UNIVERSAL SERVICE AND ACCESS AGENCY OF

WRITTEN REPRESENTATION TO

NATIONAL INTEGRATED ICT POLICY GREEN PAPER

24 MARCH 2014

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INTRODUCTORY REMARKS

The Universal Service and Access Agency of South Africa (Agency) welcomes the process of the holistic review of the National Integrated Information Communications & Technologies (ICT’s) policies by the Department (of Communications). The process of the development of a National Universal Service and Access Strategy (“National UAS Strategy”) by the Board of the Agency coincided with the establishment of ICT Policy Review Panel by the Minister (of Communications) to facilitate a review of existing policies and propose changes to them following consultations with the public.

The development of National UAS Strategy was done in line with legislative provisions of section 82(4)(b) of the Electronic Communications Act, 2005 (Act No. 36 of 2005) (“ECA”)which requires the Agency to undertake such investigations into matters relating to its functions as it may consider necessary. The Board of the Agency as an Accounting Authority of the Agency in terms of section 49(2)(a) of the Public Finance Management Act, 1999 (Act No.1 of 1999) (“PFMA”) as part of its oversight responsibility has developed turn -around strategy for the Agency in order to the overall objects of attaining the goals of universal service and access are obtained by all in the Republic.

The overall project objectives on the development of a National UAS Strategy are as follows:

a. Develop a Universal Service and Access Strategy that will inform the Agency and its stakeholders on programmes, policies and the concomitant modus operandi to ensure that ICTs are available, accessible and affordable to all citizens of the country.

b. Identify, assess, qualify and quantify gaps. Review implementation models for achieving digital inclusivity against pre-determined indicators.

c. Position the mandate in the greater ICT landscape analyzing and benchmarking against international norms and standards.

d. Advise on the optimal operational arrangement to deliver on the strategy and implementation plan required to bridge the divide.

e. Position the Agency as a facilitator of universal service and universal access programmes and projects in the country.

f. Ensure coordination of universal service and universal access programmes and projects in order to address the lack of coordination that characterizes the current scenario.

g. Advise on suitable rate and parameters of contribution to the Universal Service and Access Fund.

The right to communicate is a fundamental right enshrined in the Constitution of the Republic of South Africa (Constitution), the supreme law of the land. The Constitution, passed in 1996, establishes the right to freedom of expression, including the “freedom to receive and impart information or ideas”. The freedom of expression has been interpreted to mean not only the right to speak and to be heard, but also the right to access the means to speak and to be heard.

The state of the country’s ICT infrastructure will not be complete until it reaches all locations and people throughout the Republic, and provides reasonable and affordable to the full range of traditional and emerging information and communications technologies and services, taking into account the different needs among the user populations, including considerations of gender, age, ethnic, linguistic distinctions and disabilities.

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The Agency as part of its legislative mandate on bridging the digital divide has taking the full advantage of the window of opportunity being presented by the National Development Plan, 2012 and the South African Connect Broadband Policy, 2013 on ensuring universal access to broadband by all citizens by 2020. A nationally representative household and individual survey conducted in 2011 by Statistics South Africa reveals that 24.50% of households have access to computer and whereas 19.70% households have access to Internet Access and this in indicative of huge disparities in terms of access to internet to a country with approximately 52 million people. This has necessitated the Agency to embark on a process of developing a National UAS Strategy that would ensure every South African has universal access to broadband by 2020.

Acknowledging the fact that broadband is an economic infrastructure that has transformative effects and thus critical to poverty reduction, increased social inclusion and the creation of a better life for all, the advancement of universal service and access to broadband by broader public will enable everyone to create, access, utilize and share information that will enable them to make a meaningful contribution to the development of the country and improve their quality of life. The National UAS Strategy will ensure greater participation of the South African citizen on the information society as it would create an enabling environment that would result in fast adoption and equitable distribution and access to broadband services.

The National UAS Strategy has considered the social, economic and political ecosystem in finding the best possible means to address the access gaps. The process will also assist the Agency in identifying its niche in the ICT market as it is only mandate to serve the under-serviced areas and needy persons. As such a thorough exercise has been undertaken in order to identify, assess, qualify and quantify access gaps. The analysis of access gaps is based upon the widely established concept of access gap analysis theoretical framework. The theory asserts that there are several different levels of access to a given telecommunications network or service, at any particular moment in time, within a designated geographic market area, (e.g. region, province or entire country). A detailed analysis of existing level of access, market gap and market frontier and access gap is being conducted in order to determine the status and potential of the various market segments within a country. The findings inform both the communications industry and especially policy makers and funding institutions (in this case USAASA and National Treasury) to understand the likely evolution of the market, where subsidy funds should be strategically targeted.

A strategy to close the access gaps (Implementation Plan) based on social, economic and political findings of the situational analysis and quantification and mapping of access gaps which is linked to the National Development Plan, the South Africa Connect Broadband Policy and the country’s international commitments towards to World Summit on the Information Society (WSIS) and Millennium Development Goals (MDGs) has been developed.

The National UAS Strategy will permit full participation in building Information Society; promote national, political, economic and socio cultural cohesion; promote economic development; encourage more balanced distribution of the population.

Therefore, the National UAS Strategy will be the premise for the USAASA’s response towards the published Green Paper on National Integrated ICT policy.

USAASA Historical Context

Despite the country (Republic of South Africa) is celebrating the 20 (twenty) years in democracy, access to ICT’s is still a challenge to many South African citizen in particular those residing in under-serviced areas and remote-rural villages. Access to a reliable connection and affordable broadband services remains a remote possible in the near future for inhabitants in under-serviced areas and remote rural villages. The high rate of unemployment rate in the country coupled with the high cost of communications services has contributed rigorously towards the poor uptake and usage of communications services in under-serviced areas and remote rural villages. The access gap remains as wide as it was since the advent of democracy in the country. This has inverse impact on the economy outlook of South Africa as access to broadband by the general populace cannot facilitate the economic

Page 3 of 122 competitiveness of the country on the global economic front. Broadband is widely recognised a catalyst for socio- economic development and research has discovered that there is a positive relationship between the high penetration of broadband services and the socio- economic development. The countries that have a high penetration of broadband services have a higher Gross Domestic Product (GDP).

The ICTs are enablers for socio-economic and sustainable development, and further they are a prerequisite for building an Information Society. As the information revolution has increasing impact globally, the issues of who has access to ICTs have great importance. Connection to the ICT networks and services influences the people’s access to jobs, education, health care and full participation as a citizens. The convergence of telecommunications, computers, information production and broadcasting is largely determining how societies are structured.

Access to ICTs is fundamental right that has been enshrined on the Constitution of South Africa, which is a Supreme Law. The Bill of Rights spells out some of the fundamental rights of individuals and it further enshrines the rights of all people in the country with respect to the environment, health care, education and access to information; and affirms the democratic values of human dignity, equality and freedom. The Constitution has a particular relevance to communications as discussed by reference to the Bill of Rights. It could be argued that access to ICT networks and services is a basic right to all citizens to communicate, which is essential for full participation in the community and as a basic element of the right to freedom of expression.

Therefore access to Internet has become so important that the United Nations Human Rights Commission has declared that Internet is a basic human right and South Africa needs to ensure the Constitution of the Republic of South Africa is amended to ensure access to broadband is a human basic right in the country. This will assist in terms of government priority planning as broadband will be treated as a basic service like water, sanitation and roads.

The (Universal Service) Agency was mooted during the green paper of process of the telecommunications policy in September 1995. The government at the acknowledged that universal service is a global concern and it is located within a unique context in the country. The discovery of huge disparity of access gaps in the country which exists side by side with a developed communications technology sector. Nowhere in the world both in terms of access and ownership of communications sector concentrated so heavily in one population group (white minority). Therefore the creation of a Universal Service Agency was a South African response towards the huge disparities in terms of access to communications services by the broader South African general populace. The Agency was intended to redress the historical imbalances which were legacy of regime. The members of historically disadvantaged communities and particularly those in rural areas were the immediate targets for the delivery of universal service.

The Agency was established as a Schedule 3A entity with a Board being responsible or the oversight of the Agency. For the Agency to obtain its statutory objectives of closing the access gaps in the country, a Universal Service and Access Fund (Fund) was established. The Fund is fully funded through the National Revenue Fund and this makes the Fund to be a National Public Entity in terms of the PFMA. The National Public Entity is a fund established in terms of national legislation which is fully or substantially funded either from the National Revenue Fund, or by way of a tax, levy or other money imposed in terms of national legislation; and accountable to Parliament.

The Fund has been primarily funded through levies imposed on licence service provider by the Independent Communications Authority of South Africa (“Authority”) which must not exceed 1 per cent of the licensee’s annual turnover or such other percentage of the licensee’s annual turnover. However the license service providers have found loopholes on the provisions of section 89 of the ECA which requires them to pay a prescribed 0,2 percentage of annual contributions of the licensee’s licensed activity to the Universal Service and Access Fund. The operators have found innovative means in terms of reporting for the licensed activities and as such the contributions have been substantially reduced and as such the collections towards the Fund have dropped from R 255 341 000 (2010/2011) to R 155 084 000 in 2012/2013.

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The below tabled indicated the collections towards the Universal Service and Access Fund since 1998

USAASA & USAF SPECIFIC COMMENTS TOWARDS THE GREEN PAPER PROCESS

Chapter 9: Universal Access and Service

Policy questions

1. What strategies for increasing the affordability of access to ICTs, particularly for low-income users, should be adopted and how should the cost of providing services to needy communities, government institutions particularly schools and clinics be reduced?

Affordability of access to ICTs is key to ensure equitable distribution of ICTs services to all citizens of the country. This would ensure meaningful and full participation of all citizens in the knowledge economy society. The Universal Service Funds can be used as means of ensuring affordability to ICTs.

The Agency is proposing that there should be an asymmetric interconnection regime that should be adapted by the regulatory in particular to calls originating from the under-serviced areas and remote rural areas which are characterised by high levels of unemployment and living below poverty line. This persons need to be given discounted call rates or internet usage rates. Also the operators need to be encouraged to share infrastructure in the under-serviced areas. The facilities sharing and leasing regulations which encourage network neutrality and the open access principles should be encouraged. This would drive down the cost of communications services in the under-serviced areas. The National Roaming Agreement needs to be reviewed by the Regulator and government needs to make a policy determination that will ensure the network service providers won’t be charging huge prices for the users of the other networks where the dominant operators have network presence.

The Agency also proposes the following model of connecting the under-serviced areas which emanates from the competitive bidding process for universal access and service tenders to be awarded in under-serviced areas with a view of deploying broadband infrastructure and services.

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The Agency believes the funds in the Universal Service Funds can be used for network extension of backbone network to the regional centres where there is no backbone. The above diagram depicts the connectivity model proposed by the Agency using a competitive bidding process. From the research conducted by the Agency, it is evident that there is enough backbone network expansion between major cities in the country and in the regional centres that is no backbone network.

The Agency can play a pivotal role by inviting network operators through a public competitive bidding process to deploy the backbone network extension through a least cost subsidy model.

When the backbone network extension has reached a regional centre (as indicated in the above diagram), the local access networks can be connected to the extended backbone network in order to ensure the presence of the broadband service in the regional centre. This can be achieved through a competitive bidding process using the subsidies in the Universal Service and Access Fund.

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The backbone network can be further extended to the remote rural areas in the country (as indicated in the above diagram). When the backbone network reaches a village hub can be used to create either a wifi hot sport or deployment of local access wireless networks in the form of 3G. The schools, health facilities, government offices, local business and homes can be the anchor tenants to the network and this can assist on the sustainability of the network in the long term which will ensure the affordability of broadband services by people residing in remote rural villages.

The Agency has invited service providers to partake in an open competitive bidding process for deployment of broadband infrastructure in under-serviced areas using the least cost subsidy model. Two areas that are listed as under-serviced areas through an ICASA regulation which are Emalahleni local municipality in the and Msinga local municipality in KwaZulu-Natal were the target areas. The Agency is using the above quoted model for the competitive bidding process and MTN which is the winning bidder is using this model to connect communities and institutions in the under-serviced areas.

2. How should government take responsibility for all types of UAS across the ICT sub-sector, telecommunications, broadcasting and postal services?

The government needs to start of process of revising the contributions towards the Universal Service and Access Fund. USAASA has undertaken a process to identify and cost an access gap in the country. See attached Annexure A list of priority areas in the country in which government needs to prioritize government funding in order to close the access gaps in the country.

The study assessment was conducted in 226 local municipalities in the country and a total of 154 local municipalities are identified as under-serviced. This provides government with basis to review the percentage contributions towards the Universal Service and Access Fund as the current capped of 1 percent is not realistic.

The Agency has also conducted an international comparative study in order to compare the percentage contributions towards the universal service fund. See Annexure B listing the different countries in the world who has established universal service funds and these funds are being used by government to advance the provision of connecting communities and instutions.

The study discovered that South Africa is amongst the few countries which have low percentage contributions towards the universal service and access fund being levied. The Agency proposes that current linkage of the Universal Service and Access Fund to the National Revenue Fund dispensation should be done way with as it provides the government with an opportunity to fully fund the access gap in the country without linking it to the levies collected.

3. Should the universal access and service obligations continue in their current format? Are they sufficient for addressing the universal access challenge in light of new technological and market realities in South Africa?

Given the broadband targets proposed by the South Africa Connect Broadband Policy, 2013, there is a need to review holistically the current format of the universal service obligations. Given the study conducted by the Agency on access gap, there should be a need to review the current universal service obligations as they are not adequate to take the country

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forward in light of new technological and market realities in the country.

The current obligations are based on universal access principles which encourages deployment of internet services on public shared platform and might not be ideal to support the developmental agenda of the country being raised through the National Development Plan, 2012

4. In a converged environment, should there be differences in the treatment of operators in the different sub- sectors (broadcasting, telecoms and postal) insofar as USAO and the USAF are concerned?

The Agency believes there should be no differences in the treatment of operators in the different sub-sectors insofar as USAO and the USAF are concerned. The mandate of USAASA needs to be extended to include the postal services market as it is central towards attaining the goals of universal access to broadband by 2020.

The South African Post Office branch network extends to 2 433 access points. This is made up of 1 590 fully-fledged branches as well as 843 retail postal agencies. 1 763 access points are located in rural areas, with 670 in urban areas. The inclusion of the postal sector under the mandate of USAASA will make it easier for the Agency to connect communities as it will leverage on the existing networks which extends to 2 433 of which 1 763 are located in the rural areas.

The Agency has also developed the following programmes as strategic interventions for closure of the identified access gaps in the country.

• Programme 1: Ensure Universal Accesses to Basic Mobile Communications • Programme 2: Support the Provision of Broadband Backbone Infrastructure in Un-served and Underserved Areas • Programme 3: Develop Sustainable Community and Institutional Broadband Services. • Programme 4: Support Digital Migration and the Growth of Broadcasting • Programme 5: Catalyse Local content and Applications development • Programme 6: Develop Effective and Sustainable Community Based ICT Centres • Programme 7: Postal Service Upgrading • Programme 8: ICT infrastructure and Support for Persons with Disabilities

5. Are the roles of USAASA, MDDA and ICASA still relevant given developments in the sector?

In a developing economic such as South Africa where access to affordable, secure, reliable and quality communications services remains a huge challenge to the majority of South African citizens, it is important to have a dedicated Universal Service Agency in order to deal with the developmental agenda of the country through progressive connection of public institutions, schools, public health facilities and local municipalities to broadband infrastructure and services.

The Agency has conducted a gap analysis study that indicates that there have been no significant improvements since 2007 in terms of broadband penetration in the country in particular to poor areas and under-privilege communities in the country. Also the Agency has conducted a study of Socio-Economic Impacts of Broadband Development in South Africa (see Annexure C) and it provides the social economic benefits of using the Universal Service Funds for deployment of broadband services in the country.

USAASA’ role needs to be enhance and the provision of universal access and service needs to be embedded on all chapters of the proposed National Integrated ICT policy. The Agency needs to be capacitated through policy as there was no consideration of reviewing holistically its legislative functions under a converged environment.

Under the Electronic Communications Act dispensation the Agency continued to assume the same legislative responsibilities under the repealed Telecommunications Act, 1996 and this has impacted adversely on the USAASA as an ideal body to discharge its functions under the converged regulatory framework administered by ICASA.

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Chapter 12: INSTITUTIONAL ARRANGEMENTS

Policy Questions:

1. How can the provisions for ministerial policy directives be improved without undermining the independence of ICASA? What changes would safeguard the regulator’s independence and at the same time ensure transparent interaction between ICASA and government? What other mechanisms could be used to ensure alignment between policy and regulation?

Clear responsibilities between the Minister and the Regulator (ICASA) needs to be defined through a national legislation. The Minister must be enforced to solicit the comment and understanding of ICASA on proposed policy directions before the Minister can publish his intention on proposed policy directive through a government gazette.

ICASA as an implementer of the policy legislative frameworks administered by the Department of Communications cannot operate outside the legislative parameters. In order to ensure alignment between policy and regulation, it will be critical for ICASA to submit all its draft final regulations to the Minister for approval. There must be an alignment between the primary legislation and secondary legislation.

The process of approval of regulations by the Minister needs to be descriptive as to the manner in which the regulations will be submitted to the Minister and which process the Minister will undertake in arriving at the final approval. This cannot temper with regulatory independence of ICASA as long as there is a transparent public process.

2. Is the existing structure of ICASA appropriate to regulate the converged environment? How should ICASA be funded?

The financial independency of ICASA is important for effective regulation in a converged environment. As such the primary sources of ICASA should be as follows:

• all monies raised in the process of regulation should be ploughed back into the ICT sector • fees and monies payable to it in terms of licences. Licence fees shall be approved by the Minister and based on cost recovery or on value as dictated by circumstance; • income derived from its investment and deposit of surplus monies; • loans raised for capital expenditure; • fines payable in terms of the Electronic Communications Act , on account of the contravention thereof or on account of the breach of licence terms, conditions and obligations; and • the proceeds derived from the sale of anything declared forfeited to it in terms of the ECA

3. The provisions dealing with universal service and access are contained in all the communication laws and policies. Is the institutional arrangement between the decision makers adequate to fulfill the universal service and access provisions?

The current institutional arrangement between the decision makers in fulfillment of universal service and access provisions is currently adequate. The ECA delineate responsibilities between the Minister (of Communications); the Regulator (ICASA) and the Agency (Agency). The separation is clear but there is a need to redefined role responsibilities amongst Minister, ICASA and USAASA.

The Minister’s role is very clear that he is responsible for administering the legislative policy framework for ICTs in the country. However, this seems not be the applicable practice as the Department (of Communications) has assumed a role of being an implementer of its legislative policy frameworks. The Department has over the years assumed the role responsibility of USAASA of providing internet schools connectivity. The scope of applicability in terms of Universal Service and Access Funds is clearly captured in the Electronic Communications Act, 2005 and it’s prescriptive.(see below the table on application of the money in the Universal Service and Access Fund.

The role of USAASA in a converged environment needs to be redefined as this was overlooked in the development of the Electronic Communications Bill framework. The current functions of USAASA under the Electronic Communications Act are a

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mirror of the functions under the Telecommunications Act, 1996 dispensation. The Agency was not adequately capacitated to deal competently with the converged environment through policy.

The below table denotes the functions mapped in terms of the ECA against the institutions and the attainment of universality goals to ICT’s must not be solely be a prerogative of USAASA.

The Electronic Communications Act

ECA provisions relating to UAS and Assignment of responsibilities

Fund • Universal Service & Access Fund (Ch.14)

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Policy • Ministry

Fund Administration • USAASA, subject to control of Minister (s87(3))

Setting of contributions • ICASA (s89(2))

Collection of funds • ICASA collects from licensees(s87(2)) • Money credited to USAASA in its books • Money sent to National Revenue Fund • Subsidies paid must be financed by money appropriated by Parliament (s87(3) and s 88)

Decision on spending • USAASA, in consultation with ICASA (s90 – ITA)

Definitions • ICASA in consultation with USAASA (under-serviced area) (s88(2)) • Ministry on recommendation of USAASA (Universal Access /Universal Service /Needy People) – s82(3)

The Electronic Communications Act, Act 36 of 2005 (“The ECA”) came in to effect in July 2006. The ECA was introduced to promote convergence in the broadcasting, broadcasting signal distribution and telecommunications sectors. The ECA establishes USAASA as “the agency with a sole mandate to promote the goals of universal access and universal service” Furthermore it sets the following UAS obligations on USAASA, ICASA and ICT service providers:

• The ECA has as an objective that broadcasting services when viewed collectively must promote the provision and development of a diverse range of sound and television broadcasting services on a national, regional and local level that cater for all language and cultural groups and provide entertainment, education and information. To this end, the music and television content regulations provide for quotas in respect of public, community, commercial and subscription broadcasting.

• Chapter 3, Section 8(4) of the ECA deals with the licensing frameworks. This section gives the Authority (ICASA) jurisdiction to, by regulation; make provision for the designation of licensees to whom universal service and universal access obligations are to be applicable.

• Chapter 3, Section 10 (1)(g) of the Act states that the Authority may amend individual licenses after consultation with the licensee for universal service and universal access reasons as a result of changed circumstances in the market, lack of electronic communications network services, broadcasting services, or electronic communications services is specifically identified areas of the Republic.

• According to Chapter 12, Section 70 of the ECA, ICASA is expected to develop a Code dealing with people with disabilities. The resultant regulations prescribe that electronic communications, postal and broadcasting service licensees must ensure that their services are available and accessible to people with disabilities. The effectiveness of the services must be monitored and licensees must report on an annual basis on the progress of the implementation of the basic standards prescribed for broadcasting service licensees. The regulations prescribe options for making broadcasting services more accessible.

• Chapter 14 of the Act provides for the Universal Service and Access Agency of South Africa. Section 80 provides for the continued existence of the Agency and section 82 speaks to the functions of the Agency.

• In terms of Section 82(3) of the ECA, USAASA must from time to time, with due regard to circumstances and attitudes prevailing in the Republic and after obtaining public participation to the greatest degree practicable, make recommendations to enable the Minister to develop a definition of universal service and access and in so doing must recommend to the Minister what constitutes:

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. universal access by all areas and communities in the Republic to electronic communications services and electronic communications network services; and

. The universal provision for all persons in the Republic of electronic communications services and access to electronic communications networks, including any elements or attributes thereof.

• USAASA must in terms of section 82(4) continually survey and evaluate the extent to which universal access and service have been achieved and issue information from time to time on the provision of electronic communications services and electronic communications networks in the Republic and access thereto. USAASA must furthermore, in terms of its advisory role, when so requested by the Minister, make recommendations to the Minister in relation to policy on any matter relating to universal access and universal service. In addition, USAASA must, when so requested by the ICASA, advise the Authority on any matter relating to universal access and universal service.

• Sections 87, 88, and 89 of the ECA speak to the continued existence and control of the Universal Service and Access Fund managed by USAASA, Application for money in the Universal Service and Access Fund, and Contributions to the Universal and Access Fund; respectively. Section 90 of the Act instructs the Agency to facilitate a competitive tender process for universal service and access projects.

4. The provisions of the Electronic Communications Act on Universal Service Fund separate the management of the Fund from the determination of under-serviced areas. The definition of needy persons is also separated from the management of the Fund. Is this the best mechanism to promote effective use of the Fund? What measures can be developed to foster cooperation?

From the current legislative framework for electronic communications in the country, i.e. the Electronic Communications Act, 2005 (Act No. 36 of 2005), there is no clear separation of the management of Universal Service Fund from the determination of the under-serviced areas. The Agency under the present dispensation of the ECA cannot be able to direct funding towards the under-serviced areas without a determination from the Independent Communications Authority of South Africa (“Authority”).

The definitions of an under-serviced area forms the cornerstone of a universal service and access policy and as such it is critical for the Agency to undertake the definitions process of “universal access” and “universal service” following the public participation process. The legislative framework of the Electronic Communications Act, 2005 requires the Minister (of Communications) to make a final determination through a Government Gazette.

The definitions of “universal access” and “universal service” are supposed to be linked to Government National Priorities such as the National Development Plan (NDP) 2012 and the South Africa Connect Broadband Policy, 2013. The definition of “universal access” frames the definition an “under-serviced” area.

The Universal Service and Access Agency of South Africa and the Authority are supposed to collaborate together for the implementation of the competitive tender for universal service and access projects. Section 90 of the ECA enjoins USAASA to collaborate with ICASA for provision of incentives to electronic communications network service licensees to construct, operate and maintain electronic communications networks in under-serviced areas through the award of project grants.

It is evident from the current legislative provisions of the ECA that there is no clear separation of the Universal Service Fund management from the determination of under-serviced areas. USAASA exists under the legislative regulatory framework implemented by ICASA and as such this make USAASA to some extent being directly accountable to the Authority and hence the close collaboration of these two respective instutions will be important going forward for attainment of goals of universality to ICT’s in the country.

Also the definition of “needy persons” is a corner stone of a universal access and service policy and the definition of a “needy person” is important by USAASA in order to ensure the subsidies in the Universal Service and Access Fund are strategically and systematically intended to disadvantaged communities in order to address the inequalities in terms of access to communications services.

From the current legislative provisions of the ECA, the process of the definition of “needy persons” is the prerogative of the Minister (of Communications) and USAASA can only make recommendations to the Minister in order to enable the final

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determination of “needy persons” by the Minister.

The definition of “universal access” and “universal service”, and “needy persons” by USAASA has affirmed the position of the Agency as an arbiter, assessor and monitor for attainment of goals of universality to ICT’s by all in the country. The Agency does not only assume the role of being an implementing agency for attainment of goals of universality to ICT’s but also a policy making body which is critical towards the overall oversight of the ICT sector.

There is a need to foster cooperation between the ICASA and USAASA and the two organisations are supposed to complementing each other with a common view of closing the access gaps in the country. ICASA is an independent regulatory body entrusted with power of enforcement and USAASA is a developmental body which is supposed to identify more creative and innovative methods to promote universal service within the broad framework of development planning.

The scope of the Universal Service and Access Fund needs to be expanded to include the postal services sector as the South African Post Office which is one of the key role players have a wide geographic reach in the country. The South African Post Office has 1 763 access points are located in rural areas and the Agency can use these postal outlest as delivery platforms to create broadband points of presence in under-serviced areas. The connection of the 1 763 access points across the country can help to facilitate the availability of banking services in poor communities and under-serviced areas. This can assist also assist in delivery government online services which are key towards service delivery.

USAASA should ensure the developmental agenda of the NDP in particular to under-serviced areas is carried to the latter. For the Agency to achieve this, it needs to work in collaboration with ICASA. A balance needs to be struck between the constitutional independency of the regulator in order to ensure ICASA operates without any fear, favour or political interference.

5. The domain names are taking on increasing importance as their commercial value rises, and as global internet and e-commerce increase. Cyber-squatting took on global proportions until regulatory regimes dealt with the registration of names by persons not entitled to them. Should South African names that are intrinsically of national importance or relevance being treated differently from corporate or brand names for reasons of public interest.

South Africa is a diverse multi-cultural national and such the diversity is being protected through the Bill of rights in the constitution. It will be important that South African names that are intrinsically of national importance or relevance being treated differently from corporate or brand names for reasons of public interests. With the anticipated broadband expansion and penetration in the country, there is going to be huge demand of community websites which will be named after different interest groups or cultural diversity groupings and protection of the domain names will be critical.

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Annexure A

ACCESS GAPS PRIORITY AREAS IN ORDER OF NEED

These are based on the access level in mobile and fixed broadband. The average access gap shows that the need is in the following order:

PHASE 1 PHASE 2 Eastern Cape Western Cape Gauteng KwaZulu-Natal North West Northen Cape

Mpumalanga, KZN and North West are all in the same ball park in terms of needs. These will then form part of Phase 1. It would also be advisable to include KZN in the first phase due to the size of the province and the need identified. There are 44 District municipalities and 226 local municipalities in the country.

EASTERN CAPE

Municipalities in Eastern Cape (37)

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District and metropolitan municipalities in Eastern Cape

Map Area Population Pop. density Name Code Seat key (km²) (2011) (per km²)

34–37 Alfred Nzo District Municipality DC44 Mount Ayliff 6,859 801,344 116.8

10–16 Amathole District Municipality DC12 East London 21,043 892,637 42.4 Buffalo City Metropolitan

B BUF East London 2,536 755,200 297.8

Municipality

1–9 Cacadu District Municipality DC10 Port Elizabeth 58,194 450,584 7.7

17–24 Chris Hani District Municipality DC13 Queenstown 36,695 795,461 21.7

25–28 Joe Gqabi District Municipality DC14 25,663 349,768 13.6 Nelson Mandela Bay

N NMA Port Elizabeth 1,959 1,152,115 588.1

Metropolitan Municipality

29–33 OR Tambo District Municipality DC15 Mthatha 15,968 1,364,943 85.5

Local and metropolitan municipalities in Eastern Cape

Map Area Population Pop. density Name Code District Seat key (km²) (2011) (per km²)

13 Amahlathi Local Municipality EC124 Amathole 4,820 122,778 25.5

3 Baviaans Local Municipality EC107 Cacadu Willowmore 11,668 17,761 1.5

7 Blue Crane Route Local Municipality EC102 Cacadu Somerset East 11,068 36,002 3.3

B Buffalo City Metropolitan Municipality BUF East London 2,536 755,200 297.8

1 Camdeboo Local Municipality EC101 Cacadu Graaff-Reinet 12,422 50,993 4.1

28 Elundini Local Municipality EC141 Joe Gqabi Maclear 5,065 138,141 27.3

21 Emalahleni Local Municipality EC136 Chris Hani Lady Frere 3,447 119,460 34.7

24 Engcobo Local Municipality EC137 Chris Hani Ngcobo 2,484 155,513 62.6

25 Gariep Local Municipality EC144 Joe Gqabi 8,911 33,677 3.8

14 Great Kei Local Municipality EC123 Amathole 1,736 38,991 22.5

2 Ikwezi Local Municipality EC103 Cacadu Jansenville 4,563 10,537 2.3

19 Inkwanca Local Municipality EC133 Chris Hani Molteno 3,584 21,971 6.1

22 Intsika Yethu Local Municipality EC135 Chris Hani Cofimvaba 2,711 145,372 53.6

17 Inxuba Yethemba Local Municipality EC131 Chris Hani Cradock 11,663 65,560 5.6

29 King Sabata Dalindyebo Local Municipality EC157 OR Tambo Mthatha 3,027 451,710 149.2

4 Kou-Kamma Local Municipality EC109 Cacadu Kareedouw 3,593 40,663 11.3

5 EC108 Cacadu Jeffreys Bay 2,670 98,558 36.9

20 Lukhanji Local Municipality EC134 Chris Hani Queenstown 3,813 190,723 50.0

8 Makana Local Municipality EC104 Cacadu Grahamstown 4,376 80,390 18.4

26 Maletswai Local Municipality EC143 Joe Gqabi 4,358 43,800 10.1

34 Matatiele Local Municipality EC441 Alfred Nzo Matatiele 4,352 203,843 46.8

16 Mbhashe Local Municipality EC121 Amathole 3,169 254,909 80.4

37 Mbizana Local Municipality EC443 Alfred Nzo Bizana 2,417 281,905 116.6

30 Mhlontlo Local Municipality EC156 OR Tambo Qumbu 2,826 188,226 66.6

15 Mnquma Local Municipality EC122 Amathole Gcuwa 3,270 252,390 77.2

9 Ndlambe Local Municipality EC105 Cacadu Port Alfred 1,841 61,176 33.2 Page 15 of 122

Map Area Population Pop. density Name Code District Seat key (km²) (2011) (per km²)

N Nelson Mandela Bay Metropolitan Municipality NMA Port Elizabeth 1,959 1,152,115 588.1

10 Ngqushwa Local Municipality EC126 Amathole Peddie 2,241 72,190 32.2

33 Ngquza Hill Local Municipality EC153 OR Tambo Flagstaff 2,477 278,481 112.4

11 Nkonkobe Local Municipality EC127 Amathole 3,626 127,115 35.1

36 Ntabankulu Local Municipality EC444 Alfred Nzo Ntabankulu 1,385 123,976 89.5

12 EC128 Amathole Adelaide 2,732 24,264 8.9

31 Nyandeni Local Municipality EC155 OR Tambo Libode 2,474 290,390 117.4

32 Port St Johns Local Municipality EC154 OR Tambo Port St Johns 1,291 156,136 120.9

23 Sakhisizwe Local Municipality EC138 Chris Hani Cala 2,355 63,582 27.0

27 Senqu Local Municipality EC142 Joe Gqabi Lady Grey 7,329 134,150 18.3

6 Sundays River Valley Local Municipality EC106 Cacadu Kirkwood 5,994 54,504 9.1

18 Tsolwana Local Municipality EC132 Chris Hani Tarkastad 6,087 33,281 5.5

35 Umzimvubu Local Municipality EC442 Alfred Nzo Mount Frere 2,577 191,620 74.4

Towns

DISTRICT MUNICIPALITY LOCAL_MUNICIPALITY TOWN Alfred Nzo District O'Conners Camp O'Conners Camp Municipality Umzimkhulu Bisi Clydesdale

Dumakude

Fodo

Ibisi

Indawana

Jogilizwe Jongilizwe Ladamu Mabandla Malenge

Mvolozi

Nqozama

Rietvlei 1

Rietvlei 2 Rietvlei 3 Part 1 Rietvlei 3 Part 2 Sandile Silahla

Singisi

Straalhoek

Straalhoek Forrest Station

Umzimkulu Part 1 Umzimkulu Part 2 Zwelethu Umzimvubu Amahlubi Bakoena Bhele

Page 16 of 122

Fikeni Hlubi Ludidi Lupindo

Lwandlolubomvu

Makaula

Malubelube Maluti Part 1 Maluti Part 2 Manguzela Matandela Maxesibeni Mosesh

Mount Ayliff

Mount Frere Mpoza Mzongwana Sibi Umzimvubu Part 1 Umzimvubu Part 2 Xesibe Amatole Amahlathi Amahlathi Part 1 Amahlathi Part 2 Amantinde Amazizi

Cathcart

Cumakala

Daliwe Dohne Eluxolweni Emthonjeni Frankfort Gxulu Heckel

Hlubi

Katikati Keiskammahoek North Lusikisiki Marienthal Ngqika Peelton Stutterheim Part 1

Stutterheim Part 2

Toise Zali's Location Zibula Zwelitsha Buffalo City Airport Township Amagasela Amahleke

Page 17 of 122

Amandlambe Amantinde Area North 1924 Berlin

Bisho

Breidbach

Buffalo City Cambridge Dimbaza Duncan Village East London Egoli Township Eluxolweni Part 1

Eluxolweni Part 2

Eluxozweni Ententeni Gompo Town Gonubie Ilitha Imidashane Imidushane Imiqayi

Jaftas

Joseph Williams Kambashe Kayser's Beach Khambashe Kidd's Beach King Williams Town Macleantown

Mdantsane

Mzamonhle

Nahoon Dam Settlement Needs Camp Newlands Nompumelelo Park Ridge Parkside Peelton

Pefferville

Phakamisa

Phato Pierie Main Forest Pirie Reeston Sea Vale Silverdale Skobeni

Sunrise-On-Sea

Tyusha

Umqwakwebe

Page 18 of 122

Zwelitsha Great Kei Cintsa Cintsa East Cwili

Great Kei

Haga Haga

Kei Mouth

Komga Kwelera Kwelera Point Mooiplaas Ocean View

Qumrha

Mbhashe Bashee Bonkolo Cizela Ebongweni

Ebotwe

Elliotdale

Emvelini -Ngchana

Hala

Idutywa Part 1 Idutywa Part 2 Jalamba Kwamkoloza

Mpeko

Ngqwangele Ngubezulu

Ntonga

Ntshatshongo

Willowvale Mnquma Amabhele Amahlubi Amambalu Amazizi

Butterworth

Fingo

Gcaleka

Gqogqora

Imidushane Jalamba Part 1 Kentani Part 2 Kwebulana

Lindinxiwa

Mac Vigar

Mazeppa Bay

Mazizini

Mnquma

Page 19 of 122

Mtoto Ngqwara Ngubezulu Ngusi

Nqadu

Nqamakwe

Ntshatshongo Qolora Springs Teko Tutura Tyhali

Ngqushwa Amahlubi

Amambalu

Bhele

Dabi

Glenmore

Hamburg

Imidushane

Imiqayi

Mareledwana

Mhala

Mpheweni

Msuthu

Ngqushwa

Njokweni

Peddie Part 1 Peddie Part 2 Tyefu

Nkonkobe Alice

Amagqunukwebe

Amagwala

Amajingqi

Amakhuze

Balfour

Bellvale

Bhofolo

Blinkwater

Ekuphumuleni

Fort Beaufort

Gaga

Gaika-Mbo

Hogsback

Imingcangathelo Jingqi Middledrift Mlungisi Moreson Mpofu

Page 20 of 122

Ngqika Ngwalana Nkonkobe Seymour

Tamboekie Vlei Tyumie Victoria East Nxuba Adelaide Bedford Lingelethu Nxuba

Sizakhele Cacadu District Aberdeen Plain Aberdeen Plain Municipality Addo Elephant National Park Petersburg Rietbron

Tsitsikama National Park

Baviaans Baviaans

Steytlerville

Vuyolwetho

Willowmore Blue Crane Route Blue Crane Route Bongweni Cookhouse Khayanisho

KwaNojoli

Pearston

Somerset East Camdeboo Aberdeen Camdeboo Graaff Reinet New Bethesda

Thembalesizwe

uMasizakhe

Ikwezi Ikwezi

Jansenville

Klipplaat

KwaZamukucinga

Wongalethu Kouga Aston Bay Cape St Francis Hankey

Humansdorp

Jeffreys Bay

Kouga

KwaNomzamo Loerie Oyster Bay Paradise Beach Patensie St Francis Bay

Page 21 of 122

Sunnyside Thornhill Weston Kou-Kamma Boskop

Coldstream

Joubertina

Kagiso Height

Kareedouw

Kou-Kamma

Krakeel Rivier Louterwater Stormsrivier

Thornham

Tsitsikamabos National Park Tweeriviere

Uitkyk

Witelsbos Woodslands Makana Albany Fingo Village Grahamstown

Makana

Rhini

Riebeeck-East Ndlambe Alexandria Bathurst Boknesstrand Canon Rocks

Ekuphumleni

Kasuka

Kenton-on-Sea

Kleinemonde Kwanonqubela Ndlambe Nkwenkwezi Nolukhanyo Port Alfred Sunday's River Valley Addo

Addo Elephant National Park

Barsheba Bontrug

Enon

Kirkwood

KwaZenzele Nomathamsanqa Paterson Sunday's River Valley Chris Hani District Emalahleni Cacadu Municipality Cala Dordrecht

Page 22 of 122

Emalahleni Emaqwatini Eqolombeni Guba

Hala

Indwe

Lady Frere Lakishi Macubeni Manyano Mavuya Mhlontlo Mzamomhle

Nonesi

Sinakho Engcobo Amantondo Amaqwati Dumalisile Engcobo

Gqutyini

Hala

Jumba

Luhewini

Moshi Sidindi Singqumeni Tara Upper Gqobonco Inkwanca Inkwanca Masakhe

Molteno

Nomonde

Sterkstroom Intsika Yethu Amabhele Amahlubi Amazizi Cofimvaba Part 1

Cofimvaba Part 2

Ehlatini

Emaqwatini

Engcobo

Gcaleka Gcuwa Hala Idutywa Intsika Yethu

Jumba

KwaNkwenkwazi

Lady Frere

Mhlontlo

Mtshanyana

Page 23 of 122

Ncora Ndlunkulu Ndungwana Qamata

Qwebeqwebe

Tsomo Part 1

Tsomo Part 2 Xalanga Inxuba Yethemba Cradock Inxuba Yethemba KwaNonzame Lingelihle

Middelburg

Lukanji Cacadu

Didimane

Ekuphumleni

Ezibeleni

Hala

Hewu

Illinge

Lesseyton

Lukanji

Mlungisi

Nonesi

Queenstown Part 1

Queenstown Part 2

Sada

Whittlesea Zulukama Mountain Zebra National Mountain Zebra National Park

Park Tsitsikama National Park

Sakhisizwe Cala Part 1

Cala Part 2

Ehlatini Elliot

Engcobo

Eqolombeni

Masibambane Sakhisizwe Sidindi Xalanga Tsolwana Amaqwati Amavundle Basoto Hofmeyer

Lammermoor

Tarka

Tsolwana Zola Nelson Mandela Nelson Mandela Beachview

Page 24 of 122

Bethelsdorp Blue Horizon Bay Cannonvale Colchester

Despatch

Gqebera

Ibhayi Kabah Khaya Mnandi Kwa Langa Kwadwesi Kwanobuhle Motherwell

Nelson Mandela

Port Elizabeth Seaview Uitenhage Woodridge Young Park O.R.Tambo King Sabata Dalindyebo Baziya Cacadu Coffee Bay Ebotwe

Gcaleka-Ngchana

Hagebe

Hala

Jalamba Jumba Masizakhe Matyengqina Mhlanga Mpeko

Mqanduli

Mqekezweni

Ngqubusini Ngubezulu Nqabe Nqanda Qiya Qokolweni/Zimbane Rarabe

Sithebe

Tshezi

Tshomane Umtata Part 1 Umtata Part 2 Upper Ncise-Kambi Xesibe Xongora Mbizana Amadiba

Amandela

Page 25 of 122

Amandengane Amangutyana Amantshangase Amapisi

Bala

Bizana

Imizizi Ntlenzi Ntshamate Tsikelo Xesibe Mhlontlo Amacwera Amampondomise

Amazizi

Asentshonalanga

Basuto

Bhele

Bovube Culunca Ebotwa Emaqa-Kambani Hala

Hlubi

Kambi

Ketani

Lwandlolubomvu Makaula Masizakhe Matolandile/Zimelelandile Mbalisweni

Mhlontlo

Ngqubusini

Ngwane

Northern Pondomise

Qumbu Tsolo Part 1 Tsolo Part 2 Ntabankulu Amacwera Amanci

Bala

Fikeni

Lwandlolubomvu Ntlenzi Tabankulu Tabankulu Town Xesibe Nyandeni Amasane Gibisela

Konjyaoyo

Libode

Masizakhe

Page 26 of 122

Mbalisweni Mcwebeni Mhlanga Ndluzula

Ngqeleni

Ngqubusini

Ngxangule Nqabe Ntakatye Qokolweni/Zimbane Simanzi Tshomane Xesibe

Port St Johns Amakwalo

Bomvini Emtweni Gunyeni Manzamhlophe Mvumelwano Ndluzula Port St Johns Part 1 Port St Johns Part 2

Qaukeni

Qaukeni Amakwalo Amanci Amantlane Awahlwazi

Bala

Emtweni

Flagstaff Gunyeni Lusikisiki Lwandlolubomvu Mkambati Mtshayelo Mxobo

Ndimakude

Qaukeni Sipaqeni Taweni Xopozo Ukhahlamba District Elundini Amahlubi Municipality Amazizi Asentshonalanga Bakoena Basuto

Batlokoa

Elundini

Hlubi JK Bokwe

Page 27 of 122

Maclear Madeira Mati's Matolandile/Zimelelandile

Mount Fletcher Part 1

Mount Fletcher Part 2

Ngcele Ntokozweni Ntywenka Forest Sonwabile Ugie Gariep Burgersdorp Gariep

Khayamnandi

Lyciunville Mzanomhle Nozizwe Tembisa Maletswai Aliwal North

Dukathole

Jamestown Maletswai Masakhane Oviston Nature Reserve Oviston Nature Reserve Senqu Amaqwati Amavundla Barkly East

Basoto

Batlokoa

Herschel

Hlubi Kwezinaledi Lady Grey Mfelandawonye Myamane Nkululeko

Polar Park

Rhodes

Rossouw Senqu Zakhele Zola

Page 28 of 122

FREE STATE

List of municipalities in the Free State (24)

District and metropolitan municipalities

Map Area Population Pop. density Name Code Seat key (km²) (2011) (per km²)

10–13 Fezile Dabi District Municipality DC20 21,301 488,036 22.9

5–9 Lejweleputswa District Municipality DC18 Welkom 31,930 627,626 19.7

M Mangaung Metropolitan Municipality MAN Bloemfontein 6,284 747,431 118.9

14–19 Thabo Mofutsanyana District Municipality DC19 32,637 736,238 22.6

1–4 Xhariep District Municipality DC16 Trompsburg 37,674 146,259 3.9

Local and metropolitan municipalities

Map Area Population Pop. density Name Code District Seat key (km²) (2011) (per km²)

17 Dihlabeng Local Municipality FS192 Thabo Mofutsanyana Bethlehem 4,880 128,704 26.4

3 Kopanong Local Municipality FS162 Xhariep Trompsburg 15,645 49,171 3.1

4 Letsemeng Local Municipality FS161 Xhariep Koffiefontein 9,829 38,628 3.9

13 Mafube Local Municipality FS205 Fezile Dabi Frankfort 3,971 57,876 14.6

15 Maluti-a-Phofung Local Municipality FS194 Thabo Mofutsanyana Phuthaditjhaba 4,338 335,784 77.4 Page 29 of 122

Map Area Population Pop. density Name Code District Seat key (km²) (2011) (per km²)

M Mangaung Metropolitan Municipality MAN Bloemfontein 6,284 747,431 118.9

19 Mantsopa Local Municipality FS196 Thabo Mofutsanyana 4,291 51,056 11.9

8 Masilonyana Local Municipality FS181 Lejweleputswa Theunissen 6,796 63,334 9.3

9 Matjhabeng Local Municipality FS184 Lejweleputswa Welkom 5,155 406,461 78.8

12 Metsimaholo Local Municipality FS204 Fezile Dabi Sasolburg 1,717 149,108 86.8

2 Mohokare Local Municipality FS163 Xhariep Zastron 8,776 34,146 3.9

10 Moqhaka Local Municipality FS201 Fezile Dabi 7,925 160,532 20.3

7 Nala Local Municipality FS185 Lejweleputswa Bothaville 4,129 81,220 19.7

1 Naledi Local Municipality FS164 Xhariep Dewetsdorp 3,424 24,314 7.1

11 Ngwathe Local Municipality FS203 Fezile Dabi 7,055 120,520 17.1

16 Nketoana Local Municipality FS193 Thabo Mofutsanyana Reitz 5,611 60,324 10.8

14 Phumelela Local Municipality FS195 Thabo Mofutsanyana 8,183 47,772 5.8

18 Setsoto Local Municipality FS191 Thabo Mofutsanyana 5,966 112,597 18.9

5 Tokologo Local Municipality FS182 Lejweleputswa Boshof 9,326 28,986 3.1

6 Tswelopele Local Municipality FS183 Lejweleputswa Bultfontein 6,524 47,625 7.3

Towns

DISTRICT MUNICIPALITY LOCAL MUNICIPALITY TOWN Lejweleputswa District Masilonyana Beatrix Mine Municipality Boipatong Brandfort Fora

Ikgomotseng

Joel Mine

Lusaka Majwemasweu Makeleketla Masilo Masilonyana Star Diamond Mine Theunissen

Tshepong

Verkeerdevlei Winburg Matjhabeng Allanridge Erfdeel Mine Free State Geduld Gold Mine Hennenman

Jurgenshof Unisel Gold Mine

Kutlwanong

Loraine Mine

Matjhabeng Meloding Mmamahabane Nyakallong

Page 30 of 122

Odendaalsrus Phomolong President Brand Gold Mine Riebeeckstad

Rustgevonden

Saaiplaas Mine

Thabong Ventersburg Virginia Virginia Mine Welkom Western Holdings Gold Mine Whites

Nala Bothaville

Kgotsong

Monyakeng

Nala

Wesselsbron Tokologo Boshof Dealesville Hertzogville Malebogo

Seretse

Tokologo

Tswaraganang Tswelopele Bultfontein Hoopstad Phahameng Tikwana

Tswelopele Motheo District Mangaung Baralong Boo Moroka Municipality Bloemfontein Botshabelo Mangaung Part 1

Mangaung Part 2

Morago

Opkoms Peter Swart Rodenbeck Sonskyn Thaba Nchu Mantsopa Borwa Dipeleng

Excelsior

Hobhouse

Ladybrand

Mahalatswetsa

Mantsopa Manyatseng Thaba Phatshwa Thusanong

Page 31 of 122

Tweespruit Naledi Dewetsdorp Morojaneng Naledi

Qibing

Thapelang

Van Standensrus

Wepener Northern Free State Mafube Cornelia District Municipality Frankfort Mafahlaneng Mafube

Namahadi

Ntshwanatsatsi

Qalabotjha Villiers Metsimaholo Bertha Village Coalbrook Holly Country

Metsimaholo Part 1

Metsimaholo Part 2

Oranjeville Refengkgotso Richmond Valley Sasolburg Taaibos Vaal Power Viljoensdrift Zamdela

Moqhaka Kroonstad

Maokeng

Matlwangtlwang

Moqhaka

Rammulutsi

Steynsrus

Vaal Reefs Mine

Vierfontein

Viljoenskroon

Ngwathe Edenville

Heilbron

Koppies

Kwakwatsi

Mokwallo

Ngwathe Part 1

Ngwathe Part 2

Parys Phiritona Tumahole Thabo Mofutsanyane Dihlabeng Bethlehem

Page 32 of 122

District Municipality Bohlokong Clarens Dihlabeng Fateng-Tse-Ntsho

Fouriesburg

Masjaing

Mautse Rosendal Golden Gate Highlands Golden Gate Highlands National Park National Park Maluti a Phofung 42nd Hill Bolata

Harrismith

Intabazwe

Kestell

Mabolela

Maluti a Phofung Matsieng Monontsha Namahadi Phomolong

Phuthaditjhaba

Thaba Bosiu

Thaba Tshweu

Thibela Tlholong Witsieshoek Nketoana Arlington Cremona

Leratswana

Lindley

Mamafubedu

Nketoana

Ntha Petsana Reitz

Phumelela Memel

Phumelela

Thembalihle

Vrede

Warden

Zamani

Zenzeleni Setsoto Ficksburg

Hlohlolwane

Mafeleng

Page 33 of 122

Marquard Matwabeng Meqheleng Moemaneng

Senekal

Setsoto Xhariep District Kopanong Bethulie Municipality Charlesville Edenburg Fauresmith

Ha-Rasebei

Hydro Park

Ipopeng Itumeleng Jagersfontein Kopanong Lephoi Madikgetla Maphodi

Oranjekrag

Phillipolis Poding-Tse-Rolo Qhoweng Reddersburg Springfontein Trompsburg Waterkloof Letsemeng Boitumelong

Bolokanang

Diamant Hoogte Ditlhake

Jacobsdal

Koffiefontein

Letsemeng Luckhoff Oppermans

Petrusburg

Ratanang

Relebohile Mohokare Matlakeng Mofulatshepe Mohokare Role-le-ya-Thunya

Rouxville

Smithfield

Zastron

Page 34 of 122

LIMPOPO

Municipalities in Limpopo (25)

District municipalities

Map Area Population Pop. density Name Code Seat key (km²) (2011) (per km²)

7–11 Capricorn District Municipality DC35 Polokwane 16,988 1,261,463 74.3

16–20 Mopani District Municipality DC33 24,489 1,092,507 44.6

21–25 Sekhukhune District Municipality DC47 Groblersdal 13,426 1,076,840 80.2

12–15 Vhembe District Municipality DC34 Thohoyandou 21,349 1,294,722 60.6

1–6 Waterberg District Municipality DC36 Modimolle 49,504 679,336 13.7

Local municipalities

Map Area Population Pop. density Name Code District Seat key (km²) (2011) (per km²)

8 Aganang Local Municipality LIM352 Capricorn Koloti 1,881 131,164 69.7

19 Ba- Local Municipality LIM334 Mopani Phalaborwa 7,462 150,637 20.2

5 Bela-Bela Local Municipality LIM366 Waterberg Bela-Bela 3,406 66,500 19.5

7 Blouberg Local Municipality LIM351 Capricorn Senwabarwana 9,248 162,629 17.6

25 Elias Motsoaledi Local Municipality LIM472 Sekhukhune Groblersdal 3,713 249,363 67.2

24 Ephraim Mogale Local Municipality LIM471 Sekhukhune Marble Hall 2,011 123,648 61.5

21 Fetakgomo Local Municipality LIM474 Sekhukhune Apel 1,105 93,795 84.9

17 Greater Giyani Local Municipality LIM331 Mopani Giyani 4,172 244,217 58.5

16 Greater Letaba Local Municipality LIM332 Mopani 1,891 212,701 112.5

Page 35 of 122

Map Area Population Pop. density Name Code District Seat key (km²) (2011) (per km²)

22 Greater Tubatse Local Municipality LIM475 Sekhukhune Burgersfort 4,602 335,676 72.9

18 Greater Local Municipality LIM333 Mopani Tzaneen 3,243 390,095 120.3

11 Lepelle-Nkumpi Local Municipality LIM355 Capricorn Chuniespoort 3,463 230,350 66.5

2 Lephalale Local Municipality LIM362 Waterberg Lephalale 13,784 115,767 8.4

14 Makhado Local Municipality LIM344 Vhembe Louis Trichardt 8,300 516,031 62.2

23 Makhuduthamaga Local Municipality LIM473 Sekhukhune Jane Furse 2,097 274,358 130.8

20 Maruleng Local Municipality LIM335 Mopani 3,244 94,857 29.2

4 Modimolle Local Municipality LIM365 Waterberg Modimolle 4,678 68,513 14.6

3 Mogalakwena Local Municipality LIM367 Waterberg Mokopane 6,166 307,682 49.9

9 Molemole Local Municipality LIM353 Capricorn Dendron 3,347 108,321 32.4

6 Mookgophong Local Municipality LIM364 Waterberg Mookgophong 5,689 35,640 6.3

12 Musina Local Municipality LIM341 Vhembe Musina 7,577 68,359 9.0

13 Mutale Local Municipality LIM342 Vhembe Mutale 3,886 91,870 23.6

10 Polokwane Local Municipality LIM354 Capricorn Polokwane 3,766 628,999 167.0

1 Thabazimbi Local Municipality LIM361 Waterberg Thabazimbi 11,190 85,234 7.6

15 Thulamela Local Municipality LIM343 Vhembe Thohoyandou 5,835 618,462 106.0

Towns DISTRICT MUNICIPALITY LOCAL MUNICIPALITY TOWN Bohlabela District Municipality Bushbuckridge Amashangana Bushbuckridge Part 1 College View Hoxane

Hoxani

Jongilanga

Malele Manyeleti Mapulaneng Mathibela Mnisi Moletele Moreipuso

Sabiesand Game Reserve

Setlhare Thabakgolo Kruger Park Klaserie Nature Reserve Kruger National Park Part 1 Kruger Park Timbavati Nature Reserve Part 1

Umbabati Maruleng Banereng Ba Letsoalo

Banereng Ba Sekororo

Hoedspruit Letaba

Mametja

Maruleng

Page 36 of 122

Naphuno Capricorn District Municipality Aganang Aganang Maraba Matlala Moletji

Seshego

Blouberg Alldays

Bahanawa

Bahanawa-Ba-Kibi

Blouberg

Bochum Part 1

Bochum Part 2

Dichoeng

Manthata

Matlala

Pietersburg

Ramutla Seshego Lepele-Nkumpi Bakgaga Ba Mphahlele Batau Ba Seloane Ditlou Ntshong Lebowakgomo

Lepele-Nkumpi

Mafefe

Mathabatha Mokerong Ndlovu Thabamoopo Zebediela Part 1 Zebediela Part 2 Molemole Backer

Bochum

Dendron

Ga-Ramokgopha

Manthata

Molemole

Moletji Sekgosese Sekhokho Soekmekaar

Polokwane Bjatladibja Dikolobe

Dikgale

Ditlou Machidi

Ga-Mashashane

Maja

Makgoba

Mankoeng

Mankweng

Mixed TA

Mojapelo

Molepo

Page 37 of 122

Moletji Moloto Solomon Kgabo Mothiba Pietersburg Part 1

Pietersburg Part 2

Polokwane

Seshego Part 1 Seshego Part 2 Thabamoopo Tholongwe Turfloop Mopani District Municipality Ba-Phalaborwa Ba Phalaborwa Ba Nakome Ba-Phalaborwa Bashai-Ditlou Die Eiland

Ga-Mashishimale

Gravelotte

Gravelotte Township Letaba Ranch Majeje Murchison Phalaborwa Part 1 Phalaborwa Part 2 Greater Giyani Giyani Part 1

Giyani Part 2

Giyani Part 3 Hlaneki

Mabunda

Makhuva

Modjadji Msengi Ndengeza Nkuri

Nxomo

Shiviti Greater Letaba Duiwelskloof Greater Letaba Mamaila Modjadji

Pheeha

Sekgopo

Vuyani

Greater Tzaneen Bakgaga Ba Maake

Bakgage

Bankuna

Batlhabine Ba Magoboya

Dwarsfontein

Greater Tzaneen

Haenertsburg

Letsitele Modjadji

Page 38 of 122

Nwa' Mitwa Nyavana

Tzaneen Sekhukhune Cross Boundary District Fetakgomo Atok Mine Municipality Baroka-Ba-Nkoana Mampa Masha Makopele

Mashabela

Matholeng

Phaahla Sekhukhuneland Seroka Tau-Nchabeleng Greater Groblersdal Bakwena Barokgoga Bakopa Greater Groblersdal Part 1

Matsepe

Motetema Part 1

Moutse 3 Part 1

Ndebele Nebo Greater Marble Hall Elandskraal Matlala Mokerong Nebo

Potgietersrus

Rahlangane Part 1

Van der Merwe's Kraal Greater Tubatse Babina Naare Ba Kgoete Marota Matlala a Dinkwanyane Motodi

Naphuno

Penge

SD

Sealane Sekhukhuneland Makhuduthamaga Kwena Madihlaba Kwena Mashabela Mampane Masemola

Matlala

Morwangwato

Ndebele

Pedi Mamone Phokwane Roka Phasha Phokoane SMN Tisane Vergelegen Vhembe District Municipality Makhado Bungeni

Page 39 of 122

Davhana Dzanani Funyufunyu Hlanganani

Khomanani

Kutama

Louis Trichardt Madombidzha Madzivhandila Maelula Magadani Makhado Makushu

Masakona

Mashamba Mashau Masia Mkhensani Mudimeli Muila Mukhari Mulambilu

Mulima

Ndouvhada Nesengani Nthabalala Rabali Ramalamula Ribungwani Rungulani

Sinthumule

Soutpansberg

Tiyani Tshikota Tshimbupfe Tshiovhe Vuwani Musina Messina Musina

Mutali

Nancefield

Mutale Makuya Manenzhe Moletele Mphaphuli

Rambada

Thengwe

Tshikondeni Mine

Tshikundamalema

Thulamela Dzwerani

Gijana

Page 40 of 122

Khakhu Madonsi Makuleke Mavambe

Mhinga

Mphambo

Mphaphuli Mtititi Mudabula Mukhomi Mulamula Mulenzhe Ntlhaveni

Shigalo

Shigamane Shikundu Thohoyandou Tshikonelo Tshivhase Vuwani Waterberg District Municipality Bela-Bela Belabela Bela-Bela Warmbaths Lephalale Bakenberg

Ellisras

Kwarriehoek

Lephalale

Marapong

Onverwacht

Potgietersrus Seleka Shongoane St Catherina

Modimolle Modimolle

Nylstroom

Phagameng

Vaalwater Mogalakwena Babirwa Bakenberg Bakoni Manetji Ba-Mokopane

Batlokwa

Lekalakala Part 1

Lekalakala Part 2 Mahwelereng Matlala Matlala Dichoeneng Mogalakwena Mokerong Nkiditlana

Potgietersrus

Page 41 of 122

Rebone Sekgakgapeng Tsebishi Mookgopong Mookgophong

Mookgopong

Naboomspruit

Roedtan Thabazimbi Amandelbult Ipeleng Middeldrift Mmebane

Northam

Regorogile

Rooiberg Tin Mine

Rooikrans Smersha Block Swartklip Swartkop Thabazimbi Part 1 Thabazimbi Part 2

Page 42 of 122

List of municipalities in Mpumalanga [18]

District municipalities

Map Area Population Pop. density Name Code Seat key (km²) (2011) (per km²)

1–5 Ehlanzeni District Municipality DC32 Nelspruit 27,896 1,688,615 60.5

12–18 Gert Sibande District Municipality DC30 Secunda 31,841 1,043,194 32.8

6–11 Nkangala District Municipality DC31 Middelburg 16,758 1,308,129 78.1

Local municipalities

Map Area Population Pop. density Name Code District Seat key (km²) (2011) (per km²)

15 Albert Luthuli Local Municipality MP301 Gert Sibande Carolina 5,559 186,010 33.5

1 Bushbuckridge Local Municipality MP325 Ehlanzeni Bushbuckridge 10,250 541,248 52.8

12 Dipaleseng Local Municipality MP306 Gert Sibande Balfour 2,617 42,390 16.2

6 Dr JS Moroka Local Municipality MP316 Nkangala 1,416 249,705 176.3

11 Emakhazeni Local Municipality MP314 Nkangala Belfast 4,736 47,216 10.0

9 Emalahleni Local Municipality MP312 Nkangala 2,678 395,466 147.7

Page 43 of 122

Map Area Population Pop. density Name Code District Seat key (km²) (2011) (per km²)

13 Govan Mbeki Local Municipality MP307 Gert Sibande Secunda 2,955 294,538 99.7

16 Lekwa Local Municipality MP305 Gert Sibande Standerton 4,585 115,662 25.2

3 Mbombela Local Municipality MP322 Ehlanzeni Nelspruit 5,394 588,794 109.2

18 Mkhondo Local Municipality MP303 Gert Sibande Piet Retief 4,882 171,982 35.2

14 Msukaligwa Local Municipality MP302 Gert Sibande Ermelo 6,016 149,377 24.8

4 Nkomazi Local Municipality MP324 Ehlanzeni Malalane 4,787 390,610 81.6

17 Pixley Ka Seme Local Municipality MP304 Gert Sibande Volksrust 5,227 83,235 15.9

10 Steve Tshwete Local Municipality MP313 Nkangala Middelburg 3,976 229,831 57.8

2 Thaba Chweu Local Municipality MP321 Ehlanzeni Lydenburg 5,719 98,387 17.2

7 Thembisile Hani Local Municipality MP315 Nkangala eMpumalanga 2,384 310,458 130.2

5 Umjindi Local Municipality MP323 Ehlanzeni Barberton 1,745 69,577 39.9

8 Victor Khanye Local Municipality MP311 Nkangala Delmas 1,568 75,452 48.1

Towns

DISTRICT MUNICIPALITY LOCAL MUNICIPALITY TOWN Bohlabela District Municipality Bushbuckridge Bushbuckridge Part 2 Kruger Park Kruger National Park Part 2 Sabie Sand Game Reserve Skukuza

Timbavati Nature Reserve Part 2 Ehlanzeni Lowveld Barberton Nature Reserve DMA Lowveld Matsamo Pilgrim's Rest

State Land

Mbombela Broedershoek

Gutshwa

Hazyview

KaBokweni

Kanyamazane

Khamagugu

Lomshiyo

Masoyi

Mataffin

Matsulu

Mbombela

Mbuyane

Mdluli

Mpakeni

Msogwaba

Nakambeni

Nelspruit

Ngodini

Ngodwana

Nkambeni Nsikazi Part 1 Page 44 of 122

Nsikazi Part 2 Rocky Drift Wendywood Witrivier

Nkomazi Albertsnek

Baberton

Hectorspruit

Hoyi

Inyoni

Kamhlushwa

Komatiepoort

Lugedlane

Malelane

Marloth Park

Matsamo Part 1

Matsamo Part 2

Mawewe

Mhlaba

Mlambo

Nkomazi Siboshwa Strathmore Mine

Thaba Chweu Graskop

Lydenburg

Mashishing

Pilgrim's Rest

Sabie

Simile

Thaba Chweu Umjindi Barberton

Bonanza Gold Mine Emjindini Fairview Mine

Sheba Mine

Umjindi

Verulum Govan Mbeki Municipality Albert Luthuli Albert Luthuli Badplaas Bhevula Carolina

Diepgezet

Duma

Eerstehoek Ekulundeni Embhuleni Emfumbeni Emjindini Empuluzi Enikakuyengwa

Lukwatini

Mandlamakhulu

Page 45 of 122

Mpisikazi Mpuluzi Ndlela Sandleni

Silobela

Steynsdorp

Tshabalala Dipaleseng Balfour Dipaleseng Ekanini Greylingstad

Nthwane

Siyathemba

Highveld East Bethal

Brendan Village

Charl Cilliers

Eendrag

Embalenhle

eMzinoni

Evander

Highveld East

Highveld Ridge Mines

Kinross

Leandra

Lebogang

Leslie

Leslie Gold Mines

Mandela Section

Milan Park

Secunda

Sorento Park

Trichardt

Lekwa Lekwa Morgenzon Sakhile Sivukile

Standerton

Thuthukani

Tutuka

Mkhondo Amsterdam

Dirkiesdorp

Driefontein

Ethandakukhanya

KwaNgema

KwaThandeka

Mkhondo

Ngema

Piet Retief

Shabalala

Msukaligwa Breyten

Camden

Page 46 of 122

Davel Ermelo Kwachibikhulu KwaDela

KwaZanele

Lothair

Msukaligwa Phumula Selindile Sheepmoor Wesselton Seme Amersfoort Daggakraal

eSizameleni

eZamokuhle

Perdekop

Seme

Siyazenzela Volksrust Vukuzakhe Wakkerstroom Witkoppie Metsweding District Municipality Kungwini Ekangala Kungwini Part 1 Nkangala Delmas Botleng Delmas Part 1 Delmas Part 2

Sundra

Dr JS Moroka Dr JS Moroka

Kameelpoort

Mbibana

Mdutjana

Moretele

Moutse 2

Siyabuswa

Toitskraal

Vaalbank

Emalahleni Boschmans Colliery Clewer Coalville Cologne

Coronation

Emalahleni

Greenside Colliery Hlalanikahle

Ikageng

Kendal Khutala Colliery Klarinet Klipplaat

Page 47 of 122

Klippoortjie Kriel KwaGuqa Part 1 KwaGuqa Part 2

KwaGuqa Part 3

KwaGuqa Part 4

KwaGuqa Part 5 Landau Colliery Lehlaka Park Lekama Madressa Matla Coal Mine Naauwpoort

New Largo

Ogies Pambili Paxton Phoenix Colliery Phola Pine Ridge Reedstream Park Rethabile

Rietspruit Opencast Mine

Saaiwater Soetvelde Springbok Tavistock Colliery Thubelihle Travistock Travistock South

Tweefontein

Vandyksdrif

Voltargo Vosman Witbank Witbank Consolidated Colliery Witcons Wolwekrans Zaaiwater

Highlands Belfast

Dullstroom

eMgwenya

Emthonjeni

Highlands

Machadodorp

Sakhelwe

Siyathuthuka

Mdala Nature Reserve Mdala Nature Reserve

Middelburg Doornkop

Hendrina

Page 48 of 122

Kranspoort Dorp KwaZamokuhle Middelburg Part 1

Middelburg Part 2

Thembisile Ekangala

KwaMhlanga Part 1

KwaMhlanga Part 2

Mabusa National Park

Mkobola

Moutse 3

Sokhulumi Thembisile Thokoza Tweefontein Tweefontein North Tweefontein South Vezubuhle

Vlakfontein Sekhukhune Cross Boundary Greater Groblersdal Greater Groblersdal Part 2 District Municipality Groblersdal Mathula Motetema Part 2

Moutse 3 Part 2

Greater Marble Hall Greater Marble Hall

Marble Hall

Moutse 1

Rahlangane Part 2 Greater Tubatse Badimong Burgersfort Doornbosch Mine Greater Tubatse

Lavino Chrome Mine

Magnetite Mine

Monganeng Montrose Mine Ohrigstad Soe Steelpoort Winterveld Mine Schuinsdraai Nature Reserve Schuinsdraai Nature Reserve

Page 49 of 122

KWAZULU-NATAL

List of municipalities in KwaZulu-Natal (51)

District and metropolitan municipalities

Map Area Population Pop. density Name Code Seat key (km²) (2011) (per km²)

1–3 Amajuba District Municipality DC25 Newcastle 6,911 499,839 72.3

E eThekwini Metropolitan Municipality ETH Durban 2,292 3,442,361 1,501.9

36–39 iLembe District Municipality DC29 KwaDukuza 3,269 606,809 185.6

40–44 Sisonke District Municipality DC43 Ixopo 11,127 461,419 41.5

45–50 Ugu District Municipality DC21 Port Shepstone 5,047 722,484 143.2

29–35 uMgungundlovu District Municipality DC22 Pietermaritzburg 8,934 1,017,763 113.9

9–13 uMkhanyakude District Municipality DC27 Mkuze 12,821 625,846 48.8

20–23 uMzinyathi District Municipality DC24 Dundee 8,589 510,838 59.5

Page 50 of 122

Map Area Population Pop. density Name Code Seat key (km²) (2011) (per km²)

24–28 uThukela District Municipality DC23 Ladysmith 11,326 668,848 59.1

14–19 uThungulu District Municipality DC28 Richards Bay 8,213 907,519 110.5

4–8 Zululand District Municipality DC26 Ulundi 14,799 803,575 54.3

Local and metropolitan municipalities

Map Area Population Pop. density Name Code District Seat key (km²) (2011) (per km²)

6 Abaqulusi Local Municipality KZN263 Zululand Vryheid 4,185 211,060 50.4

2 Dannhauser Local Municipality KZN254 Amajuba Dannhauser 1,516 102,161 67.4

4 eDumbe Local Municipality KZN261 Zululand Paulpietersburg 1,943 82,053 42.2

3 eMadlangeni Local Municipality KZN253 Amajuba Utrecht 3,539 34,442 9.7 Emnambithi/Ladysmith Local

25 KZN232 UThukela Ladysmith 2,965 237,437 80.1

Municipality

20 Endumeni Local Municipality KZN241 UMzinyathi Dundee 1,610 64,862 40.3 eThekwini Metropolitan

E ETH Durban 2,292 3,442,361 1,501.9

Municipality

49 Ezingoleni Local Municipality KZN215 Ugu Izingolweni 648 52,540 81.1 Greater Kokstad Local

42 KZN433 Sisonke Kokstad 2,680 65,981 24.6

Municipality Hibiscus Coast Local

50 KZN216 Ugu Port Shepstone 839 256,135 305.3

Municipality

12 Hlabisa Local Municipality KZN274 uMkhanyakude Hlabisa 1,555 71,925 46.3

28 Imbabazane Local Municipality KZN236 UThukela Ntabamhlophe 1,426 113,073 79.3

30 Impendle Local Municipality KZN224 uMgungundlovu Impendle 1,528 33,105 21.7

26 Indaka Local Municipality KZN233 UThukela Wasbank 992 103,116 103.9

41 Ingwe Local Municipality KZN431 Sisonke Creighton 1,976 100,548 50.9

9 Jozini Local Municipality KZN272 uMkhanyakude Jozini 3,442 186,502 54.2

39 KwaDukuza Local Municipality KZN292 iLembe KwaDukuza 735 231,187 314.5

40 KwaSani Local Municipality KZN432 Sisonke Himeville 1,852 12,898 7.0

37 Mandeni Local Municipality KZN291 iLembe Mandeni 545 138,078 253.4

36 Maphumulo Local Municipality KZN294 iLembe Maphumulo 896 96,724 108.0

17 Mbonambi Local Municipality KZN281 uThungulu KwaMbonambi 1,210 122,889 101.6 Mkhambathini Local

35 KZN226 uMgungundlovu Camperdown 891 63,142 70.9

Municipality

29 Mpofana Local Municipality KZN223 uMgungundlovu Mooi River 1,820 38,103 20.9

22 Msinga Local Municipality KZN244 uMzinyathi Tugela Ferry 2,501 177,577 71.0

33 Msunduzi Local Municipality KZN225 uMgungundlovu Pietermaritzburg 634 618,536 975.6

15 Mthonjaneni Local Municipality KZN285 uThungulu Melmoth 1,086 47,818 44.0

13 Mtubatuba Local Municipality KZN275 uMkhanyakude Mtubatuba 1,738 175,425 100.9

38 Ndwedwe Local Municipality KZN293 iLembe Ndwedwe 1,093 140,820 128.8

1 Newcastle Local Municipality KZN252 Amajuba Newcastle 1,855 363,236 195.8

14 Nkandla Local Municipality KZN286 uThungulu Nkandla 1,828 114,416 62.6

Page 51 of 122

Map Area Population Pop. density Name Code District Seat key (km²) (2011) (per km²)

7 Nongoma Local Municipality KZN265 Zululand Nongoma 2,182 194,908 89.3

21 Nquthu Local Municipality KZN242 uMzinyathi Nquthu 1,962 165,307 84.3

16 Ntambanana Local Municipality KZN283 uThungulu Empangeni 1,083 74,336 68.6

24 Okhahlamba Local Municipality KZN235 uThukela Bergville 3,971 132,068 33.3

34 Richmond Local Municipality KZN227 uMgungundlovu Richmond 1,256 65,793 52.4 The Big Five False Bay Local

11 KZN273 uMkhanyakude Hluhluwe 2,121 35,258 16.6

Municipality Ubuhlebezwe Local

44 KZN434 Sisonke Ixopo 1,604 101,691 63.4

Municipality

8 Ulundi Local Municipality KZN266 Zululand Ulundi 3,250 188,317 57.9

46 Umdoni Local Municipality KZN212 Ugu Scottburgh 252 78,875 313.0 uMhlabuyalingana Local

10 KZN271 uMkhanyakude Kwangwanase 3,964 156,736 39.5

Municipality

19 uMhlathuze Local Municipality KZN282 uThungulu Richards Bay 793 334,459 421.8

18 uMlalazi Local Municipality KZN284 uThungulu Eshowe 2,214 213,601 96.5

31 uMngeni Local Municipality KZN222 uMgungundlovu Howick 1,567 92,710 59.2

32 uMshwathi Local Municipality KZN221 uMgungundlovu Wartburg 1,818 106,374 58.5

27 Umtshezi Local Municipality KZN234 uThukela Estcourt 1,972 83,153 42.2 uMuziwabantu Local

48 KZN214 Ugu Harding 1,089 96,556 88.7

Municipality

23 Umvoti Local Municipality KZN245 uMzinyathi Greytown 2,516 103,093 41.0

43 Umzimkhulu Local Municipality KZN435 Sisonke Umzimkhulu 2,435 180,302 74.0

47 Umzumbe Local Municipality KZN213 Ugu Mtwalume 1,259 160,975 127.9

5 uPhongolo Local Municipality KZN262 Zululand Pongola 3,239 127,238 39.3

45 Vulamehlo Local Municipality KZN211 Ugu Scottburgh 960 77,403 80.6

Towns

DISTRICT MUNICIPALITY LOCAL MUNICIPALITY TOWNS Amajuba District Municipality Dannhauser Dannhauser Part 1 Dannhauser Part 2 Durnacol Ekudabuleni

Gule

Hattingspruit

Hlubi Newcastle Charlestown Hlubi Madadeni Newcastle Part 1

Newcastle Part 2

Ngagane

Osizweni

Utrecht Utrecht Part 1 Utrecht Part 2 Waterval Page 52 of 122

Ethekwini Municipality Ethekwini Adams Mission Amalanga Amanzimtoti Amaotana

Amawoti

Assegay

Blackburn Bothas Hill Cato Ridge Cele/Vumengazi Chatsworth Cibane Clansthal

Clermont

Dassenhoek Part 1 Dassenhoek Part 2 Desainager Drummond Durban Elangeni Emalangeni Embo/Nksa Isimahla

Emona

Ethekwini Ezembeni Folweni Gcumisa Genazano Hambanathi Hazelmere

Hillcrest

Ilanga

Inanda Inchanga Iqadi Khabazela Kingsburgh Klaarwater Kloof

Kwadabeka

KwaMakhutha

Kwa-Mashu KwaNdengezi La Mercy Lamontville Luganda Luthuli/Umnini Trust Macala-Gwala

Magabeni

Malagazi

Mangangeni/Vumazonke

Page 53 of 122

Maphephetha Maphunulo Mawotana Mawothi

Molweni

Mount Moreland

Mpolo Mpumalanga Mt Edgecombe Mwawine Naidooville New Germany Newlands East

Newlands West

Ngcolosi Ngqungqulu Ntshongweni Ntuzuma Oceans Phoenix Pinetown Qadi

Qiniselani Manyuswa

Queensburgh Redcliffe Roseneath Siyanda Sobonakhona Thoyana Tongaat

Tongaat Beach

Tshelimnyama

Umbumbulu Umdloti Umgababa Umhlanga Umkomaas Umlazi Verulam Westbrook Westville Ximba iLembe District Municipality eNdondakusuka eNdondakusuka Hlomendini Macambini Mandini

Mathonsi

Ntunzini

Sikhonyane Sundumbili Tugela

Page 54 of 122

Tugela Mouth Umlalazi Nature Reserve KwaDukuza Ballito Blythedale Beach

Darnall

KwaDukuza

Mathonsi

Qwabe (Madundube)

Salt Rock Shaka's Rock Shakaskraal Stanger Tinley Manor Beach

Zinkwazi Beach

Maphumulo Amabhedu Cele Embo Hlongwa

Mabomvini

Mkhonto

Mpungose Ngcolosi

Nodunga

Qadi Qwabe/Waterfall Zubane Ndwedwe Amalanga Chili Cibane Gcwensa

Hlophe

Inkumba/KwaNyuswa

Iqadi Khumalo Luthuli Mangangeni/Vumazonke Mathonsi Mlamuli Nyuswa Ndwedwe

Ngcolosi

Ngongoma/Mavela

Nhlangwini Nodunga Nyuswa/Nodwengu Qadi Qwabe (Madundube) Qwabe N Shangase Wosiyane Sisonke District Municipality Greater Kokstad Bhongweni Greater Kokstad

Page 55 of 122

Kokstad Mount Currie Ingwe Amacala Gwala Amangwane

Bhidla

Bulwer

Creighton

Donnybrook

Esibonelo Esihle Impendle Ingwe Ixopo Madzikone

Memela

Ncwadi

Nxamalala

Sandanezwe Tarsvaly Zashuke Kwa Sani Batlokoa Himeville Isiminza

Kwa Sani

Nxamalala

Underberg Part 1

Underberg Part 2 Vergelegen Nature Reserve Matatiele Cedarville Harry Gwala Park Itsokolele

Matatiele Part 1

Matatiele Part 2

Mzingisi Mkhomazi Wilderness Area Cobham State Forest Ubuhlebezwe Amakhuze Dlamini/Vusathina Mazulu Dunge Ikhwezi/Lokusa

Ixopo

Izimpethu Endlovu

Mjoli/Mawushe(Sizwe Hlanganani)

Nyuswa Shiyabanye/Nhlangwini Ubuhlebezwe Ukuthula Vukani Vumakwenza/Sangcwaba Ugu District Municipality Ezingoleni Ezingoleni Mthimude Oribi Gorge Nature Reserve Qinisela Manyuswa

Page 56 of 122

Vuxuzithathe Hibiscus Coast Anerley Brevo Gamalakhe Hibberdene Hibiscus Coast Kwaxolo Lushaba Madlala Marburg Margate Marina Beach Mavundla Melville Mt Amvuna Nature Reserve Munster Nsimbini/Ndwalane Nzimakwe Oslo Beach Port Edward Port Shepstone Part 1 Port Shepstone Part 2 Pumula Ramsgate San Lameer Sea Park Sentombi Shelly Beach Southbroom Southport Sunwich Port Trafalgar Umtentweni Umzinto Umzumbe Uvongo Umdoni Bazley Beach Cele Elysium Emalangeni Ezembeni Ifafa Beach Ifafa Marina Kelso Mtwalume Park Rynie Pennington Scottburgh Sezela Umdoni Umzinto

Page 57 of 122

uMuziwabantu Dlamini Duma Harding Machi Machi/Zibonda Mbotho Nhlangano Nyuswa Quebela Shwawu uMuziwabantu Weza Umzumbe Bhekani Cele Dungeni Emandleni Hlongwa Mbhele / Amaphuthu Ndelu Nhlangwini Nyavini Qoloqolo Qwabe P Shiyabanye St Faith Thulini Umzinto Umzumbe Vulamehlo Cele Emandleni Ezembeni Isimahla Izimpethu Endlovu Izimpethu Zendlovu & EM Mapumulo Mbhele Nyuswa Qiko Thoyana Ukuthula Umzinto Vulamehlo UMgungundlovu District Highmoor/Kamberg Park Highmoor State Forest Municipality Impendle Batlokoa Impendle Part 1 Impendle Part 2 Impendle Part 3 Nxamalala Polela Mkhambathini Camperdown

Page 58 of 122

Embo Ilanga Macala Mapumulu Mdluli Mkhambathini Mooi Mpofana Mooi Mpofana Mooi River Rossetta Msunduzi Ashdown Edendale Imbali Inadi Mafunze Mpumuza Msunduzi Nxamalala Pietermaritzburg Sobantu Wilgerfontein Ximba Richmond Esiphahleni Richmond Part 1 Richmond Part 2 Vumakwenza Vumindaba uMngeni Hilton Howick Karkloof Nature Reserve Kwamavana Lidgetton Mashingeni Mathandubisi Midmar Nature Reserve Mount Michael Mpophomeni Nxamalala Umgeni Valley Nature Reserve uMngeni uMshwathi Albert Falls Bomvu Cool Air Dalton Gcumisa Mpolweni Mthuli Nadi Part 1 Nadi Part 2 Ndlovu New Hanover Ngubane

Page 59 of 122

Ntanzi Thokozane Trust Feed uMshwathi Wartburg Umkhanyakude District Hlabisa Abakwahlabisa Municipality Hlabisa Mdletshe Mpembeni Mpukunyoni Jozini Ingwavuma Jozini Part 1 Jozini Part 2 Manukuza/Jobe Mathenjwa Mkuze Mngomezulu Myeni/Ngwenya Myeni/Ntsinde Ndumu Game Reserve Nyawo Sqakatha Mtubatuba Dukuduku Dukuduku State Forest Honeydale Mpukunyoni Msane Mtubatuba Part 1 Mtubatuba Part 2 Nyalazi State Forest Sokhulu St Lucia St Lucia Estuary Umfolozi St Lucia Park Cape Vidal National Park Hlabisa Hluhluwe Game Reserve Mkuze Game Reserve Sodwana Bay National Park St Lucia Game Reserve Tembe Ubombo Umfolozi Game Reserve Zikhali/Mbila The Big 5 False Bay Hlabisa Hluhluwe Hluhluwe Township Makhasa Mdletshe Mnqobokazi

Page 60 of 122

Nibela The Big 5 False Bay Umhlabuyalingana Mabaso Manukuza/Jobe Mashabane Ndumu Game Reserve Tembe Tembe Elephant Reserve Zikhali/Mbila Umzinyathi District Endumeni Dundee Municipality Endumeni eSbongile eSibongile Glencoe Sbongile Sithembile Wasbank Msinga Baso Bomvu Chunu Gwazumlungu Nlovu Khanyile Majozi Mawuzini Msinga Mthembu Mtungwa Ngome Ngubane Othame Pomeroy Qamu Qizi Mtshshali Nqutu Buthanani Emandleni Godide Hlatshwayo Khiphinkunzi Mangidini Mbokodwebomvu Molefe Nondweni Nqutu Vulindlela Zondi Umvoti Amakhabela Bomvu Cele Nhlangwini Enhlalakahle Greytown

Page 61 of 122

Hlongwa Kranskop Mgome Mthembu Ngcolosi Ntanzi Umvoti Uthukela District Municipality Emnambithi/Ladysmith Abantungwa/Kholwa Colenso Emnambithi/Ladysmith Ezakheni

Kliprivier

Kliprivier NU

Ladysmith Mchunu Mthembu Mvelani Nkankezi Gaints Castle Game Reserve Cathedral Peak State Forest Giants Castle Game Reserve

Monks Cowl State Forest

Royal Natal National Park Imbabazane Abambo Amangwe Dlamini Estcourt

Hlubi

Imbabazane

Mabaso

Mhlungwini

Zwelisha Indaka Ekuvukeni Indaka Ingwe Kliprivier

Mabaso

Mbhense

Mchunu

Mthembu

Nxumalo Sgweje Sithole Okhahlamba Amangwane Amazizi Bergville Part 1 Bergville Part 2

Drakensberg

Driefontein

Estcourt Geluksburg Jagersrust

Page 62 of 122

Northern Natal Drakensberg Okhahlamba Rugged Glen Nature Reserve Spioenkop Dam Nature Reserve

Van Reenen

Winterton

Umtshezi Estcourt Khwezi Kwanobamba Umtshezi

Weenen

Wembezi Uthungulu District Mbonambi KwaMbonambi Municipality Kwambonambi Forest Reserve Mapelane Nature Reserve Mbonambi Part 1

Mbonambi Part 2

Mhlana

Sokhulu Mthonjaneni Biyela Kwanguye Entembeni Kwanguye Melmoth

Mnanyando

Mthonjaneni

Obuka

Thubalethu Yanguya Nkandla Chube Chwezi Cube Cunu

Ekhukhanyeni

Emangidini

Godide

Halambu Isilokomane Izigqoza Izindlozi Kahile Khabela

Kwamkwaza

Magwaza

Mahlayizeni

Mangidini Mbhele/Amphuti Mdimela Mhlatuze Mpungose Murasie

Ndikwe

Page 63 of 122

Ndindini Ngono Nkandla Part 1 Nkandla Part 2

Nkandla Part 3

Nkonisa

Nkweme Ntuli Nxamalala Uxutu Vumanhlamvu Xulu Zindunduzeli

Zinkuzini

Zondi Ntambanana Bhukhanana Biyela Cebekhulu Mambuka

Mhlana

Ntambanana

Somopho uMhlathuze Bejani

Dube

Empangeni

Esikhawini

Khoza

Kwambonambi Forest Reserve

Mkhwanazi

Nkwanazi

Nseleni

Richards Bay Part 1

Richards Bay Part 2

Richards Bay Part 3

uMhlathuze

Umlalazi Nature Reserve

Vulindlela Zungu/Madlebe uMlalazi Amatikulu

Bangindoda

Bhekabelungu Biyela

Bhekeshowe

Dinuzulu

Emangidini

Entembeni Eshowe Gingindlovu Khoza

Kolweni

KwaMondi

Mombeni

Page 64 of 122

Mpungose Mpushini Park Mtunzini Mvuzane

Mxhwanazi

Mzimela

Ndlangubo Ntuli Nzuza Sabeka Shange Sikhonyane Umgoye Forest

uMlalazi Vuma Zulu Zululand District Municipality Abaqulusi Abaqulusi Bhekuzulu Coronation eMondlo

Enyati Anthracide Mine

Hlahlindlela

Hlobane Kandas Prison Khambi Louwsburg Ndebele Ngotshe Vryheid

Vulindlela

Zulu/Khambi eDumbe Dlamini Dumbe eDumbe Mthethwa

Paulpietersburg

Pongola Bush Nature Reserve Nongoma Mandlakazi

Matheni

Nongoma

Usuthu Ulundi Babanango Buthelezi Empithimpithini Inhlazatje Kwazunyawo

Mahlabatini

Mbatha

Mpungose

Ndebele Nobamba Simelane

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Ulundi Part 1 Ulundi Part 2 Ximba Zungu

uPhongolo Dlamini

Itala Nature Reserve

Msibi

Ntshangase

Pongola

Sibiya/Masidla

Simelane uPhongolo

NORTH WEST List of municipalities in North West [19]

District municipalities in North West

Map Area Population Pop. density Name Code Seat key (km²) (2011) (per km²) 15–

Bojanala Platinum District Municipality DC37 Rustenburg 18,333 1,507,505 82.2 19

6–9 Dr Kenneth Kaunda District Municipality DC40 Klerksdorp 14,642 695,933 47.5 Dr Ruth Segomotsi Mompati District

1–5 DC39 Vryburg 44,017 463,815 10.5

Municipality 10– Ngaka Modiri Molema District

DC38 Mafikeng 27,889 842,699 30.2

14 Municipality

Page 66 of 122

Local municipalities in North West

Pop. Map Area Population Name Code District Seat density key (km²) (2011) (per km²) City of Matlosana Local

7 NW403 Dr Kenneth Kaunda Klerksdorp 3,561 398,676 112.0

Municipality

10 Ditsobotla Local Municipality NW384 Ngaka Modiri Molema Lichtenburg 6,465 168,902 26.1 Dr Ruth Segomotsi

3 Greater Taung Local Municipality NW394 Taung 5,635 177,642 31.5 Mompati Kagisano-Molopo Local Dr Ruth Segomotsi

1 NW397 Ganyesa 23,827 105,789 4.4

Municipality Mompati

16 Kgetlengrivier Local Municipality NW374 Bojanala Platinum Koster 3,973 51,049 12.8 Lekwa-Teemane Local Dr Ruth Segomotsi

5 NW396 Christiana 3,681 53,248 14.5

Municipality Mompati

18 Madibeng Local Municipality NW372 Bojanala Platinum Brits 3,839 477,381 124.4

13 Mafikeng Local Municipality NW383 Ngaka Modiri Molema Mafikeng 3,698 291,527 78.8 Dr Ruth Segomotsi Schweizer-

4 Mamusa Local Municipality NW393 3,615 60,355 16.7

Mompati Reneke

6 Maquassi Hills Local Municipality NW404 Dr Kenneth Kaunda Wolmaransstad 4,643 77,794 16.8

19 Moretele Local Municipality NW371 Bojanala Platinum Makapanstad 1,379 186,947 135.6

15 Moses Kotane Local Municipality NW375 Bojanala Platinum Mogwase 5,719 242,554 42.4 Dr Ruth Segomotsi

2 Naledi Local Municipality NW392 Vryburg 6,941 66,781 9.6 Mompati Ramotshere Moiloa Local

14 NW385 Ngaka Modiri Molema Zeerust 7,193 150,713 21.0

Municipality

12 Ratlou Local Municipality NW381 Ngaka Modiri Molema Setlagole 4,884 107,339 22.0

17 Rustenburg Local Municipality NW373 Bojanala Platinum Rustenburg 3,423 549,575 160.6

8 Tlokwe Local Municipality NW402 Dr Kenneth Kaunda Potchefstroom 2,674 162,762 60.9

11 Tswaing Local Municipality NW382 Ngaka Modiri Molema Delareyville 5,966 124,218 20.8

9 Ventersdorp Local Municipality NW401 Dr Kenneth Kaunda Ventersdorp 3,764 56,702 15.1

Towns

DISTRICT MUNICIPALITY LOCAL MUNICIPALITY TOWNS Bojanala District Municipality Kgetlengrivier Borolelo Derby Kgetlengrivier Koster Nooigedacht Reagile Swartruggens Madibeng Bafokeng Bakgatla Ba Mmakau Bakwena Ba Magopa Bakwena Boo Modimosana Ba Ga Makau Bapo Ba Ga Mogale Borakalalo Nature Reserve Brits Page 67 of 122

Damonsville Elandsdrift Ga-Rankuwa Hartbeespoort Dam Nature Reserve Hartebeesfontein New Paradise Hartebeespoort Jonathan Lethlabile Madibeng Magaliesberg Nature Reserve Maroelakop Mooinooi Oskraal Oukasie Pelindaba Sechaba-Sa-Ba-Taung Sonop Western Platinum Mines Moretele Agisaneng Amandebele A Lebelo Bahwaduba Bakgatla Ba Ga Mosetlha Bakgatla Ba Mmakau Bakgatla Ba Mphe Batho Baphuthing Ba Ga Nawa Diphala Jonathan Kopanong Modimole Magogelo Mogogelo Moretele Temba Thulwe Tsoga o Itirele Moses Kotane Amahlubi Bafokeng Bakgatla Ba Ga Kgafela Bakubung Ba Ratheo Bakwena Ba Mare A Phogole Bakwena Boo Modimosana Baphalane Baphiring Bapo 2 Ba Ga Mogale Bapo II Barokologadi Ba Ga Maotwa Bataung Ba Moubane Batlhako Boo Mututu Ba Ga Mabe Batlhalerwa Batlokwa Ba Bogatsu Batlokwa Ba Ga Sedumedi Batlokwa Boo Matlapane

Page 68 of 122

Dinokaneng Mahobieskraal Makuntlwane A Kgote Mixed TA Mogwase Mokgatlha Mokgautsi Moses Kotane Sun City Zwartklip Pilansberg National Park Pilanesberg Game Reserve Pilansberg National Park Rustenburg Bafokeng Bakwena Ba Magopa Baphalane Bapo Ba Ga Mogale Boitekong Hartebeesfontein Magaliesberg Nature Reserve Mankwe Meriting Monakato Paardekraal Paardekraal Platinum Mine Phatsima Rooikoppies Rustenburg Part 1 Rustenburg Part 2 Rustenburg Part 3 Sunrise Park Tlhabane Waterval Bophirima District Municipality Greater Taung Bathlaping Ba Ga Maidi Bathlaping Ba Ga Mothibi Bathlaping Ba Ga Phuduhutswana Batlhaping Ba Ga Phudutswana Boipelo Greater Taung Motsweding Pudimoe Reivilo Kagisano Batlharo Ba Lotlhware Kagisano Louwna Morokweng Piet Plessis Lekwa-Teemane Bloemhof Boitumelong Christiana Lekwa-Teemane Utlwanang

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Mamusa Amalia Glaudina Ipelegeng Mamusa Molatswanene Schweizer-Reneke Molopo Molopo Pomfret Naledi Huhudi Naledi Stella Vryburg Central District Municipality Ditsobotla Bakwena Ba Ga Serobatse Banogeng Boikhutso Coligny Ditsobotla Ga-Raphalane Itekeng Itsoseng Kopano Lichtenburg Mosiane Tlhabologang Mafikeng Bafokeng Ba Ga Moraka Bakwena Ba Ga Molopyane Banogeng Barolong Boo Rapulana Barolong Boo Ratshidi Part 1 Barolong Boo Ratshidi Part 2 Barolong Boo Ratshidi Part 3 Barolong Boo Ratshidi Part 4 Barolong Boo Ratshidi Part 5 Barolong Boo Ratshidi Part 6 Batloung Ba Ga Shole Floorspar Mine Kopano Madikwe Part 1 Madikwe Part 2 Mafikeng Part 1 Mafikeng Part 2 Mafikeng Part 3 Mmabatho Part 1 Mmabatho Part 2 Montshioa Rooigrond Slurry Wintershoek Setla-Kgobi Barolong Ba Ga Makgobi Barolong Ba Ga Molefe Ba Moata Barolong Boo Rashidi

Page 70 of 122

Barolong Boo Ratlou Ba Ga Phoi Batlharo Ba Ga Masibi Setla-Kgobi Tswaing Agisanang Atamelang Bakolobeng Barolong Boo Ratlou Ba Ga Seitshwaro Bopanang Delareyville Kopano Letsopa Mixed TA Ottosdal Sannieshof Tswaing Zeerust Bahurutshe Ba Ga Gopane Bahurutshe Ba Ga Le-Ncoe Bahurutshe Ba Ga Moilwa Bahurutshe Ba Ga Mokgoswa Bahurutshe Ba Ga Mothogae Bahurutshe Ba Ga Suping Bahurutshe Bo Manyane Banabakae Ikageleng Leeufontein Madikwe Part 1 Madikwe Part 2 Marico Nature Reserve Mixed TA Welbedacht Zeerust Part 1 Zeerust Part 2 City of Tshwane Metropolitan City of Tshwane Metro Amandebele A Lebelo Municipality City of Tshwane Metro Part 2 Ga-Rankuwa Part 2 Ga-Rankuwa Part 3 Ga-Rankuwa Part 4 Hammanskraal Part 2 Mabopane Part 2 Soshanguve Part 2 Temba Part 2 Temba Part 3 Tirisano FRANCES BAARD District Phokwane Part 1 Municipality KGALAGADI District Ga-Segonyana Batlharo Ba Ga Motlhware Municipality Kudumane Kuruman Part 1 Mothibistad Moshaweng Batlhaping Ba Ga Jantjie Batlhaping Ba Ga Sehunelo

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Batlharo Ba Ga Motlhware Batlharo Ba Ga Phadima Batlharo Ba Lotlhware Kudumane Southern District Municipality City Council of Klerksdorp Buffelsfontein City Council of Klerksdorp Dominionville Faan Meintjies Nature Reserve GTC Village Hartebeesfontein Hartebeestfontein Jouberton Kanana Khayalihle Khuma Klerksdorp Margaret Mine Orkney Paballong Village Stilfontein Stilfontein Gold Mine Tigane Vaal Reefs Maquassi Hills Kareeboom Kgakala Lebaleng Leeudoringstad Makwassie Maquassi Hills Rulaganyang Tswelelang Witpoort Wolmaransstad Potchefstroom Ikageng Mohadin Potchefstroom Part 1 Potchefstroom Part 2 Promosa Ventersdorp Schoonspruit Nature Reserve Tshing Ventersdorp Part 1 Ventersdorp Part 2 West Rand District Merafong City Elandsfontein Municipality Elandsrand Fochville Kokosi Leeupoort Merafong City Part 2 Wedela

NORTHERN CAPE

Page 72 of 122

List of municipalities in [31]

District municipalities in Northern Cape

Map Area Population Pop. density Name Code Seat key (km²) (2011) (per km²)

1–4 Frances Baard District Municipality DC9 Kimberley 13,518 382,086 28.3

5–7 John Taolo Gaetsewe District Municipality DC45 Kuruman 27,283 224,799 8.2

22–27 Namakwa District Municipality DC6 Springbok 126,836 115,842 0.9

14–21 Pixley ka Seme District Municipality DC7 De Aar 102,727 186,351 1.8

8–13 Siyanda District Municipality DC8 102,524 236,783 2.3

Local municipalities in Northern Cape

Map Area Population Pop. density Name Code District Seat key (km²) (2011) (per km²)

4 Dikgatlong Local Municipality NC092 Frances Baard 7,315 46,841 6.4

19 Emthanjeni Local Municipality NC073 Pixley ka Seme De Aar 13,472 42,356 3.1

5 Ga-Segonyana Local Municipality NC452 John Taolo Gaetsewe Kuruman 4,492 93,652 20.8

6 Gamagara Local Municipality NC453 John Taolo Gaetsewe Kathu 2,619 41,617 15.9

23 Hantam Local Municipality NC065 Namakwa 36,128 21,578 0.6

7 Joe Morolong Local Municipality NC451 John Taolo Gaetsewe Mothibistad 20,172 89,530 4.4

12 Kai !Garib Local Municipality NC082 Siyanda 26,358 65,869 2.5

25 Kamiesberg Local Municipality NC064 Namakwa 14,210 10,187 0.7

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Map Area Population Pop. density Name Code District Seat key (km²) (2011) (per km²)

21 Kareeberg Local Municipality NC074 Pixley ka Seme Carnarvon 17,702 11,673 0.7

22 Karoo Hoogland Local Municipality NC066 Namakwa Williston 32,274 12,588 0.4

8 Kgatelopele Local Municipality NC086 Siyanda Daniëlskuil 2,478 18,687 7.5

24 Khâi-Ma Local Municipality NC067 Namakwa Pofadder 16,628 12,465 0.7

10 //Khara Hais Local Municipality NC083 Siyanda Upington 21,780 93,494 4.3

13 !Kheis Local Municipality NC084 Siyanda 11,107 16,637 1.5

2 Magareng Local Municipality NC093 Frances Baard Warrenton 1,542 24,204 15.7

11 NC081 Siyanda Mier 22,468 7,003 0.3

26 Nama Khoi Local Municipality NC062 Namakwa Springbok 17,989 47,041 2.6

1 Phokwane Local Municipality NC094 Frances Baard 834 63,000 75.5

17 Renosterberg Local Municipality NC075 Pixley ka Seme Petrusville 5,527 10,978 2.0

27 Richtersveld Local Municipality NC061 Namakwa 9,608 11,982 1.2

14 Siyancuma Local Municipality NC078 Pixley ka Seme Douglas 16,753 37,076 2.2

15 Siyathemba Local Municipality NC077 Pixley ka Seme Prieska 14,725 21,591 1.5

3 Sol Plaatje Local Municipality NC091 Frances Baard Kimberley 3,145 248,041 78.9

16 Thembelihle Local Municipality NC076 Pixley ka Seme Hopetown 8,023 15,701 2.0

9 Tsantsabane Local Municipality NC085 Siyanda 18,333 35,093 1.9

20 Ubuntu Local Municipality NC071 Pixley ka Seme Victoria West 20,389 18,601 0.9

18 Umsobomvu Local Municipality NC072 Pixley ka Seme Colesberg 6,819 28,376 4.2

TOWNS

DISTRICT MUNICIPALITY LOCAL MUNICIPALITY TOWNS FRANCES BAARD District Diamondfields Bellsbank Diamond Mines Municipality Diamondfields Klein Dikgatlong Barkly West Corn's Village Dikgatlong Holpan Kutlwano Longlands Mataleng Sydney on Vaal Tidimalo Vaalbos National Park Magareng Ikutseng Magareng Warrenton Phokwane Andalusia Park Hartswater Jan Kempdorp Part 2 Phokwane Page 74 of 122

Sol Plaatje Galeshewe Kimberley Motswedimosa Ritchie Roodepan Sol Plaatje KAROO District Municipality Bo Karoo Bo Karoo Copperton Emthanjeni Barcelona Britstown De Aar Emthanjeni Hanover Mziwabantu Nompumelelo Nonzwakazi Kareeberg Carnarvon Kareeberg Van Wyksvlei Vosburg Renosterberg Lukhanyisweni Petrusville Phillipstown Renosterberg Thembinkosi Vanderkloof Siyancuma Breipaal Campbell Douglas Griekwastad Mathlomola Ritchie Schmidtsdrift Siyancuma Siyathemba E'Thembeni Marydale Niekerkshoop Prieska Siyathemba Westerberg Thembelihle Hopetown Orania Strydenburg Thembelihle Ubuntu Loxton Masinyausane Richmond Sabelo Ubuntu Victoria West Umsombomvu Colesberg Kuyasa Kwazamwxolo

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Norvalspont Noupoort Umsombomvu KGALAGADI District Municipality Gamagara Dibeng Dingleton Gamagara Kathu Ga-Segonyana Ga Mohana Ga-Segonyana Gathlose Kuruman Part 2 Kalahari Blackrock Hotazel Kalahari Van Zylsrus NAMAKWA District Municipality Hantam Calvinia Hantam Kamiesberg Garies Kamassies Kamiesberg Karkams Kheis Klipfontein Leliefontein Nourivier Paulshoek Rooifontein Norap Tweerivier Karoo Hoogland Karoo Hoogland Sutherland Williston Khâi-Ma KhGi-Ma Pella Pofadder Nama Khoi Bulletrap Carolusberg Concordia Nama Khoi

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Okiep Springbok Steinkopf Namaqualand Namaqualand Richtersveld Alexander Bay Khubus McDougall's Bay Port Nolloth Richtersveld Sanddrif SIYANDA District Municipality !Kheis !Kheis Boegoeberg Gannaput Groblershoop Stutterheim ||Khara Hais ||Khara Hais Camp Informal Group 23 Military Village Karos Klippunt Lambrechtsdrif Leerkrans Paballelo Straussburg Swartkop Upington Benede Oranje Benede Oranje Kgalagadi Transfrontier Park Kai !Garib Alheit Augrabies Augrabies Mission Bloemsmond Cillie Kai !Garib Kakamas Kanoneiland Lennetsville Loxtonberg Lutzburg Marchand Raaswater Kgatelopele Danielskuil Five Mission Kgatelopele

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Lime Acres Tlhakalatlou Mier Groot Mier Mier Tsantsabane Beeshoek Boitshoko Ditloung Glosam Goedgedacht Groenwater Olifantshoek Postmasburg Tsantsabane Vergenoeg

Annexure B INTERNATIONAL BEST PRACTICES The challenges of managing a Fund of this magnitude and also ensure that there is greater transparency, efficiency and effectiveness on how it is utilised requires constant montioring and research on best practices internationally. It is based on this realisation that the Agency conducted benchmark studies covering eight (8) developing countries in 2010 to compare the source of fund for the universal service and access, who administer such funds, how the funds are disbursed and what kind of projects or services are supported.

Figure 2.1 below summarises the findings from the comparative study. The study indicates that in general, the source of funding is the levies from the operators and only two out of the eight countries (Chile and Korea) source the fund directly from government.

The study also found that in general, the fund is managed by an Agency or a specific committee. Few countries use a regulator to directly manage the fund. The most common method of disbursing the funds is through the competitive bidding or reverse auction which is sometimes called least-cost bidding to fund the extension of the ICT infrastructure to areas where there is no infrastructure. Nigeria also uses grants to fund community communication centres.

The projects that are funded are mostly the ICT infrastructure projects and some community-targeted initiatives to bring access to telephones services or internet.

In comparison with the eight countries indicated above, South Africa seems to be similar and the projects that are funded are also similar. The only difference is that in South Africa the contributions from the operators are collected by the regulator and deposited to the fiscus. All the funds that the Universal Service and Access Agency (USAASA) receive are therefore subjected to the provisions of the Public Finance Management Act (PFMA) (Act 29 of 1999) and the National Treasury regulations. For the purpose of this manual, the definition of grants and subsidies will therefore be based on interpretation of both PFMA and National treasury regulations.

Figure 2.1 Summary of benchmark studies with other countries comparing to South Africa

Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator

Page 78 of 122

Afghanistan Operational 2.5% of net Telecom The Telecom Development Fund (TDF) is intended to revenues of all Development Fund increase penetration in rural and un- served areas. The licensed service regulator, ATRA, is in the process of developing Afghanistan Telecom providers procedures and policies Regulatory Authority to use the funds effectively. The Ministry of (ATRA), regulatory Communications plans to subsidize telecom services to agency the public education sector and other social services and for disabled and poor people. In January 2009, the Ministry announced plans to finance the extension of telecommunications service to twenty under- served areas where 400,000 people were expected to benefit from the project. At that time the fund had collected USD 26.0 million through the operator levy.

Algeria Operational 3% of net Autorite de Regulation revenues of de la Poste et des fixed, mobile Telecommunications and satellite (ARPT), regulatory operators agency

Argentina Operational 1% of all operators' Fondo Fiduciario de Government to determine disbursement based on its gross revenues – Servicio Universal teledensity goals. Argentine operators (FFSU) or Universal The 2000 market liberalisation law established this can contribute Service Fund fund but it was not implemented for years because either by paying 1% The Reglamento there was no public organisation to administer it. of revenues to the General del Servicio fund or by proving Universal (RGSU) states that they are that the Fund is to be In July 2008 Banco Itau was selected by the industry as installing service in administered the administrator of the fund, subject to government under- served by a council made up of approval. In January 2009, the regulator SECOM areas. 10 people selected by approved the structure of the fund. various levels of government, operators and consumers.

Belarus Operational 1.5% of all Ministry of operators‟ revenues Communications and Information

Page 79 of 122

Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator

Bolivia Operational spectrum user and Fondo Nacional de FNDR is Bolivia‟s multi-sectoral development fund. As frequency Desarrollo Regional of June 30, 2009, the fund had executed USD 59.2 allocation fees, (FNDR), government million in telecommunications projects. A further licence fees, fines, agency USD the proceeds of 18.5 million has been committed. tenders for the granting of new concessions, and the net proceeds of the auctioning of seized goods Fundo de Brazil Operational 1% of service Universalização do Brazil's Telecommunications Services Universalization providers‟ gross Serviço de Fund (FUST) has accumulated USD 2.6 billion (December operational Telecomunicações 2008) but it is still unclear how the money will be used. revenues OR Telecommunications Due to conflicting legal interpretations regarding the use Services earned from the Universalization of the fund‟s resources, limited funds have been provision of Fund (FUST) disbursed. telecom services Agencia Nacional de Telecomunicacoes (Anatel), regulatory agency

Bulgaria Operational 0.8% of voice Universal Service Operators may apply annually for compensation for revenues minus Compensation Fund losses on the provision of universal service. certain Communications interconnection Regulation Commission and special access (CRC), regulatory costs agency

Burkina Operational 2% of service Fonds d‟Accès au The 2005 Universal Service Strategy identifies a number Faso providers‟ Service Universel, or of targets:

revenues Universal Service Fund . Provide public voice telephony service to an average Autorité Nationale de of 70% of selected rural localities in a given region; Régulation des . 95% of selected localities must be within 5km of one public access point Télécommunications . Private service must be available in rural areas with – regulatory agency prices no more than 25% above published fixed and mobile tariffs; and . Internet POPs in each provincial capital in each tendered region. The aim of the universal service strategy is complete coverage of the national territory, including coverage of 5,200 villages by 2010. The country‟s ICT strategy for 2006-2010 includes goals for the Universal Service Fund, including broadening the areas covered by the fund to include the production of multimedia content in national languages, the introduction of ICT in health and education, universal postal service, training and promotion of e-jobs.

Page 80 of 122

Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator

Chile Operational Government's Fondo de Desarrollo de All operators are eligible to receive funds. Subsidies are budget las Telecomunicaciones distributed through competitive bidding. The bid (FDT) OR evaluation emphasizes the lowest proposed subsidy for Telecommunications a particular project combined with a commitment to Development Fund short delivery time.

Subsecretaria de The original goal for the Fund was to provide public Telecomunicaciones telephone service to about 6,000 unserved localities (Subtel), regulatory – a target that was met during the period from 1995- agency 1999. After the Fund achieved Chile‟s social telephony objectives, the government initially redefined the Fund to support telecentre projects. Support was further extended to include backbone, broadband and mobile network expansion. Projects and programs financed by the fund during the last three years (2007- 2009) include: In 2007, the fund financed a fibre optic backbone extension project, which includes funding for a WiMAX installation; In 2007, the fund supported the extension of mobile service into unserved areas in Torres del Paine National Park. In 2009, the fund is supporting rural broadband expansion, promising up to USD 57 million in subsidies to extend broadband to an additional 3 million rural residents. In March 2009, Inverca Telecom won the contract by requesting zero government subsidy. Inverca plans to offer broadband over a WiMAX network. In July 2009, mobile operator Entel was granted USD 1.4 million in subsidy to extend mobile service to unserved, remote areas.

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China Planned From 2004 to 2007, China spent more than USD 2.7 billion on the Universal Telecom Service (Cun Cun Tong) project, which aims to provide telephone services to all Chinese citizens. Following government directives, six telecom operators have spent over USD 2.7 billion on The Universal Telecom Service project, government official Han Xia said. Han said that the government is exploring ways to establish a foundation, which could provide subsidies to telecom operators that provide such services for the interest of the public. In the meantime though, telecom operators are responsible for building and maintaining telecom infrastructures in rural areas, even though they may have to operate at a loss. According to MII-set targets, China will extend telephone services to every village in the country and Internet access services to every town by 2010. By 2020, every home is to have telephone services and every village, access to Internet services. (December 3, 2007, Interfax)

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Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator Colombia Operational All fixed and mobile Fondo de The FCM is required to invest in social telephone operators contribute Comunicaciones programs in low income rural and urban areas. Funds 5% of gross revenues (FCM) OR from the FCM are used to finance the Compartel of national and Communications program. international long Fund Compartel supports community telephones, community distance and mobile Ministry of Internet access centres and Internet access at services, and a Communications government facilities (schools, hospitals, city halls, percentage of net military). The Program guarantees the operation and revenues from fixed maintenance of the telephones for 10 years. Winning telephone, VAS and bidders are selected based on meeting technical trunking. requirements with the smallest subsidy requested. Over the last three years (2007-2009) Compartel has funded numerous projects.

In August 2007 Compartel allocated USD 17.6 million to projects designed to expand broadband access and USD 6.0 million to replace older networks in rural and underserved urban areas.

In 2008, Compartel had a budget of USD 62.9 million for the internet connectivity program, USD 30.6 million for telecentres, USD 5.0 million for improving service quality. By November 2008, Compartel had connected 15,500 public institutions to the internet – about 11,000 of the sites are in schools. In 2009, Compartel offered a maximum of USD 28.5 million to install a fibre cable to connect San Andres island to the mainland. Energia Integral Andina won the least-cost auction with a request for USD 27.0 million

Cote d‟Ivoire Operational 2% of revenue National As of June 2008, the fund had raised USD 16.0 million. from mobile Telecommunications Fund license fees (NFT)

Cote d'Ivoire Telecommunications Authority (CITA), regulatory agency Facing legal Czech delays Not more than Universal Service In 2008, net cost calculations were finalised for 2001- Republic 1% of all revenues.F und 2005. The % of the The decisions have been appealed in court by two mobile Czech contribution Telecommunication operators. The incumbent has also filed an appeal against depends on theO ffice, regulatory agency net cost calculations. All decisions on contributions for operator‟s market 2001-2005 have been adopted, and contributors‟ share payments have been made. A draft proposal would resolve the situation by allowing substitute payment from the state budget.

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Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator Fondo de Desarrollo de Dominican Operational 2% levy on users‟ las Telecomunicaciones In 2007, the fund had resources of USD 23.0 million. In Republic telephone and (FDT), or February 2008, a USD 4.65 million subsidy was offered to cable TV bills Telecommunications Codetel to finance a rural broadband project, but Codetel Development Fund chose not to accept government financing. Instituto Dominicano de las Telecomunicaciones (Indotel), regulatory agency

Ecuador Operational 1% operator Telecommunications Up to May 2009, USD 9.59 million had been collected levy on fixed line Development Fund from operators since 2000. State- owned fixed line operators (FODETEL) operators owed USD 35.0 million for unpaid contributions. The fund invested USD 19.98 million in Consejo Nacional de 2008. The projects focus on the creation of Telecomunicaciones community telecentres and educational centres (CONATEL), regulatory agency In 2008, the PROMEC telecentre project was cancelled after the winning bidder was unable to install the expected 1,120 telecentres. In August 2009, there are five projects in the “execution” stage and eight in the “implementation” stage.

Estonia Operational 0.04% of Universal Service Funds will only be disbursed if a designated US provider operators‟ Fund requests financial assistance to meet its obligations. revenue (for Estonian 2008) Communications Board, regulatory agency

Gabon Operational 2% of all Fonds Spécial du Service operators‟ net Universel OR Special revenues Fund for

Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator Universal Service

Agence de Regulation des Telecommunications (ARTEL), regulatory agency

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Ghana Operational 1% of fixed Ghana Investment Fund Funds are disbursed to aid in the provision of rural operators' net for Telecommunications telecentres will mainly take the form of competitive revenues (GIFTEL) grants. Fund disbursement for public telephony and internet POP projects is by open GIFTEL Board of tender. Trustees (independent Ghana‟s 2009 government Budget Statement said that agency) GIFTEL had completed 39 “common telecom facilities” enabling the extension of service to 273 communities.

Guatemala Operational Transfers from Fondo para el Funds to finance telephony projects are awarded government and Desarrollo de la through auction. The winning bidder must ensure a 70% of the Telefonia (FONDETEL) maximum of 500 inhabitants per line. USD 4.83 million amount OR Telephony was allocated to FONDETEL in 2009 by the Ministry of collected Development Fund Communications. The fund has financed the provision of through 11,375 lines that are still operational, covering over 2.6 Ministry of spectrum million people in Communications auctions until 3,926 communities. 2003

Hungary Operational Not more than Universal Electronic Universal service providers (USPs) need to prove that 0.5% of net Communications they suffer an unfair burden and that they incur net annual sales Support Fund avoidable costs related to the provision of universal revenues services before they can receive compensation. From National 2004 to 2007, USPs applied for compensation but their Communications requests were refused, as net avoidable costs were not Authority, regulatory substantiated. agency India Operational 5% of all operators‟ revenues Universal Service Funds are awarded by auction. Obligation Fund The USO Fund was originally used to set up village (USOF) community phones. In 2005, it expanded to include Department of Telecommunications support for individual lines in rural areas. In 2007, fund (DoT) support further expanded to includemobile service, mobile infrastructure, fixed and wireless broadband service and fibre optic backbone network in rural areas.

As of May 31, 2009, USD 5.42 billion had been collected for the fund, USD 1.78 billion had been allocated and USD 1.71 billion had been disbursed.

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Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator Indonesia Operational 0.75% of all Universal Service The USO tender held in late 2007 was cancelled because operators‟ Obligation Fund the participants were not able to meet the government‟s revenues (USOF) requirements. In 2008, the government re-ran the tender. The winner(s) will get regional fixed-line and a VoIP Directorate General of licenses. The winner(s) will also get 2.3 GHz frequency to Posts and provide WiMAX service. Telecommunications – regulatory agency In January 2009, Telkomsel won the tenders for the second and seventh packages of the universal service obligation project with total bids of USD 53.77 million. The other five packages will all be awarded through the USO committee selecting winners. A total of 24,051 villages will be connected to phone and internet services. Jamaica Operational USD 0.03 levy on The Universal Service As of April 2009, the fund had collected USD all incoming Fund Company, owned 56.8 million through its levies. The fund is primarily international jointly by the Spectrum intended to fund e-learning projects. By April 2009, 120 traffic terminating Management Authority schools had been supplied with internet connections and on the fixed and the Ministry of ICT equipment. An additional 60 schools were expected to network and a Energy, Mining and be connected by the end of August 2009. USD 0.02 levy on Telecommunications all incoming international traffic terminating on mobile networks

Kenya Planned Government transfers and operator levies Madagascar Operational 2.0% of all Fonds de operators‟ Developpement des revenues Telecommunications et TIC, or Telecommunications and ICT Development Fund

Office Malagasy d'Etudes et de Régulation des Télécommuniations, regulatory agency

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For fiscal 2008-2009, the levy amount collected was USD Malawi Operational 1.0% levy on Universal Access 1.7 million. In addition, the World Bank‟s International operators‟ revenues Fund Development Association provided the fund with a USD Malawi Communications Regulatory Authority1 .2 million grant to implement pilot projects. (MACRA), regulatoryUSD 600,000 was allocated to the UA telephony pilot, agency which involves a 5-year contract to establish and manage 1,274 public phones in rural areas of ten districts. USD 600,000 was allocated to the UA internet pilot, which involves a 5-year contract to establish internet access in eight district centres. Access takes the form of at least one public internet access centre per district and private service provision at commercial rates within a 5km radius. Funds are awarded via least subsidy competitive tenders. Globe Internet Ltd. was the winner of the internet pilot, having requested subsidy of USD 425,300. Zain was the sole bidder for the telephony pilot.

Malaysia Operational Fixed and mobile Universal Service The USPF was established in 1998. When the Fund was network operators Provision Fund created, incumbent Telekom Malaysia was the sole contribute 6% of (USPF) universal service obligation (USO) operator (the only

their weighted Malaysian operator with access to the Fund) for an interim period Communications and revenue from Multimedia Commission with costs recovered from a USO charge on all designated services (CMC), regulatory agency interconnecting traffic. Contributions by all service to the Fund providers commenced at the end of 2002. (approximately 2% of total revenue) The Commission‟s system for universal service provision affords access to both basic telephony services, Internet services, public payphones in rural areas and broadband. The system also defines objectives for both collective access and individual access to services. The funds can be used to provide infrastructure and services in areas with penetration levels of 20% below national averages.

On average, the fund collects in the range of USD 178 – 207 million annually. An April 2009 estimate put USP resources at around USD 853 million. As of December 2007, 71,125 individual phone lines and 3,259 payphones had been installed in under-served areas financed by the fund. In December 2008, MCMC published a list of underserved areas that included 373 areas in 13 states. The government has given approval for MCMC to use the USP Fund for rolling out broadband services in underserved areas. In 2009, a project was initiated to fund 58 community broadband centres in Sarawak by the end of 2010. USD 118 million in funding is being provided by the fund. In 2008, MCMC initiated the “Time 3” programme involving the construction of 1,250 communication towers. MCMC allocated USD 142.2 million from the Fund to help finance the project. The first phase, involving the installation of 600 towers, runs from July 2008 until December 2009. Page 87 of 122

Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator Mauritania Operationa A percentage of all Fonds d‟Accès operators‟ Universel (FAU), or revenues Universal Access Fund

Agence d'accès aux services universels

Mongolia Operational 2% of net taxable Universal Service Assets of the Universal Service Obligation Fund are income from all Obligation Fund disbursed to finance the delivery of essential operators (USOF) communications services to un-served inhabitants and remote areas, and to construct, expand and renovate Communications communications networks. A Universal Access Regulatory Strategy for a targeted USOF program was developed Commission, in 2005 and has been progressively updated and regulatory agency substantially implemented by late 2009.

The World Bank provided seed finance of over USD 5.4 million. Those funds were used to support a number of projects, including:

 Pilot projects in 2006-2007 to install VSAT in 32 baghs (nomadic rural communities) and mobile and Internet POPs in two areas;  The main roll-out of voice services in the form of mobile service in 90 soums (districts) and VSAT service in 152 baghs; and  Broadband wireless Internet points of presence in 27 rural soum centres and 7 aimag (provincial) centres – all centres have fibre connections and IP connectivity.

The USOF has also used more than USD 2.0 million of its resources, in addition to the World Bank‟s seed financing for additional fiber connections and IP connectivity in many districts.

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Morocco Operational 2% levy on all Fonds du Service The fund has three priority areas:

operators Universel des  Rural public telephony Télécommunications  Installation of community centers; and (FSUT), or Universal  Expansion of broadband capacity. Service Fund  CGSUT has implemented four universal service projects: Comité de Gestion du  Project 1 – roll-out of Internet via ADSL in 159 rural Service Universel locations; (CGSUT) (Universal  Project 2 – GSM service to 126 new rural locations without coverage; Telecommunications  Project 3 – Developing 42 public access centres Service Mangement (teleboutiques) in the largest shopping areas; and Committee)  Project 4 – the strengthening of GSM in 40 rural areas without coverage.  Two further projects have been proposed by providers and are under consideration for adoption and financing.

Mozambique Operational 1% levy on all Fundo do Serviço de The fund‟s objectives are to promote investment operators Acesso Universal (FSAU) in the provision of service in rural areas at a fair and affordable price. The short-term targets for Instituto Nacional das telephony are to enable the establishment of a Comunicações de publicly accessible telephone within all localities Moçambique, with more than 1,000 inhabitants as well as within regulatory agency 5km of every rural inhabitant. The short term targets for Internet services are to extend an Internet point of presence – and public access to the Internet though a telecentre – to all District Centres. The UA programme began with two pilot projects:  A telephony pilot project to extend transmission, access networks and UA services to one zone of the country, covering five districts of the province of Zambézia and three districts of the province of Nampula, and;  An Internet service pilot project to provide an advanced level of service to four District Centres in the provinces of Zambézia and Nampula through the provision of Internet POPs, with a minimum service radius of 5 km from the District Centre.

A bidding process for the UA pilot projects was launched in February 2007. The telephony tender did not receive any bids and was therefore unsuccessful. The internet tender was won by Moazambican broadband wireless operator operator INTRA Lda.

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Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator Nepal Operational 2% levy on the Rural The main telecommunications objective of the revenues of the Telecommunications government of Nepal is to provide at least two incumbent Development Fund telephones in each Village Development Centre (VDC) in operator, ISPs and (RTDF) the country. A Rural Telecommunications Special (RTS) mobile operators Program has been initiated to offer subsidies for rural Nepal Telecom service rollout. This program uses funds provided by the Authority, regulatory World Bank, and not funds from the RTDF. The agency regulator, the NTA, intends to fund rural projects using subsidies from the RTDF, but has not yet done so. A February 2008 estimate put the size of the RTDF at USD13.0 million. Funds from the RTDF are being provided to Nepal Telecom (also known as Nepal Doorsanchar Company Limited or NDCL) to fulfill their universal service obligation. NDCL offers service in 2,813 of Nepal‟s 3,914 VDCs. Until the end of 2009, the minimum objective will be to extend coverage of voice service to all Village Development Committees. Not less than 90% of funds are to be used for voice access and not more than 10% for other services such as Internet. Funds for subsidising universal access are only to be applied to the provision of voice telephony in areas where there is no coverage.

In 2003, a tender was issued to offer a competitive rural service subsidy for one operator licence in Eastern Nepal. STM Telecom Sanchar Pvt. Ltd., a VSAT operator, has now installed hub stations at Kathmandu and Biratnagar, and, as of July 2007 had installed 1,793 PCOs using 809 VSAT terminals in 599 VDCs in the Eastern Development Region.

Nicaragua Operational 2% operator Fondo de Inversión de Funds awarded through public tender. levy Telecomunicaciones In March 2009, Telcor planned to install 347 public (FITEL) OR telephones in rural areas at a cost of USD Telecommunications 10.2 million. USD 3.0 million of the cost was funded Investment Fund through the universal service fund, Fitel. The project is Instituto Nicaraguense to be completed in 2011. de Telecomunicaciones y Correos (TELCOR), regulatory agency

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Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator Niger Operational 4% of all network / Autorite de facilities-based Regulation operators‟ gross Multisectorielle revenues (ARM), regulatory agency Nigeria Operational 50% of annual Universal Service Subsidy through competitive bidding. operator levy Provision Fund The fund has subsidized 47 wireless base stations, (USPF) and internet connections for 109 schools in 2007 and Universal Service 365 schools in 2008. For Provision Fund 2009, the fund plans to subsidize ICT facilities for a Board / Universal further 550 schools, establish 109 Service Agency Community Communications Centres and accelerate the expansion of mobile coverage through subsidies of passive colocation infrastructure such as towers and generators.

In April 2008, the fund had USD 64.6 million in total resources.

Pakistan Operational 1.5% levy on the Universal Service The fund is targeting rural penetration as well as revenues of all Fund Company universal access targets country-wide, financing projects operators Limited to provide basic telephony services, broadband service, fibre optic backbone network to rural and un-served urban areas.

As of August 2009, the fund had sponsored rural telephony projects in nine areas, broadband projects in three areas and fibre optic projects in two areas.

Paraguay Operational 20% of operators‟ Fondo de Servicios Subsidy is awarded to the lowest bidder. Projects corporate taxes Universales (FSU) OR Universal Service Fund supported include payphones, Internet access for

Comision Nacional de schools and a nation-wide 911 emergency calling Telecomunicaciones system. (Conatel) – regulatory agency In September 2008, Conatel awarded a subsidy of USD 1.75 million to operator Copaco to extend rural internet services.

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Peru Operational 1% of all telecom Fondo de Inversión de Peru has defined universal access as access to a set of and CATV Telecomunicaciones essential services that includes voice telephony, fax and operators' gross (FITEL) OR data, and free emergency calls.

revenues Telecommunications FITEL is required to create a list of projects that are Investment Fund eligible for subsidies, by determining which projects

Organismo Supervisor have the greatest social benefit. FITEL cannot allocate de Inversion Privada en funds to areas that already have access to Telecomunicaciones(OS telecommunications services. Funds are allocated through a competitive bidding process for the projects. IPTEL), regulatory

agency Priority localities to receive FITEL funding include:

. rural towns (with a population of more than 400 inhabitants and less than 3,000 inhabitants); . district capitals; and . towns in high social interest areas (as determined by the government).

OSIPTEL collects 1% of gross revenues from the telecommunications sector to finance FITEL. For FY2008, Fitel‟s budget was USD 32.8 million. Fitel resources, including FY2008, were USD 246.9 million. By January 2005, over 6,500 rural villages had at least one public telephone financed through FITEL. In 2008 and 2009, FITEL awarded subsidies for a number of projects focused on the provision of broadband service to rural areas. The projects include efforts to:

. provide broadband to 89 localities for USD 3.7 milllion;

. provide rural internet service to 1,050 localities – a contract won by Televias Andinas in August 2008 for a subsidy of USD 9.4 million;

. provide broadband to 1,927 localities;

. provide broadband to 3,852 localities – a contract won by Telefonica in February 2009 for a subsidy of USD 48.8 million. The project includes broadband for 1,019 communities, fixed telephony to 497 communities, and public telephony to 3,010 communities;

. provide broadband to 2,120 localities; and

. provide broadband to 311 localities.

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Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator Poland Operational Levy not greater Universal Service Funds are paid to operators who are required to meet than 1% of Fund universal service requirements within their operating operator‟s net territory. Subsidy is paid based on the net cost of service Office of Electronic revenues for provision. Communications operators earning (UKE), regulatory The fixed incumbent, which was designated as over EUR 2 million agency universal service provider in 2006, this year (2009) applied for compensation of USD 92.2 million, to be shared by all operators with revenues above USD 1.6 million. Following the Provincial Administrative Court's judgement, which ruled against last year's refusal to grant compensation on procedural grounds, the President of UKE was verifying the cost calculations. A decision on compensation is expected in the second half of 2009.

Romania Operational 0.398% of revenue Universal Service The resources of the Universal Service Fund are from all providers Fund allocated on the following basis: 45% of funds for of public electronic financing telecentres, 35% of funds for subsidizing low National Authority for communications income families to enable access to the fixed network Management and networks with Regulation inand 20% of funds for financing public phones and revenue of at least Communications ofproviding accessible directory services. ANRC collects a EUR 3 million Romania (ANCOM),levy from providers of public electronic communications (2006) regulatory agency networks and from the providers of publicly available telephone services, with revenue for the previous year No contributions of EUR 3 million or more. The annual amount paid by were collected in each operator was not to exceed EUR 2 million for 2005 2007 or 2008 and EUR 3 million for 2006.

The fund finances the national telecentres programme. Universal service providers designated for each village by a public tender procedure install telecentres with phone, fax and Internet services. Public tenders are organised for several villages at a time. The minimum duration for the functioning of the telecentres is three years. For each village, the tender starts from a level of subsidy estimated as being sufficient to cover the net cost. Any provider of public electronic communications networks is allowed to bid, irrespective of the technology used. The provider submitting the lowest bid for a subsidy wins the tender.

By the end of 2008, 633 telecentres had been established. In 2009, the government is considering altering the universal service program to fully comply with the EU‟s Universal Service Directive.

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Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator

Russia Operational 1.2% of revenue Universal Service Funds distributed through competitive tender from all fixed Fund process. Initially, payphones in unserved regions are and mobile the fund‟s focus. Federal operators Communication In June 2009, the FCA announced that it projected Agency (FCA) 2009 fund contributions to be USD 335 million. The FCA expected 150,000 payphones and 20,000 public internet access points installed under the universal service program by the end of 2009.

Rwanda Operational 2% levy on Universal Access Fund By the end of 2008, the Universal Access Fund had revenue of all Rwanda Utilitiesd isbursed USD 1.49 million. The Fund‟s 2008 focus was operators Regulatory Agency,on lowering bandwidth costs and the extension of ICTs regulatory agency in rural and poor urban areas. Network extension is being accomplished through connecting key Rwandan institutions.

Saudi Arabia In final planning Universal Service Fund The USF will become operational in 2010. Its stages 1% of operator (USF), administered net revenues under the regulator (CITC) revenue base from operator levies over the are stipulated in planned 7 years, to achieve the UAS targets, will the universal access and service exceed USD 1 bn. The USF will focus on provision of policy US of telephony (mobile or fixed) to localities with the final <4% of population that are without mobile service to -90 dBm signal level, and the provision of US to 512 Kbs bandwidth Internet service to all localities above 100 population, and UA to voice and Internet services to remote localities with less than 100 population. The program will commence with a pilot project in Q1/2010.

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Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator South Africa Operational 0.2% of all Universal Service The Universal Service Fund was established by the operators' Fund Telecommunications Act of 1996. The 2001 revenues Universal Service and Telecommunications Amendment Bill limits annual Access Agency of South contributions to the fund to 0.5% of revenue. At Africa, specially created current levels, annual contributions are in the USD unit to manage fund 18.4 – 23.5 million range. From 1998-1999 until 2007-2008, total operator contributions were USD 81.8. Total USAF appropriations for that period were USD 29.2 million.

The development of telecentres was initially given priority by the Fund. By the year 2007- 2008, the USAASA had established 155 telecentres, and the focus of the telecentre program had shifted to rehabilitation in order to replace obsolete equipment.

After telecentres, the fund‟s focus shifted to assisting the recipients of Under-served Area Licenses (USALs). These operators are organisations licensed to provide voice and data services in under-served rural districts.

Each licensee for the 27 identified areas was to receive a USD 735,000 subsidy from the Universal Service Fund spread over 3 years. Seven companies have been awarded USALs.

In May 2007, the government directed ICASA to merge the USALs and issue one Provincial Under-Serviced Area Network Operator (PUSANO) license where there is more than one license in a province.

The new Electronic Communications Act requires that the USALs convert their licenses into one of the new categories established under the Act.

The fund also subsidizes E-school Cyberlabs, ICT Telecontainers and Community Digital Hubs.

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Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator Sri Lanka Planned Levy on Fund administrator to be outgoing and set up by the Ministry of incoming Finance international calls Sudan Operational USD 0.085 / Information Support Sudan‟s ICT Fund was established in 2004. The fund‟s dialup Internet Fund Nationalo bjectives include bridging the digital divide and minute, USD Telecommunications enhancing capacity building. 0.85 / Corporation (NTC), regulatory agency Projects funded by the ICT Fund include: a five year plan international to build 2,500 knowledge centres; a 5 year plan to build minute, USD a computer lab in all 5,000 schools, and; a 5 year plan to 0.42 / mobile-to- distribute two million computers to every home and to mobile minute, academics. 50% of unused minutes of prepaid cards, contribution from operators, in cash or in kind, and contribution from government, in cash or in kind. Swaziland Operational 0.1% levy on all Universal Service For 2008, SPTC reported license fees and universal operators‟ Obligation Fund service obligation fees of USD 2.45 million. revenues Swaziland Posts & Telecommunications Corporation (SPTC), regulatory agency Tanzania Planned Annual Universal No information contributions by Communications Access any electronic Fund (UCAF) communications or Fund administration postal licensee to and the universal the Universal communications access Access / Service program are under Fund not to exceed development with 4.5% of revenue World Bank assistance

Thailand Operational 4.0% levy onUn iversal ServiceF unds are disbursed through competitive bidding. operators‟ Obligation Fund Operators have universal service obligations to extend revenues service to unserved areas. If they choose not to meet their National obligations, the operators must pay the 4.0% universal Telecommunications service levy so that another operator can be subsidized to Commission, regulatoryprovide service in that area. agency

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Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator Togo Operational 2% levy on net Autorite de revenues of all Reglementation des operators Secteurs de Postes et Telecommunications (ART&P), regulatory agency

Turkey Operational 2% of the Universal Service No disbursements had been made as of authorisation fees Fund December 2008. collected by the Ministry of Transport and Telecom Authority; Communications 1% of net revenues of all operators (except GSM); 10% of payments by GSM operators to the Treasury; 20% of administrative fines collected by the Telecom Authority; 20% of what remains in the budget of the Telecom Authority budget after all expenditures are deducted.

Uganda Operational 1% levy on all Rural Communications Subsidies are awarded through a competitive process. sector Development Fund Specifically, funds are only available to areas where participants service provision is not feasible or unlikely to be Uganda including telecom provided by operators within the next 1-2 years without Communications operators, the subsidy. Commission, postal service, regulatory agency For fiscal year 2008-2009, the RCDF levy generated couriers, ISPs USD 4.0 million and development partners contributed an additional USD 2.0 million to the fund. The RCDF has financed projects to provide telephony, internet access, internet POPs, and internet exchange point and content development. The total project cost to provide telephony service to the country‟s 154 unserved areas was estimated at USD 11.7 million. The total subsidy awarded was USD 5.2 million.

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Country Fund Funding Fund Title and Disbursement of Funds Status Source Administrator By August 2008, the fund had financed the installation of 15 telecentres, computer labs in 106 rural schools, 1,704 payphones, 54 internet cafes, 52 Internet POPs, 55 basic ICT training centres and 78 district web portals.

A new 5-year plan for the fund, “RCDF II”, was released in 2009. The plan aims to install one payphone per 500 people in rural areas and establish one community information centre per rural district. To accomplish these objectives, the UCC expects to require funding of USD 17.2 million per year. Ukraine Planned 3% levy on all Universal Service operators‟ Fund revenues Venezuela Operational 1% levy on all El Fondo de Servicio Funds are awarded through minimum subsidy operators‟ Universal (FSU), or auctions. revenues Universal Service Fund The fund awarded two projects in 2005 and three A board consisting of the in 2006. The projects were for the installation of head of the telecom telecentres, and connecting agricultural estates regulator, and government offices. representatives from By the end of 2008, the fund had collected USD three ministries and 210 million. In 2008, the fund disbursed USD a representative of 2.86 million to the Cooperative Association for the contributing installation, operation and management of eleven operators access points in the states of Barinas and Merida.

Vietnam Operational 3% of fixed line Vietnam In 2008, operators VNPT, Viettel, EVN Telecom and operators‟ Telecommunications SPT were assigned the responsibility of implementing revenues and Fund (VTF) OR Vietnam a program to install fixed lines in 5% of mobile Public Utility 254 unserved communities. In addition, around operators‟ Telecommunications 600 communes without public internet were to get revenues Service Fund service by the end of the year. An additional 600 dial-up access points were to be upgraded to Ministry of Post and broadband. Telematics The Vietnam Public Utility Telecommunications Service Fund (VTF) collected around USD 101.2 million in 2007 from six local telecom operators. Of this, USD 68.7 million was to subsidize end- user charges and installation costs for 110,000 new fixed lines and 5,000 Internet accounts. VTF also gave soft loans of USD 20 million to operators to execute public telecom projects in 2007.

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Annexure C STUDY OF SOCIO-ECONOMIC IMPACTS OF BROADBAND DEVELOPMENT IN SOUTH AFRICA 1 Introduction and Background

This report presents the results of a study of Socio-Economic Impacts of Broadband Development in South Africa, conducted by David N. Townsend & Associates (DNTA) on behalf of the Universal Service and Access Agency of South Africa (USAASA). The study is designed to provide USAASA and the Government of South Africa with an assessment of the potential impacts on South Africa’s economy and society of anticipated investments to foster broadband ICT growth.

1.1 Background

Research into the benefits and impacts of broadband ICTs for developing societies such as South Africa, and particularly for low-income, rural, and marginalized groups, is very much a new field. A number of academic and international institutions such as the ITU have begun to formulate methods for comparative analysis of the role of the Internet and the digital economy in macro and micro level economic and social outcomes. Despite this, available data, especially from developing countries, is relatively scarce. Still, the advantage of globally interconnected systems and on-line collaboration means that as data and studies become available, they can be instantly incorporated into an ever- growing body of knowledge, which is yielding new insights daily.

In one widely cited 2009 study by the World Bank1, it was calculated that, in high income countries, a 10% increase in broadband service penetration in a country correlates with (and facilitates) an increase of 1.21% in national GDP growth. For middle and lower income countries, the study found that the average increase in GDP growth was 1.38% for each 10% increase in broadband penetration. These results have established an initial benchmark for broadband related economic impact studies, as well as a strong incentive for governments to invest in broadband growth.

More recently, research and reports have assessed the economic impacts of broadband development in greater depth, particularly focusing on developing countries. A comprehensive ITU- sponsored study in 20122 determined five types of broadband impacts on an economy: 1) contribution to economic growth; 2) contribution to productivity gains; 3) contribution to employment and output; 4) creation of consumer surplus and 5) improvement of firm-level efficiencies.

Another recent study for the Inter-American Development Bank3, focusing on the impact of broadband penetration on economic growth in Latin America as well as the Caribbean, and using a larger data set, found a substantially higher effect of broadband penetration on an increase in GDP growth. For every 10% surge in broadband penetration, 3.19% of GDP growth was observed. Clearly, more data and studies will be required to refine these types of findings, but the strong lesson is that broadband has important positive economic effects, possibly very large for many economies. For purposes of this study for USAASA, the consultant has tested a range of such assumptions, also taking account of South Africa-specific trends and data. See Section 2 below.

1 Qiang, C. and Rossotto, C., “Economic Impacts of Broadband,” in World Bank, Information and Communications for Development, 2009, Ch. 3. 2 Katz, R., “Impact of Broadband on the Economy,” International Telecommunication Union BDT, April 2012. 3 García Zaballos, A. and López-Rivas, R., “Socioeconomic Impact of Broadband in Latin American and Caribbean Countries”, Interamerican Development Bank, Nov. 2012.

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Beyond macro GDP effects, the other areas of economic benefits from broadband ICTs can also be quite significant. Adoption of broadband at the company level has demonstrated positive effects on productivity and job creation.4 The bulk of impacts to date have been realized through adoption of broadband ICTs by larger, multinational firms, while the greatest potential for further growth remains for small and medium enterprises (SMEs) to improve operating efficiency through better integration of broadband ICTs in production, sales, marketing and distribution processes.5 Availability of reliable broadband infrastructure and services in rural areas in particular can create an important foundation for businesses to locate and expand in these areas, helping to reduce the pressures of excess urbanization. This study looks at many of these issues within the context of the provinces for which USAASA has proposed to allocate funding to expand broadband access. See Section 3 below.

1.2 Study Approach and Analytical Framework

In line with the above discussion, the research and analysis conducted for this study has approached the issue of socio-economic impacts of Broadband from two perspectives: macro and micro. The macro-level analysis (Section 2) follows the methods and precedents of the recent studies referenced above, to provide a high-level view of the overall potential impacts of broadband development on the national economy of South Africa.

Beyond this macro approach, however, the study develops a methodology for examining the micro- level impacts of Broadband from the “ground up,” applying theoretical and empirical factors to specific data for each province within South Africa. This approach allows estimation of the potential impacts of Broadband expansion in each region at the level of business income and employment, household expenditure, government accounts, education, and other factors. The assumptions, methods, and data used to develop this analysis, along with the findings of the exercise, are given in Section 3.

2 Macro National Analysis and Results

This section presents a high-level analysis of the potential impact of expanded broadband access and utilization across South Africa as a whole. It addresses the question of how much economic growth the country might realize from widespread increases in broadband penetration, consistent with the approach of similar macro-level studies in other countries.

4 Katz, ITU 2012. 5 McKinsey & Co., 2012.

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2.1 Methodology and Assumptions

As outlined above, to conduct this analysis we have followed the general methods and findings of the range of recent studies that have approximated the impacts of broadband development on GDP growth. This analysis provides a high level estimate of the range of potential economic growth that might be expected to result from increasing broadband penetration in South Africa. This approach is based on the following general inputs and assumptions:

The baseline level of current broadband penetration in South Africa is established at 11%. This is less than some reported figures for 3G mobile, for example, but seeks to represent actual penetration of the service within the population, excluding those with multiple SIM cards, for example.

The baseline national GDP is set at 3.14-trillion Rand, while the baseline GDP per capita is 70,000 Rand, figures roughly in line with the economy as of 2013, when other pertinent data were available.

Two scenarios for broadband growth, and for the correlation between broadband and GDP growth, were tested, a low-end and a high-end, to give a reasonable range of likely results. The low end assumes slow growth in penetration and relatively minor impact on GDP, while the high end projects faster growth and more extensive impact.

2.2 Results and Analysis

Following the approach described above, we can calculate the likely range of economic growth to result from increasing broadband penetration in South Africa. The following tables and figures offer illustrate these findings for the low-end and high-end scenarios.

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The tables show the bi-annual and cumulative impact of forecast national broadband growth on South Africa’s GDP and GDP per capita, for both the low and high scenarios. Note that in each case the annual impact of new broadband users on national income grows slowly at first, then accelerates. Under the low-end scenario, these GDP gains peak in years 2024-25 at 0.60% net GDP increase in that period, when overall broadband penetration is seen to be at 41%. On the high end, annual GDP growth reaches 1.85%, with broadband penetration at 56%. The cumulative impact over the full 11-year study period is a 1.63% annual increase in GDP at the low end, and a 4.20% cumulative GDP increase at the high end. These results are shown in the graphs below: low scenario:

45% 1.8% 40% 1.6% 35% 1.4% 30% 1.2% 25% 1.0% BB penetration 20% 0.8% % GDP increase 15% 0.6% cum % GDP incr 10% 0.4% 5% 0.2% 0% 0.0%

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high scenario:

60% 4.5% 4.0% 50% 3.5% 40% 3.0% 2.5% 30% BB penetration 2.0% % GDP increase 20% 1.5% cum % GDP incr 1.0% 10% 0.5% 0% 0.0%

Perhaps the most important figures generated by this analysis are the impacts on total GDP, in absolute and per-capita terms. These findings are highlighted in the next graphs: low scenario:

45% 250 40% 35% 200 30% 150 25% 20% cum GDP incr (R-bil) 100 15% BB penetration

10% 50 5% 0% 0

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high scenario:

60% 600

50% 500

40% 400

30% 300 cum GDP incr (R-bil) 20% 200 BB penetration

10% 100

0% 0

These results illustrate the cumulative economic impact of broadband growth over the forecast period. In the early years, the net effect is relatively small, but as the gains accelerate, the combined total effect on the economy becomes quite strong: under the low-end scenario, it equates to a total GDP increase of R225-billion in national income by 2025; at the high end, the combined GDP increase is over R520-billion. Note that this growth would be essentially in addition to any other economic development or trends that the country might experience during this time.

3 Microeconomic Analysis of Broadband Impacts by Province

This aspect of the study develops a new approach to evaluate and forecast the potential impact of Broadband growth on a more “micro” level, within each of the seven provinces of South Africa that are currently incorporated in the USAASA Strategic Plan (Eastern Cape, Free State, Limpopo, Mpumalanga, KwaZulu-Natal, North West, and Northern Cape). The model developed for this analysis is based upon disaggregated data from all seven provinces, and a series of algorithms and calculations that build from that data to estimate how steadily increasing Broadband connectivity for businesses and households might affect socio-economic conditions, especially provincial GDP, unemployment, and incomes, among other factors.

This section describes the framework, methodology, assumptions, and analysis of this model. This is a prototype model, based upon available data but also involving a range of key assumptions where detailed data are not readily available at the provincial level. The forecasts are given within reasonable ranges of uncertainty, and should be taken as a foundation for ongoing analysis and refinement as Broadband penetration and related data sources continue to expand.

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3.1 Methodology and Assumptions

The methodology behind the analysis of this micro-level study is briefly described herein. The approach is based partly upon experience with studies of the impacts of traditional telecommunications, while developing new theoretical foundations to apply to the Broadband era.

3.1.1 USAF expenditure and Broadband access and penetration

The analysis is based upon a set of estimates and assumptions regarding allocation of Universal Service and Access Fund expenditures toward accelerating Broadband access in South Africa (including both fixed public access and mobile 3G/4G service). The model begins with estimates of current levels of Broadband penetration by province, and then builds out a forecast of growth based on responses to USAF funded increases in access to Broadband services. Note that the subsidies are allocated only during the first five years of the study, while the impacts are expected to continue to increase penetration throughout the 10-year study period and beyond.

These inputs are partly based upon the findings of the Access Gap model, which calculated the size of the “economic access gap” and “market gap” for public fixed and private mobile Broadband service within each province. The market gap is the portion of the population that should be served on a commercial basis alone by market forces, while the economic access gap is the remaining population, for which subsidies will be required to deliver Broadband access. The Access Gap model estimated the amount of USAF subsidy needed to close the latter gaps. This impact analysis model applies those subsidy amounts over time, and assumes Broadband access growth commensurate with such spending. It is further assumed that, as the Fund subsidies are deployed, the market will respond by closing the market gap as well.

Increasing Broadband access is assumed to yield steadily increasing penetration, i.e., subscribership and use of the services as they become available and familiar to citizens and businesses. The model employs variable assumptions concerning penetration growth arising from expanded Broadband access and rising adoption rates for services due to greater awareness and other factors (including USAASA programs).

As mentioned, although the model’s baseline forecasts are based upon these assumptions regarding subsidies and penetration, but it is possible to examine any alternative scenarios for such input figures.

3.1.2 Impacts of Broadband on businesses, employment

The starting point for the analysis of Broadband’s economic impacts within a province is a set of assumptions and algorithms for how domestic businesses will respond to, and benefit from, the wider availability of Broadband ICTs. These impacts can be felt in two key areas: (1) savings and efficiency gains for existing business operations, reducing input costs for various firms both large and small, and (2) establishment and expansion of new business opportunities, resulting in increased output for the province’s economy.

Combined, these effects tend to increase overall business productivity, leading to higher net income, and expanded employment, in all sectors, although to differing degrees for different categories of business and economic activity. For purposes of this analysis, where detailed data on provincial

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industrial and employment sectors are not fully available, we have assumed four general categories of business/employment:

. Farming and Labor . Self-employment and small business . Professional . Government

For each broad sector, the model assumes differing levels of impacts from the adoption of Broadband, in terms of both input efficiencies and output expansion, in relation to the general degree to which ICTs can influence the business activities involved. The greatest impacts are in the Professional and Self-employment/small business categories, while the smallest effects are in the Farming/Labor sectors.

Applying the estimated factors for the impact of Broadband to the baseline levels of business activity (GDP) in each province determines the degree of annual income growth associated with the given increase in Broadband penetration. For example, an extra 10% in Broadband deployment within the province is assumed to include adoption of Broadband by 10% of the province’s businesses, distributed in proportion to the estimated levels of employment in each sector, with varying levels of savings and efficiency gains in each category.

The results of these calculations produce estimates of the level of overall GDP growth within each sector, and across the province as a whole, for each 2-year period of the rollout of expanded Broadband access. The provincial GDP results can then be translated directly into other impacts, particularly increases in employment levels, and commensurate decreases in the unemployment rate. For all of these calculations, all other economic and demographic conditions are held constant, so that the results can be isolated from potential other trends influencing a province’s economy.

3.1.3 Impacts of Broadband on households, consumers

The impacts that Broadband access will have on Households and consumers in general will be indirectly influenced by the economic impact from businesses, as well as by additional impacts for those who become new users of Broadband. The model estimates these indirect and direct effects in four areas: income from employment, as follows:

Income from employment: The new jobs (including self-employment) created by business adoption of Broadband, as described above, are assumed to create new income for households, at the existing average rate of per-job income.

Government support payments: This factor actually decreases as employment increases, on the assumption that households, on average, require less assistance as the local economy improves.

Other income sources: Existing levels of non-employment income (for example, remittance payments from outside the country) are assumed to increase in proportion to Broadband penetration, as the technology enables more efficient access to such sources.

Household cost savings: Households that adopt Broadband are assumed to save on costs of a variety of expenditures, as a percentage of their overall income; these savings (which would be reallocated to other, discretionary spending) are equivalent to net income increases for economic purposes.

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These factors are all driven by the rate of Broadband penetration growth within the province, and the baseline levels of household income from each source.

3.2 Summary Results

This section provides the summary results from all provinces, combined where appropriate to show the equivalent “macro” impacts. Note, however, that these results should not be directly compared to the national level findings in Section 2, as those calculations involved the entire South African economy, whereas the combined results here are only for the seven provinces studied.

Broadband penetration

To begin, Figure 3.2a shows the broadband penetration growth over the study period for each province:

70.0%

60.0%

50.0% Eastern Cape Free State 40.0% Limpopo 30.0% Mpumalanga 20.0% KwaZulu-Natal

10.0% North West Northern Cape 0.0%

Fig. 3.2a: Broadband penetration growth results, all provinces

**Each province tends to increase penetration at its own pace: those starting with somewhat higher penetration tend to grow faster, and vice-versa. The end results are fairly dispersed, with KwaZulu- Natal and Northern Cape achieving nearly 60% penetration, while Limpopo peaks at about 35% by 2025. Details of these forecasts can be seen in the individual province results.

Employment

The next topic is employment, and the impact of USAF broadband investment, and of adoption of broadband by businesses, on employment levels across the seven provinces. Again, details of the individual provincial results are shown in the subsequent sections, but the net combined results are given in Figure 3.2b:

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800,000

700,000

600,000 Northern Cape 500,000 North West 400,000 KwaZulu-Natal

300,000 Mpumalanga

200,000 Limpopo Free State 100,000 Eastern Cape -

Fig. 3.2b: Net increases in employment, all provinces

The findings forecast a net increase in employment over a decade among all seven provinces of over 700,000 new jobs, with the largest growth in KwaZulu-Natal, Eastern Cape, and North West. Note that a large portion of new employment occurs in the early years, as the USAF stimulation helps create about 350,000 jobs within the first four years.

Economic growth

Finally, the study examines the impacts of broadband growth on overall provincial GDP, based on the combination of direct infrastructure investment, business operational cost savings and efficiency gains, and productivity improvements resulting from increasing adoption of broadband ICTs within the economies of the different provinces. Combined results are summarized in Figure 3.2c, while further details on each province are included in the subsequent sections.

275,000 250,000 225,000 200,000 Northern Cape 175,000 North West 150,000 KwaZulu-Natal 125,000 100,000 Mpumalanga 75,000 Limpopo 50,000 Free State 25,000 Eastern Cape -

Fig. 3.2c: GDP growth arising from broadband expansion, all provinces

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Combined economic growth in all seven provinces is over 240-billion Rand for the study period, with highest growth again in KwaZulu-Natal, Eastern Cape, and North West. Note that the most rapid growth is in the period from about 2015 to 2019, while the broadband access buildout is greatest. Growth continues at a steady pace thereafter, however, as more businesses and individuals continue to adopt broadband services.

The remaining subsections provide more detailed results for each province from the study’s analysis and findings.

3.3 Eastern Cape a) USAF spending and Broadband penetration

The following table presents the model’s baseline data and initial calculations for USAF spending and Broadband penetration in the Eastern Cape. With Fund expenditure of some 29-billion Rand, Broadband penetration is expected to increase from 6.7% to 44.9% by 2025.

b) Employment

The projected increases in Broadband penetration in the Eastern Cape are anticipated to yield the following impacts on employment in the province:

. Approximately 132,000 new jobs would be created over 10 years. . Self-employment and small business jobs would increase by about 34,000 persons. . Unemployment would decline by nearly 9% (from 30.8% to 21.9%) (see Fig 3.3a) . Total provincial annual employment income would increase by about 10-billion Rand.

50.0% 35.0% 45.0% 40.0% 31.0% 35.0% 30.0% 27.0% 25.0% BB penetration 20.0% 23.0% Unemployment 15.0% 10.0% 19.0% 5.0% 0.0% 15.0%

Fig. 3.3a: Eastern Cape Broadband penetration and Unemployment

c) Household income growth

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Figure 3.3b illustrates the impact of the projected increase in Broadband penetration on average household incomes in the Eastern Cape. Over the study period, average annual household incomes in the province would increase from 60,000 Rand to over 67,000 Rand, or almost 12%.

50.0% 75,000 45.0% 40.0% 70,000 35.0% 30.0% 25.0% 65,000 BB penetration 20.0% HH incomes 15.0% 60,000 10.0% 5.0% 0.0% 55,000

Fig. 3.3b: Eastern Cape Broadband penetration vs. HH income growth

d) USAF Spending vs. Economic Growth

The net economic impact of the utilization of USAF resources to stimulate Broadband growth can be seen by comparing the total funds spent to the cumulative growth in provincial GDP. This is illustrated in Figure 3.3c. Over a 10-year period, in return for combined USAF expenditure of about 29-billion Rand, the economy of the Eastern Cape shows cumulative GDP growth of about 43-billion Rand. From another perspective, the Fund investment can be seen to produce 1.49 Rand of GDP growth for every 1.0 Rand of USAF spending.

50.0% 50,000 45.0% 40.0% 40,000 35.0% 30.0% 30,000 25.0% Cum GDP growth 20.0% 20,000 Cum USAF spending 15.0% BB penetration 10.0% 10,000 5.0% 0.0% 0

Fig. 3.3c: Eastern Cape USAF spending vs. GDP growth (R mil)

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3.4 Free State a) USAF spending and Broadband penetration

The following table presents the model’s baseline data and initial calculations for USAF spending and Broadband penetration in Free State. With Fund expenditure of some 7-billion Rand, Broadband penetration is expected to increase from 8.6% to 53.6% by 2025.

b) Employment

The projected increases in Broadband penetration in Free State are anticipated to yield the following impacts on employment in the province:

Approximately 67,000 new jobs would be created over 10 years. Self-employment and small business jobs would increase by about 16,000 persons. Unemployment would decline by about 5% (from 34.0% to 29.0%) (see Fig 3.4a) Total provincial annual employment income would increase by almost 5-billion Rand.

60.0% 34.0% 50.0%

40.0% 31.0% 30.0% BB penetration 20.0% Unemployment 28.0%

10.0%

0.0% 25.0%

Fig. 3.4a: Free State Broadband penetration and Unemployment

c) Household income growth

Figure 3.4b illustrates the impact of the projected increase in Broadband penetration on average household incomes in Free State. Over the study period, average annual household incomes in the province would increase from 72,800 Rand to over 81,400 Rand, or over 13%.

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60.0% 85,000

50.0%

40.0% 80,000

30.0% BB penetration 20.0% 75,000 HH incomes

10.0%

0.0% 70,000

Fig. 3.4b: Free State Broadband penetration vs. HH income growth

d) USAF Spending vs. Economic Growth

The net economic impact of the utilization of USAF resources to stimulate Broadband growth can be seen by comparing the total funds spent to the cumulative growth in provincial GDP. This is illustrated in Figure 3.4c. Over a 10-year period, in return for combined USAF expenditure of about 7-billion Rand, the economy of Free State shows cumulative GDP growth of about 17.5-billion Rand. From another perspective, the Fund investment can be seen to produce 2.51 Rand of GDP growth for every 1.0 Rand of USAF spending.

60.0% 50,000

50.0% 40,000

40.0% 30,000 30.0% Cum GDP growth 20,000 Cum USAF spending 20.0% BB penetration 10,000 10.0%

0.0% 0

Fig. 3.4c: Free State USAF spending vs. GDP growth (R mil)

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3.5 Limpopo a) USAF spending and Broadband penetration

The following table presents the model’s baseline data and initial calculations for USAF spending and Broadband penetration in Limpopo. With Fund expenditure of some 20-billion Rand, Broadband penetration is expected to increase from 4.8% to 34.7% by 2025.

b) Employment

The projected increases in Broadband penetration in Limpopo are anticipated to yield the following impacts on employment in the province:

Approximately 88,000 new jobs would be created over 10 years. Self-employment and small business jobs would increase by about 28,000 persons. Unemployment would decline by over 8% (from 17.8% to 9.6%) (see Fig 3.5a) Total provincial annual employment income would increase by over 2-billion Rand.

40.0%

35.0% 17.0% 30.0%

25.0% 13.0% 20.0% BB penetration 15.0% Unemployment 10.0% 9.0%

5.0%

0.0% 5.0%

Fig. 3.5a: Limpopo Broadband penetration and Unemployment

c) Household income growth

Figure 3.5b illustrates the impact of the projected increase in Broadband penetration on average household incomes in Limpopo. Over the study period, average annual household incomes in the province would increase from 46,500 Rand to over 48,800 Rand, or about 5%.

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40.0% 55,000

35.0%

30.0% 50,000 25.0%

20.0% BB penetration 15.0% 45,000 HH incomes 10.0%

5.0%

0.0% 40,000

Fig. 3.5b: Limpopo Broadband penetration vs. HH income growth

d) USAF Spending vs. Economic Growth

The net economic impact of the utilization of USAF resources to stimulate Broadband growth can be seen by comparing the total funds spent to the cumulative growth in provincial GDP. This is illustrated in Figure 3.5c. Over a 10-year period, in return for combined USAF expenditure of about 20-billion Rand, the economy of Limpopo shows cumulative GDP growth of about 31.6-billion Rand. Thus, the Fund investment can be seen to produce 1.58 Rand of GDP growth for every 1.0 Rand of USAF spending.

40.0% 50,000 35.0% 40,000 30.0%

25.0% 30,000 20.0% Cum GDP growth

15.0% 20,000 Cum USAF spending BB penetration 10.0% 10,000 5.0% 0.0% 0

Fig. 3.5c: Limpopo USAF spending vs. GDP growth (R mil)

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3.6 Mpumalanga a) USAF spending and Broadband penetration

The following table presents the model’s baseline data and initial calculations for USAF spending and Broadband penetration in Mpumalanga. With Fund expenditure of some 9.4-billion Rand, Broadband penetration is expected to increase from 7.0% to 49.3% by 2025.

b) Employment

The projected increases in Broadband penetration in Mpumalanga are anticipated to yield the following impacts on employment in the province:

Approximately 72,000 new jobs would be created over 10 years. Self-employment and small business jobs would increase by about 21,000 persons. Unemployment would decline by about 5.5% (from 26.6% to 21.1%) (see Fig 3.6a) Total provincial annual employment income would increase by over 4.7-billion Rand.

60.0% 28.0%

50.0% 26.0% 40.0%

30.0% 24.0% BB penetration 20.0% Unemployment 22.0% 10.0%

0.0% 20.0%

Fig. 3.6a: Mpumalanga Broadband penetration and Unemployment

c) Household income growth

Figure 3.6b illustrates the impact of the projected increase in Broadband penetration on average household incomes in Mpumalanga. Over the study period, average annual household incomes in the province would increase from 56,000 Rand to over 72,300 Rand, or over 9%.

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60.0% 75,000

50.0%

40.0% 70,000

30.0% BB penetration 20.0% 65,000 HH incomes

10.0%

0.0% 60,000

Fig. 3.6b: Mpumalanga Broadband penetration vs. HH income growth

d) USAF Spending vs. Economic Growth

The net economic impact of the utilization of USAF resources to stimulate Broadband growth can be seen by comparing the total funds spent to the cumulative growth in provincial GDP. This is illustrated in Figure 3.6c. Over a 10-year period, in return for combined USAF expenditure of about 20-billion Rand, the economy of Mpumalanga shows cumulative GDP growth of about 23.7-billion Rand. Thus, the Fund investment can be seen to produce 2.52 Rand of GDP growth for every 1.0 Rand of USAF spending.

60.0% 50,000

50.0% 40,000

40.0% 30,000 30.0% Cum GDP growth 20,000 Cum USAF spending 20.0% BB penetration 10,000 10.0%

0.0% 0

Fig. 3.6c: Mpumalanga USAF spending vs. GDP growth (R mil)

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3.7 KwaZulu-Natal a) USAF spending and Broadband penetration

The following table presents the model’s baseline data and initial calculations for USAF spending and Broadband penetration in KwaZulu-Natal. With Fund expenditure of some 31-billion Rand, Broadband penetration is expected to increase from 9.4% to 58.8% by 2025.

b) Employment

The projected increases in Broadband penetration in KwaZulu-Natal are anticipated to yield the following impacts on employment in the province:

Approximately 200,000 new jobs would be created over 10 years. Self-employment and small business jobs would increase by about 60,700 persons. Unemployment would decline by about 7.8% (from 20.9% to 13.1%) (see Fig 3.7a) Total provincial annual employment income would increase by over 16-billion Rand.

70.0% 22.0%

60.0% 20.0% 50.0%

40.0% 18.0% BB penetration 30.0% 16.0% Unemployment 20.0% 14.0% 10.0%

0.0% 12.0%

Fig. 3.7a: KwaZulu-Natal Broadband penetration and Unemployment

c) Household income growth

Figure 3.7b illustrates the impact of the projected increase in Broadband penetration on average household incomes in KwaZulu-Natal. Over the study period, average annual household incomes in the province would increase from 79,000 Rand to over 89,000 Rand, or almost 13%.

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70.0% 90,000

60.0% 85,000 50.0%

40.0% 80,000 30.0% BB penetration HH incomes 20.0% 75,000 10.0%

0.0% 70,000

Fig. 3.7b: KwaZulu-Natal Broadband penetration vs. HH income growth

d) USAF Spending vs. Economic Growth

The net economic impact of the utilization of USAF resources to stimulate Broadband growth can be seen by comparing the total funds spent to the cumulative growth in provincial GDP. This is illustrated in Figure 3.7c. Over a 10-year period, in return for combined USAF expenditure of about 31-billion Rand, the economy of KwaZulu-Natal shows cumulative GDP growth of about 70-billion Rand. Thus, the Fund investment can be seen to produce 2.26 Rand of GDP growth for every 1.0 Rand of USAF spending.

70.0% 70,000

60.0% 60,000

50.0% 50,000

40.0% 40,000 Cum GDP growth 30.0% 30,000 Cum USAF spending 20.0% 20,000 BB penetration

10.0% 10,000

0.0% 0

Fig. 3.7c: KwaZulu-Natal USAF spending vs. GDP growth (R mil)

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3.8 North West a) USAF spending and Broadband penetration

The following table presents the model’s baseline data and initial calculations for USAF spending and Broadband penetration in North West. With Fund expenditure of some 28-billion Rand, Broadband penetration is expected to increase from 7.1% to 52.1% by 2025.

b) Employment

The projected increases in Broadband penetration in North West province are anticipated to yield the following impacts on employment in the province:

Approximately 124,000 new jobs would be created over 10 years. Self-employment and small business jobs would increase by about 31,000 persons. Unemployment would decline by almost 11% (from 26.6% to 15.8%) (see Fig 3.8a) Total provincial annual employment income would increase by almost 10-billion Rand.

60.0% 28.0%

50.0% 26.0% 24.0% 40.0% 22.0% 30.0% 20.0% BB penetration 20.0% Unemployment 18.0%

10.0% 16.0%

0.0% 14.0%

Fig. 3.8a: North West Broadband penetration and Unemployment

c) Household income growth

Figure 3.8b illustrates the impact of the projected increase in Broadband penetration on average household incomes in North West province. Over the study period, average annual household incomes in the province would increase from 70,000 Rand to almost 81,000 Rand, or about 16%.

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60.0% 85,000

50.0% 80,000

40.0% 75,000 30.0% BB penetration 70,000 20.0% HH incomes

65,000 10.0%

0.0% 60,000

Fig. 3.8b: North West Broadband penetration vs. HH income growth

d) USAF Spending vs. Economic Growth

The net economic impact of the utilization of USAF resources to stimulate Broadband growth can be seen by comparing the total funds spent to the cumulative growth in provincial GDP. This is illustrated in Figure 3.8c. Over a 10-year period, in return for combined USAF expenditure of about 28-billion Rand, the economy of North West province shows cumulative GDP growth of about 42-billion Rand. Thus, the Fund investment can be seen to produce 1.51 Rand of GDP growth for every 1.0 Rand of USAF spending.

60.0% 60,000

50.0% 50,000

40.0% 40,000

30.0% 30,000 Cum GDP growth Cum USAF spending 20.0% 20,000 BB penetration 10.0% 10,000

0.0% 0

Fig. 3.8c: North West USAF spending vs. GDP growth (R mil)

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3.9 Northern Cape a) USAF spending and Broadband penetration

The following table presents the model’s baseline data and initial calculations for USAF spending and Broadband penetration in the Northern Cape. With Fund expenditure of some 9-billion Rand, Broadband penetration is expected to increase from 9.0% to 58.1% by 2025.

b) Employment

The projected increases in Broadband penetration in the Northern Cape are anticipated to yield the following impacts on employment in the province:

Approximately 40,000 new jobs would be created over 10 years. Self-employment and small business jobs would increase by about 8,500 persons. Unemployment would decline by about 10% (from 28% to 17.9%) (see Fig 3.9a) Total provincial annual employment income would increase by over 2.8-billion Rand.

70.0% 30.0%

60.0% 28.0%

50.0% 26.0%

40.0% 24.0%

30.0% 22.0% BB penetration Unemployment 20.0% 20.0%

10.0% 18.0%

0.0% 16.0%

Fig. 3.9a: Northern Cape Broadband penetration and Unemployment

c) Household income growth

Figure 3.9b illustrates the impact of the projected increase in Broadband penetration on average household incomes in the Northern Cape. Over the study period, average annual household incomes in the province would increase from 78,000 Rand to over 88,000 Rand, or almost 14%.

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70.0% 90,000

60.0% 85,000 50.0%

40.0% 80,000 30.0% BB penetration HH incomes 20.0% 75,000 10.0%

0.0% 70,000

Fig. 3.9b: Northern Cape Broadband penetration vs. HH income growth

d) USAF Spending vs. Economic Growth

The net economic impact of the utilization of USAF resources to stimulate Broadband growth can be seen by comparing the total funds spent to the cumulative growth in provincial GDP. This is illustrated in Figure 3.9c. Over a 10-year period, in return for combined USAF expenditure of about 9-billion Rand, the economy of the Northern Cape shows cumulative GDP growth of about 14-billion Rand. Thus, the Fund investment can be seen to produce 1.56 Rand of GDP growth for every 1.0 Rand of USAF spending.

70.0% 30,000

60.0%

50.0% 20,000 40.0% Cum GDP growth 30.0% Cum USAF spending 10,000 20.0% BB penetration

10.0%

0.0% 0

Fig. 3.9c: Northern Cape USAF spending vs. GDP growth (R mil)

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