Cdm Gds Profile

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DISTRICT SOCIO ECONOMIC PROFILE GROWTH & DEVELOPMENT SUMMIT 2007

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Transcript of Cdm Gds Profile

D I S T R I C T S O C I O E C O N O M I C P RO F I L E

G ROW T H & D EV E LO P M E N T S U M M I T 2007

C O N T E N TS

I N T RO D U C T I O N · · · · · · · · · · · · · · · · · · · · · · 4

Aims of the Summit · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 4

Aims of this document · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 5

Methodology· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 5

D I S T R I C T S N A P S H OT · · · · · · · · · · · · · · · · · · · 6

S O C I O E C O N O M I C I N F R A S T RU C T U R E · · · · · 10

Delivery of Basic Services · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 10

WATER· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 10

SANITATION · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 11

WATER AND SANITATION BACKLOGS · · · · · · · · · · · · · · · · 13

ELEC TRICIT Y · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 14

HOUSING · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 15

Build and maintain infrastructure · · · · · · · · · · · · · · · · · · · · · · · · 16

PROVINCIAL DEPAR TMENT

INFRASTRUC TURE EXPENDITURE PLANS · · · · · · · · · · · · · 16

PROVINCIAL GOVERNMENT INFRASTRUC TURE

EXPENDITURE: CONCLUSIONS · · · · · · · · · · · · · · · · · · · · · · 19

MUNICIPAL INFRASTRUC TURE GRANT (MIG) · · · · · · · · · · 19

STRATEGIC INFRASTRUC TURE PROJEC TS · · · · · · · · · · · · · 20

S E C TO R D EV E LO P M E N T · · · · · · · · · · · · · · · 22

Job Creation and Livelihoods · · · · · · · · · · · · · · · · · · · · · · · · · · · · 22

AGRICULTURE · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 22

T IMBER · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 23

MANUFAC TURING · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 24

CONSTRUC TION · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 24

TRADE AND BUSINESS SER VICES/IC T · · · · · · · · · · · · · · · · 24

TOURISM · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 25

MINING · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 27

H R & S K I L L S D EV E LO P M E N T · · · · · · · · · · · · 28

Skills Upgrade · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 28

I N S T I T U T I O N A L D EV E LO P M E N T · · · · · · · · · 30

Improve Public Services · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 30

Health · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 32

Health services delivery · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 33

Education · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 34

HIV & AIDS · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 35

Developing Municipal Capacity and Co-operation · · · · · · · · 37

ALIGNMENT AND COOPERATION · · · · · · · · · · · · · · · · · · · 37

GAPS IN THE 2006-07 IDP · · · · · · · · · · · · · · · · · · · · · · · · · 37

SUPPOR T BY DEPAR TMENT OF PROVINCIAL

AND LOCAL GOVERNMENT (DPLG) AND GTZ · · · · · · · · · 37

SUPPOR T TO LOCAL MUNICIPALIT IES · · · · · · · · · · · · · · · 38

MUNICIPAL COOPERATION · · · · · · · · · · · · · · · · · · · · · · · · 38

R E G I O N A L L I N K AG E S · · · · · · · · · · · · · · · · · · 40

Agreement with the Cape Winelands DM · · · · · · · · · · · · · · · · 40

Agreement with the NMBMM · · · · · · · · · · · · · · · · · · · · · · · · · · · 40

P OV E RT Y P RO F I L E · · · · · · · · · · · · · · · · · · · · 42

Human Development Index (HDI) · · · · · · · · · · · · · · · · · · · · · · · 42

Persons Living in Poverty · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 42

Social grant dependency · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 43

C O N C LU S I O N S · · · · · · · · · · · · · · · · · · · · · · · 44

AC RO N Y M S · · · · · · · · · · · · · · · · · · · · · · · · · 46

G D S AG R E E M E N T · · · · · · · · · · · · · · · · · · · · · 48

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A I M S O F T H E S U M M I T

The aim of the GDS is to reach broad agreement on:

� a development path and programme for the district;

� what each social partner (government, business, labour and

community sector) should contribute to the implementation of

the programme;

� Strengthening the strategic thrust of the district IDP to ensure

planning and implementation alignment between the spheres

of government, as well as public entities.

In this regard the GDS should seek to address the following

specific questions and issues:

1. The Cacadu district’s economic potential and which sectors

of the economy should be promoted (this would need, where

applicable, to be informed by the IDP, LED and the RIDS)

2. Commitments by government, business, labour and

community sector to ensure investment in each of the

sectors

3. Actions required by government and each partner to deal

with constraints to such investments, including dealing with

bureaucratic delays, EIA processes and land use management

Building on the results of the National Growth and Development

Summit in June 2003, government proposed that all District

and Metropolitan Municipalities hold Growth and Development

Summits (GDS) in their area of jurisdiction.

The summits should provide opportunities for building

partnerships with social partners by bringing together

representatives from the broadest sections of society: labour,

business, community sector and government (local, province

and national).

Government has identified district and metropolitan areas as the

pivotal sites on which to build an understanding of the nature

and distribution of regional economic potential across the

country.

Collaborative action between government and social partners

across all the three spheres is vital in forging a common vision for

promoting rising levels of growth, investment, job creation, and

people-centred development

I N T RO D U C T I O N

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A I M S O F T H I S D O C U M E N T

1. To ensure that discussion on the above issues takes place on

an informed basis

2. To present a coherent picture of the social, demographic, and

economic profile and service levels of the area

3. To present a picture of the challenges facing local government

especially in relation to capacity

4. To suggest the mechanisms & processes for monitoring progress

on the decisions reached and the governance framework for

ongoing dialogue and feedback among social partners.

The district GDS presents a unique opportunity for constructing

partnerships and harnessing the collective energies and

contributions of a range of actors and role players with a view to

enhancing accelerated and shared growth.

The district GDS has the potential to unlock the potential of all

localities, and ensure that all sectors of society identify their role

and contribute to the common national objective to build a

better life for all.

M E T H O D O LO G Y

This profile for Cacadu District is based on a number of documents

and information from a range of sources. These broadly include

the following:

� ECSECC data, publications and reports

� District and local municipal IDPs

� Cacadu’s EGDS (Economic Growth and Development Strategy)

� Data from the Rapid Assessment of services in the Eastern Cape

conducted in 2006)

� Data from Cacadu’s Situational analysis and Development of a

Strategy to Address Backlogs in Water and Sanitation Services in

the Cacadu Region (2005)

� Various research reports

4. Social and economic infrastructure programmes required

to improve investments and provide basic services to

communities

5. Contribution by each partner to the construction of such

infrastructure, including the possibility of PPP

6. Second Economy interventions (EPWP including roads & ECD,

co-operatives, micro-credit, procurement, land reform, etc)

and the role of each sector in such interventions

7. Promoting local procurement – what interventions are

required

8. Improving capacity of local government and contribution

of each social partner: including role of public sector unions

in ensuring efficiency, role of all in fighting corruption,

contribution by private sector and professionals to skills

required by the district/metro

9. Establishing partnerships and/or regional growth coalitions

which will act as a mechanism for cooperative action at all

levels and a robust framework for monitoring and evaluating

progress

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and is the largest employer in the District, accounting for about

38% of all jobs. The GDP per capita of the District is higher than

the provincial average, and the unemployment rate is lower than

the Metro’s (35% against the Metro’s 40%). There is evidence of

above average economic growth in recent years. Although the

District’s poverty rate is less than the provincial average, it still

stands at 48%, and there is outward migration to the Metro and

elsewhere.

There is evidence that the agricultural sector has been shedding

jobs in recent years, due both to small-stock farmers switching

to game-farming, and to the non-availability of land for new

emerging farmers. There is also evidence that the District’s

tourism sector is already a significant employer and growing at

more than average rates. Jeffreys Bay is now reputed to be the

fastest growing town in South Africa.

The Cacadu District stretches from the Bloukrans River in the

west to the Great Fish River in the east, and from the Sneeuberge

Mountains in the north to the Indian Ocean in the south.

Geographically, Cacadu is the largest of the six Eastern Cape

Districts, but is home to less than 400,000 people, and so is

very sparsely populated (about 6 people per square kilometer).

The District forms the hinterland of the Nelson Mandela Bay

Metropole, and is a land of large commercial farms, nature

reserves and small towns. Although the District has nine local

municipal areas (see table below), three (Kouga, Makana and

Ndlambe) account for more than half the District population.

Cacadu has an export-based economy primarily tied to the

agricultural sector. Farm output is transported to the Metro

for processing and/or export. The District’s agricultural sector

accounts for nearly 40% of the Province’s agricultural output,

D I S T R I C T S N A P S H OT

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Municipal Area Population Main towns Main Products

Kou-Kamma 34 296 Kareedouw | Joubertina | Stormsrivier Forestry | Deciduous Fruit | Dairy | Flowers (Proteas)Honeybush Tea | Tourism

Baviaans 18,000 Willowmore | Steytlerville Eco-tourism | Game/Hunting | Sheep

Camdeboo 44 367 Graaff-Reinet | Aberdeen | Nieu-Bethesda Game | Sheep | Goats | Tourism

Kouga 70 689 Humansdorp | Jeffrey’s Bay | St Francis | Patensie | Hankey Citrus | Vegetables | Tobacco | Tourism | Dairy | Forestry

Ikwezi 10 363 Jansenville Game | Sheep | Goats

Blue Crane Route 36,000 Somerset East | Cookhouse | Pearston Sheep | Goats | Game | BeefField Crop Irrigation (Lucerne) | Ostriches

Sunday’s River Valley 41 590 Kirkwood | Addo | Paterson Citrus | Lucerne | Flowers | Tourism/Game

Ndlambe 55 476 Port Alfred | Alexandria | Kenton-on-Sea Boesmansrivier | Bathurst

Tourism/Game Reserves | Beef | Dairy | Pineapples | Chicory

Makana 74 529 Grahamstown | Alicedale Game | Beef | Goats | Tourism (e.g. Eco-Tourism, various Festivals) | University Graduates

DMA (excluding national parks) 6 550 Mainly rural | Rietbron and small settlements Sheep | Goats | Game

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� Construction, Trade & Finance showed strong growth of real GVA

and jobs

� The growth of Community Services GVA was below the provincial

average (because Cacadu is a relatively privileged region).

It is also clear from the local municipal-level data that most

growth is occurring in the coastal municipalities. Specifically,

Kouga accounted for 25% of District jobs in 1996 and 28% of

District jobs in 2005.

From the table below we can identify the following broad trends

in the district economy:

� Relatively strong real growth of GVA over the period (1996 to

2005), but only 5,000 net job creation

� Nearly all net job creation was from Community Services sector

(public sector). That is, job creation in some private sectors was

offset by job losses in others.

� The agricultural sector (including forestry) showed real growth

over the period, but a decline in jobs (presumably due to game

farming etc)

� There was quite strong growth in manufacturing & jobs were

maintained.

G V A A N D E M P L O Y M E N T P E R S E C T O R F O R C A C A D U 1 9 9 6 – 2 0 0 6

Sector GVA 1996 GVA 2005 Change Joba 1996 Jobs 2005 Change

Agriculture R 1 070 000 000 R 1 192 000 000 11.3 % 31 887 26 333 -17.4 %

Mining R 437 000 000 R 330 000 000 -24.5 % 149 95 -36.4 %

Manufactruring R 399 000 000 R 521 000 000 30.5 % 4 920 4 922 0.00 %

Electricity R 114 000 000 R 126 000 000 10.00 % 416 440 5.8 %

Construction R 132 000 000 R 215 000 000 62.1 % 3 067 5 202 69.6 %

Trade R 486 000 000 R 785 000 000 61.6 % 6 719 10 5277 56.7 %

Transport R 183 000 000 R 332 000 000 81.0 % 1 571 1 505 -4.2 %

Finance R 562 000 000 R 846 000 000 50.6 % 2 543 4 176 64.2 %

Community Services R 1 489 000 000 R 1 606 000 000 7.8 % 14 322 19 283 34.6 %

Households – – – 10 595 8 883 -16.1 %

Total R 4 933 000 000 R 6 218 000 000 26.0 % 76 188 81 368 6.8 %

Note: Gross Value Added (GVA) at constant 2000 prices; “jobs” refers to formal employmentSource: Global Insight 2006

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To address Provincial development challenges and opportunities,

the Provincial Growth and Development Plan (PGDP) was launched

in 2004, and the PGDP finds expression in the District’s IDP’s.

More recently, AsgiSA has been launched to accelerate economic

growth throughout South Africa. The Cacadu District has also

developed its own Economic and Development Framework,

based on five strategic pillars: economic infrastructure, sector

development, HR and skills, institutional development and

regional linkages. The District may be in a position to benefit

from two AsgiSA programmes: biofuels and forestry.

The present document aims to outline the elements of a

development strategy for the Cacadu District that is consistent

with, and informed by, the DM’s Development Framework.

Specifically, this document considers how to:

� Promote Socio-economic Infrastructure

� Engage in Sector Development

� Address HR and Skills Development

� Maximise Institutional Development

� Ensure Regional Linkages

Access to basic services (water, sanitation, electricity and housing

etc) is relatively high throughout the District, but backlogs

remain (for example, bucket toilets). Some 22% of adults have

completed matric or above, which is higher than other Districts.

The District’s HIV-prevalence rate is relatively low.

Based on the most recent data from the National Treasury, Cacadu

District Municipality had a total capital expenditure (capex)

budget of R119 million in 2005/06, or R306 per capita. This is

below the provincial average. 39% of the capex budget is funded

from grants and subsidies, which is a relatively low proportion.

Kouga Municipality is the richest in the District, and its capex and

operating budgets are both larger than the District Municipality.

Four local municipalities have capex budgets of less than R10

million. Total operating budgets for the Cacadu Municipalities is

R675 million, or R1740 per capita. This is significantly higher than

the provincial average. Grants and subsidies account for 21% of

budgeted operating revenue (below average). Revenues from

electricity distribution and property rates account for 21% and

16% of total budgeted revenues respectively: both about average.

Personnel costs account for 41% of total budgeted operating

expenditure (above average), while electricity purchases account

for 11% (below average).

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four fifths and more of households in Cacadu have individual

water connections (metered or unmetered). The numbers of

households with no formal water access is relatively low with

Baviaans (144 households or 4% of households) and Ndlambe

(125 households or 1% if households) making up the bulk of the

304 households in the district who do not have any formal water

supply. Standpipes are still prevalent in Baviaans, Kouga, Kou-

kamma, Makana, Ndlambe and Sunday’s River.

D E L I V E RY O F B A S I C S E RV I C E S

This section briefly outlines service delivery with respect to

water, sanitation, electricity and housing. The data on water and

sanitation backlogs is based on a study commissioned by the

Cacadu District Municipality (2005). This section also uses some

of the RSS (2006) rapid services survey data.

WATER

Historically high levels of household water security, made

possible by infrastructure investments from the former Western

District Council continue to characterise Cacadu household water

access. With the exception of Ndlambe (54% of households)

S O C I O E C O N O M I C I N F R A S T RU C T U R E

C A C A D U E S T I M A T E S O F W A T E R B A C K L O G S

Municipality Nothing Standpipe > 200 m

Standpipe < 200 m

Ind. Conn. un-metered

Ind. Conn. metered

Yard Tank Others

# % # % # % # % # % # % # %

Baviaans 144 3.5 25 0.6 100 2.4 485 11.8 3 326 81.1 0 0.0 20 0.5

Blue Crane Route 15 0.2 0 0.0 120 1.4 0 0.0 8 736 98.5 0 0.0 0 0.0

Camdeboo 0 0.0 0 0.0 50 0.58 0 0.0 10 341 99.5 0 0.0 0 0.0

DMA-WDM 0 0.0 0 0.0 0 0.0 84 16.5 425 83.5 0 0.0 0 0.0

Ikwezi 20 0.7 0 0.0 0 0.0 2 882 99.3 0 0.0 0 0.0 0 0.0

Kouga 0 0.0 903 3.5 2 450 9.5 240 0.9 21 424 83.2 720 2.8 0 0.0

Kou-Kamma 0 0.0 750 8.1 57 0.6 4 539 49.2 3 876 42.0 0 0.0 0 0.0

Makana 0 0.0 759 4.5 0 0.0 0 0.0 15 999 95.5 0 0.0 0 0.0

Ndlambe 125 0.7 0 0.0 840 4.4 612 3.2 9 630 50.9 7 706 40.7 0 0.0

Sunday’s River Valley 0 0.0 410 3.4 1 750 14.5 1 600 13.3 8 310 68.8 0 0.0 0 0.0

Total 304 0.3 2 847 2.6 5 367 4.9 10 442 9.5 82 067 75.0 8 426 7.7 20 0.0

Source: Cacadu 2005

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SANITATION

Although households in all local municipal areas in Cacadu

are above the provincial average in terms of formal household

sanitation, the levels vary among local municipal areas.

The bucket system is still prevalent in Cacadu and constitutes a

significant challenge as far as sanitation backlogs are concerned.

Almost half of households in Ikwezi (49%) still rely on the bucket

system with high levels also recorded for Baviaans (38%), Blue

Crane Route (19%), Kouga (15%), Makana (9%) and Koukama (7%).

Households with no formal sanitation are only recorded in

Makana (759 households or 5%) and Baviaans (130 households

or 3%). Otherwise significant levels of households who access

sub RDP standard sanitation (pit latrines) are found in Sunday’s

river (33% of households), Kou-Kamma (9%), Ndlambe (4%) and

Camdeboo (2%).

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C A C A D U E S T I M A T E S O F W A T E R B A C K L O G S

Municipality Nothing Pit Latrine VIP Bucket System Conser. Tank Septic Tank SBS System FW System

# % # % # % # % # % # % # % # %

Baviaans 130 3.2 4 0.1 351 8.6 1 561 38.3 102 2.5 449 11.0 0 0.0 1 483 36.3

Blue Crane Route 0 0.0 15 0.2 0 0.0 1 723 19.4 825 9.3 0 0.0 0 0.0 6 308 71.1

Camdeboo 0 0.0 217 2.1 0 0.0 53 0.5 165 1.6 1 015 9.8 725 7.0 8 216 79.1

DMA-WDM 0 0.0 0 0.0 84 16.5 0 0.0 0 0.0 78 15.3 0 0.0 347 68.2

EC DMA 10 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0

Ikwezi 0 0.0 20 0.7 0 0.0 1 430 49.3 606 20.9 0 0.0 0 0.0 846 29.2

Kouga 0 0.0 0 0.0 0 0.0 3 883 15.1 7 122 27.7 2 434 9.5 150 0.6 12 148 47.2

Kou-Kamma 0 0.0 807 8.7 0 0.0 621 6.7 0 0.0 1 514 16.4 2 676 29.0 3 624 39.2

Makana 759 4.5 0 0.0 2 283 13.6 1 483 8.8 443 2.6 0 0.0 0 0.0 11 790 70.4

Ndlambe 0 0.0 840 4.4 3 785 20.0 0 0.0 5 195 27.5 2 446 12.9 3 276 17.3 3 371 17.8

Sunday’s River Valley 0 0.0 3 960 32.8 1 043 8.6 1 100 9.1 0 0.0 145 1.2 0 0.0 5 822 48.2

Source: Cacadu 2005

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WATER AND SANITATION BACKLOGS

The water and sanitation backlogs for Cacadu are all associated with

urban settlements with virtually no rural settlements occurring

within the district. The costs for eradicating the estimated water

and sanitation backlogs for Cacadu amount to R664m (R223m

for water and R441m for sanitation). Makana (26%), Kou Kamma

(20%), Sunday’s River Valley Valley (17%) and Baviaans (12%) make

up three quarters of the estimated water backlog for Cacadu.

The estimated sanitation backlogs are largely accounted for by

Ndlambe (23%), Kouga (22%), Sunday’s River Valley (15%) and

Makana (13%) accounting from almost three quarters of the

estimated sanitation backlogs.

According to Cacadu’s projections (2005), the Municipal

Infrastructure Grant (MIG) will not be sufficient to meet the 2014

deadline for the eradication of backlogs. In terms of Cacadu’s

proposed Backlog Eradication Programme (BEP) the eradication

of the backlog by 2012 would require an additional R306.4m over

and above the MIG. The shortfall would increase to R422.3m if

the 2014 target is used.

The eradication of backlogs in water and sanitation in the District

(in line with national targets) is well within reach, provided the

Districts’ backlog eradication plan (BEP) is adequately resourced

and implemented. There is clearly a need to lobby for more MIG

funding to achieve the targets.

E S T I M A T E D W A T E R A N D S A N I T A T I O N B A C K L O G S F O R C A C A D U

LM name Category Water Development Cost Inclusive of Bulk

development and reticulation

Sanitation Development Cost

R % R %

Camdeboo Urban R 7,247,481 R 13,804,525

Total R 7,247,481 3 R 13,804,525 3.1

Blue Crane Route Urban R 8,195,304 R 26,178,854

Total R 8,195,304 4 R 26,178,854 5.9

Ikwezi Urban R 4,218,681 R 17,587,860

Total R 4,218,681 2 R 17,587,860 4.0

Makana Urban R 58,959,320 R 56,411,563

Total R 58,959,320 26 R 56,411,563 12.8

Ndlambe Urban R 15,879,925 R 100,344,668

Total R 15,879,925 7 R 100,344,668 22.8

Sunday’s River Valley Urban R 37,186,204 R 67,633,517

Total R 37,186,204 17 R 67,633,517 15.4

Baviaans Urban R 26,069,778 R 31,203,103

Total R 26,069,778 12 R 31,203,103 7.1

Kouga Urban R 19,556,984 R 95,344,997

Total R 19,556,984 9 R 95,344,997 21.6

Kou-Kamma Urban R 43,606,396 R 30,125,010

Total R 43,606,396 20 R 30,125,010 6.8

Aberdeen Plain Urban R 2,060,975 R 1,905,607

Total R 2,060,975 1 R 1,905,607 0.4

Cacadu Total R 222,981,047 R 440,539,703

Source: DHLGTA and DWAF, 2006

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households in Cacadu were connected to the grid. Challenges

associated with greater access to the grid for household energy

in Cacadu are generally associated with household rather than

community connectedness to the grid. All the main urban

centres in Cacadu are connected to the grid.

ELEC TRICIT Y

Household access to electricity for the local municipal areas in

Cacadu is widespread with a consistently high proportion of

households reporting access to electricity at least for lighting. In

2006 some 83% of households in Cacadu reported using electricity

at least for lighting. Over the period 2001 - 2006 a full 11% of

Electricity Gas Paraffin Candles Solar & Other

Census 2001 RSS 2006 Census 2001 RSS 2006 Census 2001 RSS 2006 Census 2001 RSS 2006 Census 2001 RSS 2006

% % % % % % % % % %

Eastern Cape 49.7 67.1 0.3 0.4 23.3 14.0 25.9 18.3 0.8 0.2

Cacadu 71.9 82.6 0.4 0.5 19.3 11.7 7.7 5.2 0.6 0.1

Baviaans 69.3 73.1 0.4 0.0 16.8 21.7 12.2 5.3 1.4 0.0

Blue Crane Route 65.0 95.0 0.3 0.9 22.5 2.1 11.3 2.1 0.8 0.0

Camdeboo 84.8 92.7 0.1 2.7 5.8 3.0 8.8 1.6 0.5 0.0

EC DMA 10 44.3 60.0 0.9 1.4 26.7 31.6 25.7 7.0 2.5 0.0

Ikwezi 72.2 77.9 0.3 0.0 22.7 18.1 4.1 4.0 0.8 0.0

Kouga 76.2 82.00 0.2 0.7 14.9 15.1 8.4 2.2 0.3 0.0

Kou-Kamma 76.2 87.5 0.3 0.0 4.6 11.2 18.5 1.2 0.5 0.0

Makana 73.4 72.0 0.7 0.0 23.4 17.2 2.0 10.8 0.5 0.0

Ndlambe 66.6 80.1 0.4 0.0 29.1 8.9 3.4 10.3 0.4 0.7

Sunday’s River Valley 65.7 78.6 0.2 0.0 28.2 18.7 5.3 2.7 0.7 0.0

Source: SSA 2001 and RSS 2006

15

The current level of housing backlogs in Cacadu as reported by

the local municipalities is given in the table below.

HOUSING

Levels of informal housing in Cacadu are higher than the

provincial average for the local municipal areas of Makana (23%),

Sunday’s River Valley (20%), Ndlambe (17%) and Kouga (17%).

These areas also generally reflect a significant growth of informal

housing over the period 2001 – 2006 suggesting that they may

be key nodes for in migration within the district.

Informal Housing

Census 2001 RSS 2006

% %

Eastern Cape 10.9 5.3

Cacadu 12.1 12.4

Baviaans 1.9 1.1

Blue Crane Route 7.3 0.0

Camdeboo 7.6 5.4

EC DMA 10 0.4 13.7

Ikwezi 3.4 2.5

Kouga 21.4 16.5

Kou-Kamma 6.4 7.5

Makana 12.8 23.1

Ndlambe 15.0 16.8

Sunday’s River Valley 11.2 20.2

Source: SSA 2001 and RSS 2006

E S T I M A T E D H O U S I N G B A C K L O G S I N C A C A D U

Local Municipality Housing Backlog

# of Units %

Baviaans 767 2.0

Blue Crane Route 2 140 5.5

Camdeboo 5 700 14.6

Ikwezi 1 575 4.0

Kouga 2 971 7.6

Kou-Kamma 1 060 2.7

Makana 12 000 30.8

Ndlambe 5 721 14.7

Sunday’s River Valley 7 010 18.0

Total 38 944 100

Source: Information as provided by LMs, October 2006

16

Provincial Department of Education� Education is a key element of social and economic development.

The Provincial Department of Education has planned and budgeted

up to R250m on education infrastructure in the Cacadu District

over the current medium term expenditure cycle (06/07 – 08/09).

� The Provincial Department is spending R59m in 06/07, rising to

R74m in 07/08 and then to R116m in 08/09 (a 90%+ increase

over the three year period), and this represents about 9% of

total departmental education infrastructure investment over the

current medium term cycle.

� Almost all of the spending is targeted at rehabilitation and

upgrading, as well as routine maintenance, with 29 schools and

3 FET colleges targeted for upgrading to receive R134m over the

three year period. The balance of the expenditure is on routine

maintenance for all schools in the district. Therefore a notable

shift towards quality as opposed to quantity (quantity has been

the norm for previous medium term expenditure cycles).

� These upgrading and maintenance amounts are crucial in two

respects, 1) by upgrading, maintaining and ‘protecting’ existing

assets ensuring guarantee of returns well into the future, and

2) direct and indirect cash injections boost local economies, as

routine maintenance activities are generally labour-intensive.

� Provincial government education infrastructure spending per

capita in the Cacadu District over the three year period, in total, is

R625 per person, the highest per capita ratio in the Eastern Cape.

BU I L D A N D M A I N TA I N I N F R A S T RU C T U R E

It has been repeatedly suggested that one of the major factors

contributing to the low level of economic competitiveness and

social cohesion, and the failure to exploit economic potential,

has been the poor state of infrastructure and infrastructure-

related services. This section of the district profile attempts to

summarise the physical infrastructure development plans that

have been budgeted for over the medium term, and that are

likely to contribute to a more enabling social and economic

environment in the Cacadu District.

Unlike all other districts in the province, Cacadu has a relatively

well developed infrastructure, and backlogs aren’t as acute as in

other areas. The vast natural land, vegetation and water resources

that exist within the district, and the existing infrastructure

base, provide the basis for socio-economic development. But

it is well-planned and prioritised, strategic and complementary

infrastructure investments that will promote high levels of social

development, and stimulate sustainable economic growth.

PROVINCIAL DEPARTMENT

INFR ASTRUC TURE EXPENDITURE PLANS

from 06/07 – 08/09 in the Cacadu District:

The total infrastructure spend directed towards the Cacadu District

by the Eastern Cape provincial government departments amounts

to approximately R1bn over the current medium term expenditure

cycle. This represents signifi cant public sector infrastructure

investment that hopefully ‘crowds in’ private investment.

17

Provincial Department of Agriculture� The Cacadu District has vast natural resources and beauty,

and these resources are at the heart of any sustainable growth

potential and economic activity in the District.

� Given this existing natural resource base, the Provincial

Department of Agriculture plays an important catalyst role in

promoting subsistence farming (food security) and small and

large scale commercial agriculture.

� Over the current medium term period (06/07 – 08/09), the

Provincial Department of Agriculture will spend approximately

R31m on infrastructure in the Cacadu District, representing 15.5%

of the total infrastructure spend (R200m over the medium term)

by the provincial department in the District.

� The allocation is targeted largely at fencing, stock water,

irrigation, storage and shearing sheds, tunnels, dip-tanks, and

soil conservation works.

� The Provincial Agriculture infrastructure spend per capita amounts

to approximately R77 per person in the Cacadu District.

Provincial Department of Health � The provincial health department has planned and budgeted

for a total health infrastructure spending of R55m in the current

medium term expenditure cycle for the Cacadu District

� This provincial health infrastructure expenditure in Cacadu

amounts to approximately 3% of total health infrastructure

spending by the provincial government over the medium term

cycle.

� The allocation is targeted at clinics and hospitals, with major

investment concentrated in Camdeboo (R35m) and in particular

the Kroonvale Clinic in Graff-Reinet, and the Midlands Hospital.

� The balance of expenditure is on routine maintenance of all

health facilities throughout the district.

� The relatively small allocation to the Cacadu District (relative to

other districts and the Metro in the Eastern Cape) is indicative

of the fairly well established health facilities in the district, the

existence of private institutions, and a small population.

� However, access to health facilities - in terms of distances

between health institutions and human settlements – remains a

critical challenge as people have to travel long distances to get

to health facilities.

� The provincial health infrastructure spending per capita in

the Cacadu District over the medium term amounts to an

approximate R137.5 per person.

18

Provincial Department of Housing,

Local Government & Traditional Affairs� In the current financial year – 06/07 - the Provincial department

has budgeted and begun implementing a R22m housing

programme in Cacadu: 1669 houses at Kliplaat, Tsitsikamma,

Mfengu, Addo and Noluthando.

Provincial Department of Sport,

Recreation, Arts and Culture� The total Provincial Department allocation to Cacadu amounts to

just R1.5m over the current medium term expenditure cycle.

� This amount has been set aside in the 06/07 financial year for

construction work on the Tsitsikamma Museum.

� The Steytlerville Sports Field has been planned but yet to be

budgeted for. Estimated cost is R1m.

� The Cacadu allocation of the Department’s infrastructure budget

represents 0.4% of total departmental infrastructure spending

throughout the Province.

� The infrastructure per capita spending for the department in the

district lies at R3.8 per person of infrastructure spend.

Provincial Department of Social Development� The provincial department has allocated almost R16.5m

in infrastructure spending over the current medium term

expenditure cycle to the Cacadu District.

� The expenditure is targeted at new construction of the

Humansdorp Multi-purpose Centre (R6.8m), the Graaff-Reinet

Multi-purpose Centre (R3.1m), and the Grahamstown Multi-

purpose Centre (R6.3m).

� A further R0.3m is allocated for maintenance and upgrade

of parkhomes, and routine maintenance of existing social

development infrastructure.

� The total infrastructure spending in Cacadu represents 24%

of total Social Development infrastructure spending in the

province.

� The social development infrastructure per capita spending over

the medium term is approximately R41 per person.

Provincial Department of Roads and Transport� Another key element of required infrastructure development in

the District is the road network. The Cacadu District suffers from

significant road infrastructure backlogs given the largely rural

(farmland) character of the District.

� In light of these backlogs, and recognising the key enabling

role that transport infrastructure has for economic and social

development, the provincial roads and transport department

has allocated approximately R791m to road infrastructure in the

Cacadu District area, rising from over R172m in 06/07 to R275m

in 07/08 and then rising further to R344m in 08/09.

� This total allocation over the medium term represents

approximately 15% of the total provincial allocation towards road

infrastructure, and amounts to a per capita spend of R1900 per

person in total over the medium term expenditure framework,

the highest across the entire province.

� The major transport projects envisaged in Cacadu are:

Fonteinskloof to Nanara Road (R185m), Addo Paterson MR450

(R67m), and Patensie to Hankey (R43m).

� The balance of the funds (over R400m) has been committed to

routine area-wide maintenance of all roads in the Cacadu District,

over the current medium term expenditure cycle.

19

MUNICIPAL INFR ASTRUC TURE GR ANT (MIG)

The National Government provides infrastructure subsidies

to ensure that all households have access to a basic level of

infrastructure services. The benefits of this intervention are well

known, particularly in relation to the public good characteristics

of many municipal services. The key objectives of the Municipal

Infrastructure Grant are to:

� fully subsidise the capital costs of providing basic services to

poor households: this implies that priority must be given to

meeting the basic infrastructure needs of poor households,

through the provision of appropriate bulk, connector and internal

infrastructure in key services;

� distribute funding for municipal infrastructure in an equitable,

transparent and efficient manner, which supports a co-ordinated

approach to local development and maximises developmental

outcomes;

� assist in enhancing the developmental capacity of municipalities,

through supporting multi-year planning and budgeting systems;

and

� provide a mechanism for the co-ordinated pursuit of national

policy priorities with regard to basic municipal infrastructure

programmes, while avoiding the duplication and inefficiency

associated with sectorally fragmented grants.

PROVINCIAL GOVERNMENT INFR ASTRUC TURE

EXPENDITURE: CONCLUSIONS� These significant provincial infrastructure expenditure plans

in the Cacadu District will provide a meaningful platform for

social and economic development given the opportunities such

spending opens up in both the first and second economies.

� Relative to other Districts and the Metro in the Eastern Cape,

Cacadu, in total provincial infrastructure spend over the current

medium term cycle, will receive approximately 11%.

� It is important for social and economic infrastructure to

complement each other, thereby mutually reinforcing the sum

total of benefits derived from the infrastructure expenditure and

its economy-wide linkages.

� It is necessary, but not sufficient, to just build new infrastructure.

Maintenance of existing infrastructure needs to also be prioritised.

Currently, maintenance of state-owned immoveable assets is poor

inevitably leading to rapid deterioration of buildings and other

assets. Maintenance funds have always and may probably remain

limited. Much of the limitations with respect to maintenance

can be attributed to poor levels of definition with respect to the

responsibility for maintenance budgeting.

� The distinction between levels of responsibility between Public

Works and User departments as reflected by the infrastructure

plans will go a long way towards regularizing maintenance

planning.

� Finally, it is commendable that a paradigm shift is evident

through the infrastructure allocations, with the focus on the

quality of infrastructure and services, as opposed simply to the

quantity, especially in education and health.

20

2010 World Cup� As part of the build up to the 2010 FIFA World Cup, appropriate

supporting mechanisms are being established to realise the

benefits of hosting this major event in the province. To this

effect, various departments are working on a strategy to identify

relevant opportunities associated with enhancing the tourism

attractions of the District.

� The Metro is a host city for the 2010 World Cup, but the spin-

offs, especially in terms of tourism, accommodation, and leisure

will be most prominent in Cacadu given the existing presence of

tourist attractions and facilities relative to the Metro.

� From a tourism perspective, the Department of Economic Affairs,

Environment and Tourism is working within the Provincial 2010

Committee to ensure that the necessary supporting environment

is created for tourism to flourish. Many investment opportunities

are expected to emerge out of this exercise.

� The infrastructure spending (predominantly in the Metro) will

generate direct, indirect and induced effects with cross-linkages

and spill-over effects that will live long beyond the 2010 event

itself.

STR ATEGIC INFR ASTRUC TURE PROJEC TS

Road Upgrade of R3321 � Access to the Baviaanskloof and surrounding areas is by means

of the R332 road, which is the only access point to and from the

Baviaanskloof from Patensie in the east and Willowmore in the

west.

� The road (R332) that goes through the Baviaans Mega-Reserve is

the only entry point into and exit point out to the reserve. This

road leads from Patensie in the east to Willowmore in the west.

This is the only road through the Baviaanskloof and as such is the

only access to the area for both tourists and the local population.

It is currently in a very bad condition, with certain areas only

accessible to 4x4 vehicles and is continuously deteriorating.

� In addition to accessibility, for the purposes of conservation of

the area, the road needs to be in a good state

� The Baviaanskloof Mega-Reserve is located in the western parts

of the Eastern Cape between the Baviaans and Koega mountain

ranges, northwest of Port Elizabeth.

� The Baviaanskloof Mega-Reserve area is the third largest

conservation area in South Africa (184,385 ha) and unique in

offering a rich cultural and ecological experience to visitors,

as illustrated by the awarding of the status of “World Heritage

Site” to this area. The area has outstanding natural beauty and

biodiversity with a variety of mammal and plant species. These

natural assets can lead to sustainable economic growth through

tourism and nature-based commercial ventures.

� A community of around 1,200 people live in this area and work

predominantly in the agricultural sector.

� The road is a public road and the responsibility of the Department

of Roads and Transport of the Eastern Cape Provincial

Government. Currently the road is maintained from Willowmore

up to Geelhoutbos, as well as the section between Komdomo

and Poortjies.

1 Drawn from the Cacadu EGDS, 2006

21

The backlogs for roads, stormwater and transportation stand at

about R2.9bn, broken down as follows:

� R495 million (maintenance).

� R605 million (rehabilitation).

� R1.8 billion (upgrade infrastructure).

In addition to funding constraints, some of the key challenges

facing Cacadu in transport services include:

� Roads classification is not finalized yet resulting in overlapping of

function between the Provincial Government, CDM and the local

municipalities

� Lack of service level agreements between the Province and the

Municipalities with regard to maintenance of roads within the

municipal area or jurisdiction.

� A dilapidated and inefficient rail system that has been neglected

over many years, and is now costly to revive.

Transport

An efficient, safe and sustainable transport network and system

is a key requirement for further infrastructure and economic

growth in Cacadu. And with the 2010 World Cup on the horizon,

it is important that the transport network and systems are

maintained and improved.

Local Municipalities in Cacadu are currently responsible for the

provision and maintenance of:

� 1 444 km of surfaced roads.

� 5 847 km of gravel roads.

� 9 000 km of un-surfaced roads

� 68 bridges

Current budgets allocated to transport infrastructure, including

stormwater infrastructure need to be reviewed in order to

deal with the backlogs. This will require further lobbying

and engagement with provincial and national government

departments (and their public entities), as well as with the local

private sector (through PPPs).

22

Each of these industries requires a coalition of committed players,

able to design realistic and sustainable development strategies,

and detailed Industry Action Plans, specifying investments

to be packaged, timelines and milestones, stakeholders and

responsibilities. Preparatory work and the start-up of many small

municipal LED pilot projects have already taken place for all these

industries in the Cacadu District, and the main challenge is to

galvanise role-players to ensure accelerated and shared growth,

and good quality investments. In particular, the sustainability of

municipal LED pilots (in all industries) will require careful attention,

to ensure new private investment, expansion and local replication.

AGRICULTURE

The District already has a strong and very diversified agricultural

sector. The diversification is illustrated by the variety of leading

products listed in the table above (in the District snapshot) and

results from the fact that all of SA’s agro-ecological zones are

present in the District: forest, grassland, succulent karoo, fynbos,

savannah grasslands and thicket. While the sector is mature

and dominated by a relatively small number of commercial

farmers, there are many opportunities to expand incomes and

employment in the sector. For example, irrigation enterprises

could be developed in the Fish and Sunday’s River valleys by

increasing water transfers from the Gariep Dam. (DWAF are

already considering this). This could provide opportunities for

emerging farmers in citrus, floriculture, vegetables and biofuels

(linked to the sugar beet project between Cookhouse and

Cradock). Other opportunities for emerging farmers include

essential oils, aloe ferox, pineapples, dairy and deciduous fruits.

The main constraint at the moment seems to be land availability.

The land redistribution process seems to be proceeding very

slowly in the District, and there needs to be urgent discussions

with the Department of Land Affairs and commercial farmers to

see how to speed up the process.

J O B C R E AT I O N A N D L I V E L I H O O D S

H H I N C O M E A N D U N E M P L O Y E M E N T F O R C A C A D U

Unemployment(expanded Definition)

Global Insight

HH Income less than R 1500/ month

RSS

1996 2005 2006

% % %

Cacadu 27.9 34.9 57.6

Baviaans 22.4 31.0 47.0

Blue Crane Route 35.8 47.1 56.0

Camdeboo 29.6 38.8 48.8

Ikwezi 25.7 34.3 53.7

Kouga 20.1 247.7 43.8

Kou-Kamma 4.9 6.2 52.5

Makana 33.0 40.6 74.8

Ndlambe 32.0 38.1 78.4

Sunday’s River Valley 35.6 43.9 56.7

Source: Global Insight, 2006 and RSS, 2006

In the context of the very high unemployment and poverty rates

mentioned above, there is clearly an urgent need for major new

private sector investments to create jobs and improve livelihoods

in the Cacadu District. Based on existing economic activity,

market opportunities and present resource/assets/skill bases the

particular industries offering potential include:

� Agriculture

� Timber

� Manufacturing

� Construction

� Trade and Business Services/ICT

� Tourism

S E C TO R D EV E LO P M E N T

23

TIMBER

There are already forests in the District: in Tsitsikamma, Kouga

(e.g. Longmore), and Alexandria (Ndlambe), and a small

secondary industry (indigenous-wood furniture in Humansdorp

and Kareedouw etc).The District needs to explore with DWAF

and AsgiSA the feasibility of expanding the area under forestry

to accommodate small-scale growers. Opportunities for more

timber value addition should also be explored.

24

CONSTRUC TION

The construction sector is expanding in the District, as a result of

coastal property development (eg Jeffreys Bay and the Kenton

Eco Estate, estimated to be a R600m investment) and the

increasing fiscal allocations for public infrastructure (see section

above on infrastructure).

The jobs and empowerment impact of this increasing construction

activity will be optimized by the full use and extension of EPWP

and Emerging Contractors Development Programmes.

TR ADE AND BUSINESS SERVICES/IC T

These are important activities for job creation and livelihoods.

For example:

� Improved infrastructure for informal traders (hawkers stalls and

taxi ranks)

� Business mentoring for emerging businesses

MANUFAC TURING

This is a small but not insignifi cant part of the District economy,

accounting for some 7% of District GDP. Existing producers include

chicory processing, some fruit processing, wood processing

(Koukamma, Kouga) and small-scale leather, taxidermy and crafts.

There is also potential for expanding agri-processing in the

District with some new investments and initiatives currently

underway in the district. These include:

� The R140m investment in Bathurst to process pineapples into

fibre and bio chemicals;

� A proposed plant for fibre extraction and paper making from

Agaves in Graaf-Reinet;

� A proposed tomato puree factory in Kirkwood with an R80m

investment and the potential to create 180 jobs

� The R1.4m charcoal processing in Kareedouw

� A proposed granadilla paste processing plant in Somerset East/

Cookhouse/Pearston;

� Processing of essential oils linked to a number of trials underway

(Woodlands, Baviaans, Graaf-Reinet and Middleberg)

The District’s agricultural output (eg wool and mohair) is mainly

sent to the Metropole for value addition. With much of the wool

and mohair plant (for washing, scouring, de-greasing etc) in the

Metropole being very old and needing replacement, there may

be an opportunity for new plant to be located in the District

provided that adequate quantities (and quality) of water are

available.

25

� Private nature reserves / eco-tourism

� Hunting

� Grahamstown National Arts Festival, SciFest (science festival)

� Rail based tourism – opening the rail line for day trips (NMB,

Alicedale, Bushmans Sands, Grahamstown and Bathurst;

Middleberg to Graaf-Reinet; Somerset East to Cookhouse and

the Apple Express)

� Boschberg R700 million golf estate, hotel, wellness centre and

equestrian centre

TOURISM

There are many tourist attractions and much new activity For

Example:

� Garden Route

� Tsitsikamma National Park

� World’s highest bungee jump

� Baviaanskloof Reserve (part of the Cape Floristic Kingdom, a

world heritage site)

� Addo Elephant National Park

� Sarah Bartmann heritage site in Kouga

� World-class surfing

� Coastal resorts

� Graaf-Reinet, Valley of Desolation, Nieu-Bethesda

� Shamwari & Alicedale Golf Estate

26

Game Farming

There has been an increasing shift to game farming in many

areas in Cacadu which were traditionally livestock farming

areas. This shift has been accompanied by the increasing size

of economically productive units necessitated by the nature

of game farming. It has also been accompanied by shifts in

employment practices with claims that many traditional farm

workers have been made redundant. As a result there have been

serious questions raised about the socio-economic impact in

this shift in land use. While game farming is clearly a positive

trend as far as the promotion of regional tourism is concerned

and there are some indications that it promotes relatively more

secure and meaningful employment opportunities there is still

insufficient evidence as to its overall employment generating

potential as opposed to other land uses. A recent study by the

Centre for African Conservation Ecology (2006) at the NMMU

which surveyed 13 game farms in the Eastern Cape, highlights

some positive features associated with the emergence of private

game farms. It also indicates that the barriers to entry into this

sector have been rising with the costs of establishing a game

farm having increased by R10m since 2004 to a median of about

R42m in 2006.

Local Tourism Organisations

All but the smallest towns have tourism information centres that

provide information on local attractions and accommodation to

visitors.

Links to Metro

Nelson Mandela Bay is an integral part of the district’s tourism

economy, as it serves as the gateway to the district, particularly

for international tourists that arrive by air or by road to and from

the Garden Route and the Western Cape.

Infrastructure

The road through the Gamtoos valley to the Baviaans Mega-

reserve (R332) is currently accessible only to four-wheel drive

vehicles. The reserve is destined to remain mainly a wilderness

area, with limited access (unlike the Addo Elephant National

Park), but its current inaccessibility severely hampers the flow of

tourists through the Kloof.

The Addo Elephant National Park is one of the most visited

tourism attractions in the district. The access road between the

Metro and Addo is in a very poor condition and urgently in need

of upgrading.

While work has been done on other tourism routes in the district,

there is a great need for further upgrading, particularly for tour

buses.

27

MINING, A NE W GROW TH SEC TOR IN C AC ADU?

There are a number of mineral deposits in the Karoo which

have either been underexploited or which have been marginal

and not economically viable. The opportunity provided by the

kaolin (clay) deposit at Grahamstown remains unexploited.

There is a significant uranium deposit in the Karoo, where

mining was abandoned in the 1970’s. Recently however, the

demand for uranium has strengthened, as have global prices.

As a consequence, the marginal deposits in the Karoo might

well become viable. The recent cement shortage in South Africa

might also have positive implications for marginal lime deposits,

of which there a number in the Cacadu district.

28

There is a need to increase the skills base of the district to facilitate

a reduction in unemployment. This may be achieved through the

training of individuals in sector-specific skills, in sectors in which

currently there is a shortage of employable individuals.

One of the main aims of human resource and skills development

is to facilitate an improvement in the accessibility of skills

development programmes for communities in a manner

that is conducive to an improved availability of skilled labour.

The improvement of the labour force is integrated with the

improvement of the skills and literacy levels of the community.

It goes without saying that a redress of employable skills training

is necessary in Cacadu. An approach that can be followed to

facilitate this revolves around the provision of opportunities for

local residents of the district to participate in skills enhancement

and development programmes. It is, however, important, to

note that when dealing with human capital, i.e. labour, that this

is primarily a renewable resource and therefore as the needs of

the community change and expand, this labour base within the

district should be moulded to accurately meet the requirements

of the economy.

S K I L L S U P G R A D E 1

A successful growth and development path hinges on, among

other factors, the availability of skills and human resource

development practices that encourage skills development

on an ongoing basis. Indeed, the challenge facing sustainable

economic development in Cacadu largely lies with the region’s

ability to prioritise and harness its citizens’ skills capabilities.

Cacadu is faced with the challenge of a narrow skills base. This

is a result of the district’s over-dependence on the agricultural

sector as the sector generating the largest number (34.4% in

2004) of predominantly unskilled employment opportunities.

The labour force in Cacadu District consists largely of unskilled

labour force (45.1% of employed persons) that is employed

in elementary occupations. A further 21.3% is employed as

plant and machine operators, trade / craft workers and market

workers. A large proportion of the population (25.2%) only has

some primary education. In addition, 15% of the population

has no schooling. This translates into 60,570 individuals who do

not have a basic level of literacy. 21.6% of the population have

completed matric and / or have some form of higher education.

This is higher than the provincial average of 20%, but lower than

the national average of 29%.

1 Drawn from the Cacadu EGDS, 2006

H R & S K I L L S D EV E LO P M E N T

29

In response to these skills challenges, the Cacadu District

Municipality is planning a dedicated sector-focused technical

college located in Somerset East to roll out a range of skills

programmes geared towards the priority social ad economic

sectors. A time frame of 2–3 years has been set to conduct,

1) a skills audit and develop a database thereof, and 2) for the

construction (upgrading) and equipping and resourcing of the

technical college.

Furthermore, the Kouga Training Centre Project is being

implemented, involving a R2.2m upgrade (construction) at

the facility in Humansdorp. The skills roll out will be mostly

dedicated to the tourism and hospitality sector, and is expected

to be operational in 2009. An Academy of Visual Arts, Crafts and

Performing Arts, planned for Aberdeen, and in partnership with

the Nelson Mandela University, SABC, Performing Arts Council

(PAC), Artists, and Camdeboo residents, is set to commence in

2008. The total estimated cost is R1.5m.

Emphasis should be placed on job creation – and for local

government this means creating and fostering an enabling

environment - within the District to reduce the skills leakage. The

retention of skilled labour and the return of skilled labour to the

district is crucial to local economic development in that the loss of

the most educated members may undermine community-based

organisations and erode that population’s capacity to respond to

local economic development programmes implemented at the

local level.

A large number of skilled individuals in the Cacadu District, youth

and recent graduates in particular, are seeking employment

outside of the district, e.g. in neighbouring Nelson Mandela Bay,

East London etc. The typical ‘pull’ factors of migration provide

possible explanations for this phenomenon - a more competitive

remuneration package and a relatively larger number of

employment opportunities.

Furthermore, HIV and AIDS have, are and will continue to affect

productivity as cited during various stakeholder engagements.

30

� Clinic access is way above the provincial average of 70% (between

85% in Baviaans to 100% in Blue Crane Route and Sunday’s River)

with only the isolated communities spread across the DMA

reporting levels lower than the provincial average (62%)

� Access to emergency health services (ambulances) was lower

than the average for the province (43%) for Ndlambe (39%) and

the DMA (20%) with the remaining areas above the provincial

norm (between 55% in Makana to 71% in Ikwezi)

� Public primary school access was below the provincial norm

(87%) for Makana (67%) and the DMA communities (70%) with

the other areas recording higher levels (between 81% in Ndlambe

to 100% in Baviaans).

I M P ROV E P U B L I C S E RV I C E S

Although services access reported by local households in Cacadu

are in many instances above the provincial norm there are a

number of instances where this is not the case. These include

the following:

� Households reported lower levels than the provincial average

(35%) in terms of access to good roads in Blue Crane (13%),

Ikwezi (12%), Ndlambe (28%) and Kou-Kamma (29%) and the

DMA areas (7%).

� In terms of access to hospitals Ikwezi (41%), Ndlambe (40%),

Sunday’s River (38%), Baviaans (25%), Kouga (43%) and the DMA

(7%) were all below the provincial average (43%) with Kou-

kamma on par with the provincial average.

I N S T I T U T I O N A L D EV E LO P M E N T

H O U S E H O L D A C C E S S T O B A S I C S E R V I C E S F O R C A C A D U

Roads in good condition Hospitals Clinics Amabulance Services Public Schools/Primary Schools

% % % % %

Eastern Cape 34.9 43.2 69.6 42.6 87.0

Cacadu 40.5 48.0 94.8 55.2 88.2

Baviaans 44.4 24.6 84.6 64.9 100.0

Blue Crane Route 13.1 53.7 100.00 70.8 98.8

Camdeboo 36.0 73.5 99.2 63.0 99.2

EC DMA 10 6.9 6.6 61.9 20.2 69.9

Ikwezi 11.7 41.0 96.2 71.2 89.8

Kouga 62.5 25.8 96.69 35.9 93.7

Kou-Kamma 28.7 42.5 96.3 56.3 93.8

Makana 47.7 63.5 89.6 55.2 66.8

Ndlambe 27.8 40.1 89.1 39.4 81.3

Sunday’s River Valley 38.5 37.8 100.0 67.0 98.7

Source: RSS 2006

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32

H E A LT H

Data on health infrastructure in Cacadu, and its distribution

across the local municipal areas, is provided in the table below:

H E A LT H S E R V I C E S I N F R A S T R U C T U R E

CHCs & Hospitals Set Clinics Satellites Mobiles Totals

CDM LM Prov CDM LM Prov CDM LM Prov CDM LM Prov

Camdeboo 0 0 0 0 4 1 1 2 0 3 0 0 11

Blue Crane Route 0 0 0 0 6 0 1 0 0 3 0 0 10

Ikwezi 0 0 0 1 2 0 1 0 0 1 0 0 5

Baviaans 0 0 0 1 1 0 0 0 0 2 0 0 4

Total Cambedoo Health Sub-District 0 0 0 2 13 1 3 2 0 9 0 0 30

Makana 0 0 0 1 7 1 1 0 0 3 0 0 13

Ndlambe 0 0 0 4 5 1 0 0 0 4 0 0 14

Sunday’s River Valley 0 0 0 2 3 0 1 1 0 3 0 0 10

Total Makana Health Sub-District 0 0 0 7 15 2 2 1 0 10 0 0 37

Kouga 0 0 1 4 2 0 2 0 0 2 0 0 11

Kou-Kamma 0 0 1 4 0 0 04 0 0 3 0 0 12

Total Kouga Health Sub-District 0 0 2 8 2 0 6 0 0 5 0 0 23

EC DMA 10 0 0 0 1 0 0 0 0 0 2 0 0 3

Total for Cacadu District 0 0 2 18 30 3 11 3 0 26 0 0 93

Source: Health Services, 2007

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The high levels of staff vacancies in Cacadu clinics are reflected in

the higher than average nurse workload. The workload for nurses

in Cacadu is second only to that of clinics in the NMBM.

N U R S E C L I N I C W O R K L O A D

2000 2001 2002 2003 2004 2005 2006

Alfred Nzo DM 20.5 20.5 20.5 21.7 21.5 20.9 19.9

Amathole DM 25.1 26.0 25.9 25.4 23.1 24.0 24.5

Cacadu DM 33.3 39.2 40.9 42.1 46.9 46.9 44.4

Chris Hani DM 17.6 17.9 16.5 19.5 20.8 22.7 26.2

N Mandela Bay MM 35.1 38.0 37.3 40.5 42.8 47.2 50.2

OR Tambo DM 20.8 20.6 20.4 21.6 22.5 24.3 24.6

Ukhahlamba DM 27.8 22.8 26.7 27.9 27.1 26.2 27.1

Total 24.5 25.3 25.1 26.2 26.2 27.7 28.7

Source: DoH, February 2007

Key challenges for improving health care services which are

confirmed by the provincial IDP engagement process (January,

2007) include engaging the provincial Department of Health on

the following:

� To ensure that the minimum staff complement required to

deliver basic healthcare services is in place.

� Skills development in Human Resource, Financial and Supply chain

management have been identifi ed as critical areas for improving

services delivery

� Referral systems and the transportation of patients needs to be

improved

� Primary Health Care services (PHC package), not available in all

PHC facilities need to be included

� Upgrading and improvement of facilities, structures, and extensions.

� Upgrading and improvement of equipment at facilities, and

provision of vehicles.

� Integration of Specialized services and Provincially Aided Hospitals

� Ensure that the District Health Plan (DHP) is operationalised through

the participation of a wide range of stakeholders in Cacadu

H E A LT H S E RV I C E S D E L I V E RY

Primary Health care services are delivered by Cacadu District

Municipality (CDM), the Local Municipalities (LM), and the Eastern

Cape Department of Health clinics in local communities. According

to the IDP Engagement in January 2007 the following issues with

regards to the delivery of health services were identifi ed:

� Most PHC clinics are fully compliant with the full PHC Package

� Service delivery is affected by the severe staff shortages and

insufficient budget allocations

� The rural nature of the Cacadu District makes it difficult to recruit

and retain staff such as scarce professional categories.

The staff establishment of Cacadu district municipality is 1,628

employees while there are 699 vacancies suggesting a vacancy

rate of 43%. This extremely high level of vacancies has had

significant consequences for services delivery affecting both

corporate and clinical performance.

C A C A D U D I S T R I C T F I L L E D V S V A C A N T P O S T S

Institution FilledPosts

Vacant Posts

Established Vacancy Rate

Cacadu DM 149 49 198 25 %

Cacadu EC DoH Office (Prov) 3 1 4 25 %

Kouga 70 58 128 45 %

Makana 71 97 168 58 %

Cambedoo 49 41 90 46 %

Andries Vosloo 117 83 200 42 %

Humansdorp Hospital 101 85 186 46 %

Midlands Hospital 104 74 178 42 %

Port Alfred Hospital 79 102 181 56 %

Settlers Hospital 335 158 493 32 %

Total 1 078 748 1 826 41 %

Source: DoH, IDP Engagements, January 2007

E D U C AT I O N

School sanitation infrastructure in Cacadu schools requires

urgent upgrading with about one tenth of schools reporting no

formal infrastructure and significantly more relying on pit latrines

or the bucket system.

S C H O O L S A N I T A T I O N

Flush to Sewer Flush to Septic Ventilated Pit Pit Bucket No Sanitation

# % # % # % # % # % # %

Craddock 30 28.6 17 16.2 13 12.4 32 30.5 4 3.8 9 8.6

Graaf-Reinet 34 31.8 34 31.8 9 8.4 15 14.0 5 4.7 10 9.3

Grahamstown 39 40.6 14 14.6 16 16.7 14 14.6 0 0.0 13 13.5

Source: EMIS, 2006

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35

The epidemic in the province is expected to reach a peak by

2010, at about 16% of the population, before the number of new

infections even out (ECAC, 2004).

The Department of Health has embarked on a range of prevention,

care and treatment interventions. In Cacadu district, 4 hospitals

are accredited for dispensing anti-retroviral treatment, treating a

total of 1005 patients in January 2006. However, there is still a need

to accredit additional points and increase the number of people

on treatment. Most public clinics offer Voluntary Counselling

and Testing (VCT) and in 2006 86.4% of those attending public

clinics opted for VCT (men and women). Only 30.1% of males

who visited clinics opted for VCT. However this figure does not

tell us about the percentage of the total population who have

undergone VCT, the quality of the services, or whether patients

came back to get their results.

Access to clinics and health facilities is a challenge, as reported

elsewhere in this profile. A vacancy rate of 43% in the health

department is impacting negatively on access to as well as

standard of services.

A study of responses to HIV and AIDS in the Eastern Cape revealed

pockets of high prevalence and risk in seasonal agriculture in the

Cacadu district. Epidemiological risk profiles in the commercial

farming sector differ greatly according to the type of production,

geographic factors, and the quantity and type of employment

available. HIV was particularly identified to be a problem on

pineapple farms, citrus and deciduous fruit farms, particularly

due to the seasonal and migratory nature of the industry. The

responses of the industry are limited, and few NGOs work in the

area. Staff from DoH public health clinics do on occasion address

farm workers on request and they have also undertaken VCT on

farms when requested to do so. It appears that this service is

available mainly on request, rather than as an active outreach

service (ECAC, 2005). Access to medical services for farm workers

H I V & A I D S

The Cacadu District Municipality had an antenatal prevalence rate 1of 19.0% in 2005, up from 16.8% in 2002, which is significantly

below the provincial average for the Eastern Cape (28.03% in

2004). Cacadu has the lowest antenatal prevalence of all Eastern

Cape districts. However this figure is likely to hide pockets of

vulnerability in urban informal and formal settlements, and

among high risk populations such as seasonal farm labour.

E S T I M A T E S O F H I V P R E V A L E N C E I N T H E E A S T E R N C A P E B A S E D O N A N T E N A T A L S U R V E Y S

Antenatal 2002 Antenatal 2004 Antenatal 2004

% % %

Alfred Nzo DM 28.3 30.1 27.6

Amathole DM 21.7 27.1 27.3

Cacadu DM 16.8 20.2 19.0

Chris Hani DM 25.3 27.3 30.2

N Mandela Bay MM 32.6 31.2 34.5

OR Tambo DM 23.6 29.2 33.8

Ukhahlamba DM 19.0 24.9 22.4

Total 23.6 27.1 28.0

Source: DoH Antenatal Survey, 2004

It is estimated that 10% of the total population of the Eastern

Cape is HIV positive, and 19.2% of adults (20-64 years) (ASSA 2003

Model). For the province as a whole, women have higher HIV

prevalence than men, the African population is at higher risk, and

the epidemic is growing fastest among youth (15-25 years). It is

particularly young women that become infected. Prevalence for

males exceeds that of women only in the 30-34 age group (ECAC,

2005). Early sexual debut, age difference between partners and

transactional relationships is reported to play a role in driving the

epidemic (ECAC, 2005). Hence, prevention programs should be

targeted towards young people.

1 Antenatal prevalence refers to the percentage of pregnant women attending public clinics who test positive for HIV. Data is only available per district, and it is difficult to extrapolate this data for the entire population.

36

industry, expected to contribute significantly to growth in the

next few years, and a receiver of massive state investment, does

not have any coordinated initiatives to response to the impact of

the pandemic. The South African Business Coalition on HIV and

AIDS (SABCOHA) is opening its provincial office in Port Elizabeth

and can play a major role in supporting the private sector to

respond to HIV and AIDS.

NGOs and other community organisations contribute

tremendously to the response to HIV and AIDS. However funding

of these organisations is a challenge, and often the lack of funding

leads organisations to move from one area to the other, without

acquiring the necessary depth and focus of their work. There is a

need for the HIV and AIDS plan in the IDP to integrate the entire

multisectoral response to HIV and AIDS, and not only focus on

public sector service and primary health care delivery.

is problematic in general. Support from local government and

NGOs will be necessary to offer HIV and AIDS and primary health

care services to these populations, and should be integrated into

the IDP HIV and AIDS program. With agriculture being one of the

major contributors to GVA and employment, there is an urgent

need to scale up HIV and AIDS prevention, treatment, care and

support services in these areas.

In addition to the human suffering caused by HIV and AIDS, the

cost of employee benefits, medical aid, absenteeism, labour

turnover, workplace disruption etc place a burden on private

sector as well as public sector employers. However, studies

carried out in the private sector show that companies do not

track these indicators and hence it is difficult to estimate the

economic impact of HIV and AIDS (Bowler, 2002). Only some

large, often multinational, companies in the Eastern Cape track

this kind of data and generally have more resources available

to respond to HIV and AIDS. Industries like the construction

37

SUPPORT BY DEPARTMENT OF PROVINCIAL AND

LOC AL GOVERNMENT (DPLG) AND GTZ

The DPLG & the GTZ have a national program known as

‘Strengthening Local Government Programme’ (SLGP). Within the

SLGP is a newly introduced stream that focuses on ensuring that

Intergovernmental Relations (IGR) serve to strengthen planning

alignment within the IDP process. The overall purpose of the

program is to ensure that “Municipal development is supported

within and across all spheres and sectors of government, whilst

reflecting balanced stakeholder inclusivity”. Cacadu is one of the

pilots to benefit through this programme.

This programme is led by GTZ and entails identifying and

conceptualizing “…appropriate modalities that would catalyze

the effective ownership of integrated development by all spheres

of government. This is sought through the alignment of IDP with

the entire public planning system. Central to this component is

also the need to test and conceptualize implementation protocols

(regulated in the IGR Framework Act 2005) and multi-stakeholder

development agreements as managerial instruments that would

trigger a culture of integrated planning and service delivery

across spheres of government as well as between government

and civil society and the private sector.”

GTZ’s areas of delivery are:

1. Strengthening Inter-Governmental Relations;

2. Strengthening stakeholder analysis and management; and

3. Facilitating alignment with other spheres of government and

with the NSDP in particular.

D EV E LO PI N G M U N I C I PA L C A PAC I T Y A N D C O O PE R AT I O N

ALIGNMENT AND COOPER ATION

Cacadu district municipality together with its nine local

municipalities suffered a drastic financial decline due to the

establishment of the Nelson Mandela Bay Metro. However that

has come and gone. A concerted effort towards the stimulation

of economic development and employment-creation are vital.

An immediate implementation of the Economic Growth and

Development Strategy will kick-start a process of maximising

the benefits of the natural resource base (including national,

provincial and municipal protected areas/nature reserves and

privately-owned game farms) of the area for the benefit of local

communities as well as exploring tourist development and other

economic opportunities.

GAPS IN THE 2006-07 IDP � Vision is not based on five-year service delivery targets

� Development strategies not linked to provincial and national

targets

� Very poor sector department involvement and sector alignment

coordination

� Environmental/bio-diversity/conservation issues poorly managed

� Non completion of all sector plan and cross-cutting programmes

38

MUNICIPAL COOPER ATION

Integration and alignment with provincial and national spheres

of government has been continuously highlighted as a challenge

for Cacadu DM and its local municipalities. The Provincial IDP

hearings that took place early in the year are seen as a start

of a process that will improve and enhance alignment and

integration of government programmes, projects and budgets.

The following are key areas for 2007-08 IDP:

Adjustment of powers and functions� Municipal Health Services responsibility of the DMs

� DM responsible for Disaster Management

� Decision taken by MINMEC to transfer Primary Health Care to

Province, however the implementation of this decision could

take time

� Adjustment of Fire fighting from LMs to DM – LMs however

requested to continue with service whilst representations being

made to MEC: DHLG&TA

� LMs are Water Service Authorities

� DM to take full responsibility of the Municipal Planning function

in Ikwezi LM

SUPPORT TO LOC AL MUNICIPALITIES

Cacadu DM has resolved on the following KPAs to support local

municipalities:

� Review Formulation and Promulgation of by-laws

� Human Resource management

� IT Disaster Recovery Plans

� Establishment of Internal audit services

� Shared audit committees

� Training on the roll out of MFMA

� IDP Support Services and do-it-yourself (DIY) manual

� Local Economic Development (LED) manual

� LED strategy for the District Management Area

� Job Evaluation

� Programme / Project Management Unit (PMU) Support

� Detailed prognosis of local municipalities

39

Good governance � Audit Committees and Internal Audit

� Ward Committees training completed in seven local municipalities

� Steering Committees training in 2 LMs (and the DMA)

� Train the Trainer programme

� Good Governance Survey

District-wide forums to engage with local municipalities� District Mayors Forum

� Municipal Managers Forum

� CFO Forum

� IDP Forum

� LED Forum

� District Wide Infrastructure Forum

� Tourism Forum

� District Health Forum

� District Aids Council

� Disaster Management Forum

� Communicators Forum

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AG R E E M E N T W I T H T H E N M B M M

The two Municipalities committed themselves to:

� The establishment of an inter municipality forum with the

purpose of exchanging experiences and knowledge on the

different aspects of local government administration; to co-

operate on economic development and tourism in order to

encourage co-operation between the business communities,

especially medium and small-size business, of both local

government entities; the promotion and support of mutually

beneficial infrastructural development; and any other strategic

matters which affect the respective municipalities.

� The two municipalities further agree that they will seek to arrange

for their mutual benefit in whatever international relations each

may have or intends to establish with foreign local government

institutions or otherwise.

� In giving effect to the spirit and purpose of this agreement, the

municipalities shall seek to develop joint strategies on matters

of local economic development, tourism and infrastructure

development by means of sharing ideas and experiences and

exposing each to the other’s resources and infrastructure.

Critical to the growth and development fortunes of the Cacadu

District is the development of linkages with strategic partners

in the region. The CDM has begun to forge such linkages with

two formal agreements already entered into with the NMBMM

and the Winelands District Municipality. The content of these

agreement s are briefly outlined below.

AG R E E M E N T W I T H T H E C A PE W I N E L A N D S D M

In the agreement the two District Municipalities committed

themselves to:

� the exchange experience and knowledge on various aspects

of local government transformation, management (including

performance management) and administration,

� the development of co-operation on the levels of economic

development and tourism in terms of developing joint local

economic and tourism development strategies, sharing resources

and infrastructure where possible and to develop small and

medium sized business linkages between the two districts

� The two municipalities endeavour to ensure mutual benefit in

whatever international relations and linkages are forged

� Agree to co-ordinate the agreement through a Joint Co-

ordinating Committee (JCM) which will meet bi annually and

be made up of Executive Mayors, Mayoral Committee members,

Municipal Managers and any other relevant representatives. The

JCM will mandate the municipal managers to establish a joint

implementation committees (JIC)

R E G I O N A L L I N K AG E S

� Co-ordination of the activities and agreements emanating from

the implementation of this agreement shall be effected by means

of a Joint Co-ordination Committee (JCC) which shall meet twice

a year with delegations from each municipality respectively,

comprising the Executive Mayors(as co-ordinators), Mayoral

Committee members and the Municipal Managers who may be

accompanied by a mutually agreed number of officials of both

the municipalities.

What now remains is the implementation of these agreements in

terms of specific projects and initiatives between the partners.

41

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PE R S O N S L I V I N G I N P OV E RT Y

The number of people in poverty is an indicator of household

members who reside in households whose total income falls

below a particular level. The level used here is based on Global

Insight data which use the Bureau for Market Research (BMR)

Minimum Living Level (MLL) which ranges from R893 for a single

person household to R3314 for an eight person household. Based

on this measure the levels of poverty (an economic measure of

household income) in Cacadu have actually increased signifi cantly

between 1996 – 2005. Yet the proportion of people in poverty

across the district is lower than the provincial average with only

Ndlambe recording the same value as the provincial average.

P E R C E N T A G E O F P E O P L E I N P O V E R T Y

1996 2005

% %

Eastern Cape 54.3 64.7

Cacadu 38.2 47.8

Baviaans 34.9 42.2

Blue Crane Route 43.9 58.7

Camdeboo 30.6 34.9

Ikwezi 46.3 60.0

Kouga 26.6 32.9

Kou-Kamma 27.9 32.5

Makana 40.0 51.5

Ndlambe 51.5 64.4

Sunday’s River Valley 46.1 58.1

Source: Global Insight, 2006

H U M A N D EV E LO P M E N T I N D E X H D I

The HDI is a measure of development which includes life

expectancy, literacy and income. It thus provides a composite

index of development presenting these three dimensions in

one indicator. Overall the HDI is on average higher for the local

municipal areas of Cacadu than the provincial averages. The only

exceptions are Ndlambe and Sunday’s River Valley.

H U M A N D E V E L O P M E N T I N D E X F O R C A C A D U D M A N D L M S

1996 2005

Eastern Cape 0.49 0.53

Cacadu 0.53 0.57

Baviaans 0.51 0.55

Blue Crane Route 0.51 0.55

Camdeboo 0.53 0.57

Ikwezi 0.51 0.55

Kouga 0.57 0.62

Kou-Kamma 0.49 0.54

Makana 0.56 0.60

Ndlambe 0.48 0.52

Sunday’s River Valley 0.47 0.51

Source: Global Insight, 2006

P OV E RT Y P RO F I L E

S O C I A L G R A N T D E PE N D E N C Y

Households where at least one member accesses a social grant

in Cacadu is on a par with the provincial average of 64% in

Camdeboo and higher than this in Ikwezi (75%), Sunday’s River

(76%) and Baviaans (78%). The remaining areas are lower than the

provincial norm (between 47% in Kouga and 58% in Ndlambe).

Whether Household member is receiving

Social Grant

Proportion of Household Members who receive a Social

Grant

Yes No

% % %

Eastern Cape 64.4 35.6 20.7

Cacadu 55.5 44.5 23.4

Baviaans 77.9 22.1 31.2

Blue Crane Route 56.2 43.8 24.6

Camdeboo 64.3 35.7 28.1

EC DMA 10 53.8 46.2 24.6

Ikwezi 74.8 25.2 36.1

Kouga 46.8 53.2 16.2

Kou-Kamma 52.5 47.5 19.5

Makana 51.0 49.0 23.3

Ndlambe 58.4 41.6 22.9

Sunday’s River Valley 75.5 24.5 34.6

Source: RSS, 2006

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44

What then could be possible components of an accelerated

future growth path that is equitable and jobs creating?

� Land redistribution must be accelerated in the District. DLA must

complete an area-based redistribution plan as soon as possible,

which promotes viable and intensive smallholder schemes where

possible.

� Specifically, the DM and DWAF should give higher priority to

smallholder schemes made possible by the augmentation of the

!Gariep-Fish River water transfer infrastructure.

� Investment promotion efforts need to be intensified (possibly

in association with CDC and other development partners)

particularly around mining (uranium, cement and ceramics) and

agro-processing.

� Strengthened local responses for tourism property developments

and other enterprise opportunities

� Skilled inward migration led by lifestyles/entrepreneurial

opportunities

� Shack eradication in line with national targets, combined with

municipal/provincial services improvements.

The Cacadu district faces a unique set of growth and development

challenges shaped by its geo physical features and history. It is

characterized largely by urban (asset poor) communities residing

in generally small towns surrounded by private farmlands. The

district is often characterized as better off than those to the west

of the Fish River. The levels of infrastructure backlogs are indeed

generally lower than the infrastructure poor areas to the west

of the province due to infrastructure investments historically

secured through being linked to NMB. While significant numbers

of local residents are infrastructure poor however, the most

severe expression of poverty in Cacadu is associated with the

limited access to and opportunities for livelihoods and jobs.

Some of the key features of the context for growth and

development in Cacadu include the following:

� A large and robust agricultural sector that is growing but not

creating jobs

� A public sector that is probably reaching the limits of its direct

job creation capacity

� A growing construction industry (& private services sectors)

linked to tourism and coastal lifestyles and public infrastructure

investment.

� The absence of major public/private investments and projects

� The benefits of existing growth accruing to existing fixed asset-

holders (farmers and tourism establishments), and income

distribution remaining highly unequal.

� A growing underclass of unskilled shackdwellers.

� No clear growth “trajectory”, despite an abundance of natural

resources and locational advantages

C O N C LU S I O N S

45

This GDS summit is a starting point for setting out a minimum

agenda for growth and development in the District. The Summit

is potentially very important for setting in motion processes

to improve municipal planning and management capacities,

particularly with respect to co-operation with other arms of

Government, and with Business. The private sector, business-

support agencies and the municipalities need to work together

to develop detailed priority sector action plans.

The outcome of the Summit should be the development of a

“Framework Agreement” that outlines institutional roles and

responsibilities to accelerate growth and development in the

District. This Agreement should also suggest the mechanisms and

processes for monitoring progress in the decisions reached and

the governance framework for ongoing dialogue and feedback

among the social partners.

The district GDS presents a unique opportunity for constructing

partnerships and harnessing the collective energies and

contributions of a range of actors and role players with a view to

enhancing accelerated and shared growth.

46

HH Household

HR Human Resources

IDP Integrated Development Plan

IGR Inter Governmental Relations

JCM Joint Co-ordinating Committee

JIC Joint Implementation Committee

KPA’s Key Performance Areas

LED Local Economic Development

LM Local Municipality

MEC Member of the Executive Committee

MFMA Municipal Finance Management Act

MIG Municipal Infrastructure Grant

MLL Minimum Living Level

NMBMM Nelson Mandela Bay Metropolitan Municipality

NSDP National Spatial Development Perspective

PAC Performing Arts Council

PGDP Provincial Growth and Development Plan

PHC Primary Health Care

PMU Project Management Unit

PPP Public-Private partnership

RIDS Regional Industrial Development Strategy

RSS Rapid Services Survey (2006)

SABC South African Broadcasting Corporation

SLDP Strengthening Local Government Programme

SMME Small, medium and micro enterprises

SOE State-owned enterprises

SSA Statistics South Africa

VCT Voluntary counselling and testing

AsgiSA Accelerated and Shared Growth Initiative

ASSA Actuarial Society of South Africa

ARC Agricultural Research Council

BEP Backlog Eradication Programme

BMR Bureau for Market Research

CDC Coega Development Corporation

CDM Cacadu District Municipality

DHLGTA Department of Housing Local Government &

Traditional Affairs

DHP District Health Plan

DIY Do It Yourself

DM District Municipality

DMA District Management Area

DOH Department of Health

DPLG Department of Provincial and Local Government

DPW Department of Public Works

DWAF Department of Water and Forestry

ECAC Eastern Cape Aids Council

ECD Early childhood development

ECSECC Eastern Cape Socio-economic Council

EGDS Economic Growth and Development Strategy

EIA Environmental Impact Assessment

EPWP Expanded Public Works Programme

FET Further Education and Training

GDS Growth and Development Summit

GGP Gross Geographic Product

GVA Gross Value Added

HDI Human Development Index

AC RO N Y M S

G D S S U M M I TAG R E E M E N T

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N OT E S

2boyz[J5863-AEastern Cape Socio-Economic Consultative Council

1st Floor, Global Life Bldng, Cnr Phalo Ave & Circular Drive, Bhisho

Tel.: +27 (0)40 635 1590 | Fax: +27 (0)40 635 1571

E-Mail: [email protected] | Internet: www.ecsecc.org