Chris Hani District Municipality Growth and Development Summit

SOCIO-ECONOMIC PROFILE | 2007

CONTENTS

INTRODUCTION· · · · · · · · · · · · · · · · · · · · · 4 Manufacturing · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·29 Aims of the Summit · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·4 Agro-Processing · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·29 Aims of this Document· · · · · · · · · · · · · · · · · · · · · · · · · · · · ·5 Forestry, Timber and Wood Products · · · · · · · · · · · · · · · · ·31

DISTRICT SNAPSHOT · · · · · · · · · · · · · · · · · 6 Construction and Coal Mining · · · · · · · · · · · · · · · · · · · · · ·32 Trade and Services · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·34 SPEED UP DELIVERY OF BASIC SERVICES · · 8 Tourism · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·35 Water· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·8 Sanitation · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·9 BUILD AND MAINTAIN INFRASTRUCTURE 38 Electricity · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·12 Provincial Department Development Plans · · · · · · · · · · · ·38 Housing· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·13 FIGHT POVERTY: SPECIAL PROGRAMMES · 42

IMPROVE PUBLIC SERVICES · · · · · · · · · · · 14 Human Development Index · · · · · · · · · · · · · · · · · · · · · · · ·42 Health · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·14 Poverty Index · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·42 HIV & AIDS · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·16 Social Grant Dependency · · · · · · · · · · · · · · · · · · · · · · · · · ·43 Education · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·18 Household Income · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·43 Transport · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·20 MUNICIPAL CAPACITY Skills Upgrading · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·22 AND CO-OPERATION · · · · · · · · · · · · · · · · 44 Business Development Services · · · · · · · · · · · · · · · · · · · · ·23 CONCLUSION· · · · · · · · · · · · · · · · · · · · · · 46

CREATE JOBS AND LIVELYHOOD ACRONYMS · · · · · · · · · · · · · · · · · · · · · · · 48 OPPORTUNITIES · · · · · · · · · · · · · · · · · · · 24 GDS AGREEMENT· · · · · · · · · · · · · · · · · · · 49 Livestock Farming · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·26 NOTES · · · · · · · · · · · · · · · · · · · · · ·62 Irrigated and Dryland Cropping · · · · · · · · · · · · · · · · · · · · ·27 4 investment, jobcreation,andpeople-centreddevelopment. common visionforpromotingrisinglevelsofgrowth, partners acrossallthethreespheresisvitalinforginga Collaborative actionbetweengovernmentandsocial across thecountry. the natureanddistributionofregionaleconomicpotential as thepivotalsitesonwhichtobuildanunderstandingof Government hasidentifieddistrictandmetropolitanareas province andnational). labour, business, communitysectorandgovernment(local, representatives fromthebroadestsectionsofsociety: partnerships withsocialpartnersbybringingtogether The summitsshouldprovideopportunitiesforbuilding of jurisdiction. hold GrowthandDevelopmentSummits(GDS)intheirarea proposed thatallDistrictandMetropolitanMunicipalities Development Summit(NGDS)inJune2003,government Building ontheresultsofNationalGrowthand INTRODUCTION • • • . Contributionbyeachpartnertotheconstruction of 5. Socialandeconomicinfrastructureprogrammesrequired 4. Actionsrequiredbygovernmentandeachpartnerto 3. Commitmentsbygovernment, business, labourand 2. Thedistrict’s economicpotentialandwhichsectorsof 1. specific questionsandissues: In thisregardtheGDSshouldseektoaddressfollowing the spheresofgovernment,aswellpublicentities. ensure planningandimplementationalignmentbetween Strengthening ofstrategicthrustthedistrictIDPto of theprogramme? community sector)shouldcontributetotheimplementation What eachsocialpartner(government,business, labourand A developmentpathandprogrammeforthedistrict. The aimoftheGDSistoreachbroadagreementon: AIMS OFTHESUMMIT cooperatives andotherbusinessformations. private partnerships(PPP’s), andpartnershipsbetween such infrastructure,includingthepossibilityofpublic- provide basicservicestocommunities to facilitateandenablethebusinessenvironment, land usemanagement dealing withbureaucraticdelays, EIAprocessesand deal withconstraintstosuchinvestments, including sustainability ineachofthesectors community sectortoensureinvestmentgrowthand PGDP, andASGI-SA) where applicable,tobeinformedbytheIDP, LED,RIDS, the economyshouldbepromoted(thiswouldneed, 5 and economic profile and service levels of the area and economic profile and service levels of the and government especially in relation to capacity competitiveness-related issues constraints on local economic growth and development and the mechanisms for dealing with them. AIMS OF THIS DOCUMENT 1. of the social, demographic, present a coherent picture To 2. present a picture of the challenges facing local To and 3. for, identify the economic opportunities To HBC & ECD, co-operatives, micro-credit, procurement, micro-credit, procurement, HBC & ECD, co-operatives, etc) and land reform, entrepreneurship development, the role of each sector in such interventions which is local economic and social development and – what consistent with National & Provincial practices interventions are required? This maximising the contribution of all social partners. the labour, would include participation by organised efforts private sector as well as civil society in ongoing to strengthen the role of local government. for coalitions which will act as a mechanism framework cooperative action at all levels and a robust for monitoring and evaluating progress 6. Economy interventions (EPWP including roads, Second 7. procurement that seeks to stimulate Promoting local 8. of local government and Improving the capacity regional growth Establishing partnerships and/or 9. 6 population densityofapproximately20peopleperkm². 58%. TheCHDMcoversanareaofover37000km²witha to beatmorethan70%, andtheunemploymentrateisover under theminimumlivinglevel)iswidespreadandestimated Poverty (measuredherethroughpercentageofhouseholds living intheformerhomelandareasofTranskei andCiskei. Hani District(CHDM).Mostofthepopulationisruraland There arecloseto900000peoplepresentlylivingintheChris DISTRICT SNAPSHOT 300mm inthewestto700-800mm intheeast. tributaries drainingtothenorth.Rainfall varies from200- and MbashedrainingtothesouthOrangeriver CHDM containsfourriversystems:theGreatFish,Kei total districtGDPfor2005isestimatedatR5.3bn. services (12%)tourism(5%),andmanufacturing(4%).The accounts forupto30%ofdistrictoutput,followedby economy comefromagriculture,forestryandhuntingthat aside, thelargestsectoralcontributionstodistrict in theEasternCape.Governmentandcommunity services The districtcontributes6.5%togrossgeographicvalueadded month. Only6%ofemployedpersonsearnmorethanR6000. 27% oftheemployedpeopleearnnotmorethanR400a bulk ofemploymentisbasedonunskilledlabour. Morethan income ofallpeopleinthedistrictemployedrevealsthat the GDP (37.2%)andformalemployment(31.9%). Themonthly Queenstown, accountsforaroundonethirdoftheDistrict’s Lukhanji, hometotheDistrictadministrativecentreof 7 ENGCOBO SAKHISIZWE INTSIKA YETHU EMALHENI LUKHANJI and Northern Cape, and via the N1, to the Bloemfontein Bloemfontein and Northern Cape, and via the N1, to the economy. main economic centres are Queenstown which Chris Hani’s London, and lies on the N6 between Bloemfontein and East to the Nelson on the N10 also Cradock (Inxuba Yethemba), Mandela Metro. in the particularly There are acute infrastructure backlogs, example, water former homeland areas. These include, for access roads. and sanitation, mud schools and very poor Provincial The extent of tarred roads in Chris Hani is below average throughout. Plan (PGDP) The Provincial Growth and Development development was launched in 2004 to address Provincial expression challenges and opportunities. The PGDP finds More recently, the District & Local Municipalities IDP’s. ASGISA has been launched to accelerate economic growth throughout South Africa. The present document aims to outline the elements of a development strategy for CHDM. This includes: • Speed up delivery of basic services • Improve public services (education, health, local business development) • Create jobs and livelihood opportunities • Build and maintain infrastructure poverty • Fight • Augment Municipal capacities and co-operation INKWANCA TSOLWANA agriculture, rst economy” commercial cant potential in agriculture and livestock evident cant potential in agriculture and livestock evident INXUBA YETHEMBA INXUBA Livestock production is the predominant farming activity activity Livestock production is the predominant farming in the District. and Queenstown is the hub for cattle trade schemes There are many small, medium and large irrigation horticultural that provide opportunities for high value production. by a The District agricultural economy is characterised ‘dualism’ dividing the “fi in the former and “second economy” subsistence farming a formidable homelands. The effects of this dualism presents these include developing state support range of challenges, There is clearly to agriculture, particularly extension support. signifi herds in SA. though CHDM hosting the largest livestock livestock The CHDM is currently engaged in a comprehensive programme which needs to be strengthened. The CHDM is a net importer of processed food, despite significant levels of agricultural output within the CHDM. Much of this is exported to the major centres of Elizabeth, Durban and East London with Bloemfontein, Port local farmers generally being short changed at the bottom end of the value-chain. The N6 traverses Lukhanji and Inkwanca to link with the traverses Inxuba major economy of East London. The N10 Elizabeth, to link with the primary economy of Port Yethemba while also flowing from the Province to the Free State SPEED UP DELIVERY OF BASIC SERVICES

WATER

This section briefly outlines service delivery with respect to Local communities in the former homeland areas of Intsika water, sanitation, electricity and low-cost housing, drawing Yethu, Engcobo, Sakhisizwe and Emalahleni continue to face mainly on a household survey conducted in 2006 (RSS), and the greatest backlogs as far as access to water is concerned. provincial department reports and assessments. The improvements in water provision between Census 2001 and the RSS in 2006 have not yet significantly impacted on the backlogs within these areas.

WATER ACCESS BY HOUSEHOLD FOR LOCAL MUNICIPALITIES IN CHRIS HANI FOR 2001-2006 Local Municipality Water On Site Borehole/Tank Community Stand Natural Water/Dam Water Vendor/Other Census RSS Census RSS Census RSS Census RSS Census RSS 2001 2006 2001 2006 2001 2006 2001 2006 2001 2006 %%%%%%%%%% Inxuba Yethemba 87.4 96.5 0.9 1.4 10.2 2.2 0.9 0.0 0.7 0.0 Tsolwana 38.8 57.7 6.4 10.8 45.7 29.5 6.5 1.0 2.6 1.0 Inkwanca 86.0 82.3 0.8 5.7 12.2 12.0 0.2 0.0 0.8 0.0 8 Lukhanji 59.8 81.1 1.2 2.9 33.0 12.2 4.4 1.5 1.7 2.3 Intsika Yethu 5.3 3.7 6.3 11.1 29.0 37.6 57.7 46.5 1.8 1.1 Emalahleni 16.8 22.9 6.1 4.0 35.7 44.5 39.0 25.9 2.4 2.8 Engcobo 3.3 4.3 8.2 1.3 19.2 23.3 67.0 64.3 2.3 6.7 Sakhisizwe 36.2 42.3 3.2 1.1 34.2 34.8 24.3 21.8 2.1 0.0 Source: RSS, 2006 SANITATION

Although there have been some significant improvements • There is a clear need to revise Water and Sanitation Sector in the provision of sanitation in most municipal areas, there Plans in CHDM, and in particular to calculate the MIG are still huge backlogs that need to be addressed. allocations that are required to ensure that National water • More than one third of households in Engcobo, Emalahleni and sanitation targets are met. and Intsika Yethu report no household sanitation. • Estimates of the cost of eliminating water and sanitation backlogs in the district are approximately R740 million and R250 million respectively, with half of this amount required in Engcobo municipality alone.

TYPE OF SANITATION BY HOUSEHOLD FOR LOCAL MUNICIPALITIES IN CHRIS HANI FOR 2001-2006 Local Municipality Flush Toilet Pit Latrine Bucket Latrine None Other Census RSS Census RSS Census RSS Census RSS Census 2001 2006 2001 2006 2001 2006 2001 2006 2001

%%%%%%%%% 9 Inxuba Yethemba 71.1 90.1 4.3 1.6 16.3 8.3 8.3 0.0 0.1 Tsolwana 10.7 24.1 38.0 56.1 20.4 16.9 30.9 3.0 0.0 Inkwanca 46.1 86.6 4.9 0.0 33.1 10.3 15.9 5.1 0.0 Lukhanji 52.3 59.0 27.4 27.9 3.1 0.8 17.1 12.2 0.1 Intsika Yethu 4.0 0.9 36.0 53.3 0.5 0.2 59.4 45.7 0.0 Emalahleni 6.9 0.4 30.0 56.5 7.2 7.9 55.9 35.3 0.0 Engcobo 5.8 3.4 24.3 50.2 0.5 0.7 69.4 45.8 0.0 Sakhisizwe 28.6 31.8 41.2 58.9 2.0 0.0 28.2 9.3 0.0 Source: RSS, 2006 10 • electricity result thewaterschemesarebuiltwithoutaccessroadsand integrated infrastructuredevelopmentprogrammewiththe Water andsanitationprovisiondonotformpartofan government andvariousstakeholders: Some keyissuesthathavebeenidentifiedbylocal Source: CHDMIDP, 2006–2011 ahsze1 9 8 602 7 7 3042567952 42567952 498069353 10 285496 112 148384 13727213 63.0 185054897 32.0 24972271 76.0 8893014 29.0 106 33.0 713 486 36.0 38.0 66953554 25.0 66.0 6485496 32180123 17595682 79.0 13236747 11 385427 61 478752 10.0 29.0 45.0 431 115 800 5.0 51.0 3 800000 79968261 34735548 490466 123576145 Total 37.0 Sakhisizwe Engcobo 71 997938 Emalahleni Intsika Yethu Lukhanji Inkwanca Tsolwana Inxuba Yethemba WATER ANDSANITATION BACKLOGSINTHECHRISHANIDM LclMncplt ae ako aiainBclgTotal Backlog Sanitation Backlog Water Backlog LocalMunicipality 3 0 1 202895545. 988845222 51.0 248935504 42.0 739 909718 ad ad Rands % Rands % Rands • • scenarios indicateadropinhouseholdincome The CHDMneedstorevisittheaffordabilityofservices as supply andprovisionneeds Housing developmentprogrammesarenotlinked to water 11 nitely a need to lobby for more MIG funding to MIG funding to nitely a need to lobby for more There is defi as well as national targets. targets, achieve provincial (2014) can be The eradication of water and sanitation backlogs and EPWP, used to boost employment and training under construction is a significant platform for strengthening the industry in the District. 357 363 771 357 363 771 078 97 303 129 964 000 159 373 000 168 064 000 2006/2007 FY2006/2007 FY 2007/2008 2008/2009 FY 229 399 771 197 990 771 Shortfall Funding Funding Require- ments MTEF FUNDING (MIG) Current MTEF Funding Source: DORA & WSDP, 2006 DORA & WSDP, Source: Clearing the Backlog is R129.6 million which is The current MIG allocation to meet the targets set up by below funding requirement Government to eradicate backlog. ELECTRICITY

Over 40% of residents in some municipalities are without they have indicated that their priority is to improve bulk electricity (e.g. Intsika Yethu and Engcobo), compared before domestic supply. Eskom is currently in the process of to between 5% and 11% with out electricity in Inxuba construction of electricity lines that will be to the benefit of Yethemba, Tsolwana and Lukhanji. municipalities in the West of the District. Some substations are being constructed at Intsika Yethu and Engcobo. There is The CHDM is hindered by a severe non-coverage of grid an urgent need for CHDM Municipality to liaise with Eskom electricity. This problem is prevalent in the former Ciskei to address electricity backlogs (e.g. R44m committed by and Transkei homeland areas. This impacts heavily in Eskom in Intsika Yethu is a start but needs to be expanded providing free basic electricity to large areas of our rural throughout the district). population. Although Eskom has been engaged on this issue,

ELECTRICITY ACCESS BY HOUSEHOLD FOR LOCAL MUNICIPALITIES IN CHRIS HANI FOR 2001-2006 Local Municipality Electricity Solar No Electricity Census 2001 RSS 2006 Census 2001 RSS 2006 Census 2001 RSS 2006

12 %%%%%% Inxuba Yethemba 85.7 94.0 0.1 0.6 14.3 5.4 Tsolwana 88.7 89.5 0.1 0.0 11.1 10.5 Inkwanca 76.6 81.0 0.0 0.0 23.4 19.0 Lukhanji 76.7 88.7 0.1 0.0 23.2 11.3 Intsika Yethu 30.5 56.0 0.1 0.0 69.4 44.0 Emalahleni 47.2 69.0 0.1 0.7 52.7 30.3 Engcobo 19.4 53.0 0.2 0.0 80.4 47.0 Sakhisizwe 60.2 74.1 0.1 0.0 39.7 25.9 Source: RSS, 2006 13 % Local Municipality LEVEL OF INFORMAL HOUSING INLEVEL OF INFORMAL HOUSING DM THE CHRIS HANI Inxuba YethembaTsolwanaInkwancaLukhanjiIntsika YethuEmalahleniEngcoboSakhisizwe 0.4 1.0 6.8 0.0 3.2 0.0 1.3 6.6 Source: RSS, 2006 Source: HOUSING housing for low and middle income The provision of formal Within residents is a core function of local municipalities. housing development is generally occurring, the urban areas, the provision areas, within the rural or communal however, of housing is only beginning to be addressed. the provision The primary constraint with regards to around land of housing in rural areas relates to issues housing ownership and registration of title. The current adequate land regulations also fail to make provision for need for making food gardens that these poor households Land for survival. With the promulgation of the Communal surrounding Rights Act the process of addressing problems provides an land rights commenced. The table to the right delivery in the insight into the current status of housing priority areas District. Inkwanca and Sakhiswe are clearly for housing delivery. than those for Low-cost housing backlogs are less prevalent water and sanitation in Chris Hani, and the opportunities There provide good stimulus for local economic activity. is an obvious link between housing plans and existing backlogs with the EPWP and its related forward-backward linkages to the construction industry and job creation. 14 Infrastructure). and rehabilitation(seesectiononBuildMaintain provincial infrastructurespendingtargetedatupgrading the CHDMissettoreceiveincreasingoverallamountsof In addition,andfurtherreinforcingthepointraisedabove, significant investmentsinnewinfrastructure. delivery intheseareasareofmoreimmediateprioritythan communities andthatissuesofthequalityservices infrastructure isfairlywidespreadandaccessibletolocal This suggeststhatregionalhealthandprimaryeducation fairly highlevelsofaccesstoclinicsandprimaryeducation. access toclinics),localcommunitiesinChrisHanireported Overall withtheexceptionofEmalahleni(45%reported HEALTH Source: RSS,2006 IMPROVE PUBLICSERVICES ahsze7. 505. 166639.5 50.7 94.2 6.6 77.6 73.7 1.3 81.2 0.0 68.1 61.6 0.0 3.2 44.6 6.8 17.9 82.5 1.0 55.3 11.9 80.3 48.5 82.4 9.0 0.4 57.0 95.0 0.2 46.4 97.7 30.4 98.7 68.1 14.1 71.6 94.5 81.6 98.7 93.2 44.9 28.8 100 88.2 72.3 100 88.5 96.1 Sakhisizwe Engcobo 95.0 Emalahleni Intsika Yethu Lukhanji Inkwanca Tsolwana Inxuba Yethemba HOUSEHOLD ACCESSTO OFSAFETY BASICSERVICESANDPERCEPTIONS LocalMunicipality Access to Clinics %%%%%% Primary Schools Access to Intsika Yethu and 2.5forEmalahleni. showing figureslike2.7nursesper100 000peoplefor people, is12nurses.CHDMseemstobeunderresourced centres. Thenationalaveragefigurefornursesper 100 000 across theDistrictishowever, biasedinfavourofthelarger The distributionofhumanresourcesathealthfacilities service delivery. The criticalissuesaroundhealthareimprovementsin area facilitatesbetterhealthservicestotheruralpopulation. 10 000people.Thespreadofhealthfacilitiesthroughout the The CHDMfallswithinthenationalnormsofoneclinic per Roads inGood Condition Access to Ambulance Access to Services Informal Housing Neighbourhood Community is safein 15 The national average for Emergency Medical Services (EMS) Services (EMS) The national average for Emergency Medical 000 people. In contrast, CHDM has 5 is 5-8 vehicles per 100 It is alarming vehicles for the entire population of 822 891. a fundamental that a district that is 90% rural lacks and Sakhisizwe resource such as EMS. Intsika Yethu, transporting Engcobo experience serious problems in it often takes more urgent patients. In these rural areas, than 3 hours to secure transport. There appears to be good immunisation coverage (between the trend of 58% and 96%) within the District, however, drop out rates in ongoing treatment is of concern. For example, the dropout rate between DPT3 and Measles represented 15.1% of children in Sakhisizwe in 2001 immunised. Malnourishment is also a serious concern within no reliable data has been gathered to the District. However, reflect the reality of this problem. Mobile services seem to be used extensively in some areas. in some areas. Mobile services seem to be used extensively assist large Some mobile services assist farms while others classified sectors of the population at village points. Having and quality of the CHDM as a rural district, the accessibility the future. mobile services needs particular attention in Level 1 hospital the ideal According to national norms, that CHDM /population ratio is 1:750. This indicates of Level 1 hospitals are reasonably well resourced in terms namely with the exception of two sub-districts, hospitals, (1:1482). (1:4003), Intsika Yethu Inxuba Yethemba population, the CHDM Analysing available beds per 1000 population is within the national – with 2.2 beds per 1000 in some areas the available beds average of 2.5. However, population are well below the national average per 1000 (1:692) and (1:1482), Inxuba Yethemba (e.g. Intsika Yethu Lukhanji (1:791)). Based on available data, the Bed Occupancy Rate is about 68% - well below the national norm of 80%. This lower occupancy rate might be linked to inaccessibility to the hospital or lack of trust in the services provided. 16 before thenumberofnewinfectionsevenout. epidemic intheprovinceisexpectedtoreachapeakby2010, HIV prevalencewithincreasingeducationuptomatric.The Africa asawhole,theEasternCapesurveyshowanincreasing working andthoseunemployed.UnliketheresultsforSouth is notasignifi settlements, andlowerinfarmtribalsettlements.There is generallyhigherinurbaninformalandformal According totheHSRC2003householdsurvey, HIVprevalence of theepidemic. years) andpovertydriventransactionalsexisamajordriver risk, theepidemicisgrowingfastestamongyouth(15-25 HIV prevalencethanmen,theAfricanpopulationisathigher However, fortheprovinceasawhole,womenhavehigher to localanddistrictmunicipalareas. Eastern Cape.Very littledataexistsonHIVandAIDSspecific 25.3% in2002. Thisisslightlyabovetheaveragefor CHDM hadaprevalencerateof30.2%in2004,upfrom Government usesANCdataforplanningpurposes. district, anditisdifficulttoextrapolate thisdatafortheentire population. among pregnant womenattendingpublicclinics.Dataisonlyavailable per Theannualantenatalandsyphilis survey(ANC)measures HIV prevalence 1 in theCHDM.Accordingtoantenatalsurvey HIV andAIDShasamajorimpactongrowthdevelopment HIV &AIDS cant differenceinHIVprevalence amongthose 1 (ANC) Source: DeptofHealthantenatalsurvey, 2004 sexual intercourse partners andonly28.8%reportedusingcondomsduring had receivedHIVeducation,however54%2ormore 72.3% ofscholarsintheprovincereportedthatthey South AfricanMedicalResearch Council,2003 usamila- Thefirst SouthAfricanNationalYouth RiskBehaviorSurvey2002. 2 MedicalResearch Council,DepartmentofHealth. Umthenteuhlaba Source: DHIS,2006 of peopleontreatment. need toaccreditadditionalpointsandincreasethenumber treating atotalof1555patients.However, thereisstilla are accreditedfordispensinganti-retroviral treatment, prevention, careandtreatment.IntheCHDM5servicepoints The DepartmentofHealthhasembarkedonarange atr ae2.02.028.03 30.20 27.10 27.30 23.60 25.30 Eastern Cape Chris HaniDM HIV PREVALENCEINTHECHRISHANIDM l ans312 114 151 55 923 Total All Saints Glen Grey Cala Cradock Frontier TOTAL NO. OFARTPATIENTS AT CHRISHANISITES Area (Site) 2 . 0220 2004 2003 2002 # 1 555 17 municipalities should participate in the development of this this participate in the development of municipalities should and targets of this objectives plan and integrate the goals, dedicated budgets. with plan into the IDP from 2007, strategies for The challenge for CHDM includes developing , cooperation orphans and vulnerable children. In addition be improved in with civil society organisations needs to prevention and care, terms of information and awareness, AIDS council such as home and community based care. The role in should play an active coordinating and monitoring the local and district municipality. Attraction and retention of qualified personnel is one of the of qualified personnel is one of the Attraction and retention treatment and major challenges for adequate prevention, the HIV care within the public health system. In addition, primary health epidemic has undermined the benefits of in the care and complicated TB control and prevention province. plan for scaling The province is developing a multisectoral and AIDS. The up and intensifying the response to HIV all spheres of plan will outline a set of concrete targets for and local government and other stakeholders. The districts 18 population densitiesforthearea. of schoolsthanthewest.Thispatterncorrespondswith The easternhalfofthedistricthasahigherconcentration education. in thelargercentreslikeQueenstowntocompletetheir high schoolstudentshavetobecomebordersinhostels children arebettercateredforlocally. Presumablymany Cradock. Asasparselypopulatedpartofthedistrict,smaller with veryfewsecondaryschoolsexceptinMiddelburgand shows thewesternhalftohavemostlyprimaryschools, The distributionofprimaryandsecondaryschoolsinCHDM EDUCATION • • of poorlyconstructedandmaintainedschools Limited numberofschoolfacilities, andasignificantnumber Parents lackthemoneytosendchildrenschool education, including: A numberofreasonsmaybeattributedtothelowlevels means thattherewillbealargedemandforunskilledwork lack ofeducatedpersonsenteringtheworkingeconomy places significantdemandontheunskilledjobpool.This number ofundereducatedpeopleenteringtheworkforce Hani residentsarefunctionallyilliterate.Theresultinghigh in theTable onthefollowingpage.ThemajorityofChris Education levelsarelowthroughouttheDistrict,asindicated educational qualificationsabovematric. of thepopulationhasnoformalschooling;andonly5% illiteracy ratesandthenarrowskillsbaseinCHDM.16% The lowlevelsofqualityeducationcorrespondwithhigh 19 Furthermore, the provision of sports and recreational of sports and recreational Furthermore, the provision development facilities has been directly associated with the there is a significant lack However, of a healthy society. the District, of sports and recreational facilities within This may be especially in the former homeland areas. government, directly attributed to the policies of the former and welfare which did not take into cognisance the health of people living in the then homelands. who become involved in youth In many instances, Furthermore, ‘gangsterism’ and crime do so out of boredom. children the development of healthy and well-developed A lack of playing depends upon their being able to play. motor skills and may result in children with underdeveloped participation in co-ordination. In adults and children, alike, – a lack of sports is considered to promote healthy bodies obesity. exercise and unhealthy eating habits lead to ###### maintained school buildings, crèches and pre-primary and pre-primary crèches maintained school buildings, and facilities, learners to complete their high school education. Local Municipality No Schooling Some PrimaryPrimary Complete Some Secondary Grade 12 Higher HIGHEST LEVELS OF EDUCATION REACHED (+20 YEARS) HIGHEST LEVELS OF EDUCATION Inxuba YethembaTsolwanaInkwanca 786 5 LukhanjiIntsika YethuEmalahleni 4 841Engcobo 9 068 2 641Sakhisizwe 30 798 18 018Chris Hani DM 4 148 3 152 20 436 3 251 20 167 20 186 25 974 318 114 5 824 1 181 12 018 023 10 943 6 206 89 073 7 689 13 660 6 575 3 197 4 886 3 645 27 718 18 992 2 511 30 333 3 556 1 794 997 10 2 099 1 749 96 246 14 744 4 521 12 997 1 044 7 048 2 963 747 35 913 8 238 3 499 3 217 590 2 507 2 384 182 21 2 267 1 640 Source: CHDM IDP, 2006–2011 CHDM IDP, Source: There is a significant lack of libraries within the District, lack of libraries within the District, There is a significant being unable resulting in school children and other learners studies. to access information they require for their Lack of adequately trained and motivated educators Lack of educational institutions in the region Lack of educational equipment Lack of adult literacy programmes High rate of teenage pregnancy with local The Department of Education, in conjunction therefore, must, municipalities and the District Municipality, concentrate on a two-pronged approach: 1. equipped and whereby learners have access to well 2. encourage the necessary funds being made available to • • • • • • 20 services. and Emalahleni)alsosuffertheworstaccesstoambulance reporting thepoorestroadinfrastructure(IntsikaYethu to emergencyambulanceservices.Thosecommunities well asservicesdelivery, mostevidentfromtheaccessibility consequences intermsoflocaleconomicdevelopmentas road infrastructure.Thisdisconnectionhassignificant disconnected localcommunitiesoftenwithverypoor many localcommunitiesremaintrappedinisolatedand Despite significantinvestmentsinnewroadsthedistrict TRANSPORT • • providing somehopeforaresolutioninthenearfuture. The processiscurrentlyunderdiscussionatalllevels, thus roles andresponsibilitiesbetweenvariousroadsroleplayers. severely hamperedbythelackofclaritywithregards to Currently theprocessofmaintenanceandupgradeis All theseroadsrequirere-gravellingasamatter ofpriority. condition andtheremaining50%areinapoorcondition. infrastructure. Asaresult,50%oftheroadsareinfair only minimalmaintenanceisbeingcarriedoutonthis uncertainties ofpowersandfunctionsinthisregard, which theDistrictwasformerlyresponsible.Dueto There areapproximately4,000kmofgravelroadsfor 21 within former urban townships loading areas especially within CBD areas accidents intersections especially for the disabled and the municipal authorities and Municipal level to manage transport planning implementation Transport whether motorised or non-motorised experiences experiences whether motorised or non-motorised Transport many problems within CHDM. These can be summarised as follows: 1. conditions of roads especially rural roads and Poor animals 2. Stray 3. Inadequate pedestrian signs and markings and off 4. Limited traffic calming measures within areas of high 5. Low visibility of 6. traffic officials let alone at major of traffic lights, Non-availability and law enforcement 7. Unavailability of adequate public transport facilities 8. Lack of cooperation between public transport operators 9. capacity at Local and district Lack of institutional 10. Insufficient supply of taxi related infrastructure 11. Outdated information at the taxi registrar 12. Lack of pedestrian and non-motorised transport facilities • • There are 21 registered taxi associations operating in 16 taxi associations operating in 16 registered There are 21 associations 21 towns situated within the CHDM. These operators. However the Registrar has comprise of 921 operators. This figure excludes operators details of 1571 who are using sedans and bakkies to ferry passengers. District. Bakkie There are 249 taxi routes available in the and Tsomo. taxis are dominant in Ngcobo, Cofimvaba, Cala the survey, Out of the total of 257 routes gathered from 38% minibuses and 4% sedans. The sedan 58% are bakkies, and operation is largest within the Lukhanji Municipality particularly Queenstown. ranks in the There are approximately 73 taxi and bus District. in the District bus operators There are currently 31 of these 11 according to the Regional DoT office but only on 49 routes of have operating permits. The buses operate which 7 are subsidised. particularly is a major mode of transport in Chris Hani Walking highest number in CBD areas. The survey indicated that the of Queenstown, of pedestrians are found in the CBD’s face many Cofimvaba, Engcobo and Lady Frere. Pedestrians problems due to the limited availability of pedestrian pedestrian crossings and hawker facilities e.g. pavements, stalls which block pavements and hamper pedestrian lighting and non-pedestrian transport Lack of street flow. utilising pavements as dropping and loading zones add to pedestrian problems. • • • • • 22 • • • • • • • 8. Sales 7. Automobile Driving Skills 6. Problem Solving/Structured Thinking 5. Management Skills 4. Computer Proficiency Verbal/Written EnglishCommunication 3. 2. Customer Service 1. Administrative Skills force were: The desiredandyetrarequalificationsfromthelocallabour Development Act 40% haveaWorkplace SkillsPlanasper theSkills Development Act 70% paytheSkillsDevelopmentLevyasper Thus mostareSMMEs 20% havegreaterthan150employees 10% havebetween100-149 employees 70% havebetween0-49employees Of 100% ofthosewhoreturnedtheSkillsAuditForm: in theCHDM,providedtestimonytoskillsproblem; A recentlycommissionedsurveyofthebusinesscommunity interventions agreeduponbyallstakeholders. to beaddressedurgentlywithaproposedframeworkof between thesupplyofanddemandforlabour. Thisneeds background ofhugeunemployment)suggestsamismatch Provincial SkillsAudit,2005).Theskillsshortages(againsta from ‘moderate’inLukhanji,to‘verypoor’Inkwanca(DoL throughout theprovince,andskillsavailabilityratingsrange The skillsdeficitinthedistrictmirrors SKILLS UPGRADING secondary andtertiaryeducation. education atalllevels–frompre-primarytoprimary premised onthebasisofuniversalaccesstoquality There isaneedtodevelopDistrictSkillsPlanthat CHDM andprovincialgovernment. through initiativesandpartnershipswithDPLG,DBSA, make inroadsintoitstargetsandthisneedstobe addressed The CHDMitselfalsolackssufficientandrequisite skillsto in ChrisHani). against abackgroundofstrongdemandforsuchgraduates percentage ofunemployedtertiarygraduatesinAmathole between thesupplyanddemandforskills(e.g.ahigh is alsoimportanttoinvestigategeographicalmismatches some ofthemostbasicskillsarelackingindistrict.It stakeholders toaddresstheseskillsdeficiencies, aseven A verystrongconsensusneedstobebuiltbetweenall key Poor ProblemSolvingSkills 6. LackofITunderstanding 5. Qualitycontrol &Consistency 4. Lackofproperverbal/writtenEnglishCommunicationSkills 3. LackofbasicLiteracy 2. LackofbasicNumeracy 1. their staffmemberswere: The mainchallengeslocalbusinesspersonsarefacing with 10. Specific IndustryQualifications(i.e.Bartending, Tool Agricultural(Dairy, Horticulture,Livestock) 9. making, IT, Mechanical,Insurance) BUSINESS DEVELOPMENT SERVICES

One of the key trends in small enterprise development • Small enterprises constitute the demand side of the market has been a move away from direct-market substitution by for BDS. They include micro, small and medium enterprises international donors and local governments towards a focus that are primarily profit-oriented. BDS providers constitute on facilitating private business development service (BDS) the supply side of the BDS market. They are individuals, market development. This approach emphasises the limited private commercial firms, and other agencies providing ability of the public sector and/ or donor organisations to services to small enterprises. deliver services to small enterprises effectively. • In addition, there are BDS facilitators who support BDS providers by, for example, developing new services, “Facilitating BDS market development means conducting promoting good practice, building service capacity and an assessment of the BDS market, identifying weaknesses building market awareness amongst small enterprises. BDS and opportunities, and identifying interventions that could facilitators are development-oriented institutions whose stimulate the provision of more and more relevant BDS objective is BDS market development and typically include product offerings.3” non-government organisations, industry and employer associations, local government agencies and others. 23 CHDM Municipality has partnered with the Small Enterprise • The CHDM needs to strengthen its involvement in supporting Development Agency (SEDA) in the delivering of non the BDS market, facilitating greater entrepreneurship financial support to SMME’s. To that effect the CHDM Seda growth and development. Office which is based in Queenstown was opened to service the business community of the district. The following The CHDM should provide funding and can play a role products and services are offered at this centre: in facilitating and strengthening BDS. In the case of the 1. Information, advice and referrals government the key additional role is to provide the 2. Business registration enabling policy, legal and regulatory environment within 3. Business plans which BDS markets can flourish. 4. Tender Information and advice 5. Import and Export training 6. Trade Information 7. Business assessment and technical support 8. Business mentoring and 9. Market access and business linkages

3 Orford, 2005 24 • • • • in fewerjobsbeingavailable.Thedeclinethecommercial decline inthecommercialfarmingeconomyhasresulted clearly hassignificantimplications.Inparticular, the always playedasignificantroleintheDistricteconomy, The decreaseinthecommercialfarmingsector, whichhas upon thisincome. the populationofChrisHanihashistoricallybeendependant jobs offeredwithintheminingsector. Alargeproportionof sector, resultinginasignificantreductionthenumberof Falling mineralpriceshaveleadtoadecreaseinthemining unutilized, withmuchoftheinfrastructureinruins. the Ezibeleniindustrialarea.Theseareasarenowlargely policies, whichenabledthedevelopmentof areassuchas manufacturing sectorwasartificiallysustainedbyapartheid A decreaseinthemanufacturingsector. Historically, the other areaswithinSouthAfrica. District, tolargerurbancentreswithintheEasternCapeand District resultinginamigrationofskilledpeopleoutthe High levelsofunemploymentwithintheurbanareas This maybeattributedtoanumberofissues, including: generally swingsbetweenstagnationandastateofdecline. The realitytodayissuchthattheDistricteconomy former RSAforincomegeneratingopportunities. becoming reliantonthelargerurbancentreswithin remained underdeveloped,resultingintheirresidents homeland system,whichensuredthattheformerhomelands further encumberedwiththeimbalancesresultingfrom upon primaryeconomicactivities.TheCHDMeconomyis non-existent industrialeconomyandahighdependency practices ofthepast.Inparticular, theCHDMhasanalmost The EasternCapeeconomyishauntedbythepoliciesand LIVELYHOOD OPPORTUNITIES CREATE JOBSAND • • • • • •

projects, whichshouldbeeconomicallyviable. strategy forthewholeregion,resultsinfailureofmany conjunction withthelackofaclearandconcisemarketing The lackoflinkagesbetweenvariousprojects, which,in development oftheeconomyinmanypartsDistrict. Poor infrastructure,suchasbadroads, preventsthe agricultural andbusinessskillstoensuresuccess. In addition,themajorityofemergingfarmers lack Maintain andBuildInfrastructure). is settoincreasesignificantlyinthedistrict(seesectionon medium termexpenditurecycle,agriculture infrastructure to informationandservices.However, overthecurrent offered havebeencutback,therebydecreasingtheiraccess in thedistrictmeantthatmanyprogrammespreviously Reductions inpreviousprovincialagriculturalbudgets success. to decreasetheirprofitmarginsandchancesofeconomic communal infrastructure(dippingtanks, etc),serveonly of overstockinganderosion,accompaniedbydamaged commercial counterparts.However, theaddedpressure Emerging farmersaresubjecttosimilarpressuresastheir • • • • • ‘90’s, leadingtolowprices; The glutinthewoolmarketlate1980’s andearly factors, including: agriculture sectormaybeattributedtoa wide rangeof Increasedstocktheft. Destructive veldfires;and Decreasing agriculturalprices; Increasing Aseriesofmajordroughts; mechanization; 25 Livestock farming cropping Irrigated and dryland Agro-processing) Manufacturing (including industry Forestry and Wood-using Construction and Coal Mining and Services Trade Tourism Action Plan, Each of these industries requires a detailed timelines and specifying investments to be packaged, and responsibilities. Preparatory role-players milestones, in Chris work has already taken place for all these industries industry role- Hani, and the main challenge is to galvanise players to ensure accelerated and shared growth. Hani: ASGISA projects are planned to benefit Chris Two Bio-fuels (sugar beet in Cradock and beyond) CHDM) Timber Industries Cluster (in the East of the in CHDM that There are two other potentially large projects could be adopted by ASGISA: Molteno-Indwe Coal linked to electricity generation (being explored by DME); and Scheme to allow Transfer Augment Gariep-Fish River Water increased irrigation in CHDM Each of the seven sectors and sub-sectors listed above are briefly profiled in the following sections: • • • • • • • • • • • 2005 Unemployed Global Insight Global Insight %% RSS 2006 HH Income less HH Income less R 1 500/month Local Municipality Inxuba YethembaTsolwanaInkwancaLukhanjiIntsika Yethu 63.0EmalahleniEngcoboSakhisizwe 71.0 43.4 57.2 76.0 50.6 42.5 59.9 58.0 66.1 75.3 54.4 75.9 58.4 75.8 60.4 MEMBERS OF HOUSEHOLDS CURRENTLY UNEMPLOYED UNEMPLOYED MEMBERS OF HOUSEHOLDS CURRENTLY OF DEFINITION) AND HOUSEHOLD INCOME (EXPANDED LESS THAN R 1 500/MONTH In the context of the very high unemployment and poverty and poverty In the context of the very high unemployment rates mentioned above, there is clearly an urgent need for new investments to create jobs and improve livelihoods market in CHDM. Based on existing economic activity, opportunities and present resource/assets/skill bases the particular industries offering potential include: Source: RSS, 2006 and Global Insight 2006 Source: Generally speaking, income and employment figures for and employment figures for Generally speaking, income unimpressive due to the issues Chris Hani remain largely in this analysis. that have been raised 26 • • • • • • • • • Upgrading accessroads/farmlogistics Move toformallandadministrationincommunalareas Improved veldmanagement Building animalfeedsindustry Accelerated landredistribution USAID-funded projectinCHDM;MiddleEastgoatmarket) Improved marketaccess(e.g.drawingonexperienceof Improved AgriculturalExtensionServices transfer betweencommercialandemergingfarmers Improve existingprogrammesdesignedtofacilitateskills Expansion oftheeffectiveNWGAmodelsupport livestock farming.Asectoractionplancouldinclude: term. Thechallengeistoincreaseincomesfromcommunal tune ofapproximatelyR15moverthecurrentmedium tanks, shearingsheds, fencing,veterinaryservicestothe Agriculture throughconstructionofstockdams, dipping areas isbeingsupportedbytheProvincialDepartmentof communal farmers.Livestockfarmingin is veryimportantinCHDM,bothforcommercialand Livestock farming(cattle,dairy, sheep,goats, gameetc) LIVESTOCK FARMING 27 IRRIGATED AND DRYLAND CROPPING AND DRYLAND IRRIGATED feasible in small parts of CHDM (in Dry cropping is only existing and the East), underscoring the important role that there is 8,000ha Presently new irrigation schemes can play. show that the under irrigation in CHDM, but statistics of the Shilo schemes are grossly underutilized. A mere 40% example. Schemes capacity is currently utilized, as an possibly A further 7,600ha could be placed under irrigation, Project (mentioned much more if the large Gariep Transfer above) were to be implemented. well, has It is clear that irrigated horticulture, if managed An industry huge potential for job and income creation. Action Plan could include: How to revive existing schemes (ownership, conflict • markets etc), in resolution, maintenance, farmer training, the light of failed previous revitalization efforts. the How to ensure that large DoA budgets (R30m over • are not current medium term cycle) for revitalization wasted? • and upgrade Where and how to implement new schemes, and expand existing ones? Design and implement an Agricultural Skills Plan (e.g. • Ikhala FET college) Dry-land cropping is being promoted in the east of CHDM Massive Food Programme. There are presently through DoA’s beneficiaries of this scheme in CHDM, and it could be 2815 scaled up. 28 the Packhouse Concept. all-year round,atrelativelyhigherprices.Thisis known as facilities tosupplydifferentmarkets(differentlabels), enabling farmers, throughtheirpart-ownershipofthe of producetothefacilities, andbetterlinkswith markets, contract farmingandshare-croppinglinked to thesupply within thedistrict.Thiswillenablebetteropportunitiesfor for fruitandvegetableproduceatstrategiclocations Development ofgrading,packagingandstoragefacilities impact ontheproductionofmoremarketableproducts currently workingonirrigationschemeswouldhaveapositive In particular, skillsdevelopmentofsmall-scalefarmersandthose emerging farmersdevelopmentandmentorshipprogrammes). offi presence andtechnicalexpertiseoftheagriculturalextension (the needforagriculturalsupportprogrammes, scalingupthe An urgentneedtostartaddressingissuesaroundskillsdefi cers inthedistrict,establishmentandalignmentofsmall cit 29 . This situation necessitates . This situation necessitates 4

4 2006 Study, Potential CHDM Agricultural AGRO-PROCESSING obvious, agricultural potential is While the CHDM’s minimal impact primary agricultural projects have had a lives on changing people’s strategies to increase value-added production by exploiting by exploiting strategies to increase value-added production and livestock opportunities that exist along the various crop value chains. advantages in Chris Hani lie in food-processing Particular existing factory based on resource and crop availability, developed road infrastructure, as well as relatively well districts. infrastructure when compared to other rural output goes for processing farm The bulk of the district’s and vegetables, outside the district (e.g. milk, beef, fruit the value of etc.), which relegates the district to the bottom chain. This needs to be addressed urgently. in Chris Hani: A Successful Partnership Dordrecht Cheese Factory in An amount of R 2,6m was allocated by the district 2004/05 financial year for the construction of a cheese amount factory in Dordrecht. DEAET also contributed an an of R1.2m, ECDC R1m and the beneficiaries contributed amount of R300.000. The project beneficiaries are two, The Association (DCDFA), Dordrecht Commercial Dairy Farmer’s commercial farmers and the which is made up of 11 which consists of 37 Communal Property Association (CPA), emerging black farmers. The total number of beneficiaries are therefore 48. MANUFACTURING a significant proportion of Manufacturing represents (employment). the CHDM economy at (8% GGP) and 5% industries According to the ECDC, agro-processing processing and followed by furnisher production, food Lukhanji are the most predominant. wood products, with a small Municipality (Queenstown, in particular), dairy processing and furnisher manufacturing industry, centre of the district. is the manufacturing wood products, Municipality (Cradock and Middleburg in Inxuba Yethemba particular) also have food processing activities. Queenstown Manufacturing mainly takes place in are furniture (Queendustria) and the major activities making, food-processing but also pressed metal. Queenstown are For example the three biggest employers in & Crickley Diary and manufacturers: Leather Seating, Twizza processing Steadline Pressed Metal, and there are biltong a spray factory in Middelburg (300 plants, recycling plants, employees), as well as leather processing operation, Ouma and others. Rusks, The manufacturing sector in Chris Hani is dominated by agro-processing (sub-sector) and therefore we need to examine this particular sub-sector and in more detail. 30 for interventionsbyallstakeholders. of thefoodprocessingindustry, whichalsosuggestareas The followingarethemajorproductionfactorsanddrivers added agriculturalproduction. be replicatedthroughoutthedistricttoencouragevalue- and asimilarmodelofcooperationcoordinationshould The DordrechtCheeseprojecthaspotentialtobeexpanded, other productsonsite. provides thepublicwithopportunitytobuycheeseand shop asaspin-offwithintheproject.Thefactory In additiontothisbeneficiarieshaveestablishedafactory have asecuredmarketfortheirmilk. the area,whichmaynotformpartofbeneficiarieswho offs withinthesurroundingbecauseotherdairyfarmersin milk requirements.Theprojecthascreatedsignificantspin- Koffiefontein farmsuppliesabout3%ofthe cheese factory’s by emergingfarmerstosupplymilkthecheesefactory. farm. Theideabehindthefarmistoencouragedairyfarming 20 cows.Anewmilkingparlourhasalsobeenerectedonthe been donatedtotheCPA farmersbyLandAffairsalongwith Koffi for emergingfarmersinanumberofways.Forexample,the The projecthasalreadycreatedempowermentopportunities efontein farmnearDordrecht,valuedatR1.2million,has • • • • (manufacturing totextiles)aswellbiodiesel. promotion ofhighvaluecropssuchascottonandflax Besides foodprocessingthedistrict’s potentialliesinthe Organicand natural producefoods 3. 2. Specialty foods Conveniencefood(functionalfoods, value-added,heat- 1. types ofproducts: demand hasparticularlybeenincreasingforthefollowing CHDMAgricultural Potential Study, 2006 5 processing industry The latestmarketresearchperformedinthefood exhibit thehighestpotentialindistrict. need totargetandmatchtheeconomicopportunitiesthat acute thedemandforskills, soskillsdevelopmentprogrammes The higheryougoupthevaluechain,andmore satisfy theever-changingdemandofconsumers. industry astheyreducecostsandprovideopportunitiesto Technological innovationsarecriticalforthefoodprocessing processing factory. Logistics arecriticaltoplanningthedevelopmentof a food needs andtechnologicalinnovationsintheindustry. that allmembersofthevaluechainareinformedconsumer food processingindustry. Therefore,itisimportanttoensure Supply chainsarehighlyimportantforthesuccessof the and-eat foods) 5 hasindicatedthattheconsumer 31 FORESTRY, TIMBER AND WOOD PRODUCTS TIMBER FORESTRY, ASGI-SA programme has The National government to achieving identified forestry development as a key pillar and has the economic growth and development targets, across all prioritised forestry as a key sector for support as well PGDP, tiers of government. The same is true in the as in the emerging provincial industrial plan. located especially The CHDM has vast forestry resources, Sakhisizwe and Engcobo, as in and around Intsika Yethu, located in the well as existing sawmill infrastructure largely and Engcobo municipalities. Intsika Yethu a number of Plantation forestry is the foundation for wood chips, downstream processing activities including pulp and saw milling, timber board, charcoal, furniture, paper industries are at the The furniture, pulp and paper. of the value higher end of the value chain. It is this part on CHDM if chain that will have a huge multiplier effect successfully exploited. Biodiesel initiatives present huge opportunities for the huge opportunities for the Biodiesel initiatives present area where CHDM, especially in and around the Cradock the IDC have Sugarbeet SA, Central Energy Fund and see 6000ha of entered into a strategic partnership that will the construction sugarbeet being planted by local farmers, the local fuel of a huge ethanol production plant targeting agreed to use the ethanol from have market, where PetroSA – providing the the plant for blending into their fuel-stock necessary and risk-reducing off-take agreement. reach The total investment is estimated to eventually plant due to R1.5bn, with the construction of the ethanol the first product from the and start before the end of 2007, plant due to roll-out by the end of 2009. to rejuvenate The biofuels/sugarbeet programme is bound presenting the Cradock economy and surrounding areas, and it is opportunities for emerging black farmers, phase estimated that in the ethanol plant construction alone, up to 2000 temporary jobs and 500 permanent jobs will be created. This kind of massive investment also raises opportunities for the continued growth in the economic services sector (finance, retail, wholesale, etc.). It goes without saying that the CHDM with such commitments by the various partners, municipality is out to prioritise this programme and seek political championing from the highest executive authority in the Eastern Cape province. 32 • • • • • • timber. will hingeuponqualityandtreatmentimprovementofthe and woodindustriestheconstructionindustry. This Encourage thesupplychainlinkagesbetweentimber capitalise onwood-relatedmanufacturing. Facilitate technologytransferandskillsdevelopmentto harvesting withintheforests–mushrooms). rendered totheforesters(e.g.security, fencing,crop provided tothesawmillsor2)intermsofauxiliaryservices two differentways, 1)alongthewoodvaluechain,services protection, aswellleveragingSMMEopportunitiesin Addressing issuesaroundforestrymanagementand institutions, andothersisapossibility) with DWAF, Agricultureaswellresearchandacademic in ordertorakehigherincomeperyield(partnerships The qualityofthetimberproducedneedstobeimproved targeted atemergingfurnituremanufacturers. Developing statemarketsthroughprocurementpolicies underway. and timberclusterdevelopmentprogrammethatisalready Addressing theinstitutionalarrangementsaroundwood • economic activitythroughouttheconstructionvaluechain. refurbish aginginfrastructure,couldbeusedtostimulate plans toaddressbacklogsandmaintainexisting PGDP andthedistrictlocalinfrastructuredevelopment and developmentsinICT)envisagedunderASGI-SA,the Massive infrastructureroll-outs(includingenhancements sector intheCHDM: The followingcouldbeconsideredtogrowtheconstruction construction. operations, thesebrickcannotbeusedfor publicsector private constructionneeds.Duetolowqualityandillegal entire districtmunicipality, mainlytofulfilthedemandof brick-making activitiesareprevalentthroughoutthe material suchasclayandcementbricks.At present, illegal construction comeswithahugedemandfor The stronggrowthanddevelopmentinpublichousing economic infrastructure. competitiveness byaddressingcriticalshortcomingsin (including housing)industry, andmayenhance opportunities fortheestablishmentofalocalconstruction Expenditure Frameworkwillalmostcertainlypresent infrastructure budgetallocationintheMediumTerm (ISRDP) nodalstatus.ChrisHanidistrict’s relativelyhigh its IntegratedSustainableRuralDevelopmentProgramme The Districthasahighdevelopmentprofileintermsof CONSTRUCTION ANDCOALMINING 33 coal mines have begun and the results look promising. For and the results look promising. For coal mines have begun processes, communities to participate and benefit in these emerge; funding will be very critical. Some key points or private sector partnerships could Organised cooperatives, More effective mine the area more efficiently and profitably. would control of the exploitation of natural resources ensure that the limit the damage to the environment and benefit the benefits of the exploitation of such resources the community and the individuals involved. Municipality, address to Establish close working relation with the DME the access of mining licenses. solutions Financing could be addressed through alternative to banks for such as government to offer guarantees sites. financing the rehabilitation costs of the mining of proceeds Land rights and communal ground and sharing are socio-economic issues to be addressed • • • •

In terms of coal mining at Indwe/Molteno: development of The CHDM has a huge potential for the All these coal through the large Molteno/Indwe coalfields. by ECDC opportunities are presently being investigated A public and Mintek to assess viability of these coalfields. in Indwe to private partnership company has been formed for the Indwe take the process forward. Prospective rights Opportunities arising out of the EPWP programme, out of the EPWP programme, Opportunities arising maintenance especially in the sector of labour intensive road programmes. public – need Financial institutions – both private and to dealing to adopt a more developmental approach able to meet with emerging contractors as they are not that financial the stringent and ‘choking’ requirements them at best, institutions demand resulting in many of down. struggling in survivalist mode, at worst, shutting • • 34 • • • • to capitalizeon. potentially untappedtourismmarketthattheCHDMneeds to athrivingfinancialandtransportationsectorsignals further. Equally, astrongtradeandservicessector, coupled undoubtedly strengthenthetradeandservicessectoreven Significantly though,thepursuanceoftourismwill national andprovincialtrends. district‘s GGPandemploymentisconsistentwiththe municipalities oftheCHDM.Itshighcontributionto form ofeconomicactivityinmosttheeightlocal The Trade andServicessectoriscommonlyapredominant the retailandservicesector(73%), The majorityofsmallandmediumbusinessesisfoundin the districtGGPin2000and22%toemployment2004. Trade &Servicescontributesintotalbetween about16%to the skillsissuesmentionedearlierarenotaddressed. sectors, butisskillsintensive,andcouldbe constrained if District. Growthofthissectoriscriticaltogrowthother The BusinessServicessectorhasgrowthpotentialinthe to liveandwork(therebyalsosupportingtourismgrowth). boost thetradesector, andmaketownsmoreattractiveplaces (taxis, hawkers, clean-up,beautifi Municipalities couldtakealeadroleinCBDregeneration TRADE ANDSERVICES cation etc).Thiswouldhelp • • • • also impedesentrepreneurshipdevelopment. The inadequacyofafunctioningandsupportedBDSmarket operate profitably. and natureofbusinessesthatcommunitiescan startand illiteracy haveadirectandinhibitingimpactonthetypes areas withintheservicessectorashighlevelsoffunctional for mostoftheHDIlocalstobranchintohighergrowth such asIT, computersandtechnologymakesitimpossible The non-availabilityofskilledlabourorpersonsinareas the qualityoflifeisfairlylow. competition. Thelevelofjobsandincome,effectively threatened bymarketovercrowding,poorplanningand stiff the servicessector. However, theirgrowthpotentialisoften Micro enterprisesarefairlyeasytosetupandoperatewithin contributors toGGP(16%). the districtastradeandservicessectorremainsonekey phenomenon isconsistentwiththeeconomic structureof sector isacommontrendinSouthAfrica.IntheCHDM,this This dominanceoftheretailandservicessectorinSMME 35 Although the CHDM falls under the Friendly N6, it is a gateway it is a gateway Although the CHDM falls under the Friendly N6, Coast and the to two popular destinations i.e. the Wild of business and Sunshine Coast. This therefore presents a lot this increases employment opportunities for locals. In addition destination. competitive advantage of the district as a tourist statistics It has to be noted that there are no further tourism if CHDM is Even available for the Chris Hani municipal area. value to have part of the Friendly N6 it would be of more accurate statistics on tourism within the district. heritage, The potential for the expansion of cultural, the CHDM, in adventure and event tourist activities is abound The activities and virtually covering all local municipalities. that remain largely untapped range from bush-paintings, memorial and ‘great’ places related to Struggle Heroes (Cde Chris Hani – after whom the district is named is an example) and eco-tourism resorts. memorial gardens, to museums, There is a need to address the issue of a tourism branding around the and marketing strategy for the district centered unique offerings – hunting, hiking, environmental district’s tourism, and identifying niche events and draw-cards cycling contests, marathons, music shows, (e.g. festivals, canoeing, etc) that places the district on the map for annual events and happenings. • • • Chris Hani has a rich history and natural resources that resources that Chris Hani has a rich history and natural region. These can promote tourism development in the budgeted resources are untapped and are not adequately The for within the District and its Local municipalities. the Friendly district has access to a number of major routes, which link the district up with East London, N6 and the N10 the R396 linking Elizabeth, and Bloemfontein, and Port Queenstown with Mthatha and the Wild Coast. emergence as a malaria-free game farming and The region’s revenue; nature reserve location has contributed to tourism of this sector a trend that looks set to continue. The growth support the may crowd in private sector investment and emergence of supporting industry and services (transport, catering, taxidermy and retail). the District has one National In terms of tourism initiatives, 2 Nature Reserves in Lukhanji [Mt Zebra National Park], Park Lawrence De Lange], 2 Game reserves [Tsolwana, & Tsolwana, 4 Private Game Reserves and one Game Farm[ Masizakhe Game Farm: Inkwanca]. There are also new establishments that include the promotion of Heritage sites. Marketing of these products is the major challenge; there is no website available for marketing the products in the district. TOURISM • • • 36 • • • • Tourism Plan. sector planswillbeintegratedintoacomprehensiveDistrict in termsofstagesformulation.Itisenvisagedthatthese one mayfindthemunicipalitiesarenotonsamelevel sometimes itistimeconsuming.Itforthisreasonthat The planningofthesesectorplansfollowprocessesand (Responsible Tourism Planning)guidelines. their localities.TheseplansareinformedorguidedbyRTP locals areconsultedandpartoftourismplanningwith ensure thattourismplanningisdonejudiciouslyand the localmunicipalities.Inadditionthesesectorplanswill plans willspelloutallthetourismrelatedissueswithin tourism sectorplanswithinthelocalmunicipalities.These CHDM inconjunctionwithDBSAistheprocessofformulating HeritageVillagesandotherthemesites. 7. Tour buses, boatingandothertouristtransportation. 6. Tour guiding,canoeing,horse-riding,etc.bySMME’s. 5. Productionandsaleofartscrafts. 4. Maintenanceofthephysicalstructures(plumbing 3. LaundryandcleaningservicestohotelsB&Bs. 2. SupplyoffreshfoodproductstohotelsandB&Bs. 1. identifi Some businessandjobopportunitiesfortheCHDMhavebeen for newentrantsonthesupplysideofmarket. offering arangeoftouristbusinessdevelopmentservices branding, marketingandcommunicationlogistics, and, 3) offering arangeofservicestovisitingtourists, 2)tourism Centre’ needstobeprioritised,andresponsiblefor, 1) The developmentofa‘Tourism Information/interpretation tourists andworkers, generalbuildingmaintenance). services, landscaping,provisionofreliabletransportfor ed inthefollowingareasoftourismvaluechain: • vast potentialanddeepenthetourismcapitalbase. and arereceivingprioritisedattentioninordertounlockthe many potentialsitesandinitiativesinChrisHani)bythedistrict Several keytourismprojectshavebeenidentifi ox qautr Constructionofa Xonxa Aquaculture nw eotConstruction Fullyoperational Indwe Resort Remembrance Garden of CraftCentre Cradock Fore Thobelani Crafts uhe asceHrtg ieConstructionphase Project Development Lubisi Dam HeritageSite Bulhoek Massacre oqbl rjc rf eteOperational Craft Centre Emalahleni Artand CraftCentre Nonqubela Project Lodge Farm andGame Masizakhe Game rjc aeDsrpinStatus Description Village Vusubuntu Cultural Project Name site destination camp fi park the alreadyexisting transformation of of aresortand Planningphase Heritage site trips etc canoeing, boat water sporti.e. dam, craftcentre, chalets alongthe Development of Centre Art andCraft reserve facilities andgame conference accommodation, Construction of and sold will beexhibited where localcraft and craftshop accommodation of chaletsfor Construction shingrecreational Planning phase Planning phase support involvement and lack ofcommunity it collapsed,dueto its revivalstageas The projectison completed Construction accommodated. of guestswillbe season fi by thefestive operational soon, phase, buttobe On construction phase. the implementation completed, itison Construction ed (amongstthe rstgroup 37 nancial nancial nancial injection nancial nalised nalised nalised nalised nalised nalised nalised nalised Business Plans still to be fi Business Plans still to be fi Business Plans still to be fi The project has kicked off the ground with fi assistance from DBSA Development of Tourism sector and businessplans sector and businessplans Development of Tourism are still to be fi to be refurbished, upgrade electricity & product development Business Plans still to be fi Business Plans still to be fi Progressing well but needs some fi UN ECDC ECDC ECDC ECDC DBSA DBSA DBSA DEAET DEAET DEAET DEAET DEAET DEAET DEAET Health The DEAET projects – many of which are partnerships – many of which are partnerships The DEAET projects in support of with other stakeholders in the district – are efforts need to job creation and development, but these and local be supported by the efforts of other provincial building especially in the area of government departments, and maintaining infrastructure. 25 000 DEAET Business Plans still to be fi 100 000100 DEAET 000 100 000 100 000 100 100 000 100 300 000 DEAET500 000 Business Plan still to be fi 400 000 975 000 330 000 250 000 200 000 DEAET needs Production equipment purchased. Factory Allocation (R) Source 1 000 000 9 000 000 1 200 000 1 460 000 2 450 000 Engcobo LM, Ward 8Engcobo LM, Ward Dordrecht, Emalahleni 8 & 10 LM, Wards 650 000 Emalahleni LM, CHDM Ward 16 Emalahleni LM, Tshatshu, 1 CHDM, Ward Cradock & Lady Seymour, Frere, CHDM, UKDM, Provincial Intsika Yethu Tsomo, 14 LM,CHDM, Ward Middleburg, Hofmeyer, Engcobo, CHDM, UKDM, Provincial Ezibeleni, Lukhanji LM, Wards 1&2 Hofmeyer, Tsolwana, Tsolwana, Hofmeyer, CHDM LM, Inxuba Yethemba 3 CHDM, Ward Mlungisi, Queenstown, 23, CHDM Ward (Poultry and and (Poultry (Construction) (Planting of trial (Planting of trial (Providing health care (Providing health care (Agro-processing) ciation Programme ciation Programme (Extraction of natural juice and export (Extraction of natural juice and export market) (Fresh produce) (Mining) (Fresh produce) CHRIS HANI PROJECTS: 06/07 Project name Vlekpoort Development) (Tourism (Manufacture of wool & mohair Locationproducts) Budget Progress and fresh produce to the affected and and fresh produce to the affected and infected) crops for extraction of natural oils) vegetable garden, Arts & craft, HIV & vegetable garden, Arts & craft, HIV & Aids projects) Elitheni Coal Mine Elitheni Coal Mine Irrigation Scheme Tshatshu Eastern Cape Aloe Ferrox Benefi Eastern Cape Biodiesel Programme Lomso 10.Ikhwezi 11.Khuthalani Agricultural Agricultural 11.Khuthalani Co-op Umsobomvu Co-op Dev. Progressive Disability Construction Hydroponics Project Hydroponics Project Sinethemba for HIV Children and Youth DEAET Economic Development Initiatives Initiatives DEAET Economic Development in the Chris Hani District Environment Economic Affairs, The Department of are involved in various job creation and and Tourism the following developmental projects within the CHDM. On indicate that page, the major projects are listed. The projects economic the prioritisation is consistent with the sectoral above. potential and competitiveness raised in detail 38 the expenditureandrevenuefromnon-provincialsources. environment inChrisHani.Theseamountsareadditionto likely tocontributeamoreenablingsocialandeconomic have beenbudgetedforoverthemediumterm,andthatare provincial physicalinfrastructuredevelopmentplansthat This sectionofthedistrictprofileattemptstosummarise services. the poorstateofinfrastructureandinfrastructure-related and thefailuretoexploiteconomicpotential,hasbeen contributing tothelowlevelofeconomiccompetitiveness, It hasbeenrepeatedlysuggestedthatoneofthemajorfactors EPWP. ThereisaneedforDistrictEPWPPlan. District IDP’s containverylittle(ifany)informationon and incomegenerationmultiplierreactions. thereby furtherstimulatingchainsofemploymentcreation to createemploymentandincomesthroughEPWP, and allocations forpublicinfrastructure.Thesecanbeused Present MTEFbudgetsreflectlargeincreasesinfiscal BUILD ANDMAINTAIN INFRASTRUCTURE • • • • scale farmers. and profitabilityforfarmers, especiallyemergingand small developments thatseektoenhanceproductivityoftheland Engcobo (R7m)toInkwanca(R0.2m).Thesearepositive all 8localmunicipalareas, withallocationsrangingfrom and soilconservationworksintheChrisHanidistrictacross sheds, diptanks, stockwater/boreholes, irrigationsystems new infrastructuresuchasstockholdingfacilities, storage Furthermore, thedepartmentwillspendR15m on other district. economically depressedbutpotentiallyviablepartsofthe the needforinfrastructureasbeingfargreaterinmore This distributionofthefencingbudgetgenerallyreflects spent inLukhanji(R0.4m)andEngcobo(R0.5m). (R1.5m) andEmalahleni(R1.4m),withsmalleramounts amount ofthefencingbudgetspentinSakhisizwe municipalities costinguptoR9million,withthehighest fencing structuresoverthethree-yearperiodinall8local million intheChrisHaniDistrict.Thiswillincludenew provincial departmentofagriculturewillspendoverR120 Over thecurrentmediumtermperiod(06/07 –08/09),the economic potential. the leveloftargetedinfrastructurethatcanunleashthis various recentstudies, isundoubted,butdependenton output. Thepotentialforagriculturalexpansion,citedin spite ofwhatmayappeartobeadecliningsharedistrict Agriculture isthebackbonetoChrisHani District, in Department ofAgriculture PROVINCIAL DEPARTMENT DEVELOPMENTPLANS 39 nancial year In light of these backlogs, and recognising the key enabling the key enabling and recognising In light of these backlogs, and social role that transport infrastructure has for economic department development, the provincial roads and transport medium term has allocated at least R275m over the current being spent in the current fi cycle, with R105m and the balance over the following two years. (06/07) are Although no new road infrastructure developments over the next planned by the provincial department is significant three years in the Chris Hani district, there maintenance rehabilitation and upgrading, as well as routine of existing roads that is planned. road in the The rehabilitation of, 1) the Cala – Lady Frere R50m, 2) the Emalahleni local municipal area at a cost of area at a Idutywa – Engcobo road in the Ngcobo local municipal road at a cost of cost of R0.6m, 3) the Lady Frere – Queenstown is underway. R1.5m is budgeted for and progress in this regard roads to ‘great Furthermore, the rehabilitation of access leisure resorts places’ as well as access roads to tourist and R4.5m over the within the district has been budgeted at medium term cycle. These infrastructure investments will have the impact of contributing to tourism and services growth that have been identified as key economic sectors in the Chris Hani district. • • • •

Department of Roads and Transport Another key element of required infrastructure development in the district is the road network. Although Chris Hani has relatively good interconnectivity to the major centres in the province and beyond, there is still quite a large backlog in terms of connectivity between areas within the district, as well as access roads within various local municipal areas. In terms of the departments’ refurbishment/upgrading refurbishment/upgrading In terms of the departments’ anchor the budget, the expansive irrigation schemes that the Chris Hani agricultural development programme in in light of the district, are set to receive further investment these schemes management and maintenance problems profile. have experienced, as highlighted earlier in the of R27m Over the current medium term period, a total amount – Ncora (R8.2m), will be ploughed into the four major schemes local Yethu Qamata (R7.4m), Bilatye (R5.8m) – in the Instika municipal area, as well as Shilo (R5.5m) in Lukhanji. through The massive food programme that is administered mainly four the provincial department of agriculture covers and Lukhanji, Engcobo, local municipal areas: Instika Yethu, for the medium Sakhisizwe. The total provincial allocation In addition, term for this programme in the district is R20m. Chris Hani is set the Siyazondla food security programme in vegetable to receive R5m over the medium term, comprising and piggery initiatives. poultry, gardens, • • • • 40 • • • • of Park Homeshas beenbudgeted. Centre. Inaddition,anamountofR0.1mforthemaintenance R5m whichwillbespentontheCofimvabaMulti-Purpose Hani districtoverthemediumtermamountstojustunder The infrastructurespendofthisdepartmentintheChris Department ofSocialDevelopment mentioned above. amount isbudgetedinadditiontotheplannedexpenditure and 4803kmofgravelroad,overthemediumterm.This of routinemaintenanceon666kmsurfacedroads, The ChrisHanidistrictwillalsobenefitfromR80mworth upgrade works. agriculture interventionsandtheroadmaintenance more profitable.Thereiscomplementaritybetweenthe road upgradeswillmaketheagriculturalinterventions have thelargestmaintenancebacklogs, andtheenvisaged These arethelocalmunicipalareasthatdeemedto areas: Emalahleni,InstikaYethu, Ngcobo,andSakhisizwe. for maintenanceofroadsinfourprioritisedlocalmunicipal budgeted bytheprovincialroadsandtransportdepartment An amountofR109m overthemediumtermhasbeen stimulating thelocaleconomy. their spendingandconsumptionpower, andtherebyfurther more moneyinthehandsoflocalcommunities, increasing given thelabourintensivenatureofprogramme,itplaces become unusableinaveryshortspaceoftime,andsecondly, degradation ofexistingaccessroadsthatwouldotherwise key purposes.Firstly, itensuresmaintenanceandavoids current mediumtermcycle.Thisallocationservestwo programme inChrisHanihasbeenallocatedR8mforthe The Vukhuzakelabour-intensiveroadmaintenance • • • • • schools andcolleges, aswellroutinemaintenanceworks. spend isconcentratedinupgrading/rehabilitationofexisting district, implyingthattheentireeducationinfrastructure No newconstructionofschoolsorcollegesisplannedinthe over R315m. the currentmediumtermexpenditurecycle,amountingto schools andFETcollegesintheChrisHanidistrictover budgeted fortheupgradingandrehabilitationofover 190 The provincialdepartmentofeducationhasplannedand Department ofEducation 08/09 financialyear. allocated forthe07/08 financialyear, andR44minthe allocated inthe06/07 financialyear, R42mhasbeen public worksdepartment.AnamountofR31m hasbeen R120m ininfrastructureinvestmentfromtheprovincial The ChrisHanidistrictisgoingtoreceiveapproximately Department ofPublicWorks further R1.5min08/09. local municipality, whereR2mwillbespentin07/08, anda The projectistheCofimvabalibraryinInstikaYethu by thisprovincialdepartmentfortheChrisHanidistrict. There isoneinfrastructureprojectplannedandbudgeted Department ofSports, Recreation,ArtsandCulture social infrastructuredevelopments. purpose centreinCradock(R4m).Thesewouldbegood Frere andCala(atatotalcostofR5m),newmulti- cost ofR6m),newcommunitydevelopmentcentresatLady for newserviceofficesinEngcoboandWhittlesea(atatotal The provincialdepartmenthasplanned,butnotyetbudgeted 41 ghting poverty, as no economy can as no economy can ghting poverty, cant increases in public expenditure, Department of Health Department of Health has planned and budgeted The provincial health department spending of R375m in for a total health infrastructure rising from the current medium term expenditure cycle, in 06/07 R90m for the revamp of 40 clinics and hospitals health facilities to R165m targeted for the revamp of 36 then falling to R120m for revamping 23 health in 07/08, facilities in 08/09. spent on clinic The entire amounts cited above will be not any new and hospital revamps and upgrading, and Hani allocation institutions. The proportion of the Chris spend, relative to the total provincial health infrastructure small share ranges from 5% to 7% - reflecting a relatively that the district receives relative to other districts. in per capita The provincial health infrastructure spending to R180 in in 06/07 the Chris Hani district rises from R106 08/09. and then down to R128 in 07/08, on the part of These infrastructure expenditure outlays the Chris Hani the Eastern Cape provincial government in district represent signifi in private but this unfortunately is not matched by increases investment. An investment promotion strategy should be incorporated is a key element of the growth and development we need to strategy of the Chris Hani district. And obviously, redouble the efforts in fi grow sustainably amidst a sea of poverty. • • • • nancial year (06/07), the district is receiving the district is receiving nancial year (06/07), In the current fi just under R50m for the upgrading of 34 schools and colleges, upgrading of 34 schools and colleges, just under R50m for the for the approximately R90m in 07/08 and is set to receive and R175m upgrading of a further 48 schools and colleges, schools. 115 in 08/09 for the upgrading of approximately (rehabilitation/ The increase in education infrastructure medium term – upgrading) spend in the district over the analysis - is increase in terms of absolute, relative and real skills challenges consistent with the growing education and faced in the district. of total provincial education proportion Chris Hani’s at 12% in 07/08, infrastructure spend lies at 8% in 06/07, contextualising and a targeted 19% in 08/09 – reflecting and expenditure the growth in education infrastructure planned over time. in the Chris The per capita education infrastructure spend and in 07/08, to R105 Hani district rises from R56 in 06/07 increases, then to R190 in 08/09, representing phenomenal spend per albeit off a low base, in infrastructure education person in the district. Hani over the The budget for routine maintenance in Chris medium term amounts to a total of R33m – R7m in 06/07, are and R13.5m in 08/09. These amounts R12.5m in 07/08, 1) by maintaining and ‘protecting’ crucial in two respects, existing assets ensuring guarantee of returns well into the future, and 2) direct and indirect cash injections boost local as routine maintenance activities are generally economies, labour-intensive. • • • • • 42 farming industry. experiencing duemainlytothedeclineincommercial which illustratestheeconomicdeclinethatthistownis areas inthedistrict.HofmeyrhaslowestHDI,at0,39, primarily duetothesetwoareasbeingthelargesturban highest HDIat0.60followedbyCradock0.48.Thisis From thetablebelow, itisclearthatQueenstownhasthe below indicatestheHDIinChrisHanidistrict. expectancy, literacyandincomelevelstatistics.Thetable longevity, knowledgeandstandardoflivingbyutilizinglife of developmentasitmeasurestheoverallachievementsin The HDI(HumanDevelopmentIndex)isareliableindicator HUMAN DEVELOPMENTINDEX FIGHT POVERTY: SPECIAL PROGRAMMES ncb goo0.41 Elliot Ngcobo LadyFrere Sakhisizwe Cofi Queenstown Engcobo Molteno Emalahleni Hofmeyr Intsika Yethu Lukhanji Cradock Inkwanca Tsolwana Inxuba Yethemba HUMAN DEVELOPMENTINDEX(HDI) LocalMunicipality Cala Wodehouse Indwe Tsomo Whittlesea Sterkstroom Tarkastad Middelburg mvaba Magisterial District Development 0.45 0.47 0.50 0.49 0.45 0.47 0.42 0.40 0.60 0.47 0.45 0.47 0.39 0.52 0.48 Human Index income andaccesspovertyremainsentrenched. Development IndexintheDistrictoverlastdecade, Although therehasbeenimprovementintheHuman stagnation. small urbanareasareexperiencingeconomicdeclineor Administration townswhichindicatesthatallofthese indicate asimilarHDItothoseoftheformerCapeProvincial It isinterestingtonotethattheformerhomelandtowns POVERTY INDEX 43 HOUSEHOLD INCOME fairly low in the District, reflecting Household incomes are base for most low levels of affordability and a low revenue (33%) of the of the municipalities. A large proportion Chart 6 residents in Chris Hani have no regular income. in the District. illustrates the annual incomes of households outweighs The number of residents who have no income those in any other category of income. impact on the The low levels of income have a serious Therefore affordability of services rendered by municipalities. methods the municipalities should find more cost effective without electricity and sanitation, of providing free water, residents. increasing the financial burden of wealthier to readjust National and Provincial governments will have that they do grant allocations to municipalities to ensure free services not become bankrupt as a result of distributing current which they cannot afford due to their to indigents, precarious financial positions. %% Local Municipality Yes No WHETHER HOUSEHOLD MEMBER WHETHER HOUSEHOLD MEMBER IS RECEIVING SOCIAL GRANT Inxuba YethembaTsolwanaInkwancaLukhanjiIntsika Yethu 65.1EmalahleniEngcoboSakhisizwe 69.3 34.9 62.2 78.9 54.4 30.7 56.4 37.8 21.1 73.6 45.6 51.3 43.6 26.4 48.7 \Source: RSS, 2006 \Source: As a result of widespread poverty in the District, malnutrition IDP states that is prevalent. For example, Intsika Yethu’s gives child malnutrition rate is 25%. Reading the IDP’s the impression that the PGDP Comprehensive Nutrition Programme is not happening. There is probably a need for better co-operation with DoE, DoH, DSD and DoA in this respect, and the preparation of a District Malnutrition Plan. SOCIAL GRANT DEPENDENCY Assessment of Services Delivery According to the Rapid extremely high (2006) Chris Hani households indicate an This trend is more pronounced level of grant dependency. (79%) and in the former homeland areas of Instika Yethu between Engcobo (74%) with the remaining areas reporting one member 52% to 69% of households where at least accesses a social grant. 44 municipalities: the followingasconstraintstheyfaceindealingwith labour, farmers, civilsociety–have,amongothers, identified Stakeholders withintheChrisHanicommunity–business, and funding/budgetsrequiredtoimplementthepriorities. land use,zoning,plansforthesectors, resourceslikestaff to, amongstotherissues, traderegulation,procurement, bye-laws, policiesandperformancegoverning/inrelation It wasidentifiedthattheMunicipalitiesneedtoaddress local areas. to unlockthesocialandeconomicpotentialintheir up tospeedaddresstheprioritiesinterventionsrequired have raisedissuesabouthowmunicipalitiescanbebrought Engagement meetingsbetweentheCHDMandLM’s MUNICIPAL CAPACITY ANDCO-OPERATION • • • • • • in theawardingofbids/tenders. procurement, andaperceptionofthelacktransparency a lackofunderstandingstatutoryrequirements for hampered bylongperiodstowaitbeforebidsareawarded, conducive environmentforbusiness(e.g.surety),andis Supply chainmanagementpolicydoesnotcreatea towards combatingcrime Lack ofeffectivepolicing,andalackcoordinatedstrategy and landuse. housing development,anduncertaintyaroundlandclaims Avoidable delaysinlandservicingandpreparationfor businesses, andsupportforinformaltraders Lack ofaclearandsimpleIncentivestrategyfornew cleanliness Insufficient basicinfrastructuree.g.roads, publictoilets, in thedistrict strategy totacklethegrowthanddevelopment challenges local government-labourforumtoshareinajointvisionand business opportunities.Thereisaclearneedforbusiness- government impedingonaccesstoinformationexisting Lack ofcommunicationbetweenbusinessandlocal 45 MUNICIPAL-PROVINCIAL MUNICIPAL-PROVINCIAL CO-OPERATION DEPARTMENTS/AGENCIES of co-operation show some evidence The District IDP’s and this co-operation with Provincial Departments, as already However, probably Improved as a result of ISRDP. co-operation mentioned, there are several areas where seems to be lacking. Departments Municipalities would be assisted by Provincial as the LM’s always planning spatially (using DM and DM’s/ geographic units), and by Departments consulting Plans. level when preparing their Strategic at District LM’s MUNICIPAL-NATIONAL CO-OPERATION DEPARTMENTS/SOE’S Co-operation with relevant National Departments/SOE’s is the need to could also be improved. A particular case backlogs. work with Eskom regarding the electrification IDP ALIGNMENT give attention to building their All CHDM Municipal IDP’s The filling of critical vacancies own delivery capacities. are measures to (e.g. Municipal Managers etc) is critical, as attract and retain critical skills. over the last few years and are generally have improved IDP’s public aligned to PGDP in terms of agrarian transformation, development, sector transformation, human resource infrastructure economic diversification and tourism, provision, and fighting poverty. gaps in the context of there are some important However, malnutrition). provincial alignment (e.g. housing, EPWP, integrate the activities of all three levels of do not yet IDP’s Government (such as Biofuels (ASGISA). attention to The Chris Hani IDP devotes considerable municipalities. building its own capacity and that of the local more attention could be given to how to improve Perhaps co-operation with other arms of Government CO-OPERATION MUNICIPAL-BUSINESS CHDM and On 18/19 October 2006 Local Business met Lukhanji LM to gain a better understanding of how to promote a better business environment. The two highest priority issues identified by the participants were the need for better communication between Business and Municipality (22 “votes”), followed by the need to improve infrastructure roads and municipal cleaning water, (reliable electricity, services)(16 “votes”). Problems with municipal regulations This seems to indicate (“red tape”) only received one “vote”. that there is a need for municipalities to give a higher priority to Improving communications with local business. • • • • • 46 to enhancingacceleratedandsharedgrowth. contributions ofarangeactorsandroleplayerswithview partnerships andharnessingthecollectiveenergies The districtGDSpresentsauniqueopportunityforconstructing ongoing dialogueandfeedbackamongthesocialpartners. the decisionsreachedandgovernanceframeworkfor mechanisms andprocessesformonitoringprogresson in theDistrict.ThisAgreementshouldalsosuggest and responsibilitiestoaccelerategrowthdevelopment a “FrameworkAgreement”thatoutlinesinstitutionalroles The outcomeoftheSummitshouldbedevelopment (under Section5). the detailedpriorityindustryactionplansmentionedabove and themunicipalitiesneedtoworktogetherdevelop Business. Theprivatesector, business-supportagencies operation withotherarmsofGovernment,and management capacities, particularlywithrespecttoco- motion processestoimprovemunicipalplanningand The Summitispotentiallyveryimportantforsettingin sector projectsinthepipe-line. increasing, thereseemtobeveryfewsubstantialprivate of concernthatwhilepublicinvestmentintheDistrictis been quiteslowsofarinaddressingtheseproblems.Itis of povertyandunemployment,progressseemstohave The CHDMisclearlygrapplingwithveryentrenchedproblems CONCLUSION . Processedagriculturalgoodsoffersignificantlymore 4. Agricultureremainsattheheartofdistricteconomy 3. Naturalresources, includingcoal,clay, sandandquarries 2. Water resourceslocatedintheDistrictcouldbe 1. competitiveness intheChrisHanidistrict: economic potentialandjobcreationaswellenhancing Generally speaking,thereareeightkeydriverstounlocking to buildabetterlifeforall. their roleandcontributetothecommonnationalobjective all localities, andensurethatallsectorsofsocietyidentify The districtGDShasthepotentialtounlockof the District of theprocessingandmanufacturinggoodswithin is thereforeimportanttoconsidertheencouragement economic valuethanthenon-processedproducts.It a) ForestryDevelopment,andb)Bio-fuels rolled outbybothNationalandProvincialgovernment: contribute towardstwomegaprojectsthatarebeing be moreemphasisedthanthroughitspotentialto to thedistricteconomy. Anditsimportancecouldnot in spiteofitsstagnantandevendecliningcontribution could bebetterexploited. opportunities. better usedforagriculturaldevelopmentandtourism 47 ed key growth sectors will further enhance the ed key growth and developments in ICT) envisaged under ASGI-SA, ICT) envisaged under ASGI-SA, and developments in district and local infrastructure the PGDP and the maintain development plans to address backlogs and be could existing and refurbish aging infrastructure, the used to stimulate economic activity throughout construction value chain. throughout all sectors of the local economy. identifi Area. locational competitiveness of the Chris Hani District 6. (including enhancements Massive infrastructure roll-outs 7. Local procurement could offer many economic opportunities 8. Investing in, and aligning skills development to the integrated approach must be taken in the promotion must be taken in the promotion integrated approach potential tourism sites. Areas of and development of areas significance include: areas of natural beauty; as rock art of historical and cultural interest (such diverse and the Anglo South African battle sites) and; tourists to engage in which may attract ecosystems, and activities such as mountain biking, game hunting white water rafting. 5. An is an untapped resource within the District. Tourism 48 PP ExpandedPublicWorks Programme EPWP EIA Environmental DepartmentofWater AffairsandForestry ECD Early DivisionofRevenueAct DWAF Impact Childhood DORA DoL Department Assessment Development DoH Department of DoE Department DepartmentofMineralsandEnergy of DoA Department Labour of DME Health of DM District DepartmentofEconomicAffairsEnvironment Education Agriculture DEAET Municipality DepartmentofEnvironmentandTourism DevelopmentBankofSouthernAfrica DEAT ChrisHaniDistrictMunicipality DBSA CHDM ChrisHaniRegionalTourism Association CHARTO CASP Comprehensive BDS Business Agriculture AcceleratedandSharedGrowthInitiativefor AdultBasicEducationandTraining Development ASGISA Support ABET Services ACRONYMS and Tourism (Provincial) (National) Programme South Africa ME SmallMediumandMicronEnterprises SOE State SMME Owned RTP Responsible RapidServicesSurveyconductedbyFISER(Fort Enterprises Tourism RegionalIndustrialDevelopmentStrategy RSS Planning RIDS Provincial GrowthandDevelopmentPlan PPP Public NationalWool GrowersAssociation PGDP National GrowthandDevelopmentSummits Private NWGA NGDS Partnerships MIG Municipal LM Local Infrastructure LED Local IntegratedSustainableRuralDevelopment Municipality Grant Economic ISRDP IDP Integrated Development IDC Industrial HDI Human Development GrowthandDevelopmentSummits FurtherEducationandTraining HBC Home-Based Development Development GDS Plan Care FET Corporation Index for theOfficeofPremier Hare InstituteForSocio-economicResearch) Programme Tel.: +27(0)406351590|Fax:1571 E-Mail: [email protected]|Internet:www.ecsecc.org eastern capesocio-economicconsultativecouncil

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