the tourism industry is considered to be one of the main elements of the trade and catering sector. The Province has a number of unique tourist attractions ranging from the scenic beauty of the Golden Gate Park to the rustic atmosphere of the eastern highlands. However, these attractions are located far from one another and this hinders the creation of a critical mass of attractions. • The transport and communication sector generates a marginal contribution both to the economy and to employment. It would appear as if both of these have only marginally increased. The Province is fairly well provided with public and private transport in the urban areas, but some rural areas have inadequate mobility, given the limited extent of public transport services mainly as a result of insufficient passenger volumes. The sector plays a crucial support role to the economy, particularly in view of the emergence of e-commerce which makes access to the Internet essential. The Province has a comparative disadvantage in that it is landlocked, which implies high transport costs to harbours for both imports and exports. The taxi industry is an important source of employment and generates income for a large number of people. • Finance and real estate sector makes a meaningful contribution to the provincial economy. There are signs of an increase in its contribution towards both the economy and employment. • The services sector consists of the nine provincial government departments and the five district and twenty local municipalities. Table 2.17 shows that the sector generates a large contribution towards the provincial economy and that its contribution has been steadily on increase from about 19% to 27%. However, the sector is generally not structured to be a driver of the economy as the largest portion of the GVA is paid as salaries and is not a value-added or saleable product or service. As an indication, the Gross Operating Surplus (GOS) expressed as a percentage of the GVA was only 18.3% in 2002, implying that 81.7% of the GVA comprises salaries. The large amount paid in salaries represents a significant contribution to the available spending power, which in turn supports sectors such as the trade sector.
Sector GDP Formal Employment Informal Employment 1990 2004 1996 2004 1996 2004 Agriculture 9.2 8.2 18.9 (118 235) 21.2 (124 371) ** ** Mining 21.5 9.7 19.2 (120 376) 9.9 (57 861) ** ** Manufacturing 18.7 19.7 7.6 (47 373) 5.7 (33 658) 12.5 (6 885) 9.8 (10 048) Electricity 5.3 3.9 0.8 (5 093) 0.9 (5 114) ** ** Construction 2.6 1.4 2.5 (15 717) 2.3 (13 261) 15.4 (8 452) 9.2 (9 476) Trade 10.4 12.1 8.9 (55 739) 10.1 (59 200) 51.6 (28 296) 61.7 (63 242)
Page 29 of 136 Transport 5.8 7.4 4.1 (25 537) 3.1 (17 982) 2.7 (1 506) 2.0 (2 084) Finance 7.1 10.6 3.9 (24 655) 4.6 (27 083) 9.0 (4 962) 8.7 (8 965) Community services 19.4 27.0 17.5 (110 326) 25.5 (149 388) 8.7 (4 786) 8.5 (8 751) Total 100.0 100.0 83.4* (523 052) 83.3* (487 916) 100 (54 886) 100 (102 566) * Excludes employment in the household sector ** Numbers not available for these sectors Table 2.11: Sectoral share of GDP, formal employment, and informal employment Source: Global Insight, 2006
The National Programme for the Creation of Enterprises and Jobs in the Second Economy is a programme of the Asgisa. The main objectives of the National Programme include:
• Providing increased employment and income for unemployed or under- employed poor people. • Reducing income gaps in society. • Providing more productive jobs in villages and small towns to lessen migration to big city slums. • Bringing about economic empowerment of (mainly black) poor women. • Addressing constraints that inhibit economic growth and shared benefits.
The importance that Asgisa assigns to the second economy and shared benefits to more vulnerable groups and enterprises necessitates a profiling of the second economy. From 1996 to 2004, the total number of informal jobs increased by 47 680 in the second economy compared to a decrease of 35 136 jobs in the formal economy.
The Province’s share in the total informal labour force of South Africa is 3.9%. One of the reasons for the slow development of the second economy is the vast rural nature of the Province with its relatively low production capacity and, consequently, its low levels of income. This second economy provides only 8.7% of the total employment (Development Bank of Southern Africa, 2004)
People informally employed were predominantly in the Trade sector(with approximately six out of every ten people being informally employed), while manufacturing, construction, finance, and community services also attracted sizeable numbers of informally employed people for 2004 (Rogerson, 2000).
Space Economy
There seem to be five distinct spatial patterns in the Province economy.
• First, large-scale agricultural output is prevalent in the northern and north- eastern Free State. Maize and wheat are the main products although some efforts have been made to diversify agricultural products. Farming with apples and asparagus has been attempted in the north-eastern parts. Although agriculture is also dominant in the southern and south-western parts, it is less extensive and more dependent on stock farming. • The second significant aspect is the dominance of the petrochemical industry in Sasolburg in respect of manufacturing. This industry is closely related to the Sasol factories. Today, 20% of the employment in manufacturing is located in Sasolburg. Fezile Dabi contributes to more than 70% of the economic value of manufacturing in the Province. • The third major economic hub is the Goldfields, dominated by the gold-mining industry. As noted, mining has historically played a fundamental role in the
Page 30 of 136 economy of the Province. However, after a massive boom in the industry in the late 1980s, the subsequent decline of the industry has left the Goldfields with a massive decline in population, the closing down of businesses, as well as the closing down of manufacturing industries. • The fourth spatial characteristic of the Province’s economy is the large-scale manufacturing infrastructure in the former homeland areas. This infrastructure was created through the policy of economic decentralisation under apartheid. The operation of these firms was also highly subsidised. In the process, large manufacturing estates were erected in the Phuthaditjhaba, Thaba Nchu, and Botshabelo areas. With the phasing-out of the subsidies, jobs were lost. The Free State Development Corporation (FDC), however, managed to ensure that, by 2003, up to 90% of their premises were occupied. Although the level of job creation is lower, a large percentage of employment is no longer focused on manufacturing only, the available infrastructure, with the exception of Thaba Nchu, is almost fully utilised. • The fifth characteristic of the Province’s economy is the dominance of Bloemfontein, mainly as a public-sector and retail city. The Motheo District, within which Bloemfontein falls, is also the district with the highest percentage of people employed in community services. Although Bloemfontein is one of the few urban areas where a positive economic growth is being experienced, it compares very poorly with other secondary cities in South Africa (Centre for Development and Enterprise, 2005).
In view of the NSDP, it is pivotal to understand how the Province’s potential and development needs are spread. Therefore, the following three levels of assessment are examined: an assessment at district level, an assessment at the local municipality level, and an assessment at settlement level.
District Economy
From Table 2.12 below, it is clear that Motheo and Fezile Dabi are the districts with the highest contribution to the Province’s economy. In terms of GDP, Motheo and Fezile Dabi have contributed to almost two-thirds (64.7%) of the Province’s economy. Fezile Dabi has almost doubled its economic contribution (31.8%) compared to its population share (16.3%).
In contrast, Thabo Mofutsanyana and Xhariep together contributed to only 14.6% of the total output of the Province’s economy. While Lejweleputswa had contributed the most towards the provincial economy in 1996, it slid back to the third place (20.8%) by 2004.
In terms of the NSDP, it is clear that, from a district economic perspective, the focus regarding potential for growth should be on Fezile Dabi and Motheo as key districts to propel the Province’s economy in the next ten years. Fezile Dabi has almost tripled its economic contribution relative to the other sectors, while Motheo has maintained an increase in GVA rate of just more than 7%.
Page 31 of 136 District 1996 2004 Growth or Annual decline in real growth rate, GVA % GVA % numbers 1996 – 2004 (000) (000) (000) Xhariep 2 159 926 6.6 1 650 082 2.8 -509 844 Motheo 8 408 338 25.7 19 218 931 32.9 10 810 593 Lejweleputswa 9 533 734 29.1 12 143 119 20.8 2 609 385 Thabo Mofutsanyana 4 122 030 26.1 6 869 922 11.8 2 747 892 Fezile Dabi 8 550 566 12.6 18 567 251 31.8 10 016 685 Free State 32 774 594 100 58 449 305 100 25 674 711 0.7% South Africa 565 472 968 100 1 230 409 307 100 664 936 339 2.8% Table 2.12: GVA per District Municipality Source: Statistics South Africa, 1998; Global Insight, 2006
The top five localities contributing most to the economy of the Province during 2004 were Bloemfontein (R 17.7 bill.), Sasolburg (R 15.2 bill.), Welkom (R6.5 bill.), Kroonstad (R2.3 bill.) and Bethlehem (R2.2 bill.).
If the proportions for 1996 and 2004 are compared, informal employment has remained fairly stable for the five districts. There was only a marginal increase in Motheo. Although the numbers of informally employed people have almost doubled from 54 886 (1996) to more than 102 000 (2004), this constitutes less than 4% of the total country’s informal labour force.
Formal employment Informal employment District 1996 2004 1996 2004 Number % Number % Number % Number % Xhariep 44646 7.1 48232 8.2 4234 7.7 7 912 7.7 Motheo 141714 22.6 156000 26.7 16762 30.5 33 017 32.2 Lejweleputswa 229954 36.7 164390 28.1 11359 20.7 20 503 20.0 Fezile Dabi 100064 16.0 109606 18.7 8491 15.5 15 353 15.0 Thabo 109418 17.5 106477 18.2 14042 25.6 25 705 25.1 Mofutsanyana Total 625796 100 584705 100 54886 100.0 102 491 100.0 Table 2.13: Employment Profile per District Municipality Source: Global Insight, 2006
The following important conclusions can be drawn from the table above:
• In Motheo, an increase in the share of formal employment between 1996 and 2004 resulted in an increase in the share of the informally employed workforce, suggesting that the nature and composition of the formal economy is such that it also stimulates entrepreneurial activity in the second economy. • In Fezile Dabi, an increase in the output of the formal labour force between 1996 and 2004 did not devolve to the informal employment sector. On the contrary, there was even a marginal decline, perhaps owing to the high-value and high-technology character of the petrochemical industrial node in the Sasolburg-Metsimaholo area. • The high proportions of the informal labour force in Thabo Mofutsanyana also indicate the strong presence of a survivalist, micro-entrepreneurial sector.
Just more than half a million of the people were unemployed. Lejweleputswa had almost a third of the unemployed (30.9%). This can once again be ascribed to the declining performance of the mining sector. Lejweleputswa also experienced the highest poverty rate increase of all five districts.
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1996 2004 District People % of total people Unemploymen People % of total Unemploym unemployed unemployed t rate unemployed people ent rate unemployed Xhariep 17 160 5.8 26.9 28 301 5.6 34.0 Motheo 74599 25.2 31.3 120 173 23.7 37.8 Lejweleputswa 82654 27.9 26.2 156 568 30.9 38.8 Fezile Dabi 45477 15.4 27.4 75 893 15.0 35.6 Thabo 75926 25.7 36.7 125 941 24.8 45.8 Mofutsanyana Free State 296427 100.0 29.9 506 876 100.0 39.1 South Africa 4 627 824 33.9 7 382 156 40.4 Table 2.14 Unemployment Profile per District Municipality Source: Statistics South Africa, 1998; Global Insight, 2006
Almost 1.7 million people (55.9%) in the Province were living in poverty in 2004. Besides Thabo Mofutsanyana, which has the largest proportion and number of people living in poverty (68.1% or 510 124), more than 56.1% of the population in Lejweleputswa and Fezile Dabi were also living in poverty. However, in real terms, Lejweleputswa has almost double the number of people living in poverty (448 163) compared to Fezile Dabi (289 284).
1996 2004 People % of People % of People Living % of People % of People District Living in Living in People in Poverty Living in Living in Poverty Poverty in Living in Poverty in the Poverty of the FS Poverty of FS Total total Population Population Xhariep 66515 6.3 36.1 98 590 5.9 49.5 Motheo 218096 20.6 33.2 325 958 19.5 44.9 Lejweleputswa 260183 24.5 34.9 448 163 26.8 56.1 Fezile Dabi 193152 18.2 40.4 289 284 17.3 56.1 Thabo 321935 30.4 47.1 510 124 30.5 68.1 Mofutsanyana Free State 1059881 100.0 28.6 1 672 119 -- 55.9 South Africa 17100720 40.5 23500962 49.7 Table 2.15: Poverty profile per District Municipality Source: Statistics South Africa, 1998; Global Insight, 2006
If the poverty figures and proportions for the five municipal districts for 1996 and 2004 are compared, the following key observations can be made:
• The real numbers of people living in poverty almost doubled in Lejweleputswa – from just more than 260 000 to almost half a million people during this nine- year interval. This district also experienced the largest increase, 21.3%, in its poverty rate – from 34.9% to 56.1% • Thabo Mofutsanyana showed an increase of 21% in its poverty rate and is the district in which a third of the Province’s people living in poverty reside. • Xhariep, Motheo, and Fezile Dabi experienced marginal decreases in their share of poor people in the Province between 1996 and 2004. This is largely due to the magnitude of the poverty problem in Thabo Mofutsanyana and Lejweleputswa.
Page 33 of 136 Local Economy
The number of people living in poverty in Mangaung, Matjhabeng and Maluti-a- Phofung account for almost 50% of the poor. These municipalities account for 61% of the unemployed. Metsimaholo has the lowest poverty rate (31.6%).
Tables 2.14 and 2.15 provide an overview of these types of settlements in the Free State and their share of employment, GDP, poverty, and development status (see also Map 2.3).
Municipality GDP Population Employment Unemployment People Living in contribution Size Contribution Poverty (%) (%) (Formal and Informal) N RATE N RATE N RATE Letsemeng 0.83 1.3 10217 62.4 5850 35.7 21862 55.5 Kopanong 1.30 3.8 35961 70.6 17206 33.8 22021 40.2 Mohokare 0.69 1.5 9965 62.0 5244 32.6 30795 67.9 Naledi 0.37 0.8 5337 57.8 3315 35.9 18308 74.8 Mangaung 31.35 21.5 169150 59.6 107305 37.8 263267 41.0 Mantsopa 1.16 2.0 14530 58.7 9553 38.6 44382 73.8 Masilonyana 2.25 2.3 16412 50.3 12254 37.6 46401 68.6 Tokologo 0.31 1.0 7397 61.4 3769 31.3 23095 79.6 Tswelopele 1.23 1.9 13018 59.5 6971 31.9 45762 79.6 Matjhabeng 15.04 18.7 131854 52.9 121247 39.5 269598 48.1 Nala 1.95 2.8 16212 54.0 12328 41.1 63307 74.9 Setsoto 2.18 3.7 29945 65.0 13486 29.3 83366 75.2 Dihlabeng 3.47 3.4 27393 64.1 12595 29.5 60475 58.9 Nketoana 1.12 2.7 18048 57.1 9954 31.7 60454 74.0 Maluti-a-Phofung 4.33 13.2 44654 34.1 80664 61.7 258266 65.7 Phumelela 0.66 2.0 12412 51.8 9242 38.6 47563 78.2 Moqhaka 6.52 6.2 41529 50.9 26288 32.2 110650 60.1 Ngwathe 2.34 4.9 29229 52.9 24034 43.5 92822 65.6 Metsimaholo 21.61 4.2 42218 76.2 18508 33.4 39710 31.6 Mafube 1.28 2.0 12652 60.5 7063 33.8 46101 77. 0 Table 2.16: Local Municipalities and Economic Development Indicators Source: Global Insight, 2006
Page 34 of 136 Map 2.3: Key Socio-economic % Unemployed I Indicators per Muncilality 2004
Metsimaholo Local Municipality
Mafube Local Municipality Ngwathe Local Municipality
Moqhaka Local Municipality Nala Local Municipality FREE STATE PROVINCIAL GOVERNMENT Phumelela Local Municipality
Nketoana Local Municipality
Tswelopele Local Municipality Matjhabeng Local Municipality
Dihlabeng Local Municipality Maluti a Phofung Local Municipality
Tokologo Local Municipality Legend Masilonyana Local Municipality Setsoto Local Municipality % PEOPLE LIVING IN POVERTY Local Municipalities
High
Above average Mantsopa Local Municipality Mangaung Local Municipality Below average Metsimaholo Local Municipality
Letsemeng Local Municipality Low
Mafube Local Municipality Naledi Local Municipality Ngwathe Local Municipality
Moqhaka Local Municipality
Kopanong Local Municipality Nala Local Municipality Phumelela Local Municipality
Mohokare Local Municipality Nketoana Local Municipality
Tswelopele Local Municipality Matjhabeng Local Municipality
Dihlabeng Local Municipality Maluti a Phofung Local Municipality
Tokologo Local Municipality
Masilonyana Local Municipality Setsoto Local Municipality
Mantsopa Local Municipality Mangaung Local Municipality
Letsemeng Local Municipality
GDP CONTRIBUTION Naledi Local Municipality
Kopanong Local Municipality
Metsimaholo Local Municipality Mohokare Local Municipality LOCALITY PLAN
Mafube Local Municipality Ngwathe Local Municipality
Moqhaka Local Municipality
Nala Local Municipality Phumelela Local Municipality
Nketoana Local Municipality
Tswelopele Local Municipality Matjhabeng Local Municipality
Dihlabeng Local Municipality Maluti a Phofung Local Municipality
Tokologo Local Municipality
Masilonyana Local Municipality Setsoto Local Municipality
Mantsopa Local Municipality Mangaung Local Municipality
Letsemeng Local Municipality DEPARTMENT LOCAL GOVENMENT & HOUSING Naledi Local Municipality SPATIAL PLANNING DIRECTORATE SPATIAL INFORMATION SERVICES
Kopanong Local Municipality
Mohokare Local Municipality
Category Formal Employment Informal Employment 1996 2004 1996 2004 N % n % n % n % Large urban areas 345886 54.7 305699 52.0 26921 49.8 52 427 54.5 Regional towns 25436 4.0 24062 4.1 4398 8.1 8 289 8.6 Middle-order towns 118459 18.7 119046 20.2 9453 17.5 15 892 16.5 Small towns 142099 22.5 139478 23.7 13253 24.5 19 527 20.3 Total 631880 100 588285 100 54026 100 102 100 566 Table 2.17: Spatial Overview of Formal and Informal Employment, 1996-2004 Source: Statistics South Africa, 1998; Global Insight, 2006
According to the figures in Table 2.17, the share in formal employment remained relatively stable irrespective of settlement type. However, there were more changes when the informal employment proportions were considered. Large urban areas lost marginally more jobs than other settlement types.
Table 2.16 suggests that the unemployment and poverty rates are currently higher in the small towns. In real terms, the total number of unemployed people in small towns also amounts to more than double the number of all the other unemployed people in other settlements.
GDP Population Employment Unemployment People living in HDI Gini- Settlement contribution size Contribution poverty coefficient (%) (%) (Formal & informal) N Rate N Rate N Rate Large urban areas 71.8 43.0 35812 54.0 82405 12.4 565061 41.7 0.5 0.5 7
Page 35 of 136 Regional towns 6.1 7.0 60215 134.0 10153 22.6 120628 55.0 0.6 0.6 Medium- sized 12.6 26.7 14324 44.7 68879 21.5 562591 66.0 0.5 0.6 towns 3 Small towns 9.6 23.3 16209 58.4 383789 138.3 549614 74.8 0.3 0.4 7 Table 2.18 Provincial Spatial Overview in Terms of Economic and Development Indicators Source : Global Insight, 2006
Category HDI Gini-coefficient 1996 2004 1996 2004 Large urban areas 0.49 0.50 0.47 0.52 Regional towns 0.56 0.58 0.57 0.61 Medium- sized towns 0.48 0.51 0.59 0.62 Small towns 0.29 0.31 0.35 0.38 Table 2.19: provincial Spatial Overview of Human Development Status and Inequality Source: Statistics South Africa, 1998; Global Insight, 2006
From the table above, the following observations can be made:
• The human development status is highest for people in regional towns and lowest for small towns. • The human development status as measured by HDI improved between 1996 and 2004, irrespective of settlement type. • Scrutiny of the Gini-coefficients reveals that inequality has been growing in all settlement types since 2004. • The income gap, as measured by the Gini-coefficient, is the biggest for regional and medium-sized towns, and the smallest gap applies to small towns.
To bolster economic growth and create employment opportunities, SMME development is also high on the agenda of government. However, the Province has not received considerable support with regard to the creation of infrastructure for small-business. An evaluation conducted on SMMEs shows that of the 92 BSCs established in the country, 5.4% were in the Province.
It is commonly accepted that a large number, more than 50%, of SMMEs do not survive for more than three years. At the same time, the importance of SMMEs to the local economy is generally recognised both nationally and internationally. Therefore, a need exists for entrepreneurial support.
The role of established SMMEs is growing in significance in the provincial manufacturing economy, both in terms of their contribution to the total manufacturing enterprise and of their share of total employment. For example, in 1994, 68% of manufacturing enterprises were SMMEs. By 2003, this percentage had risen to nearly 80%. The number of people employed in SMME manufacturing nearly doubled from 10 000 to 18100 between 1993 and 2004. In the process, the share of manufacturing SMMEs, in terms of employment, increased from 20% in 1994 to 38.9% in 2003. High levels of enterprise growth were experienced in food, fabricated metals and clothing (Premier’s Economic Advisory Council, 2004). The SMME manufacturing sector has clustered mainly around Bloemfontein and Harrismith, with a notable decline in the small towns. There has also been a decline of SMMEs delivering products and services to the gold mines. Table 2.26 provides an overview of the main findings in respect of established manufacturing entrepreneurs and emergent manufacturing entrepreneurs.
Page 36 of 136 Criteria Emergent Established Ownership Mainly black, male, and Mainly white males aged 30 to 51 between 31 and 60 Reason for establishment Necessity rather than Mainly the need to be self-employed, choice but increasingly because of retrenchments Sectors involved Metal-working and brick- Wide variety – main ones are clothing making and food Start-up capital Household savings Own savings mainly The Free State as environment for Free State is perceived negatively as a SMMEs base for SMME development Major problems Finance, business Labour, macro-economic in terms of premises, narrow/local import duties on textiles markets Knowledge of public sector Limited Limited support programmes Table 2.20: A Comparison of Emergent and Established SMME Manufacturing enterprises Source: Global Insight, 2006 .
The Premier’s Economic Advisory Council (PEAC) concludes that the findings on emergent manufacturers highlighted the inadequate national government support programmes to reach the targeted groups.
Tourism has the potential to create employment. The main findings related to SMMEs in the tourism economy and the focus on micro-tourism SMMEs from a study by the PEAC are that:
• SMMEs represent the largest constituent of tourism enterprises and the accommodation sector is the most significant sub-sector of the tourism. • As far as tourism is concerned, the SMME economy is overwhelmingly dominated by white entrepreneurs. • The level of ownership and involvement by black entrepreneurs is low and concentrated mainly in three specific areas of the Province. • Spatially, Bloemfontein, Clarens and Bethlehem have the strongest geographical clusters of tourism SMMEs. • The main domestic market is Gauteng. • The recent business performance of tourism SMMEs is healthy.
With regards to emerging SMMEs, the PEAC findings were as follows:
• The labour absorption of these enterprises is poor. • Most enterprises were set up out of necessity rather than choice in a context in which job creation in the formal sector performed poorly. • Most of the enterprises are unregistered, home-based businesses in which there is a constant struggle to provide their owners and family helpers with a basis for improved living standards. • Nearly all enterprises function in narrow localised markets. • The groups of better-performing emergent SMMEs are those involved in production-based or construction-related activities. • Many of these enterprises are survivalist. • Access to finance and micro-credit seem to be major obstacles in both start-up and subsequent operations. • Other constraints are labour-related problems, access to premises, crime, poor infrastructure, and a lack of access to government support programmes. • There is no equal access to the mainstream economy for black-owned
Page 37 of 136 businesses (Premier’s Economic Advisory Council, 2004).
Conclusion and Summary
• The following three municipalities have 43.2% of the population, but they contribute to 68% of the GDP: Mangaung, Metsimaholo, and Matjhabeng. • Large urban areas have 40.5% of the population and contribute to 53.3% of the GDP. • The Provincial population growth rate of 0.6% between 1996 and 2001 is lower than the national population growth rate of just below 2% per annum. • The following main population trends are visible: a population decline in the former homeland areas, continued urbanisation from farming areas to urban areas, a decrease in the population of the commercial farming areas, evidence of secondary or circular migration, more profound urbanisation expected in the northern Free State, out-migration to Gauteng, a large-scale decline in the goldfields, and most migrants represent low-income individuals or households. • About 5% of the Province is rated as areas with high environmental sensitivity (ratings 4-7). • According to the narrow definition of unemployment, the Province has an unemployment rate of 26.5%. • Although between 1996 and 2004, the growth rate was 0.7%, the growth for 2003 was 3.3%. • The Province has 1.7 million (55.9%) people living in poverty.
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Chapter Three Provincial Social, Human and Governance Perspective
3.1. Education Perspective
3.1.1. Education
Level of education is one of the most important contributors to the HDI. Although a simple correlation between levels of education and development is not possible, education is still considered to be one of the main preconditions for development. Education and the improvement of skills are also important aspects of the NSDP principles. The NSDP suggests that skills development should be a priority in areas with limited economic development potential.
According to the Bill of Rights, everyone has the right to basic education, including ABET and further education. At almost 6% of GDP, South Africa has one of the highest rates of government investment in education in the world.
Area % no schooling % some primary % completed % some % Std 10/ % higher primary secondary Grade 12 1996 2001 1996 2001 1996 2001 1996 2001 1996 2001 1996 2001
South Africa 22.3 15.8 26.1 29.9 7.5 6.9 28.7 27.9 11.2 13.9 3.9 5.4 Free State 17.3 13.1 27.6 30.3 7.9 7.2 26.1 25.5 8.4 10.9 3.0 3.7 Xhariep 23.7 17.5 32.2 35.0 7.4 7.3 18.2 20.4 5.4 7.5 2.5 2.5 Motheo 14.2 10.2 25.5 28.8 7.8 7.1 27.1 26.1 11.4 13.6 4.2 5.4 Lejweleputswa 16.5 13.2 28.3 30.2 8.5 7.8 27.6 26.4 7.5 9.9 2.4 2.9 Thabo 20.6 15.7 27.9 31.2 7.5 6.7 24.3 24.1 6.7 9.4 2.4 3.0 Mofutsanyana Fezile Dabi 16.3 11.9 28.2 29.8 7.6 7.2 27.0 26.8 8.4 11.5 3.2 3.8 * It should be noted that those of five years and younger were not included in these percentages Table 3.1: Province Changing Educational Profile by District, 1996- 2001 Source: Statistics South Africa, 1998; 2003
In Table 3.1, a number of important trends are evident.
• Overall, there was a decline in the percentage of people with no schooling in South Africa, the Province and in each of the respective districts. However, the decline in the Province (4.2%) between 1996 and 2001 is lower than that for South Africa (6.5%) for the same period. These trends can be attributed to the normal demographic changes linked to access to schools, which have improved over the past ten years, as well as the possible impact of ABET. • The Province has a lower percentage of people with no schooling than the rest of country. However, in the case of people with a Grade 12 certificate and higher than Grade 12, South Africa has higher percentages. In 1996, the gap between the Province and South Africa for people with educational level higher than Grade 12 was 0.9%. In 2001, the gap was 1.7%.
The most people, 17.5%, with no schooling are found in Xhariep and Thabo Mofutsanyana (15.7%). In Xhariep, the 17.5% represents only about 13000 people. In Thabo Mofutsanyana, the real number is 71 000. Progress in lowering the number of people without schooling has been made in Xhariep between 1996 and 2001. The two districts with the highest number of people with qualifications higher than Grade 12 are Motheo (5.4%) and Fezile Dabi (3.8%).
Page 39 of 136 Four municipalities with the highest percentage of people with no schooling are Tokologo (25.7%), Nketoana (22.6%), Letsemeng (22.4%), and Tswelopele (20.7%). The number of people with education higher than Grade 12 is in Mangaung (6.2%), Metsimaholo (5.6%), and Moqhaka (4.1%).
The Grade 12 results have shown a rapid increase in the pass rate from 42.5% in 1997 to nearly 80% in 2004 The exemption rates also increased from 11.7% in 1999 to 21% in 2005 (Department of Education, 2005). However, the increase in the exemption rate is lower than that in the pass rate. At the same time, only 1407 candidates passed Mathematics (Higher Grade) and 2202 passed Physical Science (Higher Grade).
The pass rates and exemption rates for local municipalities reveal that, in 2005, the three municipalities with the highest pass rates were Mohokare (90.3%), Tswelopele (88.3%), and Phumelela (88%). In 2005, Tokologo, Nketoana, and Maluti-a-Phofung were the three municipalities with the lowest pass rates. In respect of the exemption rate, the highest percentages are found in Tswelopele (27.4%), Dihlabeng (27.3%), and Mangaung (27.2%).
Municipality Pass rate (1999) Pass rate (2005) Exemptions (1999) Exemptions (2005) Mafube 50.8 74.6 11.6 20.4 Metsimaholo 63.0 86.1 16.9 24.7 Moqhaka 55.7 79.7 11.1 21.4 Ngwathe 47.8 80.4 8.9 20.8 Masilonyana 49.7 85.3 13.4 22.9 Matjhabeng 48.1 80.8 13.1 19.5 Nala 36.8 74.2 12.1 22.9 Tokologo 47.6 66.8 7.5 12.4 Tswelopele 35.9 88.3 10.5 27.0 Mangaung 52.0 84.2 16.7 27.2 Mantsopa 53.4 80.1 15.3 25.1 Naledi 62.5 75.0 9.7 15.6 Dihlabeng 37.0 80.0 11.9 27.3 Maluti-a-Phofung 32.6 70.9 6.7 13.8 Nketoana 38.1 66.3 9.5 19.3 Phumelela 34.4 88.0 10.1 27.4 Setsoto 38.8 81.0 9.2 19.1 Kopanong 42.2 85.0 7.4 15.1 Letsemeng 58.9 80.4 15.4 14.5 Mohokare 47.4 90.3 16.9 21.4 Table 3.2: Grade 12 pass and exemption rates by school per municipality, 1999 and 2005 Source: Department of Education, 2006
What is worthy to be noted in these statistics is that some of the more rural municipalities have achieved significant results – maybe with the exception of Maluti-a-Phofung and Tokologo where pass and exemption rates remain low.
The number of learners has declined over the past six years. In 1998, there were 807 718 learners. This figure dropped to about 684 000 in 2004. Although there was a slight increase between 2003 and 2004, figures are expected to remain constant with a slight increase in the future. The numbers of ABET learners also declined from 36 000 in 2002 to over 3000 in 2004 (Department of Education, 2005).
Page 40 of 136
Research by the Free State Youth Commission (FSYC) indicated that 17.2% of the black youths mentioned that teenage pregnancy had caused them to not complete their secondary education. The research also revealed that about 46% of black youths older than 20 years have not completed their secondary school.
The Province has two universities and four FET colleges. It should be noted that both universities have doubled their student numbers since the late 1990s. Together, the two universities have approximately 35 000 students.
At the school level, the Province has 1760 primary and 392 secondary schools. The Thabo Mofutsanyana District has an oversupply of classrooms, while shortage of classrooms is visible in the Fezile Dabi, Motheo, and Lejweleputswa. In addition, 33 building structures were unsafe, 441 schools were without water, 117 schools were without sanitation, and 544 schools were without electricity. It should also be noted that 51% of the schools in the Province are farm schools with serious implications for access to education.
The school infrastructure and human resource allocation to schools in the Province is fairly equal and varies between a teacher: learner ratio of 1:26 and 1:31. The highest teacher: learner ratio of 1:31 occurs in Maluti-a-Phofung.
The Province’s per capita expenditure on primary and secondary education decreased by 0.8% from 2000/01 (R3 430) to 2001/2 (R3 402). This however, compare very favourably with the national average (R3 176) and also with most of the other Provinces. Only the Northern Cape (R3 664) and the Western Cape (R3 568) provincial governments recorded a higher per capita expenditure on education. Furthermore, R75.7 million was allocated to learner support materials during 2000/1. The Province increased this allowance by 181% from 1999/00 to 2000/01, compared to the national average of 134%.
During 2000, there were 149 ABET centres with an enrolment of over 25 000 learners and almost 2000 educators. In terms of learner enrolment at ABET centres, the Free State was ranked fifth among the Provinces and seventh in respect of the number of available public ABET centres.
According to the national ECD audit findings, the Province had 1 665 ECD centres catering for some 66 593 children. These centres were staffed by almost 4 000 practitioners, indicating a learner: educator ratio of 19:1. This ratio compared favourably with the national average.
3.1.2. Skills Development
The NSDP views skills development as an important area of investment in areas where economic potential is low, but need is extremely high. Similarly, the National Skills Development Strategy (NSDS) (2005-2010) links the availability of skilled people with economic growth and sets out five principles:
• Support economic growth for employment creation and poverty eradication. • Promote productive citizenship for all by aligning skills development with national strategies for growth and development. • Accelerate BBBEE and Employment Equity.
Page 41 of 136 • Support, monitor, and evaluate the delivery and quality assurance systems necessary for the implementation of the National Skills Development Strategy. • Promote a culture of excellence in skills development and lifelong learning (Department of Labour, 2005).
A report by the PEAC indicates that industrialists view a shortage of appropriate skills as a major stumbling block for industrial development in the Province (Premier’s Economic Advisory Council, 2004). Further evidence of the need for post-school skills development is evident from the fact that more than 40% of black youths have indicated in research by the FSYC that they have dropped out of school (Pelser, Botes, Magoera, More and Lenka, 2004).
This section explores the skills base of the population of 15 years and older (see Table 3.3). Unfortunately the data from the 1996 Census used different categories, which make it difficult to compare the figures for 1996 and 2001.
No schooling Completed at Grade Certificate/ Certificate/ At least Area least primary 12 diploma with diploma with one degree less than Grade Grade 12 12 South Africa 15.5 42.3 18.5 0.5 4.7 2.5 Free State 13.7 43.7 15.8 0.4 3.7 1.7 Xhariep 19.5 38.1 11.0 0.3 2.5 1.3 Motheo 9.9 43.7 19.1 0.5 4.7 2.8 Lejweleputswa 13.3 45.6 14.2 0.4 3.1 1.1 Thabo Mofutsanyana 18.4 42.4 14.2 0.4 3.3 1.1
Fezile Dabi 11.9 44.7 16.3 0.4 3.9 1.5 Table 3.3: Skills Base of the Population 15 years and older) in the Free State and South Africa, 2001 Source: Statistics South Africa, 2003
A number of comments should be made in respect of Table 3.3:
• Although the percentage of people with no schooling, 13.7%, in the Province is lower than in South Africa (15.5%), a number of people with a Grade 12 certificate or with post-Grade 12 qualifications are significantly higher. • Figures reveal that a major post-school training gap exits for those who do not go on to tertiary education (at a technical level). Although this is also evident in the country, it seems more pronounced in the Province. In South Africa, 5.3% of the population older than 15 years have some form of post-school certificate or diploma. The percentage for the same category in the Province is 4.1%. • Regarding the percentage of graduates, Motheo District (2.8%) is the only district that compares well with the national average (2.5%). All the other districts have percentages lower than the provincial average of 1.7%.
The three municipalities with the highest percentages of people of 15 years and older with at least one degree are Mangaung (3%), Metsimaholo (2%), and Dihlabeng (1.6%). The municipalities with the highest percentages of no schooling are Tokologo (27.1%), Nketoana (24.5%), and Letsemeng (22%).
3.1.3. Health
Access to health care services, including reproductive health, is a basic human right enshrined in the Constitution of South Africa. The White Paper for the Transformation of the Health System in South Africa was adopted in 1997 to give effect to the Constitution. The goals of this policy are:
Page 42 of 136 • To unify fragmented health services at all levels into a comprehensive and integrated National Health System. • To promote equity, accessibility, and the utilisation of health services. • To extend the availability and ensure the appropriateness of health services. • To develop health promoting activities. • To develop human resources available to the health sector. • To foster community participation across the health sector. • To improve health sector planning and to monitor health status and service (Department of Health, 1997).
Since the adoption of this policy, several legislations have been passed. This has been followed by a number of strategic plans to promote the effective implementation of the legislation. One of these plans is the Strategic Priorities for the National Health System, 2004-2009 to strengthen the health system.
The Province has a well-developed health infrastructure system comprised of the following:
Ambulance service (not vehicles) 58 AIDS information training centre 3 Blood banks 3 Community health centres 12 Fixed clinics 232 Private clinics 9 Academic hospitals 2 District hospitals 24 Military hospitals 1 Private hospitals 12 Regional hospitals 5 Specialised hospitals 4 Tuberculosis (TB) hospitals 1 Laboratories 9 Mobile clinics 109 Table 3.4: Provincial Overview of the Health Infrastructure, 2006 Source: Free State Provincial Department of Health, 2005
In 2004, the Province had about 2.4 doctors and 32.5 nurses per 10 000 of the population, compared to the national average of 2.9 and 32.4, respectively. This gives the Province the 3rd highest ratio of total medical personnel in the country. In total, there are 109 non-fixed clinics, 232 fixed-clinics, 12 community health centres, and 24 district hospitals in the Province.
During the 2000/01 financial year, R8.1 billion was allocated to the provincial health budget. The payment of scarce skills and rural allowances was implemented during the 2003/2004 financial year. Community service was also extended in 2002 to other categories of health professionals.
Health district Facility type No Population Indicators of service Rate utilisation Motheo Non-fixed clinics 22 755 521 Primary Health Care total 1 501 048 Fixed clinics 69 headcount Community health 4 Utilisation rate Primary 2.0 visits centres Health Care per capita
Page 43 of 136 Subtotal 95 Utilisation rate Primary 3.5 clinics and community Health Care under five health centres years District hospitals 4 Xhariep Non-fixed clinics 21 142 601 Primary Health Care total 339 457 headcount Fixed clinics 17 Community health 1 Utilisation rate Primary 2.4 visits centres Health Care per capita Subtotal 39 Utilisation rate Primary 3.4 clinics and community Health Care under five health centres years District hospitals 3 Thabo Non-fixed clinics 20 750 780 Primary Health Care total 1 841 392 Mofutsanyana Fixed clinics 69 headcount Community health 1 Utilisation rate Primary 2.5 visits centres Health Care per capita Subtotal 90 Utilisation rate Primary 4.5 clinics and community Health Care under five health centres years District hospitals 8 Lejweleputswa Non-fixed clinics 26 641 391 Primary Health Care total 1 281 005 Fixed clinics 44 headcount Community health 1 Utilisation rate Primary 2.0 visits centres Health Care per capita Subtotal 71 Utilisation rate Primary 2.9 clinics and community Health Care under five health centres years District hospitals 5 Fezile Dabi No- fixed clinics 20 465 958 Primary Health Care total 1 077 897 Fixed clinics 33 headcount Community health 5 Utilisation rate Primary 2.3 visits centres Health Care per capita Subtotal 58 Utilisation rate Primary 3.6 clinics and community Health Care under five health centres years District hospitals 4 Province Non-fixed clinics 107 2 756 251 Primary Health Care total 6 113 418 Fixed clinics 233 headcount Community health 13 Utilisation rate Primary 2.2 visits centres Health Care per capita Subtotal 358 Utilisation rate Primary 3.7 clinics and community Health Care under five health centres years District hospitals 24 Table 3.5: Provincial Health Infrastructure per District, 2005 Source: Department of Health Annual Report 2004/05
The number of visits to the primary health care facilities ranged from 339 457 to 1 841 392 per year in Xhariep and Thabo Mofutsanyana, respectively. The primary health care total headcount is approximately six million per year. The range for visits to public primary care facilities is between seven and nine per 1000 of the population per day. About 2 306 172 people (85.2% of the population) do not have medical insurance and depend entirely on the public health service.
Audits conducted by the national Department of Health assessed whether each clinic in the Province rendered a full package of Primary Health Care services. Some clinics are served by nurses only; others have doctors visiting at specified intervals. Other services render a full package of services.
Page 44 of 136 District health plans do not provide for each clinic to deliver the full package as identified in the national audit definitions. The district rural health strategy has been developed and implemented. Monitoring is being done on a quarterly basis. Of the population in the rural node, 85% live within five kilometres of a fixed clinic.
Emergency Management Service (EMS) is fully operational in all municipalities. There are 67 stations and satellite points. Average response times range from 45 to 60 minutes in urban areas and 60 to 90 minutes in rural areas. Planned Patient Transport for non-emergency cases has been implemented in all districts with dedicated staff. There are 800 personnel employed in various categories. In partnership with the Department of Local Government, an emergency services control room has been built in Bloemfontein for EMS and disaster management.
Profile of diseases in the Province reveals the following:
• The obstetrical maternal mortality rate was estimated at 199 per 100 000 live births in 1998 (Day and Gray, 2005). The latest information from the Department of Health shows that this indicator is estimated at 150 per 100 000 live births (Department of Health, 2006). • The Infant Mortality Rate (IMR) has increased from 53 per 100 000 live births in 1998 to 62 per 100 000 live births in 2002, thereby ranking the Province fourth in the country. The South African Demographic and Health Survey estimated it at 68.3 per 1000 births, while the latest estimate from the Department of Health is 59.7 per 1000 births (Department of Health, 2006). The Province IMR compares well with the national average (45.4), Swaziland (101) and Botswana (74). Child mortality 9 in the Province was 72 children per 100 000 live births in 1998. By 2003 it was estimated to be 76.7 per 1000 births. • In respect of TB, the Province is ranked sixth in the country, accounting for about 6.2% (i.e. 9 414) of reported cases in 2000. It is, however, of concern that more than 17 000 people who suffer from TB also suffer from HIV infection. This ranked the Province third in the country in 2001. This means that 56.6% of TB patients also contracted the HIV virus. This percentage grew from 51.7% in 2000. The TB Medium-Term Development Plan is being implemented. The Directly Observed Treatment Short Course (DOTS) was implemented in all services with a 96% patient coverage. Currently DOTS is being provided to 80 towns in the Province with a total of 1 436 volunteers and 6 679 DOTS beneficiaries. • It was estimated that 5.3 million people in 2003 were HIV infected in the country The HIV and AIDS prevalence rate among pregnant women in the Province was 1.5% in 1991. This increased to 30.1% in 2003, but dropped to 29.5 in 2004 (Department of Health, 2006). The infection rate is about 16.7% of the population. Table 3.6 provides a broad overview of the number of people infected with HIV and AIDS per age category.
Age group Number of HIV positive cases in Infected numbers as a the Free State percentage of the age group 0-14 12776 2.6 15-24 84772 17.4 Adults 390224 80.0 Total 487772 100.0 Table 3.6: Provincial HIV and AIDS Infection per Age Category, 2005
9 Infant mortality (usually defined as the number of children dying under the age of one year in relation to the number of live births) and child mortality (usually defined as the number of children between one year and five years dying in relation to the number of live births) are combined to consider the mortality rate of children younger than five years.
Page 45 of 136 Source: Redelinghuys and Pelser, 2005
The only data available at the district level is the HIV prevalence rate among pregnant women. However, considering the 2003 prevalence rate in each of the districts, a conclusion is drawn with regard to the expected percentage of the population infected by HIV and AIDS (Redelinghuys and Pelser, 2005). These figures are reflected below.
District 1999 2000 2001 2002 2003 Projected HIV infection % for the population Xhariep - - - - 25.7 12.3 Motheo 26.6 29.6 28.5 31.0 36.3 22.9 Lejweleputswa 31.9 30.1 41.1 29.8 33.3 19.9 Thabo Mofutsanyana 27.9 27.2 27.8 26.0 28.0 14.6 Fezile Dabi 27.6 21.1 29.4 28.1 23.8 10.4 Table 3.7: Provincial HIV Prevalence Rate for Pregnant Women, 1999-2003 Source: Redelinghuys and Pelser, 2005
It is evident from the above table that the three districts with the highest percentage of HIV and AIDS infections, Motheo, Lejweleputswa, and Thabo Mofutsanyana, are also the districts that, historically, have been labour-providing or labour-receiving areas (Redelinghuys and Pelser, 2005).
In keeping with the national priorities, mechanisms have been put in place to manage HIV and AIDS in the Province. The Prevention of Mother to Child Transmission of HIV (PMTCT) programme was launched in November 2001 at Katleho and Tokollo hospitals and their referring clinics.
Research sites were expanded during 2002 within the Katleho/Winburg and the Tokollo/Mafube District hospital complexes and one PMTCT site per remaining district was established. Nevirapine is available at all institutions providing maternity services. A training plan to address the integration of voluntary confidential counselling and treatment (VCCT), PMTCT, Maternal Health, and ARVs is being developed. The implementation of the Antiretroviral (ARV) programme commenced in Welkom on 15 June 2004.
There are 242 sites offering VCCT services in all of the five districts. With regard to the comprehensive management of HIV infection and AIDS, the Province has eight ARV sites. The total number of patients seen at these sites, between April and December 2004, was 6 060, and 5 506 of these were HIV positive, with 1 193 having a Cd4 count of less than 200 (Annual Report Department of Health 2004/2005). Twelve of the municipalities have special programmes in respect of HIV and AIDS in 2004.
Page 46 of 136 3.1.4. Housing
The South African low-income housing policy is one of the most progressive housing policies in the world. It is based on a capital subsidy which provides housing in an incremental manner. More than 1.6 million housing units have been financed since the inception of the capital subsidy scheme (Department of Housing, 2004).
The housing policy, Breaking New Ground, provides for various housing instruments, a few of which are project subsidies, consolidation subsidies, individual subsidies, institutional subsidies, People’s Housing Process (PHP), rural subsidies, relocation assistance, hostel redevelopment, and the discount benefit scheme. At the same time, Breaking New Ground can be viewed as the strategic direction within the existing policy framework (Department of Housing, 2004).
The emphasis in Breaking New Ground is on supporting the entire residential market; shifting from the emphasis on housing to an emphasis on sustainable settlements; adjusting the institutional arrangement with an emphasis on the accreditation of municipalities, institutions, and capacity building; ensuring that housing construction contributes to job creation; emphasising the fact of spatial integration with an emphasis on medium-density housing, better quality housing, and an emphasis on informal settlements. The current Social Housing policy also emphasises spatial integration and the renewal of Central Business Districts (CBDs) with an emphasis on residential renewal in CBDs.
The following challenges of housing delivery have been identified by the Department of Local Government and Housing:
• The non-existence of township registers. • The unavailability of suitable land and serviced stands. • The slow release of state land. • The lack of readiness and preparedness in respect of accreditation of municipalities. • The lack of capacity in administrative matters, project management, technical and financial matters, and housing structures within the Province. • The lack of proper policies, structures and the continuous updating thereof. • The lack of bridging finance and contract administration expertise. • The lack of detailed housing delivery plans at the municipal level. • The lack of alignment and coordination of infrastructure and housing development in municipalities. • The non-availability of deposit-taking structures. • Inadequate stakeholder management. • The lack of spatial integration between the former black and white towns. • The lack of research on alternative building methods and materials. • Unreliable information on the housing subsidy system (Department of Local Government and Housing, 2005).
Table 3.8 portrays the changing picture of the growth in informal housing units in the Province (see also Map 3.1).
Page 47 of 136
Type of housing Xhariep Motheo Lejweleputswa Thabo Fezile Free SA Mofutsanyana Dabi State Informal (backyard), 1996 (n) 1797 12399 18591 11810 6058 50655 Informal (backyard), 2001 (n) 1227 9423 15972 10268 7163 44053 459528 Informal (backyard) 1996 (%) 5.7 7.2 11.5 7.5 5.7 8.1 0 Informal (backyard) (2001) (%) 3.1 4.5 9.9 5.5 5.7 5.8 3.9 Percentage of the Free Sate, 2.8 21.4 36.3 23.3 16.3 100.0 2001 Informal 1996 3167 26247 39756 17078 25810 112058 Informal 2001 4917 38611 51870 29409 22299 147106 1376707 Informal 1996 (%) 10.1 15.3 24.6 10.9 24.5 17.9 0.0 Informal 2001 (%) 12.5 18.4 32.1 15.8 17.9 19.4 11.7 Percentage for the Free Sate, 3.3 26.2 35.3 20.0 15.2 100.0 2001 Table 3.8: Provincial Changing Trends in Informal Housing Units by District Municipality, 1996-2001 Source: Statistics South Africa, 1998; 2003
In respect of the above table, the following observations are made:
• Proportionally, the Province had more informal dwelling units (19.4%) than South Africa (11.7%) in 2001. Although this higher proportion of informal dwelling units is noteworthy, it is more a function of the fact that the Province has a much smaller proportion of people residing in traditional housing units. • The percentage of households residing in backyard informal dwellings declined from 8.1% to 5.8% between 1996 and 2001. The real numbers declined from 50655 in 1996 to 44053 in 2001. • In 1996, about 112 000 (17.9%) households resided in informal dwellings. By 2001, this number had increased to more than 147000 (19.4%). This increase should be attributed mainly to the fact that there was a marked increase in the number of households and that the average size of households decreased substantially between 1996 and 2001. • About 32.1% of households in Lejweleputswa were informal settlements. Fezile Dabi was the only district where substantial progress had been made in respect of addressing the informal settlements. Both the proportions that informal settlements constitute and the real numbers declined between 1996 and 2001. Xhariep seems to have been the district with the lowest proportion (12.5%) and real numbers (4 917) of informal settlement dwellings
Page 48 of 136 Number of Households in I Map 3.1: Key Social and Informal housing Infrastructure Indicators 2001
Metsimaholo Local Municipality
Moqhaka Local Municipality
Mafube Local Municipality Ngwathe Local Municipality
Nala Local Municipality Phumelela Local Municipality FREE STATE PROVINCIAL GOVERNMENT
Nketoana Local Municipality
Matjhabeng Local Municipality Tswelopele Local Municipality
Dihlabeng Local Municipality Maluti a Phofung Local Municipality Tokologo Local Municipality
Masilonyana Local Municipality Setsoto Local Municipality Legend Local Municipalities
High Number of Households Above average Mantsopa Local Municipality Mangaung Local Municipality in need of Sanitation Below average
Letsemeng Local Municipality Low Services Metsimaholo Local Municipality
Naledi Local Municipality Moqhaka Local Municipality
Mafube Local Municipality Ngwathe Local Municipality Kopanong Local Municipality
Nala Local Municipality Mohokare Local Municipality Phumelela Local Municipality
Nketoana Local Municipality
Matjhabeng Local Municipality Tswelopele Local Municipality
Dihlabeng Local Municipality Maluti a Phofung Local Municipality Tokologo Local Municipality
Masilonyana Local Municipality Setsoto Local Municipality
Mantsopa Local Municipality Number of Households with Mangaung Local Municipality
piped water on community stand: Letsemeng Local Municipality distance greater than 200m. from dwelling M etsi maho lo Local Munic ipality Naledi Local Municipality Moqhaka Local Municipality
Kopanong Local Municipality Mafube Local Municipality Ngwathe Local Municipality LOCALITY PLAN
Mohokare Local Municipality
Nala Local Municipality Phumelela Local Municipality
Nketoana Local Municipality Tswelopele Local Municipality
Matjhabeng Local Municipality
Dihlabeng Local Municipality Maluti a P hofu ng Local Munic ipa lity
Tokologo Local Municipality
Masilonyana Local Municipality Setsoto Local Municipality
Mangaung Local Municipality Mantsopa Local Municipality
Letsemeng Local Municipality
Naledi Loca l Munic ipalit y DEPARTMENT LOCAL GOVENMENT & HOUSING SPATIAL PLANNING DIRECTORATE SPATIAL INFORMATION SERVICES Kopanong Local Municipality
Mohokare Local Municipality
An evaluation of housing need by municipality indicates that the two municipalities with the largest real numbers were Matjhabeng (37 242) and Mangaung (35 798) in 2001. In fact, 49.7% of the informal housing units were found in these two municipalities. Considering that these two municipalities’ population share was only 38.9%, their housing need is significant.
Although many mineworkers moved away from Matjhabeng, a significant percentage has also moved out of hostels in search of stands and housing (Marais and Venter, 2006). Welkom has received a smaller number of subsidies given its share of the provincial population (Marais and Wessels, 2005). It has 44.4% of the backyard shacks. Other municipalities with fairly high percentages of informal dwellings are Nala, Setsoto, Maluti-a-Phofung, and Metsimaholo.
In respect of settlement types, in 2001, the highest percentage of people residing in informal dwellings was located in larger urban areas (24.1%). In fact, in 2001, 55.4% of the housing problems in the Province occurred in this settlement type. This should be viewed as significant, given that only 40.5% of the Province’s population were residing in this type of settlement.
In comparison, regional towns had about 13.5%, middle-order towns 22.0%, and small towns 22.5% of the informal dwelling units. Communal and commercial farming areas had the lowest percentages, 5.4% and 3.9%, respectively.
Page 49 of 136
3.1.5. Basic Infrastructure
Basic infrastructure thus provides positive health results, lays the foundation for the economy, provides a platform for businesses in the second economy, and, if managed effectively, could also minimise the impact on the environment. Good basic infrastructure is also more crucial in high density areas such as urban areas or in cases of high-density communal land.
The Strategic Framework for Water Services is a new strategic framework sets out seven goals for water and sanitation services:
• All people living in South Africa should have access to an appropriate, acceptable, safe, and affordable basic water-supply and sanitation service. • All people living in South Africa should be educated in healthy living practices and the wise use of water. • Water and sanitation services should be provided in an equitable, affordable, effective, efficient, sustainable, and gender-sensitive manner. • All water services authorities should be accountable to their citizens, have adequate capacity to make wise choices, and be able to regulate the provision of water services effectively. • All water service providers should be accountable, cost-effective, efficient, and viable, and they should implement appropriate employment and gender equity policies. • The prices of water and sanitation services should reflect the fact that they are both social and economic goods. • Water and sanitation services should be effectively regulated with a view to ensuring the ongoing achievements of these goals (Department of Water Affairs, 2003)
The government has also initiated a programme of Free Basic Services. The following challenges are outlined in respect of Free Basic Water:
• The provision of the infrastructure (facilities) necessary to provide access to water to all households. • The development of subsidy mechanisms that benefit those who most need it (including households in remote urban areas, especially those served by small systems and vulnerable groups such as female- or child-headed and HIV and AIDS households). • The equitable treatment of large households and multiple households sharing connection. • The collection of revenue for services rendered over and above an allocated free basic amount (Department of Water Affairs, 2003).
In respect of the provision of Free Basic Sanitation, the key challenges relate to infrastructure provision, health and hygiene promotion, and subsidising the operational and maintenance costs. In addition, attention needs to be given to choices of technology considering the type of settlements. The strategy provides for different levels of services at different localities (Department of Water Affairs, 2003).
In addition, the Eradication of the Bucket System is a key programme. The importance of adequate infrastructure provision is also seen in the fact that all but one municipality indicated the provision and maintenance of basic infrastructure as
Page 50 of 136 a key priority area.
Table 3.9 provides an overview of access to water by households in South Africa and the Province. It should be mentioned that the 1996 Census did not distinguish between communal water supply within 200m and communal taps farther than 200m away. This distinction will be made in Table 3.9.
Area Piped water inside Communal water supply (%) Other (%) dwelling or on stand (%)
1996 2001 1996 2001 1996 2001 South Africa 70.1 71.1 23.8 24.6 6.0 4.3 Free State 66.1 85.3 28.2 14.2 5.7 0.5 Xhariep 59.9 80.7 33.8 16.0 6.3 3.4 Motheo 72.2 85.1 24.2 14.8 3.7 0.1 Lejweleputswa 66.8 85.1 29.1 14.6 4.1 0.3 Thabo Mofutsanyana 60.4 80.8 30.6 18.5 9.0 0.6 Fezile Dabi 65.9 93.1 27.4 6.7 6.7 0.2 Table 3.9: Access to Water per Household in South Africa and Free State, 1996 - 2001 Sources: Statistics South Africa, 1998; 2003
Table 3.9 shows the following:
• Access to water increased steadily between 1996 and 2001 in the Province. The percentage of households with access to water on their stands increased from 66.1% to 85.3%. This increase is also higher than the increase for the country. Increases were also realised in the respective districts. • The two districts with the highest percentages of access to water by means of communal water supply were Thabo Mofutsanyana and Xhariep. However, it should be noted that the scale of households with communal access to water is small (approximately 5200).
The picture in respect of households with access to water 200m or farther away is portrayed in Figure 3.1 below.
M afube 718 M etsimaholo 2491 Ngwathe 1766 M oqhaka 2485 Phumelela 1358 M aP 13622 Nketoana 1305 Dihlabeng 2883 Setsoto 5806 Nala 2191 M atjhabeng 17885 Tswelopele 1760 Tokologo 650 M asilonyana 1807 M antsopa 1183 M angaung 23224 Naledi 800 M ohokare 789 Kopanong 1091 Letsemeng 897
0 5000 10000 15000 20000 25000 Figure 3.1: Number of Households per Municipality with Access to Water by Communal Tap farther than 200m away Sources: Statistics South Africa, 1998; 2003
The figure shows that Mangaung, Matjhabeng, Maluti-a-Phofung, and Setsoto have the largest numbers of households with access to water farther than 200m from their stand. In fact, more than 71% of the households accessing water in this category are located in these four municipalities.
The assessment of access to water at the settlement level in the Province confirms
Page 51 of 136 the above findings and is reflected in Figure 3.2 below.
60.0 50.1 50.0 40.5 40.0 30.0 16.1 16.1 20.0 13.1 14.8 9.8 11.5 9.8 9.6 5.9 10.0 2.7 0.0 Small towns order towns Middle- areas Regional Farms Communal Large urban Large Commercial
Piped water on community stand: distance greater than 200m. from dwelling % of Free State population Figure 3.2: Provincial Water Backlog per Settlement Type, 2001 Source: Statistics South Africa, 1998; 2003
Two important matters should be noted in the above figure.
• The need for better water supply exists in larger urban areas. These areas have 40% of the Province’s population, but 50.1% of the households with communal access to water farther than 200m away reside in these urban settlements. • There is poor access to water on commercial farms particularly in respect of farm workers. This is probably a reflection of the poor living conditions of farm workers. Although there is a process of migration off commercial farms to urban areas, the improvement of living conditions of farm workers is pressing.
With regards to sanitation, the Strategic Framework for Water Services sets out the minimum norms and standards which are the need to “provide a sanitation facility which is safe , reliable, private, protected from the weather and ventilated, keeps smells to the minimum, is easy to keep clean, minimises the risk of the spread of sanitation-related diseases by facilitating the appropriate control of disease- carrying flies and pests, and enables safe and appropriate treatment and/or removal of human waste and waste water in an environmentally sound manner” (Department of Water Affairs, 2003).
In respect of these norms and standards, a profile of sanitation access for the Province is provided in Table 3.10 below (see also Map 3.1).
Page 52 of 136 Area Flush / Chemical toilet Pit latrine with ventilation Pit latrine without Bucket None (VIP) ventilation 1996 2001 1996 2001 1996 2001 1996 2001 1996 2001 South Africa 4564605 6455158 2920953 655849 2625701 420374 464522 1118042 1569041 Free State 283205 366923 157143 45724 121960 128915 150525 55037 72107 Xhariep 16330 25887 3164 1561 2547 5906 2939 5888 6285 Motheo 82260 105671 43760 23913 23410 32294 36948 12411 20448 Lejweleputswa 87233 99421 16620 2091 21010 41254 55181 15881 18931 Thabo 40585 56550 75031 14394 61547 26721 35657 13949 18023 Mofutsanyana Fezile Dabi 56797 79394 18568 3765 13446 22740 19800 6908 8420 Percentages of the total
1996 2001 1996 2001 1996 2001 1996 2001 1996 2001 South Africa 50.6 54.8 32.4 5.6 22.3 4.7 3.9 12.4 13.3 Free State 45.4 48.5 25.2 6.0 16.1 20.6 19.9 8.8 9.5 Xhariep 52.2 66.0 10.1 4.0 6.5 18.9 7.5 18.8 16.0 Motheo 48.2 50.2 25.6 11.4 11.1 18.9 17.6 7.3 9.7 Lejweleputswa 54.2 50.6 10.3 1. 1 10.7 25.6 28.1 9.9 9.6 Thabo 26.0 30.4 48.0 7.7 33.1 17.1 19.2 8.9 9.7 Mofutsanyana Fezile Dabi 54.1 63.6 17.7 3.0 10.8 21.7 15.9 6.6 6.7 It should also be noted that the 1996 Census did not distinguish between a pit latrine with or without ventilation Table 3.10: Sanitation in South Africa and Free State, 1996 and 2001 Source: Statistics South Africa, 1998; 2003
The following comments need to be made in respect of the above table:
• Although there was a slight decrease (20.6% to 19.9%) of households with buckets in the Province, a marked increase occurred in the real numbers of households dependent on buckets (128 915 to 150 525). It is also significant that the percentage of households dependent on a bucket system in the Province (19.9%) is higher than the average for South Africa (3.9%). • Overall, the percentage of households with no sanitation increased from 8.8% in 1996 to 9.5% in 2001. In terms of real numbers, these households increased from 55 037 to 72 107 between 1996 and 2001. • There was an increase in the number of households with access to a flush or chemical toilet in the Province between 1996 and 2001. • The highest percentage of households with a bucket system was found in Lejweleputswa (28.1%). Overall, this district had more than 33% of the buckets in the Province. The district with the highest percentage of households with no access to sanitation was Xhariep. However, this high percentage only makes up 12% of the problem in the Province. Thabo Mofutsanyana (33.1%) was the district with the highest percentage of pit latrines. The figures also reveal that this district had more than 50% of the pit latrines without ventilation.
Figure 3.3 provides an overview of the number of households in the Province still accessing sanitation by means of the bucket system.
Page 53 of 136 Maf ube
Met simaholo
Ngwat he
Moqhaka
Phumelela
Malut i a Phof ung
Nket oana
Dihlabeng
Set sot o
Nala
Mat jhabeng
Tswelopele
Tokologo
Masilonyana
Mant sopa
Mangaung
Naledi
Mohokare
Kopanong
Let semeng
0 5000 10000 15000 20000 25000 30000 35000
Figure 3.3: Number of Households with Access to Sanitation by Means of the Bucket System, 2001 Source: Statistics South Africa, 1998; 2003
The above figure reveals the following:
• Focus on Mangaung, Matjhabeng, Nala, and Setsoto would address more than 50% of the problem. However, these figures should not be read in isolation from the figures on pit latrines as they are also part of the backlog. In this instance, 41% of households in Maluti-a-Phofung access sanitation facilities in this way. Maluti-a-Phofung is followed by Mangaung (17%) and Matjhabeng (10.7%). • If migration to Mangaung is large in scale and one then relates it to the existing levels of the backlog, this municipality should be considered a priority area. It should also be mentioned that the provision of water-borne sanitation in Maluti- a-Phofung will be difficult and expensive owing to the terrain.
Sanitation provision per settlement type is reflected in Figure 3.4 below. It should, however, be noted that providing sanitation is expensive than providing only water. A cost-benefit analysis of the provision of adequate sanitation facilities is also highly dependent on the scale of provision.
50 41 42 40 36 40 34 34 33 26 28 30 22 19 18 16 15 13 12 20 12 12 10 7 7 6 4 5 4 10 0 1 1 0 2 0 Small Large urban order towns towns Middle- towns areas Regional farms Communal Commercial
% of FS population % of households w ith pit latrines but no ventilation in the FS % of households w ith bucket in FS % of households w ithout sanitation in the FS % share of FS backlog
Figure 3.4: Provincial Profile of the Sanitation Backlog per Settlement Type, 2001 Source: Statistics South Africa, 1998; 2003
The following conclusions can be drawn from the table above:
• Large urban areas have a lower percentage of households with pit latrines without ventilation than one would expect from their share of the Province’s population. However, in terms of households with buckets and no sanitation (usually associated with informal settlement development), their percentages are more or less equal to their percentage of the Province’s population. As a
Page 54 of 136 result of the fact that this settlement type constitutes 40% of the Free State’s population, their plight should be given some prioritisation. • The backlog in regional towns is less than one would expect from their share of the Province’s population. • It is especially the bucket system that is problematic in middle-order towns. • Small towns are struggling due to the number of households with buckets and lack of sanitation. • As a percentage, the problem on commercial farms is probably the worst in the Province and is a reflection by the living conditions of farm workers. • Communal areas suffer as a result of unventilated pit latrines.
Energy provision shows access in three different categories, namely for cooking, heating, and lighting. For the purposes of the analysis in this section, the access to lighting will be considered. 10 Figure 3.5 provides an overview of the percentage of households with access to electricity for lighting.
84.1 90.0 80.8 76.3 74.9 73.3 71.9 80.0 70.2 68.3 70.0 62.5 63.6 58.2 57.5 60.0 52.9 50.0 40.7 1996 40.0 2001 30.0 20.0 10.0 0.0 Xhariep Motheo Motheo Thabo Free State Free Fezile Dabi Fezile South Africa South Mafutsanyana Lejweleputswa Figure 3.5: Percentage of Households with Access to Electricity for Lighting in South Africa and Free State, 1996 and 2001 Source : Statistics South Africa, 1998; 2003
A number of comments need to be made in respect of Figure 3.5 above.
• Extensive progress in the provision of electricity between 1996 and 2001 was made. In 1996, the Province’s percentage (57.5%) was lower than that of the country (58.2%). By 2001, the Province (74.9%) had overtaken the national percentage (70.2%). • Between 1996 and 2001, all districts had increased the percentage of households with access to electricity. The largest increases were in Fezile Dabi, Thabo Mofutsanyana, and Motheo. Thabo Mofutsanyana has the lowest levels of access (63.6%), followed by Lejweleputswa (71.9%).
Refuse removal is largely a local government responsibility. It is also an important aspect for businesses as they usually generate more waste. Adequate refuse removal has major environmental advantages in that it reduces pollution. It should also be noted that higher densities support a more cost effective delivery of this service. Figure 3.7 provides an overview of the percentage of households receiving refuse-removal services at least once a week.
10 The reasons are that, despite access to electricity, households in low-income areas tend to make use of alternative methods of fuel for cooking and heating. It is assumed that electricity access for lighting at least represents an adequate picture of access to electricity.
Page 55 of 136 76 80.0 69 69 70.0 65 64 61 60 60 62 55 58 60.0 52 50.0 41 37 40.0 1996 30.0 2001 20.0 10.0 0.0 Xhariep Motheo Thabo Free State Free Fezile Dabi Fezile South Africa South Mafutsanyana Lejweleputswa Figure 3.6: Percentage of Households with Refuse Removal in South Africa and Free State, 1996 and 2001 Source: Statistics South Africa, 1998; 2003
The figure above shows the following:
• Despite an increase nationally (from 52% to 55%), the Province has experienced a decline in the percentage of households with access to refuse removal services on a weekly basis (61% - 58%). This can be mainly be attributed to the availability (or lack thereof) of operational and maintenance funds. • At the district level, Xhariep, Thabo Mofutsanyana, and Fezile Dabi have managed to increase their respective percentages. However, Motheo and Lejweleputswa have seen serious decreases in the percentages of households with access to refuse removal on a weekly basis.
Figure 3.7 provides an overview of the number of households not receiving a weekly refuse-removal service.
M afube 4369 M etsimaholo 13113 Ngwathe 13605 M oqhaka 14379 Phumelela 4728 M aP 70856 Nketoana 5418 Dihlabeng 12424 Setsoto 16246 Nala 6732 M atjhabeng 29787 Tswelopele 8837 Tokologo 4829 M asilonyana 11652 M antsopa 5417 M angaung 75379 Naledi 3340 M ohokare 3718 Kopanong 5349 Letsemeng 4584
0 10000 20000 30000 40000 50000 60000 70000 80000
Figure 3.7: Number of Households without Refuse Removal per Municipality, 2001 Source: Statistics South Africa, 1998; 2003
• The three municipalities with the largest number of households without access to refuse removal are Mangaung, Maluti-a-Phofung, and Matjhabeng. However, the lack of this service at the local level is fairly high for all municipalities. • Large urban areas are struggling to provide this service efficiently. Concerning the urban population, larger urban areas contribute to 53% of the population, but they contribute to 58% of the households not receiving a regular service.
Page 56 of 136 The other category with a higher percentage of households without a refuse removal service than its share of the Province population is the small-town category.
Table 3.11 provides an overview of access to telephone by households in the country and Province. It should be noted that the categories of access to telephone differed in the 1996 and 2001 censuses. The 2001 Census data distinguishes between cellular and landline access. However, this was not the case in the 1996 Census, where these two aspects were seen as one.
Household: In this Household: At a Household: At a Household: At Household: At Household: No Other (%) dwelling/ cellular public telephone neighbour nearby another location another location access to a phone (%) nearby (%) (%) nearby (%) not nearby (%) telephone (%)
1996 2001 1996 2001 1996 2001 1996 2001 1996 2001 1996 2001 1996 2001 SA 28.7 41.9 36.0 39.0 5.5 6.6 5.4 3.2 5.9 3.4 18.4 6.0 0.1 0.0 Free State 23.0 35.2 46.3 43.9 4.5 6.7 7.8 4.1 6.7 2.6 11.6 7.5 0.2 0.0 Xhariep 22.1 29.4 32.3 33.1 9.6 16.6 13.7 5.4 3.8 2.8 18.3 12.7 0.2 0.0 Motheo 28.4 41.4 45.4 42.8 4.9 5.4 6.1 4.1 6.7 2.2 8.4 4.2 0.1 0.0 Lejweleputs 23.0 31.6 51.0 48.5 3.7 5.8 7.2 3.5 3.9 2.2 10.8 8.3 0.3 0.0 wa Thabo 14.3 30.8 48.6 43.3 4.0 7.5 8.5 5.0 11.3 3.9 13.3 9.6 0.1 0.0 Mofutsanya na Northern 27.3 39.1 41.2 42.9 4.1 5.8 8.7 3.2 5.2 2.2 13.3 6.8 0.1 0.0 Free State Table 3.11: Household Access to Telephone for South Africa and the Free State, 1996 and 2001 Sources: Statistics South Africa, 1998; 2003
From the above table, the following observations can be made:
• Access to telephones had increased rapidly over the five-year period. In 1996, only 23% of the Province’s households had access to a telephone connection (either landline or mobile). This percentage increased to 35.2% in 2001. However, it should be noted that, this percentage was significantly lower than the national average (41.9%). • In 1996, the gap between the Free State and South Africa was 5.7%. By 2001, this had increased to 6.7%. This could be associated with the fact that the largest increase had probably taken place in respect of access to cellular phones. • Furthermore, it should be noted that access to phones for households at another location nearby or households with no access to telephones decreased considerably in the Province between 1996 and 2001 (from 19.3% to 10.1%). At the district level, the Motheo District (41.4%) had the highest percentage of households with access to telephones in the house.
The Province has made extensive progress with regards to the provision of free basic services. The following has been achieved in terms of Free Basic Water and Water Services:
• 92% of poor households are served with Free Basic Water. • 79% of the population with infrastructure are served with Free Basic Water. • 96% of the total population have access to Free Basic Water. • 17 of the 20 municipalities are providing Free Basic Electricity and have entered into an agreement with Eskom. • The three other municipalities have made their own arrangements.
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3.1.6. Transport Infrastructure
Transport and the mobility of people and goods are fundamental to economic development. Growth is not possible and poverty reduction cannot be sustained without physical access to resources and markets. Transport infrastructure in the Province is generally well serviced. Four of the country’s national highways (i.e. the N1, N2, N3, and N5) make provision for strong spatial links with the rest of South Africa. The Province has an adequate rail system.
The Province’s road network comprises about 1 615km of national roads, 6 316km of surfaced roads, 21 486km of gravel secondary roads and 22 000km of gravel tertiary roads. A high percentage of roads (60%) are in a poor. Tertiary roads are partially maintained. Only 4% of paved roads are in a very good condition, while 9% are in a good condition, 27% are in a fair condition, 40% are in a poor condition and 20% in a very poor condition.
The Bloemfontein Airport handles about 17 700 air traffic movements a year, which include international, domestic, and non-scheduled flights. This equates to about 211 700 passengers per year. The airport also handles about 221 000 tons of cargo a year, primarily consisting of courier items and spare parts for machinery. The airport buildings are in a good condition, but need some upgrading and modernisation. Most of the other towns have their own airfields, either owned by the local municipalities or by ACSA.
The table below provides an overview the quality of the road in the Province.
Very Good Good Fair Poor Very Poor Total km Surfaced roads 4% 11% 28% 40% 17% 6.411km Gravel roads - 18% 25% 22% 37% 22.100km Unsurfaced dirt roads - - 20% 50% 30% 26.000km Road furniture (safety - 29% 36% 4% 31% - measure) Bridges - - - 21% 10% - Table 3.12: Quality Status of the Provincial Road Infrastructure Source: Free State Province, 2005
The picture portrayed above reveals the following:
• In 1991, only 25% of the Province’s road network was considered to be poor or very poor, compared to 60% in 2004. However, some improvements have taken place since 2001 when 66% of the roads were classified as poor or very poor • Currently, 82% of the road network has not been sealed during the last twelve- year cycle. The situation with gravel roads also seems to be problematic as only 25% of these roads have the acceptable norm of 50mm of gravel thickness. This state of the Province’s road network has resulted in an increase in road accidents and an increase in the number of claims against the road authorities (Free State Province Infrastructure Summit, 2005).
Approximately 76% of households in the Province re completely dependent on public transport. However, the existing system does not always help them to access an adequate service. Figure 3.9 provides an evaluation of the transport problems experienced in districts.
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70 60 50 40 30 20 10 0 Xhariep Motheo Thabo Free State Free Fezile Dabi Fezile Mafutsanyane Lejweleputswa
No Service Too expensive Safety Figure 3.9: The Main Transport Problems Experienced, 2005 Source: Free State Province Infrastructure Summit, 2005.
Figure 3.9 above shows that:
• The availability of the service appears to be the highest in Xhariep. In addition to this reality, but not portrayed in the statistics above, it should be mentioned that it is especially farm workers who are hampered by the lack of a transport service – especially in their search to access specific services.
According to Moving South Africa, the Province is servicing three main transport routes.
• It is on the main route and contributing to freight between and to Gauteng and the Western Cape. Freight transport on this route is expected to have grown by 40% by 2020, with 85% of the transport taking place by road and the remaining 15% by rail. Approximately 90% of the freight will be for domestic purposes, while 10% will be for exports. The dominant commodities on this corridor are processed foods, coal, chemicals, beverages, and fruit produce. • The second route is a sub-corridor from the Gauteng/Western Cape nexus to Port Elizabeth. Although in size this is about 15% of the volumes expected on the Gauteng/Western Cape Route it is still expected to have grown by 39% by 2020. Furthermore, 92% of the freight will be moved by road and 8% by rail. Overall, 90% will be destined for the local market and 10% for exports. The main commodities on this link are processed meats, maize, chemicals, iron, steel and ferro-alloys, railway equipment, and motor vehicles. • The last link is the sub-corridor from the main Gauteng/Western Cape route to East London. This corridor is expected to grow by 31% by 2020; 9% will be for export purposes and 91% will be transport via the road. The main products are processed foods, maize, chemicals, and wood and wood.
The current state of public transport facilities is of concern. There are approximately 126 minibus taxi ranks and termini in the Province of which only 58 are formal ranks with at least some facilities. The remaining 70 ranks have no facilities whatsoever. Of these ranks, 85 are situated off-street. A total of eight bus ranks or termini are located in the Province of which two are informal. In general, most people have to make use of a transport system with few or no facilities to ensure their comfort and safety.
3.1.7. Sport, Recreation and Culture
The national policy priorities of the Department of Arts and Culture are to:
• Use sport and recreation as a vehicle for nation building and economic development in order to achieve national pride.
Page 59 of 136 • Promote full diversity of arts, culture, and heritage services in the Province. • Ensure the constitutional rights of the people by encouraging the use and further development of the languages used in the Province. • Contribute to people development and enhance quality of life. • Promote science and technology in the Province through empowering people with information technology skills. • Support job creation through infrastructure development. • Create a sound administrative and financial infrastructure to support the Department’s functions and objectives.
An overview of libraries, museums, arts and culture, and sports centres is provided in Table 3.13 below.
Districts Libraries Museums Arts and Sports Other Total Culture centres centres Xhariep 18 3 3 3 27 Motheo 13 3 1 2 19 Lejweleputswa 27 3 1 1 1 33 Thabo Mofutsanyana 24 1 25 Fezile Dabi 20 3 1 24 Total 102 12 6 2 6 128 Table 3.13: Provincial Arts and Culture Facilities Source : Department of Sport, Arts, Culture, Science and Technology, 2006
• Libraries constitute 80% of arts and culture facilities in the Province. Museums comprise 9%, arts and culture centres 5%, and sports centres 2% of arts and culture facilities. Motheo district has the least facilities at 14%, followed by Fezile Dabi at 18%; Lejweleputswa has the highest at 26%. • Between 15% and 20% of the population make use of library facilities. The service has 269 344 registered members, while approximately 300 000 people use the facilities without registering as members. Libraries are visited by about 3 million people per year. • There are only two sports centres in the whole Province: one in Motheo and the other in Lejweleputswa. Thabo Mofutsanyana has no museum, while every other district in the Province has three. • The Mangaung Cultural Festival (MACUFE) is currently one of the biggest cultural events in the Province. It attracts large numbers of people from other Provinces. An array of other arts festivals also takes place in various towns.
3.1.8. Social Services
With the development of a new social development paradigm after 1994, the emphasis has shifted from welfare to social development. This paradigm puts emphasis on the development of human capacity and self-reliance within a caring and enabling socio-economic environment.
This is about serving and building a self-reliant nation in partnership with all stakeholders through an integrated social welfare system, which maximises its existing potential and which is equitable, sustainable, accessible, people centred, and developmental. The national goals of the strategy are:
• to facilitate the provision of appropriate developmental, social welfare services to all South Africans, especially those living in poverty, those who are
Page 60 of 136 vulnerable, and those who have special needs; these services should include rehabilitative, preventive, developmental, and protective services and facilities, as well as social security, including social relief programmes, social care programmes, and the enhancement of social functioning. • To promote and strengthen the partnership between government, the community, and organisations in civil society and the private sector that are involved in the delivery of social services. • To promote social development intra-sectorally, both within the welfare departments and in collaboration with other government departments and non- governmental stakeholders. • To give effect to those international conventions that have been ratified by government and are pertinent to developmental social welfare. • To realise the relevant objectives of the Constitution and the RDP (Department of Social Development, 1997).
Focus include specific programmes focusing on families, children, the youth, the elderly, women, and people suffering from physical and mental disabilities, substance abuse, chronic diseases, and HIV and AIDS, as well as offenders and victims of crime.
Although it is possible to measure poverty by means of various indicators and mechanisms, the census data provides information on household income. The inflation rate of 5.58% between 1996 and 2001 was taken into consideration and an income of R630 per month in 1996 was estimated to equal R800 per month in 2001. The poverty indicator of the United Nations stands at $1 per day, an amount of R800 per month, and a household size of approximately four for these poorer households. In the light of this indicator, R800 per month was viewed as an appropriate benchmark.
Income poverty in the country and Province is portrayed in the table below.
Area % of Number of % of Number of % of Free Percentage households households households households State of Free earning less earning less earning earning households State than R800 than R800 p/m less than less than earning population p/m (1996) – (1996) – 2001 R800 p/m R800 pm less than (2001) 2001 prices prices (2001) (2001) R800 p/m (2001) South Africa 37.4 3770723 49.4 5810058 - - Free State 45.8 286731 57.1 432579 - - Xhariep District Municipality 56.1 17578 64.7 25367 5.9 5 Motheo District Municipality 38.1 65178 51.5 108446 25.1 26.9 Lejweleputswa District 44.1 71156 56.2 110468 25.5 24.3 Municipality Thabo Mofutsanyana District 55.7 87364 65.5 121859 28.2 26.8 Municipality Fezile Dabi District 43.1 45455 53.2 66439 15.4 17 Municipality Table 3.14: Household Income below R800 per Month in South Africa and Free State, 1996 and 2001 Source: Statistics South Africa, 2003
Concerning the above table, a number of comments should be made in respect of the spatial distribution of poverty:
• The poverty levels in the Province (57.1%) are markedly higher than in South Africa as a whole (49.4%). If the income poverty levels in the Province are compared to those of the other Provinces, the Free State has the third highest
Page 61 of 136 level of poverty. It is only the Eastern Cape (64%) and Limpopo (67%) Provinces that have higher percentages of households earning less than R800 per month. • According to these statistics, the percentage of households earning less than R800 per month grew by 11.3% in the Province between 1996 and 2001. In terms of real numbers, the households with an income of below R800 per month have increased by approximately 145 000 households. • Thabo Mofutsanyana (65.5%) has the highest percentage of households earning less than R800 per month in 2001. It is also significant that 28.2% of the households in the district have an income of below R800 per month. • Although Xhariep is the district with the second highest percentage of households below the R800 income level, only 5.9% of households with an income of below R800 per month resided in this district (2001 figures). • Approximately 79% of all households with an income of below R800 per month resided in Thabo Mofutsanyana, Lejweleputswa, and Motheo. • In Motheo, percentage of households earning less than R800 per month increased from 38.1% in 1996 to 51.5% in 2001. The other district in which a marked increase was recorded is the Lejweleputswa District (12.1%).
The three municipalities with the largest percentages of households earning less than R800 per month are Setsoto (71.3%), Mohokare (71.1%), and Tswelopele (69.1%). However, only 55% of the households earning less than R800 per month reside in these households. Comparatively, Mangaung, Matjhabeng, and Maluti-a-Phofung have, between them, just over 50% of the households in the Province earning less than R800 per month.
With regards to social security, in the 2001/02 budget, about R1.4 billion, which comprised 16.9% of the provincial budget, was allocated to social development. This amount has been increasing steadily from R1.2 billion during 1999/00 (17.4%).
The Province is, however, still underperforming in terms of social development spending when compared with the South African average of about 18.9%. Only Gauteng allocates a smaller percentage (14.3%) of its budget to social development spending (R2.9 billion in 2001/2).
The proportion of people living in poverty is 53.2%. At present there are 592 443 beneficiaries in the Province. The expenditure on social security amounts to R251 577 827 every month and makes up 89% of the total welfare budget. The Child Support Grant is R170 per child per month and there are now 316 392 beneficiaries. According to the Strategic Plan (2005/6) of the provincial Department of Social Development, other grants include:
• Care Dependency Grant 3 134 • Disability Grant 106 931 • Foster Care 22 410 • Old-Age Grant 124 514
About 6.8% of the Province’s population are disabled compared. Although the categories of measurement differ between the censuses of 1996 and 2001, a number of important statistics should be considered. First, about 2.2% of the population or 32.3% of the disabled people are visually disabled. This category is followed by physical disability, which is estimated at 1.3% of the population.
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Almost 1% of the population in the Province are disabled due hearing challenges, while 0.9% suffers from multiple disabilities. Those with emotional and intellectual disabilities are about 0.7% and 0.5%, respectively. People with communication- related disabilities are estimated at 0.2% of the population in the Province.
As already noted in the section on the demographic trends, 30.7% of the population in the Province are considered to be children. In addition, youths represent 36.9% of the population and the aged 6.8%.
A number of crucial areas of concern regarding the youth have been identified by the Free State Youth Commission (Pelser, Botes, Magoera, More and Lenka, 2004). Although most of the unemployed youth are still hopeful that they will find a job, however, for a large proportion, their chances of finding employment are seriously compromised by a lack of both basic employment skills and adequate qualifications. This is of particular concern amongst black youths older than 20 years where almost one out of every two did not complete their secondary school training.
Teenage pregnancy is one of the main reasons why young black girls do not complete their school education. The burden of early motherhood aggravates their socio-economic position and further hinders their opportunities to improve their quality of life. Addressing this problem would call for an integrated strategy which links a well-targeted reproductive health information campaign with poverty-relief programmes, mainly in deprived communities.
As noted, about 16.7% of the Province’s population is HIV and AIDS positive (Redelinghuys and Pelser, 2005). This is about 2.5% more than the estimates on national level. The Department of Social Development estimates that there are 50 000 orphans while substance abuse also seems to be a major problem.
According to FSYC, most black respondents (61.8%) between the ages of 14 and 19 years have already had sexual intercourse, in contrast to the almost 91% of white youths in the same age group who have not had sexual intercourse (Pelser, Botes, Magoera, More and Lenka, 2004). Furthermore, 37% of all black youths – and young black men in particular – have had two or more than two sexual partners during the preceding twelve months.
Aggravating the situation is the fact that almost one out of every three young blacks who are unmarried or who have had multiple sexual partners over the past year, do engage in unsafe sex (not using a condom). Some 6% of black youths had their first sexual experience before the age of twelve – a finding which in all likelihood points to the problem of coerced sexual intercourse.
Concerning crime programmes, approximately two-thirds of the youth are of the opinion that the levels of crime in their neighbourhoods have increased over the past two years. Greater community involvement in the battle against crime has been pointed out as one of the foremost strategies. It would thus seem that an opportunity exists to involve the youth in the battle against crime.
3.1.9. Safety and Security
Crime is one of the obstacles to development. Not only does it impact negatively
Page 63 of 136 on the lives of the most vulnerable, but it also has a negative impact on business. The White paper on Safety and Security focuses on monitoring and crime prevention. It emphasises the implementation and coordination function of the provincial and local government in carrying out crime prevention, with the provincial government coordinating and assisting the local authorities. The National Crime Prevention Strategy (NCPS) of 1996 stipulates roles of Provinces.
Also imperative in the existing policy is civilian overview of the South African Police Services (SAPS), and the principle of democratic policing. However, throughout, the emphasis is on reducing the rate of crime by focusing on the prevention side. At the same time, it requires a focus on the situation of the most vulnerable groups – women and children. Secondly, it establishes effective partnerships to deal with the social and physical causes of crime. The broad priority areas in terms of safety and security are to:
• Monitor and evaluate the performance of the SAPS in the Province in order to ensure continuous improvements in their performance on crime prevention, to ensure law enforcement, and to ensure quality service delivery. • Coordinate and integrate government-led social crime prevention activities and support community initiatives. • Coordinate the criminal justice system to ensure sustained integration.
The Province has 108 operational Community Policing For a (CPFs) out of 108 police stations. The focus from 1993 to 1995 was on oversight of the police, which was characterised by explicit monitoring and evaluation of functions by the CPFs. From 1995 to 1997 the emphasis was on building the relationship between the police and the community. The focus was on liaison and communication functions. In 1997 there was a shift to emphasising the establishment of a problem-solving partnership approach to improve the police service and reduce crime.
The Province has 5744 police officials, 1078 detectives, and 1512 civilians in the SAPS. In 2005 there was one police officer to every 361 citizens compared with the national average of one police officer to 395 citizens. This is the third lowest ratio after the Northern and Western Cape.
The incidence of serious crimes in the Province has declined since 1994 (see Table 3.15). The most significant decline in crime incidence was in terms of murder, robbery, and stock theft. This is significant in view of the fact that only 9% of South Africa’s police officers are deployed throughout the Province. However, escapes from police custody increased by more than 20% between 1999 and 2000. This is substantially more than the national average of 7.6%.
Crime 1994 1999 2000 Change Murder 1 335 1 101 942 -29.4% Rape and attempted rape 3 553 3 472 3 521 -0.9% Robbery with aggravating circumstances. 2 968 2 169 2 081 -29.9% Stock theft 6 819 6 147 5 924 -13.1% Carjacking 173 184 152 -12.1% Table 3.15: Provincial Incidence of Major Crimes, 1994-2000 Source: SAPS, 2006
Page 64 of 136 A further investigation into the crime situation per category of crime is portrayed in Figure 3.10 below.
M urder 0.6
Rape 2.5 Attempted murder 0.8 Assault with intent to inflict grievous bodily harm 11.2 Common assault 15.6
Robbery with aggravating circumstances 2.8 Common robbery 3.0 Indecent assault 0.4 Kidnapping 0.0
Abduction 0.2 Neglect and ill treatment of children 0.3 Culpable homicide 0.5 Public violence 0.0
Carjacking 0.1 Truck hijacking 0.1 Bank robbery 0.1 Robbery cash in transit 0.1
House robbery 0.1 Business robbery 0.0 Arson 0.3 M alicious damage to property 6.6
Crimen injuria 4.7 Burglary at residential premises 11.1 Burglary at business premises 2.5 Theft of motor vehicle or motor cycle 2.0
Theft out or from vehicle 4.6 Stock theft 2.9 Illegal possession of firearm and ammunition 0.3 Drug-related crimes 2.5
Driving under the influence of alcohol or drugs 0.7 All theft not mentioned elsewhere 19.8 Commercial crime 1.6 Shoplifting 2.0
0.0 5.0 10.0 15.0 20.0 25.0
Figure 3.10: Provincial Percentage of Crime per Category, 2004 Source: SAPS, 2006
• Overall, 158 000 cases of crime were reported. Theft is the main category of crime with nearly 20% of the crimes falling into this category. This is followed by common assault (15.6%) and burglary at residential premises (11.1%).
• The following crime areas show very low readings: o Public violence. o Carjacking (Subcategory of Robbery Aggravating). o Truck hijacking (Subcategory of Robbery Aggravating). o Bank robbery (Subcategory of Robbery Aggravating). o Robbery of cash in transit (Subcategory of Robbery Aggravating). o House robbery (Subcategory of Robbery Aggravating). o Business robbery (Subcategory of Robbery Aggravating)
An evaluation of SAPS services in 2003, showed general positive results. Issues around accessibility, cleanliness, helpfulness, facilities for private statement-taking, fair treatment, and the handling of community complaints were evaluated positively (Department of Public Safety and Security and Liaison, 2003). The relationship between the SAPS and the communities was
Page 65 of 136 rated average-to-good. However, CPF structures were perceived to be weak.
The Province is ranked fourth in terms of its number of prisoners (8.4%). In 2001, it had a prison population of 14 364 of which 10 911 had already been sentenced. Gauteng accounted for 26.4% of South Africa’s prison population, while Limpopo contributed only 3.1%. The Free State had approximately 1800 youth offenders of which more or less 50% had been sentenced.
3.1.10. Governance
Good governance is a fundamental cornerstone of economic development and service delivery. Not only should it provide confidence to the business sector, but it also has a crucial role to play in respect of service delivery.
Provincial governance, especially in terms of cooperative government, and intergovernmental relations are also crucial for the development of the Province. A broad range of issues should be mentioned in this regard.
• The alignment of IDPs with strategic plans remains a major challenge. Added to this is ensuring effective communication between the various spheres of government. However, the Province established the IDP Alignment and Assessment Committee to assess the status of alignment of each municipality’s IDP with the FSGDS. All provincial departments, national departments and agencies based in the province and parastatals (e.g. Public Service Commission, Telkom and Eskom) are currently serving on this committee. • Access to services is being improved by Multi-Purpose Community Centres (one per district by the end of 2004 and expanding to each municipality in the next decade), the introduction of Community Development Workers, and the e-Government batho pele (people first) Gateway. • Government has increased the strategic planning nature of local government. Policy and implementation are more integrated as a result of the cluster approach, provincial coordination, IDPs in local government, and the recently introduced National Planning Framework (NPF). • A Code of Conduct for the Public Service is now part of the regulations for every public servant. The 1999 National Anti-Corruption Summit created a platform for the National Campaign Against Corruption and helped establish whistle-blowing mechanisms, special corruption courts, and the National Anti- Corruption Forum. New laws to fight corruption include the Promotion of Access to Information Act (Act Two of 2000) and the recent Prevention of Corruption Bill. The National Directorate of Public Prosecutions and SAPS have acted against corrupt officials and white-collar crime. About 80% of the cases of corruption in government reported are discovered by government. • An effective resource development and management plan should include the required equity plans, retention strategies, employee assistance programmes, and financial support for further skills development.
Governance structures in the Province is divided into the provincial government, local government – which includes district municipalities (five) and local municipalities (20) – and traditional authorities (in Thaba Nchu and the communal areas of Maluti-a-Phofung)
At the local municipal level, a series of challenges exist. A summary of a self- assessment is provided in Table 3.16 below.
Page 66 of 136 Issue Number % Service delivery problems 10 9.9 Human resource problems 16 15.8 Major financial problems 27 26.7 Financial administrative problems 11 10.9 Legal action taken against council 4 4.0 Problems of fraud 2 2.0 Payment rates and credit control and system problems 24 23.8 Other 7 6.9 Total number of issues 101 100.0 Table 3.16: Challenges for Local and District Municipalities, 2005 Source: Department of Local Government and Housing, 2005
Local and district municipalities face the most serious challenges in respect of governance. The financial viability and sustainability of municipalities and implementation of a legislative and policy framework is a challenge. The delivery of basic services is dependent on the distribution of the equitable share. About R852 million is transferred as equitable share allocations. Municipal cash flow is also a serious concern in many municipalities. In September 2005, 14 of the 20 local municipalities had negative cash flows.
Provision of support and to facilitate the implementation of a legislative and policy framework for local government is another challenge. This challenge includes the following aspects:
• Monitor and support municipalities in implementing systems of local government. • Facilitate the effective implementation of Project Consolidate. • Facilitate the effective implementation and monitoring of Free Basic Services in local municipalities. • Coordinate the Integrated Sustainable Rural Development Programme (ISRDP) effectively. • Promote and strengthen access to government services. • Support municipalities in the implementation of ward committee systems. • Strengthen cooperative government.
Local Government is seen as a focal point for accelerated growth and development. This sphere of government has over the past five years undergone profound policy changes and encountered vast service delivery challenges. In order to address some of these challenges, various initiatives such as Project Consolidate have been introduced at national level as an effort to empower municipalities to discharge their responsibilities in an efficient and effective manner. Also of importance was the launch of the 5-Year Strategic Agenda of Local Government for the next term of Local Government (2006-2011), which emphasised municipal support by the provincial sector departments and other government social partners. The 5-Year Strategic Agenda for Local Government encapsulates the government’s commitment to deepen and accelerate service delivery within the context of developmental local government.
At the centre of the support by sector departments at provincial level is the notion of implementing the 5-Year Strategic Agenda within the framework of the Free State Growth and Development Strategy. The key focus areas of the 5-Year Strategic Agenda for Local Government are • municipal transformation and organisational development • basic service delivery
Page 67 of 136 • local economic development • municipal financial viability • management and good governance
3.2. Conclusion and Summary
• The functional literacy rate in the Province is 65%. • Although there has been very good progress in respect of the Grade 12 pass rate, the University Exemption rate and the number of learners passing with Mathematics, Science, and Information Technology is low. • The repositioning of the FET sector could play a role in addressing the problem of school drop-outs. • The maternal death rate is estimated at 150 per 100 000 live births. • The child mortality rate is estimated at 76.7 per 1000 live births. • The HIV and AIDS prevalence rate is estimated at 16.7%. • Nearly 50% of the housing backlog in the Province is found in Mangaung and Matjhabeng. • By 2001, 85.3% of households had water on the stand or in the house, 54.5% had acceptable sanitation, 74.9% had access to electricity, 58% had their refuse removed once a week, and 35% had a telephone in their dwelling. • The Province’s road network comprises about 1 615km of national roads, 6 316km of surfaced roads, 21 486km of gravel secondary roads, and 22 000km of gravel tertiary roads. • Concerning poverty, 57.1% of households (432579 households) are earning less than R800 per month and thus live in poverty. • About 158 000 criminal cases are reported in the Province annually.
Page 68 of 136
Chapter Four Provincial Growth Potential, Capacity and Constraints
4.1. Key Provincial Priorities
Based on the National Spatial Development Perspective (NSDP) principles, this chapter identifies areas of economic potential and areas of need. The identification of these areas is also in line with the Free State Spatial Development Framework approach. In addition, a brief assessment of the potential of the available resources and development needs in the Province. Finally, categorisation of the various municipalities and settlements in terms of potential and need is made.
4.2. NSDP Principles of Need and Potential
According to the NSDP, national government departments, provincial government and municipalities should use categories of development potential (see Table 4.1) to identify the comparative advantage of localities in terms of infrastructure and development investment and spending.
Therefore the bulk of fixed investment by government should be on those areas with the potential for sustainable economic development. In areas of limited potential, government should concentrate (beyond the level of basic services) on social investment such as skills development and labour market intelligence to enable people in such areas to gravitate towards areas of greater potential.
The NSDP is therefore a key planning instrument to guide not only national government departments, but also provincial and local government in the spatial prioritisation of their planning. It is an integrating instrument of strategic significance. The NSDP framework suggests that without targeted investment aimed at harnessing the strengths of the spatial economy, the desired high growth rate required to reduce poverty in South Africa will not be reached.
It is further important to focus on the idea of “potential”: potential in the context does not refer to an unrealised potential still waiting to be discovered, explored or exploited. It refers to a demonstrated potential, backed up by existing developmental data (The Presidency, 2003). Table 4.1 provides the six categories of development potential listed in the NSDP. These categories are analysed to determine their rationale and indicators that could possibly be utilised to measure such potential.
Page 69 of 136
Category (as in Description as in NSDP What to measure? Available relevant indicators NSDP) 1 Innovation and Research and Existing capacities • Graduates with degrees in physical Experimentation Development (R&D) and in R&D. science, mathematics and application of technology engineering as percentage of the to production processes population • Percentage of population with an honours or higher degree 2 Production: High All production focusing on GVA in sub- • GVA: fuel, rubber and plastics Value local and global niche sectors such a • GVA: electronics Differentiated markets (agricultural, fuels and • Value of exports of electronics Goods manufacturing or natural synthetics, • Employment in concerns resource based) electronics, as well manufacturing fuel, rubber and as employment plastics capacities in these • Employment in concerns fields electronics • Value of exports: fuel, rubber and plastics 3 Production: Highly dependent on Importance of • GVA Mining Labour-Intensive proximity to good and mass-produced • GVA Agriculture (1996 – 2004) Mass-Produced cheap transport linkages goods in terms of • GVA Manufacturing (excluding fuel, Goods and large unskilled and GDP as well as rubber, plastics and electronics) semi-skilled labour pool labour absorption • Employment in mining • Employment in agriculture • Employment in manufacturing (excluding fuel, rubber, plastics and electronics) 4 Public Services Business and public Efficient • Municipal debt (over 30 days) as a and management required to managerial and ratio of number of households Administration organise processes of administrative • percentage of population as senior production, consumption capacity of local officials and managers; and circulation. authorities professionals; technicians and Also services of health, associated professionals welfare and education • percentage of people employed in public admin and defence Efficient • University exemption rate for Grade management of Twelve (indication of successful schools education delivery)
Efficiency in health • percentage of people employed in care health and social work 5 Retail and Retail, catering and Retail blossoms • GVA retail and finance Services personal services large where money is • Employment in retail and finance employer of semi-skilled generated in the • Overall household income in the workers. productive and locality service sectors Locational requirements: and where there is presence of enterprises a concentration of and people willing and higher-income able to pay for goods and households services 6 Tourism Eco-scenery, cultural • Number of establishments in heritage, entertainment, entertainments and tourism sector good transport routes and • Number of people employed in services, high-quality hotels and restaurants restaurants and • GVA contribution of tourism accommodation Table 4.1: Categories of Potential and the Indicators used to Measure these Categories Source: NSDP, 2003
These development potential categories listed in the NSDP are not value-free categories. Instead, they are development potential categories acknowledging:
• That economic activity in the modern context is not isolated and immune from external influences, but takes place in a broader national, sub-regional and even global context.
Page 70 of 136 • Innovation and adaptation capacities as being indispensable ingredients of sustainable economic activities in the modern context.
According to the NSDP, the Free State has limited development potential in the national context. This is evident from the fact that its economic contribution to the national economy is low, percentage-wise. Also, the per capita GDP of the Free State is lower than that of Gauteng, the Western Cape and KwaZulu-Natal which drives the South African economy.
Over the past fifty years, the provincial contribution to the National Domestic Product has declined, when expressed as a percentage of the national economy. In most cases, therefore, development potential in the Free State will lag behind the national average. In the few exceptional cases where localities in the Province are on par with or even out-performing the national norm, attention will be drawn to such exceptions. However, drawing a detail map is important as it shows the comparative development potential of the Province.
4.3. Methodology
The six development potential categories of the Province on a spatial basis will be analysed. The boundaries of the local municipalities (20) have been used as the basis for intra-provincial comparison, and, where possible, they were refined to the level of magisterial district boundaries (a total of 52) or even urban settlement levels (a total of 80).
It should also be mentioned that the information was only available at the magisterial district level. This data was readjusted to be applicable at the local municipal and the settlement level. The following two main assumptions were made in respect of adjusting the figures to the local municipal and the settlement level:
• Agricultural data were adjusted according to the percentage of the magisterial districts falling within the local municipal boundaries. • The allocations of economic data between towns in one magisterial district were done proportional to its share of the population.
The following basic methodology was used for assessment at the settlement and the local municipal level (this includes the assessments for need and potential):
• The average per settlement or municipality was determined. • The standard deviation was determined. • The high-potential areas were determined by areas which had percentages or real numbers higher than the average plus the standard deviation (allocated a 4). • Above-average potential was allocated to areas which had a rating above the average but below the standard set for high potential (allocated a 3). • Below average potential was allocated to areas which had a rating between half the average and the average (allocated a 3). • Limited potential was allocated to areas with ratings less than areas rated below average potential (allocated a 1). • The figures for the different areas of potential was added for the various indicators and divided by the number of indicators to arrive at a figure of between 1 and 4.
Page 71 of 136 • The gap between the highest and the lowest was determined and divided into 4 equal parts. This was then proportionally added to the lowest rating and the final total was thus once again divided into 4 categories. • Finally, the same procedure as above was used to determine the total for the various categories of need.
Based on this overlay of both developmental potential and developmental needs, the locations qualifying for priority investment of national, provincial and local government (beyond addressing basic needs) will be listed. It should be pointed out that this does have some methodological problems which sometimes assign ratings to places without the necessary contextualisation. In addition, it also does not always convey a message about scale. Both issues will be addressed by a more detailed contextualisation in the text.
4.4. Innovation and Experimentation
Innovation and experimentation are major drivers in economic development. Only through constant improvement of either service or product can a firm be relatively certain about staying in business. With growing competition due to the impact of both the digital revolution and globalisation, products become stale or obsolete far sooner than before.
The assumption is that for meaningful R&D, graduate and post-graduate qualifications are indispensable. R&D to remake, renew, re-invent products is therefore an essential ingredient. To determine the localities with R&D potential, the focus was placed on:
• Graduates with degrees in Physical Science, Mathematics and Engineering as percentage of the population • The percentage of the population with an honours or higher degree.
The results of the ranking are portrayed in Map 4.1. Bloemfontein is highly ranked due to the prominence of two universities, whilst Sasolburg, Harrismith and Ladybrand have R&D components in the agro-industry, and manufacturing. However, the high rating of Ladybrand should also be viewed against the fact that a large number of engineers and technically skilled people resided in Ladybrand while working in Lesotho on the Lesotho Highlands Water Project or who are in general linked to the Lesotho economy.
The high demand for engineers in the mining industry is the reason why Welkom, Theunissen and Koffiefontein are on the list. However, the diamond mine at Koffiefontein closed down earlier in 2005, which will see the town constantly drop considerably in terms of the indicators.
The appearance of Clarens is in general linked to the tourism industry and more related to a fairly large number of highly qualified having retired in the town. As these would mostly be elderly people it is thus not advisable to view Clarens as an area of potential regarding innovation and experimentation – possibly with the exception of the tourism industry.
Mangaung (Motheo District) and Metsimaholo (Fezile Dabi District) were the only two municipalities rated with high potential in respect of innovation and experimentation. It is also noteworthy that they are the only two municipalities
Page 72 of 136 within which ITC is recognised as a key priority area in their respective IDPs.
Map 4.1a: Innovation and Experimentation areas in the Free State, 2006
SASOLBURG
PARYS DENEYSVILLE
ORANJEVILLE VREDEFORT VILLIERS FREE STATE PROVINCIAL GOVERNMENT
VILJOENSKROON KOPPIES CORNELIA HEILBRON FRANKFORT
BOTHAVILLE Legend
VREDE Towns
EDENVILLE TWEELING Limited Potential KROONSTAD PETRUS STEYN MEMEL
Below Average Potential ALLANRIDGE REITZ
HOOPSTAD WESSELSBRON WARDEN ODENDAALSRUS LINDLEY Above Average Potential STEYNSRUST WELKOM HENNENMAN ARLINGTON High Potential VENTERSBURG HERTZOGVILLE VIRGINIA Local Municipalities BETHLEHEM BULTFONTEIN HARRISMITH THEUNISSEN PAUL ROUX KESTELL Limited Potential SENEKAL
Below Average Potential
WINBURG ROSENDAL CLARENS PHUTHADITJHABA BOSHOF
FOURIESBURG Above Average Potential
DEALESVILLE BRANDFORT MARQUARD SOUTPAN High Potential
VERKEERDEVLEI FICKSBURG CLOCOLAN EXCELSIOR
JACOBSDAL PETRUSBURG BLOEMFONTEIN
THABA NCHU LADYBRAND LOCALITY PLAN BOTSHABELO TWEESPRUIT
THABA PATSHOA
KOFFIEFONTEIN OPPERMANSDORP
HOBHOUSE
DEWETSDORP
REDDERSBURG
EDENBURG WEPENER LUCKHOFF FAURESMITH JAGERSFONTEIN
VAN STADENSRUST
TROMPSBURG
SMITHFIELD DEPARTMENT LOCAL GOVERNMENT & HOUSING PHILIPPOLIS SPRINGFONTEIN SPATIAL PLANNING DIRECTORATE ZASTRON SPATIAL INFORMATION SERVICES
ROUXVILLE
BETHULIE
GARIEP DAM
COMPILED BY: SW Slabbert 20 0 20 40 60 80 100 I Kilometers SOURCE: CENTRE FOR DEVELOPMENT STUDIES DATE: May 2006
Map4.1: Provincial Areas of Innovation and Experimentation
Considering areas with above average potential, the following settlements should be mentioned: Kroonstad, Viljoenskroon, Parys, Virginia, Odendaalsrus, Bethlehem and Phuthaditjhaba. Moqhaka (Fezile Dabi) and Matjhabeng (Lejweleputswa) are the only two municipalities in the above-average category.
When measured against the national picture, Sasolburg (with 1065 natural science, mathematics and engineering professionals and 585 graduates with post-graduate qualifications) and Bloemfontein (with 1864 natural science, mathematics and engineering professionals and 4707 graduates with post- graduate qualifications) are leading places on a national basis: Sasolburg is 84% and Bloemfontein 72% better than the national norm of people as a percentage of the population in these two categories.
Whilst Welkom and Virginia are better in terms of mathematical and engineering professionals, they lag far behind in respect of people qualified beyond a first degree. The relative capacities of Harrismith, Ladybrand, Kroonstad, Parys, Phuthaditjhaba and Bethlehem are probably made up of expertise in agro-industry, private medical and engineering practitioners, and people in the formal teaching profession or due to the fact that the presence of the branch of the Free State University in Maluti-a-Phofung.
Page 73 of 136 The developmental impact of the innovation factor through R&D is already evident in Sasolburg. When the local coalfields became insufficient suppliers to Sasol 1, the plant was transformed into one producing chemicals rather than synthetic fuels.
Through R&D, Sasol 1 developed such international linkages that a decision was taken to keep Sasol 1 operational. That meant the construction of the gas- pipeline from Mozambique to Sasolburg. This process re-invented the life-cycle of an ageing factory concern: effective R&D, coupled with managerial and entrepreneurial strategies, has not only extended the operation of the plant, but led to massive new investments and an anchor industry for decades to come.
4.5. High Value Differentiated Goods
High value differentiated goods can be across various sectors of the economy. Examples of potential in this field would be organic horticulture or specialised meat production or exporting flowers to Europe or jewellery production and export. In order to measure this category of potential, the following categories were used:
• GVA: fuel, rubber and plastics • GVA: electronics • Value of exports of electronics • Employment in concerns manufacturing fuel, rubber and plastics • Employment in concerns electronics • Value of exports: fuel, rubber and plastics
The results are portrayed in Map 4.2. Sasolburg and Bloemfontein (and their respective municipalities namely Metsimaholo and Mangaung), are the leading localities with ratings of high potential. This is based on the petro-chemical plant at Sasol 1, and the role of Bloemfontein in fuel, rubber and plastics.
The dominant role of Sasolburg in this sector will be strengthened as and when the processing of natural gas from Mozambique will come fully on-stream. Outside Sasolburg and Bloemfontein, there is no significant potential in a national context. Welkom has above-average potential in this regard, but the scale of its contribution is marginal.
To understand the extent to which especially Sasolburg dominates these sub- sectors, the following is pertinent:
• Sasolburg contributes more than 90% of the provincial GVA in the sub-sector of the manufacturing of fuels, rubbers and plastics. • Sasolburg’s industries employ 75% of the workers in this sub-sector in the Province. • The local industry contribution to the provincial in electronics amounts to 30.7%. • Exports in electronics from Sasolburg represent 42% of the provincial export value in electronics.
Page 74 of 136 Map 4.2: Areas of high value differentiated goods in the Free State, 2006
SASOLBURG
PARYS DENEYSVILLE
ORANJEVILLE VREDEFORT VILLIERS FREE STATE PROVINCIAL GOVERNMENT
VILJOENSKROON KOPPIES CORNELIA HEILBRON FRANKFORT
BOTHAVILLE Legend VREDE Towns
EDENVILLE TWEELING Limited Potential KROONSTAD PETRUS STEYN MEMEL
ALLANRIDGE REITZ Below Average Potential
HOOPSTAD WESSELSBRON WARDEN ODENDAALSRUS LINDLEY STEYNSRUST Above Average Potential WELKOM HENNENMAN ARLINGTON
VENTERSBURG HERTZOGVILLE VIRGINIA High Potential
BETHLEHEM Local Municipalities BULTFONTEIN HARRISMITH THEUNISSEN PAUL ROUX KESTELL SENEKAL Limited Potential
WINBURG ROSENDAL CLARENS PHUTHADITJHABA Below Average Potential BOSHOF
FOURIESBURG
DEALESVILLE BRANDFORT MARQUARD Above Average Potential
SOUTPAN
VERKEERDEVLEI High Potential FICKSBURG CLOCOLAN EXCELSIOR
JACOBSDAL PETRUSBURG BLOEMFONTEIN LOCALITY PLAN THABA NCHU LADYBRAND TWEESPRUIT BOTSHABELO
THABA PATSHOA
KOFFIEFONTEIN
OPPERMANSDORP
HOBHOUSE
DEWETSDORP
REDDERSBURG
EDENBURG WEPENER LUCKHOFF FAURESMITH JAGERSFONTEIN
VAN STADENSRUST
TROMPSBURG
SMITHFIELD DEPARTMENT LOCAL GOVERNMENT & HOUSING PHILIPPOLIS SPRINGFONTEIN SPATIAL PLANNING DIRECTORATE ZASTRON SPATIAL INFORMATION SERVICES
ROUXVILLE
BETHULIE
GARIEP DAM 20 0 20 40 60 80 100 I Kilometers COMPILED BY: SW Slabbert SOURCE: CENTRE FOR DEVELOPMENT STUDIES
DATE: May 2006
Map4. 2: Provincial Areas of High Value Differentiated Goods
4.6. Labour-intensive Mass Produced Goods
The indicators selected to measure potential in this category, are GVA in mining, GVA in agricultural production, and GVA in manufacturing excluding the categories of fuels, rubber and plastics and electronics. Employment in these categories was also taken as being important. In order to prevent distortion based on a good or a bad year in agriculture, the GVA for agriculture was taken on the average of the sector GVA data for the nine-year period of 1996 to 2004.
Furthermore, although it was possible to easily transfer GVA in agriculture from magisterial districts to municipalities, it was more complicated in the case of settlements. Here the ratings of magisterial districts were transferred to the respective settlements in the magisterial district.
Before an overview of the results can be provided, it should be borne in mind that the factors that have driven the provincial economy for the past 80 years are under stress, and are in fact displaying a long-term declining trend.
Map 4.3 provides an overview of the provincial development potential per municipal area and for each settlement. The following municipalities are rated high in terms of labour-intensive and mass-produced goods: Mangaung, Moqhaka and Matjhabeng. An above-average rating was assigned to Metsimaholo, Masilonyana, Dihlabeng and Setsoto.
Page 75 of 136
At the settlement level, the following settlements were rated high: Bloemfontein, Sasolburg, Viljoenskroon, and Welkom. The significance of Viljoenskroon should be understood against the fact that it has mining and agriculture potential. The following settlements were classified as settlements with potential above the average: Kroonstad, Heilbron, Virginia, Odendaalsrus, Theunissen, Bothaville, Bethlehem, Harrismith, Senekal and Wesselsbron.
In addition, manufacturing capacity (and value) outside fuels and chemicals remains small when compared with national figures. For example, the Province only contributes 3.1% of manufacturing in food, 2% of manufacturing in textiles and 1.4% of manufacturing in metal products. In order to narrow down the focus on development potential, it was necessary to determine the scale and impact of existing activities.
Map 4.3: Areas of labour intensive mass produced goods in the Free State, 2006
SASOLBURG
PARYS DENEYSVILLE
ORANJEVILLE VREDEFORT VILLIERS FREE STATE PROVINCIAL GOVERNMENT
VILJOENSKROON KOPPIES CORNELIA HEILBRON FRANKFORT
BOTHAVILLE Legend VREDE Towns EDENVILLE TWEELING
KROONSTAD Limited Potential PETRUS STEYN MEMEL
ALLANRIDGE REITZ Below Average Potential HOOPSTAD WESSELSBRON WARDEN ODENDAALSRUS LINDLEY STEYNSRUST Above Average Potential WELKOM HENNENMAN ARLINGTON
VENTERSBURG HERTZOGVILLE VIRGINIA High Potential
BETHLEHEM BULTFONTEIN HARRISMITH Local Municipalities THEUNISSEN PAUL ROUX KESTELL SENEKAL Limited Potential
WINBURG ROSENDAL CLARENS PHUTHADITJHABA BOSHOF Below Average Potential
FOURIESBURG
DEALESVILLE MARQUARD BRANDFORT Above Average Potential SOUTPAN
VERKEERDEVLEI FICKSBURG High Potential CLOCOLAN EXCELSIOR
JACOBSDAL PETRUSBURG BLOEMFONTEIN
THABA NCHU LADYBRAND LOCALITY PLAN TWEESPRUIT BOTSHABELO
THABA PATSHOA
KOFFIEFONTEIN OPPERMANSDORP
HOBHOUSE
DEWETSDORP
REDDERSBURG
EDENBURG WEPENER LUCKHOFF FAURESMITH JAGERSFONTEIN
VAN STADENSRUST
TROMPSBURG
SMITHFIELD DEPARTMENT LOCAL GOVERNMENT & HOUSING PHILIPPOLIS SPRINGFONTEIN SPATIAL PLANNING DIRECTORATE ZASTRON SPATIAL INFORMATION SERVICES
ROUXVILLE
BETHULIE
GARIEP DAM 20 0 20 40 60 80 100 I Kilometers COMPILED BY: SW Slabbert
SOURCE: CENTRE FOR DEVELOPMENT STUDIES
DATE: May 2006
Map4. 3: Provincial Areas of Labour-intensive Mass Produced Goods
In manufacturing (apart from fuels and electronics) Sasolburg was again the leading contributor by far with 36.6% of the provincial GVA, followed by Bloemfontein, Welkom, Bethlehem, Viljoenskroon, Botshabelo, Kroonstad, Phuthaditjhaba and Harrismith, which (together with Sasolburg), contribute almost 80% of the provincial GVA in this sub-sector. Any further manufacturing developments should preferably be targeted at these places to enhance linkages and contribute to a positive agglomeration effect.
Page 76 of 136 In mining, Welkom (38.5%), Viljoenskroon (18.4%), Theunissen (12.1%), and Odendaalsrus and Virginia (both at 10%) jointly produced 90% of the mining sector’s GVA in the Province. In agriculture, a total of 20 magisterial districts are required to achieve the 75% of the provincial agricultural GVA, with Bloemfontein (11.8%), Bethlehem (8.5%), Hoopstad (5.2%), Senekal (4.9%) and Bultfontein (4.7%) being the top five agricultural production districts (in terms of magisterial districts) over the nine years 1996 to 2004. The potential of building further on dry-land agriculture appears to be very limited.
4.7. Public Service and Administration
Effective public administration in the fields of local government, and also health and public safety are important factors to create environments conducive to development. Unfortunately, apart from municipal debt as a factor against urban households, and university exemptions in Grade 12 results, the efficiencies of the public services could not be measured.
Employment in the public sector was also taken as an indicator, but it has to be noted that these are rather unsatisfactory criteria, since the councillors and officials of a large municipality are no guarantee that local governance is performed more efficiently than in the case of a smaller local municipality.
At the same time, the indicator for municipal debt was also problematic in the sense that data was only available at the municipal level. However, it was decided to take those indicators over to the various settlements. In the case of municipal debt, only debt longer than 30 days was taken and weights were accorded against the provincial average.
This again is unsatisfactory, and a national yardstick would be more relevant. Also, the scoring is relative: despite some localities scoring the maximum of 4 on this indicator, it remains a fact that all local municipalities have substantial outstanding debt. The following specific indicators were used:
• Municipal debt (over 30 days) as a ratio of number of households. • Percentage of population as senior officials and managers; professionals; technicians and associated professionals. • Percentage of people employed in public admin and defence. • University exemption rate for Grade 12. • Percentage of people employed in health and social work.
Mangaung and Metsimaholo municipalities were the only municipalities to receive a very high rating in terms of public service and administration (also see Map 4.4). Municipalities with above-average potential are Mantsopa and Kopanong.
In terms of settlements, the following settlements were rated with a high potential: Bloemfontein, Thaba Nchu, Jagersfontein while Botshabelo, Tweespruit, Kroonstad, Parys, Bethlehem, Phuthaditjhaba, Harrismith, Jagersfontein, Ladybrand, Odendaalsrus, Hennenman, Bothaville, Ficksburg, Senekal, Trompsburg, Reddersburg, Fauresmith, Zastron, Petrusburg, and Koffiefontein received an above-average rating (see Map 4.4).
Page 77 of 136
It should also be noted that, according to the Free State Provincial Spatial Development Framework, Bloemfontein, Trompsburg, Welkom, Sasolburg, and Phuthaditjhaba have been identified as administrative centres. In many of the small towns, rating the relative importance of public-sector employment compared to other employment is probably the main reason for their ratings.
Map 4.4: Areas for public services and administratation in the Free State, 2006
SASOLBURG
PARYS DENEYSVILLE
ORANJEVILLE VREDEFORT VILLIERS FREE STATE PROVINCIAL GOVERNMENT
VILJOENSKROON KOPPIES CORNELIA HEILBRON FRANKFORT
BOTHAVILLE VREDE Legend EDENVILLE TWEELING Towns
KROONSTAD PETRUS STEYN MEMEL Limited Potential
ALLANRIDGE REITZ HOOPSTAD WESSELSBRON Below Average Potential WARDEN ODENDAALSRUS LINDLEY STEYNSRUST WELKOM HENNENMAN Above Average Potential ARLINGTON
VENTERSBURG HERTZOGVILLE VIRGINIA High Potential
BETHLEHEM BULTFONTEIN HARRISMITH Local Municipalities THEUNISSEN PAUL ROUX KESTELL SENEKAL Limited Potential
WINBURG ROSENDAL CLARENS PHUTHADITJHABA BOSHOF Below Average Potential
FOURIESBURG
DEALESVILLE BRANDFORT MARQUARD Above Average Potential
SOUTPAN
VERKEERDEVLEI High Potential FICKSBURG CLOCOLAN EXCELSIOR
JACOBSDAL PETRUSBURG BLOEMFONTEIN LOCALITY PLAN THABA NCHU LADYBRAND TWEESPRUIT BOTSHABELO
THABA PATSHOA
KOFFIEFONTEIN OPPERMANSDORP
HOBHOUSE
DEWETSDORP
REDDERSBURG
EDENBURG WEPENER LUCKHOFF FAURESMITH JAGERSFONTEIN
VAN STADENSRUST
TROMPSBURG
SMITHFIELD DEPARTMENT LOCAL GOVERNMENT & HOUSING PHILIPPOLIS SPRINGFONTEIN SPATIAL PLANNING DIRECTORATE ZASTRON SPATIAL INFORMATION SERVICES
ROUXVILLE
BETHULIE
GARIEP DAM 20 0 20 40 60 80 100 I Kilometers COMPILED BY: SW Slabbert SOURCE: CENTRE FOR DEVELOPMENT STUDIES
DATE: May 2006
Map4.4 Provincial Areas of Public service and Administration
4.8. Retail and Private Services
In the case of the retail and private service development potential of localities, the indicators taken are:
• GVA finance and Insurance sub-sectors’ contributions to the provincial sub- sector. • Employment in these two sub-categories as a percentage of the provincial employment in these sub-sectors. • Overall household income in a locality.
The results show that Mangaung municipality do have high potential in retail and services (see Map 4.5). Above-average municipalities are Metsimaholo, Matjhabeng and Moqhaka. At the settlement level, the following settlement are categorised as having high potential: Bloemfontein, Botshabelo, Sasolburg, Welkom. Settlements with above-average potential are Thaba Nchu, Viljoenskroon, Virginia, Bothaville, Phuthaditjhaba, Kroonstad, Odendaalsrus, Harrismith, Ficksburg and Bethlehem.
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The latter is important since potential consumer spending is a driver for retail and private sector service. The seven settlements jointly contributing 75% of the provincial GVA in the retail, and financial services sub-sectors are Bloemfontein (45.8%), Welkom (11.5%), Sasolburg (7.7%), Kroonstad (3.7%), Bethlehem (3.1%), Thaba Nchu (2.3%) and Phuthaditjhaba (2.3%).
Map 4.5: Areas for retail and private services in the Free State, 2006
SASOLBURG
PARYS DENEYSVILLE
ORANJEVILLE VREDEFORT VILLIERS FREE STATE PROVINCIAL GOVERNMENT
VILJOENSKROON KOPPIES CORNELIA HEILBRON FRANKFORT BOTHAVILLE Legend VREDE Towns EDENVILLE TWEELING
KROONSTAD Limited Potential PETRUS STEYN MEMEL
ALLANRIDGE REITZ Below Average Potential HOOPSTAD WESSELSBRON WARDEN ODENDAALSRUS LINDLEY STEYNSRUST Above Average Potential WELKOM HENNENMAN ARLINGTON
VENTERSBURG HERTZOGVILLE VIRGINIA High Potential
BETHLEHEM Local Municipalities BULTFONTEIN HARRISMITH THEUNISSEN PAUL ROUX KESTELL SENEKAL Limited Potential
WINBURG ROSENDAL CLARENS PHUTHADITJHABA Below Average Potential BOSHOF
FOURIESBURG
DEALESVILLE BRANDFORT MARQUARD Above Average Potential
SOUTPAN
VERKEERDEVLEI High Potential FICKSBURG CLOCOLAN EXCELSIOR
JACOBSDAL PETRUSBURG BLOEMFONTEIN LOCALITY PLAN THABA NCHU LADYBRAND TWEESPRUIT BOTSHABELO
THABA PATSHOA
KOFFIEFONTEIN OPPERMANSDORP
HOBHOUSE
DEWETSDORP
REDDERSBURG
EDENBURG WEPENER LUCKHOFF FAURESMITHJAGERSFONTEIN
VAN STADENSRUST
TROMPSBURG
SMITHFIELD DEPARTMENT LOCAL GOVERNMENT & HOUSING PHILIPPOLIS SPRINGFONTEIN SPATIAL PLANNING DIRECTORATE ZASTRON SPATIAL INFORMATION SERVICES
ROUXVILLE
BETHULIE
GARIEP DAM 20 0 20 40 60 80 100 I Kilometers COMPILED BY: SW Slabbert SOURCE: CENTRE FOR DEVELOPMENT STUDIES
DATE: May 2006
Map4.5 Provincial Areas of Retails and Private Services
4.9. Tourism
The NSDP identifies the magisterial districts of Bethlehem, Fouriesburg, and Witsieshoek as well as the magisterial districts of Bloemfontein and Welkom, as areas with potential for tourism.
The Free State Spatial Development Framework has, amongst others, identified the following main tourism areas: Eastern Free State (Golden Gate, Maluti-transfrontier Park, Clarens, the Memel area), Northern Free State (Sasolburg area; Vredefort Dome), and Lake Gariep in the Southern Free State. The following indicators were used to measure the potential of tourism:
• Number of tourism and entertainment establishments (hotels, guest houses, casinos, golf clubs, and restaurants). • The employment figures in these fields in hotels and restaurants.
Page 79 of 136 • GVA through tourism enterprises (hotels and restaurants).
In addition, the economic impact of professional rugby, cricket and soccer (Bloemfontein Celtic, Free State Stars, Free State Cheetahs, the Eagles), and large festivals (Macufe, Volksblad Arts Festival, and the Cherry Festival), are, in all probability, not fully captured since large components of these will be recorded within the retail data. Neither are reliable statistics on tourist bed occupation available. Despite these constraints, it is clear that the tourism potential of the Province has a number of spatial focal points (see Table 4.2.)
Nature of tourism Spatial focal point Natural resource -based tourism and weekend tourism : Clarens, Golden Gate, Drakensberg Golden Gate, Maluti-Drakensberg Transfrontier Park, also area, Fouriesburg, Ficksburg, Clocolan, agri-tourism (Cherry Festival), lifestyle and links to Rosendal, Memel, Gariep Dam, and Lesotho, Gariep Dam, Vredefort Dome. Vredefort.
Events and entertainment : Casinos, conferences, Predominantly Bloemfontein theatres and concert halls, professional soccer, rugby, and cricket, Volksblad Arts Festival, Macufe, Women’s Memorial, and historical buildings Events and weekend tourism : Annual national event Kroonstad (Jukskei Park), Kroon Park Events, weekend tourism, and entertainment: Arts, Sasolburg, Deneysville, Parys, theatre, visits to petro-chemical factories, leisure, and water sport (Vaaldam) Events and entertainment : Phakisa Race Track events, Welkom Gold Mining, Other events. Table 4.2: The Spatial focal Points for Tourism Source: Adapted from Free State Provincial Spatial Development Framework, 2005.
The combined results of indicators are reflected in Map 4.6 below. Places rated as having high tourism development potential are: Bloemfontein, Sasolburg Kroonstad, and Welkom, with Mangaung being the only municipal area rated as high. Locations with an above-average allocation in respect of tourism are Thaba Nchu, Virginia, Bethlehem, Harrismith, Ficksburg and Clarens. The above average rating of Thaba Nchu is due to change as the main casino will be relocated to Bloemfontein.
The following municipalities have also been categorised as areas with above- average tourism potential: Metsimaholo, Dihlabeng, and Matjhabeng. Other towns with proven tourism potential, though not adequately reflected in the data, are Clarens, Parys, Frankfort, Fouriesburg, Phuthaditjhaba, Clocolan, the Memel area and Phillipolis.
It should also be remembered that the development of tourism is a fairly recent market and that despite the various indicators; the tourism potential could be harnessed by exceptional entrepreneurship. As already outlined in Table 4.2, different tourism potentials require different types of programmes to address specific sub-sectors within the tourism environment.
Page 80 of 136
Map 4.6: Areas of tourism potential in the Free State, 2006
SASOLBURG
PARYS DENEYSVILLE
ORANJEVILLE VREDEFORT VILLIERS FREE STATE PROVINCIAL GOVERNMENT
VILJOENSKROON KOPPIES CORNELIA HEILBRON FRANKFORT
BOTHAVILLE Legend
VREDE Towns
EDENVILLE TWEELING Limited Potential KROONSTAD PETRUS STEYN MEMEL
ALLANRIDGE REITZ Below Average Potential
HOOPSTAD WESSELSBRON WARDEN ODENDAALSRUS LINDLEY STEYNSRUST Above Average Potential WELKOM HENNENMAN ARLINGTON VENTERSBURG High Potential HERTZOGVILLE VIRGINIA
BETHLEHEM Local Municipalities BULTFONTEIN HARRISMITH THEUNISSEN PAUL ROUX KESTELL SENEKAL Limited Potential
WINBURG ROSENDAL CLARENS PHUTHADITJHABA Below Average Potential BOSHOF
FOURIESBURG
DEALESVILLE BRANDFORT MARQUARD Above Average Potential
SOUTPAN
VERKEERDEVLEI High Potential FICKSBURG CLOCOLAN EXCELSIOR
JACOBSDAL PETRUSBURG BLOEMFONTEIN
THABA NCHU LADYBRAND LOCALITY PLAN TWEESPRUIT BOTSHABELO
THABA PATSHOA
KOFFIEFONTEIN OPPERMANSDORP
HOBHOUSE
DEWETSDORP
REDDERSBURG
EDENBURG WEPENER LUCKHOFF FAURESMITHJAGERSFONTEIN
VAN STADENSRUST
TROMPSBURG
SMITHFIELD DEPARTMENT LOCAL GOVERNMENT & HOUSING
PHILIPPOLIS SPRINGFONTEIN SPATIAL PLANNING DIRECTORATE ZASTRON SPATIAL INFORMATION SERVICES
ROUXVILLE
BETHULIE
GARIEP DAM 20 0 20 40 60 80 100 I Kilometers COMPILED BY: SW Slabbert SOURCE: CENTRE FOR DEVELOPMENT STUDIES
DATE: May 2006
Map4.6 Provincial Areas of Tourism Potential
4.10. Resource Potential
It was impossible to develop an appropriate resource potential framework for the various municipalities and towns. The required data for analysis was not available. However, a number of key notes should be made in this regard:
• The average rainfall suggests that overall potential in especially agriculture remains limited. Although some effort could be made to assist farmers with diversification of crops, certain climatic constraints do exist. • The low rainfall coupled with the limited soil potential further suggests limited agricultural potential. • The mineral resources in terms of mining have all been in processes of depletion. Although it is likely that some new shafts will be opened in the future, the development potential in this regard remains limited and not a sector on which future growth should be built. • Water availability according to the maps provided by the NSDP suggests that some extra water is available in the Southern Free State (around the Gariep and Van der Kloof dams) and in the northern parts of the Province in close proximity to the Vaal Dam and the Vaal River.
Page 81 of 136
4.11. Development Potential: Summary
Map 4.7 summarises the combined development potential as reflected for each of the categories for each settlement and each municipality. Table 4.3 provides the same information in table format. It should be borne in mind that potential can be in a specific category and that this table summarises total potential between the six categories equally.
Category Settlements Municipalities Districts High development Bloemfontein, Welkom, Mangaung, Motheo; potential Sasolburg Metsimaholo, Fezile Dabi Above-average Kroonstad, Virginia, Matjhabeng Lejweleputswa development potential Bethlehem, Harrismith Below-average Botshabelo, Moqhaka Fezile Dabi development potential Viljoenskroon, Dihlabeng Thabo Odendaalsrus, Mofutsanyana Phuthaditjhaba, Thaba Nchu, Parys, Heilbron, Maluti-a-Phofung Thabo Theunissen, Clarens, Mofutsanyana Ficksburg, Ladybrand, Bothaville, Senekal, Koffiefontein Limited development All other settlements All other municipalities potential Table 4.3: The overall development Potential per Settlement and Municipality
Another important indicator for measurement of potential is the ability of a locality to grow its economic base more rapidly than the industry norm, since that implies success in adaptation and innovation. With recorded growth of 137.3%, Sasolburg is the only locality that has performed better than the national average over this period.
This performance is indicative of development deserving support, especially considering that government services percentage wise grew the least in Sasolburg – less than 5% over the period of 8 years. Other places in the Province that do not lag too far behind the national average are:
• Jacobsdal (growth of 109% from a very small base and largely driven through manufacturing linked to agro-processing). • Bloemfontein (growth of 101% and fuelled by public sector services, trade and financial services). • Jagersfontein (growth of 102% from a very small base and fuelled mostly through public service delivery). • Bothaville, Viljoenskroon and Botshabelo also deserve mention for growth well in excess of the provincial pace.
Page 82 of 136 Map 4.7: Areas with development potential in the Free State, 2006
SASOLBURG
PARYS DENEYSVILLE
ORANJEVILLE VREDEFORT VILLIERS FREE STATE PROVINCIAL GOVERNMENT
VILJOENSKROON KOPPIES CORNELIA HEILBRON FRANKFORT
BOTHAVILLE Legend
VREDE Towns
EDENVILLE TWEELING Limited Combined Potential KROONSTAD PETRUS STEYN MEMEL
ALLANRIDGE REITZ Below Average Combined Potential
HOOPSTAD WESSELSBRON WARDEN ODENDAALSRUS LINDLEY STEYNSRUST Above Average Combined Potential WELKOM HENNENMAN ARLINGTON
VENTERSBURG HERTZOGVILLE VIRGINIA High Combined Potential
BETHLEHEM Local municipality BULTFONTEIN HARRISMITH THEUNISSEN PAUL ROUX KESTELL SENEKAL Limited Combined Potential
WINBURG ROSENDAL CLARENS PHUTHADITJHABA BOSHOF Below Average Combined Potential
FOURIESBURG
DEALESVILLE BRANDFORT MARQUARD Above Average Combined Potential SOUTPAN
VERKEERDEVLEI FICKSBURG High Combined Potential CLOCOLAN EXCELSIOR
BLOEMFONTEIN JACOBSDAL PETRUSBURG
THABA NCHU LADYBRAND TWEESPRUIT LOCALITY PLAN BOTSHABELO
THABA PATSHOA
KOFFIEFONTEIN OPPERMANSDORP
HOBHOUSE
DEWETSDORP
REDDERSBURG
EDENBURG WEPENER LUCKHOFF FAURESMITH JAGERSFONTEIN
VAN STADENSRUST
TROMPSBURG
SMITHFIELD DEPARTMENT LOCAL GOVERNMENT & HOUSING PHILIPPOLIS SPRINGFONTEIN SPATIAL PLANNING DIRECTORATE ZASTRON SPATIAL INFORMATION SERVICES
ROUXVILLE
BETHULIE
GARIEP DAM 20 0 20 40 60 80 100 I Kilometers COMPILED BY: SW Slabbert SOURCE: CENTRE FOR DEVELOPMENT STUDIES
DATE: May 2006
Map4.7 Provincial Areas with Development Potential
4.12. Development Needs
For the purposes of this analysis, provincial development needs are based on the following indicators:
• Number of disabled people per locality • The percentage of people without schooling or with limited schooling per locality • The percentage of people who are unemployed • Number of households residing in informal dwellings (whether in a backyard or on a surveyed and serviced or un-surveyed and un-serviced site) • Number of people without access to adequate sanitation (current access in terms of an unventilated pit latrine, bucket or none) • Number of people without access to water within 200m from their stand • Number of people with an income below R3 500.
The following three municipalities were rated as municipalities with high development need: Mangaung, Matjhabeng and Maluti-a-Phofung. Municipalities with a rating of above average are Moqhaka and Setsoto. Municipalities with below-average development need are: Nala, Ngwathe, and Dihlabeng. The remainder, all reflect low development need.
Considering development need at settlement level some deviation from the
Page 83 of 136 methodology had to be taken. Two assumptions were made. First, it was assumed that the Tribal Authority Areas should be categorised as areas with high development need (especially the communal rural areas Maluti-a- Phofung).
Second, rural areas on commercial farming land were also not rated, as they require a different service delivery model and cannot be compared with the urban settlements. These assumptions having been made, urban settlements were compared in respect of need. The results have revealed somewhat of a discrepancy between the results at the municipal level and those on the settlement level. The results are reflected in Map 4.8 and Table 4.4
Map 4.8: Areas with development need in the Free State, 2006
SASOLBURG
PARYS DENEYSVILLE
ORANJEVILLE VREDEFORT VILLIERS FREE STATE PROVINCIAL GOVERNMENT
VILJOENSKROON KOPPIES CORNELIA HEILBRON FRANKFORT BOTHAVILLE Legend VREDE
EDENVILLE TWEELING Towns
KROONSTAD PETRUS STEYN MEMEL Limited Need
ALLANRIDGE REITZ Below Average Need HOOPSTAD WESSELSBRON WARDEN ODENDAALSRUS LINDLEY STEYNSRUST Above Average Need WELKOM HENNENMAN ARLINGTON
VENTERSBURG HERTZOGVILLE VIRGINIA High Need
BETHLEHEM Local Municipalities BULTFONTEIN HARRISMITH THEUNISSEN PAUL ROUX KESTELL SENEKAL Limited Need
WINBURG ROSENDAL CLARENS PHUTHADITJHABA Below Average Need BOSHOF
FOURIESBURG
DEALESVILLE Above Average Need BRANDFORT MARQUARD
SOUTPAN High Need VERKEERDEVLEI FICKSBURG CLOCOLAN EXCELSIOR
JACOBSDAL PETRUSBURG BLOEMFONTEIN LOCALITY PLAN THABA NCHU LADYBRAND TWEESPRUIT BOTSHABELO
THABA PATSHOA
KOFFIEFONTEIN
OPPERMANSDORP
HOBHOUSE
DEWETSDORP
REDDERSBURG
EDENBURG WEPENER LUCKHOFF FAURESMITH JAGERSFONTEIN
VAN STADENSRUST
TROMPSBURG
SMITHFIELD DEPARTMENT LOCAL GOVERNMENT & HOUSING
PHILIPPOLIS SPRINGFONTEIN SPATIAL PLANNING DIRECTORATE ZASTRON SPATIAL INFORMATION SERVICES
ROUXVILLE
BETHULIE
GARIEP DAM 20 0 20 40 60 80 100 I Kilometers COMPILED BY: SW Slabbert
SOURCE: CENTRE FOR DEVELOPMENT STUDIES DATE: May 2006
Map4.8 Provincial Areas with Development Needs
Criteria Settlement High development need Tribal Authority area in Maluti-a-Phofung, Bloemfontein, Botshabelo, Sasolburg, Welkom, Virginia, Odendaalsrus, Thaba Nchu Above-average development Kroonstad, Ladybrand, Viljoenskroon, Parys, Heilbron, Theunissen, need Bethlehem, Harrismith, Ficksburg, Below-average development Frankfort, Hennenman, Bothaville, Bultfontein, Senekal, Marquard, need Phuthaditjhaba, Clocolan, Wesselsbron. Limited development need All other settlements Table 4.4: The Categorisation of Settlements in terms of Development Needs
Page 84 of 136
It is noteworthy that the urban settlements listed as settlements with high or above-average development need on average contain more than 75% of the development need of urban areas in the Province.
4.13. Combining Development Potential and Development Needs
Due to the larger urban centres and middle-order towns, the development potential and development needs largely overlap. By merging the development potential and the development needs scores, the following picture emerges at the municipal level (see Table 4.5). The darker the shading, the more it is an indication of emphasis on the specific municipality or settlement.
Potential and Need High Development Above average Below Average Limited Development Potential Development Potential Development Potential Potential High development Mangaung Matjhabeng Maluti-a-Phofung need (Motheo ) (Lejweleputswa ) (Thabo Mofutsanyana ) Above average Moqhaka (Fezile Setsoto ( Thabo development need Dabi) Mofutsanyana ) Below average Metsim aholo ( Fezile Dihlabeng ( Thabo Nala development need Dabi ) Mofutsanyana ) (Lejweleputswa ), Ngwathe ( Fezile Dabi ) Limited Mantsopa, Naledi, development need (Motheo ), Masilonyana, Tokologo, Tswelopele (Lejweleputswa ), Nketoana, Phumelela ( Thabo Mofutsanyana ), Kopanong, Mohokare, Letsemeng (Xhariep ) Mafube ( Fezile Dabi ) Table 4.5: An Overview of the Relationship between Development Potential and Development Needs per Municipality
The results of combining development need and development potential at the settlement level is reflected in Map 4.6 and Table 4.6.
Page 85 of 136
Potential and Need High Development Above- Below-average Limited Development Potential average Development Potential Development Potential Potential High Development Bloemfontein, Virginia Botshabelo, Need Sasolburg, Odendaalsrus, Welkom, Thaba Nchu, Above-average Bethlehem, Parys, Heilbron, Development Need Harrismith, Theunissen, Kroonstad, Ficksburg, Viljoenskroon, Ladybrand, Below-average Bothaville, Frankfort, Hennenman, Development Need Phuthaditjhaba, Bultfontein, Clocolan, Senekal, Marquard, Koffiefontein, Wesseslsbron, Limited Development Clarens Excelsior, Reitz, Need Tweespruit, Hobhouse, Thaba Phatsoa, Wepener, Dewetsdorp, Van Stadensrus, Vrede, Deneysville, Steynsrus, Vredefort, Koppies, Edenville, Villiers, Tweeling, Cornelia, Brandfort, Winburg, Verkeerdevlei, Allanridge, Ventersburg, Soutpan, Boshof, Hertzogville, Dealesville, Hoopstad, Kestell, Rosendal, Lindley, Petrus Steyn, Arlington, Warden, Memel, Edenburg, Oranjeville, Bethulie, Jagersfontein, Springfontein, Trompsburg, Reddersburg, Fauresmith, Phillipolis, Gariepdam, Zastron, Rouxville, Smithfield, Petrusburg, Jacobsdal, Luckhoff, Oppermansgronde, Paul Roux, Fouriesburg. Table 4.6: An Overview of the Relationship between Development Potential and Development Need per Municipality
4.14. Conclusion and Summary
• Development potential is mostly located in the three large urban agglomerations: Bloemfontein (Mangaung), Sasolburg (Metsimaholo), and Welkom (Matjhabeng). • It should also be noted that Mangaung and Matjhabeng are grouped with Maluti-a-Phofung as areas with high need. • The NSDP suggests that, to achieve impact in terms of economic growth, areas with development potential should be targeted. • As is the case nationally, development need is mostly (except in the case of Maluti-a-Phofung) located in the areas with high development potential. • It should also be borne in mind that areas with limited development potential
Page 86 of 136 should be prioritised in terms of investment in their people (skills development, education, social services and social security) • The NSDP suggests that any area, which is categorised as having no potential or only limited potential, should be able to showcase its potential. • The fact that some municipalities and settlements received a rating of limited potential does not mean that these municipalities should not attempt to obtain private-sector funds for development or should stand in the way of entrepreneurs who want to invest in their area. In fact, such localities should do everything possible to change the current status of their settlements. It also does not mean that appropriate strategies cannot be developed to regenerate the economies of small towns.
Page 87 of 136 Chapter Five Provincial Development Priorities and Implications
In this Chapter, emphasis is on the strategic options based on various development aspects. This also includes trade-offs defined within specific development clusters or spatial considerations. Focus is also on aligning the priorities of the FSGDS with the IDPs.
5.1. Key Provincial Priorities
The four identified key provincial priority areas in this Chapter are interdependent and should not be delineated. It should also be realised that the measurement of development in terms of the HDI comprises of educational levels, life expectancy, and income variables. Planning should thus be intertwined with HDI indicators. Development also takes place against the background of existing environmental limits, and the concept of sustainable development is central in this instance.
The first priority is economic development, employment, and investment. The analysis has shown that, compared to both its share of the national population and the national economic growth rate, the Province’s economy has not been performing as expected. However, in the past two years, there has been steady economic growth in the province as shown earlier. An assessment of IDPs shows economic development and job creation as important. Indications are also that there exist inequalities, poverty, and unequal access to economic opportunities.
It also appears that economic growth is increasingly being concentrated in the larger urban areas, and that future economic growth is likely to occur in such areas.
The second priority area focuses on human and social development. Economic growth is underpinned by a good socio-economic environment. The analysis in Chapter Three has shown that backlogs still exist in respect of basic infrastructure, social infrastructure, and basic skill levels. It is especially basic infrastructure in the poorer urban areas that negatively influences human development and business formation. All IDPs also made some reference to human and social development as a key priority.
The third key priority is on justice, crime prevention, and security. Crime and safety issues are central to economic development and growth, but also have human development consequences. Almost 15 of the municipalities identified safety and security issues as key priority areas in their IDPs. Not only does crime hamper economic development, but it also has social implications which impact negatively on human development.
Fourth, in order to ensure economic growth and sustainable development, stable and well-managed governance and administrative structures are required. Good governance not only ensures an environment within which economic development thrives, but it also assists in developing an environment in which basic services are available to all citizens.
5.2. The MDGs, Development Trajectories, Trade-Offs, and Development Barriers
In September 2000, 147 Heads of State and 189 nations committed themselves
Page 88 of 136 to making the right to development a reality for everyone and to freeing the entire human race from poverty. They acknowledged that progress is based on sustainable growth, which must focus on the poor, with human rights at the centre. The MDGs were developed as a blueprint, agreed upon by the world’s countries and the world’s leading development institutions (see Table 5.1).
Although its development status is higher than that of the world’s poorer countries, South Africa also responded to the MDGs. Vision 2014 forms part of a direct response to the MDGs with a view to addressing the development challenges set out in the Millennium Development Declaration. The development planning is thus orientated towards achieving the MDGs.
Methodologically, each broad area of the MDGs will be discussed within a defined framework. The MDGs will be discussed within the framework of the four priority areas. This will be followed by an analysis of the current development trajectories in each of the priority areas. This analysis is intended to elucidate current trends and building a future scenario.
The possible development trade-offs will then be discussed and an indication of priorities provided. Trade-offs will either be strategic or spatial. Policy trade-offs refer to choices that have to be made in considering the development profile of the Province. Spatial trade-offs should be made either in terms of potential or needs. Although trade-offs might mean focusing all the attention on one aspect, it might also mean performing all the required functions whilst increasing the importance of a single aspect in other instances.
Finally, in respect of the MDGs, the development trajectory and the trade-offs with regard to the various priority areas are discussed. In addition, the existing barriers to achieving the MDGs are identified.
MDGs Specific Objective Vision 2014 (National Government) Priority area in the Free State Eradicate hunger and Reduce by half the Reduce unemployment by half through new • Economic extreme poverty proportion of people jobs, skills development, assistance to development, living on less than one small businesses, opportunities for self- employment, and US dollar a day employment, and sustainable community investment livelihoods • Governance and Provide the skills required by the economy, administration build capacity and provide resources across • Human and social society to encourage self-employment with development an education system geared for productive work, good citizenship, and a caring society Reduce by half the Reduce poverty by half through economic proportion of people who development, comprehensive social suffer from hunger security, land reform, and improved household and community assets Achieve universal Ensure that all boys and Ensure that all South Africans, especially • Human and social primary education girls complete a full the poor and those at risk - children, youth, development course of primary women, the aged, and people with schooling disabilities – are fully able to exercise their constitutional rights and enjoy the full dignity of freedom Promote gender Eliminate gender Ensure that all South Africans, especially • Justice, crime equality and empower disparity in primary and the poor and those at risk - children, youth, prevention. and women secondary education women, the aged, and people with security preferably by 2005 and disabilities – are fully able to exercise their • Human and social at all levels by 2015 constitutional rights and enjoy the full development dignity of freedom Reduce child Reduce by two-thirds the Compassionate government service to the • Justice, crime mortality mortality rate among people; national, provincial, and local public prevention. and
Page 89 of 136 children under five representatives who are accessible; and security citizens who know their rights and insist on • Human and social fair treatment and efficient service development Improve maternal Reduce by three- Compassionate government service to the • Human and social health quarters the maternal people; national, provincial, and local public development mortality ratio representatives who are accessible; and citizens who know their rights and insist on fair treatment and efficient service 6. Combat HIV and Halt and begin to reverse Compassionate government service to the • Human and social AIDS, malaria, and the spread of HIV and people; national, provincial, and local public development other diseases AIDS representatives who are accessible; and Halt and begin to reverse citizens who know their rights and insist on the incidence of malaria fair treatment and efficient service and other major diseases Ensure environmental Integrate the principles of Compassionate government service to the • Economic sustainability sustainable development people; national, provincial, and local public development, into country policies and representatives who are accessible; and employment. and programmes, reverse citizens who know their rights and insist on investment loss of environmental fair treatment and efficient service resources Reduce by half the • Human and social proportion of people development without sustainable access to safe drinking water Achieve significant • Human and social improvement in the lives development of at least 100 million slum dwellers by 2020 Develop a global Various objectives are Position South Africa as an effective force • Economic partnership for set regarding world in global relations, with vibrant and development, development development and it balanced trade and other relations with employment. and includes governance countries of the South, the North, and in an investment issues Africa that is growing, prospering, and benefiting all Africans, especially the poor Significantly reduce the number of serious • Justice, crime and priority crimes as well as cases prevention. and awaiting trial, with a society that actively security challenges crime and corruption, and with programmes that also address the social roots of criminality Figure 5.1: Linking the MDGs, Vision 2014, and Provincial Priority Areas
5.3. Contextual Approach
Before an assessment of the development trajectory or consideration of trade- offs and barriers can be done, three basic points of departure need to be affirmed. These relate to population growth, the link between the categories of potential in the NSDP, and sectors of economic growth and the role of government in the economy.
5.3.1. Future Demographic Trends
An understanding of the future trends with regard to population and household growth is essential in projected future backlog scenarios. In this section, two scenarios are constructed with regard to future population growth in the Province, namely the overall population growth and the growth in households. A number of basic points should be made in respect of population growth in the Province:
• The slow demographic growth has been mainly due to decline of mining-related production in especially in Lejweleputswa District and the subsequent migration. • Other factors that have played a role are a general decline in fertility and mortality
Page 90 of 136 due to HIV and AIDS, and tuberculosis. • Growth between 2001 and 2005 was expected to be higher than the 0.6% between 1996 and 2001 and was influenced mainly by the declining mining industry. The main reason is that the massive population decline in the Lejweleputswa District will probably slow down. • However, population growth will decline owing to HIV and AIDS, lower fertility rates, and migration, and it is expected to reach 0% by 2010 (Pelser, 2006). • The growth in households is expected to be higher than the growth in population. This will result in a decrease in the size of households.
Figure 5.2 provides a scenario of population and household growth in the Province. Three scenarios are projected for household growth:
• High-growth scenario : 4% per annum for 2001-2005; 2% per annum for 2006- 2010; 1% per annum from 2011-2014. The outcome is an average household size of 2.84 by 2014. • Medium-growth scenario : 2% per annum for 2001-2005; 1% per annum for 2006- 2010; 0% per annum from 2011-2014. The outcome is an average household size of 3.57 by 2014. • Low-growth scenario : 1% per annum for 2001-2005; 0.5% per annum for 2006- 2010; 0% per annum from 2011-2014. The outcome is an average household size of 3.35 by 2014. • The following assumptions were built into the demographic growth rate: 1% per annum for 2001-2005; 0.5% per annum for 2006-2010; no growth for 2011-2014.
3500000
3000000
2500000
2000000
1500000
1000000
500000
0
Free State population Free State households (high growth) Free State households (medium growth) Free State households (low growth)
Figure 5.2: Population and Household Growth, 1991-2014 Baseline sources: Statistics South Africa, 1991; 1998; 2003
Overall, the population is expected to stabilise at about 2.89 million people by 2010. The scenarios with regard to household growth are between 1.01 million (high growth scenario), 0.88 million (medium-growth scenario), and 0.81 million households (low-growth scenario).
5.3.2. The Link between the NSDP and Economic Sectors
The NSDP does not necessarily refer to economic sectors, but categories of potential. Still, these categories imply sectors, for example in the case of tourism. These could also run across certain sectors. For instance, innovation and experimentation, and the production of high-value crops can be applicable to sectors such as agriculture, mining, manufacturing, and construction. Given that world economy, especially manufacturing industry, has moved towards a knowledge-based economy, the production of high-value goods is essential. In establishing development trajectories and trade-offs within economic
Page 91 of 136 sectors, the importance of economic sectors and various categories of potential as portrayed in the NSDP are considered.
The specific discussion on economic development is based on the fundamental principles underlying GEAR and Asgisa, that acknowledge the developmental role of government in creating an enabling environment for shared growth and development and that economic growth will be generated by the private sector.
5.4. Economic Development, Employment, and Investment: Priorities and Implications
The first MDG explicitly targets the eradication of hunger and extreme poverty. The specific objectives linked to this MDG are to reduce by half the number of people living on less than one US dollar a day and to reduce by half the number of people who suffer from hunger. South Africa’s response through Vision 2014 to this MDG is articulated in the following goals:
• Reduce unemployment by half through new jobs, skills development, assistance to small businesses, opportunities for self-employment, and sustainable community livelihoods. • Provide the skills required by the economy, build capacity and provide resources across society to encourage self-employment with an education system geared to productive work, good citizenship, and a caring society. • Reduce poverty by half through economic development, comprehensive social security, land reform, and improved household and community assets.
In addition, Asgisa is intended at increasing economic growth beyond 6%. This section will consider the development trajectories, trade-offs, and barriers in respect of economic growth, employment creation, and poverty reduction. The basic principles of Porter’s Business Model will be used to consider trade-offs amongst economic sectors. 11 The model makes provision for in-depth focus on some aspects (core business), “nursing” other areas (they do not contribute extensively to business but are essential), and ignoring certain areas beyond the control of business (in case these sectors hold no risk).
5.4.1. Economic Growth: Development Trajectory and Trade-offs
As indicated, the Province’s economy has fared below average when compared to the country’s economy. This has been mainly due to a decline in employment in the mining and manufacturing sectors, with the proportional contribution in agriculture declining. It should also be noted that external global economic factors have been responsible for these declining trends (Marais, 2006).
However, the assessment has shown that, as the Province started to come to grips with the impact of a declining mining industry, a higher economic growth rate was obtained in 2003, 2004 and 2006 (1.67%, 2.6% and 4.2% respectively). It should also be recognised that some sectors have grown during the past two years (for example trade, financial services, and community services).
In respect of the primary economic sectors of agriculture and mining, the development trajectory reflects a decline. The development trajectory of each year from 1996 to 2004 is reflected in Figure 5.3.
11 Care should be taken to note that this is a business management model applied to economic development.
Page 92 of 136 10.0
5.0
0.0 1997 1998 1999 2000 2001 2002 2003 2004 -5.0
-10.0
-15.0
-20.0
Mining GVA Agriculture GVA Mining employment Agriculture employment Figure 5.3: Annual Growth Rates in Employment and Economic Growth (GVA), 1996-2004 source: Global Insight, 2006
In the case of mining, the development trajectory goes hand in hand with a decline in economic output including decline in employment. Although the gold price has risen sharply over the past 18 months and prospects of further exploration exist between Welkom and Bothaville, it is unlikely that the mining industry will ever again contribute more than its current contribution to GDP.
What also seems clear in terms of employment, the mining industries will never again absorb the percentages of labour that have historically been the case. The development trajectory of agriculture reflects a picture of limited economic growth over the period from 1996 to 2004. However, the labour-absorption capacity of agriculture compared to other sectors is still relatively high.
As far as sub-sectors within agriculture are concerned, it seems that maize and grain still make up a considerable percentage. Although some diversification has taken place lately (a move to apples, asparagus, and flowers), the sector is still dominated by maize and grain. The potential of dry-land agriculture remains limited. It should be acknowledged that the ability of agriculture to absorb low- skilled labour is higher than in the secondary and tertiary economic sectors.
Strategically, mining should be nursed for as long as possible. It should also be acknowledged that mining will continue to decline. Regarding agriculture, various strategies exist. However, considering the emphasis on high-value goods, specific support will be provided to programmes focusing on agricultural diversification. These include horticulture, floriculture as well as agri-business.
On a global scale, farmers have become increasingly diverse in their agricultural production. This means that traditional crops, such as maize and wheat, have become less important as a source of livelihood, whilst other farming practices, such as permanent crops, hydroponics, and organic farming have become more important and profitable. Diversification is thus important.
In terms of economic development at district and local levels, agricultural diversification is seen as a strategy for the farmer to cope with providing a livelihood: increasing profits through new products such as olives, organic farming, and essential oils; broadening the local export base; and creating additional employment opportunities. Agricultural diversification also has indirect spin-off effects on the secondary sector. Opportunities are now being created in the agro-industrial sector in terms of packaging and value-adding.
Viable agricultural crops, with clearly defined markets, thus need to be identified for available agricultural land and planning programmes initiated. As part of these
Page 93 of 136 strategies, new and innovative agricultural practices need to be considered. A specific effort should be made to ensure that this diversification process is also directed at farmers who benefit from the land-reform processes.
The following three sectors form part of the secondary sectors: manufacturing, electricity and water, and construction. The development trajectory in terms of GVA and employment creation of these sectors is provided in Figure 5.4.
20.00
10.00
0.00 1997 1998 1999 2000 2001 2002 2003 2004 -10.00
-20.00
-30.00
Manufacturing GVA Electricity GVA Construction GVA Manufacturing Employment Electricity Employment Construction Employment Figure 5.4: Development Trajectory of the Secondary Economic Sectors, 1996- 2004 source: Global Insight, 2006
Electricity and water is not a sector in which the Province has a competitive advantage. Construction does not create many employment opportunities, but is a sector in which government is a major player through initiatives such as public works programmes and housing subsidies. However, the private construction market is sensitive to the volatility in interest rates. The increase in construction GVA and employment is partly the result of the low interest rates.
With regard to the manufacturing sector, the trajectory shows a large-scale decline in employment, while the GVA has grown by 1.73%. What is evident from the analysis of agriculture is that there is a need to find new sectors within manufacturing to generate growth. The manufacturing of textiles, a dominant sub-sector in the Province, has been under pressure and it is unlikely that it will recover in any significant manner due to global pressure on this industry.
International trends suggest that emphasis should be on knowledge economy. The production of fast moving goods is unlikely to create either new jobs or increase economic output. The NSDP also stress innovation, experimentation, and the production of high-value goods. Considering the current contribution of petrochemicals, the availability of primary products in the mining and agricultural sectors creates possibilities within agri-business and value-adding.
With declining employment in the agricultural sector, workers leaving farms are more likely to be able to transfer their skills to value-added enterprises than to non-agriculture manufacturing and service industries. Creating value-added jobs that are linked to the international market or petro-chemicals can improve economic diversity, increase local incomes, capture higher profits locally, and use the local natural resource base more efficiently and sustainability.
The tertiary sector consists of the following sectors: trade, transport, finance, and community services. Figure 5.5 provides an overview of the development trajectories in respect of employment and GVA growth for these sectors.
Page 94 of 136 10.00
5.00
0.00 1997 1998 1999 2000 2001 2002 2003 2004 -5.00
-10.00
-15.00
Trade: GVA Transport: GVA Finance: GVA Community services: GVA Trade: Employent Transport:Employment Finance:Employment Community services:Employment figure 5.5: Development Trajectory of Tertiary Economic Sectors, 1996-2004 Source: Global Insight, 2006
Within the tertiary sector, two particular areas should be mentioned specifically: tourism, which is a national priority, and, certain specific services with regard to transport. The other sectors are all highly dependent on the overall economy.
With regard to Tourism, the development trajectory has shown that GVA remained constant between 1996 and 2004 while employment rose slightly. In normal tourism, a number of options exist. However, considering the importance of tourism, the following strategies should be prioritised:
• Events tourism, which should benefit the larger urban areas, but which could also have some positive impact on smaller urban areas should be enhanced. These include the securing of international sports events, arts festivals, conferencing, and other smaller events (Marais, 2004). In this regard, Bloemfontein (and also the rest of the Province) should prioritise preparations for the Soccer World Cup in 2010 and beyond. In some cases, the government should be directly involved (Macufe) while in others government should only play an enabling role. A more direct role providing the platform for the development of Lake Gariep is important. • Secondly, the weekend tourism market in the north and north-eastern of the Province should be prioritised through effective marketing, especially in Gauteng. • Thirdly, the quest for more international tourists should be supported by the development of the Vredefort Dome and the Maluti-Transfrontier Park. The latter also presupposes a more specific link with the Lesotho Highlands. Other options, such as route development, should not be neglected.
Table 5.1 provides an overview of the sectoral trade-offs suggested in the above discussions:
Sectors to nurse Sectors to grow Sectors that are important but in which government intervention seems to be limited Mining (due to its Manufacturing (emphasis on high-value goods/value Electricity and Water fairly high labour adding to Free State raw products) Agriculture Finance absorption) (emphasis on diversification and high value goods Trade (excluding tourism) Construction because of its high labour absorption) Tourism (within Community services trade – because of the national importance) Transport (in terms of services – because of the Free State’s location) Table 5.1 : Sectoral Trade-offs
SMMEs are recognised worldwide for their potential to generate job opportunities. As indicated in Chapter Two, there has been an extensive growth in SMMEs. A large number of SMMEs have been formed by previously
Page 95 of 136 disadvantaged individuals (PDIs).
However, a large percentage of these fail as they do not have the necessary skills and background. Asgisa also provides a framework to formalise businesses in the second economy into the mainstream economy. At the same time, BEE remains important in ensuring that more equitable access to the economy is possible.
In terms of the SMME sector, emphasis should be placed on emerging businesses with a specific focus on BBBEE. This also requires the following:
• The promotion and intensification of the sector-political dialogue between SMMEs and the government through capacity building. • The improvement of framework conditions and the creation of an enabling environment through advice to local economic development (LED) units and other relevant public institutions on the design of economic, legal, and institutional frameworks for the private sector. • The organisational development of SMME to enable them to improved competitiveness through enhanced lobbying capacity and professional competence. • The facilitation of access to business development services through the development of markets for services. • The support of horizontal and vertical cooperation between enterprises, specifically by using cluster and value chain approaches, including advice for building up links between several SMMEs and between SMMEs and large or international enterprises. • The promotion of export for the SMME sector through brokering of contacts with African and European importers and information about quality standards, market trends, and participation in trade fairs. • Management and business consulting at enterprise level through capacity building of local consultants and consultation with firms, including advice, to increase efficiency in all enterprise domains.
Experiences in promoting SMMEs have shown that an improvement in SMME competitiveness cannot be achieved solely on the level of the individual enterprise. What is needed is an approach through which interventions target different levels simultaneously: the macro level (stability oriented and enabling economic policy), the meso level (capacity building of private sector organisations, development of support strategies and policies for enterprises), and the micro level (enhancing enterprise performance and their horizontal and vertical integration into a network of links and subcontracting relationships).
Basic infrastructure provision has an impact on the socio-economic conditions of its local communities. The lack of infrastructure and basic services induces a risk-adverse environment. The efficiency of local government in terms of infrastructure provision influences business location and investment. Infrastructure includes access to land, buildings, road networks, and services such as electricity, water, waste-collection, and sewerage services. Infrastructure development is regarded as one of the most prominent methods of employment creation, due to the high level of labour intensity.
It is thus imperative that local spheres of government provide sufficient basic infrastructure and services to communities to improve their living conditions, and
Page 96 of 136 to create an attractive business and investment environment. Infrastructure development should be done in a labour-intensive way, creating employment opportunities for local communities, specifically women and the disabled.
The Emerging Contractor Development Programme (ECDP) was established in the Province to provide a database for all contractors, provide advice on procurement and administration, provide basic counselling, categorise contractors, and provide advice and referral services.
Specific emphasis is placed on the promotion of the PDIs, emergent contractors, and female contractors. An important piece of legislation is the Preferential Procurement Policy Framework Act (Act 5 of 2000), which governs the allocation of contracts to emergent contractors in support of BEE.
Labour-intensive infrastructure provision should take the form of public-private partnerships (PPPs). The unemployed would then gain income, marketable skills and confidence. Business would gain directly from contracts won in return for the use of labour-intensive techniques and indirectly from improved infrastructure and a better investment climate.
5.4.2. Reducing Unemployment
In conjunction with economic growth, the reduction of unemployment is seen as crucial, especially in poverty reduction. The post-apartheid economy has struggled to adjust to the competitive nature of the global economy. All sectors have struggled to create employment, but in the Province, the most jobs have been lost in the mining and manufacturing industries. However, job creation has materialised since 2004 and it is expected to grow in the future.
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 -5.0% -10.0% Unemployment rate (broad definition) Economic growth rate Unemployment (strict definition) Figure 5.6: The Relationship between Economic Growth and Unemployment, 1997-2004 Source: Statistics South Africa, 2005; Global Insight, 2006
The priority in respect of unemployment is to narrow the gap between unemployment and economic growth. Although the gap only started to narrow in the Province in 2004, national trends are already showing that a constantly high economic growth will start to narrow the gap. The same trade-offs in respect of economic growth are suggested in respect of employment creation.
5.4.3. Reducing Unemployment
The development trajectory in respect of reducing poverty in the Province has shown that the percentage of people living in poverty increased from 38.6% to 55.9% between 1996 and 2004. However, in 2004, there was a small decrease in the percentage of people living in poverty. This imply that a steady increase in economic growth play a role in reducing poverty levels. The trade-offs and
Page 97 of 136 priorities in respect of reducing poverty are the following:
• Ensuring economic growth in the private sector. • Providing social safety nets for the poor that should be done in terms of adequate social security, social services, and social safety nets in respect of infrastructure and the provision of housing.
5.4.4. Barriers to Economic Development, Reducing Unemployment and Poverty
The development trajectory of the Province’s economy shows more still needs to be done in ensuring growth, employment, and poverty reduction. The following barriers to economic growth and infrastructure have been identified and need urgent attention in order to foster economic growth:
• The lack of appropriate skills . The educational history of South Africa and the implications therefore are still felt heavily in the post-apartheid economy. Research by the PEAC has indicated the lack of skills to be a major barrier in the manufacturing industry. Furthermore, research by the FSYC has indicated that far too small a percentage of post-school learners are absorbed into the FET sector. Although South Africa and specifically the Free State probably require more engineers, a current gap in skills development exists at the technician level. In this regard, the revitalisation of the FET sector is pivotal. • The lack of appropriate skills can be further related to the low numbers of Grade Twelve learners passing with Physical Sciences, Mathematics, and Computer Science on the Higher Grade . These subjects are crucial in a global environment with more and more emphasis on the knowledge-based economy. • Minimal growth coalition (PPP for economic growth) exists to foster economic growth in the Province. These partnerships are used extensively in other parts of the world to turn around areas of economic distress. • Capital also seems to be a problem • Poor institutional arrangements in respect of business support. Research by the PEAC has indicated that by far the largest percentage of manufacturing industries do not know the types of national incentives that are available. • The negative environmental impact of the fuel and chemical industries in Metsimaholo. As it has implications for the further expansion of industry in the area, this aspect should be considered • Conditions of roads . Chapter Three provided an overview of the conditions. The chapter also indicated that some improvements have been made in the past two fiscal years. However, considering the fact that the Province is a peripheral to Gauteng, mobility and access to markets are crucial, especially for the agriculture and manufacturing sectors. Excellent road networks are even more important for tourism in the Province. This probably has the implication that the main roads, as well as the roads in the Fezile Dabi and Thabo Mofutsanyana districts, should receive some form of prioritisation. Rural roads are also crucial to the profitability of the agricultural sector. • Crime levels . Although levels of crime are lower than in the more pronouncedly urban Provinces, this issue have a bearing on economic development. • Lack of basic infrastructure and the maintenance of basic infrastructure. In business surveys, this is usually a major concern. Although basic infrastructure is normally available in the more affluent regions, the maintenance and provision of service in relation to this infrastructure is sometimes a barrier. As far as development of SMMEs is concerned, basic infrastructure remains fundamental to ensuring cost-efficient business. • Lack of appropriate R&D to foster the emphasis in the NSDP on innovation and
Page 98 of 136 experimentation. With regard to the emphasis on the knowledge-based economy, appropriate R&D is vital to the economic development of the Province. Not only should partnerships with local research institutions be fostered, but various national institutions also exist to assist in this regard. • The HIV and AIDS pandemic. The fact that the HIV and AIDS have decreased life expectancy places pressure on the available skills to support the economy. Higher levels of HIV and AIDS also require more frequent skills training. •
5.5. Social and Human Development: Priorities and Implications
The following development imperatives of the MDGs are about social and human development aspects.
• Achieve universal primary education. • promote gender equality and empower women • Reduce child mortality. • Improve maternal health. • Combat HIV and AIDS, malaria, and other diseases. • Ensure environmental sustainability.
Vision 2014 conceptualises the above in the following way:
• Ensure that all South Africans, including especially the poor and those at risk – children, the youth, women, the aged, and people with disabilities – are fully able to exercise their constitutional rights and enjoy the full dignity of freedom. • Deliver compassionate government service to the people; national, provincial, and local public representatives who are accessible; and citizens who know their rights and insist on fair treatment and efficient service.
The emphasis here is on the development trajectories, trade-offs, and barriers in respect of the human and social development priority area. Within this priority area, three sub-priority areas are analysed in greater detail, namely literacy and education, health and housing, and services.
5.5.1. Education
The functional literacy rate (measured as the percentage of the population of 15 years or older who have completed at least secondary education) was 64.7% in 1996 and rose to 65.3% in 2001 (see Chapter Three). Taking into consideration this improvement in basic primary education, a future scenario in respect of functional literacy was developed (see Figure 5.7).
This development trajectory considered the improvement between 1996 and 2001, the medium population growth scenario, as well as an improvement in the number of people who will obtain qualifications of Grade Seven and higher.
Furthermore, it was also taken into consideration that the largest percentages of people without functional literacy are older people who are more likely to pass away during the course of the timeframe of the scenario. It should be borne in mind that levels of school enrolment in the Province are currently high – an aspect which will improve the functional literacy significantly.
Page 99 of 136 Percentage
72.0 71.0 70.0 69.0 68.0 67.0 66.0 65.0 64.0 63.0 62.0 61.0
Figure 5.7: Development Trajectory in Respect of the Percentage of the Population (15 years and older) with Functional Literacy (at least Grade Seven), 1996-2014 Baseline information: Statistics South Africa, 1998 and 2003
Figure 5.7 suggests that it will be possible to have improved the levels of functional literacy significantly by 2014. However, functional literacy is influenced by a number of aspects. The following should be mentioned:
• The availability of school infrastructure . The assessment of the availability of school infrastructure showed that the overall provision of infrastructure is satisfactory. Access to (farm) schools is problematic mainly in the rural areas. • The availability of ABET . In the South African context, ABET programmes have played a crucial role. • The quality of education in respect of the basic aspects of primary education, namely reading, writing, and arithmetic, could also play a crucial role in primary education. • Functional literacy is also crucial in those areas not considered as areas with high economic potential.
Although the above aspects are all crucially important, access in farm schools is probably the most important structural aspect in relation to access to schools.
The main barrier in respect of functional literacy is probably poor socio-economic conditions which impact negatively on school attendance, with children being required to become economically active. One example is the probability that the HIV and AIDS pandemic will certainly result in more child-headed households, which will in turn impact negatively on children’s enrolment in education. The fact that a large percentage of learners are dependent on farm schools also makes access to basic education more difficult.
5.5.2. Education
One of the fundamental indicators for measuring development is life expectancy. Life expectancy is also influenced fundamentally by infant and child mortality, and HIV and AIDS. While the health status of a nation is determined by the availability of good health, more important aspects, such as basic services, behaviour, and poverty levels should also be considered.
The following development trajectory should be considered in respect of HIV and AIDS. It has been mapped without considering the possible impact of anti- retrovirals. According to this projection, the HIV and AIDS infection will increase from just over 15% in 2004 to about 18% by 2007. This percentage of HIV and AIDS infections will, however, start to decline to about 16% by 2010.
Page 100 of 136
Further analysis also suggests that life expectancy will decrease from 56 years in 2000 to 39 by 2010. However, it should also be noted that by 2031, it could again be 55 years. The percentage of HIV and AIDS- related deaths is expected to increase from 28.9% of all deaths to 68.6% of all deaths between 2000 and 2010. Also, the relationship between HIV and AIDS and TB should also not be ignored. There seems to be increasing evidence that, if the TB rate could be brought down, it would also have a significant influence on the decline of the HIV and AIDS infection rate.
35 30 25 20 15 10 5 0 1992 1996 2000 2004 2007 2010
HIV prevalence rate (antenatal) HIV prevalence rate (total population)
Figure 5.8: Provincial Trajectory of HIV and AIDS, 1992 - 2010 Source: Adopted from Pelser, 2006
With regards to child mortality and obstetrical mortality rate, a number of aspects need to be considered. These two mortalities are highly dependent on the availability of adequate primary and secondary health care facilities. But more importantly, they can neither be separated from the HIV and AIDS pandemic. The obstetrical maternal mortality rate was estimated at 199 per 100 000 live births in 1998 ( Day and Gray, 2005) . The indicator is currently estimated at 150 per 100 000 live births Child mortality in the Province was 72 children per 100 000 live births in 1998. By 2003 it was estimated to be 86.7 per 1000 births, while the 2005 information from the Department of Health is 76.7 per 1000 births (Department of Health, 2006) .
The development trajectory outlined above is dependent on a number of aspects. The following should specifically be mentioned:
• Access to quality primary health care. • The availability of anti-retrovirals will probably lead to a significant decline in HIV and AIDS-related deaths. • Access to a healthy living environment, for example access to water, adequate sanitation, and regular waste-removal services. • Access to adequate nutrition, which is mostly dependent on adequate income. • A basic awareness about HIV and AIDS.
The following barriers should be noted:
• The awareness programmes seem to have limited impact on people’s
Page 101 of 136 behaviour. • Although the availability of anti-retrovirals has increased during the past year or more, this remains largely insufficient and should go hand in hand with a massive educational programme on how to use the drugs. • Inadequate access to basic infrastructure remains a major barrier. • The inability to stock and provide an adequate service in respect of primary and secondary health services.
5.5.3. Shelter and Services
The developments in terms of shelter and basic service provision have been influenced by two aspects over the last number of years. The proportionally higher growth rate of households compared to the population has played a crucial role (see Chapter Two and Section 5.2.1).
Second, the backlogs have been influenced by the rate of delivery. In a few cases, the backlogs have actually increased due to the growth of households. The figure below projects the development trajectory for housing, water access, and sanitation provision.
25.0
20.0
15.0
10.0
5.0
2013 2014 0.0 2004 2005 2006 2007 2008 2009 2010 2012 2001 2002 2003 2011
High growth / Medium delivery High growth / High delivery High growth /Slow delivery Medium growth / Medium delivery Medium growth / High delivery Medium growth/Slow delivery Low growth / Medium delivery Low growth / High delivery Low growth /Slow delivery
Figure 5.9: Development Trajectory of Housing Growth and Delivery Scenarios, 2001-2014 Source: Adapted from the Statistics South Africa, 1998; 2003
The figure above provides an overview of scenarios in respect of household growth and housing delivery. The best scenario of low household growth and high delivery will result in about 2.5% of the households residing in informal settlements by 2014. The worst scenario of high household growth and slow delivery will result in about 11% of households residing in informal housing.
Figure 5.10 provides an overview in respect of the provision of basic services. This figure was developed in terms of both the medium population growth scenario and also rough estimates in respect of water and sanitation provision by
Page 102 of 136 means of MIG funds over the past four years. The electricity access development trajectory has been developed by taking into consideration the large increase in electricity provision between 1996 and 2001.
120
100
80
60
40
20
0 1996 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Number of households with buckets or no sanitation Number of households with water on stand Access to electricity Figure 5.10: Development Trajectories for Sanitation, Water, and Electricity Access, 1996-2004 Source: adopted from the Statistics South Africa, 1998; 2003
The table above suggests that, with regard to the adequate delivery assumed in the figure above, the number of people without water and an appropriate form of sanitation on their sites could potentially be halved by 2014. In respect of electricity, close to 100% of households could then have access to electricity.
The following trade-offs should be considered:
• The delivery of these services should be provided in such a way that the areas of need and potential determined receive adequate attention. • That specific attention is given to those households residing in informal settlements. • The maintenance of bulk and basic infrastructure should also be high on the agenda. Services should be continuously provided without ignoring long-term maintenance and considerations regarding the availability of resources.
A number of barriers exist in this regard and should be addressed institutionally:
• The lack of a multi-year spending pattern, especially in housing delivery, makes housing provision at the local level extremely difficult. • The unavailability of opened township registers at local municipalities hampers housing delivery. • The unavailability of adequate technical capacity to maintain and operate the technical aspects of housing, water, and sanitation provision are probably also impacting negatively on this environment.
5.5.4. Free Basic Services
The provision of free basic services is also a mechanism to assist households in extreme poverty. This arrangement will not only reduce the financial pressure of low-income households, but it will also have a positive impact on the health of poor households. The analysis in Chapter Three has indicated that:
• 92% of poor households are served with free basic water. • 79% of the population with infrastructure are served with free basic water. • All municipalities are providing free basic electricity.
Specific trade-offs to be considered in this regard are:
• Ensuring that the poor and not the affluent residents benefit from the system,
Page 103 of 136 but that there is also a horizontal equity built into the system. • Not only should consideration be given to the provision of free basic services, but attention should also be given to the technical maintenance of the available infrastructure. The following barriers are present in providing free basic services:
• The provision of free basic services renders local municipalities more and more dependent on the Equity Grant. It might lead to less effort being put in by local municipal administration to collect fees from those households not able to contribute financially to the services being received. • The provision of basic services and the provision of free basic services could also increase the pressure on the available natural resources.
5.6. Justice, Crime Prevention and Security: Priorities and Implications
The third priority area in the Province is about justice, crime prevention, and security. Vision 2014 specifically prioritises crime prevention as a key issue: “significantly reduce the number of serious and priority crimes as well as cases awaiting trial, with a society that actively challenges crime and corruption, and with programmes that also address the social roots of criminality.”
The analysis of crime statistics in Chapter Three showed that there had been a decline in violent crimes over the past number of years. The trends in respects of murder, stock theft, and carjacking are also showing considerable decline. Despite a decline in the overall crime levels, a total number of 159 000 criminal cases were opened in 2004.
However, crime statistics and their relation to development should be viewed with caution. Higher levels of development do not always lead to lower levels of crime. In fact, the opposite could well be true in the sense that higher levels of development could lead to higher levels of crime reporting.
Despite a decline in the reporting of violent crimes, the number of domestic crimes remains high. The following five types of crimes have the largest potential impact on economic growth: common robbery, robbery with aggravated circumstances, and burglary at business premises, shoplifting, and stock theft. At the same time, managing crime is also dependent on the justice system.
8000 7000 6000 5000 4000 3000 2000 1000 0 1994 1999 2000 2004
Murder Stock theft Carjacking
Figure 5.11: Crime Trajectory for Murder, Stock Theft, and Carjacking, 1994 -2004 Source: SAPS, 2004
Not only does crime impact negatively on the security system in the Province, but managing potential disasters also remains a huge challenge. Car accident deaths increased from 940 in 2003 to 1014 in 2005. Other disasters include all
Page 104 of 136 potential disasters from floods and chemical spillage to veld fires. Although the basic infrastructure is in most instances in place to address potential disasters, constant alertness is required in this regard.
In considering crime trade-offs, the following should be borne in mind:
• The types of crimes and their possible influence on future investment should be a fundamental consideration. • The spatial distribution of crime in the Province, and the spatial distribution of economic potential, should be taken into account. • Although reacting to crimes and also providing a service to victims of crimes are essential, consideration should however also be given to crime prevention. • Success in solving crimes is also closely related to the link with the criminal justice system. • Youth offenders should also receive special attention in respect of the justice system. • It should be ensured that the basic infrastructure is available to address potential disasters.
With regard to the above trade-offs and development trajectory, the following barriers are identified:
• The link between crime investigation and the criminal justice system remains an obstacle. • Rehabilitation, especially of youth offenders, is a major challenge.
5.7. Governance and Administration: Priorities and Implications
All of the above sectors depend on good governance. The MDGs, albeit in a global context, also emphasises effective governance. Appropriate decision making in the local and provincial spheres of government in relation to economic growth, poverty alleviation, human and social development, and crime prevention and justice, are all pivotal to a prosperous Province.
Twelve municipalities are currently under Project Consolidate. However, the functions performed under Project Consolidate will be mainstreamed under the national government’s five-year strategic plan and these municipalities should be seen as municipalities which receive specific support to promote their viability. In respect of unqualified audit reports, six provincial government departments and 1 municipality received such reports in 2005
When one considers all the challenges, especially at the local municipal level, it would seem as if financial management remains the biggest challenge. Although other aspects in the field of governance are important, it is suggested that priority should be given to ensuring effective financial management.
A number of barriers to good governance exist and should be mentioned:
• Alignment of IDPs, budgets and FSGDS still need to be further strengthened. • The quality of IDPs remains weak. • Asset and financial management remain serious obstacles. • Effective communication with stakeholders and clients remains a problem. • Ensuring effective human resource management is problematic. • Effective financial management and problems of corruption and ethical
Page 105 of 136 behaviour need to be addressed. • Effective monitoring and evaluation need to be ensured.
Page 106 of 136 Chapter Six Strategic Direction
6.1. Introduction
This Chapter sets out the vision, mission, value statements, development objectives, and strategies for the Free State. This strategic direction is outlined in respect of the priorities and implications discussed in Chapter Five.
6.2. Vision, Mission and Principles
The implementation of the FSGDS will be guided by the following vision, mission, and value statements.
Vision
“A unified prosperous Free State which fulfils the needs of all its people”
Mission
Serving the people of the Province by working effectively with our social partners through:
2. Economic growth, development, and employment. 3. Human and social development. 4. Justice and crime prevention. 5. Efficient governance and administration.
Basic Principles
• Apply the principles of sustainable development. • Acknowledge the ecological limitation of the environment. • Ensure alignment between all spheres of government. • Ensure integrated development planning and implementation. • Actively address economic and social inequalities. • Promote economic infrastructure investment and development spending in areas of potential and need according to the principles of the NSDP. • Acknowledge the importance of BEE, as well as the need to broaden access to the economy. • Promote labour intensive approaches to development.
6.3. Development Objectives
Regarding the vision, mission, and value statements, as well as the discussion of priorities and implications against the background of the MDGs and Vision 2014, the following objectives are set per priority area (see Table 6.1):
Page 107 of 136 Free State Development Priority area Vision 2014 MDGs Objective (by 2014) • An Economic Growth Rate of Economic • Reduce unemployment by half • Eradicate hunger 6%-7% per annum development, through new jobs, skills and extreme • To reduce unemployment from employment, development, assistance to small poverty 30.6% in 2005 % to 15% in and investment businesses, opportunities for self- 2014 12 employment, and sustainable • To reduce the number of community livelihoods households living in poverty by • Provide the skills required by the 5% per annum economy, build capacity, and • To provide adequate provide resources across the infrastructure for economic society to encourage self- growth and development employment with an education system geared towards productive work, good citizenship, and a caring society • Reduce poverty by half through economic development, comprehensive social security, land reform, and improved household and community assets • To improve the functional Human and • Ensure that all South Africans, • Achieve universal literacy rate from 65.3% to 85% social including the poor and those at primary education • To reduce the mortality of development risk - children, youth, women, the • Promote gender children under five years to aged, and people with disabilities equality and fewer than 65 per 1000 births – are fully able to exercise their empower women • To reduce the maternal constitutional rights and enjoy the • Reduce child mortality rate from 150 to 100 full dignity of freedom mortality per 100 000 live births • Compassionate government • Improve maternal • To stabilise the prevalence rate service to the people; national, health of HIV and AIDS and reverse provincial, and local public • Combat HIV and the incidence thereof representatives who are AIDS, malaria • To provide shelter for all in the accessible; and citizens who know and other Province their rights and insist on fair diseases • To reduce the number of treatment and efficient service • Ensure households living in poverty by • Reduce poverty by half through environmental 5% economic development, sustainability • To provide free basic services comprehensive social security, to all households land reform, and improved household and community assets • To eliminate qualified auditing Governance • Ensure that all South Africans, • Develop a global reports for provincial and including the poor and those at partnership for departments by 2009 and for administration risk - children, youth, women, the development municipalities by 2011 aged, and people with disabilities • To eliminate the municipalities – are fully able to exercise their under extraordinary support constitutional rights and enjoy the from provincial or national full dignity of freedom government (Project • Compassionate government Consolidate) by 2010 service to the people; national, provincial, and local public representatives who are accessible; and citizens who know their rights and insist on fair treatment and efficient service • Position South Africa strategically as an effective force in global relations, with vibrant and balanced trade and other relations with countries of the South and the North, and in an Africa that is growing, prospering, and benefiting all Africans, especially the poor. • To reduce the crime rate by at Justice, crime • Compassionate government least 7% per annum prevention, and service to the people; national, security provincial, and local public representatives who are accessible; and citizens who know their rights and insist on fair treatment and efficient service.
12 According to the narrow definition
Page 108 of 136 • Significantly reduce the number of serious and priority crimes as well as cases awaiting trial, with a society that actively challenges crime and corruption, and with programmes that also address the social roots of criminality Table 6.1: Provincial Development Objectives Overview
The strategic approaches in respect of each objective, as regards the discussion of priorities and implications are outlined below in more detail. These strategic options are derived from the analyses in Chapters Two, Three, and Four (which included an analysis of the strategic priorities in IDPs), as well as from Chapter Five:
• Aspects from the development trajectory. • The discussion of the trade-offs. • An analysis of possible barriers.
6.4. Strategies: Economic Development, Employment, and Investment
The following key objectives are set for economic development:
• To achieve an economic growth rate of 6%-7% per annum. • To reduce unemployment from 30% to 15%. • To reduce the number of households living in poverty by 5% per annum. • To provide adequate infrastructure for economic growth and development.
Regarding the above objectives and the discussion of development trajectories, trade-offs, and barriers, the key strategic approaches towards the economy are divided into economic driving and economic enabling strategies. The key economic drivers are:
• Expanding the manufacturing sector in key sub-sectors. • Focusing on diversification in agricultural development. • Developing tourism. • Developing and expanding the transport and distribution industry.
To enhance these drivers, the following enabling strategies are followed:
• Emphasising SMME development. • Providing economic infrastructure. • Promoting human resource development. • Creating an enabling environment.
6.4.1. Expanding Manufacturing
The emphasis in this sector is on supporting high-value goods such as petro- chemicals (including bio-fuels) and jewellery. Extensive experimentation and innovative partnerships is to be created with research institutions. Further emphasis is on supporting initiatives in respect of the manufacturing of machinery (especially for the agriculture sector), and supporting initiatives in respect of leather tanning and finishing, and agri-business.
Page 109 of 136 6.4.2. Diversifying Agricultural Development
The agricultural strategy is based on two legs: diversification of agricultural (emphasis on high-value crops) activities and the beneficiation of agricultural products (agri-business as outlined under manufacturing).
6.4.3. Emphasis on Tourism
The emphasis in respect of tourism is to optimise its benefits. More specifically, the weekend tourism market for the north and north-eastern parts of the Province should be explicitly marketed. Emphasis will fall on nature tourism and heritage tourism to ensure that the Maluti-Transfrontier Park and the Vredefort Dome are prioritised and marketed. Events tourism should be focused on in the larger urban areas of Bloemfontein and Welkom.
6.4.4. Expanding Transport Services
In view of the fact that a number of national roads cross the Province, emphasis is placed on the facilitation of transport services and logistic hubs.
6.4.5. Providing Adequate Economic Infrastructure Development
Settlements and municipalities identified in Chapter Four as areas of high economic potential have to be prioritised for economic infrastructure. Attention should also be on road infrastructure as the Province is highly dependent on transport.
6.4.6. SMMEs Development
An extensive service for SMME development will be established. The focus with regard to SMME development will be on the following aspects:
• Public sector procurement. • Business development service that focus on making markets work. • Developing networks. • Basic infrastructure provision. • Technology transfer.
SMME support will be provided over various sectors, including support to farmers as part of the land-reform programmes.
6.4.7. Promoting Human Resource Development for Economic Growth
Providing the skills for a growing economy will be done by means of the following:
• Learnerships. • Providing skills through the FET sector. • Internships.
Although these programmes will be delivered over a range of economic sectors, emphasis will be placed on the four economic sectors identified as drivers.
Page 110 of 136
6.4.8. Enabling Environment
In addition to the three enablers already mentioned, a broader enabling environment will be created specifically to foster economic development.
6.5. Strategies: Human and Social Development
The main objectives set for this priority area are:
• To improve the functional literacy rate from 65.3% to 85%. • To reduce mortality of children under five years to less than 65 per 1000 births. • To reduce the maternal mortality rate from 150 to 100 per 100 000 live births. • To stabilise the prevalence rate of HIV and AIDS and reverse the incidence thereof. • To provide shelter for all in the Province. • To provide free basic services to all households. • To reduce the number of households living in poverty by 5% per annum.
The following main strategies within the human and social development priority area are to be implemented in order to achieve the above objectives:
• Improving housing and basic services. • Improving health care services. • Improving education and educational services. • Improving social development services. • Improving cultural, sports, and recreational services.
6.5.1. Improving Basic Services and Housing
Overall, basic services and housing will be provided to ensure a sustainable environment, better health, and a foundation for economic activity. Although the focus will be on addressing the existing backlogs, specific attention will be given to informal settlements. In addition to the capital expenditure, systems for the provision of free basic services should also be developed.
6.5.2. Improving Healthcare Services and Combating Diseases
The focus will be on improving primary health care, ensuring adequate health infrastructure and, specifically, on making available anti-retrovirals.
6.5.3. Improving education Services
The emphasis in this regard will be on improving the quality of education, access to educational facilities, and ABET programmes, and on ensuring the development of an adequate educational infrastructure to address the needs of a knowledge-based global economy.
6.5.4. Enhancing Provision of Basic Safety Net
Although economic growth is envisaged as the main vehicle for addressing the problems of unemployment and poverty, it is also recognised that the really destitute have to be looked after in terms of social security.
Programmes in respect of social security can be divided into three sub-groups:
Page 111 of 136 providing social grants to those who meet the criteria; providing social services to the aged, disabled, children, youth, and women; and providing a framework for community development and moral regeneration.
6.5.5. Improving Cultural, Sport and Recreational Services
Improving cultural, sports, and recreational activities are set as a strategic directive in order to create an environment for healthier and better-educated individuals.
6.6. Strategies: Justice, Crime Prevention, and Security
The objectives of this priority area are:
• To reduce the crime rate by at least 7% per annum. • To reduce the number of road accident deaths by 3% per annum.
Strategically, justice, crime prevention, and security require a focus on the improvement of the integrated criminal justice system, an improvement in the efficiency of the police, and effective disaster-prevention programmes.
In order to achieve the above objective and strategic direction, the main strategies in respect of justice, crime prevention, and security are:
• To facilitate and improve an effective integrated criminal justice system. • To ensure an effective and efficient police service in the Province. • To establish an effective disaster prevention and response capacity for disasters throughout the Province. • To improve traffic policing and road incident management in the Province. • To ensure a safe and secure environment at all institutions.
6.7. Strategies: Governance and Administration
The main objectives set for this priority area are:
• To eliminate qualified auditing reports for provincial departments by 2009 and for municipalities by 2011. • To have turned around the 12 municipalities which receive extraordinary provincial and national support by 2010.
To achieve the two objectives above, the following strategies are to be followed:
• Improve IDPs and IDP implementation. • Ensure effective communication with stakeholders and clients. • Ensure effective Human Resource Development and Management. • Ensure improvement in financial management. • Promote integrity in government. • Establish proper management information and efficient record-management systems. • Build government’s capacity in critical areas. • Ensure a healthy environment through integrated environmental management. • Monitor, evaluate, and review the FSGDS.
Page 112 of 136 Chapter Seven Implementation Framework
In this Chapter, the specific strategies and programmes to address and achieve the development objectives identified in the FSGDS are outlined.
7.1. Economic Development, Employment, and Investment: Strategies and Programmes
This Chapter is outlined in terms of the two basic points of departure. First, the four economic drivers are presented together with the various programmes. Second, the enabling strategies and their programmes are listed.
Strategy Programme Spatial focus Comments A1. Expanding • Beneficiation of Fezile Dabi, Thabo The emphasis should be on the agricultural products Mofutsanyana creating an enabling environment, manufacturing building partnerships with the sector in key private sector, and facilitating sub sectors - Bio-diesel Lejweleputswa, Fezile funding and information (see also Dabi, Thabo spatial referencing for mass- Mofutsanyana produced and high-value goods) - Cherries Setsoto, Dihlabeng
- Asparagus Dihlabeng, Setsoto, Maluti-a-Phofung - Meat No specific spatial focus
- Maize / Wheat Lejweleputswa, Fezile Dabi, Thabo Mofutsanyana - Potatoes Fezile Dabi, Lejweleputswa • Beneficiation of Metsimaholo (Sasolburg) The spatial focus has been petrochemicals emphasised in Chapter 4. Also evident from the Metsimaholo IDP • Beneficiation of mining Matjhabeng (Welkom, The spatial focus was emphasised products Virginia) in Chapter 4. Also evident from Lejweleputswa and Matjhabeng IDPs • Facilitate expansion of other manufacturing
• High-value products as Mangaung Spatial focus has been concluded well as innovation and (Bloemfontein); from Chapter 4 – those areas with experimentation Matjhabeng (Welkom); high or above-average potential for Metsimaholo (Sasolburg) high-value products • Mass-produced goods Mangaung Spatial focus has been concluded (Bloemfontein); from Chapter 4 –those areas with Masilonyana high or above-average potential for (Theunissen); Nala high-value products (Bothaville, Wesselsbron); Dihlabeng (Bethlehem); Maluti-a-Phofung (Harrismith); Setsoto (Senekal); Matjhabeng (Welkom, Virginia, Odendaalsrus); Moqhaka (Kroonstad, Viljoenskroon); Ngwathe (Heilbron) A2. Focusing • Diversify agricultural Nala, Dihlabeng, Setsoto, Areas have been determined by on products Mantsopa, and Moqhaka considering the five municipalities diversification in with the highest agricultural GVA agricultural per area (the emphasis should development again be on enabling the agricultural sector in this regard).
Page 113 of 136 • Introduce high-value Nala, Dihlabeng, Setsoto, Areas have been determined by crops Mantsopa, and Moqhaka considering the five municipalities with the highest agricultural GVA per area (the emphasis should again be on enabling the agricultural sector in this regard). A3. Developing • Develop tourism - tourism strategy
• Improve tourism - marketing and business support • Develop tourism support - structures • Develop and increase Vredefort Dome, Lake These areas are linked to their tourism products Gariep, Maluti- potential in respect of heritage, Tansfrontier Park. weekend, scenic, business, and Weekend tourism in events tourism Parys, Sasolburg, and Clarens areas. Business and events tourism in Bloemfontein, Welkom • Promote all forms of - tourism A4. Develop • Develop transport Along the N1 and N3 These hubs are directly linked to and expand distribution hubs the N1 and N3 that run through the transport and Province distribution industry B1. Facilitate • Expand online learner - and ensure technology enabling and • Expand utilisation of - economic iCAM infrastructure • Facilitate advanced ICT Mangaung Spatial reference made from infrastructure (Bloemfontein), Chapter 4 (innovation and Matjhabeng (Welkom), experimentation as well as Metsimaholo tourism areas) (Sasolburg), Ngwathe (Parys), Dihlabeng (Clarens) • Facilitate improved air Bloemfontein The emphasis in this regard is on transport access to the cheaper air transport Free State • Upgrade and maintain Roads in Thabo Emphasis on areas of mass road infrastructure Mofutsanyana, Fezile production and tourism potential Dabi, and Lejweleputswa and routes to Mangaung – especially the tourist routes • Supply bulk water and Mangaung Emphasis on the areas with electricity infrastructure (Bloemfontein), potential for high-value goods Matjhabeng (Welkom), Metsimaholo (Sasolburg) B2. • Facilitate and improve - Emphasising access to funding SMME sources development • Provide formal and Emphasis on areas of This spatial focus is in line with the
informal training for high or above- average spatial imperatives in the NSDP SMMEs need • Establish local - business-support infrastructure • Develop institutional - capacity for SMME development • Maintain central - business-support infrastructure (including a business database)
Page 114 of 136 B3. Promoting • Implement learnerships - Emphasis should be on the human learnerships in respect of the resource economic drivers development • Implement internships - (emphasis on human
resource skills • Formal and informal required training in agriculture, manufacturing, and regarding economic tourism (Support small- growth – scale farmers) Agriculture, • Support to beneficiaries - Manufacturing, of land redistribution Tourism, and and restitution Transport and programmes Distribution • Support farmers in - services). Comprehensive Agriculture Support Programme • Non-formal training for - farmers in agriculture management • Repositioning of the - The emphasis should be on FET to support providing technical skills to support economic drivers the economic drivers B4. Create • Develop enabling - conducive strategies (LED environment strategies, investment promotion strategies) • Establish and develop Mangaung, Metsimaholo, Linked to those urban areas/ zones and corridors as Welkom municipalities with high well as urban development potential development nodes • Facilitate completion of - land restitution programme
• Buy land for the -. establishment of PDI farmers • Transform government’s - property ownership (BBBEE) • Secure land tenure - rights in the Free State • Ensure designated - Linked to SMME development – funding and outsourcing maintenance of government property • Upgrade and maintain - Linked to SMME development – all government buildings outsourcing
7.2. Human and Social Development: Strategies and Programmes
Five main strategies are suggested in respect of human and social development. These strategies, their associated programmes, and spatial focus are outlined below. The spatial focus requires departments to prioritise these areas. However, this does not mean that no delivery should take place in areas not indicated as priority areas.
Strategy Programme Spatial focus Comments • Improving • Provide Housing Mangaung, Matjhabeng, See Chapter Three. The five housing and Nala, Setsoto, municipalities with highest basic services need were prioritised (60% of informal housing units in the Free State are located in these municipalities)
Page 115 of 136 • Provide sanitation Mangaung, Matjhabeng, See Chapter Three. The five Nala, Setsoto municipalities with highest need were prioritised (50% of buckets in the Free State are located in these municipalities) • Eradicate bucket Mangaung, Matjhabeng, See Chapter Three. The five system Nala, Setsoto municipalities with highest need were prioritised (50% of buckets in the Free State are located in these municipalities) • Provide water Mangaung, Matjhabeng, See Chapter Three. The four Maluti-a-Phofung, Setsoto municipalities with highest need were prioritised (71% of all water need is located in these municipalities) • Provide electricity Maluti-a-Phofung, See Chapter Three. The four Matjhabeng, Mangaung, municipalities with highest Dihlabeng need were prioritised (60% of all electricity need is located in these municipalities). • Provide cemeteries -
• Provide solid-waste - disposal sites • Provide storm-water - drainage • Improving health- • Provide health Thabo Mofutsanyana See Chapter Three. Largest care services infrastructure utilisation ratio • Upgrade health - infrastructure • Implement and monitor Motheo, Lejweleputswa, See Chapter Three. Highest comprehensive plan on Thabo Mofutsanyana prevalence rates care, treatment, and management of HIV and AIDS • Implement the national - TB strategy • Improve the - immunisation coverage of children • Implement HIV and Motheo, Lejweleputswa, See Chapter Three. Highest AIDS prevention and Thabo Mofutsanyana prevalence rates support programme • Provide an integrated Motheo, Lejweleputswa, See Chapter Three. Highest service to people Thabo Mofutsanyana prevalence rates affected and infected by HIV and AIDS • Implement integrated - management of Childhood Illnesses Strategy • Expand free health - services • Implement and monitor - continuous quality improvement programme • Improve access to Thabo Mofutsanyana Largest % of people in rural health care for people areas in rural areas • Improving • Implement adult literacy Mangaung, Mantsopa, Municipalities identified as education and and numeracy Moqhaka, Matjhabeng, areas with high need educational programmes Maluti-a-Phofung, Setsoto,
Page 116 of 136 services and • Provide ABET in Mangaung, Mantsopa, Municipalities identified as skills accordance with the Moqhaka, Matjhabeng, areas with high need ABET Act Maluti-a-Phofung, Setsoto, • Implement skills Mangaung, Mantsopa, Municipalities identified as development Moqhaka, Matjhabeng, areas with high need programmes Maluti-a-Phofung, and Setsoto • Capacity building of - clients incorporated in service delivery
• Implement learnership - Also see economic programmes development cluster
• Address critical gaps in - Include infrastructure and • identified areas staffing (emphasis on mathematics, science, and technology) • Implement GETC -
• Implement FET - Certificate • Implement ECD Mangaung, Mantsopa, Municipalities identified as Programmes Moqhaka, Matjhabeng, areas with high need Maluti-a-Phofung, Setsoto, • Provide education Fezile Dabi, Motheo, and See Chapter Three. Stress on infrastructure Lejweleputswa available educational infrastructure • Upgrade, rehabilitate, Fezile Dabi, Motheo, and See Chapter Three. Stress on and renovate education Lejweleputswa available educational infrastructure and infrastructure facilities • Eliminate backlog in - basic services in schools • Provide transport to Rural areas learners at farm schools • Provide accommodation Rural areas for learners from non- viable farm schools • Implement school Mangaung, Mantsopa, Municipalities identified as nutrition programmes Moqhaka, Matjhabeng, areas with high need Maluti-a-Phofung, Setsoto, • Improving social- • Expand social Although this service See Chapter Four for areas development assistance programme depends on people with high need services qualifying for the grants, the service to ensure that everybody has access to these services should be improved in areas with high need • Provide emergency food security to needy families and individuals • Provide pay-point - facilities
• Increase access to All municipalities commonage
• Implement community- Municipalities with high See Chapter Four development projects need and above-average need
Page 117 of 136 • Implement training Municipalities with high See Chapter Four programmes to support need and above-average care and protection of need the vulnerable • Provide early-childhood Municipalities with high See Chapter Four development services need and above-average need • Implement programmes Municipalities with high See Chapter Four targeting the need and above-average unemployed and out-of- need school youth • Promote social Municipalities with high See Chapter Four integration and need and above-average empowerment of people need with disabilities • Promote special - programmes for the vulnerable in government • Implement the moral - regeneration programmes for the community • Implement moral - regeneration programmes within government • Implement income- Municipalities with high See Chapter Four generating projects for need and above-average youth, women, and need persons with disabilities • Improving • Provide arts and culture - cultural, sport, centres and recreational services • Provide other - government accommodation/ buildings • Provide library - infrastructure • Provide sport facilities - • Provide multi-purpose - centres • Provide library and - information services • Provide special services - • Promote major cultural - events • Provide museum and - heritage services
• Build capacity in visual - and performing arts
• Facilitate mass - participation in sport and recreation activities • Render sports science, - exercise rehabilitation, and sports development services
7.3. Justice, Crime Prevention, and Security
Six main strategies are embarked on to address aspects of justice, crime prevention, and security. These strategies, their associated programmes, and
Page 118 of 136 spatial focus are outlined below. The spatial focus requires departments to prioritise these areas. However, this does not mean that no delivery should take place in areas not indicated as priority areas.
Strategy Programme Spatial focus Comments D1. Facilitate an • Coordinate an - improved and Integrated Criminal effective integrated Justice System criminal justice • Victim empowerment Mangaung, Matjhabeng Nearly 50% of all system criminal cases are reported in these two municipalities • Service programmes for Mangaung, Matjhabeng Nearly 50% of all children in conflict with criminal cases are the law reported in these two municipalities • Reduce time to finalise - cases in court • Increase in cases - referred to courts • Develop and implement Check crime prevention integrated crime- programmes prevention programmes D2. Ensure effective • Effective visible police The main tourism areas as Nearly 50% of all and efficient police service well as Mangaung, criminal cases are service Matjhabeng reported to reported in these two have high crime rates municipalities • Encourage community Areas with highest crime participation rate • Promote accessibility to The main tourism areas as Nearly 50% of all police services. well as Mangaung, criminal cases are Matjhabeng reported to reported in these two have high crime rates municipalities • Enhance service Thabo Mofutsanyana According to client delivery and Tourism areas satisfaction statistics, transformation the north-eastern Free State has the lowest client satisfaction • Maintain rural safety Lesotho border area • Combat corruption in - SAPS D3. Establish an effective • Coordinate integrated Fezile Dabi, Thabo Districts with the disaster prevention and disaster-management Mofutsanyana, highest potential for response capacity for services. Lejweleputswa disasters disasters throughout • Minimise the impact of Thabo Mofutsanyana – veld See Chapter 3 for the Province disasters. fires analysis N3 and N1 road accidents Sasolburg – chemical disasters • Implement integrated - disaster-management strategy D4. Improve traffic • Provide effective N1/N3/N8/N6/N5 Main routes as well as policing and road emergency Metsimaholo in Metsimaholo incident management in communication the Province • Implement road-traffic N1/N3/N8/N6/N5 regulations • Implement effective N1/N3/N8/N6/N5 emergency services D5. Implement a • Provide medical rescue, - Provincial EMS Plan pre- and inter-hospital EMSs
D6. Ensure a safe and • Implement safety Fezile Dabi, Lejweleputswa, According to secure environment at programmes at all Xhariep Departmental priority all institutions institutions areas
Page 119 of 136 7.4. Governance and Administration
Ten main strategies are explored to address aspects of governance and administration. These strategies, their associated programmes, and spatial focus are outlined below. The spatial focus requires departments to prioritise these areas. However, this does not mean that no delivery should take place in areas not indicated as priority areas.
Strategy Programme Spatial focus Comments E1. Improving integrated • Align and co-ordinate IDPs and FSGDS - development planning • Improve a cluster system across the two - and implementation spheres of government in the Province
• Ensure effective implementation of - intergovernmental relations • Coordinate strategic programmes (EPWP, - ISRDP, Project Consolidate)
• Promote the involvement of traditional - leadership
• Coordinate PPPs - • Implement the National and Provincial PoA -
• Implement Community-Based Ward - Planning through Ward Committees
E2. Ensuring effective • Improve interaction between government - communication with and the people stakeholders and clients • Implement one-stop government services -
• Implement e-governance -
E3. Ensuring effective • Implement an integrated human resource - Human Resource development strategy Development and • Implement employment equity plan - Management • Implement retention strategy - • Implement employee assistance - programme • Coordinate bursaries and Learner Support - Programme E4. Ensuring improvement • Improve and coordinate revenue measures Those in financial management and mechanisms municipalities under Project Consolidate • Strengthen financial management capacity Those in departments municipalities under Project Consolidate • Implement credit control systems Those municipalities under Project Consolidate E5. Promoting integrity in • Implement anti-corruption and fraud - government strategy • Promote ethical behaviour (Code of - Conduct) in government E6. Establishing proper • Improve record management services in - management information departments and records management • Secure information within departments - systems E7. Improve asset • Improve control over assets and resources - management
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E8. Building government’s • Improve financial management capacity Municipalities capacity in critical areas under Project Consolidate • Improve the monitoring of training for - strategic planning and the capacity to evaluate it • Develop information technology skills -
• Enhance Batho Pele skills -
• Provide capacity-building programme for all Municipalities staff under Project Consolidate E9. Ensuring a healthy • Implement integrated environmental Metsimaholo environment through management Eastern Free integrated environmental State management (Mountains) • Coordinate integrated environmental - management E10. Monitoring, • Implement FSGDS Monitoring and - evaluating and reviewing Evaluation systems FSGDS
Page 121 of 136 Chapter Eight Implementation Arrangements
This chapter outlines the institutional and implementation arrangements, and monitoring and evaluation of the FSGDS in terms of the following:
• Institutional arrangements: The institutional arrangements set out the relationship between the various governance and administrative structures within which the management of the FSGDS takes place. • Implementation, resource allocation, and budgeting: This outlines the processes of implementation and finance. • Monitoring and evaluation: The implementation of the different programmes is monitored through the e-Monitoring and Evaluation system. The system is applied throughout the province – from the provincial level to the local municipalities .
8.1. INSTITUTIONAL ARRANGEMENTS
Figure 8.1 provides a schematic overview of the institutional arrangements between the various structures within the FSPG. This section will sketch the relationship between the various institutions.
PREMIER
Premier’s EXCO Legislature Coordinating PEAC Forum (PCF)
Economic, Employment EXCO Policy Unit and investment CLUSTERS (secretariat)
Social and Human Development FoHoD / TECH FoHoD PCF CLUSTERS Justice, Crime Prevention and security
District and local municipal clusters Governance and Administration
Figure 8.1: Institutional Arrangements for Managing the FSGDS The Premier
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The Premier is the custodian of the FSGDS. The function to operationalise the FSGDS is located in the Department of the Premier. Headed by the Premier, the FSPG operates through the political and technical structures. These structures play a critical role in ensuring that the FSGDS is implemented in an integrated and coordinated fashion.
The Policy Unit
The implementation of the FSGDS is driven by this Department through the Policy Unit. The unit facilitates the formulation of integrated and strategic policies for the Province. It also ensures that the clusters are in place and function effectively.
The EXCO
The EXCO is the political decision-making body of the Province. It consists of all the MECs and is chaired by the Premier. The Director-General of the Province is the Secretary of EXCO.
The Premier’s Coordinating Forum (PCF)
The PCF is a statutory body established in terms of the Intergovernmental Relations Act. Its role is to coordinate intergovernmental relations between the Province and the municipalities. It is made up of all the Executive Mayors and Mayors of the twenty-five municipalities in the Province, the Chairperson of the South African Local Government Association (SALGA) Free State, the permanent Provincial Representative of National Council of Provinces, the Chairperson of the Standing Committee on Local Government, the MEC of Local Government and Housing (other MECs are also members of the PCF), and the Chairperson of the Free State House of Traditional Leaders. The PCF is chaired by the Premier.
Technical PCF
The Technical PCF consists of all Heads of Department, twenty-five Municipal Managers from all the municipalities in the Province, and the Deputy Chief Executive Officer of SALGA in the Free State. The role of the Technical PCF is to determine the agenda for the political PCF. The agenda is informed by issues emerging from the IDPs, the Strategic Plans of various government departments, the FSGDS, and the PoA. The Technical PCF is also entrusted with the responsibility of implementing the resolutions of the Political PCF.
FoHoD
The Forum of all Head of Provincial Government Departments (FoHoD) is chaired by the Director General. FoHoD plays a number of roles, central to which are to provide the strategic direction for the provincial government, to serve as a forum at which issues coming from the technical cluster are discussed before they are submitted to the Political Cluster, to enhance public service delivery, to promote corporate governance, to enhance coordination and integration, as well as to provide advice and support to EXCO.
FoHoD further ensures that mandated inputs to and reporting from the
Page 123 of 136 meetings between the Ministers and MECs (MINMECs), National Head of Departments’ meetings, and other national meetings for corporate matters are made. FoHoD takes administrative decisions that are ratified by EXCO.
Understanding the role of clusters
As stated earlier, the Free State Provincial Government operates through a cluster system, which is based on the four priority areas of the FSGDS. These are the Economic, Employment, and Investment Cluster; the Social and Human Development Cluster; the Justice, Crime Prevention, and Security Cluster; and the Governance and Administration Cluster. Although they differ according to their function, the provincial clusters are the same as those that have been set up at the national level.
The provincial clusters concentrate on the coordination, integration, and implementation of programmes. All the chairpersons of the clusters meet once every two months to brief the Premier on progress made on the implementation of the FSGDS and the PoA.
The role of clusters is to improve alignment and coordination for better service delivery. In the context of the FSGDS, the clusters play the following roles
• They coordinate the implementation of strategies aimed at achieving the strategic objectives of the FSGDS. • They coordinate the implementation of programmes emanating from the FSGDS, and the provincial and national PoA.
The table below shows priority areas per cluster and the relevant government departments.
EXCO clusters
The Province has two forms of clusters, namely the Executive Council (EXCO) Clusters and the Forum of Heads of Department (FoHoD) Clusters. The EXCO Clusters are political clusters responsible for the coordination and implementation of the four priority areas. They serve as the sub-committees of the EXCO. The membership of the EXCO Clusters comprises MECs, the Chairperson of FoHoD (Director General), and the Head of the Policy Unit. The Premier also attends the EXCO Cluster meetings when available. The decisions taken in these clusters are forwarded to EXCO for endorsement.
FoHoD Clusters
The FoHoD Clusters are composed of all Heads of Department, representatives of all national departments based in the Province (e.g. Dept. of Home Affairs) and State-owned enterprises. The participation of Social Partners in these clusters is issue-based and further ensures that programmes of Social Partners are in line with the provincial programmes. Social Partners only participate through project task teams. One of the responsibilities of FoHoD clusters is to discuss and debate issues before they are submitted to the EXCO Clusters and to advise the EXCO.
Page 124 of 136 Clusters at municipal level
The cluster system at district and local municipality levels operates through the Section 79 and 80 Committees, which are established in accordance with the Municipal Structures Act 117 of 1998 (as amended).
The PEAC
The PEAC is an advisory body to the Premier. It consists of a core of ten economic experts and is accountable to the Premier. The overall responsibility of the PEAC is to generate innovative ideas on sustainable, people-centred development and to initiate research-based advice to the Premier. This is done within the context of the FSGDS, the Provincial Spatial Development Framework, and Asgisa. The Economic, Employment, and Investment Cluster attend some of the PEAC meetings by invitation.
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Clusters Priority Areas Departments Economic, • Investment promotion • Tourism Economic and Employment, and • MIG & LED implementation Environmental Affairs Investment Cluster • Developing key sectors of the (DTEEA) economy such as manufacturing and • Public Works construction. • Agriculture • Tourism promotion • Finance • Agro-processing • Sports, Arts, and Culture • Investment in public infrastructure • Premier (Policy Unit) • SMME development & support • EPWP • Spatial Development Initiatives Social and Human • Poverty alleviation programmes • Education (chair) Development Cluster • Provision of basic services • Local Government and • Community development support Housing • HIV & AIDS prevention and support • Health • Provision of housing • Social Development • Expanded Public Works Programme • Sports, Arts, and Culture (EPWP): Social Sector • Safety and Security • Access to formal education • Premier (Policy Unit) Governance and • Integrated Development Planning • Agriculture (chair) Administration Cluster • Project Consolidate • Premier • Communication with stakeholders and • Education clients • Sports, Arts, and Culture • Batho Pele principles • Local Government and • Intergovernmental relations Housing • Anti-corruption and fraud • Treasury • Integrated human development • DTEEA • Information management Justice, Crime • Integrated criminal justice system • Treasury (chair) Prevention, and • Service Charter for victims of crime • Safety and Security Security Cluster • Victim support programmes • Social Development • Border control and security • Public Works • Visible police services • Education • Rural safety prevention • Health • Effective disaster management • Local Government and • Social crime prevention Housing • Road incident management • Premier (Policy Unit) Table 8.1: Composition of and Priority Areas of the Four Clusters
8.2. Implementation, Resource Allocation and Budgeting
The strategy is resourced through existing departmental and municipal budget processes. Care must be taken to ensure prioritisation of the FSGDS in the strategic and operational planning as well as in the appropriate prioritisation of areas within the budget.
On an annual basis, departments must identify their contributions for the FSGDS and the Programme of Action (POA). Every year, the Province compiles the PoA, based on the State of the Province Address, which is informed by the State of the Nation Address, the FSGDS, and the National PoA.
The proposals arising out of the PoA are discussed in the FoHoD and EXCO Clusters, respectively, and then approved by EXCO. The responsibility of the various departments is to implement the FSGDS programmes and report back through the cluster system and the e-monitoring and evaluation system.
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In terms of the budgeting process, the following steps should be followed (this process must, in addition, ensure compliance by provincial departments particularly regarding alignment of provincial budgets with the FSGDS. The process must empower the Policy Unit, Provincial Treasury, and Legislature (Finance Portfolio Committee) to either accept or reject the budget inputs of provincial departments if their plans are not in line with FSGDS:
• Departments draw up their budgets and operational plans in line with FSGDS every year, indicating the priorities of the FSGDS (within the Medium-Term Expenditure Framework funding). • Treasury invites departments to discuss the preliminary budget. The Policy Unit in the Department of the Premier also attends these meetings to ensure alignment with the FSGDS. • The Provincial Medium-Term Expenditure Committee hearings are part of the budgetary process in which departments sit with the provincial Treasury to bid for funds. It is at this stage that strategic trade-offs are made between departments, while taking into account the FSGDS. • The Provincial Budget Lekgotla is a forum at which the Provincial Treasury presents the budget allocations. It consists of the Premier, the MECs, the representative of the Legislature, Director General, Heads of Department, Chief Financial Officers, and the Provincial Treasury. • The allocations and issues arising from this session are discussed in the Economic and Social Clusters and form the basis for the adjustment budget. Final allocations are then forwarded to EXCO for endorsement. • The Treasury now informs departments of the preliminary budget allocations. It is on this basis that the departments draw up their draft budget statements and Draft Annual Performance Plans in preparation for Budget Day. Following budget day, the departments submit their final Annual Performance Plans and table them a few days before Provincial budget day. • The budget is then approved by the Legislature.
At local municipal level, the Bethlehem Declaration on Alignment requires municipalities to align their IDPs and consequently their budgeting processes with the FSGDS. Municipalities are required to review their IDPs on an annual basis and, in the process, to ensure alignment with the FSGDS.
Since there is no special funding set aside for the FSGDS, its effective implementation requires a concerted effort from all the parties concerned, including the contribution of national departments. This can be achieved through the government's strategic planning cycle.
According to the Planning Framework for the Government, between July and September every year, government departments are required to go through a strategic planning process. During this period departments revisit their strategic direction in line with the national and provincial policy initiatives.
This ensures that policy and planning inform the budgetary processes. It is during this period that the Province, through the PCF receives the priorities of municipalities as spelt out in the respective IDPs and FSGDS and departments are therefore expected to factor them into their plans. This will eventually
Page 127 of 136 ensure that local priorities are taken into account when departments submit their priorities in preparation for the budget allocations which is in November.
At the same time, the FSGDS sets the framework for the participation of the public sector, parastatals, and private sector. Although the FSPG has a specific role to play, economic growth is primarily seen as the role of the private sector. Overall, government’s role is to provide an enabling environment for shared growth and development. Therefore, the FSGDS has a number of planning implications for social partners.
A special effort is made to inform these entities of the priorities in the FSGDS. In addition, the social partners are expected to align their budgets with the priorities in the FSGDS. In respect of the private sector, the FSGDS has set out, in terms of economic development, specific drivers and enablers of the economy and also provided a spatial framework for the development of the economy.
As indicated in Chapter 3, Local Government is seen as a focal point for accelerated growth and development. This sphere of government therefore plays an important role in realising the objectives of government. Over the past five years this sphere of government has undergone profound policy changes and encountered vast service delivery challenges. In order to address some of these challenges, various initiatives such as Project Consolidate have been introduced at national level as an effort to empower municipalities to discharge their responsibilities in an efficient and effective manner. Also of importance was the launch of the 5-Year Strategic Agenda of Local Government for the next term of Local Government (2006-2011), which emphasised municipal support by the provincial sector departments and other government social partners. The 5-Year Strategic Agenda for Local Government encapsulates the government’s commitment to deepen and accelerate service delivery within the context of developmental local government.
At the centre of the support by sector departments at provincial level is the notion of implementing the 5-Year Strategic Agenda within the framework of the Free State Growth and Development Strategy.
8.3. e-Monitoring and Evaluation of the FSGDS
Monitoring and evaluation ensures an outcomes-based focus against set milestones for the FSGDS. It also provides regular and time-specific reporting on the progress of projects, and readily available and reliable information.
The Province has embarked on an initiative to contribute to the vision of “a unified, prosperous Free State that fulfils the needs of all its people”. This has resulted in the development of the FSGDS.
To monitor and evaluate the progress of the FSGDS in achieving its goals and outcomes, it is necessary to implement a Monitoring and Evaluation system, which consists of:
• A website-based monitoring and evaluation system with concomitant hyperlinks to detailed information on supporting project initiatives.
Page 128 of 136 • A Management Information System (MIS) for the FSGDS initiative. • Eleven departmental subsystems to monitor the strategic plans of departments, which will automatically update the main database. • Decentralised data capturing/input by departmental managers that is electronically transmitted to the main database administered by the Department of the Premier. • An integrated traffic light system to summarise reports on progress in a user- friendly way.
The e-monitoring and evaluation system includes four key elements:
• A website with reference information. • A monitoring and evaluation system. • A traffic light function. • A Cluster PoA. • An integrated provincial projects register.
The web site provides access to a corporate monitoring and evaluation system and its eleven departmental subsystems, but would also include links to documents and information pertinent to the successful implementation of the FSGDS. This information includes:
• A Geographical Information System reporting facility. • A provincial and municipal statistical profile. • A link to all departmental strategic plans, budget speeches, and web sites. • A link to all municipal profiles, IDPs, budget speeches, and web sites. • A link to all Acts, White and Green papers, National and Provincial policies and strategies. • A database to enhance IDP planning and departmental strategic planning.
The aim of the monitoring and evaluation system is to monitor the performance indicators defined in respect of the Provincial priorities, strategies and objectives. In this regard, the following functions are available:
• A fully functional historical system that reports on historical progress; this implies that the new system must make provision for all the historical progress reports, as is operational on the current system. • A redesigned system that monitors progress against the FSGDS structure at strategy, programme, performance measuring, and project levels. • the implementation of specified changes to make the system more user– friendly; these changes are such that system administration functions, such as user access, password management, Project Disable and Enable, and allocation rules must be accessible via the web. • All relevant historical data is imported into this new structure. This means that all the data that was captured on the current system to monitor the Free State Development Plan will still apply to the FSGDS structure; therefore, it must be transferred into the new structure; this applies to both FSGDS performance measures and to projects; and • The required new standard reports are developed; these include the Plan of Action, EPWP, provincial and national PoA, Traffic Light, deployment of CDWs and injunction reports.
The “traffic light” function is operational within the system to indicate where progress is behind schedule. The separate departmental subsystems update
Page 129 of 136 the overall provincial Monitoring and Evaluation System. The “traffic light” makes provision for the definition of standard data measures to be used across the various departmental strategic plans and for periodic reporting.
The system also includes an ability to monitor the national and provincial PoA. A separate reporting structure is being set up on an annual basis to ensure that the annual PoA are loaded and that reporting takes place against these.
The Integrated Provincial Projects Register makes provision for a process in which all projects in the Province can be registered. This register is integrated with the process of submitting projects on IDPs for funding approval by departments. The register is forms-based and assists in tracking the processes involved with projects, from inception to completion.
During the redesigning of the system, the project forms were updated to include the FSGDS structure. This update includes linking the projects into the right node of the FSGDS, as well as indicating the type of implementation projects, such as EPWP, PoA, and injunctions.
Departmental Monitoring and Evaluation subsystems are included in the system. The system has been developed in such a way that this can be done with a clear focus on the change in management and training aspects. The following sub-deliverables will be achieved:
• Eleven subsystems have been developed – one for each provincial department as illustrated in Figure 8.2. • Departmental users are reallocated to these structures to report, approve, and validate. • Departmental users have been trained to operate the system. An estimated average of 20 users per department is foreseen. • Senior departmental managers have been trained to use the system for reporting. An estimated average of 30 senior managers per department is foreseen. • The required new departmental reports will be developed as per the requirement of the individual department. Provision has been made for approximately three unique reports per department.
Free State Corpo rate M&E system
Health SocDev PWRT LGH Premier
Data capturer 1 Data capturer 2 Data capturer 3
Figure 8.2: A Schematic Representation of the Subsystems
Page 130 of 136 XML interface
This XML interface contains a pick list of all data fields that can be used as an export facility to external systems that would want to link up with the Free State Monitoring and Evaluation System.
Traffic Light Reporting System
A traffic light type of functionality is operational within the system to indicate, in a summarised fashion, where progress is behind schedule, on par, or where a department is excelling. This traffic light approach takes progress report data into account when listing departments and municipalities in a green to red zone of achievement or non-achievement. Advanced and complex formulae generate these reports from reported data on the system to produce a summarised report.
Regarding the role of departments, the following key functions are expected from them in terms of monitoring and evaluation:
• To monitor their strategic plans on the departmental monitoring and evaluation system. • To align their strategic plans with the FSGDS. • To link their departmental objectives to strategies of the FSGDS. • To link their projects to strategies of the FSGDS.
As this monitoring and evaluation is also applicable to the municipal level, municipalities are required to do the following:
• Monitor their projects on the Monitoring and Evaluation System. • Align their IDPs with the FSGDS. • Link their municipal objectives to strategies of the FSGDS. • Link their projects to strategies of the FSGDS.
The role of the Department of the Premier is: • Overall political guidance to departments and municipalities in drafting their strategic plans. • to implement an integrated planning framework that draws together the planning and budgeting activities of all role players in the Province around a coherent set of goals and strategies. • To provide a framework against which overall monitoring of activities of all role players can take place.
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