NGAKA MODIRI MOLEMA

District NW

NMMDM, motivated by Agriculture, Tourism (Heritage sites and Game farms)

2 PROFILE: NGAKA MODIRI MOLEMA DISTRICT

Table of Contents EXECUTIVE SUMMARY ...... 4 1. INTRODUCTION: BRIEF OVERVIEW ...... 5 1.1. Location ...... 5 1.2. Historical Perspective ...... 6 1.3. Spatial Status ...... 6 1.4. Land Ownership ...... 7 2. SOCIAL DEVELOPMENT PROFILE ...... 8 2.1. Key Social Demographics ...... 8 2.1.1. Population ...... 8 2.1.2. Race, Gender and Age ...... 8 2.1.3. Households ...... 10 2.1.3.1. Child Headed ...... 10 2.1.3.2. Women Headed ...... 10 2.2. Health Profile ...... 10 2.3. COVID - 19 ...... 11 2.3.1. Number of cases ...... 11 2.3.2. Quarantine Facilities Available and Assessed ...... 12 2.3.3. Infrastructure (responding to COVID 19) ...... 13 2.3.4. Food Security ...... 14 2.3.5 Informal economy ...... 14 2.4. Poverty Dimensions ...... 15 2.4.1. Inequality ...... 15 2.4.2. Employed /Unemployed ...... 15 2.4.3. Crime ...... 17 2.5. Education and Skills Profile ...... 18 3. DRIVERS OF THE ECONOMY ...... 18 3.1. Structure of the Economy ...... 18 3.2. Primary Sector ...... 20 3.2.1. Mining ...... 20 3.3. Secondary Sector ...... 20 3.4. Tertiary Sector ...... 20 4. SERVICE DELIVERY ...... 21 4.1. Water and Sanitation ...... 21 4.1.1. Access to Water ...... 21 4.1.2. Sanitation ...... 22 4.2. Waste Management ...... 23 4.3. Roads and Transport ...... 24 4.4. Electricity ...... 24 5. GOVERNANCE AND MANAGEMENT ...... 26 5.1. Municipality Performance ...... 26 5.2. Municipal Capacity ...... 27 5.3. Traditional Affairs Governance ...... 28 6. PROJECTS TO DIVERSIFY AND GROW PEOPLE AND THE ECONOMY ..... 30 6.1. Spatial Development ...... 30 6.2. Environmental forecast ...... 30 7. KEY RECOMMENDATIONS ...... 31 PROFILE: NGAKA MODIRI MOLEMA DISTRICT 3

7.1. Prioritise Integrated Development Plan ...... 31

4 PROFILE: NGAKA MODIRI MOLEMA DISTRICT

EXECUTIVE SUMMARY

The purpose of this report is to provide a development profile of the Ngaka Modiri Molema District Municipality (NMMDM). The report also provides an analysis of the key development trends and Covid – 19 response plan in the NMMDM area.

Furthermore, the report also identifies key challenges, which include significantly high levels of poverty, high unemployment rates, jobless growth in the economy, and an overall declining economy that is, in part perpetuated by spatial patterns.

The Ngaka Modiri Molema District Municipality (NMMDM) is one of the four district municipalities (DMs) in the North West Province (NWP) with a total extend of 28 206 km². According to Statistics Community Survey (STATSSA CS) 2016, NMMDM has a total population of 889 108. It is comprised of five Local Municipalities (LMs) namely, Ditsobotla LM, LM, Ramotshere Moiloa LM, Ratlou LM and Tswaing LM.

NMMDM is centrally located amongst Bojanala Platinum DM, Dr Ruth Segomotsi Mompati DM and Dr Kenneth Kaunda DM within the NWP and shares a boundary with the Republic of to the north “a gateway to the broader Southern African Development Countries (SADC) region”, the Northern Cape Province to the South- west and Limpopo Province to the north-east.

The main economic activities across the District is Agriculture which include both Crops and Livestock, Arts and Culture in some areas, Tourism in some areas, and Mining which is confined to some isolated areas. The Capital City of the Province, Mahikeng, with all the government buildings, provide employment to many thousands of government employees as well as other related industries.

According to Ngaka Modiri Molema IDP (2017/2022), its strategic location offers great opportunities towards the economic development of the District underpinned by various development corridors namely:

• Platinum Corridor (N4), which stretches from the east to the west of NMMDM connecting the Republic of South Africa with the Republic of Botswana and Republic of Mozambique. • The N18 Western Frontier Corridor N18; and PROFILE: NGAKA MODIRI MOLEMA DISTRICT 5

• The N14 route provides the link between Gauteng and the Northern Cape Province and it is supported by the - Vryburg railway line which is also joining up with the Johannesburg- Cape Town railway line in the West.

This illustrates the economic opportunities that lie within the district and the potential to create much-needed jobs, reduce poverty and inequality. It is in this context that municipal socio-economic conditions should inform resource allocation and effective, efficient and accountable use of resources is of paramount importance. The report will as a result focus three critical pillars which are population dynamics which should always be considered by each local municipality when planning and distributing resources, development indicators which the plan and resources used by the municipality must transform and finally, infrastructure provision.

In respect of the recent Covid-19 outbreak, as at 5 June 2020, the total number of cases for the district is 19, zero deaths have been recorded and there are 5 recoveries which is 26% recovery of the district. The district has identified 8 quarantine sites with 448 beds, the quarantine sites are currently fully operational except one which is .

1. INTRODUCTION: BRIEF OVERVIEW 1.1. Location The Ngaka Modiri Molema District Municipality (NMMDM) is a Category C municipality i.e. a municipality that has municipal executive and legislative authority in an area that includes more than one municipality. NMMDM is one of four district municipalities in the North West Province and covers an area of approximately 28 114km².

Mahikeng which is the seat of the district also has an International Airport with necessary capacity to be operational, however the airport has been closed for some years now and is not in use.

6 PROFILE: NGAKA MODIRI MOLEMA DISTRICT

1.2. Historical Perspective The Baberspan Bird Sanctuary is another hidden jewel of the District as well as the Province. The site attracts people from as far as Holland, but the facility lacks the infrastructure that would attract bird lovers the world over.

1.3. Spatial Status NMMDM is situated centrally within the province and shares an international border with Botswana. It comprises of five local municipalities: Mahikeng LM, Ratlou LM, Ramotshere Moiloa LM, Ditsobotla LM and Tswaing LM. Mahikeng house the provincial capital of the North West province. The major town is .

Map of District with its local municipalities: PROFILE: NGAKA MODIRI MOLEMA DISTRICT 7

1.4. Land Ownership To date, some progress has been made in the land claim processes in Ngaka Modiri Molema District Municipality. Out of the 138 land claims that have been lodged, 118 (85.5%) were settled. Moreover, of the remaining 14.5% (20) of the land claims, the majority is partially complete.

The map below depicts the land reform and restitution areas in the district municipality.

8 PROFILE: NGAKA MODIRI MOLEMA DISTRICT

2. SOCIAL DEVELOPMENT PROFILE 2.1. Key Social Demographics 2.1.1. Population With 961 960 people, the Ngaka Modiri Molema District Municipality housed approximately 1.6% of South Africa's total population or 23.3% of the total population in the North-West Province in 2019. Between 2008 and 2018, the population growth averaged 1.33% per annum, which was just below the growth rate of the province and South Africa at 1.97% and 1.61%, respectively. The Ditsobotla Local Municipality increased the most, in terms of population, with an average annual growth rate of 1.7%, the Mafikeng Local Municipality had the second highest growth in terms of its population, with an average annual growth rate of 1.5%. The Ratlou Local Municipality had the lowest average annual growth rate of 0.55% relative to the other within the Ngaka Modiri Molema District Municipality.

Based on the present age-gender structure and the present fertility, mortality and migration rates, Ngaka Modiri Molema's population is projected to grow at an average annual rate of 1.6% from 947 000 in 2018 to 1.02 million in 2023. The North-West Province is estimated to have average growth rate of 1.6% which is higher than the Ngaka Modiri Molema District Municipality. The South Africa as a whole is estimated to have an average annual growth rate of 1.4% which is lower than that of Ngaka Modiri Molema's growth rate.

2.1.2. Race, Gender and Age

In 2018, the Ngaka Modiri Molema District Municipality's population consisted of 94.34% African (893 000), 3.38% White (32 000), 1.56% Coloured (14 800) and 0.72% Asian (6 840) people.

PROFILE: NGAKA MODIRI MOLEMA DISTRICT 9

POPULATION BY POPULATION GROUP, GENDER AND AGE - NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY, 2018 [NUMBER]

African White Coloured Asian

Female Male Female Male Female Male Female Male 00-04 48,200 50,100 685 911 736 747 230 236 05-09 50,800 53,000 983 1,160 724 771 137 236 10-14 50,400 51,900 979 1,100 669 691 189 249 15-19 37,500 37,600 796 893 565 692 136 171 20-24 34,100 32,500 536 668 496 755 152 317 25-29 35,600 32,200 837 946 555 701 259 553 30-34 35,300 32,400 1,100 1,260 439 588 216 677 35-39 32,300 28,600 1,100 1,420 470 548 356 425 40-44 24,900 23,100 1,260 1,180 415 449 208 398 45-49 21,600 18,100 1,150 1,100 362 420 148 281 50-54 21,000 17,700 992 1,110 449 421 153 199 55-59 20,000 16,700 1,070 1,170 317 318 169 111 60-64 16,900 14,100 1,040 1,120 306 253 104 50 65-69 12,900 10,600 823 875 221 145 90 59 70-74 8,860 7,780 746 744 123 133 72 55 75+ 10,300 6,300 1,400 887 162 109 170 35 Total 461,000 433,000 15,500 16,500 7,010 7,740 2,790 4,050 Source: IHS Markit Regional eXplorer version 1803

Ngaka Modiri Molema District Municipality's male/female split in population was 94.9 males per 100 females in 2018. The Ngaka Modiri Molema District Municipality appears to be a fairly stable population with the share of female population (51.31%) being very similar to the national average of (51.05%). As indicated in the table below, in total there were 486 000 (51.31%) females and 461 000 (48.69%) males. This is different from the North-West Province as a whole where the female population counted 2.02 million which constitutes 49.56% of the total population of 4.07 million.

POPULATION BY GENDER - NGAKA MODIRI MOLEMA AND THE REST OF NORTH-WEST PROVINCE, 2018 [NUMBER]

Male Female Total Ngaka Modiri Molema 461,000 486,000 947,000 Bojanala Platinum 956,000 857,000 1,810,000 Dr Ruth Segomotsi 247,000 268,000 515,000 Mompati Dr Kenneth Kaunda 390,000 407,000 797,000 North-West 2,050,000 2,020,000 4,070,000 Source: IHS Markit Regional eXplorer version 1803

The largest share of population is within the babies and kids (0-14 years) age category with a total number of 316 000 or 33.4% of the total population. The age category with the second largest number of people is the young working age (25-44 years) age 10 PROFILE: NGAKA MODIRI MOLEMA DISTRICT category with a total share of 27.5%, followed by the older working age (45-64 years) age category with 159 000 people. The age category with the least number of people is the retired / old age (65 years and older) age category with only 63 600 people, as reflected in the population pyramids below.

2.1.3. Households In 2019, the Ngaka Modiri Molema District Municipality comprised of 268 099 households. This population accounts to one fifth of the population in the North West province.

2.1.3.1. Child Headed In 2018, the Ngaka Modiri Molema District Municipality, 2 579 households were headed by children under the age of 18 years. This equates to approximately 13.4% child-headed households that are residing in informal dwellings (shacks).

2.1.3.2. Women Headed In 2018, approximately 41.2% of the households in the Ngaka Modiri Molema District Municipality were headed by women.

2.2. Health Profile

The leading cause of death for children below the age of 4 years are communicable diseases. For children between the ages 5 and 14 the leading cause of death are communicable diseases and injuries. 59% of males between the ages 15-24 die because of injuries whereas most females in that age category die because of HIV/Aids and TB related diseases. This is also the case for females between the ages of 25 and 49 years. This is also the leading cause of death for males between 25 and 49 years. Males (66%) and Females (79%) above the age of 50 die because of Non Communicable diseases.

PROFILE: NGAKA MODIRI MOLEMA DISTRICT 11

In 2018, NMMD had 79 clinics, 16 community health centres, 5 district hospitals, 1 regional hospital and 1 special psychiatric hospital to provide holistic care services to the district residents. In terms of accessibility of health care services there is still a challenge as some clinics do not operate on a 24hr basis and Communities find it difficult to get health care services during a time of need.

NUMBER HEALTH FACILITIES ACROSS DISTRICT MUNICIPALITIES Health Facilities BOJ DKK DRSM NMMD TOTAL Clinic 109 30 50 79 268 Satellite Clinic 2 2 0 0 4 Community Health Centre 8 9 12 16 45 District Hospital 3 2 4 5 14 Regional Hospital 0 1 1 1 3 Provincial Tertiary 1 2 0 0 3 Hospital Specialised Psychiatric 1 0 1 2 Hospital Total 123 47 67 102 339 Source: North West Provincial treasury (2018)

2.3. COVID - 19 2.3.1. Number of cases

In respect of COVID-19, as of 7 June 2020, a total of 761 377 people were screened with 344 confirmed cases, 31 active cases, 12 recoveries and no death. 12 PROFILE: NGAKA MODIRI MOLEMA DISTRICT

Source: Department of Health, 2020

2.3.2. Quarantine Facilities Available and Assessed The Ngaka Modiri Molema District has a total of eleven (11) quarantine facilities as reflected in the table below. Nr Town State / Private Nr of Rooms Nr of Beds Status of Facility Site Activations Owned available Available Status 1. Not assessed Pending 2. 36 76 Not assessed Pending 3. Lichtenburg State-Owned 50 50 DOH Compliant Pending 4. Mafikeng Not assessed Pending 5. Mafikeng NU State-Owned 21 23 Not assessed Pending 6. Mafikeng NU Private 30 30 Not assessed Pending

7. Mafikeng NU State-Owned Not assessed Pending 8. Lehurutshe State-Owned DOH Non- Pending Compliant 9. Mafikeng State-Owned 10 Assessed and Activated 10 approved by DPW or Province 10. Mafikeng NU State-Owned 6 Assessed and Activated 6 approved by DPW or Province 11. Mafikeng NU State-Owned Assessed and Activated 1 approved by DPW or Province Total 153 196 PROFILE: NGAKA MODIRI MOLEMA DISTRICT 13

2.3.3. Infrastructure (responding to COVID 19)

2.3.1.1 Provision of Water and Sanitation

The Department of Water and Sanitation has appointed Rand Water as an implementing agent for the provision of emergency water supply to communities as well as for sanitation projects in high risk areas. The table below shows the distribution level of the water infrastructure across the province.

Local Tanks Delivered Installed Tankers Tankers Number of Municipality Allocated allocated delivered villages benefiting Ratlou LM 42 42 41 2 2 9 Ditsobotla LM 38 38 37 2 2 5 Mafikeng LM 64 64 67 4 4 9 Tswaing LM 67 56 37 2 2 10 Ramotshere LM 67 78 78 3 3 11 Total 278 278 260 13 13 44

2.3.1.2 Reprioritization of the Budget

Numerous interventions have been put in place to combat COVID – 19. Within the district, Madibeng is the only municipality that reprioritised their MIG funds to implement critical water and sanitation maintenance projects that will assist with the combatting of COVID-19.

Project Name Project Description Total Projected Costs

Pump test and equip 02 existing boreholes Incomplete project - done by at Middleton C and erect the 04 Km bulk R 4 500 000,00 Sedibeng(Middleton C) pipeline to the storage tank.

Incomplete project - done by Drilling 3 borehole and equip, construct a R 5 000 000,00 Sedibeng(Atamelang) bulk line and connect to the storage Tank

Welbedagcht Unit 1- Manchester Drill and equip an estimation of 03 Section Drilling and equipping of boreholes, construct a bulk pipeline and R 4 000 000,00 boreholes connect to existing storage. 14 PROFILE: NGAKA MODIRI MOLEMA DISTRICT

Project Name Project Description Total Projected Costs

Besiesvlei Drilling and equipping Drill and equip an estimation 06 boreholes, R 5 000 000,00 of boreholes & bulk pipeline bulk pipeline

Madibogo - Ramabesa Drilling Drill and equip an estimation of 02 and equipping of boreholes, additional boreholes, construct 100kl R 5 000 000,00 storage tank and connect storage tank and connect to the network. Refurbishment of Waste Refurbishment of Ottosdal Waste Water Water Treatment plant- R 8 500 000,00 Treatment plant- Mechanical and Electrical Mechanical and Electrical Drilling and equipping of 1 new borehole, Venture - Drilling and equipping of equipping of 2 existing boreholes, construct R 3 000 000,00 new borehole a storage tank, reticulation and standpipes. Drill and equip two boreholes, equip 2 Rietpoort - Drilling and equipping existing boreholes and connection to the R 2 500 000,00 of boreholes existing line Zeerust (Sandvlaakte) - Refurbishment of pump station (supply and R 2 000 000,00 Refurbishment of pump station install 2 booster pumps).

Venture - Supply and Install VIP's Supply and Install 200 VIP's R 2 500 000,00

The replacement of the underground sewer network for the targeted area entailing Atamelang sewer network Up excavation, removal and replacement of R 2 613 484,70 existing pipelines with bigger diameter pvc pipes and associated works.

2.3.4. Food Security

The Department of Social Development is implementing a feeding programme comprising of all centre base feeding services such as: Community Nutrition and Development Centres (CNDC). To this end in NMMD a total of 1676 beneficiaries were reached through the Community Nutrition and Development Programme.

2.3.5 Informal economy

The number of formally employed people in Ngaka Modiri Molema District Municipality counted 205 000 in 2019, which is about 84.69% of total employment, while the number of people employed in the informal sector counted 37 000 or 15.31% of the total employment. Informal employment in Ngaka Modiri Molema District increased from 27 000 in 2009 to an estimated 37 000 in 2019. PROFILE: NGAKA MODIRI MOLEMA DISTRICT 15

An inspection was conducted to check the Compliance of Traders (Monitor compliance of Liquor traders, SMMEs, Spaza shops to comply with the Legislation and the COVID 19 regulations). In Mahikeng, 29 Businesses inspected;05 x tuck shops and 3 were closed and 10 x Liquor stores non complaint to COVID 19 regulations.

2.4. Poverty Dimensions 2.4.1. Inequality In 2018, there were 640 000 people living in poverty, using the upper poverty line definition, across Ngaka Modiri Molema District Municipality - this is 3.14% higher than the 621 000 in 2008. The percentage of people living in poverty has decreased from 75.08% in 2008 to 67.66% in 2018, which indicates a decrease of 7.42 percentage points.

The per capita income in Ngaka Modiri Molema District Municipality is R 40,100 and is lower than both the National Total (R 58,800) and of the North-West Province (R 52,300) per capita income.

Number and percentage of people in poverty Ngaka Modiri Molema, 2008-2018 Number of people in poverty 660 000 76% 640 000 74% 620 000 72% 70% 600 000 68% 580 000 66% 560 000 64% 540 000 62% 520 000 60% 500 000 58% 480 000 56% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: IHS Markit Regional eXplorer version 1803 2.4.2. Employed /Unemployed In 2018, the unemployment rate in Ngaka Modiri Molema District Municipality (based on the official definition of unemployment) was 19.71%, which is a decrease of -4.46 percentage points. The unemployment rate in Ngaka Modiri Molema District Municipality is lower than that of North-West. The unemployment rate for South Africa 16 PROFILE: NGAKA MODIRI MOLEMA DISTRICT was 27.31% in 2018, which is an increase of -3.72 percentage points from 23.59% in 2008.

Number of unemployed & Unemployment rate Ngaka Modiri Molema, 2008-2018 64 000 30%

62 000 25% 60 000 20% 58 000

56 000 15%

54 000 10% 52 000 5% 50 000

48 000 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of unemployed people Unemployment rate

Source: IHS Markit Regional eXplorer version 1803

When comparing unemployment rates among regions within Ngaka Modiri Molema District Municipality, Mahikeng Local Municipality has indicated the highest unemployment rate of 20.3%, which has decreased from 25.9% in 2008. It can be seen that the Ratlou Local Municipality had the lowest unemployment rate of 17.7% in 2018, which decreased from 23.0% in 2008.

The Gini-Coeffient is 0.60 for the district as recorded in 2019. The majority of the formal employment lies in the Tertiary industry, with 124 000 jobs. When including the informal, agricultural and domestic workers, we have a total number of 225 000 jobs in the area. Formal jobs make up 65.8% of all jobs in the Ngaka Modiri Molema District Municipality.

2013 2014 2015 2016 2017 Agriculture 222 779 255 025 256 085 272 330 288 846 Mining 702 290 738 530 916 796 936 494 1 030 916 Manufacturing 857 205 921 900 1 004 746 1 055 147 1 121 514 PROFILE: NGAKA MODIRI MOLEMA DISTRICT 17

Electricity 131 502 118 110 131 610 148 988 156 141 Construction 452 979 532 701 553 127 568 653 603 710 Trade 1 525 407 1 607 324 1 720 606 1 798 876 1 877 763 Transport 738 967 759 934 867 644 959 796 1 031 316 Finance 2 415 133 2 343 851 2 890 128 3 117 184 3 315 926 Community services 9 916 007 10 780 634 11 639 630 12 475 377 13 290 044 Total Industries 16 962 269 18 058 009 19 980 372 21 332 846 22 716 176

As evidenced from the table above, Ngaka Modiri Molema District Municipality has experienced an encouraging trend of positive total employment growth from 140 thousand to 171 thousand between 2013 and 2017. Employment by industry in the district has been remarkably increasing particularly in the agriculture, manufacturing, construction, trade, transport, finance and community services in 2017. Trade is largest employer creating 7 thousand jobs in 2017 followed by community services industry creating 6 thousand jobs while electricity industry contributed less employment for same period.

In 2018, Ngaka Modiri Molema District Municipality had an HDI of 0.581 compared to the North-West with a HDI of 0.625 and 0.658 of National Total as a whole. Seeing that South Africa recorded a higher HDI in 2018 when compared to Ngaka Modiri Molema District Municipality which translates to worse human development for Ngaka Modiri Molema District Municipality compared to South Africa.

2.4.3. Crime

For the period 2008/2009 to 2018/2019 overall crime has decrease at an average annual rate of 1.20% within the Ngaka Modiri Molema District Municipality. Violent crime decreased by 1.54% since 2008/2009, while property crimes increased by 1.00% between the 2008/2009 and 2018/2019 financial years. It is clear that all the crime is decreasing overtime for all the regions within North-West Province. Bojanala Platinum District Municipality has the second lowest overall crime index of 82.2 and the Ngaka Modiri Molema District Municipality has the lowest overall crime rate of 77.5.

18 PROFILE: NGAKA MODIRI MOLEMA DISTRICT

2.5. Education and Skills Profile A total of 469 000 individuals in Ngaka Modiri Molema District Municipality were considered functionally literate in 2018, while 162 000 people were considered to be illiterate. Expressed as a rate, this amounts to 74.38% of the population, which is an increase of 0.093 percentage points since 2008 (65.11%). The number of illiterate individuals decreased on average by -1.84% annually from 2008 to 2018, with the number of functional literate people increasing at 2.60% annually. Ngaka Modiri Molema District has 3 TVET colleges and 1 University.

3. DRIVERS OF THE ECONOMY 3.1. Structure of the Economy The economic drivers in the District includes Agriculture, Tourism (Heritage sites and Game farms), Mining Houses (Kalgold, Slurry, Sephaku, Lafarge, Majemantsho informal mining and Diamond informal mining). The Strategic Location of the District offers great opportunities towards the economic development of the District underpinned by various development corridors. The economic opportunities that lie within the district and have the potential to create much-needed jobs, reduce poverty and inequality. PROFILE: NGAKA MODIRI MOLEMA DISTRICT 19

GROSS VALUE ADDED (GVA) BY BROAD ECONOMIC SECTOR - NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY, 2018 [R BILLIONS, CURRENT PRICES]

Ngaka Modiri Ngaka Modiri Ngaka Modiri North-West National Total Molema as % of Molema as % Molema province of national

Agriculture 2.4 7.3 106.1 32.5% 2.2%

Mining 3.3 84.3 350.9 3.9% 0.9%

Manufacturing 2.6 13.2 572.9 19.7% 0.5%

Electricity 3.1 10.1 166.0 30.3% 1.8%

Construction 1.5 6.5 170.3 23.8% 0.9%

Trade 6.6 30.0 652.7 22.1% 1.0%

Transport 4.2 17.0 426.7 25.0% 1.0%

Finance 7.9 35.2 854.4 22.5% 0.9%

Community services 18.2 55.9 1,041.3 32.6% 1.7%

Total Industries 49.8 259.3 4,341.3 19.2% 1.1%

Source: IHS Markit Regional eXplorer version 1803

In 2018, the community services sector is the largest within Ngaka Modiri Molema District Municipality accounting for R 18.2 billion or 36.5% of the total GVA in the district municipality's economy. The sector that contributes the second most to the GVA of the Ngaka Modiri Molema District Municipality is the finance sector at 15.9%, followed by the trade sector with 13.3%. The sector that contributes the least to the economy of Ngaka Modiri Molema District Municipality is the construction sector with a contribution of R 1.53 billion or 3.08% of the total GVA.

The GDP of NMMD was at R57.6 billion (up from R26.6 billion in 2008), NMMD contributed 19.75 to the North West Province GDP of R291 billion in 2018 increasing in the share of North West from 19.10% in 2008. NMMD contributed 1.18% to the National GDP. The merchandise export from Ngaka Modiri Molema District Municipality amounts to R 1.55 billion and as a percentage of total national exports constitutes about 0.12%. The exports from Ngaka Modiri Molema District Municipality constitute 2.70% of total Ngaka Modiri Molema District Municipality's GDP. Merchandise imports of R 217 million constitute about 0.02% of the national imports. Total trade within Ngaka Modiri Molema is about 0.07% of total national trade. Ngaka 20 PROFILE: NGAKA MODIRI MOLEMA DISTRICT

Modiri Molema District Municipality had a positive trade balance in 2018 to the value of R 1.33 billion.

3.2. Primary Sector 3.2.1. Mining The primary sector in NMMD consists mainly of Agriculture, Tourism and Mining sectors. In 2017 the Agricultural sector experience the highest annual growth of 25.5% whereas the Mining sector reached its highest point of growth of 19.5% in 2015. The Agricultural and Mining sectors experienced the lowest growth of -17% and 14% respectively during 2015 and 2014. The sector growth forecast shows an increase from R30.68 billion in 2018 to R32.67 billion in 2023 which is an average annual growth of 1.27%. Economic drivers in NMMD includes Agriculture, Tourism (heritage sites, game farms), Mining houses (Kal gold, Slurry, Majemantsho informal mining, Sephaku, Larfage and Diamond informal mining).

3.3. Secondary Sector The secondary sectors in the NMMD are Manufacturing, Electricity and Construction sectors.

3.4. Tertiary Sector

The tertiary sector consists of four broad economic sectors namely the trade, transport, finance and the community services sector.

GROSS VALUE ADDED (GVA) BY TERTIARY SECTOR - NGAKA MODIRI MOLEMA, 2008-2018 [ANNUAL PERCENTAGE CHANGE]

PROFILE: NGAKA MODIRI MOLEMA DISTRICT 21

Gross value added (GVA) by tertiary sector Ngaka Modiri Molema, 2008-2018 10% 8% 6% 4% 2% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -2% -4% -6% -8% -10%

Trade Transport Finance Community services

Source: IHS Markit Regional eXplorer version 1803 The trade sector experienced the highest positive growth in 2008 with a growth rate of 3.7%. It is evident for the transport sector that the highest positive growth rate also existed in 2008 at 7.5% which is higher than that of the manufacturing sector. The finance sector experienced the highest growth rate in 2008 when it grew by 7.3% and recorded the lowest growth rate in 2009 at -0.5%. The Trade sector also had the lowest growth rate in 2009 at -7.4%. The community services sector, which largely consists of government, experienced its highest positive growth in 2008 with 6.3% and the lowest growth rate in 2009 with -0.5%.

4. SERVICE DELIVERY 4.1. Water and Sanitation 4.1.1. Access to Water The Ngaka Modiri Molema District uses the Local Municipalities as Water Services Providers (WSPs) for operation and maintenance of sewer treatment works and retail water reticulation systems in the urban towns of its jurisdiction. It also uses the services of Sedibeng Water as the bulk water supply WSP for the town of Mahikeng, Zeerust and the town.

The District can generally be described as water scarce area with most communities obtaining water supply from groundwater resources. The main source of surface water is Setumo Dam which supplies approximately 40% of the water needs of Mahikeng 22 PROFILE: NGAKA MODIRI MOLEMA DISTRICT and its immediate surrounding areas. The balance of the water is from groundwater with the primary source being the Grootpan/ Lichtenburg/ Grootfontein/ Zeerust (GLGZ) dolomitic formation, which presently supplies the balance of water to Mahikeng, as well as portions of Ditsobotla and Ramotshere Moiloa Local Municipalities.

HOUSEHOLDS BY TYPE OF WATER ACCESS - NGAKA MODIRI MOLEMA, NORTH-WEST AND NATIONAL TOTAL, 2018 [PERCENTAGE]

Households by level of access to Water Ngaka Modiri Molema, 2008-2018 100% No formal piped 90% water 80% 70% 60% Communal piped water: more 50% than 200m from 40% dwelling (Below RDP) 30% Communal piped 20% water: less than 200m from 10% dwelling (At 0% RDP-level) Ngaka Modiri Molema North-West National Total Source: IHS Markit Regional eXplorer version 1803

Ngaka Modiri Molema District Municipality had a total number of 64 500 (or 25.28%) households with piped water inside the dwelling, a total of 69 600 (27.31%) households had piped water inside the yard and a total number of 3 910 (1.53%) households had no formal piped water. Over time, from 2008 the number of households below the RDP-level were 55 600 within Ngaka Modiri Molema District Municipality, this decreased annually at -1.95% per annum to 45 700 in 2018.

4.1.2. Sanitation The large formal towns, as well as a number of institutions such as border posts, hospitals and prisons in the NMMDM are served by a total of 15 wastewater treatment works of one form or another, in various states of repair. The rural communities PROFILE: NGAKA MODIRI MOLEMA DISTRICT 23

however do not have any access to formal sanitation, and generally make use of unimproved pit latrines.

HOUSEHOLDS BY TYPE OF SANITATION - NGAKA MODIRI MOLEMA, NORTH-WEST AND NATIONAL TOTAL, 2018 [PERCENTAGE]

Households by type of Toilet Ngaka Modiri Molema, 2008-2018 100% No toilet 90%

80% Bucket system 70%

60% Pit toilet 50%

40% Ventilation 30% Improved Pit 20% (VIP) Flush toilet 10%

0% Ngaka Modiri North-West National Total Molema Source: IHS Markit Regional eXplorer version 1803 4.2. Waste Management Ngaka Modiri Molema District Municipality had a total number of 106 000 (41.50%) households which had their refuse removed weekly by the authority, a total of 3 680 (1.45%) households had their refuse removed less often than weekly by the authority and a total number of 131 000 (51.32%) households which had to remove their refuse personally (own dump). 24 PROFILE: NGAKA MODIRI MOLEMA DISTRICT

Households by access to refuse removal Ngaka Modiri Molema, 2008-2018 100% No refuse 90% removal

80% Personal 70% removal (own dump) 60% Removed by 50% community members 40% Removed less 30% often than weekly by 20% authority Removed 10% weekly by authority 0% Ngaka Modiri North-West National Total Molema Source: IHS Markit Regional eXplorer version 1803 Overtime, from 2008 the households with no formal refuse removal in Ngaka Modiri Molema District Municipality was 144 000, this increased to 148 221 in 2012 and declined to 139 330 in 2016 followed by an increase to 145 483 in 2018.

4.3. Roads and Transport Ngaka Modiri Molema has a 3 688 km of gravel road and 1 548 of surfaced roads.

4.4. Electricity Households are distributed into 3 electricity usage categories: Households using electricity for cooking, Households using electricity for heating, households using PROFILE: NGAKA MODIRI MOLEMA DISTRICT 25

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).

HOUSEHOLDS BY TYPE OF ELECTRICAL CONNECTION - NGAKA MODIRI MOLEMA, NORTH- WEST AND NATIONAL TOTAL, 2018 [PERCENTAGE] Households by electricity usage Ngaka Modiri Molema, 2008-2018 100%

90% Not using 80% electricity

70%

60% Electricity for 50% lighting and other purposes 40%

30%

20% Electricity for lighting only 10%

0% Ngaka Modiri North-West National Total Molema Source: IHS Markit Regional eXplorer version 1803 Ngaka Modiri Molema District Municipality had a total number of 15 100 (5.92%) households with electricity for lighting only, a total of 211 000 (82.85%) households had electricity for lighting and other purposes and a total number of 28 600 (11.23%) households did not use electricity.

The region within Ngaka Modiri Molema with the highest number of households with electricity for lighting and other purposes is Mahikeng Local Municipality with 82 800 or a share of 39.21% of the households with electricity for lighting and other purposes within Ngaka Modiri Molema District Municipality. The Region with the lowest number of households with electricity for lighting and other purposes is Ratlou Local Municipality with a total of 22 600 or a share of 10.67% of the total households with electricity for lighting and other purposes within Ngaka Modiri Molema District Municipality. Over time, from 2008 the households without an electrical connection in 26 PROFILE: NGAKA MODIRI MOLEMA DISTRICT

Ngaka Modiri Molema District Municipality was 44 900, this decreased annually at - 4.39% per annum to 28 600 in 2018.

5. GOVERNANCE AND MANAGEMENT 5.1. Municipality Performance The Ngaka Modiri Molema District IGR Forum is non-functional and has weakened its regional planning capabilities, and the coordination of the provision of water services in particular. There have been no service level agreements between the District as water services authority and local municipalities and/or Botshelo Water as water services provider (in terms of bulk water; distribution; operations and maintenance; provision of free basic services).

The poor relations also relate to the perceived lack of involvement and consultation with local municipalities on prioritisation, identification, and implementation of projects. Due to the non-functionality of the IGR Forum, there was generally no coordination and collaboration between the District and its family of locals to improve service delivery. Efforts were made on numerous occasions by the Department to resuscitate the IGR Forum, but attendance by the District’s administrative leadership and local municipalities was poor.

NMMDM obtained adverse audit opinion in 2018/19 and disclaimer audit opinion for the past 2 years, Ditsobotla obtained a disclaimer audit opinion for the past 3 years of 2016/17 to 2018/19. Ratlou LM regressed to disclaimer in 2018/19 and had qualified audit opinion for the past 2 years, Tswaing has remained at a qualified audit opinion for the past 3 years of 2016/17 to 2018/19. Mafikeng and Ramotshere obtained a disclaimer audit opinion for the past 2 years and qualified audit opinion in 2016/17. The district and its locals largely depend on consultants to compile the Annual Financial Statements.

A total of R415 million was returned to treasury from the Municipalities allocated budgets. Of the total budget returned NMMDM’s balance was R258 million, R48million for Mahikeng LM, Ratlou LM R29million, Tswaing LM R20.5million Ditsobotla LM R32million and Ramotshere Moiloa LM R27million. During the Financial year 2017/18, Tswaing LM, Mafikeng LM, Ditsobotla LM, Ramotshere Moiloa LM, and NMMDM were PROFILE: NGAKA MODIRI MOLEMA DISTRICT 27

insolvent whereas Ratlou LM had short and medium term viability. Currently the District is under Section 137 of MFMA in terms of Financial Recovery Plan which was invoked by the MEC in 2018.

All municipalities within the district with the exception of Ratlou adopted unfunded budgets which posed a risk to meet financial obligations and had to be corrected during special adjustment budget. Repetitive findings for NMMDM include among others: Insufficient appropriate audit evidence or none identified items for the year for PPE, VAT, Inventories, provision of retail water services and receivables from exchange transactions, Unspent conditional grants, and revenue from non-exchange transactions, general expenditure, contracted services, unauthorised and irregular expenditure and bulk services. The District need to look into mechanisms that will fast track these repetitive Audit findings working towards improving future audit outcomes.

5.2. Municipal Capacity The District largely depend on consultants to compile annual financial statements. The challenge faced by the district and LMs is that they mostly depend on the equitable share, and as such, revenue generation remains a challenge informed by the failure to collect for services rendered in the case of local municipalities. The table below depicts vacancy rates per directorate in the Ngaka Modiri Molema Municipalities.

Directorate No. of vacant Municipal Name posts Municipal Manager Mafikeng Municipality 26 Director: LED Mafikeng Municipality 27 Director: Community services Ditsobotla Municipality 28 Director: Planning & Development Ditsobotla Municipality 29 Director: Technical Services Ditsobotla Municipality 30 Director: Corporate Services Ditsobotla Municipality 31

The table below provides an overview of staffing levels in the municipality, including total staff currently employed, approved positions and funded vacancies. The table below provides an overview of staffing levels in the municipality, including total staff currently employed, approved positions and funded vacancies. For example, in this 28 PROFILE: NGAKA MODIRI MOLEMA DISTRICT municipality, 72, 38% of staff are permanent employees. There is a vacancy rate of 0, 07%.

STAFFING LEVELS: NMMDM DC38 Total municipal staff currently employed 992 Total permanent currently employed 718 Total temporary staff currently employed 309 Total approved positions 1428 Total funded vacancies 1 Percentage of funded vacancies 0,07

The qualifications of staff (from technical to postgraduate) are detailed below. 4,13% of staff have some form of tertiary qualification.

GENERAL QUALIFICATIONS: NMMDM DC38 Number of staff with postgraduate degrees 14 Percentage of staff with postgraduate degrees 1,41 Number of staff with Bachelors degrees 23 Percentage of staff with Bachelors degrees 2,32 Number of staff with technical qualifications 4 Percentage of staff with technical qualifications 0,4

5.3. Traditional Affairs Governance In the Ngaka Modiri Molema District Municipality traditional leaders have been identified for participation in the Municipal Councils. The identified traditional leaders do participate in municipal councils. There is a system of rotation of participating traditional leaders in the Ngaka Modiri District Municipality, and every five (5) years new members are selected. The identified traditional leaders are allowed an opportunity to address the council. Traditional leader’s participation is not gazetted. Participating traditional leaders receive an allowance and are reimbursed for any out of pocket expenses.

The largely rural district is also made-up of 103 wards, 8 towns, 21 townships, 198 villages. In addition, the district has 22 Traditional Leaders with about 90% of the district’s population living in traditional authority areas. Traditional Leaders participate in municipalities and they receive out of pocket expenses and paid allowances as follows: PROFILE: NGAKA MODIRI MOLEMA DISTRICT 29

District/Local Municipality Number Of Identified Traditional Leaders Participation In Municipal Councils Ngaka Modiri Molema 5 Ratlou Local 4 Tswaing Local 2 Mahikeng Local 2 Ditsobotla Local 1 Ramotshere Moiloa Local 3

In the district there are no disputes in terms of ownership of land by Traditional Leaders. The table below outlines the number of Senior Traditional Leaders, Headman/Headwomen:

DISTRICT LOCALS SENIOR HEADMAN/ TRADITIONAL HEADWOMEN LEADER

Ngaka Modiri Molema Ratlou 5 20 Tswaing 2 6

Mafikeng 4 9

Ditsobotla 3 0

Ramotshere 7 4

The Traditional and Khoi-San Leadership Act, 2019 (Act No. 3 of 2019), which was published in the Government Gazette on 28 November 2019, is of historic value as it is the first legislation that provides for the statutory recognition of the Khoi-San communities and leaders, provided they meet the criteria contained in the Act. However, the Act has not yet commenced, because its commencement date has not yet been proclaimed.

Once the Act commences, a Commission on Khoi-San Matters will be established to receive and investigate applications for recognition of Khoi-San communities and leaders. The Commission will make recommendations to the Minister in this regard and the Minister will have the power to recognise such communities and leaders. There is thus currently no legally recognised Khoi-San communities or leaders in South Africa. The Act makes provision for two Khoi-San leadership positions namely senior Khoi-San leaders and branch heads. The recognised senior Khoi-San leaders will have personal jurisdiction over their communities.

30 PROFILE: NGAKA MODIRI MOLEMA DISTRICT

It should be noted that the legal existence of Traditional leadership structures as envisaged by the Traditional Leadership Framework Act has expired. These structures will be reconstituted when the Traditional and Khoi-San Leadership Act comes to effect.

6. PROJECTS TO DIVERSIFY AND GROW PEOPLE AND THE ECONOMY 6.1. Spatial Development Mahikeng is the largest centre in the district and is anticipating growth in importance as the primary economic core through the Mahikeng Renewal, Rebranding Repositioning Spatial Planning is not a shared function between Ngaka Modiri Molema District and its Local Municipalities, however the District’s Town Planning unit plays an active critical role as and when requested at the five local municipalities.

The District is an important transport corridor (N4 and R508) which are the getaway to Botswana and possess tourism infrastructure that is underutilized. Most of the secondary rural settlements and high agricultural potential areas in the district have strong functional links with Mahikeng and can, to some extent, be considered extensions of the district’s economic core.link: Tshwane – Brits – Rustenburg – Elliesrus. Further Bojanala District houses the Pilanesberg International Airport (ACSA) and one smaller airfield in Rustenburg.

6.2. Environmental forecast Disaster Management structures are in place but not administratively supported in all areas. Challenges common to the district and local municipalities include among others: • Lack or poor implementation of the requirements of the Disaster Management Act particularly with five municipalities except for Mafikeng LM; • Lack of disaster response vehicles and control room attendants or dispatchers for 24/7 services; • Lack of support for DM IGR structures and poor stakeholder participation in IGR structures; and • Insufficient resources for disaster risk management; PROFILE: NGAKA MODIRI MOLEMA DISTRICT 31

7. KEY RECOMMENDATIONS 7.1. Prioritise Integrated Development Plan Catalytic Projects

The proposed spatial distribution of catalytic programmes and Projects need to be focussed on during the coming 5 years are provided for each municipality. • Road links that need to be planned or constructed to support the development of nodes and corridors and movement of people and goods through the province. • Rail links (passenger and freight) that need to be planned or constructed to enhance the mobility of people and goods within the province. The corridor that open Africa tourist route, the Segarona Heritage Experience, which was launched in 2012. This new route runs between Pilanesberg and Madikwe, and includes the Bakgatla tribal lands, and the towns of Derdepoort, Zeerust and Groot Marico (and many others). The rural villages connected by this route offer insight into the struggle history of South Africa and the cultural heritage of the many African clans who still live in the area. The proposed Marico Biosphere Reserve will enhance the economy through job creation, ecotourism and sustainable development.

32 PROFILE: NGAKA MODIRI MOLEMA DISTRICT

RICT/