01/52 OVERBERG District Municipality . CONTENT 1. Executive Summary .......................................................................................... 4 2. Introduction: Brief Overview ............................................................................ 4 2.1 Location.................................................................................................................... 4 2.2 Historical Perspective ............................................................................................... 5 2.3 Spatial Integration .................................................................................................... 5 2.4 Land Ownership……………………………………………………………………………. 3. Social Development Profile .............................................................................. 5 3.1 Key Social Demographics ........................................................................................ 5 3.1.1 Population…………………………………………………………………………………. 3.1.2 Gender, Age and Race…………………………………………………………………... 3.1.3 Households………………………………………………………………………………… 3.2 Health Profile ............................................................................................................ 7 3.3 COVID-19 ................................................................................................................. 7 3.4 Poverty Dimensions.................................................................................................. 8 3.4.1 Distribution ............................................................................................................ 8 3.4.2 Inequality ............................................................................................................... 9 3.4.3 Employment/Unemployment .................................................................................. 9 3.4.4 Crime..................................................................................................................... 9 3.5 Education and Skills Profile .................................................................................... 10 4. Drivers of the Economy .................................................................................. 11 4.1. Structure of the Economy .................................................................................... 11 4.2. Primary sector ..................................................................................................... 11 4.3. Secondary sector ................................................................................................ 11 4.4. Tertiary sector ..................................................................................................... 12 4.5. Informal Economy ............................................................................................... 12 4.6. Economic Growth Forecast ................................................................................. 13 5. Service Delivery ............................................................................................... 13 5.1. Water and Sanitation ........................................................................................... 13 5.2. Human Settlements ............................................................................................. 14 5.3. Electricity ............................................................................................................ 14 5.4. Waste Management ............................................................................................ 15 5.5. Transport ............................................................................................................ 15 6. Governance and Management ....................................................................... 16 6.1 Municipal Performance ........................................................................................... 16 6.2 Municipal Capacity ................................................................................................. 16 6.3 Traditional Leadership……………………………………………………………………. 7. PROJECTS TO DIVERSIFY AND GROW PEOPLE AND THE ECONOMY .... 17 7.1 Spatial Development .............................................................................................. 17 7.2 Ecological Potential and Biodiversity ...................................................................... 17 7.3 Social Development Projects .................................................................................. 17 7.4 Economic and Infrastructure Projects ..................................................................... 18 8. KEY RECOMMENDATIONS ............................................................................. 18 Executive Summary The Overberg District Municipality is a District Municipality that governs the Overberg region in the Western Cape province of South Africa. It is divided into four local municipalities, namely Theewaterskloof, Overstrand, Swellendam, and Cape Agulhas and includes the major towns of Grabouw, Caledon, Hermanus, Bredasdorp and Swellendam. The municipal headquarters are located at Bredasdorp in the southern part of the district. With 300 000 people, the Overberg District Municipality housed 0.5% of South Africa's total population in 2019. Between 2009 and 2019 the population growth averaged 2.06% per annum which is slightly higher than the growth rate of South Africa as a whole (1.61%). Compared to Western Cape's average annual growth rate (2.25%), the growth rate in Overberg's population at 2.06% was very similar than that of the province. The health profile shows that TB and HIV and Aids are amongst the leading causes of death in the age groups of 25-64 and 5-24 years. Although the Overberg District has the second lowest Covid-19 infection rate of the districts in the Western Cape, the number of people with HIV in the District, as one of the comorbidities of the virus, may exacerbate the negative impact of the disease. In 2019, there were 150 000 people living in poverty, using the upper poverty line definition, across Overberg District Municipality - this is 34.12% higher than the 112 000 in 2009. The percentage of people living in poverty has increased from 45.57% in 2009 to 49.84% in 2019, which indicates a increase of -4.27 percentage points. The unemployment rate in the District was 21,1% in 2019, which is higher than that of the Western Cape of 20,5% (but better than the rate in the country of 28,2% in 2019). With regard to crime statistics, drug-related crime, in particular, shows an increase in the District area, which is above the Province’s rate. The literacy rate in the District is lower than that of the Province. The longer-term average economic growth rate in the District from 2009 to 2019, was 1,17%, which is slightly lower than that of South Africa (1,68%). In 2019, the Community Services sector, which includes the government services, is the largest contributor to the District economy followed by the Trade and Manufacturing sectors respectively. Challenges facing the economy include unemployment that is largely dependent on agriculture, limited available natural resources, relative high skills shortages and limited access for marginalized communities to enter the mainstream economic opportunities. The Overberg District Municipality’s IDP indicates that it identified poverty alleviation as one of the major challenges facing the municipality and with this the need for economic development. In terms of service delivery, there is still sanitation backlogs (Pit toilet, Bucket system and No toilet), particularly in Theewaterskloof local municipality. With regard to housing, Theewaterskloof and Overstrand local municipalities have a high proportion of informal dwellings. In Theewaterskloof there is also a proportion of households with no access to electricity. Although the District Municipality received clean audits for the last four years, the NT highlights certain areas where the financial management performance has been below the norm. For example, with regard spending of the capital budget in the 2017/18 FY, and areas such as the “Current Ratio”, “Liquidity ratio” and “Current Debtors Collection rate” in the 2018/19 FY. 2. Introduction: Brief Overview 2.1 Location The Overberg municipal area covers 12,241 square kilometres lying to the south-east of Cape Town. It stretches from the Hottentots-Holland mountains in the west to the Breede River mouth in the east, and as far as the Riviersonderend mountains in the north. It includes Cape Agulhas, the southernmost point in Africa, and has coastline on both the Atlantic Ocean and the Indian Ocean. The largest town is Grabouw in the Elgin valley adjacent to the Hottentots-Holland on the north-western edge of the district. It borders on the City of Cape Town to the west, the Cape Winelands District to the north, and the Garden Route District to the east. 2.2 Historical perspective The name, derived from Over 't Berg, means "over the (Hottentots-Holland) mountain" and is a reference to the region's location relative to Cape Town. The Overberg has always been considered as the breadbasket of the Cape and is largely given to grain farming, mainly wheat. The wheat fields are a major breeding ground for South Africa's national bird, the blue crane. Another important food farmed in the Overberg is fruit, with Grabouw being the second largest supplier of fruit in South Africa. Nestled in the Overberg, one can find the Kogelberg Biosphere Reserve (recognised and registered with UNESCO) populated with a large diversity of flowering plants