dr kenneth kaunda · 2020. 11. 12. · dr kenneth kaunda district municipality is a region with a...

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DR KENNETH KAUNDA District NW

Table of Contents

1. EXECUTIVE SUMMARY ................................................ Error! Bookmark not defined.

2. INTRODUCTION: BRIEF OVERVIEW ...................................................................... 5 2.1. Location ................................................................................................................................................. 5 2.2. Historical Perspective............................................................................................................................ 5 2.3. Spatial Status ......................................................................................................................................... 5 2.4. Land Ownership .................................................................................................................................... 6

3. SOCIAL DEVELOPMENT PROFILE ........................................................................ 6 3.1. Key Social Demographics ...................................................................................................................... 6 3.1.1. Population.............................................................................................................................................. 6 3.1.2. Race Gender and Age ............................................................................................................................ 7 3.1.3. Households ............................................................................................................................................ 9 3.1.3.1. Child Headed..................................................................................................................................... 9 3.1.3.2. Women Headed .................................................................................. Error! Bookmark not defined. 3.2. Health Profile ......................................................................................................................................... 9 3.3. Covid 19 ............................................................................................................................................... 11 3.3.1. Number of cases ...................................................................................... Error! Bookmark not defined. 3.3.2. Quarantine Facilities Available and Assessed ........................................ Error! Bookmark not defined. 3.3.3. Infrastructure (responding to COVID 19) ............................................... Error! Bookmark not defined. 3.4. Poverty Dimensions ............................................................................................................................ 12 3.4.1. Distribution .............................................................................................. Error! Bookmark not defined. 3.4.2. Inequality ............................................................................................................................................. 12 3.4.3. Employed /Unemployed ...................................................................................................................... 13 3.4.4. Crime .................................................................................................................................................... 14 3.5. Education and Skills Profile ................................................................................................................. 16

4. DRIVERS OF THE ECONOMY ......................................................................................... 17 4.1. Structure of the Economy ................................................................................................................... 17 4.2. Primary Sector ..................................................................................................................................... 17 4.2.1. Mining and Agriculture ........................................................................... Error! Bookmark not defined. 4.3. Secondary Sector ................................................................................................................................ 17 4.3.1. Manufacturing, electricity and the construction ................................... Error! Bookmark not defined. 4.4. Tertiary Sector ..................................................................................................................................... 18 4.4.1. Trade, transport, finance and the community ....................................... Error! Bookmark not defined.

5. SERVICE DELIVERY ............................................................. Error! Bookmark not defined. 5.1. Water and Sanitation .......................................................................................................................... 19 5.1.1. Access to Water ....................................................................................... Error! Bookmark not defined. 5.1.2. Sanitation................................................................................................. Error! Bookmark not defined. 5.2. Human Settlements ............................................................................................................................ 19 5.3. Waste Management ........................................................................................................................... 20 5.4. Roads and Transport ........................................................................................................................... 21 5.5. Electricity ............................................................................................................................................. 21

6. GOVERNANCE AND MANAGEMENT .............................................................................. 22 6.1. Municipality Performance .................................................................................................................. 22 6.2. Municipal Capacity .............................................................................................................................. 26 6.3. Traditional Affairs Governance ........................................................................................................... 27

7. PROJECTS TO DIVERSIFY AND GROW PEOPLE AND THE ECONOMY ................................... 27 7.1. Social Development Projects .............................................................................................................. 27 7.2. Spatial Development ........................................................................................................................... 28 7.3. Infrastructure Projects ........................................................................................................................ 29 7.4. Economic Projects .................................................................................. Error! Bookmark not defined. 7.5. Environmental forecast ...................................................................................................................... 30

8. KEY RECOMMENDATIONS ......................................................................................... 314 8.1. Prioritise Integrated Development Plan ............................................ Error! Bookmark not defined.

1. Executive Summary

The Dr Kenneth Kaunda District is situated at the southern part of the North West Province

and borders both the Gauteng and Free State Provinces. It consists of three (3) local

municipalities i.e. Maquassi Hills, Matlosana and JB Marks. Between 2006 and 2009 the

district comprised of five local municipalities which included Merafong City Council, which

has since been re-demarcated into the Gauteng Province. After the 2016 Local Government

elections, Tlokwe and Ventersdorp Local Municipalities were merged into the JB Marks Local

Municipality.

The total population of the Dr Kenneth Kaunda District Municipality increased from 695 934

in 2011 to 742 822 in 2016. The population is unevenly distributed among the four local

municipalities and the average annual growth rate of the district is 1.07% between 2011 and

2016. In 2016 the total number of households in the District was 240 544, with 37.1% headed

by women and 988 child-headed households.

In respect of COVID-19, as of 6 July 2020, a total of 154 979 people were screened with 1599

confirmed cases, 1172 active cases, 409 recoveries and with the highest number of death of

18.The District has seven quarantine sites with 240 beds however one site at the

Potchefstroom Dam with 114 beds is not yet ready, therefore 126 are active beds. In

response to Covid-19 pandemic, the district have established the District Command Council

(DCC) chaired by the Mayor of the distict which meets on weekly basis.

Annual GDP growth in the Dr Kenneth Kaunda District Municipality broadly follows the

national trend, though it is generally lower than both the national and provincial averages. A

fairly stagnant economic growth trend has been observed within the District, i.e. the rate of

growth has remained fairly constant and negative growth rates were experienced on average

between 2014 and 2016.

Mining has historically been the main economic activity within the Dr Kenneth Kaunda District

Municipality, and with the industry in steady decline the District is seeking to diversify the

economy from its over-reliance on the mining industry. To this end, the Dr Kenneth Kaunda

District Municipality Local Economic Development (LED) policy identified three priority

sectors earmarked for growth and development which is Tourism, Agriculture and

Manufacturing. The District is confronted by a number of socio-economic and economic

challenges, including high levels of poverty and unemployment, low education and skills

levels and a relatively underdeveloped tourism sector.

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2. 2. Introduction: Brief Overview

2.1 Location

The Dr Kenneth Kaunda District Municipality is situated at the southern part of the North West

Province, consisting of three local municipalities i.e. Matlosana, JB Marks and Maquassi Hills.

The District borders both Gauteng and Free State Provinces.

2.2 Historical Perspective

Dr Kenneth Kaunda District Municipality is a region with a rich and diverse natural and cultural

heritage, with the potential for sustained economic growth. The district was formerly known

as the Southern District Municipality however, it is named after Kenneth Kaunda, the first

President of Zambia. The region is home to some of the most prominent gold mines in the

world and one of the oldest meteor impact sites in the world.

2.3 Spatial Status

Dr Kenneth Kaunda District Municipality comprises of three local municipalities, i.e. JB Marks,

Maquassi Hills and Matlosana City. Dr Kenneth Kaunda District comprises of four Sub-

Districts. Most of the population resides in Matlosana and Tlokwe, which are peri-urban

areas. There are two rural Sub-Districts: Ventersdorp and Maquassi Hills. All the Sub-Districts

have mining activities. It is located 65km south-west of Johannesburg and borders the

Gauteng Province on that side.

The district is serviced by a number of primary roads, with the N12 Treasure Corridor forming

the main development axis in the district and serving as a potential concentration point for

future industrial, commercial and tourism development.

2.4 Land Ownership

The land ownership in the Dr Kenneth Kaunda District Municipality is significant to ensure

that the residents of the district enjoys a liveable and prosperious life. However, the district

owns very little land in the region which makes it difficult to achieve its set goals. The map

below depicts the size of the land ownership patterns in Dr KK District Municipality.

3. Social Development Profile

3.1 Key Social Demographics

3.1.1 Population

According to IHS Markit report, Dr Kenneth Kaunda District Municipality has an estimated

809 000 people in the region and housed 1.4% of South Africa's total population in 2019.

Between 2009 and 2019 the population growth averaged 1.77% per annum which is very

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similar than the growth rate of South Africa as a whole (1.61%). Compared to North-West's

average annual growth rate (1.97%), the growth rate in Dr Kenneth Kaunda's population at

1.77% was very similar than that of the province.

The JB Marks Local Municipality increased the most, in terms of population, with an average

annual growth rate of 2.4%, the Maquassi Hills Local Municipality had the second highest

growth in terms of its population, with an average annual growth rate of 1.6%. The City of

Matlosana Local Municipality had the lowest average annual growth rate of 1.46% relative to

the other within the Dr Kenneth Kaunda District Municipality. The number of wards per local

municipality is City of Matlosana (39), JB Marks (34) and Maquassi Hills (11) for a total of 84

wards in the District.

3.1.2 Gender, Age and Race

The total population of a region is the total number of people within that region measured in

the middle of the year. Total population can be categorised according to the population group,

as well as the sub-categories of age and gender. The population groups include African,

White, Coloured and Asian, where the Asian group includes all people originating from Asia,

India and China. The age subcategory divides the population into 5-year cohorts, e.g. 0-4, 5-

9, 10-13, etc.

Male Female Total

Dr Kenneth Kaunda 395,334 414,107 809,441

Bojanala Platinum 975,074 873,059 1,848,133

Ngaka Modiri Molema 468,252 493,707 961,960

Dr Ruth Segomotsi Mompati 250,530 271,876 522,406

North-West 2,089,190 2,052,749 4,141,939

Source: IHS Markit Regional eXplorer version 1946

Dr Kenneth Kaunda District Municipality's male/female split in population was 95.5 males per

100 females in 2019. The Dr Kenneth Kaunda District Municipality appears to be a fairly

stable population with the share of female population (51.16%) being very similar to the

national average of (51.04%). In total, there were 414 000 (51.16%) females and 395 000

(48.84%) males. This is different from the North-West Province as a whole where the female

population counted 2.05 million which constitutes 49.56% of the total population of

4.14 million.

Table: Population by population group, gender and age - Dr Kenneth Kaunda District Municipality, 2019

[number].

African White Coloured Asian

Female Male Female Male Female Male Female Male

00-04 34,800 36,000 2,220 2,320 1,670 1,760 352 343 05-09 37,600 39,100 2,490 2,690 1,550 1,770 495 346 10-14 33,800 34,300 2,590 2,770 1,430 1,680 213 364 15-19 23,700 23,900 2,810 2,790 1,130 1,310 229 311 20-24 26,100 24,300 4,050 4,080 1,400 1,430 288 455 25-29 31,300 27,900 2,920 2,910 1,360 1,460 232 523 30-34 32,300 28,300 3,320 3,260 1,300 1,420 449 548 35-39 24,800 25,800 3,600 3,550 1,040 1,100 492 540 40-44 20,100 20,000 3,480 3,340 951 913 393 589 45-49 17,500 15,700 3,330 2,950 953 783 252 366 50-54 15,700 14,200 3,040 2,430 881 824 238 169 55-59 14,800 13,200 2,980 2,630 862 580 249 177 60-64 11,600 10,300 3,400 2,860 669 405 116 98 65-69 7,670 6,410 3,360 2,550 422 369 156 63 70-74 4,970 4,260 3,010 2,460 344 239 131 47 75+ 5,160 3,380 5,100 3,520 268 181 217 66

Total 342,000 327,000 51,700 47,100 16,200 16,200 4,500 5,000


In 2019, the Dr Kenneth Kaunda District Municipality's population consisted of 82.61% African

(669 000), 12.21% White (98 800), 4.01% Coloured (32 500) and 1.17% Asian (9 510)

people. The largest share of population is within the young working age (25-44 years) age

category with a total number of 250 000 or 30.9% of the total population. The age category

with the second largest number of people is the babies and kids (0-14 years) age category

with a total share of 30.0%, followed by the older working age (45-64 years) age category

with 144 000 people. The age category with the least number of people is the retired / old

age (65 years and older) age category with only 54 400 people, as reflected in the population

pyramids below.

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3.1.3 Households

According to the IHS Markit, the Dr Kenneth Kaunda District Municipality comprised of 241

000 households in 2019. This equates to an average annual growth rate of 1.77% in the

number of households from 2009 to 2019. With an average annual growth rate of 1.77% in

the total population, the average household size in the Dr Kenneth Kaunda District

Municipality is by implication decreasing. This is confirmed by the data where the average

household size in 2009 decreased from approximately 3.4 individuals per household to 3.4

persons per household in 2019.

Table: Number of households - Dr Kenneth Kaunda, North-West and national total, 2009-2019 [number

percentage]

Dr Kenneth

Kaunda North-West National Total

Dr Kenneth Kaunda as % of

province

Dr Kenneth Kaunda as % of

national

2009 202,000 996,000 13,900,000 20.3% 1.46% 2010 205,000 1,020,000 14,100,000 20.0% 1.46% 2011 209,000 1,050,000 14,400,000 19.8% 1.45% 2012 213,000 1,080,000 14,700,000 19.7% 1.45% 2013 216,000 1,110,000 15,000,000 19.5% 1.44% 2014 219,000 1,130,000 15,300,000 19.4% 1.43% 2015 224,000 1,160,000 15,700,000 19.4% 1.43% 2016 230,000 1,190,000 16,100,000 19.4% 1.43% 2017 231,000 1,200,000 16,400,000 19.2% 1.41% 2018 235,000 1,230,000 16,700,000 19.1% 1.40% 2019 241,000 1,260,000 17,000,000 19.1% 1.41% Average Annual growth 2009-2019 1.77% 2.36% 2.09%


Relative to the province, the Dr Kenneth Kaunda District Municipality had a lower average

annual growth rate of 1.77% from 2009 to 2019. In contrast, the South Africa had a total of

17 million households, with a growth rate of 2.09%, thus growing at a higher rate than the Dr

Kenneth Kaunda.

The composition of the households by population group consists of 77.3% which is ascribed

to the African population group with the largest number of households by population group.

The White population group had a total composition of 17.3% (ranking second). The Coloured

population group had a total composition of 4.0% of the total households. The smallest

population group by households is the Asian population group with only 1.4% in 2019.

3.2 Health Profile

According to the Mortality and Causes of Death in SA, 2015, (a publication of Statistics SA)

the major causes of death in the Dr Kenneth Kaunda District Municipality measured in 2015

were led by non-natural causes at 9.5%, followed by tuberculosis at 8.9%. In 2019, 104 000

people in the Dr Kenneth Kaunda District Municipality were infected with HIV. This reflects

an increase at an average annual rate of 2.20% since 2009, and in 2019 represented 12.80%

of the district municipality's total population. The North-West Province had an average annual

growth rate of 2.54% from 2009 to 2019 in the number of people infected with HIV, which is

higher than that of the Dr Kenneth Kaunda District Municipality.

The Dr Kenneth Kaunda District Municipality has the least number of Public Health Clinic

(PHC) facilities in the North West, with three regional and one district hospital. The district

has a 40-bed in patient Community Health Centre and, has added another 20-bed PHC

facility with imaging services and a procedure room. Health services are delivered by one

Regional; three District Hospitals; nine Community Health Centers; twenty-seven clinics; six

satellite clinics and two mobile health service units.

Service Delivery Platforms

Number of facilities by level, 2017 2018

Sub District

Ward Based outreach

teams

Clinic

Community Health

Centre

District Hospita

l

Regional

hospitals

Central/ tertiary

Hospitals

Other hospital

s

Maquassi Hills 13 6 2 1 0 0 0

Matlosana 36 13 4 0 0 1 5

JB Marks 35 12 4 0 1 0 3

Dr. Kenneth Kaunda 84 31 10 1 1 1 8 Source: DHIS

The figure below illustrates the causes of deaths in the Dr Kenneth Kaunda District

Municipality.

Figure: Percentage of Major Causes of Death

Source: Statistics SA, Mortality and Causes of Death in SA, 2015

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3.3 COVID - 19

In respect of COVID-19, as of 6 July 2020, a total of 154 979 people were screened with 1599

confirmed cases, 1172 active cases, 409 recoveries and with the highest number of death of

18.

Source: Department of Health, 2020

The District has seven quarantine sites with 240 beds however one site, i.e. Potchefstroom

dam with 114 beds is not yet ready, therefore 126 are active beds. In response to Covid-19

pandemic, the district established the District Command Council chaired by the Mayor of the

distict which meets on weekly basis. A number of other COVID-19 interventions relating to

the provision of water tanks and the DSD feeding programmes have been implemented in

the District.

3.4 Poverty Dimensions

3.4.1 Distribution

According to the IHS Markit report, there were 491 000 people living in poverty, using the

upper poverty line definition, across Dr Kenneth Kaunda District Municipality in 2019 - this is

21.82% higher than the 403 000 in 2009. The percentage of people living in poverty has

increased from 59.35% in 2009 to 60.69% in 2019, which indicates an increase of -1.34

percentage points. In 2019, the population group with the highest percentage of people living

in poverty was the African population group with a total of 70.2% people living in poverty,

using the upper poverty line definition.

The proportion of the African population group, living in poverty, decreased by 0.987

percentage points, as can be seen by the change from 71.15% in 2009 to 70.17% in 2019.

In 2019 3.56% of the White population group lived in poverty, as compared to the 3.20% in

2009. The Asian and the Coloured population group saw a decrease in the percentage of

people living in poverty, with a decrease of -6.97 and 0.736 percentage points respectively.

3.4.2 Inequality

In 2019, the Gini coefficient in Dr Kenneth Kaunda District Municipality was at 0.608, which

reflects a marginal increase in the number over the ten-year period from 2009 to 2019. The

North-West Province and South Africa, both had a more unequal spread of income amongst

their residents (at 0.613 and 0.63 respectively) when compared to Dr Kenneth Kaunda District

Municipality.

Furthermore, the Dr Kenneth Kaunda District Municipality had a Human Development Index

(HDI) of 0.641 compared to the North-West with a HDI of 0.628 and 0.662 of National Total

as a whole in 2019. Seeing that South Africa recorded a higher HDI in 2019 when compared

to Dr Kenneth Kaunda District Municipality which translates to worse human development for

Dr Kenneth Kaunda District Municipality compared to South Africa. South Africa's HDI

increased at an average annual growth rate of 1.44% and this increase is higher than that of

Dr Kenneth Kaunda District Municipality (1.40%).

In terms of the Gini coefficient for each of the regions within the Dr Kenneth Kaunda District

Municipality, JB Marks Local Municipality has the highest Gini coefficient, with an index value

of 0.624. The lowest Gini coefficient can be observed in the Maquassi Hills Local Municipality

with an index value of 0.588.

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3.4.3 Employed /Unemployed

High unemployment in Dr Kenneth Kaunda District Municipality remains a challenge and

mostly affecting the youth. Government continues to combat this challenge through the

Expanded Public Work Programmes (EPWP) launched in March 2004 including to improving

the education system that is capable of producing competent participants in the economy. In

2019, Dr Kenneth Kaunda employed 185 000 people which is 19.99% of the total employment

in North-West Province (927 000), 1.13% of total employment in South Africa (16.4 million).

Employment within Dr Kenneth Kaunda increased annually at an average rate of 0.51% from

2009 to 2019.

CHART 22. TOTAL EMPLOYMENT PER BROAD ECONOMIC SECTOR - DR KENNETH KAUNDA

DISTRICT MUNICIPALITY, 2019 [PERCENTAGE]

In Dr Kenneth Kaunda District Municipality the economic sectors that recorded the largest

number of employment in 2019 were the community services sector with a total of 48 900

employed people or 26.4% of total employment in the district municipality. The trade sector

with a total of 42 400 (22.9%) employs the second highest number of people relative to the

rest of the sectors. The electricity sector with 1 220 (0.7%) is the sector that employs the least

number of people in Dr Kenneth Kaunda District Municipality, followed by the mining sector

with 4 900 (2.6%) people employed.

Compared with the employment number of people in the region, there were a total number

of 89 700 people unemployed in Dr Kenneth Kaunda District Municipality in 2019, which is

an increase of 21 100 from 68 600 in 2009. The total number of unemployed people within

Dr Kenneth Kaunda constitutes 22.42% of the total number of unemployed people in North-

West Province. The Dr Kenneth Kaunda District Municipality experienced an average annual

increase of 2.72% in the number of unemployed people, which is better than that of the North-

West Province which had an average annual increase in unemployment of 2.75%.

In 2018, the majority of the economically active population in the District was found in City of

Matlosana (34.4%), followed by JB Marks (33.9%) and Maquassi Hills (29.9%).

In 2019 the labour force participation rate for Dr Kenneth Kaunda District Municipality was at

56.0% which is slightly higher when compared to the 53.4% in 2009. The unemployment rate

is an efficient indicator that measures the success rate of the labour force relative to

employment. In 2009, the unemployment rate for Dr Kenneth Kaunda was 28.2% and

increased overtime to 31.3% in 2019. The gap between the labour force participation rate

and the unemployment rate decreased which indicates a negative outlook for the employment

within Dr Kenneth Kaunda District Municipality.

Figure: Economically Active Population for Dr Kenneth Kaunda District Municipality, 2009 and 2019

JB Marks Local Municipality had the highest labour force participation rate with 58.1% in 2019

increasing from 53.1% in 2009. Maquassi Hills Local Municipality had the lowest labour force

participation rate of 51.1% in 2019, this increased from 48.7% in 2009.

0%

10%

20%

30%

40%

50%

60%

70%

City of Matlosana Maquassi Hills JB Marks

Labour force participation rate Dr Kenneth Kaunda, 2009-2019

2009 2014 2019


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3.4.4 Crime

According to the IHS Composite Crime Index, the period 2008/2009 to 2018/2019 overall

crime has decrease at an average annual rate of 1.43% within the Dr Kenneth Kaunda

District Municipality. Violent crime decreased by 1.74% since 2008/2009, while property

crimes increased by 0.12% between the 2008/2009 and 2018/2019 financial years.

Chart: IHS Crime Index - Calender years (Weighted Avg / 100,000 people) - Dr Kenneth Kaunda District Municipality, 2008/2009-2018/2019 [Index Value]

In 2018/2019, the Dr Kenneth Kaunda District Municipality has the highest overall crime rate

of the sub-regions within the overall North-West Province with an index value of 117. Dr Ruth

Segomotsi Mompati District Municipality has the second highest overall crime index at 83.1,

with Bojanala Platinum District Municipality having the third highest overall crime index of

82.2. It is clear that all the crime is decreasing overtime for all the regions within North-West

Province.

Bojanala Platinum District Municipality has the second lowest overall crime index of 82.2 and

the Ngaka Modiri Molema District Municipality has the lowest overall crime rate of 77.5. It is

clear that crime is decreasing overtime for all the regions within North-West Province. The

region that decreased the most in overall crime since 2008/2009 was Bojanala Platinum

District Municipality with an average annual decrease of 3.9% followed by Dr Kenneth

Kaunda District Municipality with an average annual decrease of 1.4%.

3.5 Education and Skills Profile

Within Dr Kenneth Kaunda District Municipality, the number of people without any schooling

decreased from 2009 to 2019 with an average annual rate of -0.96%, while the number of

people within the 'matric only' category, increased from 108,000 to 150,000. The number of

people with 'matric and a certificate/diploma' increased with an average annual rate of 1.70%,

with the number of people with a 'matric and a Bachelor's' degree increasing with an average

annual rate of 5.58%. Overall improvement in the level of education is visible with an increase

in the number of people with 'matric' or higher education.

Figure: Highest level of education: age 15+ - Dr Kenneth Kaunda District Municipality, 2009-2019 [percentage]

City of Matlosana has the highest propotion of the population with matric (51%), with the

lowest proportion in Maquassi Hills (32%). Maquassi Hills has also a corresponding higher

percentage of the population with a qualification of less than matric atb 48% (district average

is 30%) and slightly higher percentage of the population without any schooling at 17% (just

higher than the district average of 16%).

The number of people without any schooling in Dr Kenneth Kaunda District Municipality

accounts for 18.37% of the number of people without schooling in the province and a total

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Highest level of education: age 15+ Dr Kenneth Kaunda, 2009-2019

Matric &

Postgrad

degreeMatric &

Bachelors

degreeMatric &

certificate /

diplomaMatric only

Certificate /

diploma

without matricGrade 10-11

Grade 7-9


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share of 1.90% of the national. In 2019, the number of people in Dr Kenneth Kaunda District

Municipality with a matric only was 150,000 which is a share of 20.17% of the province's total

number of people that has obtained a matric.

The number of people with a matric and a Postgrad degree constitutes 26.22% of the

province and 1.24% of the national.The number of colleges in Dr Kenneth Kaunda District

Municipality includes Centurion Acadamy, Potchefstroom College of Agriculture as well as

universities such as the University of South Africa and North West University.

4. Drivers of the Economy

4.1 Structure of the Economy

For the period 2019 and 2009, the GVA in the finance sector had the highest average annual

growth rate in Dr Kenneth Kaunda at 1.63%. The industry with the second highest average

annual growth rate is the community services sector averaging at 1.30% per year. The

agriculture sector had an average annual growth rate of -1.70%, while the mining sector had

the lowest average annual growth of -9.46%. Overall a negative growth existed for all the

industries in 2019 with an annual growth rate of -1.08% since 2018.

4.2 Primary Sector

The primary sector consists of two broad economic sectors namely the mining and the

agricultural sector. The following chart represents the average growth rate in the GVA for

both of these sectors in Dr Kenneth Kaunda District Municipality from 2009 to 2019. Mining

has historically been the main economic activity within the district, and with the industry in

steady decline the district is seeking to diversify the economy from its over-reliance on the

mining industry. However, the mining sector reached its highest point of growth of 4.3% in

2011.

The agriculture sector experienced the highest positive growth in 2017 with an average

growth rate of 25.5%. The agricultural sector experienced the lowest growth for the period

during 2015 at -17.1%, while the mining sector reaching its lowest point of growth in 2014 at

-24.2%. Both the agriculture and mining sectors are generally characterised by volatility in

growth over the period.

4.3 Secondary Sector

The secondary sector consists of three broad economic sectors namely the manufacturing,

electricity and the construction sector. Between 2009 and 2019, the manufacturing sector

experienced the highest positive growth in 2010 with a growth rate of 2.8%. The construction

sector reached its highest growth in 2013 at 3.5%.

The manufacturing sector experienced its lowest growth in 2010 of -10.6%, while construction

sector reached its lowest point of growth in 2010 with -5.8% growth rate. The electricity sector

experienced the highest growth in 2011 at 3.4%, while it recorded the lowest growth of -4.5%

in 2012.

4.4 Tertiary Sector

The tertiary sector consists of four broad economic sectors namely the trade, transport,

finance and the community services sector. The trade sector experienced the highest positive

growth in 2011 with a growth rate of 2.9%. The transport sector reached its highest point of

growth in 2015 at 4.0%. The finance sector experienced the highest growth rate in 2012 when

it grew by 4.2% and recorded the lowest growth rate in 2009 at -2.1%.

The Trade sector also had the lowest growth rate in 2009 at -8.7%. The community services

sector, which largely consists of government, experienced its highest positive growth in 2011

with 3.7% and the lowest growth rate in 2009 with -2.0%.

Figure: Gross Value Added (GVA) by aggregate economic sector - Dr Kenneth Kaunda District Municipality,

2019 [percentage]

The tertiary sector contributes the most to the Gross Value Added within the Dr Kenneth

Kaunda District Municipality at 69.9%. This is very similar than the national economy (68.7%).

The primary sector contributed a total of 16.7% (ranking second), while the secondary sector

contributed the least at 13.4%.

Primary

sector

Secondary

sector

Tertiary

sector

Gross Value Added (GVA) by aggregate sector Dr Kenneth Kaunda District Municipality, 2019


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The agriculture sector is expected to grow fastest at an average of 1.32% annually from R

887 million in Dr Kenneth Kaunda District Municipality to R 947 million in 2024. The

community services sector is estimated to be the largest sector within the Dr Kenneth Kaunda

District Municipality in 2024, with a total share of 29.5% of the total GVA (as measured in

current prices), growing at an average annual rate of -2.1%. The sector that is estimated to

grow the slowest is the mining sector with an average annual growth rate of -5.96%.

5. Service Delivery

5.1 Water and Sanitation

Dr Kenneth Kaunda District Municipality had a total number of 113 000 (or 47.95%)

households with piped water inside the dwelling, a total of 106 000 (45.08%) households had

piped water inside the yard and a total number of 908 (0.39%) households had no formal

piped water. Whilst 93.3% of households have access to water from a regional or local service

provider, only 47% of households have piped water inside their yard.

Table: Households by type of water access - Dr Kenneth Kaunda District Municipality, 2018 [number]

Piped water

inside

dwelling

Piped water

in yard

Communal

piped water: less

than 200m from

dwelling (At

RDP-level)

Communal

piped water:

more than 200m

from dwelling

(Below RDP)

No formal

piped water Total

City of

Matlosana 67,387 61,786 2,409 1,714 268 133,564

Maquassi Hills 7,426 14,381 685 567 169 23,228

JB Marks 38,119 30,010 6,739 3,412 471 78,751

Total

Dr Kenneth

Kaunda

112,932 106,177 9,832 5,693 908 235,542


The regions within Dr Kenneth Kaunda District Municipality with the highest number of

households with piped water inside the dwelling is City of Matlosana Local Municipality with

67 400 or a share of 59.67% of the households with piped water inside the dwelling within Dr

Kenneth Kaunda District Municipality. The region with the lowest number of households with

piped water inside the dwelling is Maquassi Hills Local Municipality with a total of 7 430 or a

share of 6.58% of the total households with piped water inside the dwelling within Dr Kenneth

Kaunda District Municipality.

5.2. Human Settlements

Dr Kenneth Kaunda District Municipality had a total number of 113 000 (or 47.95%)

households with piped water inside the dwelling, a total of 106 000 (45.08%) households had

piped water inside the yard and a total number of 908 (0.39%) households had no formal

piped water.JB Marks has five informal settlements that they need to formalise and currently

have a backlog of 20 000 houses. There is social housing project also in the pipeline in the

areas of Miederpark and Dassierand.

The regions within Dr Kenneth Kaunda District Municipality with the highest number of

households with piped water inside the dwelling is City of Matlosana Local Municipality with

67 400 or a share of 59.67% of the households with piped water inside the dwelling within Dr

Kenneth Kaunda District Municipality. The region with the lowest number of households with

piped water inside the dwelling is Maquassi Hills Local Municipality with a total of 7 430 or a

share of 6.58% of the total households with piped water inside the dwelling within Dr Kenneth


Chart: Households by dwelling unit type - Dr Kenneth Kaunda, North-West and national total, 2018

[percentage]

5.3. Waste Management

According to the IHS Markit, Dr Kenneth Kaunda District Municipality had a total number of

187 000 (79.20%) households which had their refuse removed weekly by the authority, a total

of 3 170 (1.34%) households had their refuse removed less often than weekly by the authority

and a total number of 31 500 (13.39%) households which had to remove their refuse

personally (own dump).

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dr Kenneth Kaunda North-West National Total

Households by dwelling unit type Dr Kenneth Kaunda, North-West and National Total, 2018

Other dwelling

type

Traditional

Informal

Formal

Very Formal


of 35

Table: Households by refuse disposal - City of Matlosana, Maquassi Hills and JB Marks Local Municipalities,

2018 [number]

Removed

weekly by

authority

Removed less

often than

weekly by

authority

Removed by

community

members

Personal

removal (own

dump)

No refuse

removal Total

City of

Matlosana 121,575 1,296 1,050 7,392 2,250 133,564

Maquassi Hills 11,130 986 2,647 6,233 2,232 23,228

JB Marks 53,853 885 2,384 17,913 3,716 78,751

Total

Dr Kenneth

Kaunda

186,558 3,167 6,081 31,538 8,198 235,542


The region within Dr Kenneth Kaunda District Municipality with the highest number of

households where the refuse is removed weekly by the authority is City of Matlosana Local

Municipality with 122 000 or a share of 65.17% of the households where the refuse is

removed weekly by the authority within Dr Kenneth Kaunda. The region with the lowest

number of households where the refuse is removed weekly by the authority is Maquassi Hills

Local Municipality with a total of 11 100 or a share of 5.97% of the total households where

the refuse is removed weekly by the authority within the district municipality.

5.4. Roads and Transport

In 2016, the Department of Community Safety and Transport Management (DCSTM) in the

North West embarked on the third-generation District Integrated Transport Plan (DITP) for

the Dr Kenneth Kaunda District Municipality for the period 2017 to 2021. The key findings

have indicated on the following interventions that needs to be made in order to improve the

transport system in the District. Various transport needs have been summarised from the

Local Municipalities’ Integrated Transport Plans. In view of the coordination and strategic role

of the DM, it is proposed that masterplans for Roads, Freight Transport, Non-Motorised

Transport, Learner Transport and Rural Transport are conducted by the DM.

The District Municipality is well served with mini-bus taxi routes and services. There are more

than 2 039 legally registered mini-bus taxi vehicles, 1 283 operational members, 2 011

operating licences issued of which 1 976 have been issued for commuter services, and 1 004

for long distance services. The is a total of 112 learner transport operators serving 78 schools

with 164 vehicles.

5.5 Electricity

Dr Kenneth Kaunda District Municipality had a total number of 6 830 (2.90%) households

with electricity for lighting only, a total of 212 000 (90.15%) households had electricity for

lighting and other purposes and a total number of 16 400 (6.96%) households did not use

electricity.

Table: Households by type of electrical connection - City Of Matlosana, Maquassi Hills and JB Marks Local

Municipalities, 2018 [Number]

Electricity for lighting only

Electricity for lighting and other

purposes

Not using electricity

Total

City of Matlosana 2,856 122,821 7,887 133,564

Maquassi Hills 488 20,893 1,847 23,228

JB Marks 3,484 68,618 6,648 78,751

Total Dr Kenneth Kaunda

6,828 212,332 16,382 235,542


The region within Dr Kenneth Kaunda District Municipality with the highest number of

households with electricity for lighting and other purposes is City of Matlosana Local

Municipality with 123 000 or a share of 57.84% of the households with electricity for lighting

and other purposes within Dr Kenneth Kaunda District Municipality. The Region with the

lowest number of households with electricity for lighting and other purposes is Maquassi Hills

Local Municipality with a total of 20 900 or a share of 9.84% of the total households with

electricity for lighting and other purposes within Dr Kenneth Kaunda District Municipality.

6. Governance and Management

6.1 Municipality Performance

In terms of MFMA Section 16(1) “the council of a municipality must for each financial year

approve an annual budget for the municipality before the start of that financial year”. Section

16 (2) “In order for a municipality to comply with subsection (1), the mayor of the municipality

must table the annual budget at a council meeting at least 90 days before the start of the

budget year”. MFMA Section 24(1) the municipal council must at least 30 days before the

start of the budget year consider approval of the annual budget.

MFMA Section 55 “if a municipality has not approved an annual budget by the first day of the

budget year or if the municipality encounters a serious financial problem referred to in section

136, the mayor of the municipality-

(a) must immediately report the matter to the MEC for local government in the province; and

(b) may recommend to the MEC an appropriate provincial intervention in terms of section

139 of the Constitution.

of 35

Municipality Tabling of Draft Budget Date

Adoption of Final Budget Date

City of Matlosana 20-04-2018 30-05-2018

Maquassi Hills 29-03-2018 07-06-2018

JB Marks 13-04-2018 30-05-2018

Dr Kenneth Kaunda 29-03-2018 07-06-2018

All four municipalities managed to adopt the final budget 2018-19 before the start of

financial year.

Financial Reporting

The structure of the report will mainly cover Operating Expenditure, Cash Flow, Creditors,

Debtors Management and Collection Rate.

Operating Expenditure

Municipality Code Total operatin

g Exp Budget

Employee related

cost

Bulk purchas

e

Other Expense

s

Total YTD %

% of salarie

s & Wages

City of Matlosana

NW403 3 277 021

461 274 747 923 936 447 2 145 644

65% 14%

Maquassi Hills NW404 356 692 60 068 82 118 61 886 204 072 57% 17%

JB Marks NW405 1 748 204

257 954 419 287 791 584 1 468 825

84% 15%

Dr Kenneth Kaunda DM

DC40 178 059 77 935 0 77 272 155 207 87% 44%

Dr Kenneth Kaunda district

5 559 976

857 231 1 249 328

1 867 189

3 973 748

71% 15%

The total expenditure for Dr. Kenneth Kaunda District Municipality amounted to R3 973 748

billion or 71 percent of the total budget of R5 559 976 billion. 15% of the total operating

expenditure as at the end of June 2018 is on employee related costs.

Cash Flow at at End of June 2018 (Dr KKD Municipalities)

Municipality Opening Balance Receipts Payments Closing Creditors

City of Matlosana 193 075 180 377 481 369 -107 917 371 730

Maquassi Hills 414 21 787 20 813 1 388 147 910

JB Marks 310 217 147 379 126 873 330 723 53 42

Creditors Management, Debtors Management and Collection Rate

The total creditors for the Dr Keneth Kaunda municipalities amounts to R588 909 million of

which R360 680 million is owed for over 90 days. Total debt owed to the Dr Kenneth Kaunda

Municipalities amounted to R3.623 billion, of which R3.083 billion is owed for more than 90

days

The Department of Cooperative Governance, Human Settlements and Traditional Affairs

compiled a Collection Rate assessment report from the 2017-18 Audited Annual Financial

Statement (AFS) sourced from National Treasury Website (municipal documentation).

According to this report, the City of Matlosana collects at 96%, Maquassi Hills at 88% and JB

Marks at 91%.

Audit Outcomes and MPAC Functionality

Summary of Audit Outcomes of Dr KK District Municipalities

Municipality 2017/18 2016/17 2015/16 2014/15 2013/14 2012/13 Progress

Dr Kenneth Kaunda Qualified

Qualified

Qualified

Unqualified

Unqualified

Unqualified

Stagnant

Matlosana Unqualifi

ed Qualifie

d Qualifie

d Qualified Qualified Disclaim

er Improved

Maquassi Hills Disclaim

er Qualifie

d Qualifie

d Qualified Disclaim

er Disclaim

er Regressed

JB Marks Qualified Disclaim

er Qualifie

d Improved

Erstwhile Ventersdorp

Disclaimer

Disclaimer

Disclaimer

Disclaimer

Stagnant

Erstwhile Tlokwe Qualifie

d Unqualifi

ed Unqualifi

ed Unqualifi

ed Stagnant

MPAC Fuctionality in Dr Kenneth Kaunda District Municipalities

Municipality Functional/Not Comments/ reasons for non functionality

Dr Kenneth Kaunda Functional Active

Matlosana Functional Active

Maquassi Hills Not Functional Backlog of Oversight reports, no permanently allocated support staff and no annual work plan. MPAC inactive

JB Marks Not Functional No support from administration. MPAC inactive

Chart: The chart below indicates the 2015/16, 2016/17. 2017/18 expenditure patterns of Dr Kenneth


The UIF&W expenditure has been increasing annually. Municipalities are not

addressing UIF&W expenditure as required by MFMA sec 32.

-

500,000.00

1,000,000.00

1,500,000.00

2,000,000.00

2,500,000.00

3,000,000.00

3,500,000.00

2015/16 2016/17 2017/18

Unauthorised

Irregular

Fruitless & WastefulExpenditures

Linear (Unauthorised)

Linear (Irregular)

PROFILE: DR KENNETH KAUNDA DISTRICT MUNICIPALITY

26

6.2 Municipal Capacity

The organizational structure of the Dr Kenneth Kaunda District Municipality is under

review and the changed structure will first be adopted in Council and will be reflected

in future documents. The District is reportedly stable whereby Council and its

Committees are functional. Notwithstanding, at Maquassi Hills Local Municipality,

there is instability of Council characterized by infighting that led to political instability

and weak oversight. This has led to non-functionality of Council and its Committees

and in particular the MPAC.

For City of Matlosana Local Municipality the Council is fragmented, the Mayoral

Committee is divided, and the Troika is not coherent. Meetings of Committees of

Council are not convened and/or poorly attended and if they happen to convene, they

are disrupted. This anomaly is impacting negatively on governance and oversight of

Council, thus creating an enabling environment for the collapse of service delivery and

violent service delivery protests. Nonetheless, it is so far the only municipality in the

province with an unqualified audit opinion.

And in the case of JB Marks Local Municipality, Council and its Committees are

functional. Functional ward committees are critical to the national strategic objective

of deepening democracy through public participation. Ward committees have a pivotal

role to play as a conduit between the municipal Council and the community. All local

municipalities in the district have established ward committees.

An audit was also conducted at the three local municipalities and reflected that some

vacancies do exist at ward committees which have been left unfilled for a long period

despite a plea made by the Department of CoGTA to municipalities that whenever a

vacancy occurs, it must be filled immediately at least within three months after it

occurred.

The table below indicates the status of total vacancies in ward committees per

municipality in the district:

Name of Municipality

Number of Ward Committees

Total Number of Vacancies

Total number of Ward Committee Members

1. City of Matlosana 39 2 388

2. JB Marks 34 16 324

PROFILE: DR KENNETH KAUNDA DISTRICT MUNICIPALITY 27

Page 27 of 35

3. Maquassi Hills 11 8 102

Total 84 26 814

The table below provides an overview of staffing levels in the municipality, including

total staff currently employed, permanent staff, temporary staff, approved positions,

and total funded vacancies.

For example, in Dr Kenneth Kaunda District Municipality 93.7% of staff are permanent

employees and 6.3% are temporary employees, in JB Marks local municipality, 91.5%

of staff are permanent employees and 8.5% are temporary employees, in the City of

Matlosana Local Municipality 99% of the staff are permanent employees and 1% are

temporary employees and in Maquassi Hills local municipality 97.5% of the staff are

permanent employees and 2.5% are temporary employees.

Status DR KK DM JB Marks LM

City of Matlosana LM

Maquassi Hills LM

Total municipal staff currently employed 205 1053 2032 275

Total permanent currently employed 192 (93.7%) 963 (91.5%) 2012 (99%) 268 (97.5%)

Total temporary staff currently employed 13 (6.3%) 90 (8.5%) 20 (1%) 7 (2.5%)

Total approved positions 210 288 503 10

Total funded vacancies 415 1341 2535 285 Source: Municipal Demarcation Board (Municipal Capacity Assessments 2018)

6.3 Traditional Affairs Governance

With regards to traditional leaders, there are no traditional leaders within the district.

7. Projects to Diversify and Grow People and the Economy

7.1 Social Development Project

The Dr Kenneth Kaunda District Municipality can promote social cohesion through

tourism activities which are the source of tourist attraction and local residents can

make use of such. The region has numerous number of outdoor adventurer’s paradise

which offers hiking trails, mountain biking trails, canoeing, white water rafting,

mountain climbing and abseiling.

Lodges along the Vaal River afford some of the best angling and fly fishing

opportunities in South Africa which includes the Cristiana All Seasons Resort,

Bloemhof Dam Reserve, Boskop Dam Reserve, Sunwa Water Experiences, The Vaal

River and Wolwespruit Nature Reserve. Other popular attractions include the


28

Vredefort Dome one of the oldest meteor impact sites in the world and the Klerksdorp

Mine Tours.

7.2. Spatial Development

The SDF proposes development according to the following hierarchy of nodes as

outlined in the NW PSDF. Klerksdorp and Potchefstroom are identified as Priority 1

investment nodes (can be regarded as primary nodes). Wolmaransstad is identified as a

Priority 2 investment area (regarded as secondary node). Ventersdorp is identified as a Priority

3 investment area (regarded as tertiary node)

The map below shows the development corridors and urban edge in the two major

towns of the district. The urban edge extracted directly from the local municipalities’

SDFs shows areas where development is restricted in, whereas the development

corridors shows areas that have greater investment potential and where future

developments should be concentrated.


Page 29 of 35

7.3 Infrastructure Projects

JB Marks

Total amount for all MIG registered projects is R121 million. Maquassi Hills Local Municipality


30

Total amount for all MIG registered projects is R33. 818 millions.

Matlosana Local Municipality

7.4 Environmental forecast

Responding to growth pressures and climate change requires action. In Dr KKD, a

range of planning and design actions are integrated with local planning instruments to

adapt settlements to the likely impacts of climate change and reduce their exposure

to hazards.


Page 31 of 35

8. Key Recommendations

JB Marks Local Municipality borders Gauteng and City of Matlosana Local

Municipality. The main node in the municipality, linking Gauteng to the east, is

Potchefstroom. Potchefstroom is a developed town with finance and business services

sector as the main sector. With the well-developed infrastructure of Potchefstroom, it

has been able to sustain a positive economic growth rate throughout the transition

period in South Africa and, together with its abundance of water and electricity, holds

great opportunities for future growth.

The North West University Potchefstroom Campus attracts investment and capital to

the municipality, making Potchefstroom ideal for the Diversification and Maintenance

Strategy. Matlosana City Local Municipality is considered as a distressed mining

municipality and the focus need to be on the economic and social transformation of

settlements.


32

Development Guidelines:

• The municipality has a strong educational base and can be seen as a leading

national tertiary hub, with a myriad of opportunities associated with student

housing and relevant services.

• Ensure better functional integration.

• The municipality has high value agricultural land that should be promoted and

protected.

• Ensure land tenure security.

• Delineate a clear urban edge to prevent development on high value agricultural

land and to promote densification.

• Potchefstroom provides a strong urban core with highly skilled employees and

entrepreneurial skills, mainly as a result of the NWU Potchefstroom Campus.

Opportunities exist to diversify the economy and focus on tertiary services such

as the finance and business services sector.

• Potchefstroom is situated close to Gauteng and Klerksdorp – forming part of

the Gauteng City Region, creating opportunities for industrial development,

lifestyle estate development and services such as health care, retail and

education.

• Focus on diversifying and promoting the manufacturing sector.

• Diversify the local economy – focus on forward and backward linkages.

• Uphold business environment and property investment maintenance –

contribute to retain and instill business confidence.

• Integrate the informal market into the economy. There is potential in the second

economy that can be exploited and help to increase the economic base.

• Promote nodal development and retail / commercial development in second

economy areas.

• Formalise housing.

• Provide affordable housing in appropriate locations to ensure that the property

values of high-income areas (mostly situated in the eastern parts of

Potchefstroom) are not affected.

• Promote mixed use developments.

• Revitalisation of the CBD.

• Promote tourism development in the following areas:


Page 33 of 35

o The Vredefort Dome which has been listed as a World Heritage Site.

o The Boskop Dam Nature Reserve.

o The Prozesky Bird Sanctuary.

o The proposed Highveld National Park.

• Ensure proper maintenance and upgrading of infrastructure.

• Create a conductive environment that will attract private sector investment.

Projects and Programmes of Provincial Sector Departments

PROJECTS BY INSPECTORATE

NO: PWR

DESCRIPTION (NAME OF

PROJECT

Local Municipalit

y

Contractor

TOTAL BUDGET FOR 19/20

R‘000

EXPEN TO DATE

R ‘000

ACTUAL PROGRESS (include progress

expressed as %

completed against planned

Remarks

57/18

Renovation of DPWR Workshops at Witrand Hospital

JB Marks Lerato and Tefo

R1 175 556.48

R 503 436.92

Contractor on site,

Progress to date 41%

Progress satisfactor

y, to overlap to

new f/y Renovation and Repairs of Boardroom at Klerksdorp Sub District Offices

Matlosana Khululeka Civils

R207 830.00

R207 830.00

100% Retention released

Renovations and Repairs of Hall at Klerksdorp Sub district Offices

Matlosana Khululeka Civils

R370 275.36

R315 436.82

95% Progress Satisfactor

y

Renovation and Repairs of Boardroom at Ventersdorp Sub district Offices

JB Marks Gabo Motho Trading Enterprise

R 198 495.00

R163 489.50

Contractor on site,

Progress to date 82%

Progress Satisfactor

y

Renovation and Repairs of Hall at Ventersdorp Sub District Offices

JB Marks Mashota Trading

Enterprise

R 437 841.95

R 356 726.21

81% Progress Satisfactor

y

Renovations and Repairs of Hall at Wolmaransta

Maquassi Hill

Mesale Projects

R 478 276.95

R 478 276.95

100% Retention released


34

d Sub district Offices


Page 35 of 35

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