DEVELOPMENTAL PRIORITIES AND SECTOR PLAN
4.2 SECTOR PLANS
4.2.2 LED STRATEGY
Economic Development is the development of economic wealth of communities for the well-being of their resi- dents. Local Economic Development can be defined as efforts that seek to improve the economic well-being and quality of life for a community by creating and/or retaining jobs and supporting or growing incomes.
LOCAL ECONOMIC SECTORS
The key sectors that drive the economy of Mkhondo Local Municipality are:
• Mining
• Agriculture
• Forestry
• Tourism
• Manufacturing
• Transportation and logistics
Mining products produced in Mkhondo are mainly coal and iron ore. Two mining houses are currently legally licenced to operate and mine within the jurisdiction of Mkhondo Local Municipality, Kangra Coal Mine (Saul Mkhizeville) and Jindal Africa Mine (Kiepersol). As part of their Social Labour Plans, they promote employment of local labour, subcontracting, skills improvement / transfer, bursaries, internship, infrastructure development, amongst other things.
Agriculture is also intensively practiced in Mkhondo varying vegetables, maize, soyabeans production and live- stock farming. It is sold as both raw material and in a processed form. Forestry is also a very dominant sector in Mkhondo. The forestry industry consists of forest plantations leading to primary processing industries where the products include dried and treated timber. Pulp and paper production, manufacturing of furniture, construction material like door and window frames are secondary products. Though this industry displays some value chain, there are other opportunities that need further exploration.
122 Tourism in not fully recognised. Much emphasis have been given to this sector in terms of marketing it to the tourist. A tourism brochure was developed in trying to market all the tourism establishment and attractions. An- nual events are also taking place in Mkhondo which forms a great part of Tourism promotion.
For all of this to happen, and to interlink the value chain, means of transport need to be in place. Mkhondo is also a thoroughfare for Kwazulu-Natal, Swaziland and Mpumalanga. The N2 corridor cuts right in the middle of the town.
LED STRATEGY
The key objective in the compilation of a Local Economic Development Strategy is
built on identified developmental needs, opportunities, competitive advantage and an enabling environment that will inform and guide Mkhondo Local Municipality to exploit, unlock economic development potentials, encourage private sector investment job opportunities for the poor and expand the revenue base. The main objectives of LED as per LED framework and Mkhondo IDP are to:
Align LED Strategy with all government policies and development objects, which are mainly job creation and eradication of poverty.
Ensure gaps identified are covered in this strategy
Ensure the strategy meets and works towards Mkhondo Local Municipality’s vision
Ensure a credible and implementable LED Strategy
Diversification of economic sectors to reduce reliance on mining, quarrying and agriculture,
A productive economy with high levels of service, skilled workforce and modern systems of work organi- zation and management.
Eradication of poverty, reduce the income inequalities and provide basic services for all.
Economic growth in a sustainable manner, for the benefit of all the communities living in the Mkhondo Local Municipality.
Employment and increase levels of participation in the economy by all, especially by the previously ex- cluded and presently marginalised, and
A fair, effective and conductive business environment for enterprises and consumers.
DEVELOPMENT OF SMALL AND MICRO-ENTERPRISES (SMME)
SMME development is recognised as having a significant role economic growth in South Africa. It is through this and enterprise development, that employment opportunities are created and empowering of local communities.
SMME development can stimulate much needed economic development and reduce crime, poverty, unemploy- ment and social inequalities. Some approaches to SMME development:
1. Business Development Services - Capacity building workshop and awareness workshop to enable emerging businesses to be self-sufficient.
2. Woman’s Development – Some areas see women still discriminated against and excluded from business. En- terprise development can help woman overcome the stigma and help them access the knowledge and skills to become entrepreneurs.
3. Community Development – Enterprise development aims to improve the community from a grass roots level.
Mkhondo co-operative development starts with analysing what the community can offer and the economy of the municipality. Once the opportunities are identified, they can be targeted, enhanced and transformed into a self- sustaining business.
123 4. Support Private Partnerships – Many emerging businesses are getting support from the private sector. These partners are working directly in businesses and offer development skills. By assisting with skills and providing financial aid, this partnership is resulting in some successful businesses. Mkhondo has played a leading role in support the development of SMME and will continue to work together with business community, sector depart- ments and private sector to promote SMME in the area.
SMME/CO-OPERATIVES DEVELOPMENT AND SUPPORT
Co-operatives from across the Mkhondo are to benefit from Sectors like Agriculture, Manufacturing, Forestry and Mining e.g. Coal across Mkhondo. In an endeavour to harness the prospects of SMMEs within Mkhondo, the fol- lowing aspects must be addressed:
• Promotion and Development of Local enterprises;
• Ensuring access to the finance;
• Initiating and supporting job creation projects;
• Building capacity of Service Providers;
• Market development and Trade promotion;
• Supporting development of Cooperatives.
RESPONSIBLE TOURISM DEVELOPMENT, PROMOTION AND SUPPORT
Tourism may have not been considered as a key sector contributing to the Mkhondo economy but this sector has incredible potential with minimal or no harm to the environment. This has necessitated Mkhondo to develop a Responsible Tourism Plan which gives guidance on the possible institutional arrangement that will enable im- proved relations in the advancement of the tourism sector. This plan assists in identifying the status of the ena- bling environment for tourism to take place which will in return create much-needed job opportunities.
• The availability of tourist attraction facilities and natural sites e.g. conferencing facilities, casino, resorts, motels, game farms, wetlands and Bed and Breakfast accommodation.
• The new tourism phenomena offering unique tourist adventure i.e. the township and industrial tourism and visits to township traditional sites.
COMMUNITY SKILLS DEVELOPMENT
Mkhondo Local Municipality provides bursaries at FETs, Universities of Technology and Universities to deserving underprivileged students. Furthermore, the students who graduated from these institutions were, where possible, offered experiential/on the job training after completing their studies to enhance their chances of being absorbed in the job market. The institution also runs a sustained internship programme in all areas of its operation.
EXPANDED PUBLIC WORKS PROGRAMME (EPWP)
The EPWP is a nationwide programme covering all spheres of government and state-owned enterprises. The Pro- gramme provides an important avenue for labour absorption and income transfers to poor households in the short to medium term. It is also a deliberate attempt by the public sector bodies to use expenditure on goods and services to create work opportunities for the unemployed. EPWP Projects employ workers on a temporary or on- going basis either by government, by contractors, or by other non-governmental organizations under the Minis- terial Conditions of Employment for the EPWP or learnership employment conditions.
124 Mkhondo Local Municipality is actively involved in the implementation of EPWP through programmes like Phezu- komkhono, Community Workers Programme (CWP) and MRTT. All these programmes aim to improve the life of the youth and give them necessary skills for future job market.
COMPREHENSIVE RURAL DEVELOPMENT PROGRAMME (CRDP)
The Comprehensive Rural Development Programme (CRDP) is strategic priority number 3 within the National Gov- ernment‘s current Medium Term Strategic Framework (MTSF) and implemented under Outcome 7 which strives for Vibrant, Equitable, Sustainable Rural Communities and Food Security for all.
Mpumalanga Provincial Government launched the pilot phase of CRDP in 2009 Mkhondo Local Municipality. Com- munities have widely benefited from the CRDP. SMME’s and cooperative have also received a number of exposer, financial opportunity and skills transfer. This program has come with huge benefit of first class infrastructure de- velopment in all sectors and all jurisdiction of Mkhondo, including the rural areas.
4.2.3. HUMAN SETTLEMENTS AND HOUSING STRATEGY