ECONOMIC DEVELOPMENT & ENVIRONMENT PROFILE

According to the regional manager the key challenges facing the delivery of sustainable social development programmes in Nyandeni still include:

Lack of financial skills among people running projects

Poor incentives in terms of regular incomes which tend to demoralise volunteers and cause them to withdraw their participation

Lack of proper monitoring due to insufficient staffing

ECONOMIC DEVELOPMENT & ENVIRONMENT

The LED strategy is sympathetic to the Provincial Growth and Development Strategy priorities as well as some of the resolutions of the District Economic summit held by OR Tambo recently.

The main challenge facing the municipality’s efforts to roll-out the strategy is lack of funds. A commitment is made in the current IDP review to build lobbying capacity for mobilizing resources to ensure that the LED strategy is fully implemented.

INSTITUTIONAL ARRANGEMENT

Local Economic Development is located in the Economic Development and Planning Department and has a compliment of 8 staff members, 7 posts have been filled and only one post is vacant.

Nyandeni Local Municipality has identified the following economic development sectors

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Agriculture

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Tourism

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Forestry

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Retail and Business

GOAL 1 Agricultural Development

Nyandeni has total land available of 41 779 ha of arable and 160 803 ha of grazing land, the climatic conditions are good for live stock and crop production.

The contribution that agriculture makes to the economy of the area is minimal, despite its potential. The agriculture sector is still operating at a very basic level, with the main focus being subsistence farming. The majority of the households involved in farming and crop production activities do not generate any real income from agricultural sector as their farming and agricultural practices are mainly driven by social and cultural purposes.

The status quo regarding farming practices can mainly be attributed to low education and skills levels

In order to turn agriculture into a vibrant economic sector, substantial private and public investment funding and partnership will have to be obtained. Only 14% of the arable land and 10% of grazing land in the municipal area is fenced.

Key Programmes

Key programmes that have been identified include;

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Livestock improvement programme

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Maize farming and mealing

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Facilitation of partnerships and municipal twinning programmes

Partnership

The municipality has facilitated the following partnership to assist in accelerating service delivery

INSTITUTION AREA/Project

Asgisa Eastern Cape Partnership on agrarian development

Partnership with Mhlontlo Local

Municipality Ntlangano Conservancy Project

DBSA Town Planning and Technical

Services

Thina Sinako Mlengana Eco Tourism

Development and capacity building for officials

RULIV Accessing funding for local

economic development initiatives Massiv and Commercial Farmers

Partnership with Tsolo Agriculral

College Capacity building for farmers

GOAL 2: TOURISM DEVELOPMENT

The 2010- 2015 Tourism Sector Plan is in the final stages of its development, the tourism vision is to become a destination of choice in the Wild Cost by 2020, a destination that is environmentally sustainable, equitable and responsible.

Strategic Objectives Intervention

To develop new tourism products to

grow the destination

Create an enabling environment for the development of tourism SMME and other experience

Develop the coastal section

of NLM

Develop a diverse and

competitive tourism products offering for NLM

Provide support for to existing

tourism products in line with

Strategic Objectives Intervention

industry standards

Develop investment

packages To market and position Nyandeni

LM as a tourism destination

To establish tourism authentic brand

Use the coast as a draw card for tourists

To ensure tourism integration, participation and awareness

Integrated plan with the

Eastern Cape, OR Tambo and the surrounding LMs

Education and tourism awareness to communities

Encourage tourism businesses

to invest in social upliftment of rural communities

Following the OR Tambo District Investment Conference held in 2009 the following key projects have been identified;

Hluleka Corrdidor Expansion

Mthatha Mouth Development

Mdumbi Development

Ntlangano Conservancy

Mlengane Development Initiative

Wild Coast Development

GOAL 4: FORESTRY DEVELOPMENT

Despite its potential, the forestry sector in Nyandeni is seriously under- developed, resulting in limited opportunities for economic growth. The total hectorage of forest land is 11, 535, 5 ha this includes community forests and indigenous forests.

Forestry Economic Objectives

To secure land for new afforestation

To establish forest enterprises and downstream processing activities

To secure a flow of private sector investment and participation in

the forest management

To grow employment opportunities by 3% per annual

Key Programmes

New afforestation

Establishment of pole preservation plant

Forest related enterprises

Removal of alien plants

Infrastructure development

GOAL 5: RETAIL AND BUSINESS DEVELOPMENT

Economic Objectives

Formalisation of the retail sector by at least 50%

Increase of the business turnover

Increase on employment growth including self employment

Mentorship and incubation programme

Structured partnership between the municipality and local business organisation

Key Programmes

Business development services and SMME support programme

Shopping centres and office park in both towns

Development of fuel station

Bus and taxi development

Creation of strategic partnerships

Assist with the capacity building

LED STRATEGY

Municipal LED Strategy was developed and adopted by Council in 2005, because it was a 5 year plan it is currently due for review, the Department of Local Government and Traditional Affairs has committed an amount of R100, 000 to support the review of the LED Strategy in the 2010/2011.

For purposes of this review the OR Tambo 2009 LED Strategy has been used as the baseline information

Regional development, Comparative advantage and Competitive Advantage

The Nyandeni economic development planning has been aligned with the Provincial Growth and Development Plan objectives;

Provincial Growth and Development Plan Objectives 9

Systematic poverty alleviation

Agrarian transformation and food security

Manufacturing diversification and Tourism

Infrastructure Development

Human Resource Development

Public Sector and institutional Transformation

Eastern Cape Rural Development Strategy