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Eastern Cape Government Accountability Report

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REPUBLIC OF SOUTH AFRICA THE EASTERN CAPE PROVINCIAL GOVERNMENT MIDTERM ACCOUNTABILITY REPORT 2014-2016 GOVERNMENT MIDTERM ACCOUNTABILITY REPORT 2014-2016 1 CONTENTS 6 1 Foreword – Premier Phumulo Masualle THE EASTERN CAPE PROVINCE AT A GLANCE Providing Quality Education: Government’s 6 Apex Priority • Home to 7 million people. • Population has increased by 14% between 1996 and 2016 An improved health profile of the province 9 • National population has increased by 37% Integrated human settlements and building • 1 914 036 people migrated out of the province while only 320 619 11 cohesive communities people migrated into the province, leading to a net outward migra- tion of -1 593 417 people compared to a net outward migration -1 592 798 recorded in census 2011. 13 Strategic social infrastructure interventions • The number of households increased by 36% from 1.3 million in 1996 to 1.8 million in 2016. Stimulating rural development, land reform 15 and food security • Whilst the number of households is increasing, the household size is decreasing. The increase in the number of households has impli- Intensify the fight against crime and cations for delivery of basic services, including human settlements 18 corruption development. Transform the economy to create jobs and • The poverty headcount of the province has decreased from 14.4% in 21 sustain livelihoods 2011 to 12. 7% in 2016, however the province maintains the highest poverty headcount amongst all provinces. Strengthening the developmental state and • Decreases in the poverty headcount were observed across all 24 good governance district municipalities, except for Chris Hani, where it increased from Provincial and municipal audit outcomes 15. 6% in 2011 to 16, 4% in 2016. 26 and the future of local governments • The lowest poverty headcounts were recorded in Nelson Mandela Bay, 3. 0%), Sarah Baartman, 4.5% and Buffalo City 7.3%. • After the global recession, the Eastern Cape economy reached Cover Picture: Premier Masualle during Masiphathisane 3.6% growth in 2011 and since then, the economy has continued to roadshow decline and averaged around 1% growth over five years. Back cover picture: The Eastern Cape Provincial • Three quarters of households in the Eastern Cape - up to 75% or Government Executive Committee 1,3 million - have access to piped water. • Households with access to electricity increased drastically from 36.2% in 1996 to 75% in 2011 and 85.4% in 2016. • Households with access to a flush or chemical toilet (sanitation) also increased from 776 222 in 2011 to 928 332 in 2016. • Nearly two-thirds (65.1% or 1,2 million) of Eastern Cape house- holds stay in formal dwellings, whereas a little more than a quarter reside in traditional dwellings - 26.6% or 471 699 - and less than a tenth – 7.4% or 130 885 – live in informal dwellings. More than half – 59.5% – of the dwellings in Eastern Cape are owned and fully paid-off. 21 Sources: Statistics South Africa Community Survey 2016 FOREWORD ASSESSING OUR PROGRESS HALF- WAY THROUGH OUR TERM OF OFFICE The well industrialised and commercial leadership, to turn an impoverished and economy in the west of the province is a underdeveloped Eastern Cape into a thriving stark contrast to this abject poverty, unem- province. Our main efforts to improve the ployment and inequalities on the north-east- province include addressing the following ern side of the province. Such vestiges of critical factors: apartheid spatial planning remain a stark re- ality in the human settlement patterns. About • Being the worst performing province in 65% (1.2m) of the province’s citizens live the National Senior Certificate examina- in informal settlements and a further 1.5m tions for a number of years migrate out of province to other provinces, • Having one of the highest school drop-out particularly Gauteng, the Western Cape and rates, resulting in poor literacy rates and KZN to be closer to work opportunities and unemployed youth 016/17 marks the midpoint of the fifth other services. • Having the highest youth unemployment Eastern Cape Provincial Government rate 2administration. Reaching this halfway The migration is retarding economic growth • Being the second most dependant prov- mark – 2014-2016 – calls for introspection and development in the Eastern Cape and ince to assess the progress made against the has suppressed infrastructure investment in • Having the highest poverty count commitments agreed to over the period. the region, specifically in the former home- • Having the lowest number of piped-water lands areas. connections to households Despite enormous challenges and con- • Operating in an situation where govern- straints, we have made substantial progress However, through targeted investment, the ment is the highest contributor to the in delivering against our mandate, commit- Eastern Cape government has turned Port economy ments and targets as we look ahead to the Elizabeth into a stable industrial hub which • Experiencing stunted growth in primary end of our term in 2019. compares well with the former Pretoria-Wit- economic sectors which tend to be the watersrand-Vereeniging (PWV) “Vaal” trian- most labour-absorptive APARTHEID LEGACY gle. Port Elizabeth in the Nelson Mandela • Planning outside of an updated spatial Bay Municipality is industrial and a car-man- development framework Lest we forget that of all apartheid’s lega- ufacturing hub – with the lowest poverty cies, the network of so-called independent head count in the province of just 3%. homelands inside South Africa’s borders, MID-TERM COMMITMENTS has proved to be one of the most difficult to In order to deliver on our electoral mandate The job of the post-apartheid provincial gov- erase. The Constitution amalgamated the and commitments and address the above ernment has been, together with traditional geographical areas consisting of the former critical developmental challenges, we Transkei, the former Ciskei, as well as the eastern portion of the former Cape Province into one province, the Eastern Cape. This amalgamation initiated an administra- tive process tantamount to merging three different states into one, a process that has not yet been fully normalised into the gov- ernment system. Integrating underdeveloped economies into a single province further accentuated the inequalities and put strain on limited re- sources. This is one of the reasons why the poverty headcount has remained stubbornly at 12.7% - this is highest poverty headcount of all of South Africa’s provinces. However, it has reduced from 14.4% in 2011. The legacy of apartheid has resulted in spatial dualities and inequalities. On the one hand there are thriving industrial nodes and on the other marginal rural areas which are often dependant on social grants and remittances from migrant labour, while the well-developed commercial farming sec- tor contrasts with struggling subsistence farming. Students Career Expo roadshows were held accross the province. GOVERNMENT MIDTERM ACCOUNTABILITY REPORT 2014-2016 1 Premier Masualle at the renovated Frere Hospital. adopted a Provincial Medium Term Strate- To support the above seven priority areas, tive advantages. These are the fact that we gic Framework’s (PMTSF) that focuses on the mid-term policy statements and commit- are the country’s second-largest province seven areas: ments were made to accelerate our agenda and the province with the most biodiversity for social transformation in order to achieve and ecosystems in the country. • Improving quality education and skills a better life for all. development These factors encouraged us to commit to: • Improving health services The social transformation imperatives are creating sustainable and vibrant rural com- • Stimulating rural development, land designed to be supported by the following munities; providing support to small-scale reform and food security commitments made towards developing the and small-holder farmers especially with • Transforming the economy to create jobs economy: regards to agricultural infrastructure; planting and sustainable livelihoods 300,000 hectares over the term; establishing • Intensifying the fight against crime and • Develop small, medium and micro enter- new milling hubs; prioritising the stimula- corruption prises (SMMEs) and cooperatives; tion of rural development, land reform and • Integrating human settlements and build- • Promote the Eastern Cape as a tourist food security in order to uplift marginalised ing cohesive communities destination of choice; households from poverty through agriculture; • Strengthening the developmental state • Initiate procurement reforms in order and to ensure that the agricultural sector and good governance to benefit local suppliers and service contributes to the economy. providers – specifically in the SMME and In each of the above seven priority areas, cooperative space; These commitments also included building specific programmes and projects have • Strengthen the economic opportunities abattoirs, dairy infrastructure and aqua- been identified for the provincial government and benefits derived from the province’s culture incubation schemes, as well as to focus on in terms of resource allocation, two industrial development zones; agri-parks, cooperatives and clusters in the driving implementation and monitoring. • Promote off-take agreements as a stimu- poorest districts. lant to economic activity; To deliver on the above priorities, we adopt- • Work towards expanding identified sec- A shift to accelerate our work induced further ed a
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