Part Three: Sustainable Communities Initiative & Programme

Background to the SC Initiative• Problem Statement

– Localities with numerous socio-economic problems– Good policies and funding available, but few if any South African examples of

‘best practice’ at local level

• Opportunity – National Strategy for Sustainable Development– Strong Government and partner emphasis on delivery of economic and social

development at local level– Championed by DBSA Governor – Mr. Trevor Manuel, DBSA Chairman Jay

Naidoo and DBSA MD, Mandla Gantsho– Initiative at the heart of DBSA’s vision and mission– Create synergy between local and national/provincial development activists

Vision of the SC Initiative

• Cohesive communities that live in places where life can take place in a positive way

• People live, work and play in an environment of human dignity and opportunity

Core Underlying Principles of SC

• A sense of justice• A sense of place• A sense of history• A sense of limits• A sense of craft• A sense of nature

Tourism and Farming (game, fish and urban agriculture)

• Partnerships between private sector and communities, (Unilever)

• Community owned facilities

• Supported by Government and municipal structures

• DBSA funds capacity building and support

• Facilities run and managed on commercial basis

Role of DBSA in the Initiative

• Create examples/footprints of ‘Sustainable Communities’ • Facilitate and unblock obstructions • Provide dedicated technical assistance • Knowledge management and sharing – ‘best practice’• Resource mobilisation and integration• Provide bridging finance for non-bankable projects• Leave municipality with capacity for further roll-out

Progress with the Initiative• Six pilot areas (Motherwell, Ngangelizwe, Grabouw, Phalaborwa, Lydenburg, Diepsloot)• Ongoing stakeholder interaction• Strategic frameworks prepared for each

– Strategic scan and identification of challenges– Strategic direction– Implementation plan– Resource mobilisation

• Draft business plans prepared• MOUs signed with municipalities• Training of staff and other stakeholders• Next steps

– Finalise business plans– Implementation to commence in July 2006

Pilots were selected to reflect the range ofchallenges facing the South African Community

Six pilot areas:

– Ba-Phalaborwa

– Diepsloot

– Grabouw

– Motherwell

– Ngangelizwe

– Thaba-Cheuw

Tentative Budget(million Rand)

Pilot TA Grant Preparation Assistance

Capital Investment

Motherwell 2 14 540

Ngangelizwe 2 4 320

Total 4 18 860

Part Four: Local Investment Agency (Wild Coast)

LIA Background• Joint DBSA / Old Mutual initiative

– R8M for capitalizing the LIA Company– R500M as investment facility

• Catalyzing and crowding in commercial investment in poverty-stricken areas with economic potential

• Facilitating project development and investment– Overcome investment constraints – Leverage resources into viable commercial projects– Creating a link between development and commercial ventures– Accelerated economic growth and job creation

• Wild Coast as first phase

The Wild Coast LIA Company• Mission: Project development / preparation / packaging• Focus: Private, commercially sound ventures and PPPs• Sectors: All economic sectors subject to triple bottom line• Lifespan: 10 years• Separate Investment Facility: R500 Million• Linkage to other funding and support from DBSA and OM• Synergy and alignment with government policies / programmes• Collaboration with other role players

Institutional ArrangementsLIA Company

50%50%

OM DBSA

LIA LTD Co

BOARD OF DIRECTORS

LIA: Progress• Approval and support from:

• DBSA / OM Boards• Minister of Finance

• Eastern Cape stakeholders consulted • Shareholders agreement signed• Company registered• Vijay Makanjee appointed – office based in East London• Spatial Investment Framework prepared• Coffee Bay conceptualised as a Sustainable Tourism Village• Formal Launch – 23 May 2006

Wild Coast LIA Spatial Investment Framework

Possible Investment Nodes

– Mthatha: commercial, services, retail, value add manufacturing

– Port St Johns: tourism facilities, accommodation, retail

– Coffee Bay: tourism facilities and accommodation

– Key Mouth: tourism facilities, high order residential

Coffee Bay Concept Urban Design

EXTENDED AND REFURBISHED

SCHOOL

URBAN RENEWAL AND NEW HOUSING

NEW URBAN EXTENSION ± 40

ERVEN

COMMERCIAL CENTRE

OCEAN VIEW HOTEL

RESORT HOUSING

RESTAURANT AND BEACHFRONT BAR

NEW COFFEE

BAY HOTEL

BEACH

WATERFRONT BOTH SIDES OF

INLET

RESORT ACCOMMODATIO

N

AGRICULTURAL FIELDS

TREE-TOP BISTRO &

BAR

Copyright: dmp

………………………………

Investment Opportunities

Property Development – Coffee Bay

• 40-Room Boutique Hotel (redevelopment of Coffee Bay Hotel).

• Tree-top bistro and bar associated with hotel.

• Approximately 40 New Residential Locations.

• Expanded school.

• Commercial centre at entrance to town including a service station, convenience store and general dealer.

• Caravan Park/Eco-lodges upgrade.

• Beachfront restaurant and bar.

• Waterfront development on both sides of inlet, including bistros, sundowner decks, approximately 60 Resort Units and back-packers resort accommodation.

Concept Urban Design Plan

Linkage Projects

• Hiking trails• Agriculture• Laundry• Fishing trips• Restaurants• Cultural events• Security services• Maintenance services• Gardening services