CHAPTER 4: SITUATIONAL ANALYSIS 4.1 OVERVIEW OF THE MUNICIPALITY
8. LOCAL ECONOMIC DEVELOPMENT ANALYSIS
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7. SOCIAL SERVICES
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The Feasibility studies commissioned by the Municipality recommended an LED Strategy that focuses on the following areas:
Crop Farming
Livestock Improvement
Forestry(New Afforestation; Category B & C and Indigenous Forest)
Sand & Quarry Mining.
The Co-operatives Strategy informed by baseline study commissioned by Ntabankulu Local Municipality has also been developed and adopted by Council in 2008/2009 financial year.
The aim of the strategy is to respond to key socio-economic priorities of the area as reflected in the Eastern Cape Provincial Growth and Development Strategy as well as the Ntabankulu Integrated Development Plan. The strategy emphasizes the need for the stimulation of high levels of employment through various sectors of the economy.
Under this strategy small project undertakings were joined willingly to form primary cooperatives at ward level specializing in particular products of comparative advantage.
According to the strategy, primary cooperatives will then willingly join hands to form Secondary Cooperatives at a Municipal level also according to range of their production.
To date, 71 cooperatives are registered and trading as primary cooperatives. 01 secondary cooperative in arts and craft has been registered. A Cooperatives Indaba has recently been held in October 2011, with a sole purpose of bringing into the disposal of cooperatives institutions that can assist in their growth and sustainability, and thereby reducing dependency on the municipality, thus promoting self-reliance.
As outlined in 6.1 of the IDP ‘the Municipality plans to support and retailers through capacity building programmes ,registration with professional bodies and licensing programmes. The Ntabankulu Local Municipality Economic Indaba is scheduled to take place in the 2012/2013 financial year where strategic partnerships would be established.ie
A strategic partnership with Department of Public Works with the interest of soliciting more land for developmental purposes.
On Training and Capacity Building, a Memorandum of Understanding has been signed between Ntabankulu Local Municipality and SEDA to offer support to Ntabankulu SMME’s in the form of business advice, business development, business plans, financial reports, business registration, marketing and training.
From 2010/2011 financial year 158 co-operative members and SMME’s have been trained in Tender Advice, Bookkeeping and Basic Financial Management.
In 2010/2011 financial year the municipality in partnership with the Department of Sports, Recreations, Arts and Culture has trained six (06) primary arts and culture & sewing cooperatives.
On Agriculture, since 2008/2009 financial year the municipality; through equitable share funded primary co-operatives as follows:
Poultry co-operatives with chicks, vaccines, poultry feeds (Khanyisa Poultry Co-operative, Mbangweni, Babondla, Ratanang)
02 Goat farming co-operatives: Silindini Ward 4 and Ndwana Goat Co- operatives Ward 9 with 13 rams & 5 ewes
Construction of Goat shelters for Ndwana Co-operatives has been finalized in 2010/2011 financial year.
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Fundaninathi Ward 05, Zamokuhle Ward 6, Izulu Elihle Ward 03 , Zamokulungisa Ward 01, Valindllala 15, Washiywa 08, Golden Ring Ward 11 and Iziko Crop Farming Co-operatives Ward 16 funded with fencing materials, seedlings.
Construction of shelters and provision of vaccines is to be provided for Nkonjane piggery cooperative in 2011/2012 financial year.
In 2011/2012 financial year the Municipality has prioritized fencing and supply of seedlings to two co-operatives, Silwanendlala Ward 18 and Sekunjalo Ward 10 crop farming co- operatives.
On Tourism, The Department of Economic development and Tourism is the lead department in streamlining LED programmes in partnership with municipalities and public entities.
Currently in the Ntabankulu Local area, the programme has been allocated R2 million for Ntabankulu Dam Recreational Facilities. The Ntabankulu Dam Recreational Facilities was rescinded by Council due to Land Claims around the area.
a) 600 sqm² of land in the urban area ward 9 was then identified by Council for construction of Ntabankulu Cultural Village. The funding at a total cost of R2 million aimed at Building of cultural village at Ntabankulu town outskirts.
Currently site fencing and clearance done. Paving, Landscaping and cultural village / exhibition structure finalized.
Apart from Department of Economic Development funded projects, the Department of Sports, Recreation, Arts and Craft funded Arts and Craft centre in 2006/2007, utilized as an arts and craft hub to support Ntabankulu Cultural Village. Secondary Arts and Craft Co- operative, Masilivusithemba Secondary Co-operative with 50 members (women) is currently occupying the site. The Secondary Co-operative has been funded by the municipality with six machines (04 industrial machines and two overlock machines, and sewing material. In 2011/2012 financial year the municipality prioritized to assist the Masilivusithemba Secondary Co-operative in accessing market.
On Forestry, the feasibility study and business plan funded by Thina Sinako in 2008/2009 financial year, identified forestry opportunities along the north route to Flagstaff (Wards 2, 8, 16, 17 & 18). The recommendations of the feasibility study include establishment and registration of community business entities, application for licences and permits; and social facilitation to secure community land resolutions.
The Industrial Development Co-operation has been engaged by the municipality to assist the municipality in the identification of strategic partners, applications for licences and Environmental Impact Assessment.
Water Licences, permits applications have been submitted on behalf of the community members by Sappi in Ward 2, and by Hans Merensky on behalf of Ward 16 & 18.
On Mining, the municipality had commissioned a feasibility study on sand and quarry mining funded by Thina Sinako. The recommendations of the feasibility study include establishment and registration of sand and quarry mining business entities; application for licences and permits. Community Land Resolutions in Wards 4 & 5 have been obtained, the municipality is now in the process of securing environmental authorizations and mining permits.
Ntabankulu Local Municipality has centralised programmes and projects to ensure effective processes in place to ensure sustainable job opportunities. The programs management office is funded by the Department of Economic Development and Environmental Affairs
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and a long term plan in partnership with the Department is to develop a credible Economic Development plan.
One of the key focus areas within the municipality fir the next five years is to develop business retention, expansion and attraction strategy.
On EPWP, the Municipality reported successfully in the fourth quarter. The following projects were EPWP initiated, and reported as such:
• Ziko Fencing
• Ludeke community hall
• Washiywa fencing
• Bakuba pre –school
• Pothole patching in town
• Paving
Currently the municipality has registered projects for infrastructure, environment and social.
The total EPWP indicative incentive allocation for 2012/2013 for the municipality is R1 million.
For this allocation the municipality is targeted to create 253 jobs equivalent to 49 FTE’s.
In the financial year 2012/2013, the Municipality is restructuring the Strategic and Developmental Plan Directorate to separate Strategic Planning and L.E.D. units. This will create space for and enhance the LED unit capacity.
The Proposed structure is illustrated below:
The Budget Policy of the Municipality stipulates that 20% of the institutional Performance and Budget must be dedicated to Local Economic development. The purpose of this policy is to enhance Local Economic Growth.
Strategic partnerships are to be forged to advise the Municipality through formation of Mayoral Economic Advisory Council.
The objectives and five year term strategic prioritized within LED are outlined in Chapter 6 subsection 6.1 of the IDP are informed by community interactions.