KZN SMALL TOWN REHABILITATION PROGRAMME

PRESENTATION BY MRS BARBARA MGUTSHINIACTING GENERAL MANAGER :

SPECIAL INITIATIVES

PRESENTATION OUTLINE• Background

– Provincial Spatial Economic Development Strategy

– Provincial Corridor Development Programme

– Links to the Small Town Rehabilitation Programme

• Small Town Rehab Programme

– Programme Objectives

– Small Town Budget in MTEF

– Criteria for selection of towns

– Implementation Methodology

– Type and focus of support

– Conditions Precedent

BACKGROUND• One of the Department’s mandate is to support

municipalities fulfill their developmental local government obligations.

• A range of National and Provincial policies provide clear and compelling mandates for the Provincial Government to support small and rural municipalities with the rehabilitation of small towns as local centres of economic activity and nodes of concentrated and focused delivery of services

KZN GOVT PRIORITIES

• Rural Development and Agrarian Reform

• Fighting Crime and Creating Safer Communities

• Education and Skills for ALL

• Health for all

• Creating Decent Work and Ensuring Economic Growth

• Nation Building and Good Governance

• Social and Economic Infrastructure

• Cohesive and Sustainable Communities

• International Co-operation

• Sustainable Resource Management

PROVINCIAL SPATIAL ECONOMIC DEVELOPMENT STRATEGY (PSEDS)

• KZN Govt through the Economic Cluster developed the PSEDS as a sector plan of the PGDS

• The PSEDS recognises that:

– Social & economic development is never uniformly distributed

– Apartheid created an unnatural distortion of development

– This distortion must be addressed through an interventionist approach

Classification of Economic Potential

• The economic sector has identified four key sectors as drivers of economic growth in the KZN Province. These sectors are:

• The Agricultural sector (including agri-processing)

• The Industrial sector

• The Tourism sector

• The Service sector (including government services)

The PSEDS is based on 4 pillars1. Increasing investment in the province2. Skills and capacity building3. Broadening participation in the economy4. Increasing competitiveness

The main programmes to support the strategies are 1. Foreign Direct Investment2. Investment in Infrastructure3. Sector Development4. Corridor Development

• Small town rehabilitation programme• LED Initiatives

PSEDS CONT’

DEFINITION OF CORRIDORS

• Primary Corridor (PC): A corridor with very high economic growth potential within all three sectors which serves areas of high poverty densities;

• Secondary Corridor (SC): A corridor serving areas of high poverty levels with good economic development potential within one or two sectors

DEFINITION OF CORRIDORS cont’PSEDS identified the following corridors in the province

• 3 Primary Corridors

– Ethekwini- Umhlathuze (PC 1)

– Ethekwini Msunduzi uMngeni ( PC 2)

– eThekwini –Ugu (PC 3)

• 14 Secondary Corridors

• The nodes and activity corridors don’t cover the whole province. They focus only on those nodes and corridors which could have the most impact in halving poverty and unemployment to meet the MDG targets.

• The rest of the province cannot be neglected but the major focus of fixed investment should be directed at these nodes and development corridors

PSEDS

Nodes and Corridors

The key investment nodes and

activity corridors for the cluster

over the next 5 years have been

identified.

Multi-Sectoral Activity Corridor

Tourism Activity Corridor

Agriculture Activity Corridor

Existing Corridor

Primary Purpose of Activity Corridor

PRIORITY SMALL TOWN NODES IN THE PSEDS

1 St Faiths 13 Mtubatuba

2 Harding 14 Hlabisa

3 Impendle 15 Mbazwana

4 Richmond 16 Jozini

5 Weenen 17 Manguzi

6 Winterton 18 Nkandla

7 Msinga (Tugela Ferry) 19 Melmoth

8 Nqutu 20 Maphumulo

9 Dannhauser 21 Ndwedwe

10 Utrecht 22 Mandini

11 Nongoma 23 Umzimkulu

12 Ulundi 24 Ixopo

25 Kokstad

SMALL TOWN REHABILITATION• The 25 nodes represent the identified priority small

towns in the province

• The parent municipalities in these nodes are thepoorest with limited rates base – 100% grantdependent

• The KZN government has made an MTEF allocationof R244m towards the small town rehabilitationprogrogramme.

• The programme is aimed at making the small townsmore attractive for investment as part of RuralDevelopment in line with priorities of government.

SMALL TOWN REHABILITATION

The budget allocation in the MTEF is broken down as follows:

Year 2009/10 2010/11 2011/12

Budget R55m R92.5m R97.3m

PROGRAMME OBJECTIVES

• The programme has “ONE” aim and that is; to ensure that the competitiveness of these small towns is enhanced in order to attract investment and to retain the current investors.

• Support to the municipalities will be provided through grant funding for initiatives that will enhance these rural towns and create a clean and safe environment.

• The outcome will be the retention and attraction of investment thereby retaining and creating new work opportunities.

TYPICAL SMALL TOWN

BALANCED LED STRATEGY

Three legs:

1) Retain and grow existing businesses

2) Create new enterprises

3) Attract investment from outside

For the above to occur, govt is required to make a firm foundation by investing in:

– Hard (physical) and soft (economic)infrastructure

PROGRAMME ‘S STRATEGIC PILLARS OF SUPPORT

Small Town Rehabilitation Strategic

thrusts

Urban

Management

Infrastructure

Upgrade

Support to Economic

Sectors

Address dilapidated

buildings

Ripple Effect

Investment

Well managed and inclusive small town

STRATEGIC THRUSTS CONTINUED

• Urban Management includes: by law enforcement, management of informal trading and safety in the small town including surveillance cameras, waste management

• Infrastructure upgrade includes maintenance of roads and storm-water, street signs, robots, power networks and waste collection points.

• Support to economic sectors includes assessment of those sectors with a potential to grow the economy and contribute to the GGP. Clear strategies to promote growth of these sectors in line with PSEDS should be identified informed by the area strength and competitive advantage

• Addressing dilapidated buildings involves implementation of building controls and rehabilitation of disused buildings. This requires investment incentives and tax rebates.

• Promotion of ripple pond investments as catalysts for investor confidence. This involves anchor developments that will result in the attraction of other investment opportunities.

• Tertiary nodes in the priority corridors as outlined in the PSEDS

• Municipalities that have not received any substantial support from the Neighbourhood Development Partnership Grant (NDPG) of the National Treasury

• Towns that have a potential for growth and could present an opportunity to provide quick wins to increase confidence in the programme

• Focus on a few municipalities for maximum impact – 7/8 per year

• Each beneficiary municipality to confirm acceptance of nomination through a council resolution

CRITERIA FOR SELECTION OF TOWNS

LIST OF NODES CURRENTLY BEING SUPPORTED

2009/10 priority nodes 2010/11 priority nodes

Richmond Mtubatuba

Ixopo Winterton

Ladysmith Ezinqoleni

Nkandla Maphumulo

Jozini Manguzi

Tugela Ferry Nquthu

Harding Utrecht

Hlabisa

IMPLEMENTATION METHOD• Projects for implementation are packaged by the

beneficiary municipalities with the support of the Department and sector depts

• The proposed projects should change the physical outlook of a targeted town, be part of broader urban regeneration plan of a municipality, and most importantly they should have economic potential.

• The projects should promote job creation, local economic development and skills transfer and should have measurable impact on the lives of people on the ground.

IMPLEMENTATION METHOD

• The municipalities Business Retention and Expansion Strategies must inform most of the initiatives

• Private sector and business will play an important role in informing municipalities on what is required to ensure their business is retained in these small towns

• Stakeholder consultation critical in the identification of projects for immediate implementation

INSTITUTIONAL ARRANGEMENTS

• Municipalities were encouraged to put togetherinstitutional arrangements to enhance theimplementation of the programme.

• The proposed arrangement promotes participatorydevelopment and democratic local governance byensuring the participation of the relevant businesscommunities in matters that concern business.

Council

LED Portfolio

Committee

(Section 80

Committee)

Town Rehabilitation

Advisory Committee

(Section 79 Committee)

Town Rehabilitation Task Forces headed

by line function managers

INSTITUTIONAL ARRANGEMENTS CONT’

• The Town Rehabilitation Advisory Committee is made up of the Business Chamber, Rate Payers Association in the CBD, Taxi and transport association, informal traders association, SMME etc.

• The Advisory committee is informed by task forces headed by line function senior managers as follows:

– Infrastructure Component– to look into roads, storm water, street lighting etc

– Law Enforcement Component – Informal trading control , building control and traffic control

– Land use Component – Land use Management, Squatters, informal Traders location , zoning of land

– Clean up & Greening Component - Illegal dumping, Waste management, public ablutions, town beautification

PARTNERSHIPS DURING IMPLEMENTATION

• Trade and investment arm of govt- TIKZN

• Tourism KZN

• Department of Economic Development

• Department of Transport

• Department of Agriculture and Environmental Affairs- waste management and Greening component

• Private sector – CSI

• Organised business including Taxi Association

• Informal Business Associations

TYPE OF SUPPORT

• Grant funding for– Project conceptualisation , packaging and detailed

business planning

– Capital funding for implementation• Construction

• Refurbishment, upgrading, or extension

– Projects to be implemented using EPWP principles

• Municipalities need to commit to funding the O and M aspects of the project

FOCUS OF SUPPORTThe nature of support is focussed on , but not limited

to interventions in CBD such as:

• the upgrading of road infrastructure

• storm water management;

• street lighting

• Parking facilities and public transport facilities

• ensuring that there is adequate and appropriately zoned and serviced land available for investment;

• developing appropriate and sustainable incentive packages to attract business interest in the PSEDS economic sectors

• Developing a real estate, or land development framework for these small towns, aligned to the SDF and LUMS

• Town beautification and greening

• Clean towns – waste management and recycling initiatives

• Provision of social and economic infrastructure.

• Improving the physical environment in towns.

• Support to the informal sector

• Upgrade and improve quality of open space.

• Enhance place competitiveness

• Improvement in quality of transport infrastructure

• Creation of a safe environment

FOCUS OF SUPPORT

EXPECTED OUTCOMES• Productive towns

Looking into matters of economic growth and employment, information and communication technologies as well as good transportation systems.

• Inclusive towns

Through effective and efficient service delivery by the

municipalities as well as the physical rehabilitation of the small towns.

• Sustainable towns

Through the creation of a climate conducive for investment opportunities

EXAMPLE OF SOFT PROJECTS

• Urban Design Framework including implementation plan and list of priority projects as quick wins

– Supported Nquthu, Jozini ,

Nkandla and Msinga

• Town regeneration plans

• Sets the tone for the future

vision of the town

EXAMPLE OF UDF

• Tugela Ferry Urban Design Framework

– Node identified as the primary node in the most poverty stricken municipality of Msinga

– Land under Amakhosi

– No township establishment

CHALLENGES TO BE ADDRESSED• Land Tenure

• Unplanned Urban Environment

• General Congestion in town

• Absence of by laws

• Absence of effective law enforcement

• Absence of effective urban management

• Lack of appropriate facilities

UDF OBJECTIVES Address the physical structure of the town

to promote its functionality within the broader municipal economy;

Promote an urban structure that will respond to the needs of the town including clarity of infrastructure requirements and the promotion of Local economic Development for the area whilst respecting the ecological integrity and environmental sensitivity; and Attracting public and private investment.

PROJECT PRIORITISATION Project priotisation

OBSERVATIONS• Start small for visible impact

• Adopt a programme approach

• Cover all pillars as a focus on one aspect will not yield the desired results

• Results will not be visible immediately but over time

• Critical to have intensive consultation with stakeholders to understand expectations

• Everyone has a role to play- private sector, communities, the business sector

CONDITIONS PRECEDENT • Provincial Level

– Clear programme objectives and implementation methodology

– Adoption of programme approach instead of ad hoc isolated projects

– Provision of seed capital to kick start implementation of catalytic projects

– Clear communication plan

– Strong partnerships with stakeholders ( pvt and public)

– Intersectoral coordination

– Clear political guidance and championing

CONDITIONS PRECEDENT • Municipal Level

– Capacity to identify and package business retention and expansion initiatives

– Council /leadership buy in and drive

– Clear vision for the future growth of town ( urban design framework)

– Stakeholder consultation in packaging and prioritisation of projects

– Counterfunding to show commitment

– Funding for O and M

– Willingness to enforce by-laws

THANK YOU/ SIYABONGA

Contact details:

barbara.mgutshini@kzncogta.gov.za