AMAJUBA DISTRICT MUNICIPALITY: REVIEW OF THE LED STRATEGY (NOVEMBER 2011) NOVEMBER 2010 AMAJUBA DISTRICT MUNICIPALITY NOVEMBER 2010 REVIEW OF THE LED STRATEGY PHASE 3 & 4 – STRATEGIC DEVELOPMENT FRAMEWORK AND IMPLEMENTATION FRAMEWORK FIINAL REPORT FOR COMMENTS PREPARED FOR: PREPARED BY: PREPARED FOR: AMAJUBA DISTRICT MUNICIPALITY UNIT B9356 AMAJUBA BUILDING MAIN STREET SECTION 1 MADADENI NEWCASTLE PHASE 3 & 4 – STRATEGIC FRAMEWORK & IMPLEMENTATION FRAMEWORK 1 | P a g e AMAJUBA DISTRICT MUNICIPALITY: REVIEW OF THE LED STRATEGY (NOVEMBER 2011) Table of Contents SECTION 1 INTRODUCTION .............................................................................................. 4 1.1 BACKGROUND AND PURPOSE ................................................................................. 4 1.2 OBJECTIVES OF THE STUDY ................................................................................... 5 1.3 OUTCOMES OF THE REVIEW ................................................................................... 5 1.4 METHODOLOGY ..................................................................................................... 5 1.5 SOURCES OF INFORMATION ................................................................................... 6 1.6 REPORT OUTLINE .................................................................................................. 6 SECTION 2 SUMMARY OF THE SITUATIONAL ANALYSIS ....................................................... 7 2.1 SOCIO-ECONOMIC PROFILE AND ANALYSIS ............................................................. 7 2.2 SECTORAL ANALYSIS ............................................................................................. 8 2.2.1 AGRICULTURE ................................................................................................... 8 2.2.2 MINING .......................................................................................................... 10 2.2.3 MANUFACTURING ............................................................................................ 11 2.2.4 TOURISM ........................................................................................................ 12 2.2.5 TERTIARY SERVICES (INCL GOVERNMENT SERVICES) .......................................... 14 2.2.6 INFORMAL TRADE ............................................................................................ 14 2.3 INSTITUTIONAL ANALYSIS ................................................................................... 16 2.3.1 STAKEHOLDER COMPOSITION ........................................................................... 16 2.3.2 PARTICIPATION OF STAKEHOLDERS ................................................................... 16 2.3.3 EVALUATION ................................................................................................... 16 2.3.4 RESOURCE MOBILIZATION ................................................................................ 17 2.4 SWOT AND GAP ANALYSIS ................................................................................... 17 2.4.1 SWOT ANALYSIS .............................................................................................. 17 2.4.2 GAP ANALYSIS................................................................................................. 18 2.5 CONCLUSION. ..................................................................................................... 18 SECTION 3 STRATEGIC FRAMEWORK .............................................................................. 20 3.1 VISION & MISSION .............................................................................................. 20 VISION ...................................................................................................................... 20 MISSION .................................................................................................................... 20 3.2 STRATEGIC THRUSTS .......................................................................................... 20 STRATEGIC THRUST 1 – ACHIEVING INSTITUTIONAL COHERENCE .................................... 21 STRATEGIC THRUST 2 – AGRICULTURAL DEVELOPMENT AND DIVERSIFICATION ................ 22 PHASE 3 & 4 – STRATEGIC FRAMEWORK & IMPLEMENTATION FRAMEWORK 2 | P a g e AMAJUBA DISTRICT MUNICIPALITY: REVIEW OF THE LED STRATEGY (NOVEMBER 2011) STRATEGIC THRUST 3 – ENHANCEMENT OF TRADE AND INDUSTRY .................................. 23 STRATEGIC THRUST 4 – FURTHERING TOURISM DEVELOPMENT ....................................... 24 STRATEGIC THRUST 5 – EXPANSION OF INFRASTRUCTURAL CAPACITY ............................. 25 STRATEGIC THRUST 6 – REJUVENATION OF MINING ACTIVITY ......................................... 26 STRATEGIC THRUST 7 – ENHANCING SMME AND COOPERATIVE DEVELOPMENT ................. 27 SECTION 4 DATABASE OF PROJECTS ............................................................................... 31 SECTION 5 IMPLEMENTATION FRAMEWORK ..................................................................... 37 5.1 INSTITUTIONAL FRAMEWORK ............................................................................... 37 5.1.1 AMAJUBA BOARD OF BUSINESS LEADERS ........................................................... 37 5.1.2 THE PROGRAMME MANAGEMENT UNIT. ............................................................... 38 5.1.3 AMAJUBA FORUM FOR LOCAL ECONOMIC DEVELOPMENT ...................................... 39 5.1.4 AMAJUBA WORKING GROUP .............................................................................. 39 5.2 MONITORING, EVALUATION AND REPORTING ........................................................ 40 SECTION 6 CONCLUSION ............................................................................................... 46 PHASE 3 & 4 – STRATEGIC FRAMEWORK & IMPLEMENTATION FRAMEWORK 3 | P a g e AMAJUBA DISTRICT MUNICIPALITY: REVIEW OF THE LED STRATEGY (NOVEMBER 2011) SECTION 1 INTRODUCTION 1.1 BACKGROUND AND PURPOSE The Amajuba District Municipality has commissioned Urban-Econ KZN (Pty) LTD and Sabalala Consulting Africa (Pty) LTD to undertake a review of the Local Economic Development Strategy for the district. The Amajuba Municipality is located in the north-western corner of the Province of KwaZulu-Natal (KZN), and comprises three local municipalities, namely Newcastle, Emadlangeni, and Dannhauser. The map below displays the location of the district and local municipalities in relation to the rest of KZN: Map 1: Family of Municipalities in the Provincial Context The alternative route from the east coast to Gauteng, the N11, passes through Amajuba. The route links the district to both the major port of Durban and the industrial complex of Gauteng, and the main rail line from the Durban harbour to Gauteng also travels through Amajuba. The R34 bisects the district from east to west and provides a linkage from the port city of Richards Bay to the hinterland. Therefore the district is well positioned to take advantage of passing trade. Amajuba is 6 910 km2 in size with Emadlangeni (previously Utrecht) occupying the largest area of 3 539 km2, Newcastle some 1855 km2 and Dannhauser some 1 516 km². The district undertook the development of an LED strategy in 2004, which formed part of the IDP process. The aim of the LED strategy was to provide a framework which would assist by integrating and coordinating the activities and decisions made by development agencies in the district. PHASE 3 & 4 – STRATEGIC FRAMEWORK & IMPLEMENTATION FRAMEWORK 4 | P a g e AMAJUBA DISTRICT MUNICIPALITY: REVIEW OF THE LED STRATEGY (NOVEMBER 2011) In the years since the previous LED strategy was developed there have been a number of significant national and global economic events, which have had a substantial impact on the economic environment in South Africa, and particularly KZN. The purpose of this LED review is therefore to provide an up-to-date economic plan for the district which will assist in identifying opportunities and guiding the district in achieving its economic development goals and objectives. 1.2 OBJECTIVES OF THE STUDY The objectives of the LED review are: To undertake a detailed economic analysis in order to identify appropriate market interventions which will assist in enhancing the economic environment and lead to local economic development within the district; To develop and implementable strategic framework to guide and support sustainable economic development; To formulate a database of current and future projects and economic opportunities within the district; To formulate a matrix to guide the identification and prioritisation of strategic projects for investigation and implementation. This report is a compilation of Phases 3 and 4 of the study, and relates to the Strategic Development Framework and development of a Database of Business Opportunities. 1.3 OUTCOMES OF THE REVIEW In accordance with the Terms of Reference, the following outcomes are anticipated: State of the current economic situation and economic infrastructure; Detailed socio-economic analysis; Detailed SWOT and GAP analysis; A report which provides the district with the tools and strategies to guide future economic development initiatives and a matrix to assist in identifying and prioritising the implementation of future economic development opportunities and projects. 1.4 METHODOLOGY The LED review assessment will utilise the following methodologies: Review and analysis of existing desktop information (statistical databases; existing plans and strategies of the municipality; national and