Address
s: P. O. Box 1
Civic Cen 0, Warrenton AA
ntre, Magrieta n, 8530 ANANNNUUAALL
a Prinsloo St Tel:
REREPPOORRTT 2
treet, Warren 053 497 3111 20201100//220011
nton, 8530 1
1 1
Fax: 053
497 4514
Chapter 1: Introduction and Overview 1.1 Foreword by the Mayor 1.2 Executive Summary 1.3 Overview of the Municipality
1.4 Vision, Mission and Values Chapter 2: Assessment of Peformance
2.1 Annual Performance at a Glance 2.2 Report of the Chief Finance Officer 2.3 Report of the Head: Technical Services 2.4 Report of the Head: Planning and Development
Chapter 3: Human Resources and Other Organisational Management 3.1 Human Resources Overview
3.2 Number of Staff per Function 3.3 Trends on Staff Expedniture 3.4 Pension and Medical Funds
3.5 Disclosure on Councillors and Senior Management Benefits 3.6 Employment Equity and Workplace Skills Plan
3.7 Labour Relations and Disciplinary Proceedings Chapter 4: Audited Statements and Financial Information
4.1 2009/10 Audited Annual Fiancial Statements
4.2 2009/10 Audit Report 4.3 Audit Response – Action Plan
Chapter 5: Functional Area Service Delivery Report 5.1 Executive and Council
5.2 Finance
5.3 Planning and Development 5.4 Sanitation
5.5 Water
5.6 Human Resources 5.7 Community Services 5.8 Housing
5.9 Roads
5.10 Electricity Distribution 5.11 Street Lighting
AG Auditor General
Asgi-SA Accelerated and Shared Growth Initiative of South Africa CBD Central Business District
Cllr. Councillor
DEAT Department of Environmental Affairs and Tourism DME Department of Minerals and Energy
DGDS District Growth and Development Strategy
DM District Municipality
DPLG Department of Provincial and Local Government FBDM Frances Baard District Municipality
IDP Integrated Development Plan
LED Local Economic Development
MFMA Municipal Finance Management Act (Act 56 of 2003)
MLM Magareng Local Municipality
MIG Municipal Infrastructure Grant
PMS Performance Management System
PGDS Provincial Growth and Development Strategy SDF Spatial Development Framework
TLC Transitional Local Council
TRC Transitional Rural Council
WSDP Water Services Development Plan
C C
I I n n tr t O
C C h h ap a
r r o o d d O O v v e e
a a p p t t e e
d d u u c c t t e e r r v v i i
t t e e r r
t t i i o o n n i i e e w w
1 1 : :
n n & &
w w
&
&
Counc ncillors
W
Elf id
Councillor illie Johnson
ANC
Councillor
M it A
n E
ANC
G
Councill Elizabeth Ma ANC
Councillo Joseph Mol
May ladys Make
AN
or anopole
or eele
yor
na-Motshele NC
Coun Maria Bosm
Councillor Visagie
e
ncillor man DA
Hans ID
Co Ben A
Cou ouncillor
Macomo ANC
uncillor
Senio
Head D An
or Manag
d: Planning Development ndrew Morem
gers
and t mi
Head: Cor Servic Vaca
Municipa Shadra
rporate ces ant
al Manager ack Mere
Head:
Se Ryan
Technical ervices
n Peters
Ch
Hend
hief Financia Officer rik Oberhols
al
ser
1.1 Forew
Fellow Resid It gives me the senior l appointmen Our strateg challenge in consistently highyl skille The paymen the local au The most si the sewer p local econo raod.
The poor pr community to the wate partners an hard at wor distruction obtain the n in our area While the De developmen impact, geo Our policies in the comin disadvantag Though faci administrat as we forge We thank yo
word by the Ma
idents, great pleasure to
evel as the then A nt of the Technica
gic planning sess n our municipality y been addressed ed personell is a h nt for municipal se uthority.
ignificant projet th plant to its rightfu
mic development
ressure in the wat members not get r reticulation sys nd governemnt de rk to find lasting s system through t necessary funding of jurisdiction.
eed of Sale was c nt of the shopping o-tech and retail f s will continue to f ng years. It is cur ged sections of th ng numerous cha tion. The public me e ahead in this dev ou for your contin
ayor
o present this Ann Acting Manager ha l Head in January ion in January 20 y has been the lac d through executiv headache for sam ervices and prope
hat needs ul location. This
in the buffer
ter distribution tting enough
tem. This matter epartments. At solutions to the repairs to g and equipment
oncluded with g mall next to the
feasibility studies.
favour the indigen rcial that we work he community.
allenges our munic eetings and imbiz velopmental traje nued support and
nual Report to the anded over the re y 2009 was also in 09 resulted in ne k of adequate fina ve programmes, w ller municipalities erty rates needs t
N12, the documen .
nt households in o k tirelessly to atta
cipality is determ o’s held on the ke ctory.
best wishes.
e public. The year eins to the newly-a ntended to strenth w and innovative ancial resources t workshops and ne s like ours.
to be improved so
t needs further a
our area. We inten ain the ideal of “ho
ined to provide th ey documents suc
2008/09 was ch appointed Municip hen the managem strategies for eff to implement our ew appointments.
o that the necessa
mendments in the
nd to expand on th ouses, security an
he community wit h as the IDP and
aracterised by th pal Manager in De ment team for imp fective service de plans. The limitat However, the cha
ary resources ca
urgent impleme will pave the wa area between Ik
in Ikhutseng res potable water a was highlihgted the time of clos address the pre our reservoirs.
to address the d
private sector d e light of new find
he free basic serv nd comfort” espe
h good governnce SDF have given u
he change in mana cember 2008. Th roved service del elivery being carv tions realting to k allenge to recruit
n be placed in the
entation is the relo ay for spatial integ khutseng ahd the
sulted in some of although they are and taken up wit ing the fiancial ye essure levels in th We are also hard deteriorating mun
developers for the ings during the tr
vices to deserrvin cially for the prev
e and a responsiv s more issues to
agement at e livery.
ed. The main key skills is
and retain
e hands of
ocation of gration and N12 national
our connected h other ear, we were he water d at work to
nicipal roads
e raffic
ng residents viously
e think about
f
f
I would l making
As the Muni Municipality opportunity Magareng L financial yea
The report h of Section 46 Systems 32 o Municipal Fi
This Report r Municipality the Integrat the Service D which is “By with improv economic an Magareng L by the Batho System, it is developmen
The focused have for the of the Audit conclude tha
As Magaren we fulfill on
Lastly, it is a Governance Eradication
We table thi this report b desired outc learnt from we will ensu focusing on
like to thank 2010/2011 a
icipal Manag y, I am privile in presentin ocal Municip ar.
has been com 6 of the Loca of 2000 and inance Mana
records prog y in fulfilling
ed Developm Delivery and y the year 20 ved quality o nd environm ocal Municip o Pele Princip anticipated ntal mandate
attention on e second cons report is a b at we have a ng Local Mun our develop also necessar as we believ of poverty an is report in th bears our tes
comes for the the challeng ure that a qua
continual im
k the Mayor, a success.
ger of Magar eged to have g the Annua pality for the
mplied as per al Governmen
the Local Go agement act gress made b its objective ment Plan, th Budget impl 020 Magaren of life for its mental devel pality’s natur ples, and wit
that Magare e as entrench n our institut secutive year benchmark of attained a me nicipality, we
mental local ry to mention ve that good
nd for the su he spirit of B timony to ou e years ahea ges we came ality and sus mprovement.
Senior Mana
reng Local e this al Report of
e 2010/2011
r the provisio nt: Municipa overnment:
56 of 2003.
by the as reflected he Budget, an
lementation ng will be a s entire peop opment re of service th the implem
eng will be in hed in the Co tional capaci r received a f corporate g easured sens e will challeng l governmen n that we ha d governance ustainable de Batho Pele, p
ur commitme ad. We will bu across, toge stainable del
agement and ons al
d in nd
Plan and in sustainable d
le in areas o
is emphasize mentation of n a better po onstitution.
ity has indee disclaimer a governance i se of adminis ge ourselves t goals.
ave tried to a e is integral t evelopment o
utting our pe ent for settin
uild on the a ether with ou livery of mun
d the entire s
upholding th developmen of basic servi
ed in its visio f a Performa osition to deli
ed yielded po udit report, g in public adm strative and f s as administ
dhere to the to economic
of the comm eople and co ng platforms achievements ur community nicipal service
staff for thei
he Council vis tal municipa ices, social,
on which is in nce Manage iver on its
ositive results given to the ministration, financial sta tration to ens
e principles of growth, the munity we ser ommunities f to achieving s and draw le y and stakeh es is promot
ir contributio sion ality
nformed ement
s, we quality
we can ability.
sure that
f good rve.
first, and g more
essons holders,
ed by
ons in
PURPOSE OF THE ANNUAL REPORT
According to Section 121 (2) of the Municipal Finance Management Act (MFMA), read with MFMA Circular No 32, the purpose of an annual report of a municipality is to:
Provide a record of activities of the Municipality;
Provide information that supports the revenue and expenditure decisions;
Provide a report on performance in service delivery against Budget; and
Promote accountability to the Local community for the decisions made throughout the year by the Municipality.
2.2. Overview of the Municipality Geographical Location
Magareng Municipality is situated in the Northern Cape Province and lies within the boundaries of the Frances Baard District Municipality. It constitutes one of five local municipal areas within the district and accommodates almost 7% of the district population (Census 2001).
Warrenton, the administrative centre of Magareng Municipality, is situated approximately 75 km north of Kimberley on the banks of the Vaal River. The N12 national road between Kimberley and Christiana as well as the N18 route to Vryburg passes through the centre of Warrenton. The Railway line, that connects Gauteng with the Northern and Western Cape Province, runs through Magareng Municipality with a railway station at Warrenton and Windsorton station. The railway line also connects the Northern Cape and North West Province.
The area of jurisdiction is approximately 1542 km² in extent and accommodates approximately 20,433 people (Community survey 2007). 72% of the total population is Black, 17, 5% Coloured while the White population represents only 10% of the total population. The Indian and Asian population is insignificantly small to impact on the proportional representation.
Socio-Economic Perspective
The total surface area of Magareng accounts for 0.43% of the province and 12.5% of the district. The population represents 6.7 % and 2.64 % of the total population of the district and the province respectively [Magareng IDP, June 2007]. 72% of the total Population is Black, 17.5% is Coloured while White Population represents only 10% of the total population. The Indian and Asian population is insignificantly small to impact on the proportional representation.
The municipal area is divided into 5 wards. Wards 1 to 3 constitute Ikhutseng, the former Black residential area, while Warrenvale, the former Coloured residential area constitutes Ward 4. Ward 5 is made up of Warrenton Town, which was previously a predominant White area, and the surrounding rural areas. The sizes of the wards range from 0.3177 km² and 1515.9 km².
Demographic Profile
The purpose of this section is to analyse key trends in the various demographic characteristics in the Magareng local municipality. For this municipal area trends in the following will be analysed:
• Population size
• Population growth
• Population density
• Number of households
• Urbanization rate
Population Size
Figure 2 below depicts changes in the population size in the Magareng local municipality since 1996.
It can be seen that the population size increased from 24 873 in 1995 to 27 096 in 2006. In all, the number of people residing in the Magareng local municipal area increased by 2 223 people from 1996
to 2006. The average annual increase in the number of people in the Magareng local municipality was 0.9%, which is below the population growth rate in South Africa over the same period.
Figure 2: Population size in the Magareng local municipality
Source of data: Global Insight Southern Africa, Regional Economic Explorer, 2007)
Table 1 below shows the Census 2001 Grown Population - an estimated current population based on Census 2001 population and grown annually with StatsSA population growth formulae;
and the Census 2001 Grown Households - an estimated household growth based on StatsSA household estimates between 2004 and 2005.
With Census 2001 population figures as a base, a projected estimated population into the future (April 2007) and the past (April 1994) was grown with Stats SA population growth formulae.
Table 1: Population time series for the Magareng local municipality per Water Services Data
Financial Year Census 2001 Grown Population
% of Provincial Population
Census 2001 Grown Households
% of Provincial HH
April 1994 22,450 2.22 6,207.00 2.37
April 1995 22,356 2.22 6,182.00 2.36
April 1996 22,261 2.21 6,156.00 2.35
April 1997 22,167 2.20 6,130.00 2.35
April 1998 22,073 2.20 6,103.00 2.34
April 1999 21,980 2.19 6,077.00 2.34
April 2000 21,887 2.18 6,051.00 2.33
April 2001 21,795 2.18 6,028.00 2.32
23,500 24,000 24,500 25,000 25,500 26,000 26,500 27,000 27,500
19961997199819992000200120022003200420052006
Population size in the Magareng Local Municipality:
Total (Number)
2 per. Mov. Avg. (Population size in the Magareng Local Municipality: Total (Number))
April 2002 21,666 2.17 5,990.00 2.31
April 2003 21,598 2.16 5,971.00 2.31
April 2004 21,508 2.16 5,947.00 2.30
April 2005 21,366 2.14 5,909.00 2.28
April 2006 21,503 2.14 5,946.00 2.28
April 2007 21,631 2.14 5,982.00 2.28
Table 2 below shows a summary of the level of services available in the Magareng local municipality, as well as in the Northern Cape and National totals.
Population Growth
The population growth rate in the Magareng local municipality declined significantly from 1.13% in 1997 to 0.5% in 2006. A possible reason for this might be due to the increase in the HIV incidence rate in this area over the period. Figure 3 below shows the decline in the population growth rate over the period. The average annual population growth rate in the Magareng local municipality from 1997 to 2006 was 0.9%
Provi
nce DM LM Settlem ents
Total Popula tion
Total Househ olds
Total Below RDP Water
No Formal Water Infrastru cture
Total Below RDP Sanitat ion
Bucket latrine Popula tion
Total Below RDP Water Househ olds
No Formal Water Infrastru cture Househo lds
Total Below RDP Sanitati on Househ olds
Bucket latrine Househ olds
North ern Cape
FB DM DC 9
Diamond fields - NCDMA0 9
3 4,512 1,501 0 0 0 0
North ern Cape
FB DM DC 9
Magaren g Local Municipal ity - NC093
4 21,631 5,981 1,823 504 2,921 0 504 139 808 0
North ern Cape Total
605 1,012,5
17 262,404 97,50
5 31,813 242,05
4 25,944 24,244 8,000 61,458 6,678
Natio nal Total
25,752 48,897, 554
12,877, 821
6,968, 757
2,876,68 2
14,329, 889
411,97 9
1,649,3
12 646,914 3,525,7 91 112,766
Figure 3: Population growth rate in the Magareng local municipality
(Source of data: Global Insight Southern Africa, Regional Economic Explorer, 2007 Population Density
Figure 4 below depicts changes in the population density in the Magareng local municipality since 1996. It can be seen that the number of people per km2 increased from 16.72 in 1996 to 18.21 in 2006. In all, the number of people per km2 residing in the Magareng municipal area increased by 1.49 people per km2 from 1996 to 2006. The average number of people per km2 in the Magareng local municipality over the period was 17.54.
Figure 4: Population density in the Magareng local municipality
15.50 16.00 16.50 17.00 17.50 18.00 18.50
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Population density (number of people per km²) in the Magareng Local Municipality
2 per. Mov. Avg. (Population density (number of people per km²) in the Magareng Local Municipality)
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Population growth in the Magareng Local Municipality:
Percentage (%)
2 per. Mov. Avg. (Population growth in the Magareng Local Municipality: Percentage (%))
Number of Households
Figure 5 below depicts changes in the number of households in the Magareng local municipality since 1996. It can be seen that the number of households increased from 5 876 in 1996 to 7 636 in 2006. In all, the number of households in the Magareng municipal area increased by 1 760 households from 1996 to 2006. The average number of households in the Magareng local municipality over the period was 6 867.
Figure 5: Number of households in the Magareng local municipality
(Source of data: Global Insight Southern Africa, Regional Economic Explorer, 2007) Urbanization Rate1
Figure 6 below depicts changes in the urbanisation rate in the Magareng local municipality since 1996. It can be seen that the percentage of people living in urban areas increased steadily from 93.7% in 1996 to 95.8% in 2000. From 2000 to 2002 the urbanisation rate shot up to 98.08% after which it decreased steadily to 97.6% in 2006. In all, the percentage of people living in urban areas in the Magareng local municipal area increased by 3.89% over the period. The average urbanisation rate in the Magareng local municipality over the period was 96.36%.
Figure 6: Urbanisation rate in the Magareng Local Municipality
1 The urbanisation rate is the proportion of people living in urban areas.
0.00 1000.00 2000.00 3000.00 4000.00 5000.00 6000.00 7000.00 8000.00 9000.00
19961997199819992000200120022003200420052006
Households (Number) in the Magareng Local Municipality:
Total (Number)
2 per. Mov. Avg. (Households (Number) in the Magareng Local Municipality: Total (Number))
(Source of data: Global Insight Southern Africa, Regional Economic Explorer, 2007)
Labour Profile
The purpose of this section is to analyse key trends in the various labour characteristics in the Magareng local municipality. For this municipal area trends in the following will be analysed:
• Unemployment2: number and rate
• Informal sector employment
• Employment in the formal sector per sector
• Educational profile Unemployment: Number and Rate
Figure 7 below depicts changes in the number of unemployed people in the Magareng local municipality since 1996. It can be seen that the number of unemployed people increased from 2 728 in 1996 to 4 818 in 2006. In all, the number of unemployed people in the Magareng municipal area increased by 2 091 over the period. The average number of unemployed people over the period was 4 036.
Figure 7: Number of unemployed people in the Magareng local municipality
91.00%
92.00%
93.00%
94.00%
95.00%
96.00%
97.00%
98.00%
99.00%
19961997199819992000200120022003200420052006
Urbanization rate (% of people living in urban areas) in the Magareng Local Municipality
2 per. Mov. Avg. (Urbanization rate (% of people living in urban areas) in the Magareng Local Municipality)
(Source of data: Global Insight Southern Africa, Regional Economic Explorer, 2007)
Figure 8 below depicts changes in the unemployment rate (%) in the Magareng local municipality since 1996. It can be seen that the unemployment rate increased from 38.04% in 1996 to 51.62% in 2004. However, from 2004 to 2006 there has been a steady decline in the unemployment rate of 2.07%. In all, the unemployment rate in the Magareng municipal area increased by 11.51% over the period. The average unemployment rate over the period was 46.25%.
Figure 8: Unemployment rate (%) in the Magareng local municipality
(Source of data: Global Insight Southern Africa, Regional Economic Explorer, 2007) Informal Sector Employment
The pie chart in figure 9 below depicts the percentage of people employed in the various informal sectors in 2006 in the Magareng local municipality. It can be seen from figure 9 below that informal sector employment is the largest in the trade sector (51%), followed by 26% in community services,
0.00 1000.00 2000.00 3000.00 4000.00 5000.00 6000.00
19961997199819992000200120022003200420055006
Number of unemployed people
2 per. Mov. Avg. (Number of unemployed people)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Unemployment rate (%)
2 per. Mov. Avg.
(Unemployment rate (%))
7% in that emplo
Figure 9
(Source
Figure 1
n manufactur trade and c oyment in the
9: Informal s
of data: Glo Figure 10 b sector in th people empl from 2001 t which it incr people emp over the per period was 2
10: Total num
Finance 7%
Community se 26%
ring, transpo community s e Magareng
sector empl
obal Insight S below depicts
e Magareng loyed in the to 2004 the reased to 36 ployed in the riod. The ave 276.
mber of peop
Transport 7%
e ervices
ort and finan services are
local municip
loyment in t
Southern Afri s changes i g local muni informal sec number of e 64 in 2006 (a e informal se erage total nu
ple employed
Manufacturing 7%
ce, and 2%
e the two s ipality.
the Magaren
ca, Regional in the total n
cipality since ctor increase
employed pe an increase ector in the umber of peo
d in the inform
Construction 2%
in construct sectors whic
ng local mun
l Economic E number of p e 1996. It c d from 144 i eople in the of 72 from 2 Magareng m ople employ
mal sector in
Trade 51%
tion in 2006.
ch provide
nicipality for
Explorer, 200 people empl can be seen in 1996 to 34
informal se 2004). In all, municipal are yed in the info
n the Magare
e
The graph s the largest
r 2006
07)
loyed in the n that the nu 47 in 2001. H ector fell by
l, the total nu ea increased ormal sector
eng local mun
suggests informal
informal umber of However,
55, after umber of d by 220 r over the
nicipality
(Source Employ The p 2006 the la 6% in electr secto
Figur
(Source of d
of data: Glo yment per Se
pie chart in fi in the Maga argest in the n constructio ricity in 2006 ors which pro
re 11: Forma
data: Global Insight 0 50 100 150 200 250 300 350 400
199619
Tra 11 Transport
5%
Finance 4%
obal Insight S ector in the figure 11 belo
areng local m agriculture s on, 5% in tran 6. The graph ovide the larg
al employmen
Southern Africa, R 997199819992000
Electric 1%
Construction 6%
ade 1%
e
Southern Afri Formal Sec ow depicts th municipality.
sector (38%) nsport, 4% i suggests tha gest formal e
nt per sector
egional Economic E 02001200220032
Mining 2%
Manufacturing 3%
city
Community serv 30%
ca, Regional ctor
he percentag It can be se ), followed b in finance, 3 at agriculture
mployment i
r in the Maga
Explorer, 2007) 00420052006
g vices
l Economic E
ge of people een from figu by 30% in co
% in manufa e, community in the Magar
areng local m
Number informal
2 per. Mo people in
Explorer, 200
employed in ure 11 below ommunity se acturing, 2%
y services an reng local mu
municipality fo
of employed people sector
ov. Avg. (Number o n the informal secto
Agriculture 38%
07)
n the formal w that emplo rvices, 11%
in mining an nd trade are unicipality.
for 2006
e in the
of employed r)
sector in oyment is in trade, nd 1% in the three
Figure 12 below depicts changes in the total employment in the Magareng local municipality since 1996. It can be seen that total formal employment increased from 4 240 in 1996 to 4 504 in 2003. However, from 2003 to 2004 total employment decreased from 4 504 in 2003 to 4 369 in 2004, indicating a loss of 135 jobs (which might be attributed to losses in agriculture employment due to draught over the period). In all, total employment in the Magareng municipal area increased by 192 over the period. The average total employment over the period was 4 343.
Figure 12: Growth in total formal employment in the Magareng local municipality
(Source of data: Global Insight Southern Africa, Regional Economic Explorer, 2007)
Figure 13 below shows the growth in employment in the Magareng local municipality since 1999. It can be seen that robust and negative growth was experienced, with annual growth rates averaging 0.5% over the period. Over the last three years growth did decrease to -0.3% per annum.
Increasing labour cost (including wages) may be one of the factors that contributed to the slower growth in employment in the Magareng local municipality in 2004 to 2006.
Figure 13: Employment growth in the Magareng Local Municipality
4,000 4,050 4,100 4,150 4,200 4,250 4,300 4,350 4,400 4,450 4,500 4,550
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Total number of employed people per sector 2 per. Mov. Avg. (Total number of employed people per sector)
(Source
Educa
The in of the of the those popul educa very l overa high f Figure 14
of data: Glo
ation Profile
nformation d e population e adult popu e who only co
lation who ha ation by 6%.
low with less all low literac future econo 4a: Education
obal Insight S
depicted in F of the Maga ulation (older ompleted so ave complete . Although th s than 4% of cy level in th mic growth r Profile
Southern Afri
Figure 14a in areng local m
r than 20 ye me primary ed Grade 12 hese figures f the total adu he municipal rates in the a
ca, Regional
ndicates a sli municipality o
ars of age) education in 2 increased b indicate a p ult population lity will impa area.
l Economic E
ight improvem over the peri
with no scho creased by by approxima positive trend n with some act on the ab
Explorer, 200
ment in the iod 1996 to 2 ooling decre 1.3%. The p ately 70.5% a d, the overal
form of tertia bility of the e
07)
overall litera 2001. The p eased by 16.
roportion of and those wi ll skills levels ary qualificat economy to
acy levels roportion .5%, and the adult ith higher s are still tion. This maintain
No Schooling
Some Primary
Complete
Primary Secondary Grade 12 Higher
1996 3556 2702 908 3436 1006 319
2001 2970 2736 1001 3558 1715 338
0 500 1000 1500 2000 2500 3000 3500 4000
1996 2001
No Schooling
Some Primary
Complete
Primary Secondary Grade 12 Higher
1996 3556 2702 908 3436 1006 319
2001 2970 2736 1001 3558 1715 338
0 500 1000 1500 2000 2500 3000 3500 4000
1996 2001
(Source of data: Municipal Demarcation Board, 2001)
The pie chart in figure 14b below provides an aggregated picture of education in the Magareng local municipality. It can be seen from table 3 and figure 14b below that, in 2001, 24% of the population in the Magareng local municipality have received no formal education, 29% have some secondary schooling, 22% have some primary schooling, 14% have grade 12 and only 3% have completed their primary and higher education. The graph suggests that almost a quarter of the population in the Magareng local municipality is uneducated or has received no formal education.
Table 3: Education Grouped
Persons 1996 2001
No Schooling 3556 2970 Some Primary 2702 2736 Complete Primary 908 1001
Secondary 3436 3558
Grade 12 1006 1715
Higher 319 338
(Source of data: Municipal Demarcation Board, 2001) Figure 14b: Education Grouped
(Source The p educa that, i are e graph are en Figure
(Source
29%29
of data: Mun pie chart in f ational institu
in 2001, 66%
nrolled at pr h suggests th
nrolled at ed 15: Educati
of data: Mun 9%
14%
%
14%
nicipal Dema figure 15 be utions in the
% of the popu re-school ins
hat approxim ducational ins ion Institutio
nicipal Dema 8%
3%
8%
3%
arcation Boar elow provide e Magareng ulation in the titutions, and mately two th
stitutions.
on
arcation Boar 24%
22%
24%
22%
rd, 2001) s a picture o
local munici e Magareng d 31% are no hirds of the p
rd, 2001)
%
of the numbe ipality. It can local municip ot enrolled a population in
No Schooling Some Primary Complete Pri Secondary Grade 12 Higher No Schooling Some Primary Complete Prim Secondary Grade 12 Higher
er of people n be seen fr pality are en at any educa n the Magare g y imary y mary
currently en rom the figu
rolled at sch ational institu eng local mu
nrolled at ure below hools, 3%
ution. The unicipality
Economic Profile
This section provides an overview of the economic structure and productive base of the Magareng local municipality. For this municipal area trends in the following will be analysed:
• Size of the economy in terms of GVA
• Economic growth
• Growth in profits in the Magareng Local Municipality
• Structure of the economy
• Location quotients
Size Of The Economy In Terms Of Gva (Production)
The Gross Value Added (GVA) of the Magareng local municipality as measured in constant prices is depicted in Figure 16a below. This information indicates that the total value of all products and services produced within the boundaries of the Magareng local municipality increased from around R167 439 in 1996 to R199 430 in 2006. It is also clearly evident from these figures that the local economy of the Magareng local municipality has been growing moderately and the challenge is to consolidate and maximize these gains for prosperity. In all, the GVA in the Magareng municipal area increased by R31 937 over the period. The average GVA over the period was R176 746.
Figure 16a: GVA at constant prices in the Magareng local municipality (constant 2000 prices, R1000)
(Source of data: Global Insight Southern Africa, Regional Economic Explorer, 2007)
The information outlined above is further illuminated by Figure 16b which indicates that the contribution of the Francis Baard district economy as a proportion of the total Northern Cape
0 50000 100000 150000 200000 250000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Gross Value Added at basic values (R1000, constant 2000 prices)
2 per. Mov. Avg. (Gross Value Added at basic values (R1000, constant 2000 prices))
the Fra compa Figure 1 Cape Pr
(Source Figur 1999.
avera annum Figure 1
ances Baard ared to other 16b: District rovince
of data: Glo re 17 below . It can be s aging 5.4% o m. This decr 17: Growth in
DC6: N DC7: K DC8: S DC9: F CBDC
d district eco district muni GVA at Con
obal Insight S depicts the seen that rob over the perio rease is in co n GVA at cur
Namakwa District Municipa Karoo District Municipality Siyanda District Municipalit Frances Baard District Mun 1: Kgalagadi District Munic 1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0
onomy has b cipal econom nstant Prices
Southern Afri annual grow bust and pos od. Over the ontrast with th rrent prices i
1996 1997 ality 1,998,2932,034,25
1,795,3971,823,55 ty 4,242,6234,206,83 nicipality 5,022,0305,309,07 ipality 2,052,4052,044,53
0 00,000 00,000 00,000 00,000 00,000 00,000 00,000 00,000
become sign mies.
(R1000, con
ca, Regional wth rates in G
sitive growth last three ye he national t in the Magar
1998 1999 20
531,990,0662,026,9242,090 561,786,7951,815,8511,941 384,337,6964,487,6714,646 745,243,3165,543,2395,848 322,110,1912,038,8352,021
nificantly mo
nstant 2000 p
l Economic E GVA in the M h was experi
ears growth trend of 11.7 reng local mu
00 2001 2002
0,1162,119,0242,083,7212,1 1,5431,926,8201,998,6701,9 6,3204,704,7474,837,9775,0 8,8925,980,9506,233,4366,3 1,3301,917,2312,124,4862,1
ore dominant
prices) as po
Explorer, 200 Magareng loc ienced, with did decrease
%.
unicipality
2003 2004 2005
135,6812,203,2162,279,734 955,5861,985,8432,048,744 026,9985,386,0655,798,513 377,9176,697,1647,053,354 120,4822,244,3582,472,800
t within the
ortion of the
07)
cal municipa annual grow e slightly to 4
2006 42,270,692 42,055,431 35,683,861 47,222,787 02,475,238
province
Northern
ality since wth rates 4.4% per
(Source 3.1.1 The ye 2006 is growth experie growth Figure
(Source 3.1.2 Figure secto all se avera Figure
of data: Glo ECONOM ear on year e
s depicted i rate has be enced, with did slow to 4 18: Growth
of data: Glo GROWT e 19 below d ors) since 199 ectors, avera age for all sec
19: Growth
obal Insight S MIC GROWT economic gro n Figure 18 en fluctuatin annual grow 4.3% per an
in GDP at c
obal Insight S TH IN PROF depicts the g 99. It can be ging growth ctors in Sout in profitabil
Southern Afri TH
owth rate for 8 below. Thi
g over this p wth rates ave
num. This sl constant pri
Southern Afri ITS IN THE growth in pro e seen that si
of 6.8% per th Africa as a lity in the M
ca, Regional
the Magare s informatio period. It can eraging 5.1%
owdown is in rices
ca, Regional MAGARENG ofits (as mea ince 2000 th r annum betw a whole.
Magareng loc
l Economic E
ng Local Mu n indicates n be seen tha
% over the p n line with the
l Economic E G LOCAL M asured by to ere has bee ween 1999 a
cal municip
Explorer, 200
unicipality ov that the yea at robust and period. Over
e national tre
Explorer, 200 UNICIPALIT otal gross op n good grow and 2006. Th
ality
07)
er the period ar on year e d positive gro the last thre end.
07) TY
perating surp wth in profits his is below
d 1999 to economic owth was ee years
plus of all (GOS) in the 11%
(Source Structu
The pie each s to GDP 14% a govern commu Magare Figure 2
of data: Glo re Of The Ec e chart in figu ectors contri P are from c and 10% by nment and fin unication se eng local mu 20: Structure
Com serv 31%
obal Insight S conomy ure 20 below ibution to GD community s
y wholesale nancial servi rvices are t unicipality.
e of the Maga
ices Gen gov services
8%
Southern Afri
w depicts the DP. It can be services (31%
e and agricu ices, wholes the two sec
areng econo
Agriculture 10%
ca, Regional
structure of e seen from t
%), followed ulture respe ale, transpor ctors which
my accordin
Mining 9%
FISIM 6%
l Economic E
the Magaren the figure be
by transpor ectively in 2 rt and comm are the larg
g to sectoral
Manufacturing 2% Electr & w
2%
Transp & c 15%
Explorer, 200
ng economy elow that the rt and comm 2006. The g munity service gest contribu
l contribution
water
Construction 3%
Wholesale 14%
com
07)
in 2006 acc largest cont munication (1 graph sugge
es and trans utors to GD
ns to GDP
cording to tributions 5%) and ests that sport and
P in the
(Source Locatio
The p munic A pro comp provin It can the M 13%
servic comp
(Source Poverty
The purp in the M
3 See APPEND 4 See APPEND
of data: Glo n Quotients pie chart in cipality. The ovincial or m parative adva
ncial econom n be seen fro Magareng loc in transport ces, and tran parative adva
Figure 21: L
of data: Glo y And Incom
rpose of this Magareng loca
DIX D for definition
DIX D for definition
C Trade
9%
Tran 13
obal Insight S s
figure 21 be location quo magisterial e antage (disad my is greater
om the figure cal municipal
and 12% in nsport are th antage.
Location quo
obal Insight S me Profile
section is to al municipali
•
•
•
•
Electricity 8%
Construction 8%
nsport 3%
Finance 3%
Southern Afri
elow depicts otient is an in economy has
dvantage) in r (less) than t e below that lity are agric
mining in 2 he three sec
otient in the M
Southern Afri
analyse key ity. For this m Number of p Poverty rate Per capita in Crime
Manufacturing 1%
y
ca, Regional
s the location ndication of th s a location a particular the share of
the sectors culture (32%) 2006. The fig ctors in whic
Magareng loc
ca, Regional
y trends in th municipal are persons in po e3
ncomes4
Mining 12%
Community services 14%
l Economic E
n quotient in he comparat
quotient lar sector when f the same se
with the larg ), followed by gure suggest ch the Maga
cal municipal
l Economic E
he various po ea trends in t
overty
Agriculture 32%
Explorer, 200
n 2006 in th tive advantag
rger (smalle n the share o ector in the n gest compara y 14% in co ts that agric areng local m
lity
Explorer, 200
overty and in the following
e
07)
e Magareng ge of an econ
r) than one, f that sector national econ ative advanta mmunity ser ulture, comm municipality
07)
ncome chara will be analy
g local nomy.
, or a in the nomy.
age in rvices, munity has a
acteristics ysed:
Figure 22 below depicts changes in the number of people living in poverty in the Magareng local municipality since 1996. It can be seen that the number of people living in poverty increased from 13 075 in 1996 to 19 377 in 2006.
In all, the number of people living in poverty in the Magareng municipal area increased by 6 301 over the period. The average number of people living in poverty over the period was 17 940.
Figure 22: Number of people in poverty in the Magareng local municipality
(Source of data: Global Insight Southern Africa, Regional Economic Explorer, 2007) Poverty Rate
Figure 23 below depicts changes in the poverty rate in the Magareng local municipality since 1996. It can be seen that the poverty rate increased from 52.6% in 1996 to 74.3% in 2001 after which it decreased to 72.4% in 2003. From 2003 to 2005 the poverty rate increased to 75.2%. In 2006, the poverty rate dropped to 71.5%. In all, the poverty rate in the Magareng municipal area increased by 18.9% over the period. The average poverty rate over the period was 68.1%.
Figure 23: Poverty rate in the Magareng local municipality
0 5,000 10,000 15,000 20,000 25,000
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 206
Number of people in poverty
2 per. Mov. Avg. (Number of people in poverty)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Percentage of people in poverty
2 per. Mov. Avg. (Percentage of people in poverty)
(Source of data: Global Insight Southern Africa, Regional Economic Explorer, 2007) Per Capita Incomes
Figure 24: Per capita income in the Magareng local municipality
(Source of data: Global Insight Southern Africa, Regional Economic Explorer, 2007)
Figure 25 below shows the growth in aggregate wages for all sectors in the Magareng local municipality since 1999. It can be seen that wage increases have generally been above the rate of inflation. Moreover, it can be seen that robust and positive growth was experienced, with annual growth rates averaging 8.3% over the period. Over the last three years growth did slow down to 7.5%
per annum. This decrease is in contrast with the national trend of 9.4%.
Figure 25: Growth in total labour compensation in the Magareng local municipality
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000
19961997199819992000200120022003200420052006
Annual per capita income (Rand, current prices)
2 per. Mov. Avg. (Annual per capita income (Rand, current prices))
(Source
Crime In Global I crime ov This ind (SAPS), crimes h namely econom eXplorer Figure 2 municipa crime) d 2001 to of 27.99 significa per 100
5 "Region
of data: Glo
ndex nsight has c ver time and dex is based and in a nu higher than le the public ic costs of r, 2007).
26 below de ality since 19 decreased fro 2004 saw a 9 in 2005. In ant decrease
000 people.
n" refers to reg
obal Insight S
compiled a C compare cri d on the offi utshell appli ess serious c
perception o an incident
picts the we 996. It can b om 317.05 p n increase in all, overall cr in the overa
gions within S
Southern Afri
Composite Cr me across re cial reported es weights t crimes. The w of sentencin
in each cri
eighted avera be seen that per 100 000 n overall crim
rime per 100 all crime leve
outh Africa, su
ca, Regional
rime Index fo egions5. d crime stati
to the differe weights for t ng for the d
me category
age of crime t the overall
people in 1 me per 100 0 0 000 people el. The avera
uch as munici
l Economic E
or South Afr
istics from t ent crime ca
he index we different crim
y (Global In
e per 100 00 level of crim 1996 to 236.
000 people o dropped by age rate of c
palities and pr
Explorer, 200
rica that can
he South Af ategories, we re derived by me categorie nsight South
00 people in me (including 59 per 100 of 26.27, follo 82.18 over t crime over th
rovinces, for e 07)
be used to
frican Police eighing more
y using two m es, and the
ern Africa,
n the Magare violent and 000 people owed by a sl
the period, w he period wa
example.
compare
e Service e serious methods, average Regional
eng local property in 2001.
ight drop which is a as 275.44
Figure 26: Global Insight Overall Crime Index - Weighted average of Crime / 100,000 people in the Magareng local municipality
(Source of data: Global Insight Southern Africa, Regional Economic Explorer,
Tourism Profile
Tourism in the Magareng local municipality is a developing industry. Transport (32%), Accommodation (32%) and the Food industry (25%) are the dominant tourism sectors in the Northern Cape Province as recorded in 2001. Entertainment and Gifts contribute only 1% and 1% respectively.
In total, tourism in the Northern Cape Province contributes only 1.4% to the overall tourism in South Africa and is also the smallest contributor of all nine provinces.
Table 24: Percentage spending by tourists (domestic & foreign) on leisure/holiday, 2004
Province Transport Accommodation Food Entertainment Gifts R Million Weights
Eastern Cape 34 30 20 13 3 809 12.5%
Free state 48 24 21 6 1 106 1.6%
Gauteng 37 23 26 10 4 490 7.6%
KZ natal 26 32 26 10 6 2130 32.9%
Mpumalanga 33 30 29 5 3 358 5.5%
Northern Cape 32 32 24 7 5 91 1.4%
Northern province 31 40 25 3 1 272 4.2%
North-West 66 18 10 4 2 251 3.9%
West-Cape 32 29 26 9 4 1976 30.5%
RSA 32.2 29.7 24.6 9.2 4.2 6483 100%
(Source of data: South African Domestic Tourism Survey: Marketing the Provinces Report compiled by the Human Sciences Research Council for South African Tourism, August 2001)
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Global Insight Crime Indices ‐
Weighted average of Crime / 100,000 people
317.05284.99318.32303.61274.52236.59257.05264.54262.86234.88 0.00
50.00 100.00 150.00 200.00 250.00 300.00 350.00
Global Insight Crime Indices ‐ Weighted average of Crime / 100,000 people 2 per. Mov. Avg. (Global Insight Crime Indices ‐ Weighted average of Crime / 100,000 people)
From the information above, it can be deduced that the Magareng Local Municipality is but a small contributor to the Northern Cape economy. The average person in the Magareng local municipality is slightly worse off than the average South African person if measured in terms per capita incomes. As is the case with most of the other local municipalities in South Africa, the Magareng Local Municipality is marred by high poverty rates, inequalities in the distribution of income between various population subgroups, and unemployment. Poverty and unemployment in South Africa are often rural phenomena, and given that many of the inhabitants in this local municipality reside in rural areas, both poverty and unemployment are quite high.
1.4 Vision, Mission and Values
- The starting point for any strategic approach is a challenging and commonly owned visio