Profile: Ugu District 1

UGU DISTRICT MUNICIPALITY

Masisukume Sakhe

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PROFILE: UGU DISTRICT 1

Contents

1. Executive Summary ...... 3 2. Introduction: Brief Overview ...... 4 2.1 Location ...... 4 3 Social Development Profile ...... 7 3.1 Key Social Demographics ...... 7 3.1.1 Population ...... 7 3.1.2 Race Gender and Age ...... 8 3.1.3 Households ...... 9 3.2 Health Profile ...... 10 3.3 COVID 19 ...... 11 3.4 Poverty Dimensions ...... 12 3.4.1 Distribution ...... 12 3.4.2 Inequality ...... 13 3.4.3 Employment/ Unemployment ...... 14 3.4.4 Crime ...... 16 3.5 Education and Skills Profile...... 17 4. Drivers of the Economy ...... 18 4.1 Structure of the Economy ...... 18 4.2 Primary Sector ...... 19 4.3 Secondary Sector ...... 19 4.4 Tertiary Sector ...... 20 4.5 Informal Sector ...... 21 5. Service Delivery...... 22 5.1 Water and Sanitation ...... 23 5.2 Human Settlements ...... 24 5.3 Sanitation Management ...... 24 5.4 Roads and Transport...... 25 5.5 Electricity ...... 25 6 Governance and Management ...... 26 6.1 Municipal Performance ...... 26 6.2 Municipal Capacity ...... 27 6.3 Traditional Affairs Governance ...... 28 7 Projects to Diversify and Grow People and the Economy ...... 30 7 Key Recommendations ...... 33

2 PROFILE: UGU DISTRICT

PROFILE: UGU DISTRICT 3

1. Executive Summary

Ugu District Municipality is one of the ten districts (Category C municipalities) of the KwaZulu-Natal Province. It is located in the far south of the province, and measures 4 908 km² in extent. The District has a coastline of 112 kilometres, which forms its eastern border. The District is further bordered on the north by the eThekwini metro and in the west by Umgungundlovu and Harry Gwala District municipalities. On the southern side, the District shares its borders with the Eastern Cape Province. The Map below (Map 1) shows the location of the Ugu District Municipality in relation to other Districts in the Kwa-Zulu Natal province.

The total population of the Ugu District municipal area is 754 954 with a growth rate of 1.1% in 2019, up from 0.6% in 2009. The represents an average annual growth rate of 0.86%. The District has a relatively young population, with children and young people up to the age of 14 years making up 38% of the total population. The working age population (15 to 64) makes up 58% of the total population whilst the elderly (aged 65 and above) makes the remainder 4%. The District has a population density of 157,2 persons per square kilometer. Africans are the dominant population group in the District, constituting 90% of the total population. Indians, Coloureds and Whites make up the remaining 10% of the population in Ugu District. The sex ratio of the District is 92 males per 100 females. The Ugu District has a total number of 175 146 households with an average size of four (4) persons per household.

As at 12 June 2020, the total number of COVID-19 infections in the province of Kwa- Zulu Natal stood at 3 573, with a total of 64 deaths (2.0%) since the first case was recorded in South Africa on 05 March 2020. The Ugu District had the 6th highest number of cases in the province with a total of 66 cases (1.8%) and 4 deaths.

There has been a decline in the poverty levels in the Ugu District area, moving from 32% in 2001 to 12% in 2016. This equates to a decrease of 20% over 15 years. However, the poverty intensity has remained at an average of 42% over the same period. The predominantly rural municipalities are plagued with the highest poverty rates as illustrated in the table above. The Umzumbe municipality has the highest poverty levels with Ray Nkonyeni municipality enduring the lowest at 19% and 11% respectively. Just like any other municipality, Ugu faces high rates of unemployment, poverty and inequality.

Community services sector is the largest economic sector within Ugu District, accounting for R 8.07 billion or 23.4% of the total GVA in the district municipality's economy. The sector that contributes the second most to the GVA of the Ugu District Municipality is the trade sector at 19.6%, followed by the finance and manufacturing sectors with 14.8%, each. The sector that contributes the least to the economy of Ugu

4 PROFILE: UGU DISTRICT

District Municipality is the mining sector with a contribution of R 170 million or 0.49% of the total GVA. Almost three-quarters (71.5%) of the households have access to piped water.

2. Introduction: Brief Overview

2.1 Location

Ugu District Municipality is one of the ten (10) districts (Category C municipalities) of the KwaZulu-Natal Province. It is located in the far south of the province, and measures 4 908 km² in extent. The District has a coastline of 112 kilometres, which forms its eastern border. The District is further bordered on the north by the eThekwini metro and in the west by Umgungundlovu and Harry Gwala District municipalities. On the southern side, the District shares its borders with the Eastern Cape Province. The Map below shows the location of the Ugu District Municipality in relation to other Districts in the Kwa-Zulu Natal province.

PROFILE: UGU DISTRICT 5

2.2 Historical perspective

Ugu District municipality consists of four local municipalities, namely, Ray Nkonyeni LM, Umuziwabantu LM, Umzumbe LM and Umdoni LM . The district has a total of 85 municipal wards spread across four local municipalities. Relative to the rest of the Districts in the province, the Ugu District’s location on the southern part of the province provides it with several strategic opportunities and features such as the following:

▪ It is easily accessible by the N2 and R61 routes, which connect the area with a number of towns within the KwaZulu-Natal province as well as the Eastern Cape province and beyond. ▪ It is situated within a highly admired coastal strip, affectionately referred to as the South Coast by the tourists, residents and general travellers. ▪ It shares borders with eThekwini Municipality, which is the economic powerhouse of KwaZulu-Natal and a very notable economic nodal point within the country; and ▪ It accommodates the first coastal commercial hubs from both the Eastern Cape to KwaZulu-Natal Provinces.

The Ray Nkonyeni Municipality is the most concentrated economic hub within the Ugu District Municipality. The main features of the economy are tourism and agriculture. The main cities and towns in the District include Harding, Hibberdene, Margate, Pennington, Port Edward, Port Shepstone, Scottburgh/Umzinto North, Ramsgate, Marburg and Southbroom, most of which are in the Ray Nkonyeni LM.

2.3 Spatial Status

Ugu District is a rural District Municipality, the Department of Rural Development and Land Reform’s Comprehensive Rural Development Programme (CRDP) can be instrumental in the district. The CRDP aims to develop rural South Africa, particularly creating vibrant, sustainable, and equitable rural communities. The CRDP also integrates proactive participatory community-based planning rather than an interventionist approach to rural development. In classifying the settlement patterns in Ugu, the District’s Growth and Development Plan embraces a vision that “By 2030, the Ugu District will be a leading tourism destination and agricultural and manufacturing hub where jobs are created and everyone benefits equally from socio- economic opportunities and services.”

Map below is a depiction of the Ugu District Municipality and shows the location of the different local municipalities constituting the District. The map further shows the location of the different towns and significant business centers across the different municipalities. The high concentration of these towns in the Ray Nkonyeni LM is very clearly demonstrated on the Map.

6 PROFILE: UGU DISTRICT

Map 1: Ugu District Map Source: www.municipalities.co.za

The Provincial Human Settlements Master Spatial Plan for KwaZulu-Natal provided estimates of the housing backlogs for Ugu District, based on a comparison of figures contained in the District IDP and figures provided by Stats SA. In order to eradicate the housing backlog the Provincial Human Settlements Master Spatial Plan for KwaZulu-Natal provides the following envisioned Spatial Interventions and Targets for the Ugu District.

Taking into consideration the recommendations made in the Regional Spatial Development Plan, Ugu should essentially comprise of a series of urban growth boundaries to manage growth over the projected time. In other words, there will be an Urban Growth Boundary for the Short-Term; an extended Urban Growth Boundary for the Medium – Term; and a Long-Term Urban Growth Boundary. This could mitigate against ‘urban sprawl’ and can facilitate for planned growth and development.

2.4 Land ownership

The towns and business centres in the Ugu District co-exist alongside a total of forty (40) traditional councils. The Ugu District also has an established House of Traditional Leadership which is constituted by the 40 Traditional Authorities spread across the four local municipalities.

Data on Traditional Councils/Ubukhosi Total number of TC Number of Traditional leaders Number of Landless Traditional Leaders KwaZulu- Natal 307 289 28 Ugu 40 40 3

PROFILE: UGU DISTRICT 7

3 Social Development Profile

3.1 Key Social Demographics

The total population of the Ugu District municipal area is 754 954 with a growth rate of 1.1% in 2019, up from 0.6% in 2009. The District has a relatively young population, with children and young people up to the age of 14 years making up 38% of the total population. The working age population (15 to 64) makes up 58% of the total population whilst the elderly (aged 65 and above) makes the remainder 4%. The District has a population density of 157,2 persons per square kilometer.

Africans are the dominant population group in the District, constituting 90% of the total population. Indians, Coloureds and Whites make up the remaining 10% of the population in Ugu District. The sex ratio of the District is 92 males per 100 females.

The Ugu District has a total number of 175 146 households with an average size of four (4) persons per household. Almost three-quarters (71.5%) of the households have access to piped water; 85.2% have access to electricity and 71% have access to sanitation. Only 14.7% of the households are indigent households. The table below provides a snapshot of the Ugu District’s Demographic profile.

Population Profile Socio-Economic Profile Total Population 754 954 Total Number of Households 175 146

Young (0-14) 286 823 Average Household Size 4 (Persons/HH) Area in KM2 4 908 Access to Piped Water 125 305 (71.5%) Population Density 153.49 Access to Electricity 149 224 (85.2%)

Population Growth Rate 1.1% Access to Sanitation 124 354 (71.0%) Sex Ration (Male/100 Females) 92 Indigent Households 25 750 (14.7%)

3.1.1 Population

8 PROFILE: UGU DISTRICT

With 790 000 people, the Ugu District Municipality housed 1.3% of South Africa's total population in 2019. Between 2009 and 2019 the population growth averaged 0.86% per annum which is about half than the growth rate of South Africa as a whole (1.61%). Compared to KwaZulu-Natal's average annual growth rate (1.15%), the growth rate in Ugu's population at 0.86% was slightly lower than that of the province.

Ugu as % of Ugu as % of Ugu KwaZulu-Natal National Total province national 2009 725,000 10,200,000 50,300,000 7.1% 1.44% 2010 730,000 10,300,000 51,100,000 7.1% 1.43% 2011 735,000 10,500,000 52,000,000 7.0% 1.41% 2012 741,000 10,600,000 52,900,000 7.0% 1.40% 2013 746,000 10,700,000 53,700,000 7.0% 1.39% 2014 752,000 10,800,000 54,600,000 7.0% 1.38% 2015 759,000 10,900,000 55,500,000 6.9% 1.37% 2016 766,000 11,100,000 56,400,000 6.9% 1.36% 2017 774,000 11,200,000 57,200,000 6.9% 1.35% 2018 782,000 11,300,000 58,100,000 6.9% 1.34% 2019 790,000 11,500,000 59,000,000 6.9% 1.34%

Average Annual growth 2009-2019 0.86% 1.15% 1.61% Source: IHS Markit Regional eXplorer version 1946

3.1.2 Race Gender and Age

The total population of a region is the total number of people within that region measured in the middle of the year. Total population can be categorised according to the population group, as well as the sub-categories of age and gender. The population groups include African, White, Coloured and Asian, where the Asian group includes all people originating from Asia, India and China.

In 2019, the Ugu District Municipality's population consisted of 89.85% African (710 000), 5.80% White (45 800), 0.94% Coloured (7 460) and 3.40% Asian (26 800) people. The largest share of population is within the babies and kids (0-14 years) age category with a total number of 247 000 or 31.3% of the total population. The age category with the second largest number of people is the young working age (25-44 years) age category with a total share of 28.7%, followed by the teenagers and youth (15-24 years) age category with 132 000 people. The age category with the least number of people is the retired / old age (65 years and older) age category with only 64 100 people, as reflected in the population pyramids below.

PROFILE: UGU DISTRICT 9

TABLE 1. POPULATION BY POPULATION GROUP, GENDER AND AGE - UGU DISTRICT MUNICIPALITY, 2019 [NUMBER].

African White Coloured Asian

Female Male Female Male Female Male Female Male 00-04 41,100 42,600 747 798 247 288 652 774 05-09 38,900 40,900 786 851 302 327 765 841 10-14 35,500 37,100 740 838 328 273 848 827 15-19 32,000 33,200 781 787 355 322 753 789 20-24 28,700 30,300 776 890 250 293 798 694 25-29 31,400 32,200 892 860 275 312 802 645 30-34 30,300 28,700 1,100 1,060 283 286 859 725 35-39 25,100 23,500 1,080 1,240 274 228 1,030 1,010 40-44 19,600 17,100 1,200 1,180 246 199 1,260 1,300 45-49 18,200 15,300 1,420 1,460 257 254 1,320 1,300 50-54 15,000 10,600 1,480 1,390 214 167 1,050 924 55-59 11,900 8,190 1,720 1,420 199 167 840 950 60-64 11,600 7,450 2,080 1,720 181 191 889 689 65-69 10,800 5,500 2,510 2,090 181 100 754 545 70-74 7,740 4,760 2,530 2,240 125 105 641 484 75+ 10,700 3,870 3,970 3,160 137 91 667 422 Total 368,000 341,000 23,800 22,000 3,850 3,600 13,900 12,900 Source: IHS Markit Regional eXplorer version 1946

3.1.3 Households

If the number of households is growing at a faster rate than that of the population it means that the average household size is decreasing, and vice versa. In 2019, the Ugu District Municipality comprised of 199 000 households. This equates to an average annual growth rate of 1.33% in the number of households from 2009 to 2019. With an average annual growth rate of 0.86% in the total population, the average household size in the Ugu District Municipality is by implication decreasing. This is confirmed by the data where the average household size in 2009 decreased from approximately 4.2 individuals per household to 4 persons per household in 2019.

Relative to the province, the Ugu District Municipality had a lower average annual growth rate of 1.33% from 2009 to 2019. In contrast, the South Africa had a total of 17 million households, with a growth rate of 2.09%, thus growing at a higher rate than the Ugu.

The composition of the households by population group consists of 84.9% which is ascribed to the African population group with the largest number of households by population group. The White population group had a total composition of 10.0% (ranking second). The Asian population group had a total composition of 4.1% of the total households. The smallest population group by households is the Coloured population group with only 1.0% in 2019.

10 PROFILE: UGU DISTRICT

TABLE 2. NUMBER OF HOUSEHOLDS - UGU, KWAZULU-NATAL AND NATIONAL TOTAL, 2009-2019 [NUMBER PERCENTAGE]

Ugu as % of Ugu as % of Ugu KwaZulu-Natal National Total province national 2009 174,000 2,510,000 13,900,000 6.9% 1.26% 2010 175,000 2,530,000 14,100,000 6.9% 1.25% 2011 178,000 2,570,000 14,400,000 6.9% 1.24% 2012 181,000 2,620,000 14,700,000 6.9% 1.23% 2013 183,000 2,660,000 15,000,000 6.9% 1.22% 2014 185,000 2,690,000 15,300,000 6.9% 1.21% 2015 188,000 2,740,000 15,700,000 6.9% 1.20% 2016 191,000 2,780,000 16,100,000 6.9% 1.19% 2017 194,000 2,820,000 16,400,000 6.9% 1.18% 2018 195,000 2,840,000 16,700,000 6.9% 1.17% 2019 199,000 2,900,000 17,000,000 6.9% 1.17%

Average Annual growth 2009-2019 1.33% 1.44% 2.09% Source: IHS Markit Regional eXplorer version 1946

3.1.3.1 Child Headed

The district has a relatively young population with the children and youth making up 38.7% of the total population. 1721 households are headed by children under the age of 18, about 10% of the figure in KwaZulu Natal and less than 10% of the figure in South Africa

3.1.3.2 Women Headed

27% (467) of the Child headed households have women as their head, this figure is about 3 quarters of the rate in KwaZulu Natal.

3.2 Health Profile

The district has 79 health facilities, which range from a Mobile Clinics to a regional hospital. These health facilities consist of 2 Community Health Centres, 3 District Hospitals, 53 Fixed Clinics, 17 mobile clinics, 3 Private and 1 Regional hospitals. The greatest number of these facilities are concentrated in Ray Nkonyeni Local Municipality, with 4 of the facilities in the Ray Nkonyeni LM functioning on a 24-hour clinics, namely Gamalakhe, Izingolweni, Gcilima and Ntabeni.

According to IHS Markit Regional eXplorer, in 2019, 146 000 people in the Ugu District Municipality were infected with HIV. This reflects an increase at an average annual rate of 1.58% since 2009, and in 2019 represented 18.46% of the district municipality's total population. In comparison with the provincial rate, the Ugu District had a lesser infection rate when compared to the KwaZulu-Natal Province’s average annual growth rate of 1.72% from 2009 to 2019 in the number of people infected with HIV. The PROFILE: UGU DISTRICT 11

country-wide growth rate increased from 2009 to 2019 with an average annual growth rate of 2.32%.

3.3 COVID 19

Distribution of cases and deaths by district, KwaZulu-Natal, 5 Mar- 12 Jun 2020

District New cases, n (%) Total cases, n (%) Deaths Case Fatality rate (%) Ugu 5 (5) 66 (1.8) 4 (6.0) 6.1

Incidence risk by district, KwaZulu-Natal, 5 Mar- 12 Jun 2020 (n=3 573) Total cases Population Active Cases District No. of cases Incidence risk/ Mid-2019*(n) No. of cases Incidence risk/ 100 00 100 000 Ugu 66 8.4 787 096 38 4.8

Cumulative community and facility screening, KwaZulu-Natal, 8 Apr-12 Jun 202 District Community screening Facility screening Total Total tested screened Date 8 April – 11 June 2020 11 April – 11 June 2020 8 April – 11 June 2020 Ugu 86 520, 831 267, 423 832 353 943 1,663

As reflected in the figure below, there is a total of 6 quarantine facilities and 5 of the facilities are state-owned. These facilities have a total capacity of 39 beds, 10 of which are in the already activated facilities and the remaining 29 in the pending facilities, inclusive of the 15 beds in the only private facility.

Bed availability status by district

Summary of COVID-19 beds by bed type, KwaZulu-Natal, 2020 Isolation Quarantine High Care ICU District Available WIP On Available WIP On Available Planned Available Planned Total Demand beds Demand Ugu 8 55 0 32 11 378 0 0 04 0 508

Summary of contacts by district, KwaZulu-Natal, 5 March- 12 Jun 2020 District Identified Monitored Not yet Asymptomatic Symptomatic Specimen Tested Completed 14 days’ reached taken positive Ugu 283 283 0 * 114 167 12 120

The KZN province currently has public mortuaries in all the Districts, including the Ugu District. Out of the total 30 public mortuaries, 3 are in the Ugu District in the towns of Port Shepstone, Harding, and Park Rynie. These mortuaries are said to be at various levels of capacity and operation; and therefore, require further formal confirmation from the Department of Health (DoH) on their readiness for use for the COVID-19 pandemic mortal remains.

12 PROFILE: UGU DISTRICT

3.4 Poverty Dimensions

3.4.1 Distribution

Just like any other municipality, Ugu faces high rates of unemployment, poverty and inequality. The spatial profile of the district is evidence of this as it reflects a dual space economy, with a coastal zone that is largely urbanised that is performing well and an impoverished rural hinterland under the ownership of the Ingonyama Trust Board. Some of the subsistence farms in the area are struggling as well. Poverty levels within PROFILE: UGU DISTRICT 13

Ugu District Municipality are high due to various reasons. Amongst other reasons, unemployment is at a high level due to the bulk of the population lacking skills which would allow them to be employed. Although there are people employed in the informal sector, they earn very low wages and have to support many members in the family. An important indicator of poverty is the number of households with an income below the Minimum Living Level (MML). Other households depend on grants and can be classified as indigents who are most probably falling on the poverty datum line because it is not enough to sustain the levels of living.

3.4.2 Inequality

The Gini coefficient is a summary statistic of income inequality. It varies from 0 to 1.

If the Gini coefficient is equal to zero, income is distributed in a perfectly equal manner, in other words there is no variance between the high and low-income earners within the population. In contrast, if the Gini coefficient equals 1, income is completely inequitable, i.e. one individual in the population is earning all the income and the rest has no income. Generally, this coefficient lies in the range between 0.25 and 0.70.

In 2019, the Gini coefficient in Ugu District Municipality was at 0.624, which reflects an increase in the number over the ten-year period from 2009 to 2019. The KwaZulu- Natal Province and South Africa, both had a more unequal spread of income amongst their residents (at 0.627 and 0.63 respectively) when compared to Ugu District Municipality.

TABLE 3. GINI COEFFICIENT BY POPULATION GROUP - UGU, 2009, 2019 [NUMBER]

African White Coloured Asian 2009 0.53 0.42 0.54 0.46 2019 0.55 0.45 0.55 0.50

Average Annual growth 2009-2019 0.47% 0.73% 0.22% 0.77% Source: IHS Markit Regional eXplorer version 1946

When segmenting the Ugu District Municipality into population groups, the Gini coefficient for the Asian population group increased the most amongst the population groups with an average annual growth rate of 0.77%. The Gini coefficient for the Coloured population group increased the least with an average annual growth rate of 0.22%.

14 PROFILE: UGU DISTRICT

CHART 1. GINI COEFFICIENT - LOCAL MUNICIPALITIES AND THE REST OF UGU DISTRICT MUNICIPALITY, 2019 [NUMBER]

Gini coefficient Ugu District Municipality, 2019 0.7

0.6

0.5

0.4

0.3

0.2

0.1

0.0

Source: IHS Markit Regional eXplorer version 1946

In terms of the Gini coefficient for each of the regions within the Ugu District Municipality, Hibiscus Coast Local Municipality has the highest Gini coefficient, with an index value of 0.627. The lowest Gini coefficient can be observed in the Ezingoleni Local Municipality with an index value of 0.501.

3.4.3 Employment/ Unemployment

The unemployed includes all persons between 15 and 65 who are currently not working, but who are actively looking for work. It therefore excludes people who are not actively seeking work (referred to as discouraged work seekers).

In 2019, Ugu employed 158 000 people which is 5.89% of the total employment in KwaZulu-Natal Province (2.69 million), 0.97% of total employment in South Africa (16.4 million). Employment within Ugu increased annually at an average rate of 1.10% from 2009 to 2019.

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TABLE 4. TOTAL EMPLOYMENT PER BROAD ECONOMIC SECTOR - UGU AND THE REST OF KWAZULU-NATAL, 2019 [NUMBERS]

Agricultur Minin Manufacturin Electricit Constructio Transpor Financ Communit Household Trade Total e g g y n t e y services s Ugu 11,900 1,550 17,500 551 12,500 35,900 9,100 17,200 37,300 15,200 159,000 265,00 193,00 1,220,00 eThekwini 27,100 1,370 171,000 3,900 90,600 89,700 259,000 114,000 0 0 0 uMgungundlov 24,400 683 37,200 1,340 22,800 61,100 16,600 40,800 82,400 30,400 318,000 u Uthukela 12,200 568 16,000 737 12,600 32,200 7,060 16,800 38,600 8,840 146,000 Umzinyathi 5,110 417 4,840 223 6,230 13,700 3,100 10,700 19,000 5,520 68,900 Amajuba 4,350 204 15,800 309 7,890 28,700 8,360 16,700 24,300 8,250 115,000 Zululand 7,600 829 10,000 500 10,400 26,900 7,490 22,100 35,500 9,520 131,000 Umkhanyakude 4,720 1,010 3,390 305 8,600 17,300 3,950 8,230 29,800 6,310 83,600 Uthungulu 18,100 3,650 26,300 755 20,900 43,400 15,800 29,200 51,400 15,200 225,000 iLembe 11,800 492 25,600 447 15,600 26,100 6,340 15,100 22,500 10,500 134,000 Sisonke 10,800 111 6,630 209 11,300 19,200 4,670 8,530 27,200 8,760 97,400 Total 569,69 378,65 2,692,41 138,084 10,888 334,714 9,278 219,470 172,235 627,392 232,003 KwaZulu-Nat 3 8 4 al Source: IHS Markit Regional eXplorer version 1946

Ugu District Municipality employs a total number of 10 800 people within its district municipality.

In Ugu District Municipality the economic sectors that recorded the largest number of employments in 2019 were the community services sector with a total of 37 300 employed people or 23.5% of total employment in the district municipality. The trade sector with a total of 35 900 (22.6%) employs the second highest number of people relative to the rest of the sectors. The electricity sector with 551 (0.3%) is the sector that employs the least number of people in Ugu District Municipality, followed by the mining sector with 1 550 (1.0%) people employed.

In 2019, there were a total number of 68 800 people unemployed in Ugu, which is an increase of 22 400 from 46 400 in 2009. The total number of unemployed people within Ugu constitutes 7.64% of the total number of unemployed people in KwaZulu-Natal Province. The Ugu District Municipality experienced an average annual increase of 4.02% in the number of unemployed people, which is worse than that of the KwaZulu- Natal Province which had an average annual increase in unemployment of 2.59%. TABLE 5. UNEMPLOYMENT RATE (OFFICIAL DEFINITION) - UGU, KWAZULU-NATAL AND NATIONAL TOTAL, 2009-2019 [PERCENTAGE]

Ugu KwaZulu-Natal National Total 2009 24.6% 22.0% 24.3% 2010 23.7% 20.9% 24.9% 2011 23.8% 20.7% 25.1% 2012 24.8% 21.1% 25.1% 2013 26.0% 21.6% 25.2% 2014 26.2% 21.8% 25.2% 2015 25.5% 22.0% 25.5% 2016 26.7% 23.0% 26.4% 2017 28.7% 23.8% 27.2% 2018 29.3% 24.0% 27.4% 2019 30.4% 24.9% 28.2% Source: IHS Markit Regional eXplorer version 1946

16 PROFILE: UGU DISTRICT

In 2019, the unemployment rate in Ugu District Municipality (based on the official definition of unemployment) was 30.39%, which is an increase of 5.82 percentage points. The unemployment rate in Ugu District Municipality is higher than that of KwaZulu-Natal. The unemployment rate for South Africa was 28.21% in 2019, which is a increase of -3.91 percentage points from 24.31% in 2009.

3.4.4 Crime

The state of crime in South Africa has been the topic of many media articles and papers in the past years, and although many would acknowledge that the country has a crime problem, very little research has been done on the relative level of crime. The media often tend to focus on more negative or sensational information, while the progress made in combating crime is neglected.

For the period 2008/2009 to 2018/2019 overall crime has decrease at an average annual rate of 2.91% within the Ugu District Municipality. Violent crime decreased by 3.34% since 2008/2009, while property crimes decreased by 0.87% between the 2008/2009 and 2018/2019 financial years.

TABLE 6. OVERALL CRIME INDEX - UGU DISTRICT MUNICIPALITY AND THE REST OF KWAZULU-NATAL, 2008/2009- 2018/2019 [INDEX VALUE]

2008/2 2009/2 2010/2 2011/2 2012/2 2013/2 2014/2 2015/2 2016/2 2017/2 2018/2

009 010 011 012 013 014 015 016 017 018 019 Ugu 108.88 104.84 100.79 95.08 93.89 91.08 90.78 85.75 85.14 83.99 81.01 eThekwini 149.62 142.05 130.43 123.81 122.32 113.18 107.14 103.63 100.90 99.00 100.96 uMgungun 89.33 97.64 99.66 93.75 91.90 87.33 86.54 86.60 84.36 84.61 85.90 dlovu Uthukela 82.60 92.95 86.07 80.77 81.69 76.56 76.80 74.54 73.02 70.06 76.04 Umzinyath 61.11 66.79 62.27 60.27 59.79 59.75 54.92 55.76 50.46 51.46 45.46 i Amajuba 71.06 80.31 77.40 82.04 83.63 89.69 98.86 100.40 95.05 89.89 86.74 Zululand 60.69 64.21 61.89 59.45 61.85 60.90 58.86 59.22 53.41 54.52 55.92 Umkhanya 62.60 57.98 58.41 53.23 50.76 47.31 47.50 47.41 45.14 45.71 46.21 kude Uthungulu 110.71 110.03 102.52 97.08 100.56 96.86 87.53 88.98 84.26 86.78 87.11 iLembe 95.82 92.76 85.76 80.30 82.36 82.52 77.10 73.49 73.38 72.40 73.00 Sisonke 61.08 63.96 62.43 61.23 61.15 59.52 57.31 53.69 49.42 49.91 46.22 Source: IHS Markit Regional eXplorer version 1946 In 2018/2019, the eThekwini Metropolitan Municipality has the highest overall crime rate of the sub-regions within the overall KwaZulu-Natal Province with an index value of 101. Uthungulu District Municipality has the second highest overall crime index at PROFILE: UGU DISTRICT 17

87.1, with Amajuba District Municipality having the third highest overall crime index of 86.7. Umkhanyakude District Municipality has the second lowest overall crime index of 46.2 and the Umzinyathi District Municipality has the lowest overall crime rate of 45.5. The region that decreased the most in overall crime since 2008/2009 was eThekwini Metropolitan Municipality with an average annual decrease of 3.9% followed by Umkhanyakude District Municipality with an average annual decrease of 3.0%.

3.5 Education and Skills Profile

Educating is important to the economic growth in a country and the development of its industries, providing a trained workforce and skilled professionals required. The education measure represents the highest level of education of an individual, using the 15 years and older age category. (According to the United Nations definition of education, one is an adult when 15 years or older. IHS uses this cut-off point to allow for cross-country comparisons. Furthermore, the age of 15 is also the legal age at which children may leave school in South Africa).

CHART 2. HIGHEST LEVEL OF EDUCATION: AGE 15+ - UGU DISTRICT MUNICIPALITY, 2009-2019 [PERCENTAGE]

Highest level of education: age 15+ Ugu, 2009-2019 100% Matric & 90% Postgrad degree Matric & 80% Bachelors degree 70% Matric & certificate / 60% diploma Matric only 50%

40% Certificate / diploma 30% without matric Grade 10-11 20%

10% Grade 7-9

0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: IHS Markit Regional eXplorer version 1946

Within Ugu District Municipality, the number of people without any schooling decreased from 2009 to 2019 with an average annual rate of -3.73%, while the number of people within the 'matric only' category, increased from 83,800 to 126,000. The number of people with 'matric and a certificate/diploma' increased with an average

18 PROFILE: UGU DISTRICT annual rate of 2.75%, with the number of people with a 'matric and a Bachelor's' degree increasing with an average annual rate of 6.33%. Overall improvement in the level of education is visible with an increase in the number of people with 'matric' or higher education.

4. Drivers of the Economy

4.1 Structure of the Economy

The economic state of Ugu District Municipality is put in perspective by comparing it on a spatial level with its neighbouring district municipalities, KwaZulu-Natal Province and South Africa. The section will also allude to the economic composition and contribution of the regions within Ugu District Municipality. The Ugu District Municipality does not function in isolation from KwaZulu-Natal, South Africa and the world and now, more than ever, it is crucial to have reliable information on its economy for effective planning. Information is needed that will empower the municipality to plan and implement policies that will encourage the social development and economic growth of the people and industries in the municipality, respectively.

The Gross Domestic Product (GDP), an important indicator of economic performance, is used to compare economies and economic states. GDP-R can be measured using either current or constant prices, where the current prices measures the economy in actual Rand, and constant prices measures the economy by removing the effect of inflation, and therefore captures the real growth in volumes, as if prices were fixed in a given base year.

TABLE 7. GROSS DOMESTIC PRODUCT (GDP) - UGU, KWAZULU-NATAL AND NATIONAL TOTAL, 2009-2019 [R BILLIONS, CURRENT PRICES]

Ugu as % of Ugu as % of Ugu KwaZulu-Natal National Total province national 2009 20.1 408.7 2,507.7 4.9% 0.80% 2010 21.2 433.8 2,748.0 4.9% 0.77% 2011 23.3 480.1 3,023.7 4.8% 0.77% 2012 25.1 520.4 3,253.9 4.8% 0.77% 2013 27.1 563.9 3,540.0 4.8% 0.76% 2014 29.1 609.7 3,805.3 4.8% 0.76% 2015 31.0 650.5 4,049.9 4.8% 0.77% 2016 33.3 697.0 4,359.1 4.8% 0.76% 2017 35.7 746.4 4,653.6 4.8% 0.77% 2018 37.0 778.8 4,873.9 4.8% 0.76% 2019 38.6 804.9 5,077.6 4.8% 0.76% Source: IHS Markit Regional eXplorer version 1946

With a GDP of R 38.6 billion in 2019 (up from R 20.1 billion in 2009), the Ugu District Municipality contributed 4.80% to the KwaZulu-Natal Province GDP of R 805 billion in 2019 increasing in the share of the KwaZulu-Natal from 4.92% in 2009. The Ugu PROFILE: UGU DISTRICT 19

District Municipality contributes 0.76% to the GDP of South Africa which had a total GDP of R 5.08 trillion in 2019 (as measured in nominal or current prices).It's contribution to the national economy stayed similar in importance from 2009 when it contributed 0.80% to South Africa, but it is lower than the peak of 0.80% in 2009.

4.2 Primary Sector

The primary sector consists of two broad economic sectors namely the mining and the agricultural sector. The following chart represents the average growth rate in the GVA for both of these sectors in Ugu District Municipality from 2009 to 2019.

CHART 3. GROSS VALUE ADDED (GVA) BY PRIMARY SECTOR - UGU, 2009-2019 [ANNUAL PERCENTAGE CHANGE]

Gross value added (GVA) by primary sector Ugu, 2009-2019 40%

30%

20%

10%

0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -10%

-20%

Agriculture Mining

Source: IHS Markit Regional eXplorer version 1946

Between 2009 and 2019, the agriculture sector experienced the highest growth in 2017 with an average growth rate of 32.3%. The mining sector reached its highest point of growth of 16.7% in 2016. The agricultural sector experienced the lowest growth for the period during 2016 at -11.6%, while the mining sector reaching its lowest point of growth in 2009 at -16.0%. Both the agriculture and mining sectors are generally characterised by volatility in growth over the period.

4.3 Secondary Sector The secondary sector consists of three broad economic sectors namely the manufacturing, electricity and the construction sector. The following chart represents 19

20 PROFILE: UGU DISTRICT the average growth rates in the GVA for these sectors in Ugu District Municipality from 2009 to 2019. CHART 4. GROSS VALUE ADDED (GVA) BY SECONDARY SECTOR - UGU, 2009-2019 [ANNUAL PERCENTAGE CHANGE]

Gross value added (GVA) by secondary sector Ugu, 2009-2019 10%

0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

-5%

-10%

-15%

Manufacturing Electricity Construction

Source: IHS Markit Regional eXplorer version 1946

Between 2009 and 2019, the manufacturing sector experienced the highest positive growth in 2010 with a growth rate of 6.7%. The construction sector reached its highest growth in 2009 at 7.4%. The manufacturing sector experienced its lowest growth in 2018 of -11.1%, while construction sector reached its lowest point of growth in 2018 a with -2.7% growth rate. The electricity sector experienced the highest growth in 2010 at 1.8%, while it recorded the lowest growth of -4.9% in 2009.

4.4 Tertiary Sector The tertiary sector consists of four broad economic sectors namely the trade, transport, finance, and the community services sector. The following chart represents the average growth rates in the GVA for these sectors in Ugu District Municipality from 2009 to 2019. PROFILE: UGU DISTRICT 21

CHART 5. GROSS VALUE ADDED (GVA) BY TERTIARY SECTOR - UGU, 2009-2019 [ANNUAL PERCENTAGE CHANGE]

Gross value added (GVA) by tertiary sector Ugu, 2009-2019

0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 -1%

-2%

Trade Transport Finance Community services

Source: IHS Markit Regional eXplorer version 1946

The trade sector experienced the highest positive growth in 2010 with a growth rate of 6.2%. The transport sector reached its highest point of growth in 2014 at 3.0%. The finance sector experienced the highest growth rate in 2019 when it grew by 3.5% and recorded the lowest growth rate in 2016 at 0.5%. The Trade sector had the lowest growth rate in 2017 at -0.7%. The community services sector, which largely consists of government, experienced its highest positive growth in 2019 with 3.5% and the lowest growth rate in 2017 with 0.1%.

4.5 Informal Sector Total employment can be broken down into formal and informal sector employment. Formal sector employment is measured from the formal business side, and the informal employment is measured from the household side where formal businesses have not been established.

Formal employment is much more stable than informal employment. Informal employment is much harder to measure and manage, simply because it cannot be tracked through the formal business side of the economy. Informal employment is however a reality in South Africa and cannot be ignored. The number of formally employed people in Ugu District Municipality counted 125 000 in 2019, which is about 78.77% of total employment, while the number of people employed in the informal sector counted 33 600 or 21.23% of the total employment.

22 PROFILE: UGU DISTRICT

Informal employment in Ugu increased from 30 800 in 2009 to an estimated 33 600 in 2019.

CHART 6. FORMAL AND INFORMAL EMPLOYMENT BY BROAD ECONOMIC SECTOR - UGU DISTRICT MUNICIPALITY, 2019 [NUMBERS]

Formal and informal employment by sector Ugu, 2019 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

Formal employment Informal employment

Source: IHS Markit Regional eXplorer version 1946

In 2019 the Trade sector recorded the highest number of informally employed, with a total of 14 200 employees or 42.15% of the total informal employment. This can be expected as the barriers to enter the Trade sector in terms of capital and skills required is less than with most of the other sectors. The Finance sector has the lowest informal employment with 2 060 and only contributes 6.11% to total informal employment.

5. Service Delivery

The 2020/21 IDP of the Ugu District Municipality approved on 28 May 2020 reports that the major basic service challenge faced by the district is the slow pace of backlog eradication and high levels of aged infrastructure. The ageing infrastructure results in high maintenance costs which have an adverse effect on the eradication of backlog programme due to limited funding. The IDP further indicates that there is also a challenge of high levels of illegal connections which further strain the available resources.

PROFILE: UGU DISTRICT 23

5.1 Water and Sanitation

Sanitation can be divided into specific types of sanitation to which a household has access. We use the following categories:

• No toilet - No access to any of the toilet systems explained below. • Bucket system - A top structure with a seat over a bucket. The bucket is periodically removed, and the contents disposed of. (Note: this system is widely used but poses health risks to the collectors. Most authorities are actively attempting to discontinue the use of these buckets in their local regions). • Pit toilet - A top structure over a pit. • Ventilation improved pit - A pit toilet but with a fly screen and vented by a pipe. Depending on soil conditions, the pit may be lined. • Flush toilet - Waste is flushed into an enclosed tank, thus preventing the waste to flow into the surrounding environment. The tanks need to be emptied or the contents pumped elsewhere

Ugu District Municipality had a total number of 58 000 flush toilets (29.07% of total households), 80 900 Ventilation Improved Pit (VIP) (40.58% of total households) and 49 400 (24.79%) of total household’s pit toilets.

A household is categorised according to its main access to water, as follows: Regional/local water scheme, Borehole and spring, Water tank, Dam/pool/stagnant water, River/stream, and other main access to water methods. No formal piped water includes households that obtain water via water carriers and tankers, rainwater, boreholes, dams, rivers and springs.

Ugu District Municipality had a total number of 43 800 (or 21.93%) households with piped water inside the dwelling, a total of 18 700 (9.39%) households had piped water inside the yard and a total number of 32 900 (16.51%) households had no formal piped water.

The regions within Ugu District Municipality with the highest number of households with piped water inside the dwelling is Hibiscus Coast Local Municipality with 29 400 or a share of 67.30% of the households with piped water inside the dwelling within Ugu District Municipality. The region with the lowest number of households with piped water inside the dwelling is Ezingoleni Local Municipality with a total of 449 or a share of 1.03% of the total households with piped water inside the dwelling within Ugu District Municipality.

24 PROFILE: UGU DISTRICT

5.2 Human Settlements

The total estimated demand for housing within Ugu District Municipal area of jurisdiction is 59 868 units. These include UMdoni (17 711), UMzumbe (18 107), Ray Nkonyeni (10 793) and UMuziwabantu (13 257). This total number has subsequently increased by another 4 885 according to the Kwa-Zulu Natal provincial Department of Human Settlements’ Strategic Plan for the period 2015/16 - 2019/20, which reported that housing backlog in the Ugu District now stands at 64 753 units. This accounts for 8.73% of the total housing backlog of 742 019 in the province. The largest proportion of this backlog in the District is made of households living in traditional dwelling/hut/structure made of traditional materials, amounting to 53 132. On the other hand, shacks in back yard account for the smallest proportion at 2 107. Umdoni LM is the municipality with the highest housing need in the Ugu District according to the housing needs assessment conducted by the Provincial Department of Human Settlements.

5.3 Sanitation Management

A distinction is made between formal and informal refuse removal. When refuse is removed by the local authorities, it is referred to as formal refuse removal. Informal refuse removal is where either the household or the community disposes of the waste, or where there is no refuse removal at all. A further breakdown is used in terms of the frequency by which the refuge is taken away, thus leading to the following categories:

• Removed weekly by authority • Removed less often than weekly by authority • Removed by community members • Personal removal / (own dump) • No refuse removal

Ugu District Municipality had a total number of 49 500 (24.82%) households which had their refuse removed weekly by the authority, a total of 2 700 (1.36%) households had their refuse removed less often than weekly by the authority and a total number of 134 000 (66.98%) households which had to remove their refuse personally (own dump).

The Integrated Waste Management Plan (IWMP) has been drafted in all Local Municipalities which intends to provide the extension of waste management services PROFILE: UGU DISTRICT 25

to areas which are not currently serviced by municipalities, notably in rural areas. It is necessary to implement the recommendation as included in the implementation plan of the IWMP.

5.4 Roads and Transport

The road hierarchy in the district starts with national roads, then provincial roads down to local municipal roads. The N2 runs parallel to the coast with plans to extend this coastal route into the Eastern Cape. The provincial road network provides a high proportion of the road network in Ugu and covers a vast range of types of roads from main regional links (class 2) through to local roads (class 7). In terms of road usage, up to date traffic volume data is only available for the N2 and R103.

The largest traffic volumes pass along the N2 towards Port Shepstone, and further towards Kokstad, as well as along the R61 from Port Shepstone towards Port Edward. Large volumes of traffic also pass along the R612 from Park Rynie to Ixopo and the road from Umtentweni to St Faiths. Access to road infrastructure varies across the district, especially between rural and urban areas. Access to transport is measured in terms of the percentage of households that have access to Level 1 and Level 3 roads (i.e. national, main and district roads).

Access to public transport is a major development challenge within the Ugu District and a potential factor in increasing access of communities to economic opportunities. 87% of public transport users within the district are dependent on mini bus transport, compared to 9% dependent on bus transport. In instances, where bus services are available, they transport more commuters than the mini bus taxi service.

Access to rail transport is limited within the region. The metropolitan rail system serving eThekwini only reaches the northern extremity of the Ugu area with three stages in the Umdoni municipality, namely Kelso, Park Rynie and Scottburgh. Although the south coast railway line is electrified and in use by Transnet Freight Rail as south as Port Shepstone, no commuter services are offered beyond these three stations.

5.5 Electricity

Households are distributed into 3 electricity usage categories: Households using electricity for cooking, Households using electricity for heating, households using electricity for lighting. Household using solar power are included as part of households with an electrical connection. This time series categorises households in a region according to their access to electricity (electrical connection).

26 PROFILE: UGU DISTRICT

Ugu District Municipality had a total number of 19 800 (9.94%) households with electricity for lighting only, a total of 152 000 (76.14%) households had electricity for lighting and other purposes and a total number of 27 800 (13.91%) households did not use electricity.

6 Governance and Management

6.1 Municipal Performance

The Local Government Municipal Structures Act, 117 of 1998 (MSA) as amended prescribed that the Municipal Council meets at least quarterly. The MSA provides for the establishment Committees of Council. In the case of KwaZulu/Natal this includes the Executive Committee which is the principal committee of Council. Other committees include Portfolio Committees, the Municipal Public Accounts Committee (MPAC) and the Audit Committee. These structures collectively form what is commonly referred as the oversight structures of Council.

The Executive Committee reports directly to the Municipal Council in terms of section 44 of the MSA. Both the MPAC and the Audit Committee report directly to Council. Where the Municipal Council has established other standing committees, these report directly to the municipal council, for instance, the Rules Committee. Portfolio Committees on the other hand report to the Executive Committee and section 80 of the MSA prescribes that these Committees must be chaired by members of the Executive Committee. The number of Portfolio Committees established by the Municipal Council may not exceed the number of Executive Committee members prescribed for that municipality. The report considers the functionality of the Troika (a group of three people working together) even though this structure is not legislated as yet. It is thus anticipated that there will be variances in the extent to which this structure is effective in various municipality. Table below considers the functionality of Council Governance Structures:

Issue Baseline Target Municipality Actual Actual Corrective Achievement Achievement Measures as at 30 as at 30 September December 2019 2019

Functionality Meeting Ugu Functional Functional Monitor and ensure June 2019 – No of Council held once Council considers Councils were per quarter, Ray Nkonyeni Functional Functional reports from Exco classified as consider (Sec 44) and adopts poorly and adopt Annual Report, functional legislated Umdoni Functional Functional Oversight Report, PROFILE: UGU DISTRICT 27

and key Adjustment Budget, Umzumbe Functional Functional reports Draft Budget for 20/21, IDP Review, Audit Strategy and Umuziwabantu Functional Functional Action Plan, Procurement Plan 20/21

Generally, the Council is playing its oversight role in Ugu, however, Council may need to improve its oversight to positively impact the audit outcomes. Council’s must ensure that consequence management is implemented where necessary for non-compliance and misconduct The Ugu District Municipality has met the requirements of the Municipal Systems Act and the Municipal Finance Management Act in respect of the adoption of the IDP, Budget, SDBIP and the Annual Report. The Ugu District Municipality has advised that the SDBIP for the 2019/20 financial year has been adopted by the Mayor. The Standing Rules and Orders Delegations Register and By-Laws have been adopted by the Municipality.

The Ugu District Municipal Executive Committee is monitoring the implementation of the IDP and the Budget as well as the functionality of their respective Portfolio Committees.

Municipal Public Accounts committee (MPAC) are functional except at Umzumbe Local Municipality where it was reported that report to MPAC are getting intercepted by some councillors. In the Ugu District Municipality all MPAC committee members have been trained and the MPAC Committee has adopted an annual work plan/programme.

6.2 Municipal Capacity

At the time of the assessment, three vacancies existed in the Ugu District Municipality, that of the Mayor and two PR Councillors. The table below does have enough information. The below table shows the filling of vacant posts.

28 PROFILE: UGU DISTRICT

6.3 Traditional Affairs Governance

In the Ditstrict, traditional leaders are legally recognized at all levels (kingship, queenship, principal traditional leadership, senior traditional leadership, and headmen/headwomen). However, although the existing Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003)(Framework Act), makes provision for the establishment of traditional leadership structures such as kingship or queenship councils, principal traditional councils and traditional councils, the timeframes within which these structures had to be legally constituted or reconstituted have lapsed. Until such time that the relevant traditional leadership structures have been legally constituted or reconstituted, their legal status and standing will remain uncertain and could be challenged. This may also impact negatively on the statutory duties and responsibilities of such structures. Currently, there is no enabling legislation to legally reconstitute them. The Traditional Leadership and Khoi-San Leadership Act will provide enabling legislation for their legal constitution. However, the Act has not yet commenced due to the reasons alluded above and therefore the enabling provisions in the Act cannot be used at this stage to reconstitute these structures

6.3.1 Participation of traditional leaders in municipal council processes

In KwaZulu Natal traditional leaders have been identified for the purposes of participation as contemplated in the Act and it was done through a Provincial Gazette as required by section 81(2) of the Act. Traditional leaders identified participate in the proceedings of the municipal councils. There is a system of rotation of participating PROFILE: UGU DISTRICT 29

traditional leaders on a five-year cycle. All municipal council does not allow traditional leaders to address the council, however they participate and sit in council committees. The municipalities pay the participating traditional leaders an allowance. They are paid an out of pocket expenses (subsistence and travelling expenses). The table below depicts the number of participating traditional leaders per District and Local Municipality.

DISTRICT/LOCAL MUNICIPALITY IDENTIFIED TRADITIONAL LEADERS Ugu District Municipality 7 uMdoni Local Municipality 7 uMzumbe Local Municipality 7 uMuziwabantu Local Municipality 4 Ray Nkonyeni Local Municipality 7 TOTAL 32

The uGu District has a Local House of Traditional leaders consisting of forty two (42) traditional councils. All the local houses of traditional leadership have met once a quarter as have the EXCOs.

6.4 Environmental forecasts

By 2035 Ugu District will be a spatially, socially, and economically transformed living environment its economy and natural resources accessible to all its people through targeted actions to provide better living, social and economic opportunities.” The vision commits the District to champion economic and social transformation within its key sectors, this includes the delivery new opportunities closer to major economic centres (e.g. GAP Housing) The attainment of this vision requires the municipality to facilitate the development of a spatial system that promotes social, economic, financial, institutional and environmental sustainability. The District spatial vision aims to achieve the following: Transformation of the economy and inclusion of the previously disenfranchised into the mainstream economy, restructuring of the spatial geography through spatial planning and strategically catalytic projects (e.g. IFAFA Industrial Park), Investments are directed towards nodes in order to strengthen their sustainability and impact  Medium to high density Settlements are contained within urban edges to reduce the cost of services and optimise capital investments  Enhance existing sustainable economic development opportunities;  Protect and enhances the quality of the environmental assets and harmonise with human development through planning; and  Facilitates non-discriminate access to a range of services and development opportunities; develops sustainable human settlements where residents can lead enriched, healthy and convenient lives.

A further opportunity in rural areas is the rehabilitation of degraded open space using certain of the state funding mechanisms to create ‘green jobs. Owing to the unique landscape qualities of this area and to certain of its natural and cultural heritage features there is scope for the establishment of different types of tourism routes

30 PROFILE: UGU DISTRICT through the area including landscape, hiking, mountain biking and cultural. This in turn would enable involvement of local communities in the guiding and hospitality industry. In the rural areas of the District where the emphasis is on sustaining agriculture and open space, adjustments will also have to be introduced into the traditional system of land allocation and municipal system of land use. This will involve defining limits to settlement expansion and internal sub-division of land. It will also need to involve including controls over use of agricultural land and open space such that it cannot be converted into further housing development.

7 Projects to Diversify and Grow People and the Economy

7.1 Social Development Projects The social development projects consist of the building of schools and ECDs, and the upgrading of health centres. The tables below highlight each project and budget.

NO KZN Nature of project Budget DEPARTMENTS 2019/20 1 Education MABUTHELA HIGH SCHOOL INKANYEZI YAMACHI PRIMARY SCHOOL CONISTON PRIMARY SCHOOL 1432000 AMANDLALANATHI PRIMARY SCHOOL 15782865 KHABA JUNIOR SECONDARY SCHOOL 2075000 UGU CIVIL/STRUCTURAL 900000 FUMANA SECONDARY SCHOOL 66000 IMBIZANE PRIMARY SCHOOL 2804000 GALENI HIGH SCHOOL 250000 ROSEVILLE SECONDARY SCHOOL 1500000 UMTAMTENGWAYO PRIMARY SCHOOL 767000 (MAKHANYA) 608000 ZEMBENI SENIOR PRIMARY SCHOOL 15654000 INHLASANA PRIMARY SCHOOL 206000 NONGWINYA PRIMARY SCHOOL 332000 ST FRANCIS PRIMARY SCHOOL 429000 ST THERESA PRIMARY SCHOOL 230000 VUKAPHI PRIMARY SCHOOL 1588000 SEZELA PRIMARY SCHOOL 1854000 MERLEWOOD INTERMEDIATE SCHOOL 612000 MZUKELA PRIMARY SCHOOL 27512353 SIDUMILE PRIMARY SCHOOL 21000 IMPUMELELO SENIOR PRIMARY SCHOOL 182000 SIKANISWENI SECONDARY SCHOOL ITHONGASI PRIMARY SCHOOL

881000 21000 182000

PROFILE: UGU DISTRICT 31

Education 271000 ISIKHUTHALI PRIMARY SCHOOL 52000 ENTABENI PRIMARY SCHOOL 307000 INDUNDUMA PRIMARY SCHOOL KWAHLONGWA PRIMARY SCHOOL (RETENDER) UGU PRIMARY SCHOOL SIYEPHU PRIMARY SCHOOL NOMAGEJE PRIMARY SCHOOL MHLANGAMKHULU PRIMARY SCHOOL INQANULA PRIMARY SCHOOL (RETENDER) 556000 MGAI PRIMARY SCHOOL 363000 BEAULAH PRIMARY SCHOOL 271000 EMJALISWENI PRIMARY SCHOOL 2349000 UMVOLOZI PRIMARY SCHOOL 836000 MCELENI PRIMARY SCHOOL 386000 IFAFA JUNIOR PRIMARY SCHOOL 380000 ISUBALASHA PRIMARY SCHOOL 21000 DUNYWA PRIMARY SCHOOL 271000 BUHLEBEZWE PRIMARY SCHOOL 539000 UGU ELECTRIFICATION 520000 305000 867000

Education ISIKHUTHALI PRIMARY SCHOOL ENTABENI PRIMARY SCHOOL INDUNDUMA PRIMARY SCHOOL 271000 KWAHLONGWA PRIMARY SCHOOL (RETENDER) 52000 UGU PRIMARY SCHOOL 307000 SIYEPHU PRIMARY SCHOOL NOMAGEJE PRIMARY SCHOOL MHLANGAMKHULU PRIMARY SCHOOL INQANULA PRIMARY SCHOOL (RETENDER) MGAI PRIMARY SCHOOL BEAULAH PRIMARY SCHOOL EMJALISWENI PRIMARY SCHOOL 556000 UMVOLOZI PRIMARY SCHOOL 363000 MCELENI PRIMARY SCHOOL 271000 IFAFA JUNIOR PRIMARY SCHOOL 2349000 ISUBALASHA PRIMARY SCHOOL 836000 DUNYWA PRIMARY SCHOOL 386000 BUHLEBEZWE PRIMARY SCHOOL 380000 UGU ELECTRIFICATION 21000 271000 539000 520000 305000 867000

2 Social Masimbambisane Creche 180000 Development Siyathuthuka Creche 180000

3 Sports & Mgamule C School Combo Court Recreation Gamalakhe Hub Centre Khakhamela P School ECD's R490 626,80 Thandokuhle Creche ECD's R364 835,00 Isisekelo Creche ECD's R60 000,00 R60 000,00 R60 000,00

32 PROFILE: UGU DISTRICT

4 Health Murchison Hospital - Upgrade Neonatal Nursery and Waste Centre 500000 Mthimude Clinic - Upgrade and Extend Existing Clinic 300000 Gamalakhe CHC- Scheduled Maintanance 100000 Murchison Hospital - Scheduled Maintenance 800000 Turton CHC: Day-to-Day/ Corrective Maintenance 996000 Murchison Hospital: Installation of booster pump and auxillaries to an existing 887575 waters 9000000 MUgu District Office - Day to day Maintenanceurchison Hospital- Alterations and 5000 Renovations to Staff Accommodation 70000 Ugu EMS (4): Day-to-Day/ Corrective Maintenance 1000000 Port Shepstone Hospital - Scheduled Maintenance 2900000 Murchison Hospital - Replace Theatre A/C Plant 450000 Gamalakhe CHC-Day-to-Day/ Corrective Maintenance 2400000 Murchison Hospital - Day-to-Day/ Corrective Maintenance 4000000 Port Shepstone Hospital-New 28 bedded Psychiatric Unit 600000 St Andrew Hospital - Day-to-Day/ Corrective Maintenance 2500000 GJ Crookes Hospital -Day-to-Day/ Corrective Maintenance 2900000 St Andrews Hospital - Institutional Based Minor Maintenance Projects 7405000 Murchison Hospital Institutional based Maintenance Projects 20000 Ugu District Office - Scheduled Maintenance 100000 Dunstan Farrel TB Hospital- Day to Day/ Corrective Maintenance 8500000 Port Shepstone Hospital: Urgent repairs to fire damage

7.2 Spatial Development

The Provincial Human Settlements Master Spatial Plan for KwaZulu-Natal estimated the housing backlogs for Ugu District, based on a comparison of figures contained in the District IDP and figures provided by Stats SA. In order to eradicate the housing backlog the Provincial Human Settlements Master Spatial Plan for KwaZulu-Natal provides the following envisioned Spatial Interventions and Targets for the Ugu District.

The settlement density from a spatial perspective is provided in the figure below. Figure 1: Settlement Densities

PROFILE: UGU DISTRICT 33

Table 1: Human Settlement Interventions UGU DM SPATIAL INTERVENTIONS Upgrade Dense-Informal Settlements

Provide sustainable service delivery mechanisms to scattered settlements e.g. rain water harvesting & solar energy Development of Affordable and Social Housing in areas of demand Investigate establishment of an Old Age Home in Ugu Maintenance & upgrade of towns in terms of SDF nodal plans (including Margate Urban renewal project & Harding CBD redevelopment) Upgrade Dense-Informal Settlements Provide sustainable service delivery mechanisms to scattered settlements e.g. rain water harvesting & solar energy Development of Affordable and Social Housing in areas of demand Source: KZN Human Settlements Master Plan 2016

The Informal Settlement Eradication Strategy for KwaZulu-Natal (2011) identifies Ray Nkonyeni Municipality as one of the 15 strategic priority areas for strategies and plans to address informal settlements. It identifies four informal settlements and suggests that approximately 4 483 households reside in these areas. The areas being: Bhobhoyi Phase 2 with 1100 households; Louisiana with 1000 households; Masinenge with 1542 households and Mkholombe with 1600 households.

7.4 Infrastructure Projects

NO KZN Nature of project Budget DEPARTMENTS 2019/20 1 Human KwaMadlala Rural Housing Rural In-Situ Upgrade R126 954 730.00 Settlements KwaXolo Rural Housing Rural In-Situ Upgrade Gamalakhe In-situ Upgrade Rural In-Situ Upgrade R144 195 388.00 Umzumbe Cluster “D” Rural Housing Project Rural Housing R63 427 145.0 Malengeni Rural Housing Project Rural Housing Amandawe Rural Housing Project Rural Housing 67 533 190.00 64 015 015.00 52 772 800.00

7.4 Economic Projects The district is committed to dealing with the triple threat challenge which is poverty, inequality, and unemployment. A total of 3 450 job opportunities will be created, and 450 SMMEs, Cooperatives, and Informal 17

Business Sector will be trained during the current IDP period. Furthermore, the district will ensure the development of the main economic sectors such as agriculture and explore green economic initiatives. In terms of community development, the municipality will ensure implementation of seven programmes per annum for vulnerable groups and consistent promotion of youth development.

7 Key Recommendations

8.1 Prioritise Integrated Development Plan

34 PROFILE: UGU DISTRICT

• Supply of 92 static tanks. • Operation Khawuleza Water & Sanitation 2 x Water tanker • Short Term Interventions (ex WSA)

SHORT TERM INTERVENTIONS (ex WSA) WSA LM SCHEME/AREA PROJECT/INTERVENTION REQUIRED IMPACT IMMEDIATE COST UGU Vario Spring Protection - assessment R4 300 000 R50 670 people in us 7 989 households Umdo KwaLembe RBWSS Extention of Kwalembe water supply scheme, R21 011 910 ni comprises Bhudubhudu Ntabesikopo, Ntshaseni, Ntshingwana, KwaLembe, Izimpethu-Zendlovu, mKhuya, Emandleni, KwaQiko, Dududu and the “R1” reservoir zone at the boundary of Ugu and eThekwini.

Scope: Weir cross Mkomass river, upgrade abstraction works, new 6 ml/day WTW, 2 new pumpstations, 5 new reservoirs, new 355 mm and 400mm pipelines.

Umthavuna Raw Water abstraction pump station and water treatment works (WTW) R25 311 910

• Medium / Long Term Interventions – Ugu District (ex WSA):

MEDIUM / LONG TERM INTERVENTIONS – UGU DISTRICT (ex WSA) WSA LM SCHEME/AREA PROJECT/INTERVENTION REQUIRED IMPACT IMMEDIATE COST UGU Umdoni Vulamehlo Cross Phased R382 000 000 Will also supply part of Boder BRWSS Harry Gwala District

Umuziwabant Harding Weza Dam and transfer system, R115 000 000 This will include the u RBWSS upgrading of Weza treatment works Weza Dam funded by from 6ml/day to 14 ml/day, bulk MIG supply scheme – resevrvoirs, pumps station and pipelines, reticulation networks.

R497 000 000

State of Water Report

Ugu District Municipality has identified 16 more catalytic projects that will be a driver for change in the Ugu District area of jurisdiction:

PROFILE: UGU DISTRICT 35

o Margate airport to cater for larger carriers o Port Shepstone beachfront redevelopment o Port Shepstone Government Precinct / Mixed Use More: Development of a Government Complex o Port Shepstone Government Precinct / Mixed Use More: A 74-km walking, hiking, cycling and horse riding trail linking RNM and Umzumbe. o Umzumbe River Trail - R35m o KwaXolo Adventure Centre o Fallow fields cultivation - Tea Tree, Moringa, Macadamia o Murchisson Mixed Use Node o Renewable energy – KwaMachi bioethanol o Forestry Industrialization o Scottburgh Beachfront redevelopment o Ifafa Industrial Park o Amandawe Precinct Plant o Rural Events and Wedding Centre o Fish farm o Turton Beachfront development

8.2 Investor and Sponsorship opportunities

Ugu Traditional leaders have partnership with the private organization which directly deals with Agricultural projects. Umnotho Business Development Agent (UBDA). There was an agreement between Amakhosi and UBDA, memorandum of understanding was signed. The agreement clearly state how the projects will improve economy in all the targeted traditional council.

36 PROFILE: UGU DISTRICT