Ditsobotla Local Municipality Local Economic Development Strategy LED Strategy Document Adopted by Council on 29th January 2016 Date of Publication: 12th February 2016 TABLE OF CONTENT EXECUTIVE SUMMARY ...............................................................................................................4 1.1 Policy framework.........................................................................................................4 1.2 Macro economic analysis ............................................................................................4 1.3 Local sectoral profile....................................................................................................4 1.4 LED framework ............................................................................................................4 1.5 Implementation plan ...................................................................................................5 1.6 Investment incentives..................................................................................................5 1.7 Conclusion and way forward .......................................................................................6 1 INTRODUCTION............................................................................................................7 1.1 Background..................................................................................................................7 1.2 Methodology ...............................................................................................................7 1.3 Study Area....................................................................................................................8 1.4 Structure of Remainder of Report...............................................................................9 2 POLICY FRAMEWORK.................................................................................................10 2.1 Policies and Legislation..............................................................................................10 2.2 Implications for Ditsobotla ........................................................................................11 2.3 Conclusion..................................................................................................................12 3 MACRO ECONOMIC PROFILE.....................................................................................13 3.1 Socio-Economic Profile ..............................................................................................13 3.2 Provincial and Regional Economic Profile .................................................................15 4 LOCAL SECTORAL ANALYSIS.......................................................................................19 4.1 Analysis of the Agriculture Sector .............................................................................19 4.2 Analysis of the Mining Sector ....................................................................................21 4.3 Analysis of the Manufacturing Sector .......................................................................23 4.4 Analysis of the Construction Sector...........................................................................25 4.5 Trade Sector Analysis.................................................................................................26 Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 2 4.6 Transport Sector ........................................................................................................28 4.7 Development constraints and strengths ...................................................................28 5 LED FRAMEWORK ......................................................................................................32 5.1 Strategic Path.............................................................................................................32 5.2 Led Framework ..........................................................................................................33 6 LED IMPLEMENTATION PLAN ....................................................................................45 6.1 Institutional Thrust: Capacity, Partnerships and Human Resources Development Building..............................................................................45 6.2 Institutional Framework ............................................................................................45 6.3 Implementation Guidelines for Priority Focus Areas ................................................57 6.4 Summary of costs and budget roll out for proposed activities .................................60 6.5 Monitoring and Evaluation Matrix ............................................................................62 7 INCENTIVE PLAN ........................................................................................................65 7.1 Introduction and Background to Incentives ..............................................................65 7.2 Legal Considerations..................................................................................................65 7.3 Background to National Investment Incentives ........................................................67 7.4 Local Investment Environment..................................................................................67 7.5 Potential Investment Incentives for Ditsobotla Local Municipality ..........................69 8 Projects Identified by Communitues .........................................................................72 9 CONCLUSION AND WAY FORWARD ..........................................................................84 Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 3 EXECUTIVE SUMMARY This Local Economic Development (LED) Strategy is formulated by KPA3-Local Economic Development cc for the purpose of providing a strategic direction to guide the Ditsobotla Local Municipality in its actions and efforts to lead the local municipality towards achieving LED within the municipal area. The methodology followed in developing the strategy consists of six interrelated phases, namely: 1: Organising the effort, 2: Local economy and investment environment assessment, 3: LED workshops, 4: Local economic strategy, 5: LED implementation plan, and 6: Incentive plan. The LED strategy and incentive plan is structured into eight sections, namely: 1: Introduction, 2: Policy framework, 3: Macro economic analysis, 4: Local sectoral profile, 5: LED framework, 6: Implementation Plan, 7: Investment incentives and 8: conclusion and way forward. 1.1 Policy framework The LED strategy takes into consideration the priorities and concerns identified in the legislation, policies and strategies at National, Provincial, District and Local level to ensure a prosperous region that can serve the needs of the community. 1.2 Macro-economic analysis The macro economic analysis assesses the socio-economic and macro and local economic profile of the Local Municipality in relation to the District, Provincial and National context with regards to the critical areas for LED. The critical areas of analysis includes identifying the main issues and concerns facing local communities and businesses, the manifestation of poverty in the area, the employment structure, analysis of the first and second economies, gap and opportunity analysis with a perspective on what interventions are required to unlock economic potential of Ditsobotla Local Municipality, etc. 1.3 Local sectoral profile The section analysis the contribution to the economy from each of the economic sectors. Within each sector, an analysis in terms of an overview of the sector, products produced within each sector, existing development initiatives, backward and forward linkages in the economy and economic gaps and opportunities is provided. The last part of the section consists of a summary of the main weaknesses/threats and strengths and opportunities facing the local economy. This and the previous section form the basis of identifying the blockages to and opportunities for development that are addressed in the LED development framework so that an appropriate development path can be determined. 1.4 LED framework This Section provides the LED vision for the municipal area, the identification of LED goals and objectives to address the economic challenges facing the municipal area. To enable the LED Ditsobotla Local Municipality – Adopted LED Strategy Document Page | 4 unit and other role-players and stakeholders to facilitate local economic development in a coordinated and structured manner is also provides a detailed LED framework. The technical LED Thrusts and Programmes of the framework are as follows: LED THRUSTS: 1: Municipal’s 2: SMME and 3: Agricultural 4: Maximise and enhance economic governance community business beneficiation and value- benefits from strategic processes improve support chain development location LED PROGRAMMES: Municipal process Social capital renewal Agro-processing and Support large anchor redesign initiatives and community value-adding initiatives and develop development initiatives spin-off opportunities Red tape reduction SMME and Self-sustaining and Mining exploration, including review of by- entrepreneurial niche-produce processing, and district- laws development and development wide support support Review of Skills development and Farmer support, Locality Development Procurement Process mentorship training, and inputs & through economic services development infrastructure development