YOUTH PROPORTION
KPA 1: BASIC SERVICE DELIVERY
7.3 COMMUNITY AND SOCIAL SERVICES .1 Environmental Management
7.4.19 VALUATION ROLL
The municipality has developed and adopted the valuation implementation plan for the third cycle valuation roll in terms of the Municipal Property Rates Act (MPRA) as amended. The plan was adopted by municipal council on the council meeting of the 28 June 2017 and informed the office of the Member of the Executive (M.E.C) as required.
139 | P a g e The council allocated the budget of conducting the third cycle valuation roll that will be implemented as from 1 July 2019 and appointed the service provider thereof. The council also reviewed the municipal rates policy as it is done on annual basis with the bylaws inclusive of tariffs that are advertised and gazetted by law. The rates policy was adopted by the council and the bylaws that give effect to rates policy along with the resolutions to levy rates and are in the process of being gazette for this financial year as required in terms of the property rates act.
The municipality is in the process of implementing the final supplementary valuation roll for the 18/19 financial year, an update in the general valuation of 2014, which is updated annually in the form of supplementary valuation rolls as contained in the IDP. The valuation roll is further available in the municipal website for public viewing.
The general valuation roll for 2019/20 financial year is in draft phases, the advert has been published in the public newspaper for the two consecutiveness weeks as required by law for the period of 60 days, issued the notices to individual property owners. The gazette notice of the adverts was also publicized in the government gazette with No 4200.
7.4.20 Spatial Development Framework
The municipality reviewed and adopted the spatial development framework in the 2014/15 for the period of five years. The approved spatial development framework will be due for another review in the 2019/2020 financial year. As part of implementing the approved spatial development framework, the municipality is in the process of developing the local spatial development framework of the identified nodes. In this current financial year, the municipality is in the process of developing the coastal spatial development framework to guide the development in the fast growing Mzamba node and the incorporation of N2 construction that is underway. The municipality intend to develop the N2 corridor development plan with the intension of promulgating a town along the coast.
140 | P a g e LOCAL ECONOMIC DEVELOPMENT
7.4.21 Sectoral Economic Performance
This section will look at the local economy in terms of its different constituent economic sectors. The purpose is to observe the performance of the economy from a sectoral perspective. They are categorised into the primary, secondary and tertiary sectors, and the classification of economic activity shall be based on the South African Standard Classification of all Economic Activities (SIC) approach. The table below shows the detailed breakdown of the various economic sectors and activities between 2011 and 2013.
2013 2012 2011
Sector Economic Activity % % % %
Primary Agriculture, Hunting, Forestry, Fishing 8,7
8.7 8,5 8,8
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Mining and Quarrying 0
Secondary Utilities 12,2
Construction 5,5 27,9 28,5 28,8
Manufacturing 10,2
Tertiary Wholesale and Retail Trade 16.6
Transport, Storage and Communication 9,5 Financial, Real Estate and Business Services 2,9 63.4
63 62,4
Community, Social Services and Personal
13,7
Services
General Government 20,7
Total 100 100 100 100
Table 1: Major Economic Activities (Source: ECSECC, 2013)
It has been analysed that MLM has the lowest contribution toward the Gross Geographic Product (GGP) in ANDM (9.3%), and from Table 3 above, it also emerges that the tertiary activities dominates economic activity in the region, throughout the three (3 years), contributing the highest to the GVA at 63,4% in 2013, with general government and community services contributing the highest within these categories, followed by the wholesale activities. Another significant contributor is the Secondary sector, contributing 27, 9%, in the economic landscape.
Natural based primary sectors in a rural based area like MLM, namely agriculture and mining, made a very small contribution to the formal economy, in term of GVA contribution, with agriculture contributing 8, 7%.
This also shows a slight increase from 2012 (8,5%), even though in 2013 the contribution of this sector was higher (8,8%).
A small resource-intensive agricultural and mining base has implications on the size and scope of manufacturing activity in any area. As a result of a small amount of raw unprocessed primary inputs being
142 | P a g e produced, there is limited range for value adding activity through agro-processing and beneficiation activities.
The strong presence of the tertiary sector indicates reliance on trade and services, especially from the government sector. Implications of the dominance of the government sector in the municipal economy, is that government services form the basis of the economy in the municipality, and focus has to shift to develop other sectors with potential.
It is evident therefore from the above analysis that MLM has a limited and almost non-existent industrial economy.. Like most rural municipalities in the EC, development is limited, which could be due to acute backlogs in social and economic infrastructure.
7.4.22 Sectoral Employment
This section provides an indication on how sectoral economic performance has contributed to the sectoral employment profile in the study area. The figure below show how each of the performing sectors has contributed to employment.
Figure 2: Employment by sector (Source: ECSECC, 2013)
From figure 7, the dominance and importance of the Tertiary Sector that has been brought out throughout this chapter is emphasised once more, as the largest employer at 64 %, showing that it employed the most people, with most jobs believed to be associated with state-owned employment, which belies this dominance, followed by the primary sector at 19%, indicating the use of labour intensive methods in primary production
143 | P a g e Overview
It is evident that the primary sector, which is the direct use of raw materials from natural resources, does not make much GVA contribution towards the growth of the local economy. Improvements in this sector would have a resultant positive effect to the secondary and the tertiary sectors, and therefore improvements in the primary sector should become a strategic priority focus for this rural based area.
Opportunities Constraints
A number of estuaries and river mouths can be utilised for Mari-culture initiatives.
A large seafood market exists in Durban, which is bordering this municipality.
Illegal fishing and traditional agriculture practises are polluting the estuaries.
No Biodiversity Conservation Plan.
No mari-culture development strategy in place
SMME, Cooperatives and Informal Trade
Overview
This is a sizable sector even though it is largely un documented. The informal component is visible in the form of informal traders or hawkers on pavements, markets and taxi ranks in Mbizana, Mzamba and Magusheni.
In the more isolated rural parts of the municipality, the sector takes the form of spaza shops that provide for the daily needs of the communities. General products traded in include basic foodstuffs, clothing, hair products, fruit, vegetables, paraffin, airtime and toys. The municipality has an informal trader policy which seeks to regulate the sector. The sector in town seems to be fairly organized, but there is however limited availability of trading facilities for the informal sector.
Constraints
Government legislative framework, and Lack of an SMME, Co-operatives and Informal support programmes targeted towards Trade development strategy
SMMEs, Cooperatives and the Informal Trade Poor governance within the Co-operatives sector
Sector development (e.g. energy co-operative)
Current collaborations with other organs of No local procurement bias in government nor state to support the sectors, eg SEDA supply chain policies
144 | P a g e Business Support Centre No red tape reduction programme and awareness Informal trading policy initiative around government processes.
Limited informal trade facilities
As it could be noted from above, there is still a huge untapped development potential within the key growth sectors of the municipality, which through dedicated and well-planned sector development, could promote social development, and thus stimulate sustainable economic growth.
7.4.23 Infrastructure profile
Economic development is dependent on the socio-economic traits of an area and its economic characteristics. However, a pre-requisite for the unlocking of economic potential from these elements is the presence of economic infrastructure, which is often a trigger for any potential investment within any local area. This chapter will assess the status quo of available LED related infrastructure in MLM in terms of:
Water services;
Sanitation;
Electricity;
Telecommunication;
Waste Management;
Road and Transport.
The provision and availability of economic related infrastructure is a determining factor in the implementation of economic development programmes, as it provides an enabling environment for development, and without a proper enabling environment, economic development cannot be fully realised.
From the above analysis, it is evident that there is a general lack of basic service provision, coupled with economic development infrastructure in MLM, and this need to address, as an enabler for local development, as well as the attraction of private sector investment, which is necessary for broad economic development
145 | P a g e 7.4.24 Local Economic Development Forum
MLM has got an LED Forum that was established in 2010, and later re-launched in the year 2015, with a capacity development provided to the Forum members, as well as reviewed Terms of Reference (TORs).
The forum acts as “a Platform (institutional arrangement) where residents (individuals, private organizations, government, NGO’s, CBO’s, traditional authorities) within a particular locality gather, with an aim to share information and experiences, pool resources and solve problems.” The LED Forum is represented by the following institutions, with each institution represented by an individual/s who are expected to consult, and also report back to the nominating institution:
Government departments (National, Provincial and Local);
Government Entities and Municipal Entities;
Non-Governmental Organisations (NGOs)/Civil Society Organisations (CSOs);
Chamber of Business;
Youth Council;
Academic Institutions.
The LED Forum has got the following roles and responsibilities:
Promote and facilitate partnerships between government, private sector, civil society and organized labour for overall economic growth;
Disseminate and share information on LED related issues;
Improve Integrated Economic Planning (through broad participation and coordination of key economic role players (government, business, labour, NGO’s, CBO’s, etc);
Assist to identify and capitalize on local competitive advantage for territorial economic and social development;
Develop the LED vision and strategic focus for the municipal area;
Improve the economic performance of the municipality with respect to all its key sectorial aspects (Tourism, Agriculture etc) of LED;
Assist in the establishment of Sector specific Working Groups/ Sub-Sector Forums (LTOs, CDFetc);
Enhance Enterprise Development and Support;
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Identify and eradicate overlaps, duplication and misaligned strategies (for effective and efficient use of resources);
Coordinate access to finance and other non - financial resources (capacity development etc.) for LED initiatives, and the creation of multi-sourced funding streams;
Assist the municipality in the monitoring & evaluation of LED activities.
7.4.25 Business Retention and Expansion.
Mbizana Local Municipality has a Business Retention and Expansion manual that gives guide lines and recommendation for the institution, in order for the municipality to encourage and motivate local businesses to fully comply with the developed Business Licensing System, businesses need to see and experience value added services and benefits from the municipality, and the implementation of the developed BR&E Manual could be one the measures that could assist in ensuring that local businesses continue to prosper and thrive, through economic situations. Also to stimulate local economic development and create employment opportunities by retaining and expanding existing businesses.