frances baard district municipality...the frances baard district municipality embarked on a process...

FBDM LED Strategy Review 2014/15

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CO

MPAN

Y P

RO

FIL

E

FRANCES BAARD DISTRICT MUNICIPALITY

THE REVIEW OF THE FBDM DISTRICT LOCAL

ECONOMIC DEVELOPMENT STRATEGY


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CONTACT DETAILS

Bopa-Lesedi

Anneke Kruger

PO Box 1026

Kimberley

8300

Tel.: +27 53 861 2929

Cell: +27 82 926 0124

E-mail: [email protected]


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CONTENTS

1. INTRODUCTION ........................................................................................................................................ 8

1.1. PROJECT BACKGROUND ............................................................................................................................... 8

1.2. PROJECT OBJECTIVES ............................................................................................................................. 8

1.3. THE CONCEPT OF LED ................................................................................................................................. 9

2. POLICY REVIEW ....................................................................................................................................... 10

2.1. INTRODUCTION ........................................................................................................................................ 10

2.2. NATIONAL POLICY REVIEW ........................................................................................................................ 11

2.2.1. THE CONSTITUTION......................................................................................................................... 11

2.2.2. THE WHITE PAPER ON LOCAL GOVERNMENT ................................................................................. 11

2.2.3. THE MUNICIPAL SYSTEMS AND MUNICIPAL STRUCTURES ACT, ACT 32 OF 2000 ........................... 12

2.2.4. THE MUNICIPAL FINANCE MANAGEMENT ACT, ACT 56 OF 2003 ................................................... 13

2.2.5. THE INTERGOVERNMENTAL RELATIONS FRAMEWORK ACT, ACT 13 OF 2005 ............................... 14

2.2.6. BROAD BASED BLACK ECONOMIC EMPOWERMENT ACT, ACT 53 OF 2003 .................................... 14

2.2.7. THE NATIONAL LED FRAMEWORK FOR RSA .................................................................................... 15

2.2.8. NATIONAL DEVELOPMENT PLAN .................................................................................................... 16

2.2.9. NATIONAL SPATIAL DEVELOPMENT PERSPECTIVE (NSDP), 2006 .................................................... 16

2.2.10. INTEGRATED SUSTAINABLE RURAL DEVELOPMENT STRATEGY ...................................................... 16

2.2.11. REGIONAL INDUSTRIAL DEVELOPMENT STRATEGY (RIDS) .............................................................. 17

2.2.12. TOURISM GROWTH STRATEGY ....................................................................................................... 18

2.2.13. NEW GROWTH PATH, 2010 ............................................................................................................. 18

2.2.14. THE INDUSTRIAL POLICY ACTION PLAN, 2013/14-2015/16 ............................................................ 19

2.2.15. INDUSTRIAL POLICY ACTION PLAN (IPAP2), 2010/11 ...................................................................... 20

2.3. PROVINCIAL POLICY REVIEW ..................................................................................................................... 22

2.3.1. NORTHERN CAPE PROVINCIAL GROWTH AND DEVELOPMENT STRATEGY (NCPGDS) 2004- 2014 . 22

2.3.2. NORTHERN CAPE PROVINCIAL SPATIAL DEVELOPMENT STRATEGY ............................................... 23

2.3.3. NORTHERN CAPE LOCAL ECONOMIC DEVELOPMENT STRATEGY ................................................... 23

2.3.4. NORTHERN CAPE AGRICULTURE & AGRO-PROCESSING SECTOR DEVELOPMENT STRATEGY ......... 24

2.3.5. NORTHERN CAPE PROVINCE MINERAL SECTOR DEVELOPMENT STRATEGY ................................... 25

2.4. DISTRICT POLICY REVIEW ......................................................................................................................... 26

2.4.1. INTEGRATED DEVELOPMENT FRAMEWORK OF THE FRANCES BAARD MUNICIPALITY .................. 26

2.4.2. FRANCES BAARD GROWTH AND DEVELOPMENT STRATEGY .......................................................... 26


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2.4.3. FRANCES BAARD DISTRICT MUNICIPALITY CONSOLIDATED LOCAL ECONOMIC DEVELOPMENT

STRATEGY ........................................................................................................................................................ 27

2.4.4. FRANCES BAARD SPATIAL DEVELOPMENT FRAMEWORK ............................................................... 28

3. SITUATIONAL ANALYSIS .......................................................................................................................... 29

3.1. CURRENT STATE OF FRANCES BAARD.............................................................................................................. 30

3.2. POPULATION DISTRIBUTION ........................................................................................................................ 35

3.2.1. POPULATION GROWTH ................................................................................................................... 35

3.3. HOUSEHOLD DISTRIBUTION ......................................................................................................................... 36

3.4. ECONOMIC PROFILE ................................................................................................................................... 36

3.4.1. GROSS DOMESTIC PRODUCT ........................................................................................................... 37

3.4.2. HOUSEHOLD INCOME ..................................................................................................................... 40

3.4.3. UNEMPLOYMENT ............................................................................................................................ 41

3.4.4. EMPLOYMENT ................................................................................................................................. 42

3.4.5. SKILLS LEVEL .................................................................................................................................... 44

3.4.6. PRODUCTION PROFILE .................................................................................................................... 45

3.4.7. LOCATION QUOTIENT GVA .............................................................................................................. 46

3.4.8. TRADE PROFILE ............................................................................................................................... 47

4. OTHER IDENTIFIED PROJECTS WITHIN THE DISTRICT ............................................................................... 49

5. INSTITUTIONAL ANALYSIS ....................................................................................................................... 55

5.1. INTRODUCTION ........................................................................................................................................ 55

5.2. OUTCOMES OF THE ASSESSMENTS ................................................................................................................ 56

5.2.1. ORGANOGRAMS AND MANAGEMENT............................................................................................ 56

5.3. CONCLUSION AND WAY-FORWARD ............................................................................................................... 63

6. OPPORTUNITY ANALYSIS ........................................................................................................................ 64

6.1. BACKGROUND .......................................................................................................................................... 64

6.2. SWOT ANALYSIS ........................................................................................................................................ 65

6.3. POTENTIAL ANALYSIS METHODOLOGY .......................................................................................................... 66

6.4. SECTOR OPPORTUNITES ............................................................................................................................. 68

6.4.1. AGRICULTURE SECTOR .................................................................................................................... 68

6.4.2. MINING ........................................................................................................................................... 73

6.4.3. MANUFACTURING ........................................................................................................................... 77

6.4.4. SERVICE SECTOR .............................................................................................................................. 82

6.4.5. TOURISM ......................................................................................................................................... 84

6.5. CONCLUSION ........................................................................................................................................... 88


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7. PROJECT IDENTIFICATION ....................................................................................................................... 89

7.1. PROJECT PRIORITISATION CRITERIA ............................................................................................................... 89

7.2. LED PILLARS AND PROGRAMMES ................................................................................................................. 90

7.3. PRIORITISED PROJECTS ............................................................................................................................... 92

8. IMPLEMENTATION GUIDELINES .............................................................................................................. 94

8.1. ROLES AND RESPONSIBILITIES OF THE VARIOUS STAKEHOLDERS ........................................................ 94

8.2. STRATEGY IMPLEMENTATION GUIDELINES ...................................................................................................... 96

8.2.1. IMPLEMENTING AGENT OF PROGRAMMES AND PROJECTS ........................................................... 96

8.2.2. SUPPORT AGENT TO IMPLEMENTING AGENTS ............................................................................... 97

8.3. APPLICATION GUIDELINES ........................................................................................................................... 98

9. STRATEGIC ALIGNMENT AND INSTITUTIONAL FRAMEWORK ................................................................ 100

9.1. MARKETING AND LED PROMOTION ........................................................................................................... 100

9.2. INTEGRATED PROGRAMMING OF PROJECTS AND ACTION PLAN ........................................................................ 102

9.3. ACTION PLAN FOR THE NEXT 5 YEARS ................................................................................................ 103

10. MONITORING AND EVALUATION FRAMEWORK ............................................................................... 108

11. CONCLUSION .................................................................................................................................... 110


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LIST OF TABLES

TABLE 1: HOUSEHOLD SIZE .................................................................................................................................... 36

TABLE 2 : HOUSEHOLD INCOME ............................................................................................................................ 41

TABLE 3: EMPLOYMENT BY SECTOR (% CONTRIBUTION) FOR LM'S ........................................... 44

TABLE 4: GVA BY SECTOR ........................................................................................................................... 45

TABLE 5: GVA ................................................................................................................................................... 47

TABLE 6: LED PROJECTS .............................................................................................................................. 49

TABLE 7: IDP PROJECTS .............................................................................................................................. 50

TABLE 8: DGDS PROJECTS .......................................................................................................................... 53

TABLE 9: DEVELOPMENT POTENTIAL – AGRICULTURE SECTOR ............................................................................. 69

TABLE 10: OPPORTUNITIES – AGRICULTURE SECTOR ............................................................................................ 71

TABLE 11: DEVELOPMENT POTENTIAL – MINING SECTOR ..................................................................................... 75

TABLE 12: OPPORTUNITIES – MINING SECTOR ...................................................................................................... 76

TABLE 13: DEVELOPMENT POTENTIAL – MANUFACTURING SECTOR .................................................................... 79

TABLE 14: OPPORTUNITIES – MANUFACTURING SECTOR ..................................................................................... 80

TABLE 15: DEVELOPMENT POTENTIAL – SERVICE SECTOR .................................................................................... 82

TABLE 16: OPPORTUNITIES – SERVICE SECTOR ...................................................................................................... 83

TABLE 17: DEVELOPMENT POTENTIAL – TOURISM................................................................................................ 86

TABLE 18: OPPORTUNITIES - TOURISM.................................................................................................................. 87

TABLE 19: PILLARS AND PROGRAMMES ................................................................................................................ 90

TABLE 20: PRIORITISED PROJECTS ......................................................................................................................... 92

TABLE 21: ROLES AND RESPONSIBILITIES .............................................................................................................. 94

TABLE 22: 5 YEAR ACTION PLAN .......................................................................................................................... 104

LIST OF GRAPHS

GRAPH 1: POPULATION GROWTH............................................................................................................. 35

GRAPH 2: GDP OF FRANCES BAARD ........................................................................................................ 38

GRAPH 3: SECTOR GROWTH ...................................................................................................................... 38

GRAPH 4: GVA PER SECTOR ....................................................................................................................... 40

GRAPH 5: UNEMPLOYMENT RATE ......................................................................................................................... 42

GRAPH 6: EMPLOYMENT STATUS FBDM ................................................................................................. 43

GRAPH 7: EMPLOYMENT BY SECTOR (% CONTRIBUTION) ............................................................. 43


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GRAPH 8: SKILLS LEVEL ......................................................................................................................................... 45

GRAPH 9: IMPORT DESTINATIONS AS % OF TOTAL .......................................................................... 48

GRAPH 10: EXPORT DESTINATIONS AS % OF TOTAL ....................................................................... 48

GRAPH 11: DEDICATED LED OFFICIALS ................................................................................................ 56

GRAPH 12: LED PLACEMENT ....................................................................................................................... 57

GRAPH 13: LED REPRESENTATION .......................................................................................................... 57

GRAPH 14: LED COMMITTEE ...................................................................................................................... 58

GRAPH 15: LED STRATEGY DEVELOPMENT .......................................................................................... 59

GRAPH 16: LED AS PART OF THE IDP CONSULTATION ..................................................................................................... 59

GRAPH 17: LED LOCAL FORUMS ................................................................................................................................. 60

GRAPH 18: ALIGNMENT OF LED ................................................................................................................................. 61

GRAPH 19: KEY SECTORS IDENTIFICATION ..................................................................................................................... 61

GRAPH 20: LED IMPLEMENTATION ACTION PLAN ........................................................................................................... 62

GRAPH 21: MONITORING AND EVALUATION SCHEDULE ................................................................................................... 63

LIST OF MAPS

MAP 1: AGRICULTURAL POTENTIAL....................................................................................................................... 69

MAP 2: MINING POTENTIAL .................................................................................................................................. 74

MAP 3: MANUFACTURING SECTOR ....................................................................................................................... 78

MAP 4: TOURISM ................................................................................................................................................... 86


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1. INTRODUCTION

1.1. PROJECT BACKGROUND

The Frances Baard District Municipality embarked on a process of the review of its

Local Economic Development Strategy. The fundamental purpose of this project is

to ensure that Frances Baard District Municipality has a credible Local Economic

Development Strategy that is practical and implementable.

As part of the process of identifying the development methodology, a thorough

policy analysis was proposed. This policy analysis process seeks to ensure that

there is a common understanding of all new pieces of legislation that have been

introduced and how they impact on the project.

Furthermore this analysis seeks to ensure that the outcomes of the Local Economic

Development Strategy are in line with most major economic development

initiatives from all spheres of government. .

1.2. PROJECT OBJECTIVES

In summary the goal of this study is to:

“formulate a Local Economic Development Strategy based on the identified

development needs, opportunities, competitive and comparative advantages to

inform and guide Frances Baard District Municipality and its local municipalities to

facilitate development, unlock economic development potential of the area,

encourage private sector investment and create a conducive environment for

enterprise development and job opportunities for the community.”

Given the above-mentioned goal of the exercise, the following project objectives

have been identified:

Conducting an in-depth analysis of the real (but underlying) development

opportunities in the key economic sectors in the study area;

Identifying practical sectoral programmes that could be used as basis for pro-

active economic development initiatives;

Applying a nodal development philosophy to address rural specific economic

problems such as isolation from markets, dispersed service delivery, etc.

Identifying financing sources and investment options that could enhance

practical implementation;

Emphasising local job creation, alleviation of poverty and redistribution of

opportunities and wealth;

Focusing explicitly on opportunities for small enterprise and cooperatives

development in all economic sectors;

Promoting the creation of an enabling environment for economic development

by addressing human resource development (labour market) and an


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appropriate institutional framework as integral components of programmes

and projects;

Achieving skills transfer as part of the interaction with the local municipality

and key stakeholders by utilising known approaches, such as counterpart

training;

To apply an objective prioritisation process for project and programme

selection;

Ensuring that the strategy aligns with and adds value to the existing policies

and strategies such as the IDP’s and Spatial Development Framework, as well

as, private sector initiatives.

1.3. THE CONCEPT OF LED

There are quite a number of definitions that have been adopted globally when it

comes to defining what Local Economic Development (LED) is, but in South Africa

the World Bank adaptation has been adopted and is as follows:

“Local Economic Development (LED) is the process by which public, business, and

nongovernmental sector partners work collectively to create better conditions for

economic growth and employment generation with the objective of building up an

economic capacity of a local area to improve its economic future and the quality

of life for all”

Local Economic Development is an ongoing process, rather than a single project

or a series of steps to follow. It involves identifying and using local resources, ideas

and skills to stimulate economic growth and development. The aim of LED is to

create enterprise development and employment opportunities for local residents,

alleviate poverty and, redistribute resources and opportunities to the benefit of all

local residents.

In order for Local Economic Development (LED) to be effective, a community

(local, ordinary people, entrepreneurs and local government) with the support of

knowledgeable individuals and experts needs to identify and consider its own

economic strengths, weaknesses, opportunities and threats and agree on a shared

strategy.

LED is characterised by the following objectives:

Creating an enabling environment for enterprise development;

Establishing a job-creating economic growth path;

Embarking upon sustainable rural development and urban renewal; and

Bringing the poor and disadvantaged to the centre of development


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2. POLICY REVIEW

2.1. INTRODUCTION

Local Economic Development (LED) strategies are informed and are done within

certain parameters of national, provincial and local government policies,

programmes and initiatives. In this section the analysis on the broad legislative

framework, within which, Local Economic Development on a local level is

conducted.

The policies and programmes discussed are by no means the only legislative

frameworks to be considered, but gives a general indication of legislation that is

linked to matters of employment, poverty eradication and economic growth.

Taking these frameworks into consideration when formulating and implementing

Local Economic Development initiatives will ensure wider government support and

easier access to support instrument from government and donor organisations.

Policies need to interact with one another. The following diagram is an illustration

of these interactions:

FIGURE 1: POLICY NEEDS

ACCELERATED & SHARED GROWTH INITIATIVE FOR SOUTH AFRICA (AsgiSA)

National LED Framework

National Spatial Development

Framework

Provincial Growth and

Development Plan

Provincial Spatial

Development Framework

Integrated

Development Plan

District Growth and

Development Plan

Spatial Development

Framework

LOCAL ECONOMIC DEVELOPMENT (LED)


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The most relevant policies and legislation to the LED process are:

The Constitution Act 108 of 1996;

The White Paper on Local Government, 2000;

The Municipal Systems and Municipal Structures Act, Act 32 of 2000;

The Municipal Finance Management Act, Act no.56 of 2003);

The Intergovernmental Relations Framework Act, Act no 13 of 2005

Broad Based Black Economic Empowerment Act, Act 53 of 2003;

The National LED Framework for RSA;

National Spatial Development Perspective (NSDP) 2006;

National Local Economic Development Framework, 2006;

National Development Plan, 2013;

National Strategy for the Development and Promotion of Small Businesses

in South Africa, 1995.

Integrated Sustainable Rural Development Strategy 2000;

Regional Industrial Development Strategy (RIDS), 2006;

Tourism Growth Strategy 2012-2020;

New Growth Path, 2010;

The Industrial Policy Action Plan (IPAP 1,2&3);

2.2. NATIONAL POLICY REVIEW

2.2.1. THE CONSTITUTION

The Constitution (Act 108 of 1996) is the cornerstone for all legislation and policy-

making in South Africa. In particular, chapter 7 defines the role of local

government in its community with regard to objectives and duties it must fulfil.

2.2.2. THE WHITE PAPER ON LOCAL GOVERNMENT

This policy identifies local government’s responsibilities with regard to economic

development. This includes promoting their respective localities, SMME’s and

providing skills training.

Implication

•Frances Baard District Municipality is legally bound to promotesocial and economic development within its community. This impliesthat public investment should largely focus on developing themunicipal area in terms of local economic development andproviding for the basic needs of the community. Thus, it isimportant that the FBDM provide services, infrastructure provision,community services, educational components and business supportto areas that lack these services or in areas where improvements ofthese services are required.


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2.2.3. THE MUNICIPAL SYSTEMS AND MUNICIPAL STRUCTURES ACT, ACT 32 OF 2000

The Municipal Structures Act of 1998 defines types and categories of

municipalities, division of functions and powers within municipalities, and the

regulation of internal systems.

Alternatively, the Municipal Systems Act of 2000 provides municipalities with

guidelines which ‘enable municipalities to move progressively towards the social

and economic rising of local communities’ so that basic services may be met.

The Municipal Systems Act (Act 32 of 2000) lists the duties of a municipal council,

within its financial and administrative capacity, as follows in Section 4(2):

Exercise the municipality’s executive and legislative authority and use the

resources of the municipality in the best interest of the local community.

Provide, without favour or prejudice, democratic and accountable

government.

Encourage the involvement of the local community.

Strive to ensure that municipal services are provided to the local

community in a financially and environmentally sustainable manner.

Consult the local community about

o The level, quality, range and impact of municipal services provided

by the municipality, either directly or through another service

provider; and

o The available options for service delivery.

Give members of the local community equitable access to the municipal

services to which they are entitled.

Promote and undertake development in the municipality.

Promote gender equality in the exercise of the municipality’s executive and

legislative authority.

Promote a safe and healthy environment in the municipality.

Implication

•The White Paper has a direct impact on the development, policy formulation andhuman resource development projects of the local municipality. It emphasises theneed and importance of local municipal support to business through training anddevelopment of support systems. It is important that FBDM provide the localbusinesses with the required support structures but also providing the localcommunities with the required skills in order to obtain job opportunities through theimplementation of Training programmes and/or promoting possible trainingprogrammes to the local communities. It entrenches the concept of developmentallocal government and further intensifies the need for cooperative government in topromote socio-economic development across communities.


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Contribute, together with other organs of state, to the progressive

realisation of the fundamental rights contained in sections 24, 25, 26, 27

and 29 of the Constitution.

2.2.4. THE MUNICIPAL FINANCE MANAGEMENT ACT, ACT 56 OF 2003

The Municipal Finance Management Act (MFMA) aims to modernise budget and

financial Management practices in municipalities in order to maximise the capacity

of municipalities to deliver services to all their residents, customers and users. It

also aims to put in place a sound financial governance framework, by clarifying

and separating the roles and responsibilities of the executive mayor or committee,

non - executive councillors and officials.

The Act empowers the mayor (or executive committee) to provide political

leadership by taking responsibility for policy and outcomes, and holds the

municipal manager and other senior managers responsible for implementation and

outputs. Non - executive councillors are empowered to play a key policy - approval

and monitoring role through the municipal council.

The Act aims to enable managers to manage, but to make them more accountable.

All these various roles are possible because of the stringent reporting requirements

of the Act – the challenge facing all stakeholders is their capacity to use the

management information produced in terms of the Act to improve the efficiency

and effectiveness of the municipality.

The Act is required by the Constitution, which obligates all three spheres of

government to be transparent about their budgets and financial affairs. It also

forms an integral part of the broader reform package for local government outlined

in the White Paper on Local Government in 1998. The Act must be read together

with other local government legislation, particularly the Municipal Systems Act, to

ensure alignment of IDPs, budgets, performance systems and governance across

municipal entities.

Implication

•According to the Municipal Structures Act, Local municipalitiesare responsible for the delivery of municipal services. If a givenlocal municipality does not have the requisite capacity toprovide municipal services, the FBDM can provide municipalservices directly until the local capacity is developed. TheMunicipal Systems Act legally bounds the FBDM to fulfill itsduties and produce an IDP and LED strategy to guide economicdevelopment within the FBDM.


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2.2.5. THE INTERGOVERNMENTAL RELATIONS FRAMEWORK ACT, ACT 13 OF 2005

The purpose of this Act is to establish a framework for the national government,

provincial governments and local governments to promote and facilitate

intergovernmental relations. It further seeks to provide for mechanisms and

procedures to facilitate the settlement of intergovernmental disputes and to

provide for matters connected therewith.

2.2.6. BROAD BASED BLACK ECONOMIC EMPOWERMENT ACT, ACT 53 OF 2003

To uproot inherited social imbalances, the Broad-Based Black Economic

Empowerment Act of 2004 was passed. Here, systematic measures are in place to

uplift the previously disadvantaged community. Designated individuals include

Africans, Coloureds, Indians, women, workers, the youth, disabled persons and

those that live in rural communities.

Implication

•It is important that the FBDM adheres to financialprocedures presented in the Act when engaging in financialmatters relevant to any LED activities.

Implication

•Frances Baard District Municipality needs to appreciate theexistance of the structures and fora, established under theauspices of this piece of legislation. In this regard, particularcognisance needs to be discharged to maximisation of the effectof this strategy through, the Premier's IntergovernmentalForum, the Provincial and District LED Fora, District IGR Foraand all committes and subcommittees consequent thereto.Particular care needs to be exercesized towards intra and intersphere relations when implementing the strategy.


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2.2.7. THE NATIONAL LED FRAMEWORK FOR RSA

The Framework is intended to build a shared understanding of LED in South Africa

and put into context the role of local economies in the national economy. It seeks

to mobilise local people and local resources in an effort to fight poverty. The focus

of the Framework is upon:

Improving competitiveness of the 52 District and Metropolitan municipal regions

in South Africa by providing an approach to developing local economies with the

participation of all relevant stakeholders.

1. Rendering economic growth compatible with social equity and safeguarding

the environment.

2. What the state can do to support and reward citizens who organise locally and

operate in local level partnerships to engage in greater economic activity,

spreading economic activity in an even manner.

3. How the state can be a platform to facilitate the inclusion of all to participate

in the economy.

Implication

•Frances Baard District Municipality is responsible for addressingthe issue of transformation in its community. Therefore, sectorstrategies and development policies established by theMunicipality must be compliant with the BBBEE legislation.

Implication

•The Framework sets out the following three key roles which Local Governmentcan play in the LED process:

•To provide leadership and direction in policy making.

•To administer policy, programmes and projects.

•To be the main initiator of economic development programmes through public spending, regulatory powers and their promotion of industrial, small business development, social enterprises and cooperatives.


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2.2.8. NATIONAL DEVELOPMENT PLAN

The National Development Plan (NDP) offers a long-term perspective. It defines a

desired destination and identifies the role different sectors of society need to play

in reaching that goal.

2.2.9. NATIONAL SPATIAL DEVELOPMENT PERSPECTIVE (NSDP), 2006

The NSDP provides a framework within which to discuss the future development

of the National space economy by reflecting the localities of severe deprivation and

need of resource potential, of infrastructure endowment and of current and

potential economic activity, by describing the key social, economic and natural

resource trends and issues shaping the National geography.

2.2.10. INTEGRATED SUSTAINABLE RURAL DEVELOPMENT STRATEGY

The purpose of the Integrated Sustainable Rural Development Strategy is to

enhance the welfare of the poor that inhabit rural areas of South Africa.

Implication

•The NDP aims to eliminate poverty and reduce inequalityby 2030. According to the plan, South Africa can realisethese goals by drawing on the energies of its people,growing an inclusive economy, building capabilities,enhancing the capacity of the state, and promotingleadership and partnerships throughout society.

Implication

•The NSDP states that economic growth should be a pre-requisite for the achievement of other policy objectives, keyamong which would be poverty alleviation. It further states thatefforts to address past and current social inequalities shouldfocus on people not places.


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Municipalities are key players in the implementation of the ISRDS due to their

decentralized nature and ability to physically interact with their respective rural

communities.

2.2.11. REGIONAL INDUSTRIAL DEVELOPMENT STRATEGY (RIDS)

The RIDS presents a comprehensive framework for industrial development in

South Africa and builds on the outcomes of the National Spatial Development

Perspective (NSDP). The NSDP acknowledges the fact that the landscape of

economic development is not equal across all regions in the country.

Echoing the NSDP, the RIDS calls on all regions to build their industrial economies

based on local competitive advantages and opportunities. It aims to bridge the

first-second economy gap in South Africa based on the spatial development

principles of the NSDP.

Such a strategy focuses fundamentally on addressing the key obstacles to the

functioning of the economy, primarily through infrastructural interventions which

will better enable all regions to access markets and resources.

The strategic objectives may be summarised as follows:

Attempt, as far as possible, to reduce economic disparities between

regions, address the needs of both the first and second economies, and

narrow the gap between them.

Pay particular attention to the needs of those regions which are lagging

behind the national norms.

Enhance current regional strengths and lead sectors of the economy.

Promote sustainable economic growth and employment in provinces and

municipalities.

Build regional competitive capabilities and firm-level support measures.

Enhance regional performance in attracting foreign direct investment.

Implication

•Frances Baard District Municipality is responsible fortransforming local rural areas into economically viablecommunities. To facilitate positive change, an in depthunderstanding of local rural areas is required along with anexcellent relationship with the local businesses.


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2.2.12. TOURISM GROWTH STRATEGY

The Tourism Growth Strategy provides a three year plan (2008- 2010) to boost

South Africa’s competiveness in the global tourism and travel market. Through

increasing global competitiveness, the tourism industry aims to contribute

significantly to AsgiSA’s growth target of 5%.

2.2.13. NEW GROWTH PATH, 2010

The New Growth Plan (NGP) is government’s action towards targeting mass

joblessness, poverty and inequality. The growth plan identifies where employment

creation is possible with success indicators being jobs, equity growth and

environmental outcomes. The short to medium term outcomes are to support

labour absorbing activities, especially in infrastructure, agriculture values chain

and light manufacturing services. Whilst also promoting Small Micro Enterprises

(SMEs), Black Economic Empowerment (BEE), education and skills development.

The NGP aims to create five million jobs by the year 2020 with contributions from

various government sectors and private sectors. The job drivers with potential for

mass employment creation identified in the growth plan are:

Implication

•The RIDS aims to bridge the first and second economy gap. Thiscould also be of value for the Frances Baard District Municipality inorder to bridge the gap between the first and second economy.

•The RIDS also presents a comprehensive framework for industrial development in South Africa. Industrial development is also needed in the FBDM. Support funds will be launched by the DTI that will support local industrial development projects, which will contribute thus to the industrial development of the FBDM.

Implication

•Tourism is a ‘major contributor to the local economy’ of theFBDM. Consequently, the FBDM is expected to contribute to theTGS (and ultimately AsgiSA) through developing and expandingits existing market in a way that promotes transformation,distribution and sustainability in the industry. This suggests thata local tourism strategy is essential for boosting economicdevelopment in the area.


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Infrastructure for employment and development; infrastructure including

energy, transport, water, telecommunication infrastructure and housing

Improving job creation in economy sectors; agricultural value chain, agro

processing and mining value chain, manufacturing sectors, tourism and

certain high level services

Seizing potential of new economies; green economy and growing

knowledge in this industry

Investing in social capital and public services

Spatial development, especially in rural development

The identified job drivers will influence provinces and localities in a different

manner due to different factors, therefore localities must adopt the broad drivers

in the NGP to their circumstance and locality.

2.2.14. THE INDUSTRIAL POLICY ACTION PLAN, 2013/14-2015/16

The Industrial Policy Action Plan (IPAP) 2013/14 – 2015/16 is Department of Trade

and Industry’s (DTI) efforts to continuously build on industrial development and

IPAP is the core contributor. IPAP addresses South Africa’s economic challenges

through industrial development, identifying key sectors that can generate

employment and government lead by the DTI’s investment towards the sectors.

The IPAP contributes to the NGP through identifying sector clusters that can

contribute towards job creation in the country.

The identified sector clusters are:

Metal fabrication, capital equipment and transport equipment;

Green and energy saving industries;

Agro-processing;

Automotives, components and medium and heavy commercial vehicles;

Plastics, pharmaceuticals and chemicals;

Clothing, textiles, leather and footwear;

Bio fuels;

Implication

•The New Growth Path sets out an ambitious programme which willrequire alignment in terms of the Strategy, to create jobs, through aseries of partnerships between the state and the private sector thatbuilds on our strengths in the following areas:

•the green economy

•agriculture

•mining

•manufacturing

•tourism and other high-level services.


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Forestry, paper, pulp and furniture;

Cultural industries, crafts and films;

Aquaculture;

Business process services;

Advance manufacturing;

Sawmilling sectorcturing;

Donwstream mineral beneficiation;

Furniture manufacturing;

Upstream oil and gas.

2.2.15. INDUSTRIAL POLICY ACTION PLAN (IPAP2), 2010/11

IPAP 2 has a direct and sustainable impact on manufacturing productivity in South

Africa. The IDC has introduced a funding model for IPAP2 for approximately R50

billion for the next five years for the roll out of plans to support IPAP2. The

2010/2011 Industrial Policy Action Plan or IPAP2, as it has become known, builds

on the National Industrial Policy Framework (NIPF) and the 2007/8 IPAP. IPAP2 is

a product of extensive collaborative work by the Economic Sectors and

Employment Cluster of Ministers.

The 2010/11 – 2012/13 Industrial Policy Action Plan rests on four cornerstones,

1. First, government intends to develop proposals to enhance access to

concessional industrial financing for investment in IPAP priorities, and other

productive sectors on terms comparable to those of our major trading

partners.

2. Government will revise procurement legislation, regulations and practices to

enable the designation of large, strategic and repeat or ‘fleet’ procurements

in a range of sectors. This will aim to sequentially increase competitive local

procurement and supplier development opportunities, minimise ‘leakages’

from the domestic economy, and support meaningful Broad Based Black

Economic Empowerment (B-BBEE) in all 3 spheres of government and in

SOE’s.

Implication

•FBDM needs to ensure that the programmes and projects thatemerge from the LED Strategy need to focus on the sectorsmentioned above. The design of the strategy needs to be suchthat the incentives offered in these programmes are accessibleas a result.


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3. Government will deploy its trade policies more strategically. This includes

intensifying the campaign led by SARS against practices such as, customs

fraud, under invoicing, smuggling and illegal imports - all of which profoundly

undermine productive capacity and employment in the economy.

4. Anti-competitive practices will be targeted, particularly where these concern

intermediate inputs to downstream labour absorbing production as well as

consumer goods to low income households.

New areas of focus of industrial policy include:

Metals fabrication, capital and transport equipment, green and energy saving

industries and agro processing, will be qualitatively

IPAP2 will build on and broaden interventions in sectors which were identified in

the first Industrial Policy Action Plan, namely:

Auto motives and components, medium and heavy vehicles; plastics,

pharmaceuticals and chemicals; clothing, textiles, footwear and leather; bio-

fuels; forestry, paper, pulp and furniture; cultural industries and tourism and

Business Process Services (or Call Centres.)

The third cluster focuses on sectors with the potential to develop long-term

advanced capabilities:

Nuclear, advanced materials and aerospace.

It is estimated that the IPAP will result in the creation of 2 477 000 direct and

indirect decent jobs over the next ten years. It will diversify and grow exports,

improve the trade balance, build long term industrial capability, grow our domestic

technology and catalyse skills development.

In terms of local government, it is only the changes to public procurement policy

and legislation that will have implications and operations responsibilities. These

include:

Identifying the opportunities to improve domestic procurement leveraging

across the three spheres. E.g. the $10 mil offset programme.

The use of public expenditure to support many of the IPAP sectors

Revising the National Industrial Participation Programme (NIPP) and integrate

the Competitive Supplier Development Programme (CSDP).


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2.3. PROVINCIAL POLICY REVIEW

2.3.1. NORTHERN CAPE PROVINCIAL GROWTH AND DEVELOPMENT STRATEGY (NCPGDS) 2004- 2014

The core purpose of the NCPGDS is to enable stakeholders from public, private and

para-stated sectors together with labour and civil society to determine a plan for

sustainable growth and development of the Northern Cape. The NCPGDS sets to

tone for development planning and outlines the strategic planning direction in the

Province. The main objectives set by the NCPGDS for development planning in the

Province are:

1. Promoting the growth, diversification and transformation of the provincial

economy;

2. Poverty reduction through social development;

3. Developing requisite levels of human and social capital;

4. Improving the efficiency and effectiveness of governance and other

development institutions;

5. Enhancing infrastructure for economic growth and social development.

Implication

•The FBDM must make concerted effort to meet national employmenttargets set out by the new growth plan. Thus, during policy-making,industry and job creation must at all times be considered in respect tolocal economic development initiatives and their contribution to thegoals of the plan. This is especially relevant for LED projects that are inline with the Growth Plan’s key sector. The IPAP2 has a specificrelevance regarding manufacturing activities in the District as well asthe Green Economy. These two cluster activities can result in fundingopportunities for LED initiatives related to manufacturing, agro-processing and green economy.


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2.3.2. NORTHERN CAPE PROVINCIAL SPATIAL DEVELOPMENT STRATEGY

The Northern Cape Province is still in the process of formulating a Spatial

Development Strategy, but as part of the NCPGDS there is Section dedicated to

this aspect. It states that the Spatial Development Strategy should not only give

effect to national spatial development perspectives, but should also make provision

for provincial, district and local development priorities for the space economy in

the Northern Cape. This will provide a means to guide strategic decisions regarding

the location and distribution of resources in time and geographic space.

2.3.3. NORTHERN CAPE LOCAL ECONOMIC DEVELOPMENT STRATEGY

The Northern Cape LED is currently being formulated and is aimed at building a

shared understanding of LED in the Province and to put into context the role of

local economies in the provincial economy. It seeks to mobilise local people and

local resources in an effort to fight poverty.

Implication

•The NCPGDS identified the following priority sectors:

•Agriculture and Agro-Processing

•Mining and Mineral Processing

•Manufacturing

•Fishing and Mari culture

•Tourism

•It is necessary for the Frances Baard District Municipality to work in conjunction with the Northern Cape Provincial government to vertically align goals of local IDP’s (and subsequently LED frameworks) with the NCPGDS.

Implication

•Key issues that will be addressed by the Spatial DevelopmentStrategy are Established growth centres, Emerging growthcentres, Stagnating small towns, Land Reform areas,Development corridors and Special resource areas. It would beimportant for the FBDM to be aware of nodes and/or corridors tobe developed within the municipal area in order to align the LEDinitiatives with these nodes and/or corridors.


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2.3.4. NORTHERN CAPE AGRICULTURE & AGRO-PROCESSING SECTOR DEVELOPMENT STRATEGY

The NC AAPSDS is one in a series of economic sector development strategies that

aims to provide for a more accurate prioritisation of effort and resource allocation

by the public sector generally, and provincial government, in particular, in its

endeavours to deliver on its mandate to promote the economic development of

the Northern Cape province.

The NC’s traditional strength is in the production of a wide range of primary

commodities. Adding value to the commodities could make a significant

contribution to the transformation of agriculture in the province and, by extension,

rural and national development.

Agro-processing can increase the viability, profitability and sustainability of

production systems through their impact on increasing incomes of primary

producers, create employment and foreign exchange earnings, and address the

market risks associated with primary agricultural production.

Implication

•Although the Northern Cape LED is currently still beingformulated it is important that the FBDM align their initiativeswith those identified in the Northern Cape LED. This willensure a coordinated approach to economic growth anddevelopment within the FBDM which falls within the NorthernCape Provinces

Implication

•The FBDM need to align their Agriculture and Agro-Processinginitiatives with this Strategy in order to contribute to thebetter alignment and coordination of the Agriculture and Agro-Processing Sector within the Northern Cape.


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2.3.5. NORTHERN CAPE PROVINCE MINERAL SECTOR DEVELOPMENT STRATEGY

The Mineral Sector Development Strategy also forms part of the series of economic

sector strategies. The Northern Cape Province has very rich mineral deposits and

this strategy aims to align the various initiatives in the Northern Cape regarding

the Mining Sector.

It is important to note that although the Mining contributes largely to the GGP of

the Northern Cape, the sector is in decline and as part of this strategy the Northern

Cape Province is looking at better job creation opportunities by diversifying the

Mining industry.

The following are Provincial LED initiatives that would have an impact on the FBDM:

Manufacturing Cluster and Centre’s

The Department of Economic Affairs has in an effort to establish manufacturing

centres in all 5 districts within the province established a partnership with the

Centre for Advanced Manufacturing (CFAM) based at the University of the North

West. This is in an effort to facilitate local manufacturing of a range of products

(list of 10 products to the value of R100 million) that has been identified. This will

give a boost to the economy as this will service the agricultural and mining sector

which relies on other provinces for such services.

The project will have four major phases and it is hoped that the project will benefit

women, youth and the disabled, approximately 100 jobs will be created from this

initiative.

Business Process Outsourcing & Off Shoring

Two main centres have been identified as the centres for business process

outsourcing and off-shoring. These centres are Sol Plaatje and Ga-Segonyana

Municipalities. It is hoped that a total of 350 jobs will be created over the 08/09

and 09/10 financial years. The Northern Cape was part of a delegation that visited

Implication

•The Frances Baard District Municipality have large amounts ofminerals in the area, however it would be the responsibility ofthe FBDM to promote the diversification of the Mining industryin order to provide better job opportunities for the localcommunities.


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the United States and the Netherlands which aimed to brand South Africa as a

destination for BPO & O.

2.4. DISTRICT POLICY REVIEW

2.4.1. INTEGRATED DEVELOPMENT FRAMEWORK OF THE FRANCES BAARD MUNICIPALITY

The Frances Baard District Integrated Development Plan is a holistic strategic plan

that provides an overview of the development strategies envisaged for the whole

district. It provides strategic direction; it coordinates and aligns the initiatives of

local municipalities in the district with those of the Provincial Sector Departments.

The district Integrated Development Plan mainly focuses on the following aspects:

Socio-economic development – especially economic growth, job creation,

and poverty eradication, broad based black economic empowerment and

environmental development.

Service delivery, with emphasis on the provision of basic services.

Governance, specifically as it relates to deepening democracy, thus

through the ward committees system, capacity building, etc.

It is critical that the strategies adopted in the District IDP are aligned with the

principles of NSDP and the objectives of the Northern Cape Provincial Growth and

Development Strategy (NCPGDS).

2.4.2. FRANCES BAARD GROWTH AND DEVELOPMENT STRATEGY

The FBDM GDS is envisaged as a process of collective planning to improve

alignment between spheres of government and other social partners to impact on

poverty and accelerated shared growth. The FBDM GDS provides an action plan to

meet the development needs of the community. The GDS aims to achieve this

through the further development of leading economic sectors namely:

Agriculture and Agro-Processing

Implication

•The IDP addresses the existing needs of the communities inthe Frances Baard District, through a framework ofsustainability and identified roles and projects for the FrancesBaard District Municipality, which includes the PhokwaneMunicipality, the Magareng Municipality, the DikgatlongMunicipality and the Sol Plaatje Municipality.


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Mining and Mineral Processing

Tourism

Manufacturing

Transport

Services

SMME Development

Institutional Capacity Building

2.4.3. FRANCES BAARD DISTRICT MUNICIPALITY CONSOLIDATED LOCAL ECONOMIC DEVELOPMENT STRATEGY

The Consolidated Local Economic Development Strategy was also formulated by

Urban-Econ and submitted to the FBDM in 2006. However the strategy was only

approved by Council in 2009. In the process of formulating the new LED Strategy

Urban-Econ consulted the consolidated document in all processes in order to

ensure that the documents are aligned.

Implication

•It is important that the FBDM align these initiatives andthose identified within the LED Strategy in order to ensurebetter development of the FBDM economy as a whole. Thesepriority economic sectors provide an opportunity for focusseddevelopment within the FBDM.

Implication

•The FBDM needs to assess the impact of the previous LEDStrategy and assess the issues that have emerged over thelast term of the Strategy and through this process addressthose issues adequately.


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2.4.4. FRANCES BAARD SPATIAL DEVELOPMENT FRAMEWORK

The Spatial Development Framework (SDF) of the FBDM provides the District with

development directives regarding Economic Development Nodes and Economic

Growth Potential of Towns. The SDF makes provision for agro-processing, mining

beneficiation, tourism and tertiary education nodes within the FBDM spatial

perspective.

It is important that FBDM ensure that the IDP, LED and SDF of the Local

Municipalities are aligned to that of the FBDM. It is also important that LED

initiatives are incorporated into the IDP’s and SDF’s of each of the Local

Municipalities in order to ensure that LED initiatives are supported financially and

spatially.

Implication

•The SDF identifies nodes for specific development activitiesand it would therefore be the responsibility of the FBDM toalign the LED initiatives to these already identified nodes.


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3. SITUATIONAL ANALYSIS

The focus of this phase is to collect both Social and Local Economic Development

focal data (socio-economic research) and as such get an understanding of the

status quo within the municipality. This phase shall further begin a process of

developing a municipal profile of the LED situation within Frances Baard. To this

extent this phase shall include the conducting of institutional and other related

assessments. A number of research data bases shall also be used to arrive at the

following:

To provide the current overview of the Frances Baard District economy

including sector performances for agriculture, mining, manufacturing, tourism

and other sectors.

Demand and supply analysis of existing economic activities in the Frances

Baard district and the identification of key economic role players and drivers.

The LED Unit and its capacity to implement effective LED.

The Planning and coordination aspects of LED within the municipality.

The various LED related projects, both current and envisaged.

The population, migration and human development related data.

The major economic development sectors in the area and the growth trends

of these sectors (this shall also focus on the impact of the current global

economic crisis).

Formulation of SWOT analysis including an evaluation of identified strengths

and opportunities and analysis of weaknesses and threats.

Identification of constraints to growth and development such as, the impact

of HIV/AIDS on the demographic profile, exploitation of resource base,

international market influences, environment degradation, lack of

entrepreneurial skills and poverty.

Furthermore, the situational analysis shall include the assessment of the current

LED Initiatives and in this context shall use a multi-disciplinary approach towards

this evaluation, where the progress of each project is measured, the impact of

these projects in terms of jobs, venture creation, skills development, affirmative

procurement etc.

The collation of such data has been be based on the various available

methodologies such as the development of questionnaires, one-on-one interviews

and desk top studies of the various data bases. Following the outcomes of the

assessments process Bopa Lesedi has developed a potential analysis which

incorporates the following:

a. The spatial context of developments across the district. This implies proper

maps, including clear indications of critical transport routes, nodes and

hubs.


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b. A clear indication of the economic basis of each of the major towns within

the various town of the Frances Baard Municipal Area.

c. A longer-run perspective on the relative significance and potential growth

of the main economic sectors (with clear indication of significant niches

within these sectors). The sectors should include amongst others:

Mining.

Manufacturing.

Tourism, sport, recreation.

Financial and business services.

Transport.

Construction.

Public administration and social services (access to education,

health, etc.)

d. An indication of the relative significance of different types of enterprises,

shaping local development, ranging from large multinationals (e.g. mining

groups) to informal micro-enterprises (e.g. in tourism, crafts and trade).

e. A long-term perspective on population growth, linked to expect inward and

outward migration as well as the HIV/Aids factor.

f. Some comparison of Frances Baard trends and critical development factors

with those characterising other small mining towns.

g. The information has to incorporate existing (as summarised in the

Inception Report) and envisaged projects/initiatives.

3.1. CURRENT STATE OF FRANCES BAARD

The Northern Cape has a surface area one third the size of SA, yet it is inhabited

by only 2, 2% of the country’s population. The Northern Cape Province is the

largest province, with an estimated population of 1,096,731 people; which is the

smallest share of the South African population

(Statistics SA, Midyear population estimates 2011).

Frances Baard District Municipality is one of the five

districts in the Northern Cape Province. The District is

bordered on the eastern side by the North West and

Free State Provinces and accommodates a population

of approximately 353, 198 people (Community

Survey, 2007)

The District Municipality was named after Frances

Baard, a woman who played an important role in the

struggle for democracy in South Africa. Frances Baard

District Municipality (DM) is one of five district municipalities located in the

Northern Cape Province.


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Frances Baard District Municipality is the most populated district in the province

with a 33.4% of the province population distribution. The district comprises of four

local municipalities with the population distribution estimated as follows: Magareng

(22 000), Dikgatlong (42 000), Phokwane (50 000) and Sol Plaatje (244 000) with

the highest population (Quantec Research Data of 2011).

Frances Baard District Municipality is the smallest district in the Northern

Cape. However, it accommodates the largest portion of the population of the

Province.

The municipality is located in the far eastern portion

of the province. It shares its northern borders with

the North West province and its eastern border with

the Free State province. Kimberley, which is where

the district municipality is located, is less than 500km

away from Johannesburg in the north, and less than

1 000km away from Cape Town in the south and the

Port of Durban in the east. It comprises the four local

municipalities of Dikgatlong, Magareng, Phokwane

and Sol Plaatje.

The Frances Baard District Municipality is a place of wide-open spaces, where

golden savannahs stretch as far as the eye can see. It is a place of arid natural

beauty, where resilient green cacti and tenacious thorn trees fill the landscape,

and bright yellow sunflowers can be seen following the sun’s arc across deep blue

skies.

Five gushing rivers divide this landscape: the Vaal, Orange, Modder, Harts and

Riet, which give life to the region and its inhabitants.

The history of this region is very much defined by the diamond rush of the 19th

century. A shepherd called Swartbooi found a diamond in 1869 that caught the

world’s attention. The 83-carat diamond was bought by a collector called Schalk

van Niekerk and came to be called The Star of South Africa. Sir Richard Southey,

the Colonial Secretary of the Cape declared: “This is the rock upon which the future

of South Africa will be built.”

In no time diamond diggers from around the world converged on this region in

search of fortune. First the riverbanks of Klipdrift (Barkly West) were scoured and

then a new rush of digging began in Kimberley, where the biggest hand-dug

excavation in the world was created through sheer determination. Soon Kimberley

was the diamond capital of the world, and a bustling metropolis spawned.

To this day, diamonds can still be found near Hopetown, in Kimberley and on the

banks of the great rivers that flow through the Diamond Fields. Apart from its

mining roots, the Diamond Fields have a great variety of other experiences on


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offer. There are cultural attractions like the ancient San etchings at Wildebeest Kuil

and the Anglo-Boer War Battlefields Route to explore. There are several game

farms in the region where you can see the endangered rhino and other game, and

birdwatchers can spot a wonderful variety of endemic species. The five major rivers

are perfect for water activities like fishing, paddling and boating, and explorers can

go in search of the rumbling Gong-Gong Waterfall out near Barkly West. Unique

experiences include the world-class Maloof Skate Park in Kimberley, Agritourism

in the lush Vaalharts Valley and a visit to the beautiful old Nazareth House Mission

Station near Warrenton.

Afrikaans and Setswana are the principal languages of the District, with English

and Xhosa spoken to a much lesser degree. The continental climate is hot in the

summer (an average maximum of 32.0C) with occasional dramatic thunderstorms

and mild winters with endless blue skies. The N12 Route runs through the District,

which is almost exactly in the middle of South Africa; 500km from Johannesburg

to the northeast and 1000km from Cape Town in the southwest.

Dikgatlong Local Municipality was established in 2000

through the Local Government Demarcation process, whereby

the towns of Barkly West, Delpoortshoop and Windsorton were

amalgamated into one municipality.

The name Dikgatlong is derived from a Setswana word

meaning "confluence", as it refers to the place where the Harts

and Vaal Rivers flow into each other at Delpoortshoop.

Dikgatlong is one of four local municipalities within the jurisdiction area of Francis

Baard District Municipality. Francis Baard is one of five district municipalities within

the boundaries of the Northern Cape Province. The municipality lies on the

northern bank of the Vaal River, 37km from the city of Kimberley, which is south-

east from Dikgatlong.

Dikgatlong is a Setswana name meaning “confluence”, referring to the place where

the Harts and the Vaal rivers flow into one another. The name can be traced back

some 300 years. Dikgatlong is located in the middle of the Frances Baard District

Municipality and the town of Barkly West is its administrative centre. Other towns

in the region are Delportshoop, Longlands, Kutlwano, Windsorton, Ulco and Sydney

on Vaal.

Dikgatlong is home to the site of the first alluvial diamond digging in the region

and is renowned for its excellent fly-fishing spots and luxury game lodges where

you can see many of the Big Five. The adventurous are encouraged to go in search

of the Gong-Gong Waterfall on the Vaal, where the quiet river suddenly tumbles

into a gully and fills out into a tranquil pool.


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Today livestock, irrigation farming and commercial mining drive the district’s

economy, although a few diggers can still be seen sifting through gravel on the

river banks in the tradition of diamond diggers of old! Setswana is the most widely

spoken language, followed by Afrikaans.

Magareng Local Municipality is an administrative area in the

Frances Baard District of the Northern Cape Province. Magareng is

a Setswana name meaning "in the middle". The name reflects the

geographic location of the municipality in relation to other areas.

Warrenton is on the banks of the Vaal River and about 75Km from

Kimberley, which was in arid country. Diamonds were found in

Kimberley in 1870 soon there was a huge demand for food. In

1880 a syndicate bought the western portion of the farm Grasbult on the Vaal

River.

The name ‘Magareng’ is the Setswana word meaning ‘the middle’, and is derived

from the fact that this region is literally in the middle of the country. Warrenton, a

quiet agricultural town, is the administrative centre of the municipality and other

communities include Ikhutseng, Warrenvale and Windsorton Road.

The area is largely defined by agriculture, which is sustained by one of the largest

irrigation schemes in the southern hemisphere. There are also a number of

commercial farms which breed cattle, game, ostrich and goats. There are three

historic stone blockhouses from the Anglo- Boer War still standing on the banks of

the Vaal River, and an old railway bridge built in the 1920s – a line that still

connects the Northern Cape and the North West Province.

Phokwane Local Municipality is named after Queen Phokwane,

the wife of Kgosi Galeshewe of the Barolong boo Ra-Tlhaping tribe.

Phokwane is nestled in the lush green delta of the Hartswater

region and boasts the second-largest irrigation scheme in the

Southern Hemisphere, namely the Vaalharts Irrigation Scheme.

The municipality is situated 125km along the N18 to Vryburg. The

administrative seat of the municipality is Hartswater. The majority

of inhabitants are found in the peri-urban areas of the municipality. In terms of

agriculture, Phokwane exports grape, citrus and olive products.

There are two major towns in the area – Hartswater (the administrative centre)

and Jan Kempdorp. Smaller towns include Valspan, Pampierstad and Ganspan.

Phokwane is defined by the lush Vaalharts Valley and the many activities

surrounding the harvesting and production of local produce such as olives, pecan

nuts, peanuts, citrus, wine, cotton and stone-fruit. Wheat, mealies (corn) and

Lucerne are also grown. The Vaalharts Irrigation Scheme that sustains 1280 farms


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in the area is the second largest irrigation scheme in the southern hemisphere,

and covers 36,950ha.

Activities in the area include taking a dip in a canal and exploring the region by

4x4 or even micro light. Nature lovers can explore the wilderness on horseback,

spot a variety of endemic birds, go fly-fishing on one of the gushing rivers or visit

the serene Ganspan Pan. Hartswater and Jan Kempdorp have all the necessary

modern amenities including golf courses, shopping complexes, restaurants and

accommodation to suit every need.

Sol Plaatje Local Municipality is located in the Frances

Baard District Municipality in the Northern Cape Province. It

includes the diamond mining city of Kimberley.

This municipality is named after Solomon ‘Sol’ Plaatje, a

writer, politician and activist renowned for his incredible grasp

of languages (fluent in seven). Sol was the first Secretary

General of the African National Congress and dedicated much

of his life to the struggle and the liberation of African people.

At the heart of Sol Plaatje Municipality is the bright metropolis of Kimberley, the

capital city of the Northern Cape, and Galeshewe, the vibrant township on the

city’s border. The municipality also includes the towns of Modder River, Ritchie,

Riverton, Ronald’s Vlei, Beaconsfield, Kenilworth and Spytfontein.

The municipality has a population of about 250,000, by far the most populated

region in the Frances Baard District. Agricultural land is mostly used for game

farming, sheep and cattle farming, and cash crops such as lucerne, grapes, cotton

and soybeans. Mining is still an integral part of the economy today.

Kimberley receives a significant 3,472 hours of sunshine per annum; this is a major

resource with potential for solar power and electricity generation and heating.

Projects have already been initiated as part of the municipality’s innovative eco-

village housing developments. (Source: http://www.localgovernment.co.za)

http://www.localgovernment.co.za/


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3.2. POPULATION DISTRIBUTION

3.2.1. POPULATION GROWTH

The Frances Baard population decreased slightly from 324 678 in 1996 to 323 523

in 2001 and then increased over the next ten years at an average annual growth

rate of 1, 35% to 382 086 in 2011.

Overall, the population therefore increased by 58 524 over the period 2001 to or

on average approximately by 5852 persons per year. The population in Frances

Baard increased at a slightly higher rate than in the Northern Cape province on

average where the average annual growth rate amounted to 0,83% for the same

period.(Note that the base year is taken as 1996).

GRAPH 1: POPULATION GROWTH

(STATSSA, Census 2011)

The Census 2011 Municipal Report for the Northern Cape indicated an average

growth rate of 1.35% for the FBDM area between 2001 and 2011. Sol Plaatje and

Dikgatlong Local Municipalities indicate the highest population growth in die

District of 2.0%, with Phokwane Local Municipality at 0.30%.

The district population has grown from 315 853 in 2005 to 395 148 in 2013; this

means that between 2005 and 2013 the district population has grown by an annual

growth rate of 1.19%. For the same period, 2005-2013, HIV infection annual

growth rate was 14.4%, HIV deaths annual growth rate 19.79% and other deaths

annual growth was only 1.95% (FBDM IDP 2013 -2016).

These growth rates are simply an extrapolation of those for the last ten years and

do not take factors that could influence population growth into account.


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3.3. HOUSEHOLD DISTRIBUTION

As could be expected Sol Plaatje is by the far the densest municipality in the district

follows by Phokwane and Dikgatlong is the least dense municipality.

TABLE 1: HOUSEHOLD SIZE

LM

Household size (Percentage) Total

1 2 3 4 5 6 7 8 9 10+

Sol Plaatje 19 19 17 18 11 7 4 2 1 2 100

Dikgatlong 22 19 16 16 10 7 4 3 1 2 100

Magareng 24 20 15 14 9 7 4 3 2 3 101

Phokwane 25 20 15 14 10 6 4 2 2 2 100

(StatsSA Census 2011)

From the household size table it is evident that Frances Baard has got fairly small

household sizes with 21% of household living one person, 19% 2 people, 16%

three people, 17% four people and household with five plus sizes making up only

27% of households.

From census 2011, it is also with noting that 85% of Frances Baard District

Municipality is formal residential area, 8% informal, 1% tradition, 4 % farms, 1%

commercial, 1% small holding and 1% collective living quarters (FBDMSDF 2013).

3.4. ECONOMIC PROFILE

Local Economic Development is the creation of a platform and environment in order

to engage stakeholders to implement municipal strategies and programmes. It’s

the process whereby all economic forces in a municipality are brought on board to

identify resources, understand needs and plan the best way of making the local

economy fully functional, investor friendly and competitively productive.

• Growth statistics can be seen as a key indicator for possible

demand within the economic as well as infrastructure

• Growth statistics can also be an indication of migration paterns

which will have a direct impact on LED.


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Municipalities are mandated by the provisions of Section 152 (c) of the Constitution

of South Africa 1996 to ensure the socio-economic development of local

communities.

The district economy is still very much primary based and skewed towards the Sol

Plaatje Local musicality economy. Sol Plaatje alone is responsible for just over 80%

(rand value) of the value addition in the District while the secondary sector

contributes a mere 7,2% (FBDM IDP 2013 -2016).

3.4.1. GROSS DOMESTIC PRODUCT

The Northern Cape Province recorded a 2.1% annual economic growth rate which

is 1.5% lower than the average South African Growth Rate of 3.6%. The Northern

Cape Province’s largest economic contributor is the primary sector (mining and

agriculture) which contributes 32.2% followed by the secondary sector

(manufacturing and construction) which contributes 7.3% and lastly the tertiary

sector which contributes 51% of the Provinces’ Economy (Statistics SA: GDP

2010).

The Gross Domestic Product indicates the value of services and goods produced

within the geographic boundaries of an area during a period of one year. Frances

Baard District Municipality is the strongest economic region in the province,

accounting for 36% of the 28 provincial gross domestic products (GDP). The Major

contributor to the regional GDP is Sol Plaatje (74%), followed by Phokwane (15%),

Dikgatlong (8%), Magareng (2%) and the District Management Area (1%).

Issues

The District continues to have high unemployment rate with Dikgatlong

and Magareng Municipality exceeding 40%. Due to its primary -Sol

Plaatje has about 67,14% of the Economically Active population

Inability to identify and market bankable investment opportunities

Identification and marketing of ‘bankable’ investment opportunities.


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GRAPH 2: GDP OF FRANCES BAARD

(Global Insight 2011)

In terms of correlation and trend, we see from Graph 1 that the only lagging

economy is Dikgatlong which has been on a worrying decline since 2005. Other

than Dikgatlong, there has been a moderate slow-down in the economic growth of

other Municipalities.

The economy of the district consists of the primary (agriculture and mining),

secondary (manufacturing, electricity and construction) and tertiary (trade,

transport, financial and social services) sectors (FBDM IDP 2012-16).

GRAPH 3: SECTOR GROWTH

(Global Insight, 2011)


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The above graph, on the Sector Growth of the District, provides a picture of the

sector performance in the District. It is evident that the tertiary industries have

been performing the best followed by primary and lastly the secondary, especially

the electricity sector which provides a negative growth rate (FBDM IDP 2012-16).

Clearly, the Frances Baard District economy is characterised as a growing services

economy providing, as it were, “soft” services to the wider community. Fixed

capital investment in manufacturing and mining has stagnated, indicating that

Frances Baard and its surrounds is not considered a major manufacturing area that

attracts long term fixed capital investment.

This has an impact on employment in the primary sector, amongst others, because

of declining mining activities and increased mechanisation in both the agricultural

and mining sectors. In fact, the Primary sector has shed more than 5 000 jobs

over the period 1996 to 2011.

The Secondary sector (Manufacturing, Electricity, gas and water and

Construction), has likewise shed a large number of jobs – from 14 339 in 1996 to

7 769 in 2011, a loss of 6 570 jobs over the period. This state of affairs emphasises

the fact that manufacturing and construction are not attracting investments and

that these sectors have been in decline for a long time.

The Tertiary sector (Wholesale and Retail Trade, Catering and Accommodation;

Transport, Storage and Communication; Finance, Insurance, Real Estate and

Business Services; Community, Social and Personal Services and General

Government) is the only sector that registered real growth over the period 1996

to 2011, increasing its share in the GVA from 69,9% in 1996 to 79,2% in 2011

(FBDM SDF 2013).


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GRAPH 4: GVA PER SECTOR

(Quantec, 2011)

Over the same period, employment in this sector increased from 46 141 persons

to 72 614, an increase of 26 437 jobs. This represents an overall increase of 14

577 jobs over the 15 year period, or, on average 972 jobs per year. The GVA is

illustrated in the table and graph above.

Within the income brackets indicated in the Graph the number of people earning

that amount in FBDM is smaller compared to the number of people in the Northern

Cape. The number of people earning nothing or less than R800 per month is larger

in the Northern Cape than in Frances Baard (FBDM SDF 2013).

3.4.2. HOUSEHOLD INCOME

A total of 12 271 (13%) of the households in the District earn no income with 10%

earning less than R800 per month. 20% (19 355) of the households earn between

R1 601 – R3 200 and 38% earn more than R3 200 (FBDM IDP 2013 -2016).


41 | P a g e ©

TABLE 2 : HOUSEHOLD INCOME

Household Income per Local Municipality

Municipality No Income R1 – R 400 R 401 -801 R 801 –

R1 600

R 1 601 –

R 3 200

R 3 201 -

Plus

Totals

Sol Plaatje 7 032 2 001 3 215 9 683 11 291 27 073 60 295

Dikgatlong 1 814 618 866 2 905 2 800 2 963 11 966

Magareng 934 294 477 1 440 1 430 1 543 6 118

Phokwane 2 491 868 1 403 4 004 3 834 4 944 17 544

Total 12 271 3 781 5 961 18 032 19 355 36 523 95 923

Percentage 13% 4% 6% 19% 20% 38% 100%

(FBDM SDF 2013).

Indicated in the Table above is the percentage of households earning less than R3

200. Within Dikgatlong Municipality 60.07% of the households earn less that R3

200, with Magareng Municipalities households at 59.69%. 43.43% of the

households in Sol Plaatje Municipality earn less that R3 200 (FBDM SDF 2013).

3.4.3. UNEMPLOYMENT

The unemployment rate indicates the number of people who are without

employment as a percentage of the total economically active population. According

to Statistics South Africa, the unemployment rate is the proportion of the labour

force that is unemployed. Unemployed persons are those aged between 15-64

years, who:

Not employed during the last 7 days

Actively looked for work or tried to start a business

Able to start work within 7 days

The Frances Baard DM has an unemployment rate of 27.9%, similar to that of the

Northern Cape. Furthermore the Dikgatlong LM has the highest unemployment

rate (39.7%) within the District Municipality as compared to the other local

municipalities. The main contributing factor to the low levels of employment in

Dikgatlong LM is the high percentage (86.2%) of labour force that has not obtained

a Grade 12 Senior Certificate and Higher Qualification, resulting in a primarily

unskilled labour force (Quantec Research, Standardized Regional Data, 2011).

The largest portion of formally employed persons in Frances Baard are skilled

(44.7%), followed by semi- and unskilled (41.4%) workers. Only 13.9% of local

workers are considered to be highly skilled.


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The official unemployment rate in the Frances Baard District Municipality in 2011

rose to 27.2% from 26.9% in 2010 and 26.8% in 2009. Looking at the local

municipal level, Dikgatlong LM, Magareng LM and Phokwane LM have the highest

unemployment rate in the district (well above that of the District level), with the

2011 rates sitting at 38.5%, 32.6% and 32.5% respectively. However, the

unemployment rate in Sol Plaatje LM in 2011 is below that of the District, at 24.6%.

This can be attributed to the fact that this local municipality houses the business

hub of the Northern Cape Province, the City of Kimberley.

GRAPH 5: UNEMPLOYMENT RATE

(Quantec Standardised Regional Data, 2011)

3.4.4. EMPLOYMENT

Despite the high unemployment rate, the District has seen an increase in the level

of jobs created post South Africa's democracy. The total number of people

employed in the district is registered at 92 668, in 2011, from 77033 in 1995.

The Tertiary sector has shown a steady increase in the level of employment from

1995 to 2011, while the Primary sector saw a decline in its contribution to

employment over the same period. It is important to note that the District was

quite resilient in job creation during the 2007/09 recession, where the country saw

a number of job cuts. This can be attributable to the local government's support

in keeping the economy afloat.

At the local municipal level, Sol Plaatje recorded the highest number of

employment in 2011, at 60114. In addition, the LM has seen a steady increase in

the employment level from 1995 to 2011.

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Sol Plaatjie Dikatlong Magareng

Phokwane FBDM


43 | P a g e ©

GRAPH 6: EMPLOYMENT STATUS FBDM


The breakdown by sector shows that the Tertiary sector is the biggest driver of

employment, led by government at 32.9% of total jobs created, the trade sector

at 15.8% community services 14.6% and finance & business at 11.5%.

GRAPH 7: EMPLOYMENT BY SECTOR (% CONTRIBUTION)


The tertiary sector is the principal driver of employment in the Sol Plaatje local

municipality, driven by general government, community services and trade

industries. The majority of the labour force in the Dikgatlong municipality is

absorbed by the mining Industry, followed by trade and general government. The

0

20000

40000

60000

80000

100000

120000

1995 2000 2005 2011

Employed Unemployed Not Economically Active

6.5%6.8%

4.0%0.5%

3.9%

15.8%

3.5%

11.5%

14.6%

32.9%

Agriculture

Mining

Manufacturing

Electricity & Water

Construction

Trade

Transport

Finance & Business

Community Services

General Government


44 | P a g e ©

Magareng LM labour force is absorbed by government and community services and

lastly, in the Phokwane LM agriculture, community services, government and trade

industries are the biggest driver of employment

TABLE 3: EMPLOYMENT BY SECTOR (% CONTRIBUTION) FOR LM'S

Sol Plaatje Dikgatlong Magareng Phokwane

Agriculture 1.7 8.9 9.3 29.3

Mining 4.0 34.4 6.1 2.5

Manufacturing 3.7 5.7 2.6 5.3

Electricity and water 0.3 0.4 0.9 1.7

Construction 3.7 5.6 3.1 4.6

Trade 16.4 14.2 15.5 14.5

Transport 3.5 3.5 5.0 3.2

Finance and Business 13.0 4.3 11.4 7.6

Community Services 14.8 10.1 20.0 16.0

General Government 38.9 12.9 26.0 15.4


3.4.5. SKILLS LEVEL

The lack of appropriately skilled people is one of South Africa's principal drivers of

the high unemployment rate. There has been clear evidence of a shift in the profile

of the main economic sectors of the country over the past 2 decades, characterised

by a decline in the share of primary and secondary sectors (which are labour

intensive and can absorb unskilled labour) and an increase in the Tertiary sector

(which requires skilled labour). This shift is also true for the FBDM, as will be

illustrated in the Production profile of the District.

Given that the largest employers in the FBDM come from the tertiary sector, almost

half of the people employed in the District are skilled (41.8%); there is however a

large portion that is Semi- and Unskilled (36.1%).

A breakdown of the local municipal level shows that just less than 50% of Sol

Plaatjie's workforce is skilled and interestingly, this LM has the highest portion of

highly skilled labour in the district, at 24.9%.

The percentage of semi-and unskilled labour is highest within the Dikgatlong,

Magareng and Phokwane LMs, at 57.2%, 41.7% and 54.7% respectively.


45 | P a g e ©

GRAPH 8: SKILLS LEVEL

(Quantec Standardised Regional Data,2011)

3.4.6. PRODUCTION PROFILE

In 2011, the total output from the Frances Baard District Municipality was R11

billion, contributing approximately 33.1% to Northern Cape's total output for the

year.

TABLE 4: GVA BY SECTOR

FBDM Sol Plaatje LM Dikgatlong

LM

Magareng LM Phokwane

LM

Agriculture 2,5 0,7 3,0 3,9 15,3

Mining 10,6 6,5 48,4 9,2 4,5

Manufacturing 4,2 3,6 6,9 2,2 7,3

Electricity & Water 2,0 1,3 1,7 3,9 7,7

Construction 1,5 1,2 2,4 1,9 2,7

Trade 12,9 13,1 10,4 12,7 13,9

Transport 12,5 13,1 8,3 15,5 11,1

Finance & Business 19,6 21,6 7,0 22,4 14,6

Community Services 11,2 11,9 5,3 12,8 12,0

General Government 23,0 26,9 6,6 15,5 11,0

22.124.9

12.2

19.3

14.3

41.845.2

30.6

39.0

31.0

36.1

29.9

57.2

41.7

54.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

FBDM Sol Plaatjie Dikgatlong Magareng Phokwane

Highly skilled Formal - Skilled Formal - Semi- and unskilled


46 | P a g e ©


The largest industries, as measured by their gross value added, were as follows:

General government services – 23.0%

Finance & Business- 19.6%

Trade- 12.9%

Transport – 12.5%

Looking at sectoral contributions within the local municipal level, economic activity

in the Sol Plaatje LM is largely driven by general government, and finance &

business, with the two industries contributing just under half of total output. The

mining industry is the principal driver of economic activity in the Dikgatlong LM,

with gross value added at 48.4%.

Economic activity in the Magareng LM is driven by Finance & Business (22.4%),

Trade (15.5%) and general government (15.5%). Lastly, agriculture is the biggest

industry in the Phokwane LM, with gross value added at 15.3% and this is closely

followed by finance & business at 14.6%. Phokwane LM is a net exporter of grapes,

citrus and olive products.

The District’s agricultural production is made up of predominantly field crops

followed by animal products, animal and horticulture sub-sectors. The actual

products in these sub-sectors are wheat, fruit, peanuts, maize, cotton, olives,

cattle, game farming, viticulture, fishing and vegetables (FBDM IDP 2014 – 2016).

Some of the minerals found in the District include diamonds, limestone’s, and

cement. Of these, diamond mining is the dominant contributor to mining

production. Limestone and cement deposits are found/located in the Alco area.

Small scale miners continue to look for opportunities and thus resulted in a lot of

small scale operation in the Dikgatlong and Windsorton areas.

3.4.7. LOCATION QUOTIENT GVA

A location quotient (LQ) is an analytical statistic that measures a region’s industrial

specialization relative to a larger geographic unit (usually the nation).

An LQ is computed as an industry’s share of a regional total for some economic

statistic (earnings, GDP by area, employment, etc.) divided by the industry’s share

of the national total for the same statistic. For example, an LQ of 1.0 in mining

means that the region and the nation are equally specialized in mining; while an

LQ of 1.8 means that the region has a higher concentration in mining than the

nation.


47 | P a g e ©

TABLE 5: GVA

FBDM Sol Plaatje LM Dikgatlong LM Magareng LM Phokwane LM

Agriculture 2,5 0,7 3,0 3,9 15,3

Mining 10,6 6,5 48,4 9,2 4,5

Manufacturing 4,2 3,6 6,9 2,2 7,3

Electricity & Water 2,0 1,3 1,7 3,9 7,7

Construction 1,5 1,2 2,4 1,9 2,7

Trade 12,9 13,1 10,4 12,7 13,9

Transport 12,5 13,1 8,3 15,5 11,1

Finance & Business 19,6 21,6 7,0 22,4 14,6

Community Services 11,2 11,9 5,3 12,8 12,0

General Government 23,0 26,9 6,6 15,5 11,0


The location quotient table shows the comparative advantage of the District's local

municipalities in terms of production. According to this table, the industries in

which the Sol Plaatje LM has the highest comparative advantages are Government

services, Finance & Business.

It is important to note that the LM has a comparative advantage across most

industries. Looking at the Dikgatlong LM, the Mining industry has the highest

comparative advantage, followed by manufacturing. Both the Magareng and the

Phokwane LMs have the highest comparative advantage in agriculture (FBDM IDP

2013 -2016).

3.4.8. TRADE PROFILE

The Frances Baard District Municipality is a net importer of goods. Total imports

amounted to R88mn in 2011, while exports were a mere R474mn for the same

period. The District's main import partners are Europe and America, with 86.5%

and 10.1% of total imports for 2011.

The top three commodities imported are:

Base metals (78.6%)

Vehicles, aircraft, vessels & associated transport equipment (6.3%)

Machinery & mechanical appliances (4.0%)


48 | P a g e ©

GRAPH 9: IMPORT DESTINATIONS AS % OF TOTAL


The FBDM's main export destinations for 2011 were Europe (57.2%), Asia (25.8%)

and Africa (15.5%). The District's main export commodities are:

Precious and semi-precious stones (56.8%)

Vegetable products (26.9%)

Base metals (12.4%)

GRAPH 10: EXPORT DESTINATIONS AS % OF TOTAL


0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

Africa Americas Asia Europe Oceania Not allocated

0,35,0

10,9

79,7

0,9 3,3

15,5

1,4

25,8

57,2

0,1

Northern Cape Frances Baard DM

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

Africa Americas Asia Europe Oceania Not allocated

0,35,0

10,9

79,7

0,9 3,30,710,1

2,4

86,5

0,4 0,0

Northern Cape Frances Baard


49 | P a g e ©

4. OTHER IDENTIFIED PROJECTS WITHIN THE DISTRICT

It is important to take cognisance of other projects currently identified within the

District. As such a compilation was done of identified projects from the previous

LED, previous IDP as well as the previous DGDS.

TABLE 6: LED PROJECTS

PROJECTS FROM LED LOCATION

AGRICULTURAL SECTOR

Goat Farming

Game Breeding

Vegetable & Fruit Processing

Field Crop Processing

Meat Processing

MINING SECTOR

Formalising of Pebble Mining

Mining Beneficiation

MANUFACTURING SECTOR

Tannery Plant

Chips Factory

Vegetable & Fruit Processing

Field Crop Processing

Meat Processing

Packaging & Distribution of Products

Expansion of the Manufacturing Sector

SERVICE SECTOR

Central Freezing Facility & Cold Storage Transport


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Business Process Outsourcing & Off-shore Hub

SMME Database & Support Programme

Form Business Support Network

Skills Training Facilities

Industrial Development Strategy

TOURISM SECTOR

Mining Tourism

Game viewing/Trophy Hunting

Eco Tourism

Adventure Tourism

Expansion of Hospitality Industry

Tourism Marketing Strategy

TABLE 7: IDP PROJECTS

PROJECTS FROM IDP LOCATION

Landscaping Galeshewe Day Hospital GALASHEWE

SMME Village Galeshewe GALASHEWE

Galeshewe Sport Node GALASHEWE

Parks

Galeshewe Greenbelt Development GALASHEWE

Galeshewe Stadium Upgrade GALASHEWE

Street Upgrade Greenpoint GREENPOINT

Lanscaping Roodepan ROODEPAN

GLIP(Galeshewe Light Industrial Park) GALASHEWE

Playground Equipment Parks


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Additional Bulk Electricity (80MVA) & Network Upgrade

High Mast Lighting (Proj70)

Upgrade Of Substation Ashburnham ASHBURNHAM

Control Panels/Switchgear at Southridge S/S SOUTHRIDGE

Upgrading Silson Road Substation

Electrification of Soul City SOUL CITY

Eletrification of Donkerhoek (521) DONKERHOEK

Electrification of Tswelelang (493) TSWELELENG

Electrification of Greenpoint 10/11 GREENPOINT

Department Of Energy (DoE) Integrated National Electrification

Programme Grant

Electricity Demand Side Management Grant (Eskom)

Kamfersdam Water Reduction KAMFERSDAM

Donkerhoek Services DONKERHOEK

Beaconsfield Upgrade Waste Water Treatment Works BEACONSFIELD

Ritchie Waste Water Treatment Works RITCHIE

Promise Land

Riverton Water Purification Works RIVERTON

Water Zone Metering (Non Revenue Water Minimization Project)

Counter Funding MIG/NDPG

Upgrading of Municipal Flats in Ward 23 WARD 23

Upgrading of 50 Toilets in Ward 19 WARD 19

Planning & Surveying Diamant Park 230 Erven DIAMANT PARK

Homevale WWTW Upgrade (15M) HOMEVALE

Replacement Programme IT Hardware


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GIS Hardware Replacement& New Software

New Cemetery: Detail Planning & Fencing

New Refuse truck

Water Tank

Water & Sanitation for 1450 Stands

Construction of Bulk sewer pipeline for 1450 sites

The Upgrading of Jan Kempdorp Waste Water Treatment Plant JAN KEMPDORP

Masakeng 840 Sites sewer reticulation Network MASAKENG

Upgrading Of Streets and Storm water Pampierstad PAMPIERSTAD

Guldenskat township Establishment GULDENSKAT

CBD Revitilisation

Valspan and Pampierstad CBD Revitalisation Business plan VALSPAN&PAMPIERSTAD

Housing Project Jan Kemptdorp/Valspan (1000) JAN KEMPDORP

Housing Project Sakhile 1450 SAKHILE

Kingston 604, Informal settlement Upgrading KINGSTON

Magogong Station Township Establishment MAGOGONG

Hartswater Cemetery Extension HARTSWATER

South Eastern Development

Electrification Project

Masakeng 1348 MASAKENG

Hartswater New Landill Site Development HARTSWATER

Kingston Electrification project 684 Households KINGSTON

Land Audit

Bonita Park 127 BONITA PARK

Jan kempdorp 100 sites, Settlement planning JAN KEMPTON


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Electrification Project Ganspan GANSPAN

Vaalharts Revitalisation Project VAALHARTS

Sakhile Electrification Project SAKHILE

Barkly West-Water Treatments Works: Refurbishment of Sand

Filters

BARKLY WEST

Maintenance Water Treatment Works

Maintenance of WTW buildings

Maintenance Waste Water Treatment Works

Maintenance Water And Sewer Networks

Repair PLC Longlands -Complete

Maintenance Streets & Stormwater Drainage STORMWATER

Repair & Maintenance of Paved Roads

TABLE 8: DGDS PROJECTS

PROJECTS FROM DGDS LOCATION

Waste Removal

Electricity

Roads

Construction Commission

Local Procurement

Skills Base Development

Awareness of Projects

Availability Of Incentives

Availability of Land for the Development of Infrastructure

SMME Training & Skills Development


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MINING COMMISION

Procurement Reform

Networking Between Government& various Sectors

Processing &B beneficiation of Minerals

Establish Suitable New Transport Infrastructure to Support new

Mineral Operations

Provide Expert Training & Equipment to Small Local

Entrepreneurs

Develop Mining Tourism

Agro-Processing

TOURISM COMMISION

Diamond & Gemstone Jewellery

Preferential Procurement Initiative

Dipudi Project

Establishment of Vaalharts Agricultural Development hub

Olive Project

Flamingo Project


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5. INSTITUTIONAL ANALYSIS

5.1. INTRODUCTION

Part of the process of the development of a Local Economic Development (LED)

Strategy, includes the undertaking of an institutional assessment. The main

purpose of this Institutional Assessment is to arrive at tan understanding of the

following:

i. The municipal capacity to create a conducive environment (i.e. plan,

coordinate and implement) for effective local economic development within

the Frances Baard District,

ii. To understand the state of institutional preparedness for local economic

development within the District

iii. To begin a process of the creation of a vision for local economic

development for District.

The methodological approach used for this assessment was mainly a qualitative

approach. To ensure an in-depth and varied data, a multi-pronged approach was

followed.

The assessment was done using the following data collection instruments:

Literature Review

A desktop review of research and current municipal planning and other critical

documents such as the municipal integrated development plan (IDP) and other

policies such as the procurement policies etc. was undertaken. Furthermore, a

prior assessment of the state of LED across the Northern Cape was undertaken by

the Provincial Department of Economic Development and the team largely used

the results of this study to determine the status quo with regards to LED Capacity.

This study by the Department of Economic Development sought to get responses

on the following broad subjects within the LED environment:

a. Organogramme and management

b. Consultation with a broad range of stakeholders

c. LED Planning, internally and externally

d. LED implementation

e. LED Monitoring and evaluation

f. LED reporting

Collective Reflection by the Assessment Team

The Assessment team after every engagement with the municipalities reflected on

the outcomes and explored ways in which the outcomes of the engagement would

either be addresses or harnessed through the strategy and other interventions.


56 | P a g e ©

The reflection also allowed for the team to begin exploring creative ways in which

the project would be implemented.

5.2. OUTCOMES OF THE ASSESSMENTS

5.2.1. ORGANOGRAMS AND MANAGEMENT

5.2.1.1. DEDICATED LED OFFICIALS

One of the components that were investigated included the question around the

capacity of LED units within the District. Below is a graph summarizing the findings.

GRAPH 11: DEDICATED LED OFFICIALS

When looking at the Capacity of LED Units across the districts, 4 out of 5

municipalities in the district have a person or persons dedicated to focus on LED.

Frances Baard District Municipality and Sol Plaatje Municipality have a very

elaborate LED Unit which focuses on the various aspects of LED. It is important to

note that Magareng only has a Local Economic Development Intern and this

effectively diminishes the municipality’s LED Capacity to effect LED.

5.2.1.2. THE PLACEMENT OF THE LED UNIT

In line with the previous assessment of the capacity, it is important to know where

the Unit is placed within the organogramme within the specific Municipality. Below

is a graph summarizing the findings.

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

Yes No

Dedicated LED Manager/Official

Yes No


57 | P a g e ©

GRAPH 12: LED PLACEMENT

From the assessment, it has become clear that the LED Unit is generally placed at

the Planning and Development Department at the municipality with the exception

of 1 municipality (Magareng). It can be concluded that the placement of these

units within the Planning and Development Departments, makes LED central to

the IDP and other development planning processes.

5.2.1.3. LED REPRESENTATION ON MUNICIPAL MANAGEMENT STRUCTURES

Another question that was asked was whether there is any LED representation on

Municipal management structures and planning. Below is a graph summarizing the

findings.

GRAPH 13: LED REPRESENTATION

Planning and Development

80%

Municipal Managers Office 20%

Where is LED placed on the organogram?

60%

40%

Is there LED representation on Municipal Management structures and Planning?

Yes No


58 | P a g e ©

It has emerged that 40% of the municipalities within the District don’t have direct

representation of LED on Management Structures. This is particularly concerning

as it means LED related matters might not get the necessary attention and

processing as would be desired.

5.2.1.4. LED COMMITTEE ON COUNCIL LEVEL

It is important to know if there is a LED committee on council level. Below is a

graph summarizing the findings.

GRAPH 14: LED COMMITTEE

The assessment has revealed that 60% of the municipalities within the District

report to a Committee of Council. This means both oversight and proper

accountability and at the same time is assured of continued support from the

highest decision making structure within the municipality.

5.2.1.5. LED STRATEGY DEVELOPED BASED ON CONSULTATION

Within the LED process it is important to know if the LED strategies are based on

consultation. Below is a graph summarizing the findings.

60%

40%

Is there a LED committee on council level?

Yes No


59 | P a g e ©

GRAPH 15: LED STRATEGY DEVELOPMENT

All the municipalities within the district have developed their LED Strategies based

on consultation. Consultation in the context of LED means the strategy enjoys

popular buy in from a varied set of stakeholders and as such implies an improved

level of support for the strategy during implementation.

5.2.1.6. LED PART OF THE ANNUAL IDP CONSULTATION

It is critical for the LED to form part of the annual IDP review. All the municipalities

have included the LED in the annual IDP reviews and consultations. This is critical

as it facilitates the process of amendment and review of the LED Strategy based

on a consultative approach. Below is a graph summarizing the findings.

GRAPH 16: LED as part of the IDP Consultation

5

00

1

2

3

4

5

6

Yes No

LED Strategy developed based on consultation

Was the LED Strategy developed based on consultation?

Yes

No

0 1 2 3 4 5 6

LED part of the annual IDP consultation

Is LED part of the annual IDP consultation?


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5.2.1.7. LOCAL LED FORUMS

This is essential as it will be the basis for further engagement and harmonization

of relations among the various stakeholders. Below is a graph summarizing the

findings.

GRAPH 17: LED local forums

All municipalities have local LED Forums including the District LED Forum. This is

a forum where both public and private sector meet to share views, experiences

and plans related to economic development and growth. This is essential as it will

be the basis for further engagement and harmonization of relations among the

various stakeholders.

5.2.1.8. LED ALIGNMENT TO MAJOR PLANS AND APPROVED BY COUNCIL

The key findings of the question whether the LED is aligned to major plans and

approved by council is illustrated in the following graph.

5

00

1

2

3

4

5

6

Yes No

Local forum where Public and Private stakeholders meet

Is there a local forum where Public and Private stakeholders meet?


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GRAPH 18: Alignment of LED

100% of the municipalities in the district have aligned their plans to the critical

planning pieces both within the country and the province. This is essence means

the capacity to leverage resources and benefit from the opportunities and

incentives offered by the various programmes and strategies.

5.2.1.9. STRATEGY IDENTIFIES THE KEY SECTORS OF THE ECONOMY

Key sectors need to be identified to ensure effectiveness. Municipalities must know

how to position themselves to ensure maximum benefit. Below is a graph

summarizing the findings.

GRAPH 19: Key sectors identification

All the municipalities have identified their key sectors and as such have a clear

sense of their competitive and comparative advantage. This means each

0

1

2

3

4

5

6

Yes No

LED strategy aligned to NGP, PGDS, PSDF and adopted by council

Is there a LED strategy that has been aligned NGP, PGDS, PSDF and adopted by council

5

0

Yes

No

0 1 2 3 4 5 6

Key sectors identified

Have key sectors been identified?


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municipality knows how to position itself to benefit maximally from its critical

economic sectors.

5.2.1.10. LED IMPLEMENTATION PLAN

Key sectors need to be identified to ensure effectiveness. Municipalities must know

how to position themselves to ensure maximum benefit. Below is a graph

summarizing the findings.

GRAPH 20: LED Implementation action plan

All the municipalities in the district have LED Implementation Plans. These are to

ensure that the strategy has an annual focus over a 5-year period.

5.2.1.11. SCHEDULE FOR MONITORING AND EVALUATION

Monitoring plays an important role in LED implementation. Municipalities should

attempt to put an efficient monitoring and evaluation system in place. Below is a

graph summarizing the findings.

5

00

1

2

3

4

5

6

Yes No

LED implementation Action Plan

Yes No


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GRAPH 21: Monitoring and evaluation schedule

From the assessment it is seen that 4 out of 5 municipalities or 80% have a

quarterly monitoring system of monitoring of progress related to LED

Implementation. This means that there are opportunities to strategize on

corrective measures should there be a need for it.

5.3. CONCLUSION AND WAY-FORWARD

It is clear from the outcomes above, that the municipalities in the District are well

placed institutionally to take forward the strategy. It is however important that

there be a new focus towards projects and the LED officials to plan, coordinate and

implement LED Projects.

4

1

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

Quarterly None

Schedule for monitoring and evaluation

Quarterly None


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6. OPPORTUNITY ANALYSIS

6.1. BACKGROUND

The purpose of this section is to identify potential local economic development

opportunities in the Frances Baard District Municipality, based on the current

situation within the municipality, as detailed in the preceding situation analysis. A

swot analysis and local sectoral potential analysis will help create an understanding

with regard to the sectoral competitive advantages of the local economy and this

will be used to determine the development potential within Frances Baard.

The analysis seeks to identify supply and demand factors to assess market

opportunities based on the gap between existing and potential levels of

development and by reviewing the resource base for potential exploitation and

beneficiation, i.e. extent, location, utilization and opportunities.

In addition constraints to development such as the impact of HIV/Aids on the

demographic profile, exploitation of resource base, international market

influences, environmental degradation, lack of entrepreneurial skills and poverty

are identified.

This section is structured according to the following sub-sections:

SWOT Analysis

Potential Analysis & Value Chain Gap Analysis

Sector Potential Analysis

In addition constraints to development such as the impact of HIV/Aids on the

demographic profile, exploitation of resource base, international market

influences, environmental degradation, lack of entrepreneurial skills and poverty

are identified LED initiatives around the world have repeatedly failed due some

common myths about LED, listed and deflated below:

1. LED can occur without regional linkages:

Economic development needs cannot be met by individual communities alone –

cognizance needs to be taken of regional context, which has implications for

linkages, leakages, injections and comparative advantages of an area.

2. Economic development causes sprawl:

Economic development can be managed within spatial and environmental

frameworks.

3. Any new business is right for our community:

Communities are characterized by varying skills, education levels, cultural and

moral preferences, consumer preferences and income levels that all impact on


65 | P a g e ©

which types of businesses are feasible on the one hand and socially appropriate on

the other.

In addition, climate, infrastructure and geographical characteristics impact on

which businesses will be viable.

4. An economic development officer will turn our economy around.

Economic development results from the processes of numerous public, private and

civic sector actors within an enabling environment. While LED officers and LED

units are needed to drive these processes, they alone will not transform an entire

economy.

5. Industry will locate here if we provide enough incentives.

While tax and other incentives are considered by industry role-players when

deciding on where to locate, other factors also come into play, such as

infrastructure, proximity to input sources, proximity to markets, quality of life,

labour pool quality, overall business and banking environment and so on. Offering

incentives without addressing the other factors will, at best, result in short-term

investment until such a point as incentive schemes expire.

6. One big manufacturer will solve all of our economic problems.

Economic development must be sustainable and in order to be considered

sustainable, a diverse economy should be the goal. A mature, strong and stable

economy is characterized by strength across a range of sectors, including primary,

secondary and tertiary activities that cater for diverse consumer and business

(value chain) needs.

6.2. SWOT ANALYSIS

A SWOT analysis is a commonly used tool used to facilitate a strategic review of a

particular organisation. It is a high-level exercise that identifies strengths,

weaknesses, opportunities and threats of the organisation. The strengths and

weaknesses are internal factors that the organisation may control. Opportunities

and threats are those factors external to the organisation and therefore the

organisation has little or no control over these macro environment factors.

The SWOT analysis does not identify what should be done. Rather, it provides a

framework for identifying where strategic opportunities may exist and how to avoid

weaknesses inherent in the organisation or external threats from limiting future

expansion and growth. The purpose of the SWOT analysis is to identify and assess

the strengths, weaknesses, opportunities and threats in Frances Baard District

Municipality, in terms of local economic development.

The identification of strengths, weaknesses, opportunities and threats within the

municipal area provides the basis upon which the pillars of the LED strategy may

be built. The SWOT analysis is illustrated below.


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FIGURE 2: SWOT ANALYSIS

6.3. POTENTIAL ANALYSIS METHODOLOGY

As part of the potential analysis a value chain gap analysis has to be conducted

which could be defined as a series of activities that add value to a product.

In the business environment the value chain could be seen as a linked set of value

adding processes that convert basic input materials into products or services for

the final consumer.

The activities that take place can be categorised under two headings, namely:

Strengths

•Most skilled population in Province within District

•Best infrastructure in Province

•Uniquely positioned (N12)

•Food and beverage sector strongest with

•Interlinkages with other provinces

•Existing export trade

•Central rail infrastructure

•Central location of the District

•Mines

•Best services sector offering in province

•Headquarters of most provincial institutions in District

Weaknesses

•Low skills levels to match manufacturing accross the district

•Limited understanding of growth and development in the country

•Misunderstanding of roles and responsibilities with development

•Rigiidty of local government legislation

•The ineffectiveness of some IGR structures

•Lack of marketing of District

•No clear competitive advanatage

•Limited buy in mobilisation from private sector

Opportunities

•Trading relations with neigbouring countries

•University

•Presence of alternative energy

•Introduction of new technology through renewable energy initiatives.

•Sol Plaatje 30 year city development plan

•Promotion of district as adventure tourist destination

•Support by smaller towns to contribute to larger town for the benefit of the District

Threats

•Service delivery protest

•Adverse AG findings

•Change of political quard

•Change in local policy regime

•Difficult relations betwee nprivate sector and public sector

•Vaalhartsdam

•Lack of capacity of officials

SWOT


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Primary activities – activities directly concerned with creating and

delivering a product.

Secondary activities – however not directly involved with production, but

could increase effectiveness or efficiency.

FIGURE 3: POTENTIAL ANALYSIS METHODOLOGY

As part of the potential analysis a value chain gap analysis has to be conducted

which could be defined as a series of activities that add value to a product. In the

business environment the value chain could be seen as a linked set of value adding

processes that convert basic input materials into products or services for the final

consumer.

The activities that take place can be categorised under two headings, namely:

Primary activities – activities directly concerned with creating and

delivering a product

Secondary activities – however not directly involved with production,

but could increase effectiveness or efficiency

Methodology

Identify strengths

Methods

to Leverage

Strengths

(Projects)

Identify

Missing

Links

Establish

Value Chain

Project

Prioritisation

Alignment

with

National &

Provincial

Initiatives


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6.4. SECTOR OPPORTUNITES

The purpose of this sub-section is to provide an assessment of the economic

activities within Tourism and the four leading economic sectors in order to

determine their potential for economic development. The leading economic sectors

were determined by using different criteria such as GGP contribution, comparative

advantage (location quotient), exports and the district’s GDS.

The following leading sectors were identified:

1. Agriculture Sector

2. Mining Sector

3. Manufacturing Sector

4. Services

5. Tourism Industry

The economic potential for each of the above leading economic sectors will be

analysed in the following sub-section. (It is important to note that many studies

conducted within the FBDM have addressed the topic of sector analysis within the

district. It is therefore the aim of this sub-section to consolidate the information,

update the information where applicable and to add value through interpretation

of the information.

6.4.1. AGRICULTURE SECTOR

There is no moderate to high land in terms of agricultural production potential in

the District, which means that what agricultural resources there are must be

carefully conserved. There has been an improvement, particularly in Phokwane

Municipality, to the agricultural potential due to large scale irrigation schemes.

Although the irrigation schemes, of which the

largest is the Vaal Harts scheme, represent a major

increase in the arable land resource, they also have

negative side effects particularly with regard to

long term soil fertility and water quality. The IEMP

observed indication of reduced flow in the rivers

and signs of nitrification and sedimentation.

However, the relationship between these activities

and the impact of upstream activities in the

Gauteng province and farmers along the river must also be understood because it

would appear that the rivers have poor water quality and quantity when they enter

the District.


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MAP 1: AGRICULTURAL POTENTIAL

6.4.1.1. DEVELOPMENT POTENTIAL

TABLE 9: DEVELOPMENT POTENTIAL – AGRICULTURE SECTOR

Criteria Current Reality Implications

Availability of

natural resources

Land in the Frances Baard DM has low to

moderate potential for agricultural activities.

The moderate potential areas are mainly

located within the DMA area. There is

however no area which provide high potential

for agricultural activities.

Water used for agricultural activities are

mainly sourced from the Vaal-Harts irrigation

scheme. This increases the area of arable

land resources but also provides negative

impacts on long term soil fertility and water

quality. DWAF has also have also

recommended that no further water be used

for irrigation which places a strain on the

agricultural water supply in Frances Baard

DM (IEMP).

This implies that further expansion of

the agricultural sector would be

vertical integration i.e. canning &

packaging, improved crops, water

management and/or the use of water

wise plants.


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Economic linkages Various linkages exist for Agriculture in the

Frances Baard DM. There are strong

backward linkages with various sectors, such

as the manufacturing sector for the production

of machinery and fertilisers, the transport

sector for the transport of inputs, as well as

the electricity and water sector for the

provision of adequate water supplies to

farmlands for irrigation and other processes.

Other backward linkages include inputs from

labourers, most of which have fairly low levels

of education and generally earn low wages.

Forward linkages which exist are raw produce

being exported to other areas. Very little value

adding processes take place within the

Frances Baard DM.

There is potential for expansion

on manufacturing of inputs

(Fertilizers, Machinery & irrigation

systems) and outputs (Specialised

agricultural products & argri-

processing)

There is also potential for expansion

on the tourism sector

(accommodation facilities,

conference facilities, cultural tours,

etc.)

Market Relevant trends in this market are the move

towards organic produce.

New agricultural ventures should

take cognisance of the trends in the

market and feasibility studies need

to be conducted to determine the

viability of these new ventures.

Gap Analysis The agricultural sector is mainly based on

primary activities and very little processing is

done in the area; this provides an opportunity

processing activities in the Frances Baard

DM.

Increase the focus on processing

and in particular of new products.

Logistics / Nodal

point function

The agricultural activities are dispersed

throughout the District, but main nodes are

identified in

There is potential to further develop

these agricultural nodes.

Availability of

labour

A larger portion of the population in the

Frances Baard DM is unemployed and has a

low level of skills.

This implies that there is a lack of

specialised labour in the area.

Technology Effectively there is no real potential for

agricultural activities in the Frances Baard

DM, which means that the expansion of

activities would include implementing new

technology such as water wise plants and

better water management.

It is important for the FBDM to

ensure that these new technologies

are implemented in their farming

activities, in order to ensure market

competitiveness, but also the


71 | P a g e ©


sustainable use of the available

resources.

Enabling

Environment

Some of the constraints i.t.o enabling

environment which have been identified are

as follows:

Lack of financial services and support for the

intensive and subsistence farmers

Lack of supporting services for farmers in the

area

Lack of efficient representation of farmers’

interests

Under-utilisation of the services of extension

officers

Land reform tends to disrupt

commercial activities. The FBDM

need to tap into the programmes

initiated by the DoA, to ensure that

the existing farmers and emerging

farmers receive the necessary

support.

6.4.1.2. OPPORTUNITIES

TABLE 10: OPPORTUNITIES – AGRICULTURE SECTOR

Goat Farming The South African goat cheese industry is undeveloped as compared to France,

United States, Europe, Australia and New Zealand. The goat cheese industry is a

niche market as goat cheese is an acquired taste. The goat cheese industry is a very

small market and is a relatively new concept as compared to other countries.

Cheese sales in South Africa are growing with 3% per annum against a world figure

of 1.8% this is encouraging and should stimulate manufacturers to promote the

variety, quality and availability of their cheeses.

Demand for existing and new cheeses will continue to grow for the foreseeable future,

a fact which paints a positive future for cheese in South Africa. How local cheese

makers will rise to the challenge automatically becomes an objective for them. A

significant part of the anticipated R13 billion additional spending by South African

consumers, during the build-up to the 2010 World Cup and the foreign currency

spending of 3 million visitors, will be spent on food. South African cheese makers

should make sure that they offer the correct cheeses for this opportunity, in order to

grab a slice of this spend. Various other products could also be produced from the

goats milk such as:

Goat milk

Cheese

Yogurts

Body products (creams)


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Soaps

Game breading The Frances Baard DM shows significant potential for game farming. This could

potentially have various spin-off effects such as breeding game for the purposes of

selling to other game farms or for meat processing.

A study done at the wildlife centre at the University of Pretoria showed that an average

sized game farm could generate 54% of its gross income from hunting, 21% from

live animal sales, 18% from trophy hunters, 5% from eco-tourism and 2% from meat

production.

Vegetable & Fruit

Processing

The Frances Baard DM contributes largely to the production of the Northern Cape’s

fruit and vegetables. But as mentioned in the case of potatoes there are very little

value adding processes taking place in the area. This results in the opportunity for

the development of fruit and vegetable processing within the Frances Baard DM, such

as:

Potatoes (Chips)

Carrots (Carrot Juice)

Olives (Olive Oil, soap)

Grapes (mainly wine grapes, raisins)

Tomato (Tomato paste, dried tomatoes)

Citrus, Sub Tropical and Deciduous Fruits

Mushrooms

Sweet Potatoes

Field Crop The FBDM contributes to the majority of the Field Crops produced in the Northern

Cape. However very little is being done to add value to these field crops. Thus there

is a further opportunity for the processing of these field crops, such as:

Maize

Wheat

Sunflower seeds

Dry beans

Lucerne

Ground nuts

There is an opportunity to expand the field crop production of FBDM with the

production of pecan nuts.

Meat processing FBDM contributes greatly to the livestock of the Northern Cape, but as stated there

is very little being done with regards to value adding to the livestock. The industry is

thus concentrated in the primary sector. There is however opportunity for meat

processing with in the area, such as:

Beef Cattle

Pigs

Chicken

Ostriches


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Possible new

products

As stated FBDM Agricultural sector is mainly reliant on the Vaal-Harts irrigation

system and that DWAF are suggesting that no water should further be used for

irrigation systems which place a strain on the agricultural sector of FBDM. The

possibility of moving towards water wise plants provides an opportunity for further

diversification of the Agricultural sector, and would result in the Agricultural sector not

being over dependant on the irrigation system within the FBDM. Possible new farming

crops which need to be researched by the FBDM are:

Cassava (tropical root crop) various uses include:

o Basis for food, flour, animal feed, alcohol & starches for sizing paper and textiles,

sweeteners, prepared foods and bio-degradable products.

Cowpeas (protein rich bean crop) various uses include:

o The leaves and growth points can be picked and used as a vegetable dish.

o The leaves can be dried and used as a meat substitute. About 1 kg cowpeas are a

full meal.

o The green seeds are sometimes roasted like peanuts and these are then used as a

substitute for coffee.

o Ground dried seeds mixed with onions and spices can be fried in oil. The seeds can

also be cooked.

o It can be used as green manure.

o It can be planted for hay production.

o Silage can be made by mixing the green leaves with sorghum or maize.

o Cowpeas can be planted for hay production and the hay can be sold.

The viability of these new products needs to be researched by the FBDM by means

of feasibility studies. The production of these new products could also be

implemented as community based projects.

6.4.2. MINING

The FBDM is one of the centres of mining activity in the Northern Cape, hosting

some of the largest diamond and limestone operations in the Northern Cape

Province. Currently there are 22 mining rights issued within the district. As mining

interest grows this number is expected to increase. What is also evident from the

FBDM is that almost 80 mining supply, assembly

and repair companies have located themselves in

the District to participate and contribute to the

local mining sector.

Mining companies present opportunities for

further development through the Social and

Labour Plans (SLPs), which has to receive input

from the Local and District Municipalities and

ultimate approval from the Department of


74 | P a g e ©

Mineral Resources. Each Mining Right has to be associated with an approved SLP

and mines have to make significant financial commitments to these.

Small Scale Mining (SSM) is also a widespread practice within the FBDM. Small

scale mining serves as a means for many families to diversify their income

streams, to lift them from the poverty levels which surround them and most

important, it creates economic activity close to where rural communities are based.

SSM is perceived as a difficulty to manage and administer but developed correctly

it can serves as a catalyst for change in small areas across the District. At the

summit small scale miners raised their practical issues which they cannot

overcome.

MAP 2: MINING POTENTIAL


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TABLE 11: DEVELOPMENT POTENTIAL – MINING SECTOR


Availability of extractable reserves The Northern Cape has mineral

wealth which has provided the

Northern Cape with national and

international importance w.r.t

minerals.

The Northern Cape produced 37%

of the countries diamonds. De

Beers has been the world’s largest

producer of uncut diamonds. The

De Beers base is in Kimberley

which is located in the heart of

South Africa’s diamond fields.

Develop a strategy to retain the

focus on Frances Baard as a

diamond capital of the world.

Market trends Despite the current economic

crisis there is still a positive

demand for diamonds in the world,

which is a positive impact for the

diamond mines of Frances Baard

DM.

Develop an elaborate support

strategy for Small Scall Miners

Availability of labour The Frances Baard DM has

declining population and the

majority of the population have

very low skills therefore there is a

small availability of skilled

labourers in the area.

Develop and implement an

elaborate skills development

strategy in partnership with the

Univesity of Sol Plaatje

Technology changes Overall extraction costs are a

combination of variables such as

grade of diamonds, mining depth,

geology, labour efficiency and

technology. More efficient

technology and improved labour

productivity can therefore

increase the profitability of the

mines.

Introduce a combination of labour

intensive methods and

technologically advanced

production methods


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Economic linkages The Diamonds extracted within

the FBDM are exported to other

regions (national and

international) for further

processing and beneficiation.

Value adding processes could be

implemented locally which would

increase job opportunities.

Mining inputs, such as machinery,

piping, tubing, chemicals, mining

timber, iron and steel products,

explosives, electrical machinery,

cables and wiring, foodstuffs, etc.

are sourced mainly from outside

FBDM, resulting in a massive

income leakage out of the area.

The mines potentially represent a

substantial local market for these

manufactured products and by

strengthening the local backward

linkages, the manufacturing sector

can be stimulated.

Develop a District Beneficiation

Strategy


TABLE 12: OPPORTUNITIES – MINING SECTOR

Mining Beneficiation The Northern Cape and Frances Baard District Municipality is well endowed

with mineral resources but certain problems and constraints do exists such as

the decline in the diamond sector.

Mining is concentrated on stones and minerals with very little beneficiation

taking place within the province. This limits the amount of value added to the

mining products and therefore reduces the benefit that accurse to the

provincial economy.

There is an importance for mineral beneficiation and processing in Frances

Baard District. For this industrial development to take place it is important not

to forget the availability of important mineral deposits in the area. Currently

these minerals are only mined and then transported to other areas where they

are processed and beneficiated overseas. By developing processing and


77 | P a g e ©

beneficiation plants in the District, numerous jobs could be created and value

adding can take place locally, benefitting the local communities and local

economy. This could also attract further investors to the area. Sectors such as

construction, transport & tourism could be benefitted by such as initiative.

Cluster opportunities which could be linked to this are:

Cutting & Polishing Industry

Jewellery Industry

Tools (drill-points, cutting blades)

Precision instruments

This initiative could also be linked to the Provincial Diamond Hub project.

Formalising of Pebble

Mining

There are many small-scale miners informally involved in pebble mining along

the river banks within the FBDM. This could be formalised through the

establishment of cooperatives and joint assistance from the FBDM in order to

reach better markets and improve the viability of the pebble mining industry

for those individuals involved.

6.4.3. MANUFACTURING

Manufacturing has a range of potential service under which it can be segregated.

For purposes of this LED Strategy it is important to segregate it into the following

sub-categories and they are viz:

a. Food and Beverages

b. Clothing and Textiles

c. Motor Rail Technology and

d. Solar and related technology

6.4.3.1. THE FOOD AND BEVERAGES SECTOR

The demand for food and beverage products has been on the increase over the

last five years. There is an established cluster in Ritchie and Jan Kempdorp, with

a possibility of a Milling Plant in Warrenton, there is however great potential in the

other secondary sectors supporting the food and beverage sector.

The sector is highly regulated and the prices are regulated by statutory and

industry bodies. Sector penetration is however difficult due to fore contracts. At

the same time there is potential for BBBEE. With regards to international

competitiveness, the sector is highly subsidized internationally and as such makes

it difficult for competition.

6.4.3.2. CLOTHING AND TEXTILE

The sector has taken a serious dip over the recent past in Kimberley. The major

clothing factories have been closed down or scaled down. The basic infrastructure


78 | P a g e ©

still remains in place. There are a number of fairly qualified and skilled labourers

for this sector. There are no take up agreements but the market is clearly defined.

The profit margins are still low and the sector is highly competitive. The demand

for the products are increasing and are innovated regularly thus making it a very

dynamic manufacturing environment.

6.4.3.3. MOTOR AND RAIL TECHNOLOGY

There is an expansion of infrastructure by Transnet and PRASA, where these

entities are rolling out train stock both for freight and passenger rail purposes for

the next 20 years. There is a real possibility for partnership with regards, to

downstream production activity related to these items.

6.4.3.4. SOLAR AND RELATED TECHNOLOGY

There is an increase in the demand for energy efficiency products and services.

The District and in particular, Kimberley is centrally located for transport purposes.

Whilst there is increasing demand for these services, the sector is highly innovated

and technical and as such will require a measure of skills and such implies

minimum opportunities for job creation but it has high return possibilities.

MAP 3: MANUFACTURING SECTOR


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TABLE 13: DEVELOPMENT POTENTIAL – MANUFACTURING SECTOR

Criteria Implication Implications

Economic linkages The manufacturing sector is mainly linked

to primary sectors such as agriculture and

mining. The main manufacturing taking

place is the production of machinery

needed by the primary sectors or adding

value to the produce of these primary

sectors.

Market trends International manufacturing trends

towards natural and organic products

have not been exploited in the Frances

Baard DM.

Manufacturing initiatives should

focus on commodities that will be

demanded by emerging markets

and on “green” products, such as

recycled goods and energy efficient

goods.

Gap Analysis Very little value adding of raw produce is

taking place in the Frances Baard DM,

and the opportunity to establish value

adding processes should be realised.

Availability of labour The majority of the population in the

Frances Baard DM are unskilled, which

implies a lack of skilled employees to

implement specialised value adding

processes.

The employment opportunities

provided in the manufacturing

sector require specific skills, which

require further training.

The seasonal workers and/or

unemployed population could be

easily absorbed into these

Technology changes It is important for the Frances Baard DM

to implement new technologies to gain a

comparative advantage in the value

adding processes.

Enabling Environment The manufacturing sector is classified as

an important growth potential sector, not

only by the FBDM but also by the DTI

which provides various incentives for

such projects.

Feasibility studies need to be

conducted to determine the viability

of the new opportunities identified.


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TABLE 14: OPPORTUNITIES – MANUFACTURING SECTOR

Tannery Plant This initiative could connect livestock (goat, sheep, game) production with

downstream industries such as meat processing, craft making & retail activities.

The animals are slaughtered at the local abattoir, where the meat can then be

processed to other products such as sausages, salami, patties, dry wors, etc.

This could be sold at an onsite shop which also provides a restaurant where

people could different dishes.

The tannery plant which could also be located on site could use the skins to

produce various products such as leather shoes, belts, cushions, etc. and then

sold in a curio shop.

The project could also provide extensive training to the community in order for the

local community to be active in all stages of the project, but less intensive training

workshops for tourists could also be included.

Chips Factory The Frances Baard DM exhibits potential for the establishment of a chips factory

since potatoes are a very valuable vegetable crop in South Africa (value and

volume).

The Frances Baard DM (67%) produces the largest amount of potatoes in the

Northern Cape and the best potato farmer in South Africa lives in Frances Baard

DM. However there is very little value adding taking place in the Northern Cape

which leads to the establishment of the chips factory (Simba, Willards, etc.)

Vegetable & Fruit

Processing

The Frances Baard DM contributes largely to the production of the Northern

Cape’s fruit and vegetables. But as mentioned in the case of potatoes there are

very little value adding processes taking place in the area. This results in the

opportunity for the development of fruit and vegetable processing within the

Frances Baard DM, such as:

Carrots (Carrot Juice)

Olives (Olive Oil, soap)

Grapes (mainly wine grapes, raisins)

Tomato (Tomato paste, dried tomatoes)

Citrus, Sub Tropical and Deciduous Fruits

Mushrooms

Sweet Potatoes

Field Crop Processing The FBDM contributes to the majority of the Field Crops produced in the Northern

Cape. However very little is being done to add value to these field crops. Thus

there is a further opportunity for the processing of these field crops, such as:

Maize

Wheat


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Sunflower seeds

Dry beans

Lucerne

Ground nuts

Meat Processing FBDM contributes greatly to the livestock of the Northern Cape,but as stated

there is very little being done with regards to value adding to the livestock. The

industry is thus concentrated in the primary sector. There is however opportunity

for meat processing with in the area, such as:

Beef Cattle

Pigs

Chicken

Ostriches

Packaging & Distribution of

Products

Expanding on the agro processing opportunity in the Northern

Cape provides the opportunity for the development of packaging plants. The

Kimberley farmers alone use 12 million cartons and 10 million fibre bags annually.

This results in the opportunity to produce environmentally friendly packaging

locally.

Starch based biodegradable plastics could be used to produce shopping bags,

bread bags, bait bags, over wrap, ‘flushable’ sanitary product backing material,

and mulch film.

Expansion of the

Manufacturing Sector

Mining Sector

Cutting & Polishing Industry

Jewellery Industry

Tools (drill-points, cutting blades)

Precision instruments

Agricultural Sector

Manufacturing of Irrigation equipment

Construction Sector

Manufacturing of construction and building equipment

Limestone mined in the area could provide an opportunity for brick making

Solar and related technology The developments in the alternative energy space present a number of

opportunities and these include the manufacturing of the following items:

Solar Panels

Building Inputs-such as fencing, concrete etc.

Transformers for the power stations

Rail and Motor Technology The Transnet and PRASA initiatives present opportunities for some or all of the

components of the coaches to be manufactured in the district.


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6.4.4. SERVICE SECTOR

The finance and business services sector includes inter alia financial

intermediation; insurance and pension funding; real estate activities; renting or

transport equipment; computer and related activities; research and development;

legal; accounting; bookkeeping and auditing activities; architectural, engineering

and other technical activities; and business activities not classified elsewhere.

The community and personal services sector includes public administration and

defence activities, activities of government, government departments and

agencies; education, public and private; health and social work; sewage and

refuge disposal, sanitation and similar activities; activities of membership

organisations; recreational, cultural and sporting activities. There have been

fluctuations in the growth performance of the finance and business services sector

for this period. For the same period the community services has a more stable

growth performance.

The finance and insurance sub-sector has the greatest contribution towards the

overall growth performance of the finance and business services sector. The

major/primary business and service node in the Frances Baard DM is Kimberley

and the various secondary nodes are Barkly West, Warrenton, Jan Kempsdorp,

Hartswater and Pampierstad.

The government services sub-sector has the greatest contribution towards the

overall growth of the community services sector. The service sector as a whole has

had the largest contribution toward employment opportunities in the Frances

Baard DM for the last 11 years since 2001.


TABLE 15: DEVELOPMENT POTENTIAL – SERVICE SECTOR

Criteria Implication Implications

Market trends Various services such as electricity,

water, refuse removal, sanitation,

education, health and social work,

infrastructure and recreational facilities

are provided in the Frances Baard DM;

however these services are mainly

focused in the primary and secondary

nodes.

There is a need to focus on research

and development within the economy

with specific focus on agriculture,

manufacturing and tourism.

Availability of labour The population of the Frances Baard DM

is unskilled which leads to a lack of skilled

workers in the sector. The skills supplied

by the population in the Frances Baard

Education facilities and research and

development go hand-in-hand. It is

important to ensure that education

facilities and are conducting relevant


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DM are not always the skills required by

the businesses in the area.

research as well providing the relevant

training courses in order capacitate the

local labour force in order to enter

emerging markets such as the ICT

industry.

Technology change The use of internet has become an

important resource for businesses and

the lack of research and information in the

ICT and telecommunication of the

Frances Baard DM poses a constraint on

business development in the area.

Enabling Environment There is a lack of cooperation between

business support organisations in the

Frances Baard DM which leads to

inadequate support for small businesses

to develop in the area.


TABLE 16: OPPORTUNITIES – SERVICE SECTOR

Central Freezing Facility & Cold

storage transport

The fruit and vegetable products that are produced in the area need to be

stored in freezing facilities before transported in cold storage transport units

to the airport or other surrounding areas.

This presents an opportunity for an SMME business to establish such a

business in the area.

Business Process Outsourcing

and Off-Shoring hub.

The Sol Plaatje LM is currently in the process of establishing a call centre

(BPO&O) in the area. The FBDM requested funding sources for this project

because the District could not fund the whole of the project. The DTI has a

BPO&O investment incentive initiative which could be linked to this project.

This also opens the opportunity for FBDM to market the area as a BPO&O

location which provides call centres, data processing and other services. It

is important that the FBDM take note that establishing the area as a BPO&O

destination would require infrastructure upgrades and skills development

within the local communities.

SMME Database and Support

Programme

The FBDM is currently in the process of appointing a service provider to

conduct research in the state of SMME in the FBDM.


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This would include a database of SMME’s, creating a support structure for

SMME’s, and creating a partnership and alliance program.

Form business support network In FBDM there is only one Small Business Support Centre which is in

Kimberley. They offer non-financial support to SMME’s. There are also other

support institutions in FBDM, such as DTI, SEDA, Khula Finance, IDC,

NAFCOC, NOCCI, Ntsika, NCMAC, NCEDA, SMME Development Trust,

Cedar Investments, Umsobomvu, etc.

A major constraint though is the lack of co-operation between the SBSC,

municipalities and the various business support organisations, because of

insufficient communication & information of new opportunities in the area.

In order for the SMME’s to grow the business support organisations should

be linked in order to provide the best support advice to the emerging

entrepreneurs.

Skills training facilities This would require an audit of the available skills within the FBDM and the

skills that would be required by the new opportunities identified within the

FBDM. The FBDM then need to establish skills training facilities to create

the needed skills within the area.

These skills will be linked to various opportunities such as agro processing,

mining beneficiation and the linked opportunities, and manufacturing

opportunities.

Industrial Development

Strategy

The opportunities identified within this potential analysis of the FBDM

provide various opportunities for industrial development within the FBDM. It

would however be important for the FBDM to implement an Industrial

Development Strategy in order to coordinate this development to benefit the

FBDM region as a whole.

6.4.5. TOURISM

Tourism is not an economic sector on its own (as classified by the SIC), but forms

part of other sectors especially the trade, transport and finance sectors. However,

due to its increasing importance as an income and employment creator in South

Africa, it is believed that this industry should be

discussed separately from the other sectors.

Tourism development in the District has faced

various challenges during the past decades,

including a lack of tourism financial and human

resources, limited private sector partnerships,

inadequate involvement of local communities

and lack of tourism infrastructure in certain

areas.


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As a result the District has not featured prominently on the national and

international travel map and is the least visited of South Africa’s provinces. In

certain overseas markets such Germany, France

and the Benelux the province has an above-

average market share while it has fared poorly

in other markets such as the Far East, Africa

(excluding Namibia where it has a large market

share) and the Americas. The Northern Cape in

general also has a very limited (less than 2%)

share of the domestic market.

There are a number of challenges relating to

Tourism growth in the District and some of these factors include the limited and

expensive air and railway access to and within the province (particularly air access

is very limited), the lack of a winning brand and promotions strategy, inadequate

funding and resources for tourism development and promotion, institutional

fragmentation, limited co-operation and partnerships between the private and

public sectors, a seasonal demand pattern, imbalances in urban and rural tourism

development, limited involvement of previously disadvantaged communities,

tourism security concerns, lack of product and service quality and infrastructure

constraints (particularly in traditionally neglected areas).

Mining has always defined the history in this part of South Africa and, when

diamonds were discovered in Kimberley, unprecedented growth took place in the

province. The district accommodates the largest proportion of the population of

the province, giving it the largest population density (26, 2 persons per square

km) in the province.

As a destination this region is the most visited regional destination in the Northern

Cape. The destination is known for its key attractions such as the Kimberley Big

Hole, Wildebeest Kuil Rock Art Centre, Galeshewe Activity Route, Kimberley Ghost

Trail, McGregor Museum, Hartswater irrigation system and wine cellar, Anglo-Boer

War battlefields and many more.


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MAP 4: TOURISM


TABLE 17: DEVELOPMENT POTENTIAL – TOURISM


Availability of resources The Frances Baard DM provides a variety

of tourist attractions which range from

natural beauty attractions such as the

river systems and the wide open

savannah to manmade attraction such as

the Big Hole, historic museums, Vaal

Harts irrigation system and historic land

sites.

Market Trends Tourism development is mainly based in

Kimberley (Sol Plaatje LM) due to the rich

history and diamond mining in the area.

There is only one tourism office in the

Frances Baard DM, situated in the Sol

Plaatje LM, which results in the lack of

marketing of the other LM’s as tourist

destinations. The tourism activities in the


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Frances Baard DM are mainly based on

the mining history of the area as well as

the historic importance of the area in the

Anglo War.

Technology change Tourism has a large potential for

development in the Frances Baard DM,

but is dependent on the natural and

manmade resources in the area.

Therefore the Frances Baard DM should

implement initiatives to protect the natural

environment from aspects such as climate

change.


TABLE 18: OPPORTUNITIES - TOURISM

Mining tourism The mining sector in FBDM is declining which leads to a high number of

retrenchments from mines and farms. This leads to the high demand for job

opportunities in the FBDM area. The people active in the mining industry need

to secure jobs, and with their knowledge of the mines they could be trained as

tour guides for the various mines. These tours could also consist of

educational tours for schools and students.

Game viewing/trophy hunting The Frances Baard DM shows significant potential for game farming. This

could potentially have various spin-off effects such as trophy hunting or game

viewing.

A study done at the wildlife centre at the University of Pretoria showed that an

average sized game farm could generate 54% of its gross income from

hunting, 21% from live animal sales, 18% from trophy hunters, 5% from eco-

tourism and 2% from meat production.

This initiative also needs to be linked to activities for woman such as spa

facilities.

Eco tourism Bird Watching

Fly Fishing

Hiking Trails

Water Sports (Vaal & Harts Rivers)

o Heritage Resources & Historic Sites

Adventure Tourism Mountain biking

Extreme sports


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Expansion of the Hospitality

Industry

Need to provide wider variety of accommodation facilities such as hotel,

lodges and guesthouses. There also needs to be an expansion within the

restaurant industry, since currently there are only franchise restaurants and

no unique restaurant to the FBDM.

Tourism Marketing Strategy A coordinated and integrated tourism marketing strategy is required for the

FBDM. It is important that the FBDM and local municipalities work together to

implement a coordinated effort in marketing the area as a tourism destination.

6.5. CONCLUSION

This section provided an analysis of economic potential within the Frances Baard

DM, and the identification of development opportunities and constraints within the

different economic sectors. The development opportunities (projects) which were

identified will then be prioritised in the following section to assist in the assessment

of these projects.

The main challenge for local economic development in the Frances Baard DM is to

diversify the economic base and add value to the primary products that are

produced in the area. To ensure the accountability and responsibility for

implementing the projects identified in this section a monitoring and evaluation

framework needs to be incorporated into the Frances Baard DM performance

management system.


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7. PROJECT IDENTIFICATION

7.1. PROJECT PRIORITISATION CRITERIA

To determine which of the identified projects will have the highest impact on the

economy in terms of job creation, capacity building and social development, it is

important to prioritise these projects according to a specific set of criteria, which

will facilitate the selection process of strategic anchor projects.

The project prioritisation criteria developed for the Frances Baard economy is

discussed in the following paragraphs. This implies that each potential LED

programme/opportunity must be weighed against each indicator towards

determining which initiatives will result in the most beneficial impacts, while taking

limited resource availability into cognisance.

1. Employment creation: This is the most fundamental indicator against which

all LED initiatives must be weighed, since it aligns with the main objective of

LED in Frances Baard. This indicator will give weight to initiatives that use

labour intensive production methods and create secondary opportunities in

the local economy for investment.

2. Strategic Importance: The strategic importance of an LED initiative mainly

relates to the expansion of local value-chains in the economy and the

reduction of such gaps. By initiating strategic initiatives in this way causes the

formation of economic clusters and networks that facilitates production cost

advantages and higher levels of capital retention in the local economy.

3. SMME Development and Entrepreneurial Assistance: This indicator is

vitally important within the context of the Frances Baard LED. The

unavailability of institutionalised assistance to small businesses and

entrepreneurs has been identified as a key constraint to local investment. This

indicator would thus ensure that initiatives that support entrepreneurs and

SMMEs gain a higher priority ranking.

4. BEE and Capacity Building: This indicator will give preference to initiatives

that support BEE and capacity building among the local labour force. This

implies that initiatives that provide skills development and -training

opportunities for local people will receive more weight in the ranking process.

5. Anchor Projects: Anchor projects can be defined as large initiatives that

create spin-off opportunities for entrepreneurs (and SMMEs) in the local

economy. Such projects must be recognised for their potential to stimulate


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the economy in an indirect way, beyond the initial investment to establish the

anchor project.

7.2. LED PILLARS AND PROGRAMMES

This Section outlines the Strategic Pillars, Programmes and Projects.

These Strategic Pillars are based on the situation experienced within the economy

of Frances Baard and aim to utilise existing strengths and opportunities by

transforming these into workable programmes and actions that will assist in

reducing threats and alleviate the weaknesses in the local economic environment.

The Strategic Pillars are supported via the development of programmes that aim

to enable the specific sectors. Distinct actions are formulated in order to reach the

targets of each programme.

TABLE 19: PILLARS AND PROGRAMMES

Pillar Programme Project

Introduce more products to the

formal market

Goat Farming Goat Milk Project,

Goat Cheese

Yoghurts

Body Creams

Soaps

Medical Projects

Focus on maximizing value addition

to the current farming activity

Vegetable, Fruit and Field

Crop processing

Potato chips

Carrots

Olives

Grapes

Tomatoes

Citrus

Mushrooms

Sweet Potatoes

Wheat

Sunflower seeds

Dry Beans and Lucerne

Focus on value adding products with

regards to livestock

Engage in meat processing Beef

Pork

Chicken

Ostrich and

Game


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Conduct research on the possibility

of the introduction of other products

onto the market

Research the value and the

sustainability of new

products

Cassava

Cowpeas

Create a more sustained effort

towards mining beneficiation in the

District

Implement mining related

projects

Create a strategy for improving the

following areas:

Cutting and polishing

Jewellery Industry

Tools and precision instruments

Develop a support strategy for

Small Scale Miners

Establish a Small Scale Miners

Fund in partnership with other

state funding agencies

Initiate the implementation of a

Mining Exposition in the District

Strengthen the focus on job creation

and innovation through the

acceleration of manufacturing

activity

Strengthen the

manufacturing Sector

Development of feasibility plans and

business plans for:

Tannery Plant

Rail Technology Plant

Solar Equipment Plant

Chips Factory

Vegetable and Fruit Processing

Plant

Field Crop Processing Plant

Meat Processing Plant

Packaging and Distribution

Products

Ensure that the service sector and

the servicing of institutions focused

on LED have the necessary support

and capacity to support the

secondary sectors of the economy

Strengthen the institutions

and the District with regards

to support services

Partner with Sol Plaatje

University to improve the

services sector

Develop a SMME Support

Programme for SMMEs

Strengthen the existing business

service networks


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7.3. PRIORITISED PROJECTS

TABLE 20: PRIORITISED PROJECTS

Projects Co

mm

ercial Crieteria: T

otal

Availab

ility of E

qu

ity Partn

ers

Market G

row

th P

oten

tial

Tech

no

ligical C

on

sideratio

ns

Develo

pm

ent C

riteria: To

tal

Job

Creatio

n P

oten

tial

Bro

ad B

ased B

EE

Lo

cal

Eco

no

mic C

riteria: To

tal

Pro

ject Size

Lo

cal Co

nten

t in C

apital

Exp

end

iture

Reg

ion

al Imp

act

VA

LU

E

PR

IOR

ITY

AGRICULTURAL SECTOR

Goat Farming 8 3 3 2 12 4 3 5 7 2 3 2 27 3

Game breeding 9 3 4 2 6 2 2 2 8 3 2 3 23 4

Vegetable and Fruit Processing 10 3 3 4 8 2 3 3 12 4 4 4 30 2

Field Crop 9 3 3 3 11 4 3 4 10 3 3 4 30 2

Meat Processing 11 4 3 4 10 3 3 4 11 3 4 4 32 1

Casava 9 3 3 3 11 3 4 4 10 3 3 4 30 2

Cowpeas 11 3 4 4 10 3 3 4 11 3 4 4 32 1

MINING SECTOR

Mineral Beneficiation (Cutting and Polishing, Tools, Instruments)

11 3 4 4 11 3 4 4 10 4 2 4 32 3

Formalisation of Pebble Mining 11 4 5 2 14 5 5 4 14 4 3 3 39 1

Supporting Small Scale Miners 11 4 4 3 11 3 4 4 11 4 3 4 33 2

Creation of a Small Scale Mining fund

10 2 4 4 11 3 4 4 11 4 3 5 32 3

Creation of a Mining Exposition in the District

10 4 4 2 11 3 4 4 11 4 3 4 32 3

MANUFACTURING SECTOR

Tannery Plant 8 2 3 3 9 3 3 3 11 3 4 4 28 5

Chips Factory 10 3 3 4 11 3 4 4 10 3 3 4 31 4

Oil (vegetable) Processing Plant 11 3 4 4 11 3 4 4 10 3 3 4 32 3

Field Crop Processing 11 3 4 4 11 3 4 4 10 3 3 4 32 3

Meat Processing 12 4 4 4 10 3 3 4 11 4 3 4 33 2

Solar Equipment Manufacturing 12 4 4 4 9 3 4 2 11 4 3 4 32 3

Rail Technology Manufacturing Plant

12 3 5 4 12 4 4 4 14 5 4 5 38 1

SERVICES SECTOR

Creating a service offering through the Sol Plaatje University

12 5 4 3 13 4 4 5 12 5 3 4 37 2

SMME Support Programme 13 5 5 3 14 4 5 5 14 4 5 5 41 1


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Strengthening of the Business Support Network

13 5 5 3 14 4 5 5 14 4 5 5 41 1

Institutionalise Incubation Hubs Across the District

13 5 5 3 14 4 5 5 14 4 5 5 41 1

TOURISM SECTOR

Mining tourism 12 4 4 4 12 4 4 4 12 4 4 4 36 1

Game Viewing and Trophy Hunting

11 5 3 3 11 4 3 4 10 3 4 3 32 3

Eco-Tourism 10 3 3 4 11 4 3 4 10 3 4 3 31 4

Adventure Tourism 12 4 4 4 11 4 3 4 11 3 4 4 34 2


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8. IMPLEMENTATION GUIDELINES

This Section provides some framework for the implementation of the Frances

Baard District Municipality’s LED Strategy. The actual implementation of the

specified Pillars and development programmes is vitally important and should be

regarded as of the utmost importance.

While individual wealth and employment creation projects have been formulated

for Frances Baard, the deployment of the LED strategy (i.e. the various Pillars and

their respective development programmes), is central to the successful placement

of the Municipality on a higher economic growth path. This Section builds on the

Potential Analysis and the LED Development Framework, and serves as a basis for

implementation.

8.1. ROLES AND RESPONSIBILITIES OF THE VARIOUS STAKEHOLDERS

There are various players involved in LED and in any situation where they need to

be depolyed, a well thought through process needs to be engaged and as such

ensure that their involvement results in the attainment of the general LED Vision.

In this regard, there are a number of inter and intra sphere players whose roles

and responsibilities needs to be mapped properly in order to direct the process

fairly. In this regard, the roles and responsiblities of the various stakeholders are

detailed as follows:

TABLE 21: ROLES AND RESPONSIBILITIES

Institution Roles And Responsibilities

National Government Sets and regulates National LED Policy and Regulations

Monitors LED related projects

Conducts LED related reasearch in order to inform policy

Creates learning forums for mutual LED learning exchange

Provincial Government Sets and regulates Provincial LED Policy

Monitors LED related projects

Conducts LED related reasearch in order to inform policy

Provides support to District and Local Municipalities on LED

Supports the implementation of LED Projects


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Convenes and manages LED Forum for LED Lessons and Planning

Develops Provincial LED Strategy and framework for LED Strategies for

municipalities

Implement National LED Policy

District Municipality Develops LED Strategy for alignment with local municipal LED Strategies

Champions the implementation of LED Projects within the local

municipalities

Supports the process of implementation of LED Projects within local

municipalities

Provides Institutional LED Support to local municipalities

Attracts investment within the district and as such empowers local

municipalities in terms of projects

Local Municipalities Develops LED Strategy for alignment with District LED Strategy

Champions the implementation of LED Projects within the local

municipality

Supports the process of implementation of LED Projects within local

municipality

Monitors the progress and growth of the economy in the local space

Shall convene a multi-stakeholder LED Forum for mutual planning and

learning

Private Sector Shall with the support of the municipality initiate projects from the LED

Strategy

Shall engage with the various stakeholders in the realisation of the various

projects

Shall report on the projects to the LED Forum

Civil Society Shall with the support of the municipality initiate projects from the LED

Strategy

Shall engage with the various stakeholders in the realisation of the various

projects

Shall report on the projects to the LED Forum

Communities Shall provide the labour to the projects

Shall be the broad based component of the ownership of the project


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8.2. STRATEGY IMPLEMENTATION GUIDELINES

To facilitate successful strategy implementation, it is necessary to outline an

implementation framework tailored to the Frances Baard LED Institutional

Framework. This implementation framework is based on the development Pillars

and programmes identified above. The implementation framework reflects the key

strategic points of implementation specifically with regards to the various sectors.

Therefore it is important to understand the institution when developing the

implementation guidelines. In this regard, Frances Baard is structured in 2 ways

in order to implement LED and these are viz:

1. As implementing agent of programmes and projects

2. As a support agent to implementing agents and as such an implementing

agent of programmes only.

8.2.1. IMPLEMENTING AGENT OF PROGRAMMES AND PROJECTS

From the model above, the implementation approach will be as follows:

Frances Baard will be the owner and champion of the project,

Frances Baard will in this case interact with the local municipalities, private

sector and civil society in order to address issues related to ownership of the

project, feasibility studies related to the projects and other implementation

related matters,

Once all of these matters are executed, the implementing agent and or the

project owner, will then report to the Frances Baard District Municipality

through the District LED Forum.

Institutional structure to implement this model:

Frances Baard

District

Municipality

Local Municipalities

Private Sector

Civil Society

District

LED

Forum


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8.2.2. SUPPORT AGENT TO IMPLEMENTING AGENTS

From the model above, the implementation approach will be as follows:

The Local Municipalities, Private Sector and Civil Society will be the owner and

champion of the project,

Frances Baard will be a project supporter and provide oversight support only

to the projects

The Project Champions will report to the Frances Baard District Municipality

through LED Forum.

Director: Development and Planning

Investment Promotion Manager

Investment Officer

LED Manager

Senior LED Officer

LED Officer

LED Clerk

LED Project Management Unit

LED Projects Officer


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8.3. APPLICATION GUIDELINES

The previous round of LED Strategies has proven that there has been a

proliferation of LED Strategies but minimal implementation of projects to give real

effect to economic development in the local space.

The intention therefore with this section of the Strategy is to give some broad

guidelines around how the projects should be approached and consequently

implemented. It is also important to understand that the real implementation of

these projects falls outside of the Strategy but the guide will also create a

commonly accepted approach towards projects and as such set the standard for

project implementation. In this regard, there are four critical stages that the

projects would need to go through and these are:

a. Pre-feasibility Study

b. Feasibility Study

c. Business Development Plan

d. Capital Raising

Prefeasibility

The pre-feasibility part of the project is the most common and the most resource

intensive of preliminary project preparation options. It is a forerunner to a

feasibility study. It should seek to lay a good foundation for undertaking an

investigation that normally precedes a decision to go forward with a given project

proposal.

Director: Development and Planning

LED Manager

Senior LED Officer

LED Officer

LED Clerk

LED Project Management Unit

LED Projects Officer


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Feasibility

A feasibility study is defined as an evaluation or analysis of the potential impact of

a proposed project or program. It is conducted to assist decision makers in

determining whether or not to implement a particular project or program. In short

it is an investigation, which tries to clearly establish whether a project will work

and achieve its expected results.

Business Plan

A business plan is a comprehensive planning document, which clearly describes

the business developmental objective of an existing or proposed business. The

document describes the concept, the market problem, proposed solutions,

business and revenue models, marketing strategy, technology, company profile,

as well as financial data for the consequent years.

Raising Capital

Capital Raising in South Africa is not as rigorous as it is in other countries and

markets. It more difficult for public sector as compared to private sector, this

mainly because of the rigidity of the legislative regime in the country. It is therefore

important that this process be focused on private sector and as such that all LED

Projects be anchored in a Technical Partner who is not in the public sector.


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9. STRATEGIC ALIGNMENT AND INSTITUTIONAL FRAMEWORK

9.1. MARKETING AND LED PROMOTION

Whilst the Local Economic Development Strategy is a product of the Frances Baard

District Municipality, it is a product of intergovernmental and intersphere

consultation and input. Intergovernmental communication, consultation and

coordination therefore become important for purposes of ensuring that the Frances

Baard District Municipality’s LED Strategy is a success both at development level

and implementation level.

Intergovernmental relations in South Africa are regulated by the

Intergovernmental Relations Framework Act (IGRF Act). Very specifically this piece

of legislation is intended to promote and facilitate co-operative decision-making

and make sure that policies and activities across all spheres encourage service

delivery and meet the needs of citizens in an effective way.

The IGRF Act establishes the provisions to guide the three spheres of government

in terms of implementing policy and legislation, of establishing intergovernmental

structures, managing the conduct of IGR, settling disputes and monitoring and

reporting to Parliament.

LED Communication, Consultation and Coordination

Intergovernmental communication happens through the various

intergovernmental forums. IGR Forums are meetings where town specific regional

development issues are discussed at a strategic level, including the impact of

legislation, policies and other matters of mutual interest.

Forums are consultative bodies designed to facilitate intergovernmental dialogue

and communication on matters of mutual interest, such as the implementation of

national policy and legislation, the co-ordination of development planning and the

co-ordination and alignment of provincial and local strategic and performance

plans.

Forums are in place so that the various role-players work closely together and that

the activities they plan are integrated. Forums need to have clear channels of

communication between them. Proactive communication is the key for good IGR

and efficient implementation of government programmes.

For purposes of the Frances Baard LED Strategy it is important to focus on the

District IGR Forum and the District LED Forum. At a District level the following IGR

Structures exist:


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Technical Intergovernmental Forum

This forum discusses issues of district and local interest, within and amongst

district and local government agencies. It also discusses issues raised by the

Premier’s intergovernmental Forum and broader areas of policy, legislation,

implementation, co-ordination and alignment.

This forum is chaired by the District Municipal Manager and is coordinated by the

District Municipality. This structure is particularly important and useful to the LED

process as it will be used as a platform to elevate the institutional issues and other

related aspects, such as projects in order to mobilise more support in terms of

planning, coordination and implementation.

It further feeds critical issues to the Intergovernmental Forum for further buy-in

and mobilisation.

The District Intergovernmental Forum

The District Intergovernmental Forum, is chaired by the District Mayor and is

primarily comprised of the Local Municipalities’ Mayors. It is supported by the

Technical Intergovernmental Forum and seeks to further mobilise issues from

Technical Intergovernmental Forum and as such mobilise buy-in further up on the

intergovernmental chain.

Premier’s Intergovernmental Forum

This forum discusses issues of national, provincial and local interest and in

particular from the Districts. It also discusses issues raised by the President’s

Coordinating Council and broader areas of policy, legislation, implementation, co-

ordination and alignment.

This forum is co-chaired by the Premier and the MEC for Cooperative Governance.

It is coordinated by the Office of the Premier and consists of Heads of Departments

from all Provincial Government Departments and District Municipal Managers and

Mayors and meets at least four times a year.

This structure is particularly important and useful to the LED process as it will be

used as a platform to elevate the institutional issues and other related aspects,

such as projects in order to mobilise more support in terms of planning,

coordination and implementation. This forum will also ensure that some of the

issues are elevated to Cabinet.

Intergovernmental Marketing

A multi sectoral strategy like the Frances Baard District Municipality LED Strategy

needs marketing because:

The strategy focuses on more than one sector,

The strategy requires the involvement of multiple partners

The strategy has a number of anticipated results and outcomes


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The strategy requires a multi developmental approach at the various

spheres of government

Furthermore intergovernmental marketing of the LED Strategy is necessary

because:

It will be used as a mechanism of creating a common understanding of

LED and as such common vision,

It will set the tone for the new understanding of LED within the Province,

It will mobilise for sector support, resources and skills,

It will address unrealistic expectations about LED and related programmes

and projects

It will create the opportunity for the development of collective response

mechanisms to challenges related to LED

It is also important to understand that there are different platforms and

mechanisms for intergovernmental marketing and to this extent the District can

undertake the following to ensure intergovernmental marketing:

i. Ensure that the LED Strategy is a standing item on the agenda of the

various intergovernmental fora such as the Technical IGR, IGR and

Premier’s Intergovernmental Forum.

ii. Ensure that the Frances Baard District LED Forumreports on progress and

challenges of the LED Strategy to the Technical IGR.

iii. The Frances Baard District Municipaity to embark on an initiative aimed

ensuring that the LED Forums are functional and at the same time has a

standing item on the agenda, how the local municipalities are unpacking

the district strategy within the various localities.

iv. The local municipalities to review and or develop their LED Strategies in

line with the District LED Strategy.

v. Ensure that the LED Strategy is simplified, summarised and the critical

issues are summarised in such a manner that it can be used as part of the

broader marketing of the district.

9.2. INTEGRATED PROGRAMMING OF PROJECTS AND ACTION PLAN

In developing an Implementation Plan, there are certain non-negotiable principles.

Once it has been decided what has to be achieved, plans have to be put in place

to achieve this. It is equally necessary to decide up front what the required

outcomes are and to track progress towards the achievement of these targets.

It is a well-known fact that if onefocuses one’s attention too widely, you are in

danger of not achieving anything. It is for this reason that we would like to preface

the development of strategic focus and programmes by a brief introduction on the

necessity of and links between the various non-negotiable steps in the process.


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Focus means just that – focus. In order to ensure that we achieve what we set out

to do, the number of things targeted should be finite (such as less than ten, and

maybe less than six). This does not mean twenty, fifty or more than a hundred. It

is also important to keep in mind not only what is to be achieved, but also by when

and by whom. Lastly it is also important to track what agreements are in place

about trade offs, non-negotiables, etc. In this area the Agenda for Change

negotiated up-front will play a key role in making sure that the focus and balance

in the plans as developed are just right.

5 Year Action Plan

Strategy implementation is driven by action plans. The following key issues should

be considered:

Who takes responsibility for each programme or project?

What are the targets in terms of outputs, timing and funding?

What steps need to be taken to achieve the targets?

What will be the reporting structures (including to stakeholders)?

What are the performance monitoring and evaluation systems and

processes?

What has to happen to ensure they are in place and used?

Ideally LED strategies are delivered through public/private sector partnerships that

are strongly driven or led by the municipality. The private sector is often keen to

manage initiatives aimed at improving the vitality and viability of a local area or

to be involved with business development initiatives. Community groups may seek

to lead initiatives to improve the health or housing conditions of a target group of

disadvantaged individuals.

Strategy implementation is never as clear-cut as the strategy development itself.

It often takes longer than expected and involves a consistently changing

environment. Within each project and program that is being implemented,

strategic thought will occur at every step of the way. This will often focus on how

to best advance the project in an often rapidly changing environment.

9.3. ACTION PLAN FOR THE NEXT 5 YEARS

A proposed 5 year action plan is included on the following pages.


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TABLE 22: 5 YEAR ACTION PLAN

Programme Project Project

No:

Interventions Responsibility/

Champion

Responsibility/ Support Deliverable

Goat Farming Goat Milk Project, Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Goat Cheese Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Yoghurts Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Body Creams Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Soaps Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Medical Products Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Vegetable, Fruit

and Field Crop

processing

Potato chips Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Carrots Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Olives Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Grapes Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Tomatoes Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Citrus Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Mushrooms Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Sweet Potatoes Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study


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Wheat Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Sunflower seeds Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Dry Beans and

Lucerne

Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Engage in meat

processing

Beef Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Pork Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Chicken Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Ostrich Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Game Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Research the

value and the

sustainability of

new products

Cassava Commission research Frances Baard DM Dept. Economic Development and LMs Research

document

Cowpeas Commission research Frances Baard DM Dept. Economic Development and LMs Research

document

Implement minig

related projects

Develop a District

Mining Strategy

Commission the development of

the strategy

Frances Baard DM Dept. Economic Development and LMs Mining Strategy

Establish a Small

Scale Miners Fund

in partnership with

other state funding

agencies

Develop a framework for the

FUND

Frances Baard DM Fund Guidelines


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Initiate the

implementation of

a Mining

Exposition in the

District

Commission the Mining Expo Frances Baard DM Dept. Economic Development and LMs Mining Expo

Concept

Stregthen the

manufacturing

Sector

Tannery Plant Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Rail Technology

Plant


Solar Equipment

Plant


Chips Factory Commission a feasibility study Frances Baard DM Dept. Economic Development and LMs Feasibility study

Vegetable and

Fruit Processing

Plant


Field Crop

Processing Plant


Meat Processing

Plant Packaging

and Distribution

Products


Strengthen the

institutions and

Partner with Sol

Plaatje University

Sign a partnership agreement

with the SPU

Frances Baard DM Sol Plaatje Municipality and SPU Memorundun of

partnership


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the District with

regards to support

services

to improve the

services sector

Develop and

implement a

SMME Support

Programme for

SMMEs

Support Programme Frances Baard DM

Strengthen the

existing business

service networks

Frances Baard DM


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10. MONITORING AND EVALUATION FRAMEWORK

Implementation of the LED Strategy needs to be monitored on an ongoing basis.

Progress with respect to new investment and the impact thereof on the local economy

needs to be constantly assessed and monitored over the implementation period of

the strategy. To enhance efficiency and effectiveness of the strategy, continuous

adjustments need to be made, based on market fluctuations and demand changes.

This entails continuous strategic re-positioning.

The rationale for developing and updating a monitoring and evaluation system include

the following:

1) Inform the sector departments of the development needs of the municipality.

2) Ensure that all role players are aware of all projects planned in the

municipality.

3) Make information of all projects available at one glance.

4) Compare Frances Baard District Municipality with municipalities of other size

and scale within the province and country

5) Inform all role players on the progress of project implementation.

6) Determine the contribution and effectiveness of each strategy as projects and

KPIs can be linked to specific strategies (PGDS, LED & IDP).

7) Pinpoint the area of intervention through progress and tracking reports.

8) Compare progress year on year.

Mechanisms for Monitoring and Evaluation

In order to undertake a thorough monitoring and evaluation process there a number

of things to be put place in order to ensure effectiveness and these are:

i. Using the LED Forum as a structure for Monitoring and Evaluation

As illustrated in the sections above, it is critical that the LED Forum receives reports

on LED progress across all municipalities. In this regard, the Forum, through the LED

Office can track the project progress against the reports and as such report to the

various structures within the institution.

ii. Engaging in annual review

LED is a continues process that has to be observed closely to see if it is producing

any results and if there should be any changes in the process. It is important that

the economic development strategy is reviewed on an annual basis by the

municipality to assess progress and constraints in the process. The following

guidelines can be used to review the progress of the LED strategy:


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1) Reviewing the SWOT analysis of the strategy and see if certain opportunities are

still feasible.

2) Review any new information that can influence the feasibility and outcomes of

certain opportunities.

3) If there are any changes in circumstances in the strategy there should be an

evaluation of the goals, vision and objectives of the project.

4) There should be an indebt review on weather projects are reaching their goals

and sowing any progress.

5) Steps should be in place to handle any setbacks in the strategy.

6) There should be criteria to measure performance of projects.

7) There must be a stage in the review process that can evaluate the possibility of

other potential projects that might be feasible.

8) Projects can also be changed or restructured to deliver more acceptable results.

The LED process can also experience certain setbacks that might hamper the strategy

and should be carefully handled to prevent problems of the strategy (World Bank,

2009):

a) Politics.

b) Lack of strategic thought.

c) Inadequate research, monitoring and evaluation.

d) Grant chasing.


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11. CONCLUSION

A critically important aspect for the successful implementation of the LED Strategy is

the need to ensure that all stakeholders and parties involved in the LED process take

ownership of the programmes and projects identified.

Based on the formulation of the strategy with the numerous potential products and

projects, the following is recommended to achieve optimal sustainable local economic

development, employment creation, and improvement in living conditions and

standards, as well as human resource development:

Start focusing on the sectors with the highest development potential, followed

by the sectors with less potential. Ensure balanced stimulation of growth and

development within all sectors by not focusing solely on one sector

Before embarking on the implementation of specific projects, ensure that

adequate funding sources and management capacity are in place

Start implementing projects with the highest potential for stimulating

economic growth and development

Make sure that the projects that stimulate economic growth do not adversely

affect the environment or human living conditions

Set reasonable time frames for implementation and ensure effective and

continuous monitoring of project progress and impacts

The role of FBDM should be focused on creating an LED unit to coordinating and

integrating all LED initiatives within the district, as well as facilitating stakeholder

participation and the formation of public-private partnerships.

The LED department and LED forum need to clarify the segregation of duties. This

will prevent duplication of effort and ensure that good outcomes are achieved in spite

of limited human and financial resources.

Incentives need to be created to attract the private sector to invest in the region.

The achievement of local economic development will be made easier when there is

participation from all sectors within the FBDM.

frances baard district municipality...the frances baard district municipality embarked on a process...

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