OR Tambo Eastern Cape - Business Trust

Nodal Economic Profiling Project

OR Tambo Eastern Cape

2UUP-WRD-OR Tambo Profile-301106-IS

Nodal Economic Profiling Project Business Trust and dplg, 2007

OR Tambo

Context

In 2001, State President Thabo Mbeki announced an initiative to address underdevelopment in the most severely impoverished rural and urban areas (“poverty nodes”) in South Africa, which house around ten million people.

In 2001, State President Thabo Mbeki announced an initiative to address underdevelopment in the most severely impoverished rural and urban areas (“poverty nodes”) in South Africa, which house around ten million people.

The Urban Renewal Programme (urp) and the Integrated Sustainable Rural Development Programme (isrdp) were created in 2001 to address development in these areas. These initiatives are housed in the Department of Provincial and Local Government (dplg).

The Urban Renewal Programme (urp) and the Integrated Sustainable Rural Development Programme (isrdp) were created in 2001 to address development in these areas. These initiatives are housed in the Department of Provincial and Local Government (dplg).

Bushbuckridge

Maruleng

Sekhukhune

Alexandra

Maluti-a-Phofung

Galeshewe

Kgalagadi

Central Karoo

KhayelitshaMitchell’s Plain

MotherwellMdantsane

Chris Hani

Ukhahlamba

OR Tambo

Alfred NzoUgu

Umkhanyakude

Zululand

Umzinyathi

I-N-KUmzimkhulu



OR Tambo

OR Tambo poverty node

z Research process

z Overview

z Economy

– Overview

– Selected sector: Agriculture

– Selected sector: Tourism

z Investment opportunities

z Summary

z Appendix

� Activities

� Documents

� People



OR TamboResearch processSummary of what we have done

ActivitiesActivitiesActivities DocumentsDocumentsDocuments PeoplePeoplePeople

z Desk research

z Two visits to node

– 24-28 July 2006, 31 July-3 August 2006

– understanding of potential for economic growth, specific opportunities for investments

– visits to potential economic growth initiatives across the tourism and agriculture sectors

z Thirty-one different types of documents – five Integrated

Development Plan (IDP) review documents

– ten Local Economic Development (LED) documents

– seven business plans/feasibility studies/proposals

– one economic profile of OR Tambo

– six documents regarding economic sectors

– two documents with listed projects

z Some of them available electronically

z Meetings with government / public sector and private sector / local people

– 13 meetings with district and local municipalities

– seven meetings with SMMEs, big businesses, independent consultants, local people



OR Tambo


z Research process

z Overview

z Economy

– Overview




z Summary

z Appendix

� Introduction

� Key data points

� Current action



OR Tambo

Overview

SnapshotSnapshot

Area summaryArea summary

Key challengesKey challenges DemographyDemography

Income and employmentIncome and employment

HealthHealth

Development scorecardDevelopment scorecard

GovernanceGovernance

IDP assessmentIDP assessment

EducationEducation

IntroductionIntroductionIntroduction Key data pointsKey data pointsKey data points Current actionCurrent actionCurrent action

Introduces the node;summarises key issues

Lists pertinent acts and figures

Describes current interventions

GeographyGeography

Spatial developmentSpatial development

Development projectsDevelopment projects

Local people portraitLocal people portrait



OR TamboIntroductionSnapshot

Key information

Population: 2001 1 740 664

Area 15 535 km2

Population density: 2001 107.92 / km2

Estimated GDP: 2004 R 6.84 billion

Province Eastern Cape

Main town / city Mthatha

Historical overviewHistorical overviewHistorical overview

� A major part of the former Transkei is situated in OR Tambo

– The Transkei was one of eight black homelands founded in 1959 by the apartheid regime in order to ethnically divide the people of South Africa

� In the democratisation process in 1994 the Transkei became part of South Africa

� Nelson Mandela, South Africa's first democratic president, was born in the Transkei in 1918, and still has a home in Qunu

� The region is named after Oliver Tambo who was an anti-apartheid politician and central figure of the African National Congress (ANC). He was born in Mbizana in 1917 and became General Secretary of the ANC in 1955

� A major part of the former Transkei is situated in OR Tambo

– The Transkei was one of eight black homelands founded in 1959 by the apartheid regime in order to ethnically divide the people of South Africa

� In the democratisation process in 1994 the Transkei became part of South Africa

� Nelson Mandela, South Africa's first democratic president, was born in the Transkei in 1918, and still has a home in Qunu

� The region is named after Oliver Tambo who was an anti-apartheid politician and central figure of the African National Congress (ANC). He was born in Mbizana in 1917 and became General Secretary of the ANC in 1955

Source: Stats SA Census 2001, Eastern Cape Tourism, Wikipedia

OR TamboOR OR TamboTambo



OR TamboIntroduction Area summary – OR Tambo

z A very densely populated rural region covering most of the former Transkei

z The district municipality (DM) is divided into seven local municipalities (LM)

z Mthatha is the largest city and the commercial centre of the region

z Beautiful and untouched Wild Coast extending for 120 km

z Coastal climate with 25% of all the rainfall in South Africa

z Home of the great freedom fighters, Nelson Mandela and Oliver Tambo

z Very few commercial farmers

z Potential for forestry around Mthatha and in Pondoland

z A very densely populated rural region covering most of the former Transkei

z The district municipality (DM) is divided into seven local municipalities (LM)

z Mthatha is the largest city and the commercial centre of the region

z Beautiful and untouched Wild Coast extending for 120 km

z Coastal climate with 25% of all the rainfall in South Africa

z Home of the great freedom fighters, Nelson Mandela and Oliver Tambo

z Very few commercial farmers

z Potential for forestry around Mthatha and in Pondoland

Source: Monitor interviews, Monitor analysis



OR TamboIntroductionSome observations about OR Tambo

“It is just to difficult to get anything done here” – CEO Wilderness Safari

“Our biggest investment opportunity is Madiba’s future grave” – Eastern Cape Development Corporation (ECDC) Mthatha

“There are no big projects in the region hence the smaller ones cannot survive” –Municipality manager

“The IDP only consists of inaccurate high-level information” – Municipal manager

“In our region everybody is a farmer” – Department of Agriculture

“The municipality is not competent to do what it should do” – ECDC Mthatha

“Port St Johns’ land is under siege” – Wild Coast Development Forum

“Mbizana cannot build houses because of ten-year-old land claims” – Wild Coast Development Forum

“Since the region is believed to be unsafe the banks do not want to invest” – Development Bank of Southern Africa (DBSA)

“Everybody is doing everything” – LED manager about the lack of communication and co-operation

“It is just to difficult to get anything done here” – CEO Wilderness Safari

“Our biggest investment opportunity is Madiba’s future grave” – Eastern Cape Development Corporation (ECDC) Mthatha

“There are no big projects in the region hence the smaller ones cannot survive” –Municipality manager

“The IDP only consists of inaccurate high-level information” – Municipal manager

“In our region everybody is a farmer” – Department of Agriculture

“The municipality is not competent to do what it should do” – ECDC Mthatha

“Port St Johns’ land is under siege” – Wild Coast Development Forum

“Mbizana cannot build houses because of ten-year-old land claims” – Wild Coast Development Forum

“Since the region is believed to be unsafe the banks do not want to invest” – Development Bank of Southern Africa (DBSA)

“Everybody is doing everything” – LED manager about the lack of communication and co-operation

Source: Mail and Guardian Online 19 July 2006, Monitor interviews



OR TamboIntroduction Key challenges

� Complicated land tenure system

� Access to land is highly complex, leading to slow development and high property prices

� Lack of co-ordination of growth initiatives

� Complicated land tenure system

� Access to land is highly complex, leading to slow development and high property prices

� Lack of co-ordination of growth initiatives

Source: OR Tambo IDP Review 2006/2007, Monitor interviews, Monitor analysis

Nodal economyNodal economyNodal economy

Nodal politicsNodal politicsNodal politics

OthersOthersOthers

� Poor roads system

� Limited skills base

� Lack of any large-scale commercial presence

� No tradition of business or entrepreneurship in the node

� Poor industrial base

� Poor infrastructure support for business/industrial development

� Poor roads system

� Limited skills base

� Lack of any large-scale commercial presence

� No tradition of business or entrepreneurship in the node

� Poor industrial base

� Poor infrastructure support for business/industrial development

� Very densely populated region with few opportunities for large-scale farming

� Growth of informal settlements is depleting valuable grazing land

� The reputation of the former Transkei

� High crime rate

� Very densely populated region with few opportunities for large-scale farming

� Growth of informal settlements is depleting valuable grazing land

� The reputation of the former Transkei

� High crime rate



OR TamboIntroduction Local people portrait – Vuyiswa Dlabutshe

IncomeVuyiswa earns R590 at the clinic and R570 from the children’s grant, making up R1,160 a month in total. She has the following spending pattern: R700 on food, R250 to buy food for her children who attend school in town, R60 to pay funeral cover, and R150 on other things.

Other thoughtsHer parents passed away some years ago, so she has to look after those who come after her. Her husband left home in 2004 to seek employment in Gauteng and has not yet returned. She has a dream of becoming a professional nurse, and in 2007 plans to do a one-year course in nursing.

BackgroundVuyiswa Dlabutshe is an assistant at Qaqa clinic inTabankulu. Vuyiswa, who is 36 years old, has a husband who is not working and four children who are 15, 11, 8 and 4 years of age.

Education and careerVuyiswa grew up in Tabankulu where she attended school atBomvini JSS Grade 1 to Grade 9. Thereafter, as there was no high school in the area of her home, she had to move toSukude High School where she completed her matric. Due to the lack of funds she could not afford to further her education.In 2003 she joined a project which runs at the Bomvinilocation local clinic. While she was working as a gardener with two other women, they got an opportunity to be trained as assistant nurses.



OR Tambo

Overview

SnapshotSnapshot


Key challengesKey challenges

GeographyGeography

DemographyDemography


HealthHealth




EducationEducation










OR Tambo

MapMapMap

Key data pointsGeography

Geographical featuresGeographical featuresGeographical featuresLocal municipalities, population and major towns

� King Sabata Dalindyebo: 429,000 (Mthatha and Mqandili)

� Nyandenii: 294,000 (Libode)

� Qaukeni: 269,000 (Lusikisiki and Flagstaff)

� Mbizana: 255,000 (Mbizana)

� Mhlontlo: 213,000 (Qumbu and Tsolo)

� Port St Johns: 152,000 (Port St Johns)

� Ntabankulu: 128,000 (Ntabankulu)

Transportation

� Airport in Mthatha with daily flights to Johannesburg

� The N2 connecting Durban with Cape Town passes throughMthatha – The proposed N2 toll road would connect also Port St Johns – Most smaller roads are in poor condition

� Sixty-five per cent of the population have no bus service and 25% are more than 30 minutes away from a taxi service

� Proposed Kei Rail will link Mthatha to East London

Terrain and natural resources

� The Wild Coast is one of South Africa’s most beautiful andunspoilt regions with beaches, water falls and fishing

� Timber plantations close to Mthatha and in Pondoland

� Many rivers and 25% of all the rainfall in South Africa

Local municipalities, population and major towns

� King Sabata Dalindyebo: 429,000 (Mthatha and Mqandili)

� Nyandenii: 294,000 (Libode)

� Qaukeni: 269,000 (Lusikisiki and Flagstaff)

� Mbizana: 255,000 (Mbizana)

� Mhlontlo: 213,000 (Qumbu and Tsolo)

� Port St Johns: 152,000 (Port St Johns)

� Ntabankulu: 128,000 (Ntabankulu)

Transportation

� Airport in Mthatha with daily flights to Johannesburg

� The N2 connecting Durban with Cape Town passes throughMthatha – The proposed N2 toll road would connect also Port St Johns – Most smaller roads are in poor condition

� Sixty-five per cent of the population have no bus service and 25% are more than 30 minutes away from a taxi service

� Proposed Kei Rail will link Mthatha to East London

Terrain and natural resources

� The Wild Coast is one of South Africa’s most beautiful andunspoilt regions with beaches, water falls and fishing

� Timber plantations close to Mthatha and in Pondoland

� Many rivers and 25% of all the rainfall in South Africa

Densely populated area

Source: Municipal Demarcation Board, dplg, Stats SA Census 2001, Department of Transport



OR TamboKey data points Geology

Note: After climate, geology is the second most important factor in the formation of soil-terrain landscapes. It affects natural fertility and erodibility and is thus indirectly responsible for a variety of soil-plant niches or habitats.Source: Agricultural Geo-Referenced Information System

Rock types vary throughout the node

Adelaide

Dwyka

Ecca

Drakensberg

Natal

Witwatersrand

Zululand

GeologyGeologyGeology



OR TamboKey data points Vegetation

Source: Agricultural Geo-Referenced Information System

Tropical forest occurs near the coast while other forest and scrub types may be found inland

Coastal tropical forest types

Karoo and Karroid types

Pure grassveld types

Temperate and transitional forest and scrub

False grassveld types

Vegetation (Acocks veld type groups)Vegetation (Vegetation (Acocks veldAcocks veld type groups)type groups)



OR Tambo

Aridity aonesAridity aones

Key data points Aridity zones


Most of OR Tambo is described as humid

Dry subhumid zone

Humid zone



OR Tambo

Rainfall (mean annual)Rainfall (mean annual)Rainfall (mean annual)

OR Tambo receives high levels of rainfall

Key data points Rainfall (mean annual)


0-200 mm

201-400 mm

401-600 mm

601-800 mm

801-1,000 mm

> 1,000 mm



OR TamboKey data points Spatial development

Key indicators: 2001Key indicators: 2001Key indicators: 2001

z Population Density: 107.9 persons/km2

z Population: Rural 92.4%, Urban 7.6%

z Dwellings: Formal 97.3%, Informal 2.7%

z Population Density: 107.9 persons/km2

z Population: Rural 92.4%, Urban 7.6%

z Dwellings: Formal 97.3%, Informal 2.7%

ObservationsObservationsObservations

z Lack of housing in most of the towns, especially for the middle-class segment

z A very densely populated region makes large-scale farming difficult

z Lack of housing in most of the towns, especially for the middle-class segment

z A very densely populated region makes large-scale farming difficult

Predominantly rural without access to basic services

72%

84%91%

81%

0%

20%

40%

60%

80%

100%

Electricity Piped Water WasteRemoval

Telephone

Households without access to basic services: 2001

2.7%

2.7%

2.9%

6.5%

67.2%

18.0%

0% 20% 40% 60% 80% 100%

Type of housing: 2001

Per

cent

age

of H

ouse

hold

s

Traditional Housing with Traditional Material

Separate House or Brick Structure

Flat in Blocks of Flats or Town / Cluster /

Semi-detached House

Other

Informal Dwelling / Shack

House / Flat / Room in Backyard

Note: Definitions of basic access: Electricity for lighting; piped water within 200 m; waste removal by municipality or communal dump; phone or cell phoneSource: Stats SA Census 2001

National Average

30%

41%

28%

58%



OR TamboKey data points Demography

% o

f Hou

seho

lds

Source: Stats SA Census 2001

A young, predominantly Xhosa-speaking population

18%

45%38%

0%

20%

40%

60%

80%

1 to 3 4 to 7 8 +

Household size: 2001

% o

f Res

iden

ts

1% 0% 0% 0%

98%

0%

20%

40%

60%

80%

100%

IsiXhosa English IsiZulu Sesotho Afrikaans

Language distribution (mother tongue): 2001

Total No. of Households: 339 273Total No. of Households: 339 273

Gender distribution: 2001

% o

f Res

iden

ts

55% 61%

39%45%

0%

20%

40%

60%

80%

100%

Total Population Head of Household

Male

Female

45%

13% 10%6%

27%

0%

10%

20%

30%

40%

50%

60%

0-14 15-29 30-44 45-64 65 +

Age distribution: 2001

% o

f Res

iden

ts

Total Population: 1 676 482Total Population: 1 676 482



OR TamboKey data pointsIncome and employment

The majority of the population is not economically active resulting in low household incomes

% o

f Em

ploy

ed P

erso

ns

9%3% 2% 2%

84%

0%

20%

40%

60%

80%

100%

Paid Employee Self-Employed Paid FamilyWorker

Employer Unpaid FamilyWorker

% o

f Res

iden

ts

67%

21%

11%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Employed Unemployed Not EconomicallyActive

Employment figures: 2001

% o

f Hou

seho

lds

Annual household income: 2001

18%16%

12%

6% 5%

0%

10%

20%

30%

Community,Social &PersonalServices

Private Sector Wholesaler &Private Sector

Financial &BusinessServices

Construction

% o

f Em

ploy

ed P

erso

ns


3% 2% 1%6%13%

74%

0%

25%

50%

75%

100%

BelowR9,600

R9,601 -19,200

R19,201 -38,400

R38,401 -76,800

R76,801 -153,600

AboveR153,601

Household Subsistence Level: R19,200 per annumHousehold Subsistence Level: R19,200 per annum

Work status: 2001Employment by industry (Top 5): 2001

Of this 67%, 51% are included in this category because they are

below the age of 14 or above the age of 65 years



OR TamboKey data points Education

� Compared with the rest of SA and especially with the other nodes, the education levels in OR Tambo are very low

� There is one university based in Mthatha (The University of Walter Sisulu)

� Compared with the rest of SA and especially with the other nodes, the education levels in OR Tambo are very low

� There is one university based in Mthatha (The University of Walter Sisulu)

Education overviewEducation overview

Other factorsOther factors

� 95% of all learners walk to school, of which 36% walk for longer than 30 minutes. This means that there are 245,000 children who walk for more than an hour a day to get to and from school

� 95% of all learners walk to school, of which 36% walk for longer than 30 minutes. This means that there are 245,000 children who walk for more than an hour a day to get to and from school

1% 3%1%

24%

75%

25%

74%67%

30%

0%

20%

40%

60%

80%

None Pre-school & School Technikon / University /College / Adult

Education

OR Tambo

Nodes

Rest of South Africa(non-nodes)

School attendanceSchool attendance Education levelEducation level

Note: A negligible ‘other’ category has been excluded from the School Attendance graph (the ‘rest of South Africa’ average amounted to 0.2%)Source: Stats SA Census Data 2001; Monitor analysis; Department of Transport

Percentage of OR Tambo, nodal and non-nodal populations (aged 5-24 years) attending educational Institutions

Education levels of OR Tambo, nodal and non-nodal populations (aged 20+ yrs)

Low education levels in the node

38%

49%

9%5%

29%

53%

13%5%

15%9%

22%

53%

0%

20%

40%

60%

80%

No Schooling Some Primary /SecondarySchooling

Grade 12 Higher Education

OR Tambo

Nodes

Rest of South Africa(non-nodes)



OR TamboKey data points Health

Health-related variables Explanation OR Tambo statistics Node average1

Rest of South Africa Average1

Number of clinics 169 N/A

Per capita expenditure: 2001 R91 R135.29 R199.28

Number of people per clinic 10,300 N/A

Utilisation rate: 2004 Average number of clinic visits per person per year 1.9 2.08 2.08

Nurse clinical workload Number of patients per nurse per clinical day 22.6 26.78 26.31

HIV prevalencePercentage of HIV-positive

clients among antenatal clients tested

25.4% 24% 26%

Communicable diseases

Diseases that are usually transmitted through person-to-person contact or shared

use of contaminated instruments/materials

TB / HIV / AIDS - -

Environmental health IssuesNo licensed waste site; sewerage

discharging directly into the MthathaRiver

- -

Note: 1Weighted to node population. The number of clinics refer to health clinics, community health centres and district hospitals Source: Health Systems Trust Reports: The District Health Barometer, 2005, and Health and Related Indicators, 2005; OR Tambo IDP; Monitor analysis, Department of Health

Better than national avg.

Worse than national avg.



OR TamboKey data points Development scorecard

OR Tambo Rural node average

All node average

National average

Difference vsnational average

Rank out urban nodes

Poverty incidence (% of households below HSL)1

88.0% 84.7% 81.0% 65.3% 22.7% 13

Employment rate 11.0% 15.4% 19.3% 33.7% -22.7% 14

Households without basic access to water2

84.0% 64.9% 55.1% 27.9% 56.1% 14

Households without access to electricity3

72.0% 56.7% 50.3% 30.3% 41.7% 11

Percentage of adults with low / no education4

63.4% 60.3% 54.1% 40.3% 23.1% 12

OR Tambo development scorecard

Note: 1HSL = Household Subsistence Level and is equal to R19,200 per annum (R1,600 per month); 2Defined as not having piped water within a distance of 200 m of dwelling (government policy on minimum basic human need); 3Based on households that do not use electricity as a source for lighting; 4All adults aged 20+ years with no schooling at secondary level or above (Stats SA indicator of educational deprivation)


Better than national average Worse than national average

Overall OR Tambo falls below the average for rural poverty nodes in the areas of household income, employment and water provision

1=Best, 14=Worst



OR Tambo

Overview

SnapshotSnapshot


Key challengesKey challenges DemographyDemography


HealthHealth




EducationEducation





GeographyGeography






OR TamboGovernanceDistrict and Local Municipality structure

OR Tambo District Municipality

OR Tambo District OR Tambo District Municipality Municipality

QaukeniLocal

Municipality

QaukeniLocal

Municipality

MbizanaLocal

Municipality

MbizanaLocal

Municipality

MhlontloLocal

Municipality

MhlontloLocal

Municipality

NyandeniLocal

Municipality

NyandeniLocal

Municipality

Source: OR Tambo IDP 2006/2007; The Wild Coast Spatial Development Initiative

King Sabata Dalindyebo

Local Municipality

King Sabata Dalindyebo

Local Municipality

Port St Johns Local

Municipality

Port St Johns Local

Municipality

NtabankuluLocal

Municipality

NtabankuluLocal

Municipality

The Wild Coast



OR TamboGovernance Political structure of the OR Tambo District Municipality

Source: OR Tambo District Municipality

Office of the Municipal Manager

Office of the Municipal Manager

District Municipality


Finance and Asset Management Department

Finance and Asset Management Department

Human Resources Department

Human Resources Department

Office of the MayorOffice of the Mayor Office of the Speaker

Office of the Speaker

Development Planning

Department

Development Planning

Department

Infrastructural Department

Infrastructural Department

Community Development Department

Community Development Department

Responsible for IDP



OR TamboGovernance Sources of funding and budget breakdown

2004/2005 (actual) 2005/2006 (full year forecast) 2006/2007 (budget)

Operating revenue 305,821 238,050 227,314

Grants and subsidies 422,952 520,716 468,180

Total financing 728,773 758,766 695,494

Total expenditure / Budgeted expenditure 612,860 758,381 693,890

Operating expenditure: Budget year 2006-2007

Millions of

Rands

� 67% of the total financing is government grants

� A municipality initiative to raise more revenue is discussed in the latest IDP review

� 67% of the total financing is government grants

� A municipality initiative to raise more revenue is discussed in the latest IDP review

Note: All amounts are given in R1,000Source: IDP OR Tambo 2006/2007

0.13.3

24.3

37.5 227.1

25.11.86.44.05.92.08.5

67.7

40.4

0

50

100

150

200

250

300

Execu

tive &

Cou

ncil

Finance

& A

dmin

Plannin

g & D

evelo

pmen

tHealt

h

Community &

Socia

l Servi

ces

Housing

Public

Safe

ty

Enviro

nmen

tal P

rotec

tion

Waste

Wate

r Man

agem

ent

Road T

ransp

ortW

aterElec

tricity

Touris

m

Total



OR TamboGovernance Overview of nodal management – private sector point of view

Capability

� Lack of understanding of LED at local and district municipality level– More focus on social uplifting than economic development

� Lack of strategic insight

� Generally low skills level

� Consultants generate key documentation

Inter-nodal politics

� Lack of communication between local municipalities

� Evidence of antagonistic relationship between local municipalities and district municipalities – “Local municipalities want to belong to KwaZulu Natal (KZN)”

� Although the IDP for the district should be based on the local IDPs, this district IDP was completed before

Corruption

� Media coverage indicates– Ghost workers– Nepotism– Theft

Source: Based on Monitor interviews of private sector participants



OR TamboGovernance Assessment of nodal managers

Very poor communication between district and local municipalities

CommunicationCommunication CapabilityCapability

Source: Monitor interviews, Daily Dispatch 28 July 2006

� Lack of understanding of LED at local and district municipality level

– More focus on social uplifting than economic development




� Lack of understanding of LED at local and district municipality level

– More focus on social uplifting than economic development





� Evidence of antagonistic relationship between local municipalities and district municipalities

– “Local municipalities want to belong to KZN”



� Evidence of antagonistic relationship between local municipalities and district municipalities

– “Local municipalities want to belong to KZN”


CapacityCapacity CorruptionCorruption� Media coverage indicates

– Ghost workers

– Nepotism

– Theft

� Media coverage indicates

– Ghost workers

– Nepotism

– Theft

� Motivation levels not optimal

� No sector experts (forestry)

� Few people have to cover all relevant sectors

– Compared with other nodes, the number of LED managers is low

� Motivation levels not optimal

� No sector experts (forestry)

� Few people have to cover all relevant sectors

– Compared with other nodes, the number of LED managers is low



OR TamboGovernance Example of political mismanagement

Note: 1KSD = King Sabata Dalindyebo (one of seven local municipalities) Source: Daily Dispatch, Friday 28 July 2006

The council is paying people who do not exist

Manager was paid two salaries for

more than a year

Report shows examples of fraud and nepotism in KSD1 local municipality

Employee resigned in 2004 but was paid

until 2006



OR TamboIDP assessmentKey facts of the IDP

Geographic area covered

Geographic area covered

Month / year of latest publication

Month / year of latest publication

Author / main contributors

Author / main contributors

Process of creation

Process of creation

Key aspects

Key aspects

TimingTiming

Length / formLength / form

� OR Tambo District Municipality – Includes seven local municipalities

Covers more than the nodeCovers exactly the nodeCovers less than the node

Includes consultantsDoes not include consultantsRelies only on consultants

� 2006

� The actual document is 77 pages in length including 20 pages of tables showing focus areas and budget breakdown

� Mainly text and tables; four maps in total

� Process started with the five-year plan in 2000

– Focused on improving the lives of the people through development and addressing service backlogs

� Annual reviews with refinements of the strategy

� N/A

Public sector mainlyPrivate sector mainlyBoth equally

Other key related documents

Other key related documents

� The Wild Coast spatial development framework

� For each local municipality – Separate IDP– The LED strategy

Source: IDP Review 2006/2007, Monitor analysis, Monitor interviews

� Compiled by the Department of Planning and Development at OR Tambo District Municipality

– No use of external consultants

– Mayors, managers and local municipalities contributed through mass meetings



OR TamboIDP assessment Key characteristics of the IDP

Other aspectsOther aspects

AccessibilityAccessibility � IDP reports from 2003 are available online

Actual user group / key current recipients

Actual user group / key current recipients

� Focuses entirely on government and municipality

� Very few ideas for the private sector

Government mainlyPrivate sector mainlyBoth equally

Easy to find / accessDifficult to find / access

Focus / purposeFocus / purpose

� Provides insight into needs and the strategy for growth and development on a district level

� Does not provide much information / data

Provides insight mainlyProvides information mainly

Extent of usage / impactExtent of usage / impact � N/AIs viewed as key guiding documentIs used minimally, very little impact

Both equally

PrecisionPrecision

� Generally high level needs assessment and objectives

� Lack of precision for growth strategies and understanding of LED

Generally, very vagueGenerally, quite precise


� Even if the IDP review does not provide many details for growth initiatives there is a project databank available online

– For each project, well defined goals, strategies and target groups are presented

– Most of the projects have the nature of social upliftment (e.g. HIV awareness campaign) rather than economic growth

� The IDP review of the district municipality should be based upon the IDP review of the seven local municipalities

– This is obviously not the case since the IDP review for OR Tambo DM was finished several months before the local IDPs



OR Tambo

Types of information contained in the IDPTypes of information contained in the IDPTypes of information contained in the IDP

Examples of key issue areas covered

Examples of key issue areas covered

Examples of key issue areas not covered

Examples of key issue areas not covered

Typical level of detail provided across issue areas

Typical level of detail provided across issue areas

AssessmentAssessmentAssessment

IDP assessment Contents of the IDP relevant to the node

� IDP planning process

� Current situation

� Development strategy

� IDP implementation plan

� Sector plan

� IDP planning process

� Current situation

� Development strategy

� IDP implementation plan

� Sector plan

Quality of information contained in the IDPQuality of information contained in the IDPQuality of information contained in the IDP

� Lessons and follow-ups from previous IDP reviews

� Lessons and follow-ups from previous IDP reviews

� The IDP 2006/2007 is based on the Census 2001 data

� There is reason to believe that the data are not accurate – The census survey of OR Tambo was done when there was violence in some regions– Statistics for some of the regions are based on guesses

� The IDP 2006/2007 is based on the Census 2001 data

� There is reason to believe that the data are not accurate – The census survey of OR Tambo was done when there was violence in some regions– Statistics for some of the regions are based on guesses

Highly comprehensive

Key issuesnot covered

AssessmentAssessmentAssessment

Highlyreliable

Very risky to use forinvestment decisions

� Detailed description of the current situation and key challenges

� Only six (out of the total 77) pages describe the development strategy, and no data are given

� Hardly any details are given about the relevant sectors or actual projects

� The sector plans are high-level summaries of LED plans or spatial development frameworks

� Detailed description of the current situation and key challenges

� Only six (out of the total 77) pages describe the development strategy, and no data are given

� Hardly any details are given about the relevant sectors or actual projects

� The sector plans are high-level summaries of LED plans or spatial development frameworks

breadth depth




OR Tambo

Actions proposedActions proposed

Examples of key actions proposed in IDPExamples of key actions proposed in IDP

AssessmentAssessment

IDP assessment Action orientation of the IDP for the node

� The IDP review lacks proper key actions. Ten pages of tables with key performance areas and relevant projects are presented without any form of prioritisation

� The IDP review lacks proper key actions. Ten pages of tables with key performance areas and relevant projects are presented without any form of prioritisation

Support of implementation of the proposed actionsSupport of implementation of the proposed actions

� Implementation plan is available – Not a single project is associated with a time line – Key persons for the projects have only been identified for projects involving external stakeholders like

government departments or private initiatives

� Implementation plan is available – Not a single project is associated with a time line – Key persons for the projects have only been identified for projects involving external stakeholders like

government departments or private initiatives

Highlyaction-oriented

Key action areasnot covered


Drives implementation well

Does not drive implementation

Examples of key actions not proposed in IDPExamples of key actions not proposed in IDP

� Skills development programme for municipal managers

� Ideas of how service delivery could be improved (e.g. performance measurement)

� Skills development programme for municipal managers

� Ideas of how service delivery could be improved (e.g. performance measurement)




OR Tambo

General assessment – Does the IDP deliver what it promises?General assessment – Does the IDP deliver what it promises? AssessmentAssessment

IDP assessment General assessment of the IDP in relation to the node

� The important goal of “providing efficient and effective service delivery” is not consistent with giving the lowest possible priority to the two objectives– Facilitate the provision of electricity– Co-ordinate public transport services

� If the promised economic growth is to be achieved more focus on LED rather than social upliftment is needed

� The important goal of “providing efficient and effective service delivery” is not consistent with giving the lowest possible priority to the two objectives– Facilitate the provision of electricity– Co-ordinate public transport services

� If the promised economic growth is to be achieved more focus on LED rather than social upliftment is needed

Highlysatisfactory

Delivers less than it promises

IDP contribution to stimulating economic growthIDP contribution to stimulating economic growth

What to keep doingWhat to keep doing


� In its current status the IDP does not contribute to real economic growth

� In its current status the IDP does not contribute to real economic growth

Very useful to growth debate

Does not contribute to growth debate

What to do differentlyWhat to do differently

� More focus on economic growth � More focus on improvements of basic

infrastructure

� More focus on economic growth � More focus on improvements of basic

infrastructure




OR TamboIDP assessmentSummary of IDP assessments

Level of detailLevel of detailLevel of detail

Highly comprehensive

Key issuesnot covered

Quality of informationQuality of Quality of

informationinformation

Highlyreliable

Very risky to use forinvestment decisions

breadth depth

Actions proposedActions proposed

Highlyaction-oriented

Key action areasnot covered

Support of implementation

Support of implementation

Drives implementation well

Does not drive implementation

IDP delivers what it promises

IDP delivers what it promises

Highlysatisfactory

Delivers less than it promises

Contribution to stimulating growth

Contribution to stimulating growth

Very useful to growth debate

Does not contribute to growth debate



OR TamboDevelopment projectsExamples of Ntinga Development Agency1 initiatives

Note: 1Ntinga OR Tambo Development Agency facilitates and implements the LED initiatives of the municipality Source: Ntinga OR Tambo Development Agency 2004/05 Annual Performance Review

Project Description Status

Nelson Mandela Cultural Precinct Public private partnership (PPP) for the development of a cultural precinct inMthatha Proposal

Multi-purpose sports stadium National stadium seating 35,000 people to be used as venue for 2010 World Cup (demonstration and warm-up games)

Site allocated and investments in infrastructure

Academy of Sports National sports academy for all Olympic sports Feasibility study needed

Mthatha Plaza Shopping Centre Shopping centre (25,000 square metres) on site of the Independence Stadium Ninety per cent let with large national tenants

Owen Dam Office Park Proposal for the development of a 15,000 square metre office park and lifestyle centre Proposal

Nduli Knuckle Game Park and Tourism Centre “Revitalisation of game park essential to the future of Mthatha as a tourism node” Proposal

Residential housing development Development of residential accommodation to supply much needed middle- and upper-income housing

Opportunity for lenders to invest

The development agency implementing LED projects focuses on too many different areas and on developing Mthatha and its surroundings

Current and proposed projects by Ntinga OR Tambo Development Agency1: 2004/05



OR TamboDevelopment projects Examples of Ntinga Development Agency1 initiatives (continued)

Note: 1Ntinga OR Tambo Development Agency facilitates and implements the LED initiatives of the municipality Source: Ntinga OR Tambo Development Agency 2004/05 Annual Performance Review

Project Description Status

Agricultural development

Several projects focusing on

� Grain clusters

� Maize production

� Vegetable production

� Sorghum production

� Essential oils

� Beef production

� Sheep production

� Goat production

Running

Tourism development

High level tourism plan with the following objectives

� Increasing business opportunities for emerging entrepreneurs

� Creating employment

� Increasing contribution from tourism to the gross geographic product

Running

OR Tambo District Municipality Timer Cluster Concept – Langeni

Massive programme to use the potential for forestry and to ensure that the whole district benefits from the production Running

The development agency implementing LED projects focuses on too many different areas and on developing Mthatha and its surroundings

Current and proposed projects by Ntinga OR Tambo Development Agency1: 2004/05



OR Tambo


z Research process

z Overview

z Economy

– Overview




z Summary

z Appendix

� GDP and employment

� Prioritisation of economic sectors



OR Tambo

3,97

9

4,01

0

3,98

9

3,89

4

3,90

4

3,93

9

3,90

4

3,87

4

3,91

0

3,93

5

10,9

74

11,0

55

11,0

91

10,8

28

10,8

56

11,0

14 12,0

32

10,9

89 12,3

99

11,8

97

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

GDP per capita for the nodeGDP per capita for the province 6.

01 6.21

6.27

6.20

6.31 6.47

6.51

6.56 6.71

6.84

0

2

4

6

8

10

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Economy overviewNodal and provincial GDP

Ran

ds

Total GDP per node (constant 2000 prices)

Bill

ions

of R

ands

Source: Quantec, Monitor analysis. GDP Gross Domestic Product; CAGR Compound Annual Growth Rate

GDP per capita: 2004 (constant 2000 prices)

36.3% 36.3% 36.0% 36.0% 36.0% 35.8% 32.4% 35.3% 31.5% 33.1%

Comparison of GDP per

capita with the provincial

average

CAGR (1995-2004)-0.1%

0.9%

67.4

5

69.6

7

70.9

0

70.5

9

72.2

9

75.4

2

77.4

5

78.6

7

80.6

3

84.3

3

0

30

60

90

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Total GDP per province (constant 2000 prices)

Bill

ions

of R

ands

CAGR (1995-2004) = 2.5%

CAGR (1995-2004) = 1.5%

The GDP per capita for the node has grown at a much lower rate than that for the province, and the same has occurred for the total GDP



OR TamboEconomy overview Contribution to GDP and employment by economic sector

Contribution to GDP by sector 2004 (constant 2000 prices)

Contribution to employment by sector: 2004

General Government

Services33.6%

Wholesale and Retail Trade; Catering &

accommodation14.5%

Finance and Business Services

18.1%

Transport & Communication

9.3%

Agriculture, Forestry & Fishing1.9%

Community, Social and Other

Personal Services12.7%

Manufacturing5.2%

Construction 3.4%

Mining0.4%

Electricity and Water 1.0%

Source: Quantec, Monitor analysis

Government remains by far the largest employer and the largest contributor to GDP in the node, although tourism is quite large as well

General Government

Services35.0%

Wholesale and Retail Trade; Catering &accomm

13.7%


9.8%

Transport and Communication

1.7%Agriculture, Forestry & Fishing

3.9%

Community, Social and Other

Personal Services24.7%

Manufacturing5.3%

Construction 4.3%

Mining 1.4%Electricity and

Water 0.4%



OR Tambo

0

500

1,000

1,500

2,000

2,500

0% 2% 4% 6% 8% 10%

Economy overviewGDP by sector


GDP by sector: 2004 (constant 2000 prices)

GD

P in

Mill

ions

of R

ands

: 200

4

Mining

Agriculture,Forestry & Fishing Construction

Finance & Business Services

General Government Services

Wholesale & Retail Trade; Catering & Accommodation


Community, Social & Other Personal Services

Manufacturing

CAGR: 1995-2004

Electricityand water

359

432

106

203

0 200 400 600 800


828

900

110

91

700 800 900 1,000 1,100

Wholesale & Retail Trade; Catering & Accommodation

2004

1995

Transport Communication Trade CateringAverage CAGRfor GDP: 1.5%

68% 32%

77% 23%

91% 9%

88% 12%

Combining size and growth rate allows us to start identifying sectors that may have good growth potential

382

459

640

781

0 500 1,000 1,500

109

234

0 100 200 300

Construction

2004

1995

Finance Business

37% 63%

37% 63%

Finance & Business Services



OR Tambo

0

5,000

10,000

15,000

20,000

25,000

30,000

-12% -9% -6% -3% 0% 3% 6%

Economy overviewEmployment by sector


Employment by sector

Em

ploy

men

t: 20

04

Mining

Construction

Finance and business services

Manufacturing

CAGR (1995-2004)

Community, social and other personal services

General government services

Wholesale and retail trade; Catering and accommodation

Agriculture,Forestry and fishing Transport and communication

Electricity and water

1,627

1,811

2,781

5,451

0 2,000 4,000 6,000 8,000

7,062

9,031

2,872

1,15

5

0 5,000 10,000 15,000

Wholesale and Retail Trade; Catering and Accommodation

2,158

1,380

1,13

4

572

2,478

1,949

0 2,000 4,000 6,000 8,000

Manufacturing

2004

1995

2004

1995

Finance Business Trade

Food Wood Other


CateringAverage CAGRfor employment: -0.6%

25% 75%

37% 63%

89% 11%

71% 29%

37% 20% 43%

35% 15% 50%

In terms of jobs created, government and community services are the most significant sectors

1150

789

688

482

0 500 1000 1500 2000

Transport and Communication

Transport Communication

62% 34%

63% 37%



OR TamboEconomy overview Quantitative prioritisation using economic data

2,301,807,460

2,301,807,460

Sectors

GDP Employment

Average index2004 GDP at constant 2000

prices (Rmillion)GDP index

Number of employees:

2004

Employment index

1 General government services 2,301,807,460 100 26,023 100 100

2 Community, social and other personal services 865,793,155 37 18,345 70 54

3 Wholesale and retail trade; Catering and accommodation 991,012,074 42 10,186 39 40

3 Finance and business services 1,239,855,229 53 7,262 27 40

5 Transport and communication 635,387,818 27 1,272 4 15

6 Manufacturing 354,012,136 14 3,900 14 14

7 Construction 234,131,813 9 3,159 11 10

8 Agriculture, forestry and fishing 129,838,260 5 2,889 10 7

9 Mining 24,166,848 0 1,017 3 1

10 Electricity and water 68,314,190 2 265 0 1

/100 /100 /100


High

Low

The average index (from 100 – high, to 0 – low) represents a quantitative assessment of the potential for economic growth and job creation of the ten different sectors



OR TamboEconomy overview Qualitative prioritisation of top five sectors

Sectors Average index Potential for growth Assessment

General government services

100

� Limited opportunities for growth– Lack of suitable intervention points– No sustainable wealth creation for the people who live in the node

Community, social and other personal services

54

� Limited opportunities for growth– Lack of suitable intervention points– No sustainable wealth creation for the people who live in the node

Wholesale and retail trade, Catering and accommodation

40

� Huge potential for growth– Untapped market in tourism– Many areas of unique natural beauty– Large variety in leisure activities– Historically significant area (birthplace of many freedom fighters)

Finance and business services 40

� Some potential for growth, but linked to performance of the other sectors (tourism)– Very skills intensive

Transport and communication 15

� Limited potential for growth– Very capital intensive – Lack of supportive infrastructure – Growth in other sectors is needed to create the right demand

Source: Monitor analysis

High growth potential

Low growth potential



OR TamboEconomy overviewAgriculture as a prioritised sector

� Rainfall and soil quality make the area well suited to agricultural production

� Although the number of commercial farmers is small there are many subsistence farmers whose production could be increased

� With increasing demand from the bio-fuel industry, maize could potentially be exported

� Additionally, the area has ample grazing land for livestock and dairy farming

� Additional value can be extracted through the development of downstream processing industries

Agriculture (crops and livestock)

Agriculture Agriculture (crops and (crops and livestock)livestock)

� The Eastern Cape (EC) has been identified as one of the only areas remaining in South Africa that is available for new forestation

� Furthermore, demand for timber products is strong in South Africa and abroad

� OR Tambo has potential for large-scale forestation, especially of pine

� The components of a forestry cluster are already emerging, with billion-rand investments in the nearby nodes of Ukhahlamba and Alfred Nzo

Agriculture (forestry)

Agriculture Agriculture (forestry)(forestry)

Although its current contribution to the OR Tambo economy is limited, the agriculture / forestry / fishing sector presents good opportunities for growth

Source: Monitor interviews



OR Tambo


z Research process

z Overview

z Economy

– Overview




z Summary

z Appendix

� Description of current value chain

� Growth constraints and solutions

� Potential for sector� Past and current efforts



OR TamboSelected sector: TourismOverview of the tourism sector

Unique potential exists for tourism development

z Home of the great leaders Nelson Mandela and Oliver Tambo

z Wild Coast, 120 km ofunspoilt beauty

z Ecotourism– Natural beauty– Endemic species

z The Xhosa cultural heritage

z Pondoland with traditionalAmampondo lifestyle

What do they rely on?What do they rely on?What do they rely on?

z Adventure-based tourism– Most hotels along

the coast offer hiking, horse riding, canoeing, etc.

z Mainly 2- and 3-star accommodation

z Lack of good accommodation inMthatha

What do they do / produce?

What do they do / What do they do / produce?produce?

z Many domestic tourists but few of them use the hotel establishments – The region

suffers from a bad reputation

z International tourists, especially backpackers, make up the major group of visitors

Who do they serve / target / sell to?

Who do they serve / Who do they serve / target / sell to?target / sell to?

Target marketsTarget marketsProductionProductionInputInput




OR TamboSelected sector: Tourism Inputs

Source: Eastern Cape Tourism Board (ECTB)

The beautiful beaches together with places of historical and cultural significance are the major attractions

Major attraction

Tourism activitiesTourism activities

� Excellent beaches

� Hiking, fishing, horse riding and whale watching

� 4x4 driving

� The Wild Coast Sun Casino

� The Nelson Mandela legacy– Museum in Mthatha– School house in Qunu– Birthplace in Mvezo

� Waterfall Bluff– One of the few waterfalls going

right into the ocean

� Excellent beaches

� Hiking, fishing, horse riding and whale watching

� 4x4 driving

� The Wild Coast Sun Casino

� The Nelson Mandela legacy– Museum in Mthatha– School house in Qunu– Birthplace in Mvezo

� Waterfall Bluff– One of the few waterfalls going

right into the ocean

Tourism eventsTourism events

� Imana Mountain Bike Ride� Imana Mountain Bike Ride

Map showing attractions in the OR Tambo node

Wild Coast Sun Casino

Hole in the Wall

Mthatha and Nelson Mandela Museum

Qunu Mvezo

Mkambathi Nature Reserve

Waterfall Bluff

Coffee Bay

Port St Johns



OR TamboSelected sector: Tourism Production

Lack of quality accommodation drives up prices and occupancy rates

ProductsProducts

� The Wild Coast has about 70 establishments

– Between Coffee Bay and Port St John’s there are about 3,250 beds catering for the 2- and 3-star markets

– The Upper Wild Coast1 offers 100 camp sites and 1,783 beds distributed according to

� Top end (5-star): none

� Upmarket (4-star): 715 (71% occupancy)

� Mid-market (3-star): 373 (72% occupancy)

� Low (1-2 star): 695 (37% occupancy)

– The Upper Wild Coast is mainly dominated by two establishments, i.e. Wild Coast Sun and Umngazi River Lodge

� In addition to the coastal establishments the number of inland B&Bs and guest houses is growing

– In Mthatha the hotels cater mainly for the many business travellers

� The Nelson Mandela Museum with 44,708 visitors in 2003/04

� The Wild Coast Sun Casino with 563,000 visitors per annum

� The Wild Coast has about 70 establishments

– Between Coffee Bay and Port St John’s there are about 3,250 beds catering for the 2- and 3-star markets

– The Upper Wild Coast1 offers 100 camp sites and 1,783 beds distributed according to

� Top end (5-star): none

� Upmarket (4-star): 715 (71% occupancy)

� Mid-market (3-star): 373 (72% occupancy)

� Low (1-2 star): 695 (37% occupancy)

– The Upper Wild Coast is mainly dominated by two establishments, i.e. Wild Coast Sun and Umngazi River Lodge

� In addition to the coastal establishments the number of inland B&Bs and guest houses is growing

– In Mthatha the hotels cater mainly for the many business travellers

� The Nelson Mandela Museum with 44,708 visitors in 2003/04

� The Wild Coast Sun Casino with 563,000 visitors per annum

Profitability Profitability � The Wild Coast market is highly seasonal with 40% of the visitors

between December and April

� Low prices and occupancy rates during off-season indicates low profitability

� The upmarket establishments (e.g. Wild Coast Sun) are usually fully booked the whole year round

� The Wild Coast market is highly seasonal with 40% of the visitors between December and April

� Low prices and occupancy rates during off-season indicates low profitability

� The upmarket establishments (e.g. Wild Coast Sun) are usually fully booked the whole year round

PricesPrices

� Prices (per person per night) for accommodation on the Wild Coast2

– Upmarket R600-R1,200

– Mid-market R400-R1,000

– Low R80-R650

� High demand and lack of facilities drive up the cost of accommodation in Mthatha

– The Garden Court hotel charges R699 pp without meals

� The Nelson Mandela museum is free of charge

� Prices (per person per night) for accommodation on the Wild Coast2

– Upmarket R600-R1,200

– Mid-market R400-R1,000

– Low R80-R650

� High demand and lack of facilities drive up the cost of accommodation in Mthatha

– The Garden Court hotel charges R699 pp without meals

� The Nelson Mandela museum is free of charge

Note: 1The Upper Wild Coast is defined as the region between Port St Johns and Port Edward 2The lower prices represent low season and the higher represent high season Source: Ntinga OR Tambo Development Agency, SA Casino Group, Nelson Mandela Museum; Monitor analysis



OR TamboSelected sector: Tourism Production (continued)

Most of the accommodation in the area is in Coffee Bay, Port St Johns and Mthatha

B&B / guest house

Self-catering

Other

Hotel / motel / inn

= 15 places for accommodation

OR Tambo accommodation

� 21 Hotels / motels / inns

� 29 B&Bs / guest houses

� 10 Self-catering

� 5 Other

OR Tambo accommodation

� 21 Hotels / motels / inns

� 29 B&Bs / guest houses

� 10 Self-catering

� 5 Other

Accommodation by type

Source: Grant Thornton

Included in this region areMthatha, Coffee Bay,

Butterworth, Mazeppa Bay,Qolora Mouth and Qunu



OR TamboSelected sector: Tourism Target markets – Overview

Source: Eastern Cape Tourism Board, SA Casino Group, Travel Africa, National Gambling Board, Monitor interviews

Market / customers Market / customers

� The VFR (visiting friends and relatives) group is the major driver for the domestic market in OR Tambo

– Most visitors are from Western Cape, Eastern Cape and Gauteng

� Two-thirds of the visitors at establishments along the Wild Coast are foreigners

� The VFR (visiting friends and relatives) group is the major driver for the domestic market in OR Tambo

– Most visitors are from Western Cape, Eastern Cape and Gauteng

� Two-thirds of the visitors at establishments along the Wild Coast are foreigners

The Wild Coast attracts many international backpackers and adventure-seeking tourists

Wild Coast Wild Coast

Major market segments Major market segments

Competitors / threat of substitute products Competitors / threat of substitute products

Mthatha Mthatha

� Beach and scenic coast

– The Garden Route

– The Sunshine Coast in Eastern Cape

– The South Coast in KZN

� Beach and scenic coast

– The Garden Route

– The Sunshine Coast in Eastern Cape

– The South Coast in KZN

� Many international backpackers

� The adventurous type enjoying 4x4 driving, surfing and horse riding

� Eighty-five per cent of the visitors to the Wild Coast Sun Casino originate from Durban

� Many international backpackers

� The adventurous type enjoying 4x4 driving, surfing and horse riding

� Eighty-five per cent of the visitors to the Wild Coast Sun Casino originate from Durban

� Municipality and government workers attending conferences and workshops

� Business people� Municipality and government workers attending conferences and

workshops

� Business people

� History and culture

– Better-known establishments like Robben Island in Cape Province or the Apartheid Museum in Gauteng

� Casino

– Popular establishments in Port Elizabeth and East London

– Several casinos in KZN

� History and culture

– Better-known establishments like Robben Island in Cape Province or the Apartheid Museum in Gauteng

� Casino

– Popular establishments in Port Elizabeth and East London

– Several casinos in KZN



OR TamboSelected sector: Tourism Domestic target markets

Source: SA Tourism

Eastern Cape is the third most popular domestic destination and almost half the tourists in EC go to the Wild Coast / Transkei / Ciskei

Types of Domestic Trips to Eastern Cape: 2000/01

Wild Coast/Transkei/

Ciskei

43%

KarooHeartland

5%

Sunshine Coast & Country

22%

Amathole7%

Friendly N622%

28%

17%

15%

11%

9%

7%6%

5%

2%

0%

5%

10%

15%

20%

25%

30%

KwaZulu-N

atalGau

teng

Easter

n Cap

e

Weste

rn Cape

Limpo

poFre

e Stat

eNorth

Wes

tMpu

malang

a

Northern

Cap

e

Destinations for Domestic Overnight Trips in 2002/2003

Tsitsikamma 5%



OR TamboSelected sector: Tourism Domestic target markets (continued)

Leisure20.4%

Note: 1VFR = Visiting Friends and RelativesSource: SA Tourism 2001

VFR1 is the major reason for domestic tourism in OR Tambo

Religious7.8%

Health1.6%Business

1.2%

VFR 69.0%

Types of trips to Wild Coast / Transkei / Ciskei: May 2000-April 2001

Types of trips to the Sunshine Coast and Country: May 2000-April 2001

Leisure37.5%

Religious 8.3%

Health 0.4%

Business2.7%

VFR 51.1%



OR Tambo

49.6%

25.9%20.8%

15.2%9.7% 8.9% 8.5%

5.3%2.5%

0%

25%

50%

75%

Gaute

ngW

ester

n Cap

eKwaZ

ulu N

atal

Mpumala

nga

North

Wes

tEas

tern

Cape

Free S

tate

Limpo

poNor

thern

Cap

e

Selected sector: Tourism International target markets

Source: SA Tourism

Few international tourists go to the Eastern Cape

Provincial distribution of foreign tourists: Q4 2004

Percentage of all visitors



OR Tambo

61.2%58.4%

36.2%

23.9%

14.3% 12.3% 10.2% 8.3%

0.6% 0.5%0%

25%

50%

75%

Nature

Res

erve

s

Beach

es /

Wild

Coa

stJe

ffrey’s

Bay

Fleamar

kets

/ Cra

ftmar

kets

None

Coffee

Bay

Towns

hip T

ours

Port S

t Joh

ns

Board

Walk

Sho

pping

Mall

Green

acre

s Mall

Selected sector: Tourism International target markets (continued)

Source: SA Tourism

The beaches are the major attraction in Eastern Cape

Attractions / landmarks visited by foreign tourists in Eastern Cape: Q4 2004

Percentage of all visitors

Attraction relevant to OR Tambo



OR TamboSelected sector: Tourism International target markets (continued)

Attractions / landmarks in OR Tambo visited by foreign tourists in Eastern Cape, Q4 2004

� Text– Text

� Text– Text

Source: SA Tourism, Eastern Cape Tourism Board, Monitor analysis

Only a small portion of the international tourists visit the Wild Coast

58.4%

8.3%12.3%

0%

25%

50%

75%

Beach / WildCoast

Coffee Bay Port St Johns

Approximately 15% of the

tourists visiting the coastline in EC go to the Wild Coast

% of all Visitors

The major attraction, except for Coffee Bay and Port St Johns on the Wild Coast, is the Wild Coast

Sun Casino, close toBizana

Eighty-five per cent of the visitors are domestic

originating from Durban



OR TamboSelected sector: Tourism Barriers / solutions related to inputs

Barrier / constraint Potential solution

Very poor infrastructureA big problem especially for the backpacker market which generally depends on public transport

Main focus for municipality is to guarantee good infrastructure

Land claim and land tenure issues prohibit many projects and investments

Government initiative to facilitate and add transparency to the land claim process

The region has no tradition of entrepreneurship within the tourism sector

Teach people the value of the tourism market and help them to get to the market with their products and services

Competing projects like the proposed XolobeniMineral Mining Project

N/A




OR Tambo

FiveYears

Theoretical process as noted by Wild Coast tourism development policy

Step 1: Preparation of a properly prepared technical proposal

Step 2: Submission of application to the Department of Land Affairs (DLA) and Department of Economic Affairs, Environment & Tourism (DEAET) (and Department of Water Affairs and Forestry [DWAF] where applicable) once it has the support required

Step 3: Approval by DLA of transparent and democratic procedures and approval by DEAET (and DWAF) of compliance with prevailing tourism related policy and strategy context

Step 4: Preparation of Ministerial Memorandum by the Eastern Cape Provincial Land Reform Office on the basis of the proposal as well as the inputs from DLA and DEAET

Step 5: Negotiation of terms related to the cost (rental / lease fee) of the ‘head lease’payable to government and other contracts with respect to the lease

Consult and appoint steering committee

� Chiefs

� Municipalities

� Development agencies

Private Sector Investor (Represented in a trust)

Form a Joint Venture (JV)

Total time = Six years +

(Negotiate an equity and profit share)

� Investigation if all parties are happy

� Finalised with steering committee

Put out Public Notice

JV Makes Changes

Final Report

Proposal Accepted in Principle by Stakeholders DLA; DEAT (National and Provincial); Steering Committee

Preparation of Ministerial Memo by Provincial DLA

Dept Environmental Affairs & Tourism (DEAT) Signs Lease

Record of Decision Issued by Provincial DLA

Appoint Environmental Assessors

Prepare Technical Proposal for Lease

Provincial Department of Land Affairs (DLA)

Environmental Impact Assessment (EIA)

ApprovedNational DLA Conducts

Investigation

Community

Selected sector: TourismComplexity of land claim process

The diagram below describes the process and time lags experienced by a property developer for a development in Coffee Bay

OneYear +

1 Year

Source: Monitor work on tourism



OR TamboSelected sector: Tourism Barriers / solutions related to target markets


Especially among domestic tourists, the Wild Coast has a bad reputation and is believed to be unsafe

Train South African Police Services (SAPS) personnelTeach the local population the value of tourism

Lack of tourism statistics – no proper survey of visitors in OR Tambo is available

District initiative to do a survey

Not enough good accommodation in Mthatha to cater for visitors to the Nelson Mandela Museum,Qunu and Mvezo

Develop more facilities, especially in the upmarket segment




OR TamboSelected sector: Tourism Assessment of the potential of the tourism sector

If basic infrastructure and the land claims issue could be improved, the region has huge growth potential

Source: Stats Census 2001, SA Tourism, Monitor analysis

Create the right environment for private sector investment

� Land tenure process

� Municipality capability to deal with tourism investment

� Transparent investment process

Create the right environment for private sector investment

� Land tenure process

� Municipality capability to deal with tourism investment

� Transparent investment process

Doubling the number of domestic and foreign tourists in OR Tambo would mean approximately:

� 400,000 more tourists every year

� 1,200 direct employments

Doubling the number of domestic and foreign tourists in OR Tambo would mean approximately:

� 400,000 more tourists every year

� 1,200 direct employments

Current situation Current situation

Skills for tourism workers (understanding of potential for tourism)

Marketing strategy

Skills for tourism workers (understanding of potential for tourism)

Marketing strategy

Platform for growth Platform for growth

Full usage of potential Full usage of potential



OR TamboSelected sector: Tourism Tourism – Barriers / solutions to investments

Idea Business plan Funding Implementation

Blockages / barriers

People have no experience of writing a proper business plan

People have no security to warrant a loan from a bank

The bad reputation of the region makes the banks reluctant to invest in the node

Political mismanagement and complicated bureaucracy

Land tenure and land claims issues

No tradition of business and entrepreneurship means that many investors are met with mistrust

Potential solutions

Municipality initiative to guarantee the basic infrastructure

Workshops and training offered by the Chamber of Commerce

Locally-based initiatives for investment within the node

More transparency in approval and land claim processes

A proposed centre of excellence (CoE) to support municipality and local government and to bring investor confidence



OR TamboSelected sector: Tourism Key contacts

NameName Position /Position /organisationorganisation Reason to contactReason to contact

Vijay Makanjee CEO Hluma (Joint venture by DBSA and Old Mutual)

� Runs a R500 million investment fund

� Wants to invest in the Wild Coast

� Showed great interest in the Investment Atlas

Phumi Mokoena Co-ordinator: Eastern Cape Development Corporation

� Has good understanding of potential investments

� Engaged in fast-tracking stalled projects

Nokuzola Tetani Co-ordinator: Nelson Mandela Museum,Mthatha

� Key person for discussions about the proposed Freedom Route

� Has good understanding of the tourism sector in the area aroundMthatha

� Involved in developing a master plan for attractions around Nelson Mandela

Lope Quist LED Manager, Port St Johns

� Has a good understanding of LED

� Involved in developing Port St Johns as a major tourism centre

N/A Wilderness Foundation

� A key person to involve in discussions about investments and constraints on the Wild Coast

� Experienced how a major investment became stranded

� Could be used to test the concept of CoE



OR TamboSelected sector: Tourism Stranded projects

Many projects have failed in the implementation phase

Source: Eastern Cape Development Corporation; Monitor interviews

ImplementationImplementationFundingFundingBusiness planBusiness planIdeaIdea

Reasons for failure Reasons for failure

� Lack of transparency in the land claims process

� Complicated bureaucracy

– A planned R80 million investment was delayed for five years before approval was given

� Lack of capability within the municipality

– No spatial development framework

� Lack of capacity within the municipality

– A R60 million project has been stalled because documentation was lost by the involved department

� Competition between different government departments

– Several examples of how closed deals were declared invalid because certain stakeholders felt left out

� Lack of transparency in the land claims process

� Complicated bureaucracy

– A planned R80 million investment was delayed for five years before approval was given

� Lack of capability within the municipality

– No spatial development framework

� Lack of capacity within the municipality

– A R60 million project has been stalled because documentation was lost by the involved department

� Competition between different government departments

– Several examples of how closed deals were declared invalid because certain stakeholders felt left out



OR TamboSelected sector: Tourism Stranded Project – Hlungulwana Cultural Village in Coffee Bay

ConceptConcept Data and CommentaryData and CommentaryDescription The plan is to develop a resort facility with:

� Twenty free-standing self-catering units each accommodating five to six people

� Five boat houses

� A meeting hall/boma

� Slipway for ski-boat launching

Project cost R 22 million

Employment Direct: 25, indirect: 50

Reason for delay in approval

Project was held up due to the absence of spatial development planning framework for the area. The process of reaching the decision took approximately 22 months

Current status Awaiting the completion of the spatial development framework by KSD Municipality

Contact ECDC – Mthatha office

Municipality delays

Source: ECDC Mthatha



OR TamboSelected Sector: Tourism Stranded project – Mapuzi Fishing Village in Coffee Bay

ConceptConcept Data and commentaryData and commentary

Description The plan is to develop a resort facility with:

� Thirty rondawel-style accommodation units ( a traditional village)

� A restaurant seating 50 people

� Boardwalk and steps to provide access to the beach

Project cost R12 million



Project was held up due to the absence of spatial development planning framework for the area. The process of reaching the decision took approximately 22 months

Current status Awaiting the completion of the spatial development framework by KSD Municipality


Municipality delays




OR TamboSelected sector: Tourism Stranded project – The Ridge development in Coffee Bay


Description The plan is to develop a resort facility with:

� Fifty single-storey chalets

� A restaurant seating 50 people

� Traditional boma accommodating 100 people

� Bar and lounge seating for 150 people

� Swimming pool

� Curio shop

� Informal craft market




Five years of delays before approval was given

Current status Commencement has begun and the construction should be completed by 2008


Five-year delay




OR TamboSelected sector: Tourism Stranded project – Mkhweni Lodge in Pondoland


Description The developer, partnered with the community, to develop a resort establishment with

� Thirty-two luxury chalets overlooking Mpande Estuary just south of Port St Johns

� Restaurant and bar seating 30 people

� Swimming pool

� Boat launching area




Decision is being upheld due political interference by outsiders who feel left out of the process. A meeting has been scheduled for 25 August 2006 to attempt to solve the impasse. This development has been in the making for the past 11 years

Current status Project has been stalled


Stalled




OR TamboSelected sector: Tourism Stranded project – Mpande resort in Pondoland


Description The developer envisaged developing an 80-room hotel on a site from where his family was forcefully removed in the seventies. The development has been in the making since 1996 when the developer won the land claim case. A school, a clinic, as well as road, water and electricity infrastructure would have been made available to the community as part of the development




All the necessary steps were taken as dictated by the various government departments involved but a PTO (Permission To Occupy) was not granted due to the interference of senior people

Current status The project has to be restarted due to lost documentation by government departments


Political mismanagement




OR TamboSelected sector: Tourism Stranded project – Mkambathi Nature Reserve in Pondoland


Description Wilderness Safari, the largest eco-tourism company in South Africa, planned a major investment including a 5-star lodge in the reserve


Employment N/A


� Conflicts between factions of the provincial African National Congress

� According to the recently fired Eastern Cape Tourism and Economic Affairs minister the deal was invalid and must return to the drawing board

� Department of Land Affairs could not agree on the land tenure conditions in the deal

Current status � After spending more than R14 million on marketing, Wilderness Safari decided to stop the project in July 2006

� Five years of “haggling with politicians and bureaucrats” was enough for Wilderness Safari and the company is now looking for investment opportunities outside South Africa

Contact Wilderness Safari

Political interference

Source: Daily Dispatch Online 19 July, 2006



OR TamboSelected sector: Tourism Successful project – Amadiba Adventures

Source: International Trade in Services and Sustainable Development: The case of tourism in SA, International Institute for Sustainable Development 2003

The EU-supported Wild Coast initiative, Amadiba Adventures, is a successful community-owned initiative

Amadiba Adventures Amadiba Adventures

� A horse and hiking wilderness trail in the former Transkei

– Accommodation in tented lodges, hire of horses, tour-guiding and catering is supplied by small business enterprises owned by members of the local community

� Initiated by PondoCROP (a regional NGO) in conjunction with the Amadiba Coastal Community Development Association (ACCODA)

– The trail, use of land and the funds generated are all the property and responsibility of the Amadiba community

– PondoCROP and ACCODA work together with Triple Trust, an NGO focusing on skills development

� The project is part of the Wild Coast Spatial Development, mainly funded by European Union (EU) (R80 million)

� A horse and hiking wilderness trail in the former Transkei

– Accommodation in tented lodges, hire of horses, tour-guiding and catering is supplied by small business enterprises owned by members of the local community

� Initiated by PondoCROP (a regional NGO) in conjunction with the Amadiba Coastal Community Development Association (ACCODA)

– The trail, use of land and the funds generated are all the property and responsibility of the Amadiba community

– PondoCROP and ACCODA work together with Triple Trust, an NGO focusing on skills development

� The project is part of the Wild Coast Spatial Development, mainly funded by European Union (EU) (R80 million)

The three NGOs act as an interface between the EU and the local community

ACCODA

Community

Outcome Outcome � Today considered a business rather than only a pro-poor

project

� Significant positive impact on participating households

� Today considered a business rather than only a pro-poor project

� Significant positive impact on participating households

PondoCROP

EU

Triple Trust Reason for success Reason for success

� Not land tenure dependent

� Lots of pressure from the EU to reconstruct the project and bring it more in line with private sector norms

� Not land tenure dependent

� Lots of pressure from the EU to reconstruct the project and bring it more in line with private sector norms



OR Tambo


z Research process

z Overview

z Economy

– Overview




z Summary

z Appendix

� Description of current value chain� Growth constraints and solutions

� Potential for sector

� Past and current efforts



OR TamboSelected sector: AgricultureOverview of the agriculture sector

z Coastal climate with 25% of all of the rainfall in South Africa

z Poor basic infrastructure – Roads– Water and

irrigation

What do they rely on?What do they rely on?What do they rely on?

z Very few commercial farmers – Tea plantations – Sugar estates

z Most people farm in their garden– Field crops

Mainly maize– Vegetables

Mainly cabbage

– Livestock

What do they do / produce?

What do they do / What do they do / produce?produce?

z Maize is the only field crop with export potential

z Small-scale farmers totally lack access to the market

Who do they serve / target / sell to?

Who do they serve / Who do they serve / target / sell to?target / sell to?

Target marketsTarget marketsProductionProductionInputInput




OR TamboSelected sector: Agriculture Inputs

Poor infrastructure and land claims stop development of agricultural sector

Source: Department of Agriculture and Land Affairs, Monitor interviews

OverviewOverview

z Natural resources

– Receives 25% of all the rainfall in SA

– Many rivers potentially used for irrigation

z Capital assets

– People usually get about 2 ha from the traditional leaders to use for farming

– Land claims and land tenure issues stop development of large-scale farming

– Very poor infrastructure prohibits production

– Water and electricity is limited

– Road access is very poor

z Skills

– No commercial farmers and most of the small-scale farmers have limited skills

z Natural resources

– Receives 25% of all the rainfall in SA

– Many rivers potentially used for irrigation

z Capital assets

– People usually get about 2 ha from the traditional leaders to use for farming

– Land claims and land tenure issues stop development of large-scale farming

– Very poor infrastructure prohibits production

– Water and electricity is limited

– Road access is very poor

z Skills

– No commercial farmers and most of the small-scale farmers have limited skills



OR TamboSelected sector: Agriculture Inputs (continued)

No commercial livestock farmers but a large portion of the communal farmers in Eastern Cape

Source: Eastern Cape Livestock Census Figures 2003, Monitor interviews

Potential for livestockPotential for livestock Livestock census figures: 2003Livestock census figures: 2003

� Cattle

– Commercial 0 (0% of EC total)

– Communal 632,530 (31%)

� Sheep

– Commercial 0 (0%)

– Communal 1,225,244 (36%)

� Goats


– Communal 715,478 (38%)

� Pigs


– Communal 69,570 (57%)

� Poultry


– Communal 148,034 (16%)

� Cattle

– Commercial 0 (0% of EC total)

– Communal 632,530 (31%)

� Sheep


– Communal 1,225,244 (36%)

� Goats


– Communal 715,478 (38%)

� Pigs


– Communal 69,570 (57%)

� Poultry


– Communal 148,034 (16%)

Most goats inPondolandwhere the potential is

low!



OR TamboSelected sector: Agriculture Inputs (continued)

Large potential for forestry in OR Tambo, but limited due to infrastructure constraints

Source: Department of Water and Forestry

Areas of forestry potential within the Eastern Cape: 2006

Indicates good potential incorporating infrastructure constraintsIndicates moderate potential incorporating infrastructure constraints

Potential for an additional 50,000 ha of forestry development in OR Tambo

This will create 1,500 direct jobs, and 6,000 indirect jobs



OR Tambo

VegetablesVegetables

Selected sector: Agriculture Production

Source: Ntinga OR Tambo Development Agency, Monitor interviews, Department of Water and Forestry, Monitor analysis

OverviewOverview

� Less than 5% of the land is used for intensive agriculture

� Few significant agricultural producers

– Tea (Magwa Tea Estate is the second largest tea producer in South Africa)

– Sugar estates (production of sugar cane and sugar beet)

� Most of the agricultural activity is within the informal sector and on a very small scale

– Subsistence farmers: 84 %

– OR Tambo is by far the biggest communal livestock farming practice in the whole country

� Existing forestry plantations in the area – approximately 30,000 ha

� Less than 5% of the land is used for intensive agriculture

� Few significant agricultural producers

– Tea (Magwa Tea Estate is the second largest tea producer in South Africa)

– Sugar estates (production of sugar cane and sugar beet)

� Most of the agricultural activity is within the informal sector and on a very small scale

– Subsistence farmers: 84 %

– OR Tambo is by far the biggest communal livestock farming practice in the whole country

� Existing forestry plantations in the area – approximately 30,000 ha

Predominantly subsistence farming with maize as the basic crop

Four main productsFour main products

Field cropsField crops

� Maize 70%

� Beans 10%

� Pumpkin 10%

� Sorghum 10%

� Maize 70%

� Beans 10%

� Pumpkin 10%

� Sorghum 10%

LivestockLivestock

� On communal grazing

� Cattle and goats (Pondoland)

� Sheep (around Mthatha)

� On communal grazing

� Cattle and goats (Pondoland)

� Sheep (around Mthatha)

� Mainly along the rivers

� Cabbage 80%

� Potatoes and carrots 20%

� Mainly along the rivers

� Cabbage 80%

� Potatoes and carrots 20%

ForestryForestry

� Plantations in Pondoland

� Near Matiwane

� Softwood (pine) 90%

� Plantations in Pondoland

� Near Matiwane

� Softwood (pine) 90%



OR Tambo

Note: 1LSU=LiveStock Unit; 2The figures for commercial farmers are based on provincial data Source: Ntinga OR Tambo Development Agency, Monitor interviews

Production and PricesProduction and Prices

LivestockLivestock

� Gross income per LSU1 for commercial farmers was calculated at R1,2072

� The communal farmer equivalent is R309-R535

� Gross income per LSU1 for commercial farmers was calculated at R1,2072

� The communal farmer equivalent is R309-R535


� N/A

� N/A

Profitability Profitability

Production and pricesProduction and prices

Field cropsField crops ForestryForestry

LivestockLivestock

� For commercial farmers the off-take norm is 25-30%

� For communal farmers it is 5-7%

� For commercial farmers the off-take norm is 25-30%

� For communal farmers it is 5-7%


� N/A

� N/A

Field cropsField crops ForestryForestry

� N/A

� N/A

� N/A

� N/A

� Determined by market dynamics

� Long-term shortage in South Africa; therefore, prices are predicted to increase

� Determined by market dynamics

� Long-term shortage in South Africa; therefore, prices are predicted to increase

� Small margin in forestry plantations (40-year investment period)

� Margins increase with value-added processing

� Small margin in forestry plantations (40-year investment period)

� Margins increase with value-added processing

Selected sector: Agriculture Production (continued)



OR TamboSelected sector: Agriculture Production (continued)

Most of the agricultural production located to King Sabata Dalindyebo local municipality

Source: OR Tambo DM

Gross Geographic Product (GGP) in agriculture, OR Tambo District Municipality: 1996



OR TamboSelected sector: Agriculture Production (continued)


Projects

Name Description Implementer

Massive Food Programme Focus on food security (mainly vegetables) for homesteads OR Tambo Department of Agriculture

Syakole People with access to 1-49 ha are supplied with tools and fertilisers OR Tambo Department of Agriculture

“Big project” People with access to 50-200 ha are supplied with tools and fertilisers

OR Tambo Department of Agriculture

Comprehensive Agricultural Support Programme (CASP)

Infrastructure

� Irrigation equipment

� Dams

� Poultry / piggery houses

� Linkage to veterinary service

OR Tambo Department of Agriculture

Crop production Support to maize producing farmers (operations and input) Ntinga OR Tambo Development Agency

High value crops

Support programme for production of

� Vegetables

� Sorghum

� Essential oils

Ntinga OR Tambo Development Agency

Livestock development and red meat production

Support programme for production of � Beef

� Sheep

� Goat

Ntinga OR Tambo Development Agency

Examples of current agricultural projects in OR Tambo District Municipality



OR TamboSelected sector: Agriculture Target markets

Few people have access to the market and export is limited

z Markets / customers

– Very little export

Export of maize to be used for bio-fuels is the only crop planned

– Main markets are Gauteng and Free State

– Today all livestock products (primary and processed) are imported

1.7 million people buy milk, beef and mutton outside the node

– Export of pork meat from the Eastern Cape is prohibited

– Potential for export of goat meat to the Middle East

– Major markets for forestry plantations are Sappi’s pulp mill in Umkomaas, and the sawmills inKokstad

z Channel / interface

– Few people have access to the market. Most people sell their products to the local shop

z Marketing

– No targeted marketing campaign

z Competitors / threat of substitute products

– The tea industry is severely threatened by larger production facilities, e.g. in Tanzania

To survive the tea plantations try to convert into eco-tourism facilities

z Markets / customers

– Very little export

Export of maize to be used for bio-fuels is the only crop planned

– Main markets are Gauteng and Free State

– Today all livestock products (primary and processed) are imported

1.7 million people buy milk, beef and mutton outside the node

– Export of pork meat from the Eastern Cape is prohibited

– Potential for export of goat meat to the Middle East

– Major markets for forestry plantations are Sappi’s pulp mill in Umkomaas, and the sawmills inKokstad

z Channel / interface

– Few people have access to the market. Most people sell their products to the local shop

z Marketing

– No targeted marketing campaign

z Competitors / threat of substitute products

– The tea industry is severely threatened by larger production facilities, e.g. in Tanzania

To survive the tea plantations try to convert into eco-tourism facilities

Source: Ntinga OR Tambo Development Agency, Monitor interviews



OR Tambo

-18%

-13%

-8%

-3%

2%

7%

12%

17%

0% 1% 2% 3%

Sunflower seed

Selected sector: AgricultureGrowth of share of global exports vs share of global exports

Source: Monitor work done for the Department of Agriculture and Land Affairs, 2005

Share of global exports vs growth of share of global exports

Share of Global Exports

Gross value 2004/05

R5,000 million

Rye (0.06%, 106.20%)

Sugar cane (0.00%,

100.00%)

Cotton (0.07%, 48.32%)

IIIIVMaize

Groundnuts

Deciduous and other fruit

Oats (0.01%, 21.97%)

Viticulture

Citrus fruit

Wool3

Sheep and goats slaughtered

Pigs slaughtered

Tobacco

III

Grain sorghum

Subtropical fruit

Nuts

Vegetables

Potatoes

Poultry meat

Eggs

Cattle and calves slaughtered

Wheat

Barley

Dry peas

Soya beans

Milk1Dry beans

Growth of Share of Global Exports

Decreasing global exports for South Africa will make it harder for farmers in OR Tambo to enter the domestic maize market



OR TamboSelected sector: Agriculture Barriers / solutions related to Inputs


Poor basic infrastructure – many farmers without access to proper drainage, water supplies or electricity

Major upgrade of the basic services

Mainly emerging farmers with low skills levels Municipality initiative to train people

No tradition of large-scale farming – lack of understanding of irrigation, fertilisers and breeding

Mentoring programme with commercial farmers from other districts

Wrong breeding practices have led to breed of low quality

Mentoring programme with commercial farmers from other districts

Low quality of produced products – people tend to think that quantity is better than quality

Teach people agricultural processing and the value of high-quality products

Water and irrigation – barrier for medium and small farmers

Subsidies for irrigation systems granted to medium farmers


Lack of infrastructure and lack of skills impede future growth



OR TamboSelected sector: Agriculture Barriers / solutions related to target markets


Lack of proper road and rail network impedes forestry industry – getting produce to market

Extension of N2 to Port Edward, Kei Rail road network from East London to Mthatha

No understanding of market dynamics – people sell at whatever price they are offered in the local shops

Teach people market dynamicsGather people in co-operatives to increase their buying/selling power

No value-add processing within the node Potential for high volume produce to be processed in the node

Lack of interest from the meat industry in meat from communal land

Let the meat industry play an active role in any livestock improvement programme


Lack of road and rail network is a key impediment for forestry



OR TamboSelected sector: Agriculture Assessment of the potential of the agriculture sector

Investing in the agriculture sector will create jobs and enable other sectors to develop in the node

� Better roads and rail network

� Skills development of emerging farmers

� Better roads and rail network

� Skills development of emerging farmers

� Increase in production volumes

� Skills and networks developed

� Increase in production volumes

� Skills and networks developed

� Promote co-operatives between farmers

� Agricultural value-added processing inside the node

� Promote co-operatives between farmers

� Agricultural value-added processing inside the node

� Employment created

� Enhanced competitiveness with farmers outside the node

� Real economic growth

� Employment created

� Enhanced competitiveness with farmers outside the node

� Real economic growth

Sustainable growth in agriculture, and platform created for development of tourism

Ancillary service industries created (service stations, accommodation, etc)

Ste

p 1

Ste

p 2




OR TamboSelected sector: Agriculture Barriers / solutions to investments

Idea Business plan Funding Implementation

Blockages / barriers

People have no experience of writing a proper business plan

People have no security to warrant a loan from the bank

The bad reputation of the region makes the banks reluctant to invest in the node

When projects are implemented for emerging farmers, they are often left alone without the necessary network

Potential solutions

Municipality initiatives to provide basic infrastructure

Work shops and training programmes

Locally-based initiatives for investment within the node

Mentorship programmewith commercial farmersJoint ventures with larger farmersCo-operatives to share experiences



OR Tambo


z Research process

z Overview

z Economy

– Overview




z Summary

z Appendix



OR TamboInvestment opportunitiesMkambathi Nature Reserve

ConceptConcept Data and commentaryData and commentaryDescription � Developing accommodation in Mkambathi Nature Reserve covering 7,720 ha between Port Edward and

Port St Johns. According to market analysis the demand is – One 50-200 bed, 3-star hotel/resort– Two 24-48 bed, 4-star lodges– One 12-24 bed, 5-star lodge

� Parallel to this, an activity package needs to be developed

� Today there is not enough accommodation (in total 90 beds) in the reserve and many tourists choose better alternatives elsewhere on the coast

Economic rationale � The major attractions for tourists in EC are beach and nature reserves. By combining these two and at the same time offering upmarket accommodation, many visitors could be attracted to a region with currently untapped potential

� If the facilities are successfully developed it is believed that the number of visitors would be between 25,000 and 35,000 per year

Employment � The proposed scenario would create at least 175 permanent jobs for the establishments and an additional 17 for the park management

� Approximately 420 local jobs would be created over the construction period

Enabling conditions � Need for a new access road with an estimated cost of R80 million

� The tourism support infrastructure needs to be improved to the value of R8.4 million

Other � The required investment for the tourism products is R77,340,000

� The net present value at 5% discount rate over 30 years is R34 million for a fully outsourced commercialised option

� For a community-developed, operations-outsourced option, the net present value (NPV) using the same discount rate and time frame would be just over R31 million

Contact Intact Consulting

Documentation Feasibility study done by Intact Consulting, Cape Town in July 2006Source: Intact Consulting



OR TamboInvestment opportunities The Freedom Route


ConceptConcept Data and commentaryData and commentaryDescription � An internationally recognised tourist route in the Eastern

Cape stretching from the Wild Coast to the southern Drakensberg with a historical focus on the freedom struggle

Economic rationale

� The area currently has a negative image (bad roads, part of former Transkei)

� Establishment of the route will be used as a marketing tool to highlight the various attractions in the area

Employment � The successful establishment of the route will result in an upliftment in the tourism sector as a whole, which will result in a large-scale employment opportunity

Enabling conditions

� Upgrading of key roads across the area

� Large hotel development in Mthatha

� Buy-in from ECTB, ECDC, DEAT and municipalities

� Approval for branding of corridor

Other � Major investment required in rebuilding roads (between R60-R200 million)

� Route is designed to compete with Garden Route, Wine Route and Midlands Meander

Contact Rob Farrington, Dr Bool Smuts

Documentation Feasibility studies and interviews



OR TamboInvestment opportunities Commercial dairy enterprise

Source: FarmVision; Picture from www.optive.uk

ConceptConcept Data and commentaryData and commentaryDescription � Three areas around Port St John’s (Selwane, Mantusini and

Mbabalane) could use water from the nearby Umngazi River to irrigate land and create a good environment for cattle. The produced milk would be sold to a proposed processing plant in the vicinity of the project

� Milk production and processing are suppose to work on a co-operative basis where the plant has the right of first refusal of the milk and at the same time provides the farmers with access to a competitive market

Economic rationale

� By being the main supplier of high quality milk to the processing plant it is envisaged that a better milk price can befetched

Employment � For the milk production 15 permanent labourers are needed

� A high degree of management skills is necessary to effectively implement irrigation, fodder and fertilisers

Enabling conditions

� Approval from Dept of Water Affairs and Forestry (DWAF) is needed before water from Umngazi River can be used for irrigation. This is a critical point since the whole region should be under irrigation

� Today the farmers in the region have Permission To Occupy (PTO) the land. Potential land claim issues need to be investigated further

Other � The capital requirement is R13,080,000 (processing plant not included)

� The NPV of the net flow at a 13% discount rate, over a 10-year period, amounts to R1,046,564

Contact details Lieb Venter, Managing Director FarmVision, Tel: (042) 296-0818

Documentation Feasibility study from FarmVision available



OR TamboInvestment opportunities OR Tambo maize production

ConceptConcept Data and commentaryData and commentaryDescription � Although the region has high potential (soil,

climate) for crop production almost 70% of the croplands are left unused

� The major reason is that people cannot afford the costs of the operations involved

� The project aims to scale-up the maize production in the region

Economic rationale

� N/A

Employment � N/A

Enabling conditions

� Training is needed in order to give the farmers the right level of skills (chemicals, fertilisers, seed)

Other � Required funding is R18,376,015 which covers production, plant and equipment

Contact Maize Team, Department of Agriculture, OR Tambo DM

Documentation Business Plan

Source: Maize Team, Department of Agriculture, OR Tambo DM; Picture from www.gov.sz



OR TamboInvestment opportunitiesMqanduli milling plant

ConceptConcept Data and commentaryData and commentaryDescription � Establishing a plant wherein maize can be

transformed into samp, maize meal or feed (cattle, chicken or pig) as a by-product

� The purpose is to help the many subsistence farmers in the region transform into commercial farmers and also to use the raw material in the region and add value to it

Economic rationale

� N/A

Employment � Thirty low or semi-skilled jobs

� Six jobs requiring managing skills

Enabling conditions

� N/A

Other � An investment of R1.2 million is required over a period of three years before the plant will be self-sustaining

� The factory building and the milling equipment already exist

Contact details LED Manager, KSD Municipality, Tel: (047) 501-4006

Documentation Business Plan

Source: KSD Municipality

NB: This is just an illustration and not the milling plant in Mqanduli

NB: This is just an illustration and not the milling plant in Mqanduli



OR TamboInvestment opportunitiesXolobeni Mineral Sands

ConceptConcept Data and commentaryData and commentaryDescription � Mining the heavy mineral sand deposits of an estimated

346 million tonnes at 5.0% mineral content, located inPondoland on the Wild Coast. The lease area extends for 22 km along the coast from Mzamba River in the north to the Mtentu River in the south covering about 3,300 ha

Economic rationale

� Dry mining followed by mineral separation to produce the raw material for a smelter and iron plant producing slag and pig iron

Employment � The project would generate between 200 and 300 direct employment opportunities. The induced employment multiplier is believed to be 4.2 giving 840 to 1,260 additional employment opportunities

Enabling conditions

� Issues to be resolved include water requirements, road traffic to and from Xolobeni, and security of power supplies

� The affected land is owned by the state and held in trust for the local people. Re-settlements and resource loss to the local communities have to be compensated for

Other � Pre-feasibility work shows a 22-year life of mine for a US$220 million capital investment. In 2003 SRK Consulting completed a Desktop Mining Study confirming an indicative pre-tax NPV of US$129 million

Contact Mineral Commodities Ltd

Documentation Early review document

Source: Xolobeni Mineral Sands Project – presented by the Wilderness Foundation; Picture from www.mineralcommodites.com.au



OR TamboInvestment opportunities Example of investment process

Old Mutual / DBSA Investment Fund Old Mutual / DBSA Investment Fund

� R500 million fund – Mainly for projects > R30 million

� The joint-venture initiative is called Hluma Development Local Investment Agency

� The Wild Coast (including Mthatha) is the first area to be rolled out

– Three other regions are up for discussion

� Northern Cape

� North West

� Limpopo

� Need for investments since the major banks are reluctant to invest on the Wild Coast

– Land tenure– Safety issues– Low skills level within the municipality

� Focus areas are Mthatha, Port St Johns and Coffee Bay– Current projects mainly within the retail sector– Tourism identified as another high potential sector

� The structure of the deal is either equity or loan

� R500 million fund – Mainly for projects > R30 million

� The joint-venture initiative is called Hluma Development Local Investment Agency

� The Wild Coast (including Mthatha) is the first area to be rolled out

– Three other regions are up for discussion

� Northern Cape

� North West

� Limpopo

� Need for investments since the major banks are reluctant to invest on the Wild Coast

– Land tenure– Safety issues– Low skills level within the municipality

� Focus areas are Mthatha, Port St Johns and Coffee Bay– Current projects mainly within the retail sector– Tourism identified as another high potential sector

� The structure of the deal is either equity or loan

Note: DBSA = Development Bank of Southern AfricaSource: Monitor interviews

Decision process and involved stakeholders

Mandate Statement

Structure of Deal

Concept

Feasibility Study /

Business Case

Early Review Document

If Yes

Consultants (outsourced

function)

Board of Directors (Old

Mutual / DBSA)

Entrepreneur

Entrepreneur Hluma

Hluma

Board of Directors (Old

Mutual / DBSA)

The Investment Atlas would facilitate the process where a project is outlined andtaken to the Board of Directors

Inve

stm

ent A

tlas

to fa

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ate

this

par

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OR Tambo


z Research process

z Overview

z Economy

– Overview




z Summary

z Appendix

� Understanding the node

� Potential sources of economic growth – Short term

� Potential sources of economic growth – Long term

� Assessment of current activities

� What needs to be done now?



OR TamboSummaryUnderstanding the OR Tambo poverty node

� Negative perception� No commercial

investment

� Poor economy

� Rural

� Lacks infrastructure

� Potential for tourism

� No tourism strategy

� Land tenure

� Potential for crop and livestock farming

� Mainly subsistence farming

� Skills gap

Key observations from OR Tambo

OverviewOverview

Economy, overview

Economy, overview

Economy, tourism

Economy, tourism

Economy, agricultureEconomy, agriculture

Key characteristics of node

� Part of the former Transkei – negative perceptions

� Densely populated

� Lack of significant commercial investment

� Lack of basic infrastructure (roads, water and electricity)

� Ninety per cent rural

� GDP per capita is 33% of the Eastern Cape average

� Seventy-two per cent of households lack electricity

� Eighty-four per cent of households lack piped water

� Underdeveloped sector constrained by lack of infrastructure

� Many areas of natural beauty and many unique leisure activities (untouched coastline, mountains, wildlife)

� Land tenure is a barrier

� No collective marketing strategy

� Lack of infrastructure adds cost and limits productivity (roads, water)

� Both crops and livestock farming in the node

� Mainly subsistence farming

� Lack of skill



OR TamboSummary Potential sources of economic growth – short term

Economic growth of firm in node

Increase sales?

Where to focus?

Skills gap with municipality

� Sector-related expertise is required

– Forestry

– Tourism

� Capability to deal with potential private sector investments

Provide new product / service

Forexport

Import substitution

Increase quality of current offering

Skills Other

Decrease cost?

Purchases Labour Infra-structure

Other

Address skills gap with subsistence farmers

� Training in production techniques

� Selling and marketing skills

Create a market for selling produce

� Crops

� Livestock

� Provide farmers with transparency on market prices

Key focus area

Not a focus area



OR TamboSummary Potential sources of economic growth – long term

Economic growth of firm in node

Increase sales?

Provide new product / service

Forexport

Import substitution

Increase quality of current offering

Skills Other

Decrease cost?

Purchases Labour Infra-structure

Other

Estimate of cost structure of average firm in node

Where to focus?

Value-added processing in the node for agricultural products

� Increases growth and employment in the node

� Stimulates large private sector investment in the node

� Demand for ancillary services created (garages, accommodation, etc)

Collective marketing strategy incorporating all the attractions and activities in this andneighbouring areas is needed

� Creates awareness of the available tourist attractions in the node

� Changes negative perceptions about the node

� Increases volume of tourists to the node

Encourage private sector investment

� Transparency on land tenure process

� Establish a PPP model



OR TamboSummary Assessment of current activities


What is being done?What is being done?

� Development of Mthatha as commercial centre

� Different agricultural projects

– Maize

– Vegetables

– Essential oils

– Livestock

� High level tourism strategy

� Development of a forestry cluster

Strategic choice?

Do more of the same

Do different things; do things differently

� Some work is being done on the agricultural sector

� No real focus

� More skills development has to happen in the node, especially within the municipalities



OR TamboSummary What needs to be done now?


Solutions to constraints / investment opportunitiesSolutions to constraints / investment opportunities

� Improve basic road, water and electricity infrastructure

� Make the land claim / land tenure process more transparent

� Create a public-private sector model to incentivise private sector investment in the tourism and forestry sector

� Develop marketing strategy for the node

� Address skills gap for subsistence farmers

� Address skills gap within municipalities

Requires involvement ofkey stakeholders

� OR Tambo Municipality

� All local municipalities

� dplg

� Department of Trade and Industry (DTI)

� Department of Environmental Affairs & Tourism (DEAT)



OR Tambo


z Research process

z Overview

z Economy

– Overview




z Summary

z Appendix

Itineraries of field trips

Key stakeholders

Key documentation

Photo collages



OR TamboAppendixItineraries of field trips

Monday, 24 July 2006Monday, 24 July 2006

Tuesday, 25 July 2006Tuesday, 25 July 2006

Wednesday, 26 July 2006Wednesday, 26 July 2006

Thursday, 27 July 2006Thursday, 27 July 2006

Friday, 28 July 2006Friday, 28 July 2006

Travel schedule / locationsTravel schedule / locationsTravel schedule / locations Main activitiesMain activitiesMain activities

� Early flight from Johannesburg toMthatha

� Kick off with the local champion

� Meeting with the municipality manager for strategic development

� Meeting with ECDC in Mthatha

� Drive from Mthatha to Coffee Bay

� Meeting with Ntinga OR Tambo development agency in Mthatha

� Meeting with owner of Coffee Bay Hotel

� Coffee Bay – Mthatha – Coffee Bay

� Meeting with the municipality manager for SMMEs

� CEO of Old Mutual/DBSA investment fund

� LED manager in KSD

� Coffee Bay – Mthatha

� Meeting with the Department of Agriculture

� Meeting at the Nelson Mandela museum

CommentsCommentsComments

� Lots of dead time because of delayed meetings

� Working day in Coffee Bay with follow-ups, data gathering and phone calls

� Received maps and other electronic information from the municipality‘s IT department

� Two confirmed meetings cancelled at the last minute

� In Mthatha

� Drive from Mthatha to the Wild Coast and accommodation for the weekend

� Meeting with Department of Economic Affairs, Environment and Tourism (DEAET)

� Meeting with Simpiwe Somdyala -KDBS Consulting

� Meeting with DEAT

� One confirmed meeting cancelled without further notice



OR TamboAppendix Itineraries of field trips (continued)

Monday, 31 July 2006Monday, 31 July 2006

Tuesday, 1 August 2006Tuesday, 1 August 2006

Wednesday, 2 August 2006Wednesday, 2 August 2006

Thursday, 3 August 2006Thursday, 3 August 2006

Travel schedule / locationsTravel schedule / locationsTravel schedule / locations Main activitiesMain activitiesMain activities

� Drive from the Wild Coast back toMthatha

� Mthatha – Port St John’s

� Meeting with Graham Harrison

� Follow-up meeting with the local champion

� OR Tambo LED manager

� Ntinga development agency

� Meeting with Dept of Agriculture

� Port St Johns – Bizana – Port St John’s

� Meeting with the LED manager and the LED working group in Bizana

� In Port St John’s

� Meeting with the LED manager in Port St John’s

� Wild Coast Development Forum

� Port St John’s – Mthatha

� Flight from Mthatha back to Johannesburg

� Meeting with Majola Tea Estate close to Port St John’s

CommentsCommentsComments

� Many good meetings and lots of information received

� Six hours of driving� Smaller towns like Flagstaff, Lusikisiki

and Bizana visited



OR TamboAppendix Key stakeholders, actors, information carriers

GovernmentGovernmentGovernment Private sector / business

Private sector / Private sector / businessbusiness Local peopleLocal peopleLocal peoplePublic sectorPublic sectorPublic sector NGOsNGOsNGOs OtherOtherOther

LED Manager KSD Local Municipality

= have appointment= have met = key person, suggest to

involve in future discussions

Department of Agriculture

SMME Manager of OR Tambo DM

DEAT

OR Tambo

DEAET

OR Tambo

Department for Strategic

Development

LED Manager OR Tambo DM

LED Manager Bizana Local Municipality

Ntinga OR Tambo Development

Agency

Eastern Cape Tourism Board

Eastern Cape Development Corporation

Nelson Mandela Museum

Owner of the Ocean View Hotel

in Coffee Bay

Old Mutual / DBSA Investment

Fund

Wilderness Safari

Simpiwe Somdyala /KDBS

Consulting

Majola Tea Estate

Magwa Tea Estate

The PondolandSugar Company

Ken Small (landownerUmdumbi)

Vuyiswa Dlabutshe

Wilderness Foundation

ACCODA

PondoCROP

Triple Trust

European Union

= have appointment

The Wild Coast Sun hotel

= referred to



OR TamboAppendix Key stakeholders, actors, information carriers (continued)

GovernmentGovernmentGovernment Private sector / business

Private sector / Private sector / businessbusiness Local peopleLocal peopleLocal peoplePublic sectorPublic sectorPublic sector NGOsNGOsNGOs OtherOtherOther

LED Manager Port St Johns

Local Municipality

= have appointment= have met = key person, suggest to

involve in future discussions

= have appointment= referred to



OR Tambo

TitleTitleTitle

OR Tambo IDP Report 2006/2007

Author / org.

Author / Author / org.org. YearYearYear

OR Tambo District

Municipality2006

Main issues coveredMain issues coveredMain issues covered

Planning report for the district municipality

King Sabata Dalindyebo IDP Report 2005/2006 KSD Local Municipality 2005Planning report for the local municipality

Ntinga OR Tambo Development Agency –2004/2005 Annual Performance Report

OR Tambo District

Municipality2005Review of economic activity in OR Tambo

Mqanduli Milling Plant KSD Municipality 2006Revised business plan

Xolobeni Mining Sands Wilderness Foundation 2005Background and basic feasibility study

Major Tourism initiative in Pondoland Grant Thornton 2005Major tourism project in the Xolobeni area –Comparison with the mining project

KEI Rail Development Corridor: Economic Initiative

2005Overview of Kei Rail project and its major stakeholders

Economic Profile of OR Tambo District Municipality

Eastern Cape Socio-Economic

Consultative Council (ECSECC)

2002

tick if on file

Overview of the municipality and its economic sectors

Eastern Cape Department of

Transport

Appendix Key documentation



OR TamboAppendix Key documentation (continued)

TitleTitleTitle

Cluster-based Local Economic Development

Author / org.


Simpiwe Somdyala 2003


Cluster based economies – theory and concepts

LED Implementation strategyOR Tambo


2002Assessment of the local economy and the LED initiatives

Vulindela Study ReportOR Tambo


N/AStudy of SMMEs in OR Tambo

OR Tambo Regeneration Strategy KDBS / Dube N/ACluster based economic strategy for OR Tambo

Vision 2030 KBDS N/AEconomic Development Strategy for OR Tambo

The South African Forestry and Forest Products Industry 2002

Forestry South Africa 2002Overview of the forestry sector in South Africa

The Eastern Cape Forestry sector potential N/AOverview of the forestry sector in Eastern Cape

Spatial Development FrameworkOR Tambo


N/A

tick if on file

Current spatial patterns and development strategies

Simpiwe Somdyala




TitleTitleTitle

Mkambathi Nature Reserve

Author / org.


Intact Consulting, Cape Town

2006


Tourism feasibility study

Singisi Forest Products Singisi Forest Products Ltd N/AOverview of projects in the Langeni area

Eastern Cape Park Board ECTB 2004Strategy 2004/2005

SDF and state of the district economy KBDS N/AOverview of the district’s economy

Wild Coast conservation and sustainable development project

CSIR Environmentek 2005Resource use and land tenure in the Wild Coast

Eastern Cape Project list DEAT 2006Overview of the DEAT’s project in the Eastern Cape

Project List 2006Overview of current projects in South Africa

Capital Investment FrameworkOR Tambo


2006

tick if on file

Financial section of the Spatial Development Framework

DEAT




TitleTitleTitle

Proposed Tourism Sector Development Plan

Author / org.


Ntinga OR Tambo Dev.

Agency2006


Strategy to develop the tourism sector

Proposal for Livestock MarketingNtinga OR

Tambo Dev. Agency

2003Marketing strategy for communal farmers

Business Plan for Livestock ImprovementProgramme

Ntinga OR Tambo Dev.

Agency2003Improved output from livestock

Five-year Agricultural Development PlanOrganised Agriculture,

Eastern regionN/AFramework aimed at sustaining agricultural

growth and economic development

Port St John’s Local Municipality IDP Report 2006/2007

Port St John’s Local

Municipality2006Planning report for the local municipality

Port St John’s Spatial Development Framework Port St John’s

Local Municipality

2006Current spatial patterns and development strategies

Port St John’s LED plan 2005Current plan for local economic development

Status Quo ReportMlungiseleli

Rural Development

Consulting 2006

tick if on file

Review of the state of Agri-business in Port St John’s

Port St John’s Local

Municipality




TitleTitleTitle

Port St John’s Dairy Project

Author / org.


FarmVision 2005


Feasibility study

tick if on file



OR TamboAppendix Photo collage #1 – Constraints to economic growth

The absolute majority live in rural

areas


areas

Poor road conditionsPoor road conditionsA rural area with huge infrastructural backlogs A rural area with huge infrastructural backlogs

Land claim and land tenure issuesLand claim and land tenure issuesHigh crime rate and bad reputationHigh crime rate and bad reputation



OR TamboAppendix Photo collage #2 – Opportunities for investments


areas


areas

Development of the forestry sectorDevelopment of the forestry sectorThe Wild Coast and its beautiful beaches The Wild Coast and its beautiful beaches

Attractions around Nelson Mandela’s birthplace Attractions around Nelson Mandela’s birthplace Scenic mountains with hiking trailsScenic mountains with hiking trails



OR TamboAppendix Photo collage #3 – People of the node


areas


areas

Children travelling to school Children travelling to school Vibrant street life in FlagstaffVibrant street life in Flagstaff

Tourists enjoying the unspoilt natureTourists enjoying the unspoilt nature Large distances and expensive taxis force people to walk several hours every day



OR TamboAppendix Photo collage #4 – Businesses of the node


areas


areas

A thriving retail sectorA thriving retail sectorB&Bs and holiday resorts B&Bs and holiday resorts

Petrol stations serving the traffic on the N2Petrol stations serving the traffic on the N2 The informal sector is huge. Here a hairdresserThe informal sector is huge. Here a hairdresser